Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 28, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | MILLER INDUSTRIES INC /TN/ | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 296,969,693 | ||
Entity Common Stock Shares Outstanding | 11,405,468 | ||
Entity Central Index Key | 0000924822 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and temporary investments | $ 26,072 | $ 27,037 |
Accounts receivable, net of allowance for doubtful accounts of $1,106 and $1,112 at December 31, 2019 and December 31, 2018, respectively | 168,619 | 149,142 |
Inventories, net | 87,965 | 93,767 |
Prepaid expenses | 4,796 | 3,272 |
Total current assets | 287,452 | 273,218 |
NONCURRENT ASSETS: | ||
Property, plant and equipment, net | 90,735 | 82,850 |
Right-of-use assets - operating leases | 1,640 | |
Goodwill | 11,619 | 11,619 |
Other assets | 521 | 497 |
TOTAL ASSETS | 391,967 | 368,184 |
CURRENT LIABILITIES: | ||
Accounts payable | 95,750 | 98,220 |
Accrued liabilities | 27,813 | 24,863 |
Current portion of operating lease obligation | 330 | |
Current portion of finance lease obligation | 21 | 20 |
Long-term obligations due within one year | 368 | 285 |
Total current liabilities | 124,282 | 123,388 |
NONCURRENT LIABILITIES: | ||
Long-term obligations | 4,998 | 15,475 |
Noncurrent portion of operating lease obligation | 1,307 | |
Noncurrent portion of finance lease obligation | 37 | 58 |
Deferred income tax liabilities | 3,416 | 1,700 |
Total liabilities | 134,040 | 140,621 |
COMMITMENTS AND CONTINGENCIES (Notes 6 and 7) | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, $0.01 par value; 5,000,000 shares authorized, none issued or outstanding | ||
Common stock, $0.01 par value; 100,000,000 shares authorized, 11,400,102 and 11,394,546, outstanding at December 31, 2019 and December 31, 2018, respectively | 114 | 114 |
Additional paid-in capital | 151,055 | 150,905 |
Accumulated surplus | 112,261 | 81,354 |
Accumulated other comprehensive loss | (5,503) | (4,810) |
Total shareholders' equity | 257,927 | 227,563 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 391,967 | $ 368,184 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts (in dollars) | $ 1,106 | $ 1,112 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 11,400,102 | 11,394,546 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF INCOME | |||
NET SALES | $ 818,166 | $ 711,706 | $ 615,101 |
COSTS OF OPERATIONS | 721,678 | 628,370 | 548,000 |
GROSS PROFIT | 96,488 | 83,336 | 67,101 |
OPERATING EXPENSES: | |||
Selling, general and administrative expenses | 43,394 | 39,542 | 35,561 |
NON-OPERATING (INCOME) EXPENSES: | |||
Interest expense, net | 2,378 | 1,878 | 1,588 |
Other (income) expense, net | 331 | 253 | (387) |
Total expense, net | 46,103 | 41,673 | 36,762 |
INCOME BEFORE INCOME TAXES | 50,385 | 41,663 | 30,339 |
INCOME TAX PROVISION | 11,274 | 7,917 | 7,323 |
NET INCOME | $ 39,111 | $ 33,746 | $ 23,016 |
BASIC INCOME PER COMMON SHARE (in dollars per share) | $ 3.43 | $ 2.96 | $ 2.02 |
DILUTED INCOME PER COMMON SHARE (in dollars per share) | 3.43 | 2.96 | 2.02 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (in shares) | 11,400 | 11,388 | 11,368 |
Diluted (in shares) | 11,400 | 11,393 | 11,385 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
NET INCOME | $ 39,111 | $ 33,746 | $ 23,016 |
OTHER COMPREHENSIVE INCOME: | |||
Foreign currency translation adjustment | (693) | (965) | 3,374 |
Total other comprehensive income | (693) | (965) | 3,374 |
COMPREHENSIVE INCOME | $ 38,418 | $ 32,781 | $ 26,390 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Surplus | Accumulated Other Comprehensive Income (Loss) | Total |
BALANCE at Dec. 31, 2016 | $ 113 | $ 150,404 | $ 40,752 | $ (6,667) | $ 184,602 |
Components of comprehensive income: | |||||
Net income | 23,016 | 23,016 | |||
Foreign currency translation adjustments | 3,374 | 3,374 | |||
COMPREHENSIVE INCOME | 23,016 | 3,374 | 26,390 | ||
Issuance of common stock to non-employee directors | 150 | 150 | |||
Exercise of stock options | 1 | 145 | 146 | ||
Dividends paid | (8,188) | (8,188) | |||
BALANCE at Dec. 31, 2017 | 114 | 150,699 | 55,580 | (3,293) | 203,100 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect adjustment for adoption | ASU 2014-09 | (324) | (324) | |||
BALANCE | 114 | 150,699 | 55,256 | (3,293) | 202,776 |
Prior period accounting reclassification | 552 | (552) | |||
Components of comprehensive income: | |||||
Net income | 33,746 | 33,746 | |||
Foreign currency translation adjustments | (965) | (965) | |||
COMPREHENSIVE INCOME | 34,298 | (1,517) | 32,781 | ||
Issuance of common stock to non-employee directors | 150 | 150 | |||
Exercise of stock options | 56 | 56 | |||
Dividends paid | (8,200) | (8,200) | |||
BALANCE at Dec. 31, 2018 | 114 | 150,905 | 81,354 | (4,810) | 227,563 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect adjustment for adoption | ASU 2016-02 | 4 | 4 | |||
BALANCE | 114 | 150,905 | 81,358 | (4,810) | 227,567 |
Components of comprehensive income: | |||||
Net income | 39,111 | 39,111 | |||
Foreign currency translation adjustments | (693) | (693) | |||
COMPREHENSIVE INCOME | 39,111 | (693) | 38,418 | ||
Issuance of common stock to non-employee directors | 150 | 150 | |||
Dividends paid | (8,208) | (8,208) | |||
BALANCE at Dec. 31, 2019 | $ 114 | $ 151,055 | $ 112,261 | $ (5,503) | $ 257,927 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Issuance of common stock to non-employee directors (in shares) | 5,556 | 5,814 | 5,922 |
Dividends paid (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 |
Stock Options | |||
Exercise of stock options (in shares) | 0 | 10,250 | 26,500 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES: | |||
Net income | $ 39,111 | $ 33,746 | $ 23,016 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 9,127 | 7,745 | 6,147 |
(Gain) Loss on disposal of property, plant and equipment | (21) | 156 | (608) |
Provision for doubtful accounts | 15 | 214 | 86 |
Issuance of non-employee director shares | 150 | 150 | 150 |
Deferred tax provision | 1,708 | 568 | (868) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (19,605) | (19,353) | (6,668) |
Inventories | 5,453 | (23,865) | (2,844) |
Prepaid expenses | (1,529) | 989 | 765 |
Other assets | 609 | 60 | 8 |
Accounts payable | (2,165) | 19,425 | (5,806) |
Accrued liabilities | 2,279 | 2,062 | 575 |
Net cash flows from operating activities | 35,132 | 21,897 | 13,953 |
INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (17,391) | (13,342) | (24,693) |
Proceeds from sale of property, plant and equipment | 328 | 141 | 1,303 |
Net cash flows from investing activities | (17,063) | (13,201) | (23,390) |
FINANCING ACTIVITIES: | |||
Net proceeds (payments) under credit facility | (10,002) | 5,000 | 5,000 |
Payments of cash dividends | (8,208) | (8,200) | (8,188) |
Net proceeds (payments) on other long-term obligations | (367) | 56 | 146 |
Finance lease obligation payments | (20) | ||
Proceeds from exercise of stock options | 179 | 606 | |
Net cash flows from financing activities | (18,597) | (2,965) | (2,436) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY INVESTMENTS | (437) | (589) | 2,653 |
NET CHANGE IN CASH AND TEMPORARY INVESTMENTS | (965) | 5,142 | (9,220) |
CASH AND TEMPORARY INVESTMENTS, beginning of period | 27,037 | 21,895 | 31,115 |
CASH AND TEMPORARY INVESTMENTS, end of period | 26,072 | 27,037 | 21,895 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash payments for interest | 3,249 | 2,437 | 1,877 |
Cash payments for income taxes, net of refunds | $ 10,067 | $ 7,457 | $ 11,605 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. Miller Industries, Inc. and subsidiaries (the “Company”) is The World’s Largest Manufacturer of Towing and Recovery Equipment. ® The principal markets for the Company’s towing and recovery equipment are approximately 80 independent distributors and the users of towing and recovery equipment located primarily throughout North America, and other customers throughout the world. The Company’s products are marketed under the brand names of Century ® , Challenger ® , Holmes ® , Champion ® , Eagle ® , Titan ® , Jige TM , Boniface TM , Vulcan ® , and Chevron TM . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Consolidation The accompanying consolidated financial statements include the accounts of Miller Industries, Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated. To facilitate timely reporting, the consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st by 31 days (or less). Cash and Temporary Investments Cash and temporary investments include all cash and cash equivalent investments with original maturities of three months or less. Accounts Receivable Receivables are stated at their estimated collectible amounts and consist of amounts billed and currently due from customers. The Company extends credit to customers in the normal course of business. Collections from customers are continuously monitored and an allowance for doubtful accounts is maintained based on historical experience and any specific customer collection issues. Data by each major customer is regularly reviewed to evaluate the adequacy of the allowance for doubtful accounts and actual write-offs are charged against the allowance. Inventories Inventory costs include materials, labor and factory overhead. Inventories are stated at the lower of cost or net realizable value, determined on a first-in, first-out basis. Appropriate consideration is given to obsolescence, valuation and other factors in determining net realizable value. Revisions of these estimates could result in the need for adjustments. Inventories, net of reserves, at December 31, 2019 and 2018 consisted of the following: December 31, December 31, 2019 2018 Chassis $ 6,561 $ 8,921 Raw materials 39,444 40,021 Work in process 16,520 14,995 Finished goods 25,440 29,830 $ 87,965 $ 93,767 Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation. Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets. Accelerated depreciation methods are used for income tax reporting purposes. Estimated useful lives range from 20 to 30 years for buildings and improvements and 5 to 10 years for machinery and equipment, furniture and fixtures, and software costs. Expenditures for routine maintenance and repairs are charged to expense as incurred. Internal labor is used in certain capital projects. Fully depreciated assets are retained in property, plant and equipment and accumulated depreciation until they are removed from service. When assets are retired or otherwise disposed of, the related costs and accumulated depreciation are removed from the consolidated balance sheets and any resulting gain or loss from disposition is recorded as other (income) expense, net in the consolidated statements of income in the period realized. Property, plant and equipment at December 31, 2019 and 2018 consisted of the following: 2019 2018 Land and improvements $ 13,953 $ 11,807 Buildings and improvements 73,121 68,717 Machinery and equipment 50,235 43,961 Furniture and fixtures 9,172 7,786 Software costs 6,033 5,695 152,514 137,966 Less accumulated depreciation (61,779) (55,116) $ 90,735 $ 82,850 The Company recognized $9,127, $7,745 and $6,147, in depreciation and amortization expense in 2019, 2018 and 2017, respectively. The Company capitalizes costs related to software development in accordance with established criteria, and amortizes those costs to expense on a straight-line basis over five years. System development costs not meeting proper criteria for capitalization are expensed as incurred. Basic and Diluted Income Per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted income per common share is calculated by dividing net income by the weighted average number of common and potential dilutive common shares outstanding. Diluted income per common share takes into consideration the assumed exercise of outstanding stock options resulting in approximately 5,000 and 17,000 potential dilutive common shares in each of the years ended December 31, 2018 and 2017, respectively. The Company had no outstanding stock options and no potential dilutive common shares for the year ended December 31, 2019. For the years ended December 31, 2018 and 2017, none of the outstanding stock options would have been anti-dilutive. Long-Lived Assets The Company periodically reviews the carrying amount of its long-lived assets to determine if those assets may not be recoverable based upon the future operating cash flows expected to be generated by those assets. Management believes that its long-lived assets are appropriately valued. Goodwill Goodwill consists of the excess of cost of acquired entities over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is not amortized. However, the Company evaluates the carrying value of goodwill for impairment at least annually or if an event or circumstance occurs that would indicate that the carrying amount had been impaired. Goodwill is reviewed for impairment utilizing a qualitative assessment and, if necessary, a quantitative assessment. If we perform a qualitative analysis of goodwill and determine that fair value more likely than not exceeds the carrying value of the reporting unit, no further testing is needed. Alternatively, if we elect to utilize a quantitative assessment, an impairment loss would be recognized to the extent that the carrying value of the reporting unit exceeds its fair value, not to exceed the carrying value of the goodwill. Accrued Liabilities Accrued liabilities consisted of the following at December 31, 2019 and 2018: 2019 2018 Accrued wages, commissions, bonuses and benefits $ 12,382 $ 9,152 Accrued products warranty 3,859 3,752 Accrued taxes 2,079 1,039 Other 9,493 10,920 $ 27,813 $ 24,863 Income Taxes The Company’s income tax expense, deferred tax assets and liabilities and liabilities for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes in both the United States and foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. The Company recognizes as deferred income tax assets and liabilities the future tax consequences of the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company considers the need to record a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. Tax loss carryforwards, reversal of deferred tax liabilities, tax planning and estimates of future taxable income are considered in assessing the need for a valuation allowance. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the positions and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of income. Accrued interest and penalties are included within the related tax liability line in the accompanying consolidated balance sheets. Stock-Based Compensation Stock compensation expense was $150 for 2019, 2018 and 2017. No options were granted during 2019, 2018, or 2017. The fair value of options granted in 2008 has been estimated as of the date of the grant using the Black-Scholes option-pricing model with the following weighted average assumptions: expected dividend yield of 0%; expected volatility of 44%; risk-free interest rate of 1.71%; and expected life of four years. Using these assumptions, the fair value of options granted in 2008 was $1,596, which was amortized as compensation expense over the vesting period. At December 31, 2018, the Company had no unrecognized compensation expense related to stock options. The Company issued 10,250 and 26,500 shares of common stock during 2018 and 2017, respectively, from the exercise of stock options. The company issued no shares from the exercise of stock options during 2019. Product Warranty The Company generally provides a one-year limited product and service warranty on certain of its products. The Company provides for the estimated cost of this warranty at the time of sale. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. Warranty expense in 2019, 2018 and 2017, was $2,483, $3,793 and $2,618, respectively. The table below provides a summary of the warranty liability for December 31, 2019 and 2018: 2019 2018 Accrual at beginning of the year $ 3,752 $ 3,147 Provision 2,483 3,793 Settlement and Other (2,376) (3,188) Accrual at end of year $ 3,859 $ 3,752 Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments and trade accounts receivable. The Company places its cash investments with high-quality financial institutions. In addition, the Company limits the amount of credit exposure through the use of accounts and funds backed by the U.S. Government and its agencies. Trade accounts receivable are generally diversified due to the number of entities comprising the Company’s customer base and their dispersion across many geographic regions and by frequent monitoring of the creditworthiness of the customers to whom the credit is granted in the normal course of business. At December 31, 2018, the Company had one customer with a trade account receivable balance greater than 10% of total accounts receivable. The account balance was 16% of total accounts receivable at December 31, 2018. There were no customers with a trade account receivable balance greater than 10% at December 31, 2019. Revenue Recognition Revenue is recognized when obligations under the terms of a contract with a customer are satisfied. Except for certain extended service contracts on a small percentage of units sold, the Company’s performance obligations are satisfied, and sales revenue is recognized when products are shipped from the Company’s facilities. From time to time, revenue is recognized under a bill and hold arrangement. Recognition of revenue on bill and hold arrangements occurs when control transfers to the customer. Our policy requires the reason for the bill and hold arrangement to be substantive, and the product to be separately identified as belonging to the customer, ready for physical transfer, and unavailable to be used or directed to another customer. Revenue is measured as the amount of consideration expected to be received in exchange for the transfer of products. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. Warranty related costs are recognized as an expense at the time products are sold and a reserve is established. Depending on the terms of the arrangement, for certain contracts the Company may defer the recognition of a portion of the consideration received because a future obligation has not yet been satisfied, such as an extended service contract. An observable price is used to determine the stand-alone selling price for separate performance obligations or a cost plus margin approach is utilized when one is not available. Shipping and Handling Fees and Cost The Company records revenues earned for shipping and handling as revenue, while the cost of shipping and handling is classified as cost of operations. Research and Development Research and development costs are expensed as incurred and included in cost of operations and to a lesser extent in selling, general and administrative expenses. Research and development costs amounted to $3,702, $3,127 and $1,943 for 2019, 2018 and 2017, respectively. Foreign Currency Translation The functional currency for the Company’s foreign operations is the applicable local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date, historical rates for equity and the weighted average exchange rate during the period for revenue and expense accounts. Foreign currency translation adjustments resulting from such translations are included in shareholders’ equity. Intercompany transactions denominated in a currency other than the functional currency are remeasured into the functional currency. Gains and losses resulting from foreign currency transactions are included in other (income) expense, net in our consolidated statements of income. Recent Accounting Pronouncements Recently Issued Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”) 2019-12 Income Taxes (Topic 740), which among other things will require the Company to recognize franchise tax that is partially based on income as an income-based tax. The update will be effective for financial statements issued for annual periods, and interim periods within these annual periods, beginning after December 15, 2020, with early adoption permitted. The Company plans to apply the amendments in the update on a modified retrospective basis. The adoption of this update will not have a material impact on the Company’s consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018‑15 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350‑40) to align the requirements for capitalizing implementation costs incurred in cloud computing arrangements that are service contracts with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update will be effective for financial statements issued for annual periods, and interim periods within these annual periods, beginning after December 15, 2019, with early adoption permitted. The Company plans to apply the amendments in the update prospectively to all implementation costs incurred after the date of the adoption. The adoption of this update will not have a material impact on the Company’s consolidated financial statements and related disclosures. Recently Adopted Standards During the first quarter of 2019, the Company adopted ASU 2016-02 Leases (Topic 842). The FASB issued ASU 2016‑02 to improve financial reporting on leasing transactions. The update affects all companies that lease assets. The amendments require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by lease agreements with terms greater than twelve months. Companies are also required to provide disclosures designed to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements concerning additional information about the amounts recorded in the financial statements. The Company elected the package of practical expedients permitted by ASC Topic 842. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance without reassessing whether the contracts contained a lease under ASC Topic 842 or whether classification of the operating leases would be different in accordance with ASC Topic 842. In the same manner, the company will not reassess the allocation of initial direct costs on existing leases. The Company also elected to not allocate consideration between lease and non-lease components. The amendments were adopted by the Company in the first quarter of 2019 by applying the modified retrospective approach and making a cumulative-effect adjustment to the opening balance of retained earnings at January 1, 2019. The cumulative effect adjustment to the consolidated balance sheets as of January 1, 2019 was as follows: Balance at Cumulative Effect Balance at December 31, 2018 Adjustment January 1, 2019 Assets Right-of-use assets - operating leases $ — $ 2,268 $ 2,268 Liabilities and Shareholders’ Equity Current portion of operating lease obligation — 1,358 1,358 Noncurrent portion of operating lease obligation — 905 905 Deferred income tax liabilities 1,700 1 1,701 Accumulated surplus 81,354 4 81,358 |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt, Unclassified [Abstract] | |
LONG-TERM OBLIGATIONS | 3. Long-Term Obligations On December 20, 2018, we amended and restated our loan agreement with First Tennessee Bank National Association, which governs our existing $50,000 unsecured revolving credit facility, to (i) renew and extend the maturity date to May 31, 2022 and make certain other conforming changes, (ii) reduce the interest rate on outstanding loans from one month LIBOR rate plus 150 basis points to one month LIBOR rate plus an applicable margin of either 1.00% or 1.25% depending on the Company’s Leverage Ratio (as such term is defined in the amended and restated master revolving credit note), which margin adjusts periodically from time to time based on changes in such Leverage Ratio, and make certain other changes to the interest rate provisions, (iii) amend the tangible net worth covenant to increase the minimum required compliance level thereunder from $130,000 to $160,000 (the Company’s tangible net worth at December 31, 2019 was approximately $246,000) and (iv) modify certain definitions and other terms thereof. The credit facility contains customary representations and warranties, events of default, and financial, affirmative and negative covenants for loan agreements of this kind. Covenants under the credit facility restrict the payment of cash dividends if the Company would be in violation of the minimum tangible net worth test or the leverage ratio test in the current loan agreement as a result of the dividend, among various restrictions. We have been in compliance with these covenants throughout 2018 and 2019. In the absence of a default, all borrowings under the credit facility bear interest at the LIBOR Rate plus 1.00% or 1.25% per annum. The Company will pay a non-usage fee under the current loan agreement at a rate per annum equal to between 0.15% and 0.35% of the unused amount of the credit facility, which fee is paid quarterly. In the absence of a default, all borrowings under the credit facility bear interest at the LIBOR Rate plus 1.00% or 1.25% per annum, depending on the leverage ratio. The Company will pay a non-usage fee under the current loan agreement at a rate per annum equal to between 0.15% and 0.35% of the unused amount of the credit facility, which fee is paid quarterly. Interest expense on the credit facility was $684, $512, and $492 for the years ended December 31, 2019, 2018, and 2017, respectively. The Company had $4,998 and $15,000, in outstanding borrowings under the credit facility at December 31, 2019 and 2018, respectively. Our French subsidiary, Jige International S.A., has an agreement with Banque Européenne du Crédit Mutuel for an unsecured fixed rate loan with a maturity date of September 30, 2020. All borrowings under this loan bear interest at 0.3% per annum. At December 31, 2019, the Company had $368 in outstanding borrowings under the loan agreement, all of which was classified as long-term obligations due within one year on the consolidated balance sheets . At December 31, 2018, the Company had $760 in outstanding borrowings under the loan agreement, of which $475 and $285 were classified as long-term obligations and long-term obligations due within one year, respectively, on the consolidated balance sheets. These borrowings are being used primarily for the purchase of land and routine repairs to the operating facilities in France. The loan agreement contains no material covenants. Interest Rate Sensitivity . Changes in interest rates affect the interest paid on indebtedness under our credit facility because the outstanding amounts of indebtedness under our credit facility are subject to variable interest rates. Under our credit facility, the non-default rate of interest is equal to the LIBOR Market Index Rate plus 1.00% or 1.25% per annum, depending on the leverage ratio (for a rate of interest of 2.76% at December 31, 2019). A one percent change in the interest rate on our variable-rate debt would not have materially impacted our financial position, results of operations or cash flows for the year ended December 31, 2019. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | 4. In accordance with the Company’s stock-based compensation plans, the Company may grant incentive stock options as well as non-qualified and other stock-related incentives to officers, employees and non-employee directors of the Company. At the Annual Meeting of Shareholders of the Company held on May 26, 2017, the Company’s shareholders voted to approve the Miller Industries, Inc. 2016 Stock Incentive Plan, pursuant to which 800,000 shares of common stock are available for issuance pursuant to awards granted under the plan. No awards may be granted under the Company’s 2016 Stock Incentive Plan on or after August 1, 2026. Shares available for granting options at each of the years ended December 31, 2019, 2018 and 2017 were 800,000. A summary of the activity of stock options for the years ended December 31, 2019, 2018 and 2017, is presented below (shares in thousands): 2019 2018 2017 Weighted Weighted Weighted Shares Average Shares Average Shares Average Under Exercise Under Exercise Under Exercise Option Price Option Price Option Price Outstanding at Beginning of Period — $ — 11 $ 5.49 37 $ 5.49 Granted — — — — — — Exercised — — (10) 5.49 (26) 5.49 Forfeited and cancelled — — (1) 5 — — Outstanding at End of Period — $ — — $ — 11 $ 5.49 Options exercisable at year end — $ — — $ — 11 $ 5.49 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES: | |
COMMITMENTS AND CONTINGENCIES | 5. Leasing Activities The Company leases certain equipment and facilities under long-term non-cancellable operating and finance lease agreements. The leases expire at various dates through 2026. Certain of the lease agreements contain renewal options. For those leases that have renewal options, the Company included these renewal periods in the lease term if the Company determined it was reasonably certain to exercise the renewal option. Lease payments during such renewal periods were also considered in the calculation of right-of-use assets and lease obligations. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Lease obligations are recognized at the commencement date based on the present value of lease payments over the lease term. Right-of-use assets are recognized at the commencement date as the initial measurement of the lease liability, plus payments made prior to lease commencement and any initial direct costs. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Expense is recognized on a straight-line basis over the lease term for operating leases. For finance leases, expense is recognized as the expense from straight-line amortization of the right-of-use asset plus the periodic interest expense from the lease obligation. Short-term leases have a lease term of twelve months or less. The Company recognizes short-term leases on a straight-line basis and does not record a related right-of-use asset or lease obligation for such contracts. Right-of-use assets related to finance leases are included as a component of property, plant and equipment, net on the consolidated balance sheets and had the following values at December 31, 2019. December 31, 2019 Finance lease right-of-use assets $ 78 Accumulated amortization (21) Finance lease right-of-use assets, net $ 57 A maturity analysis of the undiscounted cash flows of operating and finance lease obligations is as follows: Operating Lease Obligation Finance Lease Obligation Remaining lease payments to be paid during the year ended December 31, 2020 $ 381 $ 23 2021 332 23 2022 317 15 2023 262 — 2024 225 — Thereafter 290 — Total lease payments 1,807 61 Less Imputed Interest (170) (3) Lease obligation at December 31, 2019 $ 1,637 $ 58 The lease cost and certain other information during the year ended December 31, 2019 is as follows: 2019 Lease Cost Finance lease cost: Amortization of right-of-use assets $ 21 Interest on lease obligation 2 Total finance lease cost 23 Total operating lease cost 585 Short-term lease cost 1,231 Total lease cost $ 1,839 Other Information Cash paid for amounts included in the measurement of lease obligation: Operating cash flows from operating leases $ 582 Financing cash flows from finance leases 20 Right-of-use assets obtained in exchange for new finance lease obligations — Right-of-use assets obtained in exchange for new operating lease obligations 265 The weighted average remaining lease term for operating leases and finance leases at December 31, 2019 was 5.6 years and 2.7 years, respectively. The weighted average discount rate for operating leases and finance leases at December 31, 2019 was 3.4% and 4.0%, respectively. The Company’s subsidiary in the United Kingdom leased facilities used for manufacturing and office space from a related party with related lease costs during the year ended December 31, 2019, 2018, and 2017 of $223, $219, and $202, respectively. The Company’s French subsidiary leased a fleet of vehicles from a related party with related lease costs during the year ended December 31, 2019, 2018, and 2017 of $109, $116, and $102, respectively. Contingencies The Company has entered into arrangements with third-party lenders where it has agreed, in the event of default by a distributor within the independent distributor network, to repurchase from the third-party lender company products repossessed from the independent distributor customer. These arrangements are typically subject to a maximum repurchase amount. The maximum amount of collateral that the Company could be required to purchase was approximately $73,958 and $49,694 at December 31, 2019 and 2018, respectively, as distributors increased usage of floor plan financing. The Company’s risk under these arrangements is mitigated by the value of the products that would be repurchased as part of the transaction. The Company considered the fair value at inception of its liability under these arrangements and concluded that the liability associated with these potential repurchase obligations was not probable and thus not material at December 31, 2019 or 2018. No repurchases of products were required during 2019 or 2018. The Company is, from time to time, a party to litigation arising in the normal course of its business. Litigation is subject to various inherent uncertainties, and it is possible that some of these matters could be resolved unfavorably to the Company, which could result in substantial damages against the Company. The Company has established accruals for matters that are probable and reasonably estimable and maintains product liability and other insurance that management believes to be adequate. Management believes that any liability that may ultimately result from the resolution of these matters in excess of available insurance coverage and accruals will not have a material adverse effect on the consolidated financial position or results of operations of the Company. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | 6. The Tax Cuts and Jobs Act (TCJA) was signed into law by the President in 2017. The TCJA created a territorial tax system, which generally allows companies to repatriate future foreign earnings without incurring additional U.S. taxes. It also includes a reduction in the corporate tax rate from a top rate of 35% to a flat rate of 21%, changes in business deductions, and many international provisions. One of the main provisions of the TCJA requires the Company to compute a tax based on a deemed repatriation of deferred foreign income, whether or not actually distributed. At December 31, 2017, the Company had computed a reasonable estimate of this amount to be $1,102, net of foreign tax credits, and reflected it as a component of income tax provision in the consolidated statements of income during 2017. During 2018, the Company gathered additional information which demonstrated that the Company had over-accrued for this tax and reduced the liability to $625, which amount was paid during 2018. Additional provisions of the TCJA are the Global Intangible-Low Taxed Income tax, or "GILTI" and the Foreign Derived Intangible Income deduction, or “FDII”. The provisions were effective for tax years beginning after December 31, 2017. The Company has implemented a policy to account for the impact of book to tax differences resulting from GILTI in the period in which the tax applies to the Company. The impact of GILTI and FDII were considered in the calculation of income tax for the years ended December 31, 2019 and 2018. Income before income taxes includes the following components: 2019 2018 2017 United States $ 41,220 $ 34,220 $ 22,695 Foreign 9,165 7,443 7,644 Total $ 50,385 $ 41,663 $ 30,339 The provision for income taxes on income consisted of the following in 2019, 2018 and 2017: 2019 2018 2017 Current: Federal $ 6,422 $ 5,480 $ 4,871 Federal – Deemed Repatriation — (477) 1,102 State 53 (380) (1,435) Foreign 3,083 2,719 3,653 9,558 7,342 8,191 Deferred: Federal 1,599 571 (919) State 17 (55) 150 Foreign 100 59 (99) 1,716 575 (868) $ 11,274 $ 7,917 $ 7,323 The principal differences between the federal statutory tax rate and the income tax expense in 2019, 2018 and 2017: 2019 2018 2017 Federal statutory tax rate 21.0 % 21.0 % 35.0 % State taxes, net of federal tax benefit 0.1 % (0.8) % 1.0 % Excess of (decreases in) foreign tax over US tax on foreign income 2.5 % 2.9 % 2.9 % Remeasurement of deferred taxes under TCJA — % — % (8) % Deemed repatriation tax — % (1.1) % 3.6 % Domestic tax deductions and credits (0.4) % (0.4) % (3.1) % Foreign Derived Intangible Income deduction (1.1) % (1.3) % — % Release of unrecognized tax benefit — % — % (6) % Other 0.3 % (1.3) % (1.8) % Effective tax rate 22.4 % 19.0 % 24.1 % Deferred tax assets and liabilities are determined based on the differences between the financial and tax basis of existing assets and liabilities using the currently enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred income tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities for financial reporting and income tax reporting purposes. Temporary differences and carry forwards which give rise to deferred tax assets and liabilities at December 31, 2019 and 2018 are as follows: 2019 2018 Deferred tax assets: Allowance for doubtful accounts $ 212 $ 213 Accruals and reserves 1,902 1,963 Other 399 811 Total deferred tax assets 2,513 2,987 Deferred tax liabilities: Property, plant, and equipment 5,926 4,686 Other 3 1 Total deferred tax liabilities 5,929 4,687 Valuation Allowance — — Net deferred tax asset/(liability) $ (3,416) $ (1,700) Deferred tax assets represent the future tax benefit of future deductible differences and, if it is more likely than not that a tax asset will not be realized, a valuation allowance is required to reduce the recorded deferred tax assets to net realizable value. The Company has evaluated positive and negative evidence to assess the realizability of its deferred taxes. Based on the evidence, the Company believes it is more likely than not that its deferred tax assets will be realizable. Accordingly, the Company has not included a valuation allowance against its deferred tax assets at this time. During 2018, the Company released $44 from its valuation allowance related to a deferred tax asset on a state net operating loss carryforward. We do not currently have plans to repatriate undistributed foreign earnings to the United States and have not determined any timeline or amount for any such future distributions. As of December 31, 2019, the Company had no federal net operating loss carryforwards, and no significant state net operating loss carryforwards. At December 31, 2018, the Company had a state net operating loss carryforward of $834. Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold, it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being recognized. A summary of the activity of the unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017, is presented below: 2019 2018 2017 Unrecognized tax benefits – January 1 — — 1,037 Gross increases – tax positions in prior period — — 120 Gross decreases – tax positions in prior period — — (1,157) Unrecognized tax benefits –December 31, $ — $ — $ — During 2017, the Company accrued additional interest of $1 and penalties of $61 related to the unrecognized tax benefit, but subsequently released the $1,157 liability for the unrecognized tax benefits in full, including all related interest and penalties, due to changes in judgment resulting from the evaluation of new information not previously available. The Company is subject to United States federal income taxes, as well as income taxes in various states and foreign jurisdictions. The Company’s 2016 and later tax years remain open to examination by the tax authorities. With few exceptions, as of December 31, 2019, the Company is no longer subject to U.S. federal, state or non-U.S. income tax examinations prior to 2016. |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
SHAREHOLDERS EQUITY | |
SHAREHOLDERS EQUITY | 7. Common Stock The Company is authorized to issue up to 100,000,000 shares of common stock with a par value of one cent per share. Preferred Stock The Company is authorized to issue up to 5,000,000 shares of undesignated preferred stock with a par value of one cent per share and which can be issued in one or more series. The terms, price and conditions of the preferred shares will be set by the board of directors. No shares of preferred stock have been issued. Dividends The Company has paid consecutive quarterly cash dividends since May 2011. Dividend payments made for 2019, 2018 and 2017 were as follows: Dividend Payment Record Date Payment Date (per share) Amount Q1 2017 March 27, 2017 April 3, 2017 $ 0.18 $ 2,043 Q2 2017 June 13, 2017 June 20, 2017 0.18 2,048 Q3 2017 September 11, 2017 September 18, 2017 0.18 2,048 Q4 2017 December 4, 2017 December 11, 2017 0.18 2,049 Total for 2017 $ 0.72 $ 8,188 Q1 2018 March 19, 2018 March 26, 2018 $ 0.18 $ 2,049 Q2 2018 June 11, 2018 June 18, 2018 0.18 2,049 Q3 2018 September 10, 2018 September 17, 2018 0.18 2,051 Q4 2018 December 3, 2018 December 10, 2018 0.18 2,051 Total for 2018 $ 0.72 $ 8,200 Q1 2019 March 18, 2019 March 25, 2019 $ 0.18 $ 2,052 Q2 2019 June 10, 2019 June 17, 2019 0.18 2,051 Q3 2019 September 9, 2019 September 16, 2019 0.18 2,053 Q4 2019 December 9, 2019 December 16, 2019 0.18 2,052 Total for 2019 $ 0.72 $ 8,208 Accumulated Other Comprehensive Loss During the year ended December 31, 2018, the Company reclassified a net foreign currency gain related to operations discontinued in previous years of $552 from accumulated other comprehensive loss to accumulated surplus. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 8. The Company maintains a contributory retirement plan for all full-time employees with at least 90 days of service. The plan is designed to provide tax-deferred income to the Company’s employees in accordance with the provisions of Section 401(k) of the Internal Revenue Code. The plan provides that each participant may contribute the maximum allowable under Internal Revenue Service regulations. For 2019, 2018 and 2017, the Company matched 50% of the first 5% of participant contributions. Matching contributions vest over the first five years of employment. Company contributions to the plan were $1,030, $917 and $833 in 2019, 2018 and 2017, respectively. |
REVENUE AND LONG-LIVED ASSETS
REVENUE AND LONG-LIVED ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE AND LONG-LIVED ASSETS | |
REVENUE AND LONG-LIVED ASSETS | 9. Substantially all of our revenue is generated from sales of towing equipment. As such, disaggregation of revenue by product line would not provide useful information because all product lines have substantially similar characteristics. However, revenue streams are tracked by the geographic location of customers. Net sales and long-lived assets (property, plant and equipment, operating lease right-of-use assets, and goodwill) by region were as follows. Net sales are attributed to regions based on the locations of customers: 2019 2018 2017 Long- Long- Long- Lived Lived Lived Net Sales Assets Net Sales Assets Net Sales Assets North America $ 697,002 $ 97,650 $ 574,806 $ 90,036 $ 527,134 $ 85,707 Foreign $ 818,166 $ 103,994 $ 711,706 $ 94,469 $ 615,101 $ 89,247 Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to performance obligations to be satisfied in the future. As of December 31, 2019 and December 31, 2018, contract liability balances were $324 and $331, respectively, and are included in accrued liabilities on the accompanying consolidated balance sheets. During the years ended December 31, 2019 and 2018, the Company increased contract liabilities by $310 and $1,391, respectively. However, during the third quarter of 2019 and fourth quarter of 2018, respectively, the Company settled $361 and $1,214 of this liability with a contract credit in lieu of satisfaction of these obligations. The Company did not have any contract assets at December 31, 2019 or December 31, 2018. Terms on account receivables vary and are based on specific terms agreed upon with each customer. Write-offs of accounts receivable were not material during the years ended December 31, 2019 or 2018 . |
CUSTOMER INFORMATION
CUSTOMER INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
CUSTOMER INFORMATION | |
CUSTOMER INFORMATION | 10. No single customer accounted for 10% or more of consolidated net sales for 2019, 2018 and 2017. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 11. The following is a summary of the unaudited quarterly financial information for the years ended December 31, 2019 and 2018: Cash Basic Diluted Dividends Operating Net Income Income Per Declared Net Sales Income Income Per Share Share Per Share 2019 First Quarter $ 197,213 $ 12,382 $ 8,660 $ 0.76 $ 0.76 $ 0.18 Second Quarter 222,346 14,245 10,683 0.94 0.94 0.18 Third Quarter 195,467 11,293 8,076 0.71 0.71 0.18 Fourth Quarter 203,140 15,174 11,692 1.03 1.03 0.18 2018 First Quarter $ 159,160 $ 8,838 $ 6,670 $ 0.59 $ 0.59 $ 0.18 Second Quarter 176,888 11,601 7,600 0.67 0.67 0.18 Third Quarter 195,690 12,026 8,677 0.76 0.76 0.18 Fourth Quarter 179,968 11,329 10,799 0.95 0.95 0.18 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 12. On March 2, 2020, the Company’s board of directors declared a quarterly cash dividend of $0.18 per share. The dividend is payable March 23, 2020 to shareholders of record as of March 16, 2020. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
VALUATION AND QUALIFYING ACCOUNTS | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II –VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Accounts Balance at Beginning Charged to Written End of of Period Expense Off Period Year Ended December 31, 2017 Deduction from asset accounts: Allowance for doubtful accounts $ 1,004 86 (52) $ 1,038 Year Ended December 31, 2018 Deduction from asset accounts: Allowance for doubtful accounts $ 1,038 214 (140) $ 1,112 Year Ended December 31, 2019 Deduction from asset accounts: Allowance for doubtful accounts $ 1,112 15 (21) $ 1,106 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Consolidation | Consolidation The accompanying consolidated financial statements include the accounts of Miller Industries, Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated. To facilitate timely reporting, the consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st by 31 days (or less). |
Cash and Temporary Investments | Cash and Temporary Investments Cash and temporary investments include all cash and cash equivalent investments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Receivables are stated at their estimated collectible amounts and consist of amounts billed and currently due from customers. The Company extends credit to customers in the normal course of business. Collections from customers are continuously monitored and an allowance for doubtful accounts is maintained based on historical experience and any specific customer collection issues. Data by each major customer is regularly reviewed to evaluate the adequacy of the allowance for doubtful accounts and actual write-offs are charged against the allowance. |
Inventories | Inventories Inventory costs include materials, labor and factory overhead. Inventories are stated at the lower of cost or net realizable value, determined on a first-in, first-out basis. Appropriate consideration is given to obsolescence, valuation and other factors in determining net realizable value. Revisions of these estimates could result in the need for adjustments. Inventories, net of reserves, at December 31, 2019 and 2018 consisted of the following: December 31, December 31, 2019 2018 Chassis $ 6,561 $ 8,921 Raw materials 39,444 40,021 Work in process 16,520 14,995 Finished goods 25,440 29,830 $ 87,965 $ 93,767 |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, less accumulated depreciation. Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of the assets. Accelerated depreciation methods are used for income tax reporting purposes. Estimated useful lives range from 20 to 30 years for buildings and improvements and 5 to 10 years for machinery and equipment, furniture and fixtures, and software costs. Expenditures for routine maintenance and repairs are charged to expense as incurred. Internal labor is used in certain capital projects. Fully depreciated assets are retained in property, plant and equipment and accumulated depreciation until they are removed from service. When assets are retired or otherwise disposed of, the related costs and accumulated depreciation are removed from the consolidated balance sheets and any resulting gain or loss from disposition is recorded as other (income) expense, net in the consolidated statements of income in the period realized. Property, plant and equipment at December 31, 2019 and 2018 consisted of the following: 2019 2018 Land and improvements $ 13,953 $ 11,807 Buildings and improvements 73,121 68,717 Machinery and equipment 50,235 43,961 Furniture and fixtures 9,172 7,786 Software costs 6,033 5,695 152,514 137,966 Less accumulated depreciation (61,779) (55,116) $ 90,735 $ 82,850 The Company recognized $9,127, $7,745 and $6,147, in depreciation and amortization expense in 2019, 2018 and 2017, respectively. The Company capitalizes costs related to software development in accordance with established criteria, and amortizes those costs to expense on a straight-line basis over five years. System development costs not meeting proper criteria for capitalization are expensed as incurred. |
Basic and Diluted Income Per Common Share | Basic and Diluted Income Per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted income per common share is calculated by dividing net income by the weighted average number of common and potential dilutive common shares outstanding. Diluted income per common share takes into consideration the assumed exercise of outstanding stock options resulting in approximately 5,000 and 17,000 potential dilutive common shares in each of the years ended December 31, 2018 and 2017, respectively. The Company had no outstanding stock options and no potential dilutive common shares for the year ended December 31, 2019. For the years ended December 31, 2018 and 2017, none of the outstanding stock options would have been anti-dilutive. |
Long-Lived Assets | Long-Lived Assets The Company periodically reviews the carrying amount of its long-lived assets to determine if those assets may not be recoverable based upon the future operating cash flows expected to be generated by those assets. Management believes that its long-lived assets are appropriately valued. |
Goodwill | Goodwill Goodwill consists of the excess of cost of acquired entities over the sum of the amounts assigned to identifiable assets acquired less liabilities assumed. Goodwill is not amortized. However, the Company evaluates the carrying value of goodwill for impairment at least annually or if an event or circumstance occurs that would indicate that the carrying amount had been impaired. Goodwill is reviewed for impairment utilizing a qualitative assessment and, if necessary, a quantitative assessment. If we perform a qualitative analysis of goodwill and determine that fair value more likely than not exceeds the carrying value of the reporting unit, no further testing is needed. Alternatively, if we elect to utilize a quantitative assessment, an impairment loss would be recognized to the extent that the carrying value of the reporting unit exceeds its fair value, not to exceed the carrying value of the goodwill. |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following at December 31, 2019 and 2018: 2019 2018 Accrued wages, commissions, bonuses and benefits $ 12,382 $ 9,152 Accrued products warranty 3,859 3,752 Accrued taxes 2,079 1,039 Other 9,493 10,920 $ 27,813 $ 24,863 |
Income Taxes | Income Taxes The Company’s income tax expense, deferred tax assets and liabilities and liabilities for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes in both the United States and foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. The Company recognizes as deferred income tax assets and liabilities the future tax consequences of the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company considers the need to record a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. Tax loss carryforwards, reversal of deferred tax liabilities, tax planning and estimates of future taxable income are considered in assessing the need for a valuation allowance. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the positions and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of income. Accrued interest and penalties are included within the related tax liability line in the accompanying consolidated balance sheets. |
Stock-Based Compensation | Stock-Based Compensation Stock compensation expense was $150 for 2019, 2018 and 2017. No options were granted during 2019, 2018, or 2017. The fair value of options granted in 2008 has been estimated as of the date of the grant using the Black-Scholes option-pricing model with the following weighted average assumptions: expected dividend yield of 0%; expected volatility of 44%; risk-free interest rate of 1.71%; and expected life of four years. Using these assumptions, the fair value of options granted in 2008 was $1,596, which was amortized as compensation expense over the vesting period. At December 31, 2018, the Company had no unrecognized compensation expense related to stock options. The Company issued 10,250 and 26,500 shares of common stock during 2018 and 2017, respectively, from the exercise of stock options. The company issued no shares from the exercise of stock options during 2019. |
Product Warranty | Product Warranty The Company generally provides a one-year limited product and service warranty on certain of its products. The Company provides for the estimated cost of this warranty at the time of sale. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. Warranty expense in 2019, 2018 and 2017, was $2,483, $3,793 and $2,618, respectively. The table below provides a summary of the warranty liability for December 31, 2019 and 2018: 2019 2018 Accrual at beginning of the year $ 3,752 $ 3,147 Provision 2,483 3,793 Settlement and Other (2,376) (3,188) Accrual at end of year $ 3,859 $ 3,752 |
Credit Risk | Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments and trade accounts receivable. The Company places its cash investments with high-quality financial institutions. In addition, the Company limits the amount of credit exposure through the use of accounts and funds backed by the U.S. Government and its agencies. Trade accounts receivable are generally diversified due to the number of entities comprising the Company’s customer base and their dispersion across many geographic regions and by frequent monitoring of the creditworthiness of the customers to whom the credit is granted in the normal course of business. At December 31, 2018, the Company had one customer with a trade account receivable balance greater than 10% of total accounts receivable. The account balance was 16% of total accounts receivable at December 31, 2018. There were no customers with a trade account receivable balance greater than 10% at December 31, 2019. |
Revenue Recognition | Revenue Recognition Revenue is recognized when obligations under the terms of a contract with a customer are satisfied. Except for certain extended service contracts on a small percentage of units sold, the Company’s performance obligations are satisfied, and sales revenue is recognized when products are shipped from the Company’s facilities. From time to time, revenue is recognized under a bill and hold arrangement. Recognition of revenue on bill and hold arrangements occurs when control transfers to the customer. Our policy requires the reason for the bill and hold arrangement to be substantive, and the product to be separately identified as belonging to the customer, ready for physical transfer, and unavailable to be used or directed to another customer. Revenue is measured as the amount of consideration expected to be received in exchange for the transfer of products. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. Warranty related costs are recognized as an expense at the time products are sold and a reserve is established. Depending on the terms of the arrangement, for certain contracts the Company may defer the recognition of a portion of the consideration received because a future obligation has not yet been satisfied, such as an extended service contract. An observable price is used to determine the stand-alone selling price for separate performance obligations or a cost plus margin approach is utilized when one is not available. |
Shipping and Handling Fees and Cost | Shipping and Handling Fees and Cost The Company records revenues earned for shipping and handling as revenue, while the cost of shipping and handling is classified as cost of operations. |
Research and Development | Research and Development Research and development costs are expensed as incurred and included in cost of operations and to a lesser extent in selling, general and administrative expenses. Research and development costs amounted to $3,702, $3,127 and $1,943 for 2019, 2018 and 2017, respectively. |
Foreign Currency Translation | Foreign Currency Translation The functional currency for the Company’s foreign operations is the applicable local currency. The translation from the applicable foreign currencies to U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date, historical rates for equity and the weighted average exchange rate during the period for revenue and expense accounts. Foreign currency translation adjustments resulting from such translations are included in shareholders’ equity. Intercompany transactions denominated in a currency other than the functional currency are remeasured into the functional currency. Gains and losses resulting from foreign currency transactions are included in other (income) expense, net in our consolidated statements of income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”) 2019-12 Income Taxes (Topic 740), which among other things will require the Company to recognize franchise tax that is partially based on income as an income-based tax. The update will be effective for financial statements issued for annual periods, and interim periods within these annual periods, beginning after December 15, 2020, with early adoption permitted. The Company plans to apply the amendments in the update on a modified retrospective basis. The adoption of this update will not have a material impact on the Company’s consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018‑15 Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350‑40) to align the requirements for capitalizing implementation costs incurred in cloud computing arrangements that are service contracts with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update will be effective for financial statements issued for annual periods, and interim periods within these annual periods, beginning after December 15, 2019, with early adoption permitted. The Company plans to apply the amendments in the update prospectively to all implementation costs incurred after the date of the adoption. The adoption of this update will not have a material impact on the Company’s consolidated financial statements and related disclosures. Recently Adopted Standards During the first quarter of 2019, the Company adopted ASU 2016-02 Leases (Topic 842). The FASB issued ASU 2016‑02 to improve financial reporting on leasing transactions. The update affects all companies that lease assets. The amendments require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by lease agreements with terms greater than twelve months. Companies are also required to provide disclosures designed to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements concerning additional information about the amounts recorded in the financial statements. The Company elected the package of practical expedients permitted by ASC Topic 842. Accordingly, the Company accounted for its existing operating leases as operating leases under the new guidance without reassessing whether the contracts contained a lease under ASC Topic 842 or whether classification of the operating leases would be different in accordance with ASC Topic 842. In the same manner, the company will not reassess the allocation of initial direct costs on existing leases. The Company also elected to not allocate consideration between lease and non-lease components. The amendments were adopted by the Company in the first quarter of 2019 by applying the modified retrospective approach and making a cumulative-effect adjustment to the opening balance of retained earnings at January 1, 2019. The cumulative effect adjustment to the consolidated balance sheets as of January 1, 2019 was as follows: Balance at Cumulative Effect Balance at December 31, 2018 Adjustment January 1, 2019 Assets Right-of-use assets - operating leases $ — $ 2,268 $ 2,268 Liabilities and Shareholders’ Equity Current portion of operating lease obligation — 1,358 1,358 Noncurrent portion of operating lease obligation — 905 905 Deferred income tax liabilities 1,700 1 1,701 Accumulated surplus 81,354 4 81,358 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of inventories, net of reserves | December 31, December 31, 2019 2018 Chassis $ 6,561 $ 8,921 Raw materials 39,444 40,021 Work in process 16,520 14,995 Finished goods 25,440 29,830 $ 87,965 $ 93,767 |
Schedule of property, plant and equipment | 2019 2018 Land and improvements $ 13,953 $ 11,807 Buildings and improvements 73,121 68,717 Machinery and equipment 50,235 43,961 Furniture and fixtures 9,172 7,786 Software costs 6,033 5,695 152,514 137,966 Less accumulated depreciation (61,779) (55,116) $ 90,735 $ 82,850 |
Schedule of accrued liabilities | 2019 2018 Accrued wages, commissions, bonuses and benefits $ 12,382 $ 9,152 Accrued products warranty 3,859 3,752 Accrued taxes 2,079 1,039 Other 9,493 10,920 $ 27,813 $ 24,863 |
Schedule of product warranty liability | 2019 2018 Accrual at beginning of the year $ 3,752 $ 3,147 Provision 2,483 3,793 Settlement and Other (2,376) (3,188) Accrual at end of year $ 3,859 $ 3,752 |
Schedule of adoption to reported results | Balance at Cumulative Effect Balance at December 31, 2018 Adjustment January 1, 2019 Assets Right-of-use assets - operating leases $ — $ 2,268 $ 2,268 Liabilities and Shareholders’ Equity Current portion of operating lease obligation — 1,358 1,358 Noncurrent portion of operating lease obligation — 905 905 Deferred income tax liabilities 1,700 1 1,701 Accumulated surplus 81,354 4 81,358 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION PLANS | |
Schedule of stock options, activity | 2019 2018 2017 Weighted Weighted Weighted Shares Average Shares Average Shares Average Under Exercise Under Exercise Under Exercise Option Price Option Price Option Price Outstanding at Beginning of Period — $ — 11 $ 5.49 37 $ 5.49 Granted — — — — — — Exercised — — (10) 5.49 (26) 5.49 Forfeited and cancelled — — (1) 5 — — Outstanding at End of Period — $ — — $ — 11 $ 5.49 Options exercisable at year end — $ — — $ — 11 $ 5.49 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES: | |
Summary of right-of-use assets related to finance leases | December 31, 2019 Finance lease right-of-use assets $ 78 Accumulated amortization (21) Finance lease right-of-use assets, net $ 57 |
Summary of maturities of operating lease liabilities | A maturity analysis of the undiscounted cash flows of operating and finance lease obligations is as follows: Operating Lease Obligation Finance Lease Obligation Remaining lease payments to be paid during the year ended December 31, 2020 $ 381 $ 23 2021 332 23 2022 317 15 2023 262 — 2024 225 — Thereafter 290 — Total lease payments 1,807 61 Less Imputed Interest (170) (3) Lease obligation at December 31, 2019 $ 1,637 $ 58 |
Summary of maturities of finance lease liabilities | A maturity analysis of the undiscounted cash flows of operating and finance lease obligations is as follows: Operating Lease Obligation Finance Lease Obligation Remaining lease payments to be paid during the year ended December 31, 2020 $ 381 $ 23 2021 332 23 2022 317 15 2023 262 — 2024 225 — Thereafter 290 — Total lease payments 1,807 61 Less Imputed Interest (170) (3) Lease obligation at December 31, 2019 $ 1,637 $ 58 |
Summary of components of our lease cost | 2019 Lease Cost Finance lease cost: Amortization of right-of-use assets $ 21 Interest on lease obligation 2 Total finance lease cost 23 Total operating lease cost 585 Short-term lease cost 1,231 Total lease cost $ 1,839 Other Information Cash paid for amounts included in the measurement of lease obligation: Operating cash flows from operating leases $ 582 Financing cash flows from finance leases 20 Right-of-use assets obtained in exchange for new finance lease obligations — Right-of-use assets obtained in exchange for new operating lease obligations 265 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Schedule of income before income tax, domestic and foreign | 2019 2018 2017 United States $ 41,220 $ 34,220 $ 22,695 Foreign 9,165 7,443 7,644 Total $ 50,385 $ 41,663 $ 30,339 |
Schedule of provision for income taxes | 2019 2018 2017 Current: Federal $ 6,422 $ 5,480 $ 4,871 Federal – Deemed Repatriation — (477) 1,102 State 53 (380) (1,435) Foreign 3,083 2,719 3,653 9,558 7,342 8,191 Deferred: Federal 1,599 571 (919) State 17 (55) 150 Foreign 100 59 (99) 1,716 575 (868) $ 11,274 $ 7,917 $ 7,323 |
Schedule of effective income tax rate reconciliation | 2019 2018 2017 Federal statutory tax rate 21.0 % 21.0 % 35.0 % State taxes, net of federal tax benefit 0.1 % (0.8) % 1.0 % Excess of (decreases in) foreign tax over US tax on foreign income 2.5 % 2.9 % 2.9 % Remeasurement of deferred taxes under TCJA — % — % (8) % Deemed repatriation tax — % (1.1) % 3.6 % Domestic tax deductions and credits (0.4) % (0.4) % (3.1) % Foreign Derived Intangible Income deduction (1.1) % (1.3) % — % Release of unrecognized tax benefit — % — % (6) % Other 0.3 % (1.3) % (1.8) % Effective tax rate 22.4 % 19.0 % 24.1 % |
Schedule of deferred income tax assets and liabilities | 2019 2018 Deferred tax assets: Allowance for doubtful accounts $ 212 $ 213 Accruals and reserves 1,902 1,963 Other 399 811 Total deferred tax assets 2,513 2,987 Deferred tax liabilities: Property, plant, and equipment 5,926 4,686 Other 3 1 Total deferred tax liabilities 5,929 4,687 Valuation Allowance — — Net deferred tax asset/(liability) $ (3,416) $ (1,700) |
Schedule of activity of the unrecognized tax benefits | 2019 2018 2017 Unrecognized tax benefits – January 1 — — 1,037 Gross increases – tax positions in prior period — — 120 Gross decreases – tax positions in prior period — — (1,157) Unrecognized tax benefits –December 31, $ — $ — $ — |
SHAREHOLDERS EQUITY (Tables)
SHAREHOLDERS EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHAREHOLDERS EQUITY | |
Schedule of dividends payments | Dividend Payment Record Date Payment Date (per share) Amount Q1 2017 March 27, 2017 April 3, 2017 $ 0.18 $ 2,043 Q2 2017 June 13, 2017 June 20, 2017 0.18 2,048 Q3 2017 September 11, 2017 September 18, 2017 0.18 2,048 Q4 2017 December 4, 2017 December 11, 2017 0.18 2,049 Total for 2017 $ 0.72 $ 8,188 Q1 2018 March 19, 2018 March 26, 2018 $ 0.18 $ 2,049 Q2 2018 June 11, 2018 June 18, 2018 0.18 2,049 Q3 2018 September 10, 2018 September 17, 2018 0.18 2,051 Q4 2018 December 3, 2018 December 10, 2018 0.18 2,051 Total for 2018 $ 0.72 $ 8,200 Q1 2019 March 18, 2019 March 25, 2019 $ 0.18 $ 2,052 Q2 2019 June 10, 2019 June 17, 2019 0.18 2,051 Q3 2019 September 9, 2019 September 16, 2019 0.18 2,053 Q4 2019 December 9, 2019 December 16, 2019 0.18 2,052 Total for 2019 $ 0.72 $ 8,208 |
REVENUE AND LONG-LIVED ASSETS (
REVENUE AND LONG-LIVED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE AND LONG-LIVED ASSETS | |
Schedule of net sales and long-lived assets by region | 2019 2018 2017 Long- Long- Long- Lived Lived Lived Net Sales Assets Net Sales Assets Net Sales Assets North America $ 697,002 $ 97,650 $ 574,806 $ 90,036 $ 527,134 $ 85,707 Foreign $ 818,166 $ 103,994 $ 711,706 $ 94,469 $ 615,101 $ 89,247 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
Schedule of quarterly financial information | Cash Basic Diluted Dividends Operating Net Income Income Per Declared Net Sales Income Income Per Share Share Per Share 2019 First Quarter $ 197,213 $ 12,382 $ 8,660 $ 0.76 $ 0.76 $ 0.18 Second Quarter 222,346 14,245 10,683 0.94 0.94 0.18 Third Quarter 195,467 11,293 8,076 0.71 0.71 0.18 Fourth Quarter 203,140 15,174 11,692 1.03 1.03 0.18 2018 First Quarter $ 159,160 $ 8,838 $ 6,670 $ 0.59 $ 0.59 $ 0.18 Second Quarter 176,888 11,601 7,600 0.67 0.67 0.18 Third Quarter 195,690 12,026 8,677 0.76 0.76 0.18 Fourth Quarter 179,968 11,329 10,799 0.95 0.95 0.18 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2019Distributor | |
ORGANIZATION AND NATURE OF OPERATIONS | |
Number of independent distributors | 80 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Chassis | $ 6,561 | $ 8,921 |
Raw materials | 39,444 | 40,021 |
Work in process | 16,520 | 14,995 |
Finished goods | 25,440 | 29,830 |
Inventories | $ 87,965 | $ 93,767 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 152,514 | $ 137,966 |
Less accumulated depreciation | (61,779) | (55,116) |
Property, plant and equipment, net | 90,735 | 82,850 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,953 | 11,807 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 73,121 | 68,717 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 50,235 | 43,961 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,172 | 7,786 |
Software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 6,033 | $ 5,695 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Life (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 9,127 | $ 7,745 | $ 6,147 |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Furniture and fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Furniture and fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Software costs | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Software costs | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Software costs | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and Diluted Income Per Common Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Outstanding stock options included in the calculation of diluted EPS | 0 | 5,000 | 17,000 |
Outstanding stock options | 0 | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Accrued wages, commissions, bonuses and benefits | $ 12,382 | $ 9,152 |
Accrued products warranty | 3,859 | 3,752 |
Accrued taxes | 2,079 | 1,039 |
Other | 9,493 | 10,920 |
Accrued liabilities | $ 27,813 | $ 24,863 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 150 | $ 150 | $ 150 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 0 | 0 | 0 |
Method used for fair value assumption of options granted | Black-Scholes option-pricing model | ||
Expected dividend yield | 0.00% | ||
Expected volatility rate | 44.00% | ||
Risk-free interest rate | 1.71% | ||
Expected life | 4 years | ||
Fair value of options granted | $ 1,596 | ||
Unrecognized compensation expense | $ 0 | ||
Number of common stock issued from exercise of stock options | 0 | 10,250 | 26,500 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Product Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Accrual at beginning of the year | $ 3,752 | $ 3,147 |
Provision | 2,483 | 3,793 |
Settlement and Other | (2,376) | (3,188) |
Accrual at end of year | $ 3,859 | $ 3,752 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)customer | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Term of product warranty | 1 year | ||
Product warranty expense | $ 2,483 | $ 3,793 | $ 2,618 |
Research and development costs | $ 3,702 | $ 3,127 | $ 1,943 |
Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Number of customer | 0 | 1 | |
Concentration Risk, Percentage | 16.00% |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Standards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Right-of-use assets - operating leases | $ 1,640 | $ 2,268 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current portion of operating lease obligation | 330 | 1,358 | |
Noncurrent portion of operating lease obligation | 1,307 | 905 | |
Deferred income tax liabilities | 3,416 | 1,701 | 1,700 |
Accumulated Surplus | $ 112,261 | 81,358 | $ 81,354 |
Lease, Practical Expedients, Package [true false] | true | ||
ASU 2016-02 | Cumulative Effect Adjustment | |||
ASSETS | |||
Right-of-use assets - operating leases | 2,268 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current portion of operating lease obligation | 1,358 | ||
Noncurrent portion of operating lease obligation | 905 | ||
Deferred income tax liabilities | 1 | ||
Accumulated Surplus | $ 4 |
LONG-TERM OBLIGATIONS (Details)
LONG-TERM OBLIGATIONS (Details) - USD ($) $ in Thousands | Dec. 20, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 19, 2018 |
Line of Credit Facility [Line Items] | |||||
Long-term debt | $ 368 | $ 285 | |||
First Tennessee Bank National Association | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Revolving credit facility | $ 50,000 | ||||
Debt Instrument, Description Of Variable Rate Basis | one month LIBOR rate plus 150 basis points | one month LIBOR rate plus an applicable margin of either 1.00% or 1.25% depending on the Company's Leverage Ratio (as such term is defined in the amended and restated master revolving credit note), which margin adjusts periodically from time to time based on changes in such Leverage Ratio, and make certain other changes to the interest rate provisions | |||
Interest expense on credit facility | $ 684 | 512 | $ 492 | ||
Outstanding borrowings credit facility | 4,998 | 15,000 | |||
Minimum tangible net worth required for compliance | $ 160,000 | $ 130,000 | |||
Tangible net worth | $ 246,000 | ||||
First Tennessee Bank National Association | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Variable interest rate in addition to reference rate | 1.50% | ||||
Interest rate | 2.76% | ||||
First Tennessee Bank National Association | Revolving Credit Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Non-usage fee for current loan agreement in annual amount percentage | 0.15% | ||||
First Tennessee Bank National Association | Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Variable interest rate in addition to reference rate | 1.00% | 1.00% | |||
First Tennessee Bank National Association | Revolving Credit Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Non-usage fee for current loan agreement in annual amount percentage | 0.35% | ||||
First Tennessee Bank National Association | Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Variable interest rate in addition to reference rate | 1.25% | 1.25% | |||
Jige International S.A. | Banque Europeenne du Credit Mutuel | |||||
Line of Credit Facility [Line Items] | |||||
Unsecured fixed rate loan | 760 | ||||
Interest rate per annum | 0.30% | ||||
Unsecured debt, long-term obligations | 475 | ||||
Unsecured debt, long-term obligations due within one year | $ 368 | $ 285 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Stock Options Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares Under Option | |||
Outstanding at End of Period | 0 | ||
2016 Stock Incentive Plan | |||
Shares Under Option | |||
Outstanding at Beginning of Period | 11,000 | 37,000 | |
Granted | |||
Exercised | (10,000) | (26,000) | |
Forfeited and cancelled | (1,000) | ||
Outstanding at End of Period | 11,000 | ||
Options exercisable at year end | 11,000 | ||
Weighted Average Exercise Price | |||
Outstanding at Beginning of Period | $ 5.49 | $ 5.49 | |
Granted | |||
Exercised | 5.49 | 5.49 | |
Forfeited and cancelled | 5 | ||
Outstanding at End of Period | 5.49 | ||
Options exercisable at year end | $ 5.49 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - Stock Options - 2016 Stock Incentive Plan - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for granting options | 800,000 | 800,000 | 800,000 |
Number of shares of common stock are available for issuance | 800,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Right-of-use Assets (Details) $ in Thousands | Dec. 31, 2019USD ($) |
COMMITMENTS AND CONTINGENCIES: | |
Finance lease right-of-use assets | $ 78 |
Accumulated amortization | (21) |
Finance lease right-of-use assets, net | $ 57 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Minimum Lease Payments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating lease obligation | |
2020 | $ 381 |
2021 | 332 |
2022 | 317 |
2023 | 262 |
2024 | 225 |
Thereafter | 290 |
Total lease payments | 1,807 |
Less Imputed Interest | (170) |
Lease obligation at December 31, 2019 | $ 1,637 |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true |
Lessee, Operating Lease, Existence of Option to Terminate [true false] | true |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 23 |
2021 | 23 |
2022 | 15 |
Total lease payments | 61 |
Less Imputed Interest | (3) |
Lease obligation at December 31, 2019 | $ 58 |
Lessee, Finance Lease, Existence of Option to Extend [true false] | true |
Lessee, Finance Lease, Existence of Option to Terminate [true false] | true |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lease Cost | |||
Amortization of right-of-use assets | $ 21 | ||
Interest on lease obligation | 2 | ||
Total finance lease cost | 23 | ||
Total operating lease cost | 585 | ||
Short-term lease cost | 1,231 | ||
Total lease cost | 1,839 | ||
Cash paid for amounts included in the measurement of lease obligation: | |||
Operating cash flows from operating leases | 582 | ||
Financing cash flows from finance leases | 20 | ||
Right-of-use assets obtained in exchange for new finance lease obligations | |||
Right-of-use assets obtained in exchange for new operating lease obligations | $ 265 | ||
Weighted average remaining lease term for operating leases | 5 years 7 months 6 days | ||
Weighted average remaining lease term for finance leases | 2 years 8 months 12 days | ||
Weighted average discount rate for operating leases | 3.40% | ||
Weighted average discount rate for finance leases | 4.00% | ||
Boniface Engineering Ltd. | |||
Lease Cost | |||
Total lease cost | $ 223 | 219 | 202 |
Jige International S.a. | |||
Lease Cost | |||
Total lease cost | $ 109 | $ 116 | $ 102 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maximum | ||
Commitments And Contingencies [Line Items] | ||
Maximum repurchase collateral amount | $ 73,958 | $ 49,694 |
INCOME TAXES - Components (Deta
INCOME TAXES - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income before income taxes | |||
United States | $ 41,220 | $ 34,220 | $ 22,695 |
Foreign | 9,165 | 7,443 | 7,644 |
Total | $ 50,385 | $ 41,663 | $ 30,339 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 6,422 | $ 5,480 | $ 4,871 |
Current federal deemed repatriation | (477) | 1,102 | |
State | 53 | (380) | (1,435) |
Foreign | 3,083 | 2,719 | 3,653 |
Current income tax expense | 9,558 | 7,342 | 8,191 |
Deferred: | |||
Federal | 1,599 | 571 | (919) |
State | 17 | (55) | 150 |
Foreign | 100 | 59 | (99) |
Deferred income tax expense | 1,716 | 575 | (868) |
Income tax expense | $ 11,274 | $ 7,917 | $ 7,323 |
INCOME TAXES - Federal Statutor
INCOME TAXES - Federal Statutory Tax Rate and Income Tax Expense (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAXES | |||
Federal statutory tax rate | 21.00% | 21.00% | 35.00% |
State taxes, net of federal tax benefit | 0.10% | (0.80%) | 1.00% |
Excess of (decreases in) foreign tax over US tax on foreign income | 2.50% | 2.90% | 2.90% |
Remeasurement of deferred taxes under TCJA | (0.08) | ||
Deemed repatriation tax | (1.10%) | 3.60% | |
Domestic tax deductions and credits | (0.40%) | (0.40%) | (3.10%) |
Foreign Derived Intangible Income deduction | (1.10%) | (1.30%) | |
Release of unrecognized tax benefit | (6.00%) | ||
Other | 0.30% | (1.30%) | (1.80%) |
Effective tax rate | 22.40% | 19.00% | 24.10% |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 212 | $ 213 |
Accruals and reserves | 1,902 | 1,963 |
Other | 399 | 811 |
Total deferred tax assets | 2,513 | 2,987 |
Deferred tax liabilities: | ||
Property, plant, and equipment | 5,926 | 4,686 |
Other | 3 | 1 |
Total deferred tax liabilities | 5,929 | 4,687 |
Valuation Allowance | ||
Net deferred tax asset/(liability) | $ (3,416) | $ (1,700) |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits - January 1 | $ 1,037 | ||
Gross increases - tax positions in prior period | 120 | ||
Gross decreases - tax positions in prior period | (1,157) | ||
Unrecognized tax benefits - December 31 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAXES | |||
US corporate income tax rate | 21.00% | 21.00% | 35.00% |
Current federal deemed repatriation | $ (477) | $ 1,102 | |
Federal deemed repatriation liability | 625 | ||
Valuation allowance related to deferred tax asset on state net operating loss carryforward | 44 | ||
Accrued interest of unrecognized tax benefits | 1 | ||
Penalties of unrecognized tax benefits | 61 | ||
Gross decreases - tax positions in prior period | $ 1,157 | ||
Federal net operating loss carryforward | 0 | ||
State net operating loss carryforward | $ 0 | $ 834 |
SHAREHOLDERS EQUITY - Dividend
SHAREHOLDERS EQUITY - Dividend Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SHAREHOLDERS EQUITY | |||||||||||||||
Record Date | Dec. 9, 2019 | Sep. 9, 2019 | Jun. 10, 2019 | Mar. 18, 2019 | Dec. 3, 2018 | Sep. 10, 2018 | Jun. 11, 2018 | Mar. 19, 2018 | Dec. 4, 2017 | Sep. 11, 2017 | Jun. 13, 2017 | Mar. 27, 2017 | |||
Payment Date | Dec. 16, 2019 | Sep. 16, 2019 | Jun. 17, 2019 | Mar. 25, 2019 | Dec. 10, 2018 | Sep. 17, 2018 | Jun. 18, 2018 | Mar. 26, 2018 | Dec. 11, 2017 | Sep. 18, 2017 | Jun. 20, 2017 | Apr. 3, 2017 | |||
Dividend (per share) | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.72 | $ 0.72 | $ 0.72 |
Dividend paid, amount | $ 2,052 | $ 2,053 | $ 2,051 | $ 2,052 | $ 2,051 | $ 2,051 | $ 2,049 | $ 2,049 | $ 2,049 | $ 2,048 | $ 2,048 | $ 2,043 | $ 8,208 | $ 8,200 | $ 8,188 |
SHAREHOLDERS EQUITY - Narrative
SHAREHOLDERS EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
SHAREHOLDERS EQUITY | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Undesignated preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued | 0 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | $ 552 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EMPLOYEE BENEFIT PLANS | |||
Period of completion of services for qualification of defined contribution plan | 90 days | 90 days | 90 days |
Defined contribution plan, percentage of employer matching contribution | 50.00% | 50.00% | 50.00% |
Defined contribution plan, percentage of participant contributions | 5.00% | 5.00% | 5.00% |
Employee contributions vesting period | 5 years | 5 years | 5 years |
Defined contribution plan, employer contribution | $ 1,030 | $ 917 | $ 833 |
REVENUE AND LONG-LIVED ASSETS -
REVENUE AND LONG-LIVED ASSETS - Net Sales and Long Lived Assets by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 203,140 | $ 195,467 | $ 222,346 | $ 197,213 | $ 179,968 | $ 195,690 | $ 176,888 | $ 159,160 | $ 818,166 | $ 711,706 | $ 615,101 |
Long - Lived Assets | 103,994 | 94,469 | 103,994 | 94,469 | 89,247 | ||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 697,002 | 574,806 | 527,134 | ||||||||
Long - Lived Assets | 97,650 | 90,036 | 97,650 | 90,036 | 85,707 | ||||||
Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 121,164 | 136,900 | 87,967 | ||||||||
Long - Lived Assets | $ 6,344 | $ 4,433 | $ 6,344 | $ 4,433 | $ 3,540 |
REVENUE AND LONG-LIVED ASSETS_2
REVENUE AND LONG-LIVED ASSETS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE AND LONG-LIVED ASSETS | ||||
Contract liability balances related to extended service contracts | $ 331 | $ 324 | $ 331 | |
Increase in contract liabilities | $ 310 | $ 1,391 | ||
Settlement of contract liability | $ 361 | $ 1,214 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Net Sales | $ 203,140 | $ 195,467 | $ 222,346 | $ 197,213 | $ 179,968 | $ 195,690 | $ 176,888 | $ 159,160 | $ 818,166 | $ 711,706 | $ 615,101 |
Operating Income | 15,174 | 11,293 | 14,245 | 12,382 | 11,329 | 12,026 | 11,601 | 8,838 | |||
Net Income | $ 11,692 | $ 8,076 | $ 10,683 | $ 8,660 | $ 10,799 | $ 8,677 | $ 7,600 | $ 6,670 | $ 39,111 | $ 33,746 | $ 23,016 |
Basic Income Per Share (in dollars per share) | $ 1.03 | $ 0.71 | $ 0.94 | $ 0.76 | $ 0.95 | $ 0.76 | $ 0.67 | $ 0.59 | $ 3.43 | $ 2.96 | $ 2.02 |
Diluted Income Per Share (in dollars per share) | 1.03 | 0.71 | 0.94 | 0.76 | 0.95 | 0.76 | 0.67 | 0.59 | 3.43 | 2.96 | 2.02 |
Cash Dividends Declared Per Share (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.72 | $ 0.72 | $ 0.72 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 02, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 |
Subsequent Event [Line Items] | |||||||||||||
Dividends payable, payment date | Dec. 16, 2019 | Sep. 16, 2019 | Jun. 17, 2019 | Mar. 25, 2019 | Dec. 10, 2018 | Sep. 17, 2018 | Jun. 18, 2018 | Mar. 26, 2018 | Dec. 11, 2017 | Sep. 18, 2017 | Jun. 20, 2017 | Apr. 3, 2017 | |
Dividends payable, record date | Dec. 9, 2019 | Sep. 9, 2019 | Jun. 10, 2019 | Mar. 18, 2019 | Dec. 3, 2018 | Sep. 10, 2018 | Jun. 11, 2018 | Mar. 19, 2018 | Dec. 4, 2017 | Sep. 11, 2017 | Jun. 13, 2017 | Mar. 27, 2017 | |
Revolving Credit Facility | First Tennessee Bank National Association | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Outstanding borrowings credit facility | $ 4,998 | $ 15,000 | |||||||||||
Subsequent event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Dividends payable, declared date | Mar. 2, 2020 | ||||||||||||
Dividends payable, amount per share | $ 0.18 | ||||||||||||
Dividends payable, payment date | Mar. 23, 2020 | ||||||||||||
Dividends payable, record date | Mar. 16, 2020 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deduction from asset accounts: | |||
Balance at Beginning of Period | $ 1,112 | $ 1,038 | $ 1,004 |
Charged to Expense | 15 | 214 | 86 |
Accounts Written Off | (21) | (140) | (52) |
Balance at End of Period | $ 1,106 | $ 1,112 | $ 1,038 |