Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MILLER INDUSTRIES INC /TN/ | ||
Entity Central Index Key | 924,822 | ||
Trading Symbol | mlr | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Common Stock Shares Outstanding | 11,345,560 | ||
Entity Public Float | $ 152,423,865 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and temporary investments | $ 38,449 | $ 39,597 |
Accounts receivable, net of allowance for doubtful accounts of $1,864 and $1,850, at December 31, 2015 and 2014, respectively | 109,170 | 116,498 |
Inventories | 66,232 | 56,460 |
Prepaid expenses | 1,689 | 1,792 |
Current deferred income taxes | 3,725 | 4,083 |
Total current assets | 219,265 | 218,430 |
PROPERTY, PLANT, AND EQUIPMENT, net | 39,475 | 32,050 |
GOODWILL | 11,619 | 11,619 |
OTHER ASSETS | 496 | 256 |
TOTAL ASSETS | 270,855 | 262,355 |
CURRENT LIABILITIES: | ||
Accounts payable | 73,405 | 70,618 |
Accrued liabilities | 21,089 | 21,099 |
Total current liabilities | 94,494 | 91,717 |
DEFERRED INCOME TAX LIABILITIES | $ 2,499 | $ 2,184 |
COMMITMENTS AND CONTINGENCIES (Notes 3 and 5) | ||
SHAREHOLDERS' EQUITY: | ||
Preferred stock, $.01 par value; 5,000,000 shares authorized, none issued or outstanding | ||
Common stock, $.01 par value; 100,000,000 shares authorized, 11,341,150 and 11,302,530, outstanding at December 31, 2015 and 2014, respectively | $ 113 | $ 113 |
Additional paid-in capital | 150,305 | 149,917 |
Accumulated surplus | 28,545 | 19,822 |
Accumulated other comprehensive income (loss) | (5,101) | (1,398) |
Total shareholders' equity | 173,862 | 168,454 |
LIABILITIES AND SHAREHOLDERS' EQUITY TOTAL | $ 270,855 | $ 262,355 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,864 | $ 1,850 |
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 | 11,341,150 | 11,302,530 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
NET SALES | $ 540,966 | $ 492,776 | $ 404,170 |
COSTS OF OPERATIONS | 483,353 | 439,791 | 361,734 |
GROSS PROFIT | 57,613 | 52,985 | 42,436 |
OPERATING EXPENSES: | |||
Selling, general, and administrative expenses | 31,491 | 28,496 | 28,323 |
Interest expense, net | 919 | 554 | 369 |
Other expense (income) | 340 | 437 | (119) |
Total operating expenses | 32,750 | 29,487 | 28,573 |
INCOME BEFORE INCOME TAXES | 24,863 | 23,498 | 13,863 |
INCOME TAX PROVISION | 8,887 | 8,660 | 5,175 |
NET INCOME | 15,976 | 14,838 | 8,688 |
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 66 | 542 | |
NET INCOME ATTRIBUTABLE TO MILLER INDUSTRIES, INC. | $ 15,976 | $ 14,904 | $ 9,230 |
BASIC INCOME PER COMMON SHARE (In dollars per share) | $ 1.41 | $ 1.32 | $ 0.82 |
DILUTED INCOME PER COMMON SHARE (In dollars per share) | 1.41 | 1.31 | 0.82 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (In dollars per share) | $ 0.64 | $ 0.60 | $ 0.56 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (In shares) | 11,324 | 11,297 | 11,233 |
Diluted (In shares) | 11,360 | 11,354 | 11,324 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Other Comprehensive Income [Abstract] | |||
Net income | $ 15,976 | $ 14,838 | $ 8,688 |
Other comprehensive income: | |||
Foreign currency translation adjustment | (3,703) | (2,503) | 1,175 |
Derivative instrument and hedging activities | 126 | (216) | |
Reclassifications from accumulated other comprehensive income (loss) | 165 | (75) | |
Total other comprehensive income (loss) | (3,703) | (2,212) | 884 |
Comprehensive income | 12,273 | 12,626 | 9,572 |
Net loss attributable to noncontrolling interests | 66 | 542 | |
Comprehensive income attributable to Miller Industries, Inc. | $ 12,273 | $ 12,692 | $ 10,114 |
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 Miller Industries, Inc. Shareholders' Equity | Noncontrolling Interests | Total |
BALANCE at Dec. 31, 2012 | $ 112 | $ 148,688 | $ 8,760 | $ (70) | $ 157,490 | $ 157,490 | |
Components of comprehensive income: | |||||||
Net income | 9,230 | 9,230 | $ (542) | 8,688 | |||
Foreign currency translation adjustments | 1,175 | 1,175 | 1,175 | ||||
Derivative instrument and hedging activities | (291) | (291) | (291) | ||||
Total comprehensive income | 9,230 | 884 | 10,114 | (542) | 9,572 | ||
Capital Contribution from non controlling interest holder | 24 | 24 | |||||
Issuance of common stock to non-employee directors (4,620), (5,154) and (4,734) for the period of 2015, 2014 and 2013, respectively | 75 | 75 | 75 | ||||
Exercise of stock options (34,000), (31,697) and (102,314) for 2015, 2014 and 2013, respectively | 1 | 620 | 621 | 621 | |||
Excess tax effect for stock-based compensation | 225 | 225 | 225 | ||||
Dividends paid, $0.64, $0.60 and $0.56 per share for the period of 2015, 2014 and 2013 respectively | (6,294) | (6,294) | (6,294) | ||||
BALANCE at Dec. 31, 2013 | 113 | 149,608 | 11,696 | 814 | 162,231 | (518) | 161,713 |
Components of comprehensive income: | |||||||
Net income | 14,904 | 14,904 | (66) | 14,838 | |||
Foreign currency translation adjustments | (2,503) | (2,503) | (2,503) | ||||
Derivative instrument and hedging activities | 291 | 291 | 291 | ||||
Total comprehensive income | 14,904 | (2,212) | 12,692 | (66) | 12,626 | ||
Disposition of noncontrolling interest | $ 584 | 584 | |||||
Issuance of common stock to non-employee directors (4,620), (5,154) and (4,734) for the period of 2015, 2014 and 2013, respectively | 96 | 96 | 96 | ||||
Exercise of stock options (34,000), (31,697) and (102,314) for 2015, 2014 and 2013, respectively | 186 | 186 | 186 | ||||
Excess tax effect for stock-based compensation | 27 | 27 | 27 | ||||
Dividends paid, $0.64, $0.60 and $0.56 per share for the period of 2015, 2014 and 2013 respectively | (6,778) | (6,778) | (6,778) | ||||
BALANCE at Dec. 31, 2014 | 113 | 149,917 | 19,822 | (1,398) | 168,454 | 168,454 | |
Components of comprehensive income: | |||||||
Net income | 15,976 | 15,976 | 15,976 | ||||
Foreign currency translation adjustments | (3,703) | (3,703) | (3,703) | ||||
Total comprehensive income | 15,976 | (3,703) | 12,273 | 12,273 | |||
Issuance of common stock to non-employee directors (4,620), (5,154) and (4,734) for the period of 2015, 2014 and 2013, respectively | 96 | 96 | 96 | ||||
Exercise of stock options (34,000), (31,697) and (102,314) for 2015, 2014 and 2013, respectively | 186 | 186 | 186 | ||||
Excess tax effect for stock-based compensation | 106 | 106 | 106 | ||||
Dividends paid, $0.64, $0.60 and $0.56 per share for the period of 2015, 2014 and 2013 respectively | (7,253) | (7,253) | (7,253) | ||||
BALANCE at Dec. 31, 2015 | $ 113 | $ 150,305 | $ 28,545 | $ (5,101) | $ 173,862 | $ 173,862 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Stockholders' Equity [Abstract] | |||
Issuance of common stock to non-employee directors, shares | 4,620 | 5,154 | 4,734 |
Exercise of stock options, shares | 34,000 | 31,697 | 102,314 |
Dividends paid, per share (in dollars per share) | $ 0.64 | $ 0.60 | $ 0.56 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES: | |||
Net income | $ 15,976 | $ 14,838 | $ 8,688 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 4,317 | 4,015 | 3,763 |
Loss on the deconsolidation of subsidiary | 83 | ||
(Gain) Loss on disposals of equipment | 74 | (39) | (2) |
Deferred tax provision | 573 | 147 | (225) |
Provision for doubtful accounts | 282 | 243 | 211 |
Excess tax benefit from stock-based compensation | (106) | (27) | (225) |
Issuance of non-employee director shares | 96 | 96 | 75 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 5,736 | (36,366) | (21,993) |
Inventories | (11,015) | (3,284) | (8,506) |
Prepaid expenses | (31) | 151 | (173) |
Accounts payable | 3,819 | 24,662 | 16,164 |
Accrued liabilities | 338 | 5,394 | 3,415 |
Net cash flows from operating activities | 20,059 | 9,913 | 1,192 |
INVESTING ACTIVITIES: | |||
Purchases of property, plant, and equipment | (11,900) | (5,345) | (2,430) |
Proceeds from sale of equipment | 1 | 20 | 19 |
Payments received on notes receivables | 24 | 76 | |
Net cash flows from investing activities | (11,899) | (5,301) | (2,335) |
FINANCING ACTIVITIES: | |||
Payments of cash dividends | (7,253) | (6,778) | (6,294) |
Proceeds from exercise of stock options | 186 | 186 | 621 |
Excess tax benefit from stock-based compensation | 106 | 27 | 225 |
Net cash flows from financing activities | (6,961) | (6,565) | (5,448) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY INVESTMENTS | (2,347) | (1,314) | 864 |
NET CHANGE IN CASH AND TEMPORARY INVESTMENTS | (1,148) | (3,267) | (5,727) |
CASH AND TEMPORARY INVESTMENTS, beginning of year | 39,597 | 42,864 | 48,591 |
CASH AND TEMPORARY INVESTMENTS, end of year | 38,449 | 39,597 | 42,864 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash payments for interest | 1,432 | 1,015 | 912 |
Cash payments for income taxes, net of refunds | $ 8,566 | $ 6,454 | $ 2,419 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. ORGANIZATION AND NATURE OF OPERATIONS Miller Industries, Inc. and subsidiaries (the “Company”) is The World’s Largest Manufacturer of Towing and Recovery Equipment. ® ® ® ® ® ® ® TM TM ® TM |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with 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. We consolidated our majority-owned and controlled Delavan joint venture, and our joint venturer’s interests in the Delavan joint venture were reported as noncontrolling interests through March 31, 2014, the deconsolidation date. Losses before income taxes that are directly attributable to the Delavan joint venture were approximately $152 (including the loss on deconsolidation of the subsidiary) for the first quarter of 2014 and $1,300 for the year ended December 31, 2013. The consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st 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 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. Fair Value of Financial Instruments For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect our assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, we classify each fair value measurement as follows: Level 1—based upon quoted prices for identical Level 2—based upon quoted prices for similar Level 3—based upon one or more significant unobservable inputs The carrying values of cash and temporary investments, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of their fair values because of the short maturity of these financial instruments. The carrying values of long-term obligations are reasonable estimates of their fair values based on the rates available for obligations with similar terms and maturities. The fair value of derivative assets and liabilities are measured assuming that the unit of account is an individual derivative transaction and that each derivative could be sold or transferred on a stand-alone basis. We classify within Level 2 our forward foreign currency exchange contracts based upon quoted prices for similar instruments that are actively traded. For more information regarding derivatives, see Note 11, Derivative Financial Instruments Inventories Inventory costs include materials, labor and factory overhead. Inventories are stated at the lower of cost or market (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, 2015 and 2014 consisted of the following: 2015 2014 Chassis $ 8,048 $ 4,700 Raw materials 28,328 24,291 Work in process 10,850 10,477 Finished goods 19,006 16,992 $ 66,232 $ 56,460 Property, Plant, and Equipment Property, plant and equipment are recorded at cost. 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. Property, plant and equipment at December 31, 2015 and 2014 consisted of the following: 2015 2014 Land and improvements $ 5,812 $ 5,223 Buildings and improvements 42,230 34,478 Machinery and equipment 30,821 30,143 Furniture and fixtures 8,978 8,590 Software costs 10,066 8,921 97,907 87,355 Less accumulated depreciation (58,432 ) (55,305 ) $ 39,475 $ 32,050 The Company recognized $4,317, $4,014 and $3,757 in depreciation expense in 2015, 2014 and 2013, 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 36,000, 57,000, and 91,000 potential dilutive common shares in 2015, 2014 and 2013, respectively. For 2015, 2014 and 2013, 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. The Company reviews goodwill for impairment utilizing a qualitative assessment or a two-step process. If the qualitative analysis of goodwill is utilized and it is determined that fair value more likely than not exceeds the carrying value, no further testing is needed. If the two-step approach is chosen, first, the carrying value of the entity is compared to the fair value. If the fair value is less, a comparison of the carrying value of goodwill to the fair value of goodwill is performed to determine if a writedown is required. Patents, Trademarks and Other Purchased Product Rights The cost of acquired patents, trademarks and other purchased product rights is capitalized and amortized using the straight-line method over various periods not exceeding 20 years. Total accumulated amortization of these assets was $1,547 at December 31, 2015 and 2014. At December 31, 2015 and 2014, all intangible assets subject to amortization were fully amortized. As acquisitions and dispositions of intangible assets occur in the future, the amortization amounts may vary. Deferred Financing Costs All deferred financing costs are included in other assets and are amortized using the straight-line method over the terms of the respective obligations. Total accumulated amortization of deferred financing costs at December 31, 2015 and 2014 was $0 and $0, respectively. Amortization expense in 2015, 2014 and 2013 was $0, $2 and $6, respectively, and is included in interest expense in the accompanying consolidated statements of income. Deferred financing costs were fully amortized at December 31, 2015. Accrued Liabilities Accrued liabilities consisted of the following at December 31, 2015 and 2014: 2015 2014 Accrued wages, commissions, bonuses and benefits $ 6,482 $ 5,956 Accrued products warranty 3,140 2,622 Accrued income taxes 4,747 7,416 Other 6,720 5,105 $ 21,089 $ 21,099 Income Taxes 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 accounts for uncertain tax positions in accordance with FASB ASC Topic 740, Income Taxes Stock-Based Compensation Stock compensation expense was $0 for 2015, 2014 and 2013. No options were granted during 2015 or 2014. 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, 2015, the Company had no unrecognized compensation expense related to stock options. The Company issued approximately 34,000 and 32,000 shares of common stock during 2015 and 2014, respectively, from the exercise of stock options. 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 2015, 2014 and 2013, was $3,076, $1,958 and $1,086, respectively. The table below provides a summary of the warranty liability for December 31, 2015 and 2014: 2015 2014 Accrual at beginning of the year $ 2,622 $ 3,084 Provision 3,076 1,958 Settlement and Other (2,558 ) (2,420 ) Accrual at end of year $ 3,140 $ 2,622 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. Revenue Recognition Revenue is recorded by the Company when the risk of ownership for products has transferred to the independent distributors or other customers, which is generally upon shipment. From time to time, revenue is recognized under a bill and hold arrangement. Recognition of revenue on bill and hold arrangements occurs when risk of ownership has passed to the customer, a fixed written commitment has been provided by the customer, the goods are complete and ready for shipment, the goods are segregated from inventory, no performance obligation remains, and a schedule for delivery has been established. 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 $1,595, $1,899 and $1,304 for 2015, 2014 and 2013, 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 in our consolidated statements of income. Derivative Financial Instruments The Company periodically enters into certain forward foreign currency exchange contracts that are designed to mitigate foreign currency risk. Prior to November 2012, the Company had not instituted a formal foreign exchange policy. Any foreign currency exchange contracts entered into did not qualify for hedge accounting. Changes in fair value of these instruments were recognized each period in other income (expense) in our consolidated statements of income. In November 2012, the Company adopted a formal foreign exchange policy. Under this policy, at inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. For those foreign currency exchange contracts that qualify for hedge accounting treatment, changes in the fair value of such instruments are included in accumulated other comprehensive income (loss). The Company also assesses, both at inception and on an ongoing basis, whether the derivatives that are used in the hedging transaction are highly effective in offsetting changes in cash flows of the hedged items. For those foreign currency exchange contracts that do not qualify for hedge accounting treatment, changes in the fair value of such instruments are recognized each period in other income (expense) in our consolidated statements of income. Recent Accounting Pronouncements Recently Issued Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In July 2015, the FASB issued amendments to the Inventory topic of the Accounting Standards Codification to require inventory to be measured at the lower of cost and net realizable value. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory, there are no other substantive changes to the guidance on measurement of inventory. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In November 2015, the FASB amended the Income Taxes topic of the Accounting Standards Codification to simplify the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company will apply the guidance retrospectively. The Company does not expect these amendments to have a material effect on its consolidated financial statements. The FASB's new leases standard Accounting Standard Update (“ASU”) 2016-02 Leases (Topic 842) was issued on February 25, 2016 and is intended to improve financial reporting about leasing transactions. The standard affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. The standard will require organizations that lease assets referred to as “Lessees” to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. An organization is 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. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet the new standard will require both types of leases (i.e. operating and capital) to be recognized on the balance sheet. The FASB lessee accounting model will continue to account for both types of leases. The capital lease will be accounted for in substantially the same manner as capital leases are accounted for under existing GAAP. The operating lease will be accounted for in a manner similar to operating leases under existing GAAP, except that lessees will recognize a lease liability and a lease asset for all of those leases. The standard will be effective for financial statements issued for annual periods, and interim periods within these annual periods, beginning December 15, 2018, with early adoption permitted. See Note 5 for the Company’s current lease commitments. The Company is currently in the process of evaluating the impact that this new leasing standard will have on its financial statements. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation, with no impact on previously reported shareholders’ equity or net income. |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt, Unclassified [Abstract] | |
LONG-TERM OBLIGATIONS | 3. LONG-TERM OBLIGATIONS Long-Term Obligations Credit Facility In the absence of a default, all borrowings under the Credit Facility bear interest at the LIBOR Rate plus 1.50% 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 shall be paid quarterly. At December 31, 2015 and 2014, the Company had no outstanding borrowings under the Credit Facility. As of February 29, 2016, the Company had borrowed $10 million under the credit facility. Interest Rate Sensitivity |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | 4. STOCK-BASED COMPENSATION PLANS 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. Options vest ratably over a two to four-year period beginning on the grant date and expire ten years from the date of grant. Shares available for granting options at December 31, 2015, 2014 and 2013 were 0, 600,000 and 600,000, respectively. Equity incentive awards were previously granted under the Company’s 2005 Equity Incentive Plan; however this plan expired on April 27, 2015. A summary of the activity of stock options for the years ended December 31, 2015, 2014 and 2013, is presented below (shares in thousands): 2015 2014 2013 Shares Weighted Shares Weighted Shares Weighted Outstanding at Beginning of Period 72 $ 5.49 104 $ 5.60 206 $ 5.83 Granted — — — — — — Exercised (34 ) 5.49 (32 ) 5.86 (102 ) 6.07 Forfeited and cancelled — — — — — — Outstanding at End of Period 38 $ 5.49 72 $ 5.49 104 $ 5.60 Options exercisable at year end 38 $ 5.49 72 $ 5.49 104 $ 5.60 A summary of options outstanding under the Company’s stock-based compensation plans at December 31, 2015 is presented below (in thousands): Exercise Price Shares Weighted Weighted Options Weighted Aggregate Value $ 5.49 38 $ 5.49 2.85 38 $ 5.49 $ 619 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 5. COMMITMENTS AND CONTINGENCIES Commitments The Company has entered into various operating leases for buildings and for office and computer equipment. Rental expense under these leases was $1,533, $1,230 and $1,126 in 2015, 2014 and 2013, respectively. At December 31, 2015 future minimum lease payments under non-cancelable operating leases for the next five years and in the aggregate are as follows: 2016 $ 504 2017 329 2018 169 2019 85 2020 84 Thereafter 382 $ 1,553 The Company has also entered into arrangements with third-party lenders where it has agreed, in the event of a default by the independent distributor customer, 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 Company’s risk under these arrangements is mitigated by the value of the products repurchased as part of the transaction. The maximum amount of collateral the Company could be required to purchase was approximately $38,334 and $31,458 at December 31, 2015 and 2014, respectively. No repurchases of products were required during 2015 or 2014. The Company is in the process of consolidating and expanding its Pennsylvania manufacturing operations to increase capacity and improve operating efficiencies. The plan includes consolidating primary manufacturing operations at one location while plans for the remaining plant location continue to be evaluated. The current estimated costs of this project are approximately $22,700, including machinery and equipment, buildings and improvements and land. Approximately $9,011 of these costs were incurred as of December 31, 2015 and are included in property, plant and equipment, net on the consolidated balance sheets. The remainder of these costs is expected to be incurred during 2016. The timing and costs of the project are subject to change. We do not anticipate any employee severance costs or any material relocation expense associated with the consolidation since the two existing facilities are very close to each other. The Company also recently began several capital projects involving machinery and equipment and building improvements at its Ooltewah, Tennessee and Greeneville, Tennessee facilities that it estimates will cost in total approximately $15,000 through the end of 2016. Approximately $100 of these costs were incurred as of December 31, 2015. Contingencies 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, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 6. INCOME TAXES 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. The provision for income taxes on income consisted of the following in 2015, 2014 and 2013: 2015 2014 2013 Current: Federal $ 5,778 $ 5,953 $ 3,960 State 913 707 415 Foreign 1,623 1,853 1,025 8,314 8,513 5,400 Deferred: Federal 548 283 (238 ) State 47 32 (28 ) Foreign (22 ) (168 ) 41 573 147 (225 ) $ 8,887 $ 8,660 $ 5,175 The principal differences between the federal statutory tax rate and the income tax expense in 2015, 2014 and 2013: 2015 2014 2013 Federal statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 3.0 % 3.7 % 3.7 % Excess of (decreases in) foreign tax over US tax on foreign income (1.1 )% 0.1 % 0.3 % Domestic Tax Credits (1.2 )% (1.4 )% (1.5 )% Other 0.0 % (0.5 )% (0.2 )% Effective tax rate 35.7 % 36.9 % 37.3 % 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, 2015 and 2014 are as follows: 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 78 $ 94 Accruals and reserves 3,468 3,767 Other 179 222 Total deferred tax assets 3,725 4,083 Deferred tax liabilities: Property, plant, and equipment 2,499 2,184 Total deferred tax liabilities 2,499 2,184 Net deferred tax asset $ 1,226 $ 1,899 As of December 31, 2015, the Company has no federal or state net operating loss carryforwards. At December 31, 2015 and 2014, the Company had no unrecognized tax positions. The Company does not expect its unrecognized tax positions to change significantly in the next twelve months. If unrecognized tax positions existed, the interest and penalties related to the unrecognized tax positions would be recorded as income tax expense in the consolidated statements of income. The Company is subject to United States federal income taxes, as well as income taxes in various states and foreign jurisdictions. The Company’s tax years 2012 through 2014 remain open to examination for U.S. Federal and state income taxes. |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS EQUITY | 7. SHAREHOLDERS EQUITY Preferred Stock The Company has authorized 5,000,000 shares of undesignated preferred stock 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 have been issued. Dividends The Company has paid consecutive quarterly cash dividends since May 2011. Dividend payments made for 2015, 2014 and 2013 were as follows: Payment Record Date Payment Date Dividend Amount Q1 2013 March 18, 2013 March 25, 2013 $ 0.14 $ 1,569 Q2 2013 June 17, 2013 June 24, 2013 0.14 1,573 Q3 2013 September 16, 2013 September 23, 2013 0.14 1,575 Q4 2013 December 9, 2013 December 16, 2013 0.14 1,577 Total for 2013 $ 0.56 $ 6,294 Q1 2014 March 17, 2014 March 24, 2014 $ 0.15 $ 1,692 Q2 2014 June 16, 2014 June 23, 2014 0.15 1,695 Q3 2014 September 15, 2014 September 22, 2014 0.15 1,696 Q4 2014 December 8, 2014 December 15, 2014 0.15 1,695 Total for 2014 $ 0.60 $ 6,778 Q1 2015 March 20, 2015 March 23, 2015 $ 0.16 $ 1,809 Q2 2015 June 15, 2015 June 19, 2015 0.16 1,814 Q3 2015 September 14, 2015 September 21, 2015 0.16 1,815 Q4 2015 December 7, 2015 December 11, 2015 0.16 1,815 Total for 2015 $ 0.64 $ 7,253 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | 8. EMPLOYEE BENEFIT PLANS 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 2015, 2014 and 2013, 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 $619, $522, and $472 in 2015, 2014 and 2013, respectively. |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION | 9. GEOGRAPHIC INFORMATION Net sales and long-lived assets (property, plant and equipment and goodwill and intangible assets) by region were as follows (net sales are attributed to regions based on the locations of customers): 2015 2014 2013 Net Sales Long- Net Sales Long- Net Sales Long- North America $ 467,161 $ 48,589 $ 399,434 $ 41,176 $ 335,969 $ 39,832 Foreign 73,805 2,505 93,342 2,493 68,201 2,645 $ 540,966 $ 51,094 $ 492,776 $ 43,669 $ 404,170 $ 42,477 |
CUSTOMER INFORMATION
CUSTOMER INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
CUSTOMER INFORMATION | 10. CUSTOMER INFORMATION No single customer accounted for 10% or more of consolidated net sales for 2015, 2014 or 2013. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 11. DERIVATIVE FINANCIAL INSTRUMENTS The Company periodically enters into foreign currency exchange contracts designed to mitigate the impact of foreign currency risk. Prior to November 2012, the Company had not instituted a formal foreign exchange policy. All contracts entered into prior to this date are accounted for as undesignated hedges and, therefore changes in fair value are recognized each period in other income (expense) in our consolidated statements of income. The fair value of the contracts is presented in accounts receivable in our consolidated balance sheets. In November 2012, the Company adopted a formal foreign currency exchange policy. Under this policy, for those foreign currency exchange contracts that qualify for hedge accounting treatment, changes in the fair value of such instruments are included in accumulated other comprehensive income (loss). The Company also assesses, both at inception and on an ongoing basis, whether the derivatives that are used in the hedging transaction are highly effective in offsetting changes in cash flows of the hedged items. For those foreign currency exchange contracts that do not qualify for hedge accounting treatment, changes in the fair value of such instruments are recognized each period in other income (expense) in our consolidated statements of income. In December 2012, the Company entered into foreign exchange currency contracts with notional values of $10,637 at December 31, 2013 and $12,950 at December 31, 2012 maturing from September 2013 to October 2014 that were considered cash flow hedges. Changes in fair value of such cash flow hedges were recorded in accumulated other comprehensive income (loss) to the extent that the hedges are considered effective. At December 31, 2015 and 2014, the net fair values of foreign currency exchange contracts were $0. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following is a summary of the unaudited quarterly financial information for the years ended December 31, 2015 and 2014: Net Sales Operating Net Basic Diluted Cash 2015 First Quarter $ 126,788 $ 4,512 $ 3,064 $ 0.27 $ 0.27 $ 0.16 Second Quarter 151,537 9,894 5,866 0.52 0.52 0.16 Third Quarter 126,205 5,271 3,168 0.28 0.28 0.16 Fourth Quarter 136,436 6,445 3,878 0.34 0.34 0.16 Total $ 540,966 $ 26,122 $ 15,976 $ 1.41 $ 1.41 $ 0.64 2014 First Quarter $ 104,168 $ 3,772 $ 2,366 $ 0.21 $ 0.20 $ 0.15 Second Quarter 122,432 5,547 3,387 0.30 0.30 0.15 Third Quarter 118,398 5,736 3,494 0.31 0.31 0.15 Fourth Quarter 147,778 9,434 5,657 0.50 0.50 0.15 Total $ 492,776 $ 24,489 $ 14,904 $ 1.32 $ 1.31 $ 0.60 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS On March 7, 2016, the Company's board of directors declared a quarterly cash dividend of $0.17 per share. The dividend is payable March 28, 2016 to shareholders of record as of March 21, 2016. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II –VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Charged to Accounts Balance at Year ended December 31, 2013 Deduction from asset accounts: Allowance for doubtful accounts $ 1,614 211 (111 ) $ 1,714 Year ended December 31, 2014 Deduction from asset accounts: Allowance for doubtful accounts $ 1,714 243 (107 ) $ 1,850 Year ended December 31, 2015 Deduction from asset accounts: Allowance for doubtful accounts $ 1,850 282 (268 ) $ 1,864 |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
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 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. We consolidated our majority-owned and controlled Delavan joint venture, and our joint venturer’s interests in the Delavan joint venture were reported as noncontrolling interests through March 31, 2014, the deconsolidation date. Losses before income taxes that are directly attributable to the Delavan joint venture were approximately $152 (including the loss on deconsolidation of the subsidiary) for the first quarter of 2014 and $1,300 for the year ended December 31, 2013. The consolidated financial statements include accounts of certain subsidiaries whose fiscal closing dates differ from December 31 st |
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 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. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect our assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, we classify each fair value measurement as follows: Level 1—based upon quoted prices for identical Level 2—based upon quoted prices for similar Level 3—based upon one or more significant unobservable inputs The carrying values of cash and temporary investments, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of their fair values because of the short maturity of these financial instruments. The carrying values of long-term obligations are reasonable estimates of their fair values based on the rates available for obligations with similar terms and maturities. The fair value of derivative assets and liabilities are measured assuming that the unit of account is an individual derivative transaction and that each derivative could be sold or transferred on a stand-alone basis. We classify within Level 2 our forward foreign currency exchange contracts based upon quoted prices for similar instruments that are actively traded. For more information regarding derivatives, see Note 11, Derivative Financial Instruments |
Inventories | Inventories Inventory costs include materials, labor and factory overhead. Inventories are stated at the lower of cost or market (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, 2015 and 2014 consisted of the following: 2015 2014 Chassis $ 8,048 $ 4,700 Raw materials 28,328 24,291 Work in process 10,850 10,477 Finished goods 19,006 16,992 $ 66,232 $ 56,460 |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant and equipment are recorded at cost. 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. Property, plant and equipment at December 31, 2015 and 2014 consisted of the following: 2015 2014 Land and improvements $ 5,812 $ 5,223 Buildings and improvements 42,230 34,478 Machinery and equipment 30,821 30,143 Furniture and fixtures 8,978 8,590 Software costs 10,066 8,921 97,907 87,355 Less accumulated depreciation (58,432 ) (55,305 ) $ 39,475 $ 32,050 The Company recognized $4,317, $4,014 and $3,757 in depreciation expense in 2015, 2014 and 2013, 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 36,000, 57,000, and 91,000 potential dilutive common shares in 2015, 2014 and 2013, respectively. For 2015, 2014 and 2013, 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. The Company reviews goodwill for impairment utilizing a qualitative assessment or a two-step process. If the qualitative analysis of goodwill is utilized and it is determined that fair value more likely than not exceeds the carrying value, no further testing is needed. If the two-step approach is chosen, first, the carrying value of the entity is compared to the fair value. If the fair value is less, a comparison of the carrying value of goodwill to the fair value of goodwill is performed to determine if a writedown is required. |
Patents, Trademarks and Other Purchased Product Rights | Patents, Trademarks and Other Purchased Product Rights The cost of acquired patents, trademarks and other purchased product rights is capitalized and amortized using the straight-line method over various periods not exceeding 20 years. Total accumulated amortization of these assets was $1,547 at December 31, 2015 and 2014. At December 31, 2015 and 2014, all intangible assets subject to amortization were fully amortized. As acquisitions and dispositions of intangible assets occur in the future, the amortization amounts may vary. |
Deferred Financing Costs | Deferred Financing Costs All deferred financing costs are included in other assets and are amortized using the straight-line method over the terms of the respective obligations. Total accumulated amortization of deferred financing costs at December 31, 2015 and 2014 was $0 and $0, respectively. Amortization expense in 2015, 2014 and 2013 was $0, $2 and $6, respectively, and is included in interest expense in the accompanying consolidated statements of income. Deferred financing costs were fully amortized at December 31, 2015. |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following at December 31, 2015 and 2014: 2015 2014 Accrued wages, commissions, bonuses and benefits $ 6,482 $ 5,956 Accrued products warranty 3,140 2,622 Accrued income taxes 4,747 7,416 Other 6,720 5,105 $ 21,089 $ 21,099 |
Income Taxes | Income Taxes 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 accounts for uncertain tax positions in accordance with FASB ASC Topic 740, Income Taxes |
Stock-Based Compensation | Stock-Based Compensation Stock compensation expense was $0 for 2015, 2014 and 2013. No options were granted during 2015 or 2014. 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, 2015, the Company had no unrecognized compensation expense related to stock options. The Company issued approximately 34,000 and 32,000 shares of common stock during 2015 and 2014, respectively, from the exercise of stock options. |
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 2015, 2014 and 2013, was $3,076, $1,958 and $1,086, respectively. The table below provides a summary of the warranty liability for December 31, 2015 and 2014: 2015 2014 Accrual at beginning of the year $ 2,622 $ 3,084 Provision 3,076 1,958 Settlement and Other (2,558 ) (2,420 ) Accrual at end of year $ 3,140 $ 2,622 |
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. |
Revenue Recognition | Revenue Recognition Revenue is recorded by the Company when the risk of ownership for products has transferred to the independent distributors or other customers, which is generally upon shipment. From time to time, revenue is recognized under a bill and hold arrangement. Recognition of revenue on bill and hold arrangements occurs when risk of ownership has passed to the customer, a fixed written commitment has been provided by the customer, the goods are complete and ready for shipment, the goods are segregated from inventory, no performance obligation remains, and a schedule for delivery has been established. |
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 $1,595, $1,899 and $1,304 for 2015, 2014 and 2013, 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 in our consolidated statements of income. |
Derivative Financial Instruments | Derivative Financial Instruments The Company periodically enters into certain forward foreign currency exchange contracts that are designed to mitigate foreign currency risk. Prior to November 2012, the Company had not instituted a formal foreign exchange policy. Any foreign currency exchange contracts entered into did not qualify for hedge accounting. Changes in fair value of these instruments were recognized each period in other income (expense) in our consolidated statements of income. In November 2012, the Company adopted a formal foreign exchange policy. Under this policy, at inception of each hedge relationship, the Company documents its risk management objectives, procedures and accounting treatment. For those foreign currency exchange contracts that qualify for hedge accounting treatment, changes in the fair value of such instruments are included in accumulated other comprehensive income (loss). The Company also assesses, both at inception and on an ongoing basis, whether the derivatives that are used in the hedging transaction are highly effective in offsetting changes in cash flows of the hedged items. For those foreign currency exchange contracts that do not qualify for hedge accounting treatment, changes in the fair value of such instruments are recognized each period in other income (expense) in our consolidated statements of income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In July 2015, the FASB issued amendments to the Inventory topic of the Accounting Standards Codification to require inventory to be measured at the lower of cost and net realizable value. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory, there are no other substantive changes to the guidance on measurement of inventory. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In November 2015, the FASB amended the Income Taxes topic of the Accounting Standards Codification to simplify the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company will apply the guidance retrospectively. The Company does not expect these amendments to have a material effect on its consolidated financial statements. The FASB's new leases standard Accounting Standard Update (“ASU”) 2016-02 Leases (Topic 842) was issued on February 25, 2016 and is intended to improve financial reporting about leasing transactions. The standard affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. The standard will require organizations that lease assets referred to as “Lessees” to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. An organization is 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. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet the new standard will require both types of leases (i.e. operating and capital) to be recognized on the balance sheet. The FASB lessee accounting model will continue to account for both types of leases. The capital lease will be accounted for in substantially the same manner as capital leases are accounted for under existing GAAP. The operating lease will be accounted for in a manner similar to operating leases under existing GAAP, except that lessees will recognize a lease liability and a lease asset for all of those leases. The standard will be effective for financial statements issued for annual periods, and interim periods within these annual periods, beginning December 15, 2018, with early adoption permitted. See Note 5 for the Company’s current lease commitments. The Company is currently in the process of evaluating the impact that this new leasing standard will have on its financial statements. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation, with no impact on previously reported shareholders’ equity or net income. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of inventories, net of reserves | 2015 2014 Chassis $ 8,048 $ 4,700 Raw materials 28,328 24,291 Work in process 10,850 10,477 Finished goods 19,006 16,992 $ 66,232 $ 56,460 |
Schedule of property, plant and equipment | 2015 2014 Land and improvements $ 5,812 $ 5,223 Buildings and improvements 42,230 34,478 Machinery and equipment 30,821 30,143 Furniture and fixtures 8,978 8,590 Software costs 10,066 8,921 97,907 87,355 Less accumulated depreciation (58,432 ) (55,305 ) $ 39,475 $ 32,050 |
Schedule of accrued liabilities | 2015 2014 Accrued wages, commissions, bonuses and benefits $ 6,482 $ 5,956 Accrued products warranty 3,140 2,622 Accrued income taxes 4,747 7,416 Other 6,720 5,105 $ 21,089 $ 21,099 |
Schedule of product warranty liability | 2015 2014 Accrual at beginning of the year $ 2,622 $ 3,084 Provision 3,076 1,958 Settlement and Other (2,558 ) (2,420 ) Accrual at end of year $ 3,140 $ 2,622 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of stock options, activity | 2015 2014 2013 Shares Weighted Shares Weighted Shares Weighted Outstanding at Beginning of Period 72 $ 5.49 104 $ 5.60 206 $ 5.83 Granted — — — — — — Exercised (34 ) 5.49 (32 ) 5.86 (102 ) 6.07 Forfeited and cancelled — — — — — — Outstanding at End of Period 38 $ 5.49 72 $ 5.49 104 $ 5.60 Options exercisable at year end 38 $ 5.49 72 $ 5.49 104 $ 5.60 |
Schedule of stock-based compensation plans | Exercise Price Shares Weighted Weighted Options Weighted Aggregate Value $ 5.49 38 $ 5.49 2.85 38 $ 5.49 $ 619 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under non-cancelable operating lease | 2016 $ 504 2017 329 2018 169 2019 85 2020 84 Thereafter 382 $ 1,553 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | 2015 2014 2013 Current: Federal $ 5,778 $ 5,953 $ 3,960 State 913 707 415 Foreign 1,623 1,853 1,025 8,314 8,513 5,400 Deferred: Federal 548 283 (238 ) State 47 32 (28 ) Foreign (22 ) (168 ) 41 573 147 (225 ) $ 8,887 $ 8,660 $ 5,175 |
Schedule of effective income tax rate reconciliation | 2015 2014 2013 Federal statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 3.0 % 3.7 % 3.7 % Excess of (decreases in) foreign tax over US tax on foreign income (1.1 )% 0.1 % 0.3 % Domestic Tax Credits (1.2 )% (1.4 )% (1.5 )% Other 0.0 % (0.5 )% (0.2 )% Effective tax rate 35.7 % 36.9 % 37.3 % |
Schedule of deferred income tax assets and liabilities | 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 78 $ 94 Accruals and reserves 3,468 3,767 Other 179 222 Total deferred tax assets 3,725 4,083 Deferred tax liabilities: Property, plant, and equipment 2,499 2,184 Total deferred tax liabilities 2,499 2,184 Net deferred tax asset $ 1,226 $ 1,899 |
SHAREHOLDERS EQUITY (Tables)
SHAREHOLDERS EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of dividends payments | Payment Record Date Payment Date Dividend Amount Q1 2013 March 18, 2013 March 25, 2013 $ 0.14 $ 1,569 Q2 2013 June 17, 2013 June 24, 2013 0.14 1,573 Q3 2013 September 16, 2013 September 23, 2013 0.14 1,575 Q4 2013 December 9, 2013 December 16, 2013 0.14 1,577 Total for 2013 $ 0.56 $ 6,294 Q1 2014 March 17, 2014 March 24, 2014 $ 0.15 $ 1,692 Q2 2014 June 16, 2014 June 23, 2014 0.15 1,695 Q3 2014 September 15, 2014 September 22, 2014 0.15 1,696 Q4 2014 December 8, 2014 December 15, 2014 0.15 1,695 Total for 2014 $ 0.60 $ 6,778 Q1 2015 March 20, 2015 March 23, 2015 $ 0.16 $ 1,809 Q2 2015 June 15, 2015 June 19, 2015 0.16 1,814 Q3 2015 September 14, 2015 September 21, 2015 0.16 1,815 Q4 2015 December 7, 2015 December 11, 2015 0.16 1,815 Total for 2015 $ 0.64 $ 7,253 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of net sales and long-lived assets by region | 2015 2014 2013 Net Sales Long- Net Sales Long- Net Sales Long- North America $ 467,161 $ 48,589 $ 399,434 $ 41,176 $ 335,969 $ 39,832 Foreign 73,805 2,505 93,342 2,493 68,201 2,645 $ 540,966 $ 51,094 $ 492,776 $ 43,669 $ 404,170 $ 42,477 |
QUARTERLY FINANCIAL INFORMATI30
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Net Sales Operating Net Basic Diluted Cash 2015 First Quarter $ 126,788 $ 4,512 $ 3,064 $ 0.27 $ 0.27 $ 0.16 Second Quarter 151,537 9,894 5,866 0.52 0.52 0.16 Third Quarter 126,205 5,271 3,168 0.28 0.28 0.16 Fourth Quarter 136,436 6,445 3,878 0.34 0.34 0.16 Total $ 540,966 $ 26,122 $ 15,976 $ 1.41 $ 1.41 $ 0.64 2014 First Quarter $ 104,168 $ 3,772 $ 2,366 $ 0.21 $ 0.20 $ 0.15 Second Quarter 122,432 5,547 3,387 0.30 0.30 0.15 Third Quarter 118,398 5,736 3,494 0.31 0.31 0.15 Fourth Quarter 147,778 9,434 5,657 0.50 0.50 0.15 Total $ 492,776 $ 24,489 $ 14,904 $ 1.32 $ 1.31 $ 0.60 |
ORGANIZATION AND NATURE OF OP31
ORGANIZATION AND NATURE OF OPERATIONS (Detail Textuals) | 12 Months Ended |
Dec. 31, 2015Distributor | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Number of independent distributors | 80 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Chassis | $ 8,048 | $ 4,700 |
Raw materials | 28,328 | 24,291 |
Work in process | 10,850 | 10,477 |
Finished goods | 19,006 | 16,992 |
Inventories | $ 66,232 | $ 56,460 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant, and Equipment (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 97,907 | $ 87,355 |
Less accumulated depreciation | (58,432) | (55,305) |
Property, plant and equipment, net | 39,475 | 32,050 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,812 | 5,223 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 42,230 | 34,478 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 30,821 | 30,143 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 8,978 | 8,590 |
Software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,066 | $ 8,921 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accrued Liabilities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Accrued wages, commissions, bonuses and benefits | $ 6,482 | $ 5,956 |
Accrued products warranty | 3,140 | 2,622 |
Accrued income taxes | 4,747 | 7,416 |
Other | 6,720 | 5,105 |
Accrued liabilities | $ 21,089 | $ 21,099 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Product Warranty (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Accrual at beginning of the year | $ 2,622 | $ 3,084 |
Provision | 3,076 | 1,958 |
Settlement and Other | (2,558) | (2,420) |
Accrual at end of year | $ 3,140 | $ 2,622 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Line Items] | ||||
Losses before income taxes | $ 24,863 | $ 23,498 | $ 13,863 | |
Delavan joint venture | ||||
Accounting Policies [Line Items] | ||||
Losses before income taxes | $ 152 | $ 1,300 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Method used for calculating depreciation | straight-line method | ||
Method used for amortization of intangible assets | straight-line basis | ||
Depreciation expense | $ 4,317 | $ 4,014 | $ 3,757 |
Amortization period for intangible assets | 5 years | ||
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 20 to 30 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 to 10 years | ||
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 to 10 years | ||
Software costs | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 to 10 years |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Method used for amortization of intangible assets | straight-line basis | |
Amortization period for intangible assets | 5 years | |
Patents, Trademarks and Other Purchased Product Rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Method used for amortization of intangible assets | straight-line method | |
Amortization period for intangible assets | 20 years | |
Accumulated amortization of patents, trademarks and other purchased product rights | $ 1,547 | $ 1,547 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Outstanding stock options included in the calculation of diluted EPS | 36,000 | 57,000 | 91,000 |
Total accumulated amortization of deferred financing costs | $ 0 | $ 0 | |
Amortization expense of deferred financing costs | 0 | 2 | $ 6 |
Stock compensation expense | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common stock issued from exercise of stock options | 34,000 | 31,697 | 102,314 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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 | ||
Number of common stock issued from exercise of stock options | 34 | 32 |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Term of product warranty | 1 year | ||
Product warranty expense | $ 3,076 | $ 1,958 | $ 1,086 |
Research and development costs | $ 1,595 | $ 1,899 | $ 1,304 |
LONG-TERM OBLIGATIONS (Detail T
LONG-TERM OBLIGATIONS (Detail Textuals) - First Tennessee Bank National Association - Revolving Credit Facility - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 11, 2015 | Dec. 21, 2011 | Apr. 06, 2010 | |
Line of Credit Facility [Line Items] | |||||
Revolving credit facility | $ 30 | $ 25 | $ 20 | ||
Description of reference rate basis | LIBOR Market Index Rate plus | ||||
Variable interest rate in addition to reference rate | 1.50% | ||||
Interest rate | 1.93% | ||||
Subsequent Event | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding borrowings credit facility | $ 10 | ||||
Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Non-usage fee for current loan agreement in annual amount percentage | 0.15% | ||||
Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Non-usage fee for current loan agreement in annual amount percentage | 0.35% |
STOCK-BASED COMPENSATION PLAN43
STOCK-BASED COMPENSATION PLANS - Summary of activity of stock options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares Under Option | |||
Exercised | (34,000) | (31,697) | (102,314) |
Stock Options | |||
Shares Under Option | |||
Outstanding at Beginning of Period | 72 | 104 | 206 |
Granted | |||
Exercised | (34) | (32) | |
Forfeited and cancelled | |||
Outstanding at End of Period | 38 | 72 | 104 |
Options exercisable at year end | 38 | 72 | 104 |
Weighted Average Exercise Price | |||
Outstanding at Beginning of Period | $ 5.49 | $ 5.60 | $ 5.83 |
Granted | |||
Exercised | $ 5.49 | $ 5.86 | $ 6.07 |
Forfeited and cancelled | |||
Outstanding at End of Period | $ 5.49 | $ 5.49 | $ 5.60 |
Options exercisable at year end | $ 5.49 | $ 5.49 | $ 5.60 |
STOCK-BASED COMPENSATION PLAN44
STOCK-BASED COMPENSATION PLANS - Summary of options outstanding (Details 1) - Exercise Price $5.49 - Stock Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price | $ 5.49 |
Shares Under Option | shares | 38 |
Weighted Average Exercise Price of Options Outstanding | $ 5.49 |
Weighted Average Remaining Life | 2 years 10 months 6 days |
Options Exercisable | shares | 38 |
Weighted Average Exercise Price of Shares Exercisable | $ 5.49 |
Aggregate Intrinsic Value | $ | $ 619 |
STOCK-BASED COMPENSATION PLAN45
STOCK-BASED COMPENSATION PLANS (Detail Textuals) - Stock Options - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period of options from date of grant | 10 years | ||
Number of shares available for granting options | 0 | 600,000 | 600,000 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of options | 2 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of options | 4 years |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Future minimum lease payments under non-cancelable operating leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 504 |
2,017 | 329 |
2,018 | 169 |
2,019 | 85 |
2,020 | 84 |
Thereafter | 382 |
Total operating leases, future minimum payments due | $ 1,553 |
COMMITMENTS AND CONTINGENCIES47
COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense for operating leases | $ 1,533 | $ 1,230 | $ 1,126 |
Maximum repurchase collateral amount | 38,334 | $ 31,458 | |
Commitments And Contingencies [Line Items] | |||
Estimated costs of project | 22,700 | ||
Capital cost incurred | 9,011 | ||
Ooltewah, Tennessee and Greeneville, Tennessee | |||
Commitments And Contingencies [Line Items] | |||
Estimated costs of project | 15,000 | ||
Capital cost incurred | $ 100 |
INCOME TAXES - Provision for in
INCOME TAXES - Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 5,778 | $ 5,953 | $ 3,960 |
State | 913 | 707 | 415 |
Foreign | 1,623 | 1,853 | 1,025 |
Current income tax expense | 8,314 | 8,513 | 5,400 |
Deferred: | |||
Federal | 548 | 283 | (238) |
State | 47 | 32 | (28) |
Foreign | (22) | (168) | 41 |
Deferred income tax expense | 573 | 147 | (225) |
Income tax expense | $ 8,887 | $ 8,660 | $ 5,175 |
INCOME TAXES - Principal differ
INCOME TAXES - Principal differences between federal statutory tax rate and income tax expense (Details 1) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal tax benefit | 3.00% | 3.70% | 3.70% |
Excess of (decreases in) foreign tax over US tax on foreign income | (1.10%) | 0.10% | 0.30% |
Domestic Tax Credits | (1.20%) | (1.40%) | (1.50%) |
Other | (0.00%) | (0.50%) | (0.20%) |
Effective tax rate | 35.70% | 36.90% | 37.30% |
INCOME TAXES - Deferred income
INCOME TAXES - Deferred income tax assets and liabilities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 78 | $ 94 |
Accruals and reserves | 3,468 | 3,767 |
Other | 179 | 222 |
Total deferred tax assets | 3,725 | 4,083 |
Deferred tax liabilities: | ||
Property, plant, and equipment | 2,499 | 2,184 |
Total deferred tax liabilities | 2,499 | 2,184 |
Net deferred tax asset | $ 1,226 | $ 1,899 |
SHAREHOLDERS EQUITY - Summary
SHAREHOLDERS EQUITY - Summary of Dividend payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||||||||||||||
Record Date | Dec. 7, 2015 | Sep. 14, 2015 | Jun. 15, 2015 | Mar. 20, 2015 | Dec. 8, 2014 | Sep. 15, 2014 | Jun. 16, 2014 | Mar. 17, 2014 | Dec. 9, 2013 | Sep. 16, 2013 | Jun. 17, 2013 | Mar. 18, 2013 | |||
Payment Date | Dec. 11, 2015 | Sep. 21, 2015 | Jun. 19, 2015 | Mar. 23, 2015 | Dec. 15, 2014 | Sep. 22, 2014 | Jun. 23, 2014 | Mar. 24, 2014 | Dec. 16, 2013 | Sep. 23, 2013 | Jun. 24, 2013 | Mar. 25, 2013 | |||
Dividend (per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.64 | $ 0.60 | $ 0.56 |
Dividend paid, amount | $ 1,815 | $ 1,815 | $ 1,814 | $ 1,809 | $ 1,695 | $ 1,696 | $ 1,695 | $ 1,692 | $ 1,577 | $ 1,575 | $ 1,573 | $ 1,569 | $ 7,253 | $ 6,778 | $ 6,294 |
SHAREHOLDERS EQUITY (Detail Tex
SHAREHOLDERS EQUITY (Detail Textuals) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders' Equity Note [Abstract] | ||
Undesignated preferred stock, shares authorized | 5,000,000 | 5,000,000 |
EMPLOYEE BENEFIT PLANS (Detail
EMPLOYEE BENEFIT PLANS (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Period of completion of services for qualification of defined contribution plan | 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 | five years | five years | five years |
Defined contribution plan, employer contribution | $ 619 | $ 522 | $ 472 |
GEOGRAPHIC INFORMATION - Net Sa
GEOGRAPHIC INFORMATION - Net Sales and Long Lived Assets by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 136,436 | $ 126,205 | $ 151,537 | $ 126,788 | $ 147,778 | $ 118,398 | $ 122,432 | $ 104,168 | $ 540,966 | $ 492,776 | $ 404,170 |
Long - Lived Assets | 51,094 | 43,669 | 51,094 | 43,669 | 42,477 | ||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 467,161 | 399,434 | 335,969 | ||||||||
Long - Lived Assets | 48,589 | 41,176 | 48,589 | 41,176 | 39,832 | ||||||
Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 73,805 | 93,342 | 68,201 | ||||||||
Long - Lived Assets | $ 2,505 | $ 2,493 | $ 2,505 | $ 2,493 | $ 2,645 |
CUSTOMER INFORMATION (Detail Te
CUSTOMER INFORMATION (Detail Textuals) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Customer Concentration Risk | Net sales | |||
Concentration Risk [Line Items] | |||
Major customer, benchmark description | No single customer accounted for 10% or more of consolidated net sales | No single customer accounted for 10% or more of consolidated net sales | No single customer accounted for 10% or more of consolidated net sales |
DERIVATIVE FINANCIAL INSTRUME56
DERIVATIVE FINANCIAL INSTRUMENTS (Detail Textuals) - Foreign currency exchange contracts - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts payable | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of foreign currency exchange contracts included in account payable | $ 0 | $ 0 | ||
Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Notional amount | $ 10,637 | $ 12,950 |
QUARTERLY FINANCIAL INFORMATI57
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) - Summary of the unaudited quarterly financial information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 136,436 | $ 126,205 | $ 151,537 | $ 126,788 | $ 147,778 | $ 118,398 | $ 122,432 | $ 104,168 | $ 540,966 | $ 492,776 | $ 404,170 |
Operating Income | 6,445 | 5,271 | 9,894 | 4,512 | 9,434 | 5,736 | 5,547 | 3,772 | 26,122 | 24,489 | |
Net Income Attributable to Miller Industries, Inc. | $ 3,878 | $ 3,168 | $ 5,866 | $ 3,064 | $ 5,657 | $ 3,494 | $ 3,387 | $ 2,366 | $ 15,976 | $ 14,904 | $ 9,230 |
Basic Income Per Share (in dollars per share) | $ 0.34 | $ 0.28 | $ 0.52 | $ 0.27 | $ 0.5 | $ 0.31 | $ 0.3 | $ 0.21 | $ 1.41 | $ 1.32 | $ 0.82 |
Diluted Income Per Share (in dollars per share) | 0.34 | 0.28 | 0.52 | 0.27 | 0.5 | 0.31 | 0.3 | 0.2 | 1.41 | 1.31 | 0.82 |
Cash Dividends Declared Per Share (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.64 | $ 0.60 | $ 0.56 |
SUBSEQUENT EVENTS (Detail Textu
SUBSEQUENT EVENTS (Detail Textuals) - $ / shares | Mar. 07, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||||||||||||||
Cash dividend declared per share | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.64 | $ 0.60 | $ 0.56 | |||||
Dividends payable, payment date | Dec. 11, 2015 | Sep. 21, 2015 | Jun. 19, 2015 | Mar. 23, 2015 | Dec. 15, 2014 | Sep. 22, 2014 | Jun. 23, 2014 | Mar. 24, 2014 | Dec. 16, 2013 | Sep. 23, 2013 | Jun. 24, 2013 | Mar. 25, 2013 | ||||
Dividends payable record date | Dec. 7, 2015 | Sep. 14, 2015 | Jun. 15, 2015 | Mar. 20, 2015 | Dec. 8, 2014 | Sep. 15, 2014 | Jun. 16, 2014 | Mar. 17, 2014 | Dec. 9, 2013 | Sep. 16, 2013 | Jun. 17, 2013 | Mar. 18, 2013 | ||||
Subsequent Event | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Cash dividend declared per share | $ 0.17 | |||||||||||||||
Dividends payable, declared date | Mar. 7, 2016 | |||||||||||||||
Dividends payable, payment date | Mar. 28, 2016 | |||||||||||||||
Dividends payable record date | Mar. 21, 2016 |
SCHEDULE II - VALUATION AND Q59
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deduction from asset accounts: | |||
Balance at Beginning of Period | $ 1,850 | $ 1,714 | $ 1,614 |
Charged to Expense | 282 | 243 | 211 |
Accounts Written Off | (268) | (107) | (111) |
Balance at End of Period | $ 1,864 | $ 1,850 | $ 1,714 |