Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
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 | 11,349,960 | ||
Entity Public Float | $ 159,204,763 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and temporary investments | $ 31,115 | $ 38,449 |
Accounts receivable, net of allowance for doubtful accounts of $1,004 and $1,864, at December 31, 2016 and 2015, respectively | 125,383 | 109,170 |
Inventories, net | 64,136 | 66,232 |
Prepaid expenses | 5,006 | 1,689 |
Total current assets | 225,640 | 215,540 |
PROPERTY, PLANT AND EQUIPMENT, net | 59,613 | 39,475 |
GOODWILL | 11,619 | 11,619 |
DEFERRED INCOME TAX ASSETS | 1,226 | |
OTHER ASSETS | 566 | 496 |
TOTAL ASSETS | 297,438 | 268,356 |
CURRENT LIABILITIES: | ||
Accounts payable | 85,116 | 73,405 |
Accrued liabilities | 20,727 | 21,089 |
Total current liabilities | 105,843 | 94,494 |
LONG TERM OBLIGATIONS | 5,000 | |
DEFERRED INCOME TAX LIABILITIES | 1,993 | |
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, 11,346,060 and 11,341,150, outstanding at December 31, 2016 and 2015, respectively | 113 | 113 |
Additional paid-in capital | 150,404 | 150,305 |
Accumulated surplus | 40,752 | 28,545 |
Accumulated other comprehensive income (loss) | (6,667) | (5,101) |
Total shareholders' equity | 184,602 | 173,862 |
LIABILITIES AND SHAREHOLDERS' EQUITY TOTAL | $ 297,438 | $ 268,356 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,004 | $ 1,864 |
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 | 11,346,060 | 11,341,150 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
NET SALES | $ 601,119 | $ 540,966 | $ 492,776 |
COSTS OF OPERATIONS | 536,840 | 483,353 | 439,791 |
GROSS PROFIT | 64,279 | 57,613 | 52,985 |
OPERATING EXPENSES: | |||
Selling, general, and administrative expenses | 32,318 | 31,491 | 28,496 |
Interest expense, net | 1,161 | 919 | 554 |
Other expense (income) | (277) | 340 | 437 |
Total operating expenses | 33,202 | 32,750 | 29,487 |
INCOME BEFORE INCOME TAXES | 31,077 | 24,863 | 23,498 |
INCOME TAX PROVISION | 11,155 | 8,887 | 8,660 |
NET INCOME | 19,922 | 15,976 | 14,838 |
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 66 | ||
NET INCOME ATTRIBUTABLE TO MILLER INDUSTRIES, INC. | $ 19,922 | $ 15,976 | $ 14,904 |
BASIC INCOME PER COMMON SHARE (in dollars per share) | $ 1.76 | $ 1.41 | $ 1.32 |
DILUTED INCOME PER COMMON SHARE (in dollars per share) | 1.75 | 1.41 | 1.31 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.68 | $ 0.64 | $ 0.60 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (in shares) | 11,346 | 11,324 | 11,297 |
Diluted (in shares) | 11,374 | 11,360 | 11,354 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Other Comprehensive Income [Abstract] | |||
Net income | $ 19,922 | $ 15,976 | $ 14,838 |
Other comprehensive income: | |||
Foreign currency translation adjustment | (1,566) | (3,703) | (2,503) |
Derivative instrument and hedging activities | 126 | ||
Reclassifications from accumulated other comprehensive income (loss) | 165 | ||
Total other comprehensive income (loss) | (1,566) | (3,703) | (2,212) |
Comprehensive income | 18,356 | 12,273 | 12,626 |
Net loss attributable to noncontrolling interests | 66 | ||
Comprehensive income attributable to Miller Industries, Inc. | $ 18,356 | $ 12,273 | $ 12,692 |
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, 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 (5,154), (4,620) and (4,410) for the period of 2014, 2015 and 2016, respectively | 96 | 96 | 96 | ||||
Exercise of stock options (31,697), (34,000) and (500) for 2014, 2015 and 2016, respectively | 186 | 186 | 186 | ||||
Excess tax effect for stock-based compensation | 27 | 27 | 27 | ||||
Dividends paid, $0.60, $0.64, and $0.68 per share for the period of 2014, 2015 and 2016 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 (5,154), (4,620) and (4,410) for the period of 2014, 2015 and 2016, respectively | 96 | 96 | 96 | ||||
Exercise of stock options (31,697), (34,000) and (500) for 2014, 2015 and 2016, respectively | 186 | 186 | 186 | ||||
Excess tax effect for stock-based compensation | 106 | 106 | 106 | ||||
Dividends paid, $0.60, $0.64, and $0.68 per share for the period of 2014, 2015 and 2016 respectively | (7,253) | (7,253) | (7,253) | ||||
BALANCE at Dec. 31, 2015 | 113 | 150,305 | 28,545 | (5,101) | 173,862 | 173,862 | |
Components of comprehensive income: | |||||||
Net income | 19,922 | 19,922 | 19,922 | ||||
Foreign currency translation adjustments | (1,566) | (1,566) | (1,566) | ||||
Total comprehensive income | 19,922 | (1,566) | 18,356 | 18,356 | |||
Issuance of common stock to non-employee directors (5,154), (4,620) and (4,410) for the period of 2014, 2015 and 2016, respectively | 96 | 96 | 96 | ||||
Exercise of stock options (31,697), (34,000) and (500) for 2014, 2015 and 2016, respectively | 3 | 3 | 3 | ||||
Dividends paid, $0.60, $0.64, and $0.68 per share for the period of 2014, 2015 and 2016 respectively | (7,715) | (7,715) | (7,715) | ||||
BALANCE at Dec. 31, 2016 | $ 113 | $ 150,404 | $ 40,752 | $ (6,667) | $ 184,602 | $ 184,602 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Stockholders' Equity [Abstract] | |||
Issuance of common stock to non-employee directors, shares | 4,410 | 4,620 | 5,154 |
Exercise of stock options, shares | 500 | 34,000 | 31,697 |
Dividends paid, per share (in dollars per share) | $ 0.68 | $ 0.64 | $ 0.60 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES: | |||
Net income | $ 19,922 | $ 15,976 | $ 14,838 |
Adjustments to reconcile net income to net cash flows used in operating activities: | |||
Depreciation and amortization | 4,828 | 4,317 | 4,015 |
Loss on the deconsolidation of subsidiary | 83 | ||
(Gain) Loss on disposals of equipment | 18 | 74 | (39) |
Deferred tax provision | 3,219 | 573 | 147 |
Provision for doubtful accounts | (462) | 282 | 243 |
Excess tax benefit from stock-based compensation | (106) | (27) | |
Issuance of non-employee director shares | 96 | 96 | 96 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (17,253) | 5,736 | (36,342) |
Inventories | 1,018 | (11,015) | (3,284) |
Prepaid expenses | (3,361) | (31) | 151 |
Accounts payable | 12,931 | 3,819 | 24,662 |
Accrued liabilities | (30) | 338 | 5,394 |
Net cash flows from operating activities | 20,926 | 20,059 | 9,937 |
INVESTING ACTIVITIES: | |||
Purchases of property, plant, and equipment | (25,026) | (11,900) | (5,345) |
Proceeds from sale of equipment | 3 | 1 | 20 |
Net cash flows from investing activities | (25,023) | (11,899) | (5,325) |
FINANCING ACTIVITIES: | |||
Net borrowings under credit facility | 5,000 | ||
Payments of cash dividends | (7,715) | (7,253) | (6,778) |
Proceeds from exercise of stock options | 3 | 186 | 186 |
Excess tax benefit from stock-based compensation | 106 | 27 | |
Net cash flows from financing activities | (2,712) | (6,961) | (6,565) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY INVESTMENTS | (525) | (2,347) | (1,314) |
NET CHANGE IN CASH AND TEMPORARY INVESTMENTS | (7,334) | (1,148) | (3,267) |
CASH AND TEMPORARY INVESTMENTS, beginning of year | 38,449 | 39,597 | 42,864 |
CASH AND TEMPORARY INVESTMENTS, end of year | 31,115 | 38,449 | 39,597 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash payments for interest | 1,877 | 1,432 | 1,015 |
Cash payments for income taxes, net of refunds | $ 11,605 | $ 8,566 | $ 6,454 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 | |
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. 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 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 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, 2016 and 2015 consisted of the following: 2016 2015 Chassis $ 8,524 $ 8,048 Raw materials 26,322 28,328 Work in process 11,620 10,850 Finished goods 17,670 19,006 $ 64,136 $ 66,232 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. Property, plant and equipment at December 31, 2016 and 2015 consisted of the following: 2016 2015 Land and improvements $ 10,027 $ 5,812 Buildings and improvements 57,697 42,230 Machinery and equipment 34,984 30,821 Furniture and fixtures 9,243 8,978 Software costs 10,281 10,066 122,232 97,907 Less accumulated depreciation (62,619 ) (58,432 ) $ 59,613 $ 39,475 The Company recognized $4,828, $4,317 and $4,015 in depreciation expense in 2016, 2015 and 2014, 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 28,000, 36,000 and 57,000 potential dilutive common shares in 2016, 2015 and 2014, respectively. For 2016, 2015 and 2014, 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, 2016 and 2015. At December 31, 2016 and 2015, 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. Accrued Liabilities Accrued liabilities consisted of the following at December 31, 2016 and 2015: 2016 2015 Accrued wages, commissions, bonuses and benefits $ 7,452 $ 6,482 Accrued products warranty 2,821 3,140 Accrued income taxes 2,887 4,747 Other 7,567 6,720 $ 20,727 $ 21,089 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 $0 for 2016, 2015 and 2014. No options were granted during 2016 or 2015. 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, 2016, the Company had no unrecognized compensation expense related to stock options. The Company issued approximately 500 and 34,000 shares of common stock during 2016 and 2015, 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 2016, 2015 and 2014, was $1,750, $3,076 and $1,958, respectively. The table below provides a summary of the warranty liability for December 31, 2016 and 2015: 2016 2015 Accrual at beginning of the year $ 3,140 $ 2,622 Provision 1,750 3,076 Settlement and Other (2,069 ) (2,558 ) Accrual at end of year $ 2,821 $ 3,140 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 $1,797, $1,595 and $1,899 for 2016, 2015 and 2014, 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. 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 plans to use the modified retrospective approach to implement the standard and is currently evaluating the effect that implementation will have on its consolidated financial position, results of operations and cash flows. 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. 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 plans to use the modified retrospective approach to implement the standard and is currently evaluating the effect that implementation will have on its consolidated financial position, results of operations and cash flows. Recently Adopted Standards 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. The Company has elected to early adopt this standard on a retrospective basis. The effect of this adoption was to present the Company’s deferred income tax accounts as a long-term deferred income tax liability on the consolidated balance sheets as of December 31, 2016 and a long-term deferred income tax asset on the consolidated balance sheets as of December 31, 2015. 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, 2016 | |
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. Interest expense on the Credit Facility was $341 and $0 for the years ended December 31, 2016 and 2015, respectively. The Company had $5,000 and $0 in outstanding borrowings under the Credit Facility at December 31, 2016 and 2015, respectively. At March 14, 2017, the Company had $15,000 in outstanding borrowings under the Credit Facility. Interest Rate Sensitivity |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016, 2015 and 2014 were 0, 0 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, 2016, 2015 and 2014, is presented below (shares in thousands): 2016 2015 2014 Shares Weighted Shares Weighted Shares Weighted Outstanding at Beginning of Period 38 $ 5.49 72 $ 5.49 104 $ 5.60 Granted — — — — — — Exercised (1 ) 5.49 (34 ) 5.49 (32 ) 5.86 Forfeited and cancelled — — — — — — Outstanding at End of Period 37 $ 5.49 38 $ 5.49 72 $ 5.49 Options exercisable at year end 37 $ 5.49 38 $ 5.49 72 $ 5.49 A summary of options outstanding under the Company’s stock-based compensation plans at December 31, 2016 is presented below (in thousands): Exercise Price Shares Weighted Weighted Options Weighted Aggregate Intrinsic $ 5.49 37.5 $ 5.49 1.85 37.5 $ 5.49 $ 786 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
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 $1,730, $1,533 and $1,230 in 2016, 2015 and 2014, respectively. At December 31, 2016 future minimum lease payments under non-cancelable operating leases for the next five years and in the aggregate are as follows: 2017 $ 590 2018 453 2019 211 2020 77 2021 66 Thereafter 239 $ 1,636 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 $45,196 and $38,334 at December 31, 2016 and 2015, respectively. No repurchases of products were required during 2016 or 2015. The Company is finalizing the consolidation and expansion of its Pennsylvania manufacturing operations to increase capacity and improve operating efficiencies. The plan includes consolidating primary manufacturing operations at one location. The current estimated costs of this project are approximately $24,700, including machinery and equipment, buildings and improvements and land. Approximately $23,100 of these costs were incurred as of December 31, 2016 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 the first half of 2017. The timing and costs of the project are subject to change. The Company does 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. At December 31, 2016, we continued to utilize the remaining location for production of certain equipment and raw material inventory storage. In February 2017, the Company entered into a contingent agreement for the potential sale of the remaining plant location. The Company also began several capital projects during 2016 involving machinery and equipment and building improvements at its Ooltewah, Tennessee and Greeneville, Tennessee facilities that it currently estimates will cost in total approximately $20,600. Approximately $8,000 of these costs were incurred as of December 31, 2016 and are included in property, plant and equipment, net on the consolidated balance sheets. The remainder of these costs are expected to be incurred during 2017. In addition, the Company intends to construct an administrative building at its Ooltewah, Tennessee facility. The current estimated costs of such project are approximately $4,200, which are expected to be incurred during 2017. The timing and cost of the project are subject to change. 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, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 6. INCOME TAXES 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. The Company has elected to early adopt this standard on a retrospective basis. The effect of this adoption was to present the Company’s deferred income tax accounts as a long-term deferred income tax liability on the consolidated balance sheets as of December 31, 2016 and a long-term deferred income tax asset on the consolidated balance sheets as of December 31, 2015. Income before income taxes includes the following components: 2016 2015 2014 United States $ 25,038 $ 19,850 $ 18,703 Foreign 6,039 5,013 4,795 Total $ 31,077 $ 24,863 $ 23,498 The provision for income taxes on income consisted of the following in 2016, 2015 and 2014: 2016 2015 2014 Current: Federal $ 5,016 $ 5,778 $ 5,953 State 955 913 707 Foreign 1,965 1,623 1,853 7,936 8,314 8,513 Deferred: Federal 3,057 548 283 State 205 47 32 Foreign (43 ) (22 ) (168 ) 3,219 573 147 $ 11,155 $ 8,887 $ 8,660 The principal differences between the federal statutory tax rate and the income tax expense in 2016, 2015 and 2014: 2016 2015 2014 Federal statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 3.8 % 3.0 % 3.7 % Excess of (decreases in) foreign tax over US tax on foreign income (0.5 )% (1.1 )% 0.1 % Domestic tax credits (2.7 )% (1.2 )% (1.4 )% Other 0.2 % — (0.5 )% Effective tax rate 35.8 % 35.7 % 36.9 % 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, 2016 and 2015 are as follows: 2016 2015 Deferred tax assets: Allowance for doubtful accounts $ 58 $ 78 Accruals and reserves 2,552 3,468 Other 222 179 Total deferred tax assets 2,832 3,725 Deferred tax liabilities: Property, plant, and equipment 3,610 2,499 Investments in foreign subsidiaries 1,215 — Total deferred tax liabilities 4,825 2,499 Net deferred tax asset/(liability) $ (1,993 ) $ 1,226 The Company's foreign subsidiaries' have undistributed earnings of approximately $40,479 at December 31, 2016. Of this amount, $11,479 have been and continue to be considered to be indefinitely reinvested outside the United States. During 2016, the Company changed its indefinite reinvestment assertion with respect to $29,000 of foreign earnings based on anticipated changes in U.S. tax policies and an evaluation of its anticipated U.S. and foreign capital requirements and cash positions. The Company recorded a deferred tax liability of approximately $1,215 related to the U.S. federal and state income taxes and foreign withholding taxes on these foreign earnings. Should the Company decide to repatriate these foreign earnings, the actual tax impact would depend on its tax positions at the time of repatriation and could be significantly different from this estimate. The Company estimates the deferred tax liability arising from temporary differences related to undistributed earnings which are considered to be indefinitely reinvested outside the U.S. is approximately $487 at December 31, 2016. As of December 31, 2016, the Company has no federal or state net operating loss carryforwards. As of December 31, 2016 the Company had approximately $1,037 of unrecognized tax benefits recorded as liabilities, and we are uncertain about if or when such amounts may be settled. Related to the unrecognized tax benefits, the Company has also recorded a liability for potential penalties of $198 and interest of $19. A summary of the activity of the unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014, is presented below: 2016 2015 2014 Unrecognized tax benefits – January 1 792 526 344 Gross increases – tax positions in prior period 245 266 182 Unrecognized tax benefits – December 31 $ 1,037 $ 792 $ 526 The tax benefits identified in the chart above would affect our effective tax rate if recognized. The Company is subject to United States federal income taxes, as well as income taxes in various states and foreign jurisdictions. The Company’s 2015 and later tax years remain open to examination by the tax authorities. With few exceptions, as of December 31, 2016, the Company is no longer subject to U.S. federal, state or non-U.S. income tax examinations prior to 2013. |
SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS EQUITY | 7. SHAREHOLDERS EQUITY 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 2016, 2015 and 2014 were as follows: Payment Record Date Payment Date Dividend Amount 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 Q1 2016 March 21, 2016 March 28, 2016 $ 0.17 $ 1,929 Q2 2016 June 13, 2016 June 20, 2016 0.17 1,929 Q3 2016 September 12, 2016 September 19, 2016 0.17 1,928 Q4 2016 December 5, 2016 December 12, 2016 0.17 1,929 Total for 2016 $ 0.68 $ 7,715 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
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 2016, 2015 and 2014, 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 $697, $619 and $522 in 2016, 2015 and 2014, respectively. |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
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): 2016 2015 2014 Net Sales Long- Lived Assets Net Sales Long- Lived Assets Net Sales Long- Lived Assets North America $ 537,308 $ 68,556 $ 467,161 $ 48,589 $ 399,434 $ 41,176 Foreign 63,811 2,676 73,805 2,505 93,342 2,493 $ 601,119 $ 71,232 $ 540,966 $ 51,094 $ 492,776 $ 43,669 |
CUSTOMER INFORMATION
CUSTOMER INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
CUSTOMER INFORMATION | 10. CUSTOMER INFORMATION No single customer accounted for 10% or more of consolidated net sales for 2016, 2015 and 2014. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 11. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following is a summary of the unaudited quarterly financial information for the years ended December 31, 2016 and 2015: Net Sales Operating Net Basic Diluted Cash 2016 First Quarter $ 148,815 $ 4,960 $ 3,360 $ 0.30 $ 0.30 $ 0.17 Second Quarter 156,113 10,719 6,587 0.58 0.58 0.17 Third Quarter 147,597 8,621 5,522 0.49 0.49 0.17 Fourth Quarter 148,594 7,661 4,453 0.39 0.38 0.17 Total $ 601,119 $ 31,961 $ 19,922 $ 1.76 $ 1.75 $ 0.68 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 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS On March 14, 2017, the Company’s board of directors declared a quarterly cash dividend of $0.18 per share. The dividend is payable April 3, 2017 to shareholders of record as of March 27, 2017 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
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, 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 Year ended December 31, 2016 Deduction from asset accounts: Allowance for doubtful accounts $ 1,864 (462 ) (398 ) $ 1,004 |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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. 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 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 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, 2016 and 2015 consisted of the following: 2016 2015 Chassis $ 8,524 $ 8,048 Raw materials 26,322 28,328 Work in process 11,620 10,850 Finished goods 17,670 19,006 $ 64,136 $ 66,232 |
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. Property, plant and equipment at December 31, 2016 and 2015 consisted of the following: 2016 2015 Land and improvements $ 10,027 $ 5,812 Buildings and improvements 57,697 42,230 Machinery and equipment 34,984 30,821 Furniture and fixtures 9,243 8,978 Software costs 10,281 10,066 122,232 97,907 Less accumulated depreciation (62,619 ) (58,432 ) $ 59,613 $ 39,475 The Company recognized $4,828, $4,317 and $4,015 in depreciation expense in 2016, 2015 and 2014, 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 28,000, 36,000 and 57,000 potential dilutive common shares in 2016, 2015 and 2014, respectively. For 2016, 2015 and 2014, 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, 2016 and 2015. At December 31, 2016 and 2015, 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. |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following at December 31, 2016 and 2015: 2016 2015 Accrued wages, commissions, bonuses and benefits $ 7,452 $ 6,482 Accrued products warranty 2,821 3,140 Accrued income taxes 2,887 4,747 Other 7,567 6,720 $ 20,727 $ 21,089 |
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 $0 for 2016, 2015 and 2014. No options were granted during 2016 or 2015. 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, 2016, the Company had no unrecognized compensation expense related to stock options. The Company issued approximately 500 and 34,000 shares of common stock during 2016 and 2015, 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 2016, 2015 and 2014, was $1,750, $3,076 and $1,958, respectively. The table below provides a summary of the warranty liability for December 31, 2016 and 2015: 2016 2015 Accrual at beginning of the year $ 3,140 $ 2,622 Provision 1,750 3,076 Settlement and Other (2,069 ) (2,558 ) Accrual at end of year $ 2,821 $ 3,140 |
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 $1,797, $1,595 and $1,899 for 2016, 2015 and 2014, 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. |
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 plans to use the modified retrospective approach to implement the standard and is currently evaluating the effect that implementation will have on its consolidated financial position, results of operations and cash flows. 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. 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 plans to use the modified retrospective approach to implement the standard and is currently evaluating the effect that implementation will have on its consolidated financial position, results of operations and cash flows. Recently Adopted Standards 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. The Company has elected to early adopt this standard on a retrospective basis. The effect of this adoption was to present the Company’s deferred income tax accounts as a long-term deferred income tax liability on the consolidated balance sheets as of December 31, 2016 and a long-term deferred income tax asset on the consolidated balance sheets as of December 31, 2015. |
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 ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of inventories, net of reserves | 2016 2015 Chassis $ 8,524 $ 8,048 Raw materials 26,322 28,328 Work in process 11,620 10,850 Finished goods 17,670 19,006 $ 64,136 $ 66,232 |
Schedule of property, plant and equipment | 2016 2015 Land and improvements $ 10,027 $ 5,812 Buildings and improvements 57,697 42,230 Machinery and equipment 34,984 30,821 Furniture and fixtures 9,243 8,978 Software costs 10,281 10,066 122,232 97,907 Less accumulated depreciation (62,619 ) (58,432 ) $ 59,613 $ 39,475 |
Schedule of accrued liabilities | 2016 2015 Accrued wages, commissions, bonuses and benefits $ 7,452 $ 6,482 Accrued products warranty 2,821 3,140 Accrued income taxes 2,887 4,747 Other 7,567 6,720 $ 20,727 $ 21,089 |
Schedule of product warranty liability | 2016 2015 Accrual at beginning of the year $ 3,140 $ 2,622 Provision 1,750 3,076 Settlement and Other (2,069 ) (2,558 ) Accrual at end of year $ 2,821 $ 3,140 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of stock options, activity | 2016 2015 2014 Shares Weighted Shares Weighted Shares Weighted Outstanding at Beginning of Period 38 $ 5.49 72 $ 5.49 104 $ 5.60 Granted — — — — — — Exercised (1 ) 5.49 (34 ) 5.49 (32 ) 5.86 Forfeited and cancelled — — — — — — Outstanding at End of Period 37 $ 5.49 38 $ 5.49 72 $ 5.49 Options exercisable at year end 37 $ 5.49 38 $ 5.49 72 $ 5.49 |
Schedule of stock-based compensation plans | Exercise Price Shares Weighted Weighted Options Weighted Aggregate Intrinsic $ 5.49 37.5 $ 5.49 1.85 37.5 $ 5.49 $ 786 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under non-cancelable operating lease | 2017 $ 590 2018 453 2019 211 2020 77 2021 66 Thereafter 239 $ 1,636 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | 2016 2015 2014 United States $ 25,038 $ 19,850 $ 18,703 Foreign 6,039 5,013 4,795 Total $ 31,077 $ 24,863 $ 23,498 |
Schedule of provision for income taxes | 2016 2015 2014 Current: Federal $ 5,016 $ 5,778 $ 5,953 State 955 913 707 Foreign 1,965 1,623 1,853 7,936 8,314 8,513 Deferred: Federal 3,057 548 283 State 205 47 32 Foreign (43 ) (22 ) (168 ) 3,219 573 147 $ 11,155 $ 8,887 $ 8,660 |
Schedule of effective income tax rate reconciliation | 2016 2015 2014 Federal statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal tax benefit 3.8 % 3.0 % 3.7 % Excess of (decreases in) foreign tax over US tax on foreign income (0.5 )% (1.1 )% 0.1 % Domestic tax credits (2.7 )% (1.2 )% (1.4 )% Other 0.2 % — (0.5 )% Effective tax rate 35.8 % 35.7 % 36.9 % |
Schedule of deferred income tax assets and liabilities | 2016 2015 Deferred tax assets: Allowance for doubtful accounts $ 58 $ 78 Accruals and reserves 2,552 3,468 Other 222 179 Total deferred tax assets 2,832 3,725 Deferred tax liabilities: Property, plant, and equipment 3,610 2,499 Investments in foreign subsidiaries 1,215 — Total deferred tax liabilities 4,825 2,499 Net deferred tax asset/(liability) $ (1,993 ) $ 1,226 |
Schedule of activity of the unrecognized tax benefits | 2016 2015 2014 Unrecognized tax benefits – January 1 792 526 344 Gross increases – tax positions in prior period 245 266 182 Unrecognized tax benefits – December 31 $ 1,037 $ 792 $ 526 |
SHAREHOLDERS EQUITY (Tables)
SHAREHOLDERS EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of dividends payments | Payment Record Date Payment Date Dividend Amount 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 Q1 2016 March 21, 2016 March 28, 2016 $ 0.17 $ 1,929 Q2 2016 June 13, 2016 June 20, 2016 0.17 1,929 Q3 2016 September 12, 2016 September 19, 2016 0.17 1,928 Q4 2016 December 5, 2016 December 12, 2016 0.17 1,929 Total for 2016 $ 0.68 $ 7,715 |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of net sales and long-lived assets by region | 2016 2015 2014 Net Sales Long- Lived Assets Net Sales Long- Lived Assets Net Sales Long- Lived Assets North America $ 537,308 $ 68,556 $ 467,161 $ 48,589 $ 399,434 $ 41,176 Foreign 63,811 2,676 73,805 2,505 93,342 2,493 $ 601,119 $ 71,232 $ 540,966 $ 51,094 $ 492,776 $ 43,669 |
QUARTERLY FINANCIAL INFORMATI29
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Net Sales Operating Net Basic Diluted Cash 2016 First Quarter $ 148,815 $ 4,960 $ 3,360 $ 0.30 $ 0.30 $ 0.17 Second Quarter 156,113 10,719 6,587 0.58 0.58 0.17 Third Quarter 147,597 8,621 5,522 0.49 0.49 0.17 Fourth Quarter 148,594 7,661 4,453 0.39 0.38 0.17 Total $ 601,119 $ 31,961 $ 19,922 $ 1.76 $ 1.75 $ 0.68 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 |
ORGANIZATION AND NATURE OF OP30
ORGANIZATION AND NATURE OF OPERATIONS (Detail Textuals) | 12 Months Ended |
Dec. 31, 2016Distributor | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Number of independent distributors | 80 |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Chassis | $ 8,524 | $ 8,048 |
Raw materials | 26,322 | 28,328 |
Work in process | 11,620 | 10,850 |
Finished goods | 17,670 | 19,006 |
Inventories | $ 64,136 | $ 66,232 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant, and Equipment (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 122,232 | $ 97,907 |
Less accumulated depreciation | (62,619) | (58,432) |
Property, plant and equipment, net | 59,613 | 39,475 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,027 | 5,812 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 57,697 | 42,230 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 34,984 | 30,821 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,243 | 8,978 |
Software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,281 | $ 10,066 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accrued Liabilities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Accrued wages, commissions, bonuses and benefits | $ 7,452 | $ 6,482 |
Accrued products warranty | 2,821 | 3,140 |
Accrued income taxes | 2,887 | 4,747 |
Other | 7,567 | 6,720 |
Accrued liabilities | $ 20,727 | $ 21,089 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Product Warranty (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Accrual at beginning of the year | $ 3,140 | $ 2,622 |
Provision | 1,750 | 3,076 |
Settlement and Other | (2,069) | (2,558) |
Accrual at end of year | $ 2,821 | $ 3,140 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment depreciation method | Straight-line method | ||
Depreciation expense | $ 4,828 | $ 4,317 | $ 4,015 |
Intangible assets amortization method | Straight-line basis | ||
Amortization period for intangible assets | 5 years | ||
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Estimated useful lives | 20 to 30 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Estimated useful lives | 5 to 10 years | ||
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Estimated useful lives | 5 to 10 years | ||
Software costs | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, Estimated useful lives | 5 to 10 years |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization method | Straight-line basis | |
Amortization period for intangible assets | 5 years | |
Patents, Trademarks and Other Purchased Product Rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets amortization method | 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 ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Outstanding stock options included in the calculation of diluted EPS | 28,000 | 36,000 | 57,000 |
Stock compensation expense | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common stock issued from exercise of stock options | 500 | 34,000 | 31,697 |
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 | 1,000 | 34,000 | 32,000 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Term of product warranty | 1 year | ||
Product warranty expense | $ 1,750 | $ 3,076 | $ 1,958 |
Research and development costs | $ 1,797 | $ 1,595 | $ 1,899 |
LONG-TERM OBLIGATIONS (Detail T
LONG-TERM OBLIGATIONS (Detail Textuals) - First Tennessee Bank National Association - Revolving Credit Facility - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 14, 2017 | Jun. 22, 2016 | Jun. 11, 2015 | Dec. 21, 2011 | Apr. 06, 2010 | |
Line of Credit Facility [Line Items] | |||||||
Revolving credit facility | $ 50,000 | $ 30,000 | $ 25,000 | $ 20,000 | |||
Description of reference rate basis | LIBOR Market Index Rate | ||||||
Variable interest rate in addition to reference rate | 1.50% | ||||||
Interest expense on credit facility | $ 341 | $ 0 | |||||
Outstanding borrowings credit facility | $ 5,000 | $ 0 | |||||
Interest rate | 2.27% | ||||||
Subsequent Event | |||||||
Line of Credit Facility [Line Items] | |||||||
Outstanding borrowings credit facility | $ 15,000 | ||||||
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 PLAN41
STOCK-BASED COMPENSATION PLANS - Summary of activity of stock options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares Under Option | |||
Exercised | (500) | (34,000) | (31,697) |
Stock Options | |||
Shares Under Option | |||
Outstanding at Beginning of Period | 38,000 | 72,000 | 104,000 |
Granted | |||
Exercised | (1,000) | (34,000) | (32,000) |
Forfeited and cancelled | |||
Outstanding at End of Period | 37,000 | 38,000 | 72,000 |
Options exercisable at year end | 37,000 | 38,000 | 72,000 |
Weighted Average Exercise Price | |||
Outstanding at Beginning of Period | $ 5.49 | $ 5.49 | $ 5.60 |
Granted | |||
Exercised | 5.49 | 5.49 | 5.86 |
Forfeited and cancelled | |||
Outstanding at End of Period | 5.49 | 5.49 | 5.49 |
Options exercisable at year end | $ 5.49 | $ 5.49 | $ 5.49 |
STOCK-BASED COMPENSATION PLAN42
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, 2016USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price | $ 5.49 |
Shares Under Option | shares | 37.5 |
Weighted Average Exercise Price of Options Outstanding | $ 5.49 |
Weighted Average Remaining Life | 1 year 10 months 6 days |
Options Exercisable | shares | 37.5 |
Weighted Average Exercise Price of Shares Exercisable | $ 5.49 |
Aggregate Intrinsic Value | $ | $ 786 |
STOCK-BASED COMPENSATION PLAN43
STOCK-BASED COMPENSATION PLANS (Detail Textuals) - Stock Options - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 0 | 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, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 590 |
2,018 | 453 |
2,019 | 211 |
2,020 | 77 |
2,021 | 66 |
Thereafter | 239 |
Total operating leases, future minimum payments due | $ 1,636 |
COMMITMENTS AND CONTINGENCIES45
COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies [Line Items] | |||
Rental expense for operating leases | $ 1,730 | $ 1,533 | $ 1,230 |
Maximum repurchase collateral amount | 45,196 | $ 38,334 | |
Pennsylvania | |||
Commitments And Contingencies [Line Items] | |||
Estimated costs of project | 24,700 | ||
Capital cost incurred | 23,100 | ||
Ooltewah, Tennessee and Greeneville, Tennessee | |||
Commitments And Contingencies [Line Items] | |||
Estimated costs of project | 20,600 | ||
Capital cost incurred | 8,000 | ||
Current estimated costs of administrative building | $ 4,200 |
INCOME TAXES - Components of in
INCOME TAXES - Components of income before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Before Income Taxes | |||
United States | $ 25,038 | $ 19,850 | $ 18,703 |
Foreign | 6,039 | 5,013 | 4,795 |
Total | $ 31,077 | $ 24,863 | $ 23,498 |
INCOME TAXES - Provision for in
INCOME TAXES - Provision for income taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 5,016 | $ 5,778 | $ 5,953 |
State | 955 | 913 | 707 |
Foreign | 1,965 | 1,623 | 1,853 |
Current income tax expense | 7,936 | 8,314 | 8,513 |
Deferred: | |||
Federal | 3,057 | 548 | 283 |
State | 205 | 47 | 32 |
Foreign | (43) | (22) | (168) |
Deferred income tax expense | 3,219 | 573 | 147 |
Income tax expense | $ 11,155 | $ 8,887 | $ 8,660 |
INCOME TAXES - Principal differ
INCOME TAXES - Principal differences between federal statutory tax rate and income tax expense (Details 2) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal tax benefit | 3.80% | 3.00% | 3.70% |
Excess of (decreases in) foreign tax over US tax on foreign income | (0.50%) | (1.10%) | 0.10% |
Domestic Tax Credits | (2.70%) | (1.20%) | (1.40%) |
Other | 0.20% | (0.50%) | |
Effective tax rate | 35.80% | 35.70% | 36.90% |
INCOME TAXES - Deferred income
INCOME TAXES - Deferred income tax assets and liabilities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 58 | $ 78 |
Accruals and reserves | 2,552 | 3,468 |
Other | 222 | 179 |
Total deferred tax assets | 2,832 | 3,725 |
Deferred tax liabilities: | ||
Property, plant, and equipment | 3,610 | 2,499 |
Investments in foreign subsidiaries | 1,215 | |
Total deferred tax liabilities | 4,825 | 2,499 |
Net deferred tax asset/(liability) | $ (1,993) | $ 1,226 |
INCOME TAXES - Summary of the a
INCOME TAXES - Summary of the activity of unrecognized tax benefits (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits - January 1 | $ 792 | $ 526 | $ 344 |
Gross increases - tax positions in prior period | 245 | 266 | 182 |
Unrecognized tax benefits - December 31 | $ 1,037 | $ 792 | $ 526 |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Amount of undistributed earnings of foreign subsidiaries | $ 40,479 | |||
Amount considered to be indefinitely reinvested in foreign countries | 11,479 | |||
Amount of foreign earnings based on anticipated changes in U.S. tax policies | 29,000 | |||
Deferred tax liability related to U.S. federal and state income taxes | 1,215 | |||
Deferred tax liability related to undistributed earnings of subsidiaries | 487 | |||
Unrecognized tax benefits | 1,037 | $ 792 | $ 526 | $ 344 |
Liability for potential penalties | 198 | |||
Interest related to unrecognized tax benefits | $ 19 |
SHAREHOLDERS EQUITY - Summary
SHAREHOLDERS EQUITY - Summary of Dividend payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |||||||||||||||
Record Date | Dec. 5, 2016 | Sep. 12, 2016 | Jun. 13, 2016 | Mar. 21, 2016 | Dec. 7, 2015 | Sep. 14, 2015 | Jun. 15, 2015 | Mar. 20, 2015 | Dec. 8, 2014 | Sep. 15, 2014 | Jun. 16, 2014 | Mar. 17, 2014 | |||
Payment Date | Dec. 12, 2016 | Sep. 19, 2016 | Jun. 20, 2016 | Mar. 28, 2016 | Dec. 11, 2015 | Sep. 21, 2015 | Jun. 19, 2015 | Mar. 23, 2015 | Dec. 15, 2014 | Sep. 22, 2014 | Jun. 23, 2014 | Mar. 24, 2014 | |||
Dividend (per share) | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.68 | $ 0.64 | $ 0.60 |
Dividend paid, amount | $ 1,929 | $ 1,928 | $ 1,929 | $ 1,929 | $ 1,815 | $ 1,815 | $ 1,814 | $ 1,809 | $ 1,695 | $ 1,696 | $ 1,695 | $ 1,692 | $ 7,715 | $ 7,253 | $ 6,778 |
SHAREHOLDERS EQUITY (Detail Tex
SHAREHOLDERS EQUITY (Detail Textuals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Stockholders' Equity Note [Abstract] | ||
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 |
EMPLOYEE BENEFIT PLANS (Detail
EMPLOYEE BENEFIT PLANS (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 5 years | 5 years | 5 years |
Defined contribution plan, employer contribution | $ 697 | $ 619 | $ 522 |
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 148,594 | $ 147,597 | $ 156,113 | $ 148,815 | $ 136,436 | $ 126,205 | $ 151,537 | $ 126,788 | $ 601,119 | $ 540,966 | $ 492,776 |
Long - Lived Assets | 71,232 | 51,094 | 71,232 | 51,094 | 43,669 | ||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 537,308 | 467,161 | 399,434 | ||||||||
Long - Lived Assets | 68,556 | 48,589 | 68,556 | 48,589 | 41,176 | ||||||
Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 63,811 | 73,805 | 93,342 | ||||||||
Long - Lived Assets | $ 2,676 | $ 2,505 | $ 2,676 | $ 2,505 | $ 2,493 |
CUSTOMER INFORMATION (Detail Te
CUSTOMER INFORMATION (Detail Textuals) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 |
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 148,594 | $ 147,597 | $ 156,113 | $ 148,815 | $ 136,436 | $ 126,205 | $ 151,537 | $ 126,788 | $ 601,119 | $ 540,966 | $ 492,776 |
Operating Income | 7,661 | 8,621 | 10,719 | 4,960 | 6,445 | 5,271 | 9,894 | 4,512 | 31,961 | 26,122 | |
Net Income Attributable to Miller Industries, Inc. | $ 4,453 | $ 5,522 | $ 6,587 | $ 3,360 | $ 3,878 | $ 3,168 | $ 5,866 | $ 3,064 | $ 19,922 | $ 15,976 | $ 14,904 |
Basic Income Per Share (in dollars per share) | $ 0.39 | $ 0.49 | $ 0.58 | $ 0.30 | $ 0.34 | $ 0.28 | $ 0.52 | $ 0.27 | $ 1.76 | $ 1.41 | $ 1.32 |
Diluted Income Per Share (in dollars per share) | 0.38 | 0.49 | 0.58 | 0.30 | 0.34 | 0.28 | 0.52 | 0.27 | 1.75 | 1.41 | 1.31 |
Cash Dividends Declared Per Share (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.68 | $ 0.64 | $ 0.60 |
SUBSEQUENT EVENTS (Detail Textu
SUBSEQUENT EVENTS (Detail Textuals) - $ / shares | Mar. 14, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||||||||||||
Cash dividend declared per share | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.68 | $ 0.64 | $ 0.60 | |||||
Dividends payable, payment date | Dec. 12, 2016 | Sep. 19, 2016 | Jun. 20, 2016 | Mar. 28, 2016 | Dec. 11, 2015 | Sep. 21, 2015 | Jun. 19, 2015 | Mar. 23, 2015 | Dec. 15, 2014 | Sep. 22, 2014 | Jun. 23, 2014 | Mar. 24, 2014 | ||||
Dividends payable record date | Dec. 5, 2016 | Sep. 12, 2016 | Jun. 13, 2016 | Mar. 21, 2016 | Dec. 7, 2015 | Sep. 14, 2015 | Jun. 15, 2015 | Mar. 20, 2015 | Dec. 8, 2014 | Sep. 15, 2014 | Jun. 16, 2014 | Mar. 17, 2014 | ||||
Subsequent Event | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Cash dividend declared per share | $ 0.18 | |||||||||||||||
Dividends payable, declared date | Mar. 14, 2017 | |||||||||||||||
Dividends payable, payment date | Apr. 3, 2017 | |||||||||||||||
Dividends payable record date | Mar. 27, 2017 |
SCHEDULE II - VALUATION AND Q59
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deduction from asset accounts: | |||
Balance at Beginning of Period | $ 1,864 | $ 1,850 | $ 1,714 |
Charged to Expense | (462) | 282 | 243 |
Accounts Written Off | (398) | (268) | (107) |
Balance at End of Period | $ 1,004 | $ 1,864 | $ 1,850 |