Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 09, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-12505 | |
Entity Registrant Name | CORE MOLDING TECHNOLOGIES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 31-1481870 | |
Entity Address, Address Line One | 800 Manor Park Drive | |
Entity Address, City or Town | Columbus | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43228-0183 | |
City Area Code | 614 | |
Local Phone Number | 870-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Security Exchange Name | NYSEAMER | |
Trading Symbol | CMT | |
Entity Common Stock, Shares Outstanding (in shares) | 8,697,482 | |
Entity Central Index Key | 0001026655 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 90,592 | $ 72,829 |
Cost of sales | 76,085 | 60,111 |
Gross margin | 14,507 | 12,718 |
Selling, general and administrative expense | 8,495 | 7,372 |
Operating income | 6,012 | 5,346 |
Other income and expense | ||
Interest expense | 541 | 579 |
Net periodic post-retirement benefit | (31) | (40) |
Total other expense | 510 | 539 |
Income before taxes | 5,502 | 4,807 |
Income tax expense | 1,638 | 1,351 |
Net income | $ 3,864 | $ 3,456 |
Net income per common share: | ||
Basic (in USD per share) | $ 0.46 | $ 0.41 |
Diluted (in USD per share) | $ 0.46 | $ 0.41 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | $ 3,864 | $ 3,456 |
Post-retirement benefit plan adjustments: | ||
Amortization of net actuarial loss | 43 | 43 |
Amortization of prior service credits | (124) | (124) |
Income tax benefit | 17 | 17 |
Comprehensive income | $ 3,800 | $ 3,392 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,326,000 | $ 6,146,000 |
Accounts receivable, net | 52,292,000 | 35,261,000 |
Inventories, net | 28,399,000 | 25,129,000 |
Prepaid expenses and other current assets | 7,213,000 | 8,606,000 |
Total current assets | 89,230,000 | 75,142,000 |
Right of use asset | 5,081,000 | 5,577,000 |
Property, plant and equipment, net | 76,046,000 | 75,897,000 |
Goodwill | 17,376,000 | 17,376,000 |
Intangibles, net | 9,080,000 | 9,567,000 |
Other non-current assets | 3,073,000 | 3,133,000 |
Total Assets | 199,886,000 | 186,692,000 |
Current liabilities: | ||
Current portion of long-term debt | 3,984,000 | 3,943,000 |
Revolving debt | 4,835,000 | 4,424,000 |
Accounts payable | 33,420,000 | 22,695,000 |
Contract liability | 6,737,000 | 6,256,000 |
Compensation and related benefits | 6,972,000 | 7,532,000 |
Accrued other liabilities | 7,324,000 | 8,202,000 |
Total current liabilities | 63,272,000 | 53,052,000 |
Other non-current liabilities | 4,255,000 | 4,605,000 |
Long-term debt | 20,239,000 | 21,251,000 |
Post-retirement benefits liability | 7,723,000 | 7,689,000 |
Total Liabilities | 95,489,000 | 86,597,000 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ Equity: | ||
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares: 8,270,162 at March 31, 2022 and 8,235,740 at December 31, 2021 | 83,000 | 82,000 |
Paid-in capital | 38,514,000 | 38,013,000 |
Accumulated other comprehensive income, net of income taxes | $ 1,011,000 | 1,075,000 |
Treasury stock (in shares) | 3,818,166 | |
Treasury stock - at cost, 3,818,166 shares at March 31, 2022 and December 31, 2021 | $ (28,617,000) | (28,617,000) |
Retained earnings | 93,406,000 | 89,542,000 |
Total Stockholders’ Equity | 104,397,000 | 100,095,000 |
Total Liabilities and Stockholders’ Equity | $ 199,886,000 | $ 186,692,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 8,270,162 | 8,235,740 |
Treasury stock (in shares) | 3,818,166 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Total | Common Stock Outstanding | Paid-In Capital | Accumulated Other Comprehensive Income | Treasury Stock | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2020 | 7,980,516 | |||||
Beginning Balance at Dec. 31, 2020 | $ 93,932,000 | $ 80,000 | $ 36,127,000 | $ 1,375,000 | $ (28,521,000) | $ 84,871,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,456,000 | 3,456,000 | ||||
Change in post retirement benefits, net of tax | (64,000) | (64,000) | ||||
Purchase of treasury stock | $ (47,000) | |||||
Restricted stock vested (in shares) | 11,158 | (3,874) | ||||
Restricted stock vested | 0 | $ 0 | ||||
Share-based compensation | 318,000 | 318,000 | ||||
Ending Balance (in shares) at Mar. 31, 2021 | 7,987,800 | |||||
Ending Balance at Mar. 31, 2021 | $ 97,595,000 | $ 80,000 | 36,445,000 | 1,311,000 | $ (28,568,000) | 88,327,000 |
Beginning Balance (in shares) at Dec. 31, 2021 | 8,235,740 | 8,235,740 | ||||
Beginning Balance at Dec. 31, 2021 | $ 100,095,000 | $ 82,000 | 38,013,000 | 1,075,000 | (28,617,000) | 89,542,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,864,000 | 3,864,000 | ||||
Change in post retirement benefits, net of tax | (64,000) | (64,000) | ||||
Restricted stock vested (in shares) | 34,422 | |||||
Restricted stock vested | 1,000 | $ 1,000 | ||||
Share-based compensation | $ 501,000 | 501,000 | ||||
Ending Balance (in shares) at Mar. 31, 2022 | 8,270,162 | 8,270,162 | ||||
Ending Balance at Mar. 31, 2022 | $ 104,397,000 | $ 83,000 | $ 38,514,000 | $ 1,011,000 | $ (28,617,000) | $ 93,406,000 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income tax benefit | $ 17,000 | $ 17,000 |
Treasury Stock | ||
Restricted stock vested (in shares) | (3,874) | |
Purchase of treasury stock | $ (47,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net Income (Loss) Attributable to Parent | $ 3,864 | $ 3,456 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 3,125 | 3,049 |
Share-based compensation | 501 | 318 |
Losses on foreign currency remeasurement | 240 | 235 |
Change in operating assets and liabilities: | ||
Accounts receivable | (17,031) | (13,218) |
Inventories | (3,270) | (2,013) |
Prepaid and other assets | 1,502 | 903 |
Accounts payable | 10,407 | 8,283 |
Accrued and other liabilities | (948) | (1,385) |
Post-retirement benefits liability | (47) | (140) |
Net cash used in operating activities | (1,657) | (512) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (2,482) | (2,436) |
Net cash used in investing activities | (2,482) | (2,436) |
Cash flows from financing activities: | ||
Gross repayments on revolving line of credit | (37,444) | (5,915) |
Gross borrowings on revolving line of credit | 37,855 | 8,496 |
Payments related to the purchase of treasury stock | 0 | (47) |
Payment of deferred loan costs | 0 | (2) |
Payment of principal on term loans | (1,092) | (688) |
Net cash (used in) provided by financing activities | (681) | 1,844 |
Net change in cash and cash equivalents | (4,820) | (1,104) |
Cash and cash equivalents at beginning of period | 6,146 | 4,131 |
Cash and cash equivalents at end of period | 1,326 | 3,027 |
Cash paid for: | ||
Interest | 420 | 467 |
Income taxes | 2,198 | 2,560 |
Non-cash investing activities: | ||
Fixed asset purchases in accounts payable | $ 513 | $ 99 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATIONThe accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States of America for interim reporting, which are less than those required for annual reporting. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (all of which are normal and recurring in nature) necessary to present fairly the financial position of Core Molding Technologies, Inc. and its subsidiaries (“Core Molding Technologies” or the “Company”) at March 31, 2022, and the results of operations and cash flows for the three months ended March 31, 2022. The Company has reclassified certain prior-year amounts to conform to the current year's presentation. The “Notes to Consolidated Financial Statements” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, should be read in conjunction with these consolidated financial statements.Core Molding Technologies and its subsidiaries operate in the engineered materials market as one operating segment as a molder of thermoplastic and thermoset structural products. The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, power sports, building products, industrial and utilities and other commercial markets. Core Molding Technologies has its headquarters in Columbus, Ohio, and operates six production facilities in three countries, the United States, Canada and Mexico. |
Critical Accounting Policies an
Critical Accounting Policies and Estimates | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Critical Accounting Policies and Estimates | CRITICAL ACCOUNTING POLICIES AND ESTIMATES Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. Revenue Recognition: The Company historically has recognized revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of sheet molding compounds and thermoset and thermoplastic products. Revenue from product sales is generally recognized as products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. In certain circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes control at our production facility. Tooling revenue is earned from manufacturing multiple tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over a given period. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools. Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be titled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Cash and Cash Equivalents: The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash is held primarily in three banks in three separate jurisdictions. The Company had $1,326,000 cash on hand at March 31, 2022 and had $6,146,000 cash on hand at December 31, 2021. Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that a $32,000 allowance for doubtful accounts is needed at March 31, 2022 and $90,000 at December 31, 2021. Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $255,000 at March 31, 2022 and $222,000 at December 31, 2021. There have been no material changes in the methodology of these calculations. Inventories: Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $451,000 at March 31, 2022 and $362,000 at December 31, 2021. Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $443,000 at March 31, 2022, and $17,000 at December 31, 2021. Contract assets are generally classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the three months ended March 31, 2022, the Company recognized no impairments on contract assets. For the three months ended March 31, 2022, the Company recognized $432,000 amount of revenue from contract liabilities related to open jobs outstanding as of December 31, 2021. Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more-likely-than-not to realize deferred tax benefits through the generation of future taxable income. Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates whether impairment exists for property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There were no impairment charges of the Company’s long-lived assets for the three months ended March 31, 2022 and March 31, 2021, respectively. Goodwill: The purchase consideration of acquired businesses has been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment. The annual impairment tests of goodwill may be completed through qualitative assessments; however, the Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period. Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, and capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a quantitative approach. There were no impairment charges of the Company's goodwill for the three months ended March 31, 2022 and March 31, 2021, respectively. Self-Insurance: The Company is self-insured with respect to its facilities in Columbus, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at March 31, 2022 and December 31, 2021 of $890,000 and $916,000, respectively. Fair Value of Financial Instruments: The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and debt. Cash and cash equivalents, accounts receivable and accounts payable carrying values as of March 31, 2022 and December 31, 2021 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of the Company's debt with Wells Fargo Bank, National Association approximate fair value as of March 31, 2022 and December 31, 2021 due to the short term nature of the underlying variable rate LIBOR agreements. The Company's debt with FGI Equipment Finance, LLC approximates fair value as of March 31, 2022 and December 31, 2021 due to immaterial movement in interest rates since the Company entered into the Promissory Note on October 20, 2020. Post-Retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Core Molding Technologies had a liability for post-retirement healthcare benefits based on actuarial computed estimates of $9,114,000 at March 31, 2022 and $9,080,000 at December 31, 2021. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Current Expected Credit Loss (CECL) In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under the U.S. Securities and Exchange Commission rules, until fiscal years beginning after December 15, 2022. We will adopt this ASU on its effective date of January 1, 2023. We do not expect the adoption of this ASU to have a material impact on our consolidated financial position, results of operations, cash flows, or presentation thereof. |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NET INCOME PER COMMON SHARE Net income per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed similarly but includes the effect of the assumed exercise of dilutive stock appreciation rights and restricted stock under the treasury stock method. On May 13, 2021, the Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan provides restricted stock award recipients voting rights equivalent to the Company's common stock and accrual of dividends but not receipt of dividends until all conditions or restrictions related to such award have been satisfied. Accordingly, the restricted shares are not considered participating shares. The 2006 Plan provides restricted stock award recipients voting rights equivalent to the Company’s common stock and accrual and receipt of dividends irrespective of any conditions or restrictions related to such award being satisfied. Accordingly, the restricted shares granted from the 2006 Plan are considered a participating security and the Company is required to apply the two-class method to consider the impact of the restricted shares on the calculation of basic and diluted earnings per share. The computation of basic and diluted net income per common share (in thousands, except for per share data) is as follows: Three months ended 2022 2021 Net income $ 3,864 $ 3,456 Less: net income allocated to participating securities 97 204 Net income available to common shareholders $ 3,767 $ 3,252 Weighted average common shares outstanding — basic 8,268,000 7,985,000 Effect of weighted average dilutive securities — 7,000 Weighted average common and potentially issuable common shares outstanding — diluted 8,268,000 7,992,000 Basic net income per common share $ 0.46 $ 0.41 Diluted net income per common share $ 0.46 $ 0.41 |
Major Customers
Major Customers | 3 Months Ended |
Mar. 31, 2022 | |
Concentration Risks, Types, No Concentration Percentage [Abstract] | |
Major Customers | MAJOR CUSTOMERS The Company had five major customers during the three months ended March 31, 2022, BRP, Inc. ("BRP"), Navistar, Inc. ("Navistar"), PACCAR, Inc. ("PACCAR"), Universal Forest Products, Inc. ("UFP") and Volvo Group North America, LLC ("Volvo"). Major customers are defined as customers whose sales individually consist of more than ten percent of the Company's total sales during any annual or interim reporting period in the current year. The loss of a significant portion of sales to these customers could have a material adverse effect on the business of the Company. The following table presents sales revenue for the above-mentioned customers for the three months ended March 31, 2022 and 2021 (in thousands): Three months ended 2022 2021 BRP product sales $ 12,207 $ 8,568 BRP tooling sales 150 115 Total BRP sales 12,357 8,683 Navistar product sales 14,022 9,937 Navistar tooling sales 11 306 Total Navistar sales 14,033 10,243 PACCAR product sales 8,747 9,354 PACCAR tooling sales 111 329 Total PACCAR sales 8,858 9,683 UFP product sales 12,687 10,657 UFP tooling sales — — Total UFP sales 12,687 10,657 Volvo product sales 10,915 10,125 Volvo tooling sales 87 20 Total Volvo sales 11,002 10,145 Other product sales 31,323 20,492 Other tooling sales 332 2,926 Total other sales 31,655 23,418 Total product sales 89,901 69,133 Total tooling sales 691 3,696 Total sales $ 90,592 $ 72,829 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventories, net consisted of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials $ 18,984 $ 17,160 Work in process 2,061 1,976 Finished goods 7,354 5,993 Total $ 28,399 $ 25,129 Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to four years, some of which include options to extend the lease for five years. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued other liabilities and other non-current liabilities in the Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The Company used the applicable incremental borrowing rate at implementation date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate. At each reporting period when there is a new lease initiated, the Company will utilize its incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities. The components of lease expense were as follows (in thousands): Three Months Ended 2022 2021 Operating lease cost $ 475 $ 368 Other supplemental balance sheet information related to leases was as follows (in thousands): March 31, 2022 December 31, 2021 Operating lease right of use assets $ 5,081 $ 5,577 Current operating lease liabilities (A) $ 1,497 $ 1,489 Noncurrent operating lease liabilities (B) 3,688 4,024 Total operating lease liabilities $ 5,185 $ 5,513 (A) Current operating lease liabilities are included in accrued other liabilities (B) Noncurrent operating lease liabilities are included in other non-current liabilities The following table presents certain information related to lease terms and discount rates for leases: Operating leases March 31, 2022 December 31, 2021 Weighted average remaining lease term (in years): 3.9 4.2 Weighted average discount rate: 4.0 % 4.1 % Other information related to leases were as follows (in thousands): Three months ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases (C) $ 475 $ 368 (C) Cash flow from operating leases are included in prepaid and other assets in the Consolidated Statements of Cash Flows. Maturities of operating lease liabilities were as follows (in thousands): March 31, 2022 December 31, 2021 2022 (remainder of year) $ 1,203 $ 1,567 2023 1,511 1,468 2024 1,517 1,473 2025 803 783 2026 698 698 Total lease payments 5,732 5,989 Less: imputed interest (547) (476) Total lease obligations 5,185 5,513 Less: current obligations (1,497) (1,489) Long-term lease obligations $ 3,688 $ 4,024 |
Property, Plant & Equipment
Property, Plant & Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | PROPERTY, PLANT & EQUIPMENT Property, plant and equipment, net consisted of the following for the periods specified (in thousands): March 31, 2022 December 31, 2021 Property, plant and equipment $ 186,166 $ 183,500 Accumulated depreciation (110,120) (107,603) Property, plant and equipment — net $ 76,046 $ 75,897 Property, plant, and equipment are recorded at cost, unless obtained through acquisition, then assets are recorded at estimated fair value at the date of acquisition. Depreciation is provided on a straight-line method over the estimated useful lives of the assets. The carrying amount of long-lived assets is evaluated annually to determine if an adjustment to the depreciation period or to the unamortized balance is warranted. Depreciation expense for the three months ended March 31, 2022 and 2021 was $2,517,000 and $2,482,000, respectively. Amounts invested in capital additions in progress were $7,232,000 and $6,605,000 at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022 and December 31, 2021, purchase commitments for capital expenditures in progress were $3,822,000 and $5,315,000, respectively. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | GOODWILL AND INTANGIBLES Goodwill activity for the three months ended March 31, 2022 consisted of the following (in thousands): Balance at December 31, 2021 $ 17,376 Additions — Impairment — Balance at March 31, 2022 $ 17,376 Intangibles, net at March 31, 2022 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (70) $ 180 Trademarks 10 Years 1,610 (678) 932 Non-competition agreement 5 Years 1,810 (1,523) 287 Developed technology 7 Years 4,420 (2,657) 1,763 Customer relationships 10-12 Years 9,330 (3,412) 5,918 Total $ 17,420 $ (8,340) $ 9,080 Intangibles, net at December 31, 2021 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (68) $ 182 Trademarks 10 Years 1,610 (637) 973 Non-competition agreement 5 Years 1,810 (1,433) 377 Developed technology 7 Years 4,420 (2,499) 1,921 Customer relationships 10-12 Years 9,330 (3,216) 6,114 Total $ 17,420 $ (7,853) $ 9,567 |
Post Retirement Benefits
Post Retirement Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Post Retirement Benefits | POST-RETIREMENT BENEFITS The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands): Three months ended 2022 2021 Pension expense: Multi-employer plan $ 207 $ 189 Defined contribution plan 365 302 Total pension expense 572 491 Health and life insurance: Interest cost 50 41 Amortization of prior service credits (124) (124) Amortization of net loss 43 43 Net periodic benefit credit (31) (40) Total post-retirement benefits expense $ 541 $ 451 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 11. DEBT Debt consists of the following (in thousands): March 31, December 31, Wells Fargo term loans payable $ 13,392 $ 13,992 FGI term loans payable 12,077 12,561 Leaf Capital term loan payable 111 119 Total 25,580 26,672 Less deferred loan costs (1,357) (1,478) Less current portion (3,984) (3,943) Long-term debt $ 20,239 $ 21,251 Term Loans Wells Fargo Term Loans On October 27, 2020, the Company entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, lead arranger and book runner, and the lenders party thereto (the “Lenders”). Pursuant to the terms of the Credit Agreement, the Lenders made available to the Company secured term loans (the “WF Term Loans”) in the maximum aggregate principal amount of $18,500,000 ($16,790,000 of which was advanced to the Company on October 28, 2020). The proceeds from the WF Term Loans were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the financing. At the option of the Company, the WF Term Loans bears interest at a per annum rate equal to LIBOR plus a margin of 300 basis points or base rate plus a margin of 200 basis points. LIBOR rate means the greater of (a) 0.75% per annum and (b) the per annum published LIBOR rate for interest periods of one, three or six months as chosen by the Company. Base rate is the greater of (a) 1.0% per annum, (b) the Federal Funds Rate plus 0.5%, (c) LIBOR Rate plus 100 basis or (d) prime rate. The weighted average interest rate was 3.78% and 3.77% as of March 31, 2022 and December 31, 2021, respectively. The WF Term Loans are to be repaid in monthly installments of $200,000 plus interest, with the remaining outstanding balance due on November 30, 2024, subject to certain optional and mandatory repayment terms. The Company’s obligations under the WF Term Loans are unconditionally guaranteed by each of the Company’s U.S. and Canadian subsidiaries, with such obligations of the Company and such subsidiaries being secured by a lien on substantially all of their U.S. and Canadian assets. The WF Term Loans contains reporting, indebtedness, and financial covenants. The Company is in compliance with such covenants as of March 31, 2022. Voluntary prepayments of amounts outstanding under the WF Term Loans are permitted at any time without premium or penalty. To the extent applicable, LIBOR breakage fees may be charged in connection with any prepayment. FGI Equipment Finance LLC Term Loan On October 20, 2020, the Company entered into a Master Security Agreement, among FGI Equipment Finance LLC, (“FGI”) the Company as debtor, and each of Core Composites Corporation, a subsidiary of the Company organized in Delaware, and CC HPM, S. de R.L. de C.V., a subsidiary of the Company organized in Mexico, as guarantors, for a term loan in the principal amount of $13,200,000 (the “FGI Term Loan”), which loan is evidenced by a Promissory Note, dated October 20, 2020, executed by the Company in favor of FGI. On October 27, 2020, FGI advanced to the Company $12,000,000 which proceeds were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the transactions, and $1,200,000 which proceeds were used to fund a security deposit to be held by FGI. Interest on the FGI Term Loan is a fixed rate of 8.25% and is payable monthly. The security deposit of $1,200,000 is included in other assets in the Consolidated Balance Sheets. The FGI Term Loan is to be repaid in monthly principal and interest installments of $117,000 for the first 12 months, $246,000 for the subsequent 59 months and $1,446,000 due on October 31, 2026, subject to certain optional and mandatory repayment terms. The Company’s obligations under the Master Security Agreement are secured by certain machinery and equipment of the guarantors located in Mexico, and real property of Core Composites de Mexico, S. de R.L. de C.V.,a subsidiary of the Company organized in Mexico, located in Matamoros, Mexico. The Company may prepay in full or in part (but not less than the amount equal to 20% of the original principal amount of the loan) outstanding amounts before they are due on any scheduled Payment Date upon at least thirty (30) days’ prior written notice. The Company will pay a “Prepayment Fee” in an amount equal to an additional sum equal to the following percentage of the principal amount to be prepaid for prepayments occurring in the indicated period: four percent (4.0%) for prepayments occurring prior to the first anniversary of the FGI Term Loan; three percent (3.0%) for prepayments occurring on the first anniversary of the FGI Term Loan until the second anniversary of the FGI Term Loan; two percent (2.0%) for prepayments occurring on and after the second anniversary of the FGI Term Loan and prior to the third anniversary of the Loan; and one percent (1.0%) for prepayments occurring any time thereafter. Leaf Capital Funding On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment. The parties agreed to a fixed interest rate of 5.5% and a term of 60 months. Revolving Loans Wells Fargo Revolving Loan On October 27, 2020, the Company entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, lead arranger and book runner, and the lenders party thereto (the “Lenders”). Pursuant to the terms of the Credit Agreement, the Lenders made available to the Company a revolving loan commitment (the “WF Revolving Loan”) of $25,000,000 ($8,745,000 of which was advanced to the Company on October 28, 2020). The proceeds from the WF Revolving Loan were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the financing. The Credit Agreement also makes available to the Company an incremental revolving commitment in the maximum amount of $10,000,000 at the Company’s option at any time during the three-year period following the closing. The borrowing availability under the WF Revolving Loan is the lesser of (a) the loan commitment of $25,000,000 or (b) the sum of 90% of eligible investment grade accounts receivable, 85% of non-investment grade eligible accounts receivable and 65% of eligible inventory. At the option of the Company, the WF Revolving Loan bears interest at a per annum rate equal to LIBOR plus a margin of 200 to 250 basis points or base rate plus a margin of 100 to 150 basis points, with the margin rate being based on the excess availability amount under the line of credit. LIBOR rate means the greater of (a) 0.75% per annum and (b) the per annum published LIBOR rate for interest periods of one, three or six months as chosen by the Company. Base rate is the greater of (a) 1.0% per annum, (b) the Federal Funds Rate plus 0.5%, (c) LIBOR Rate plus 100 basis and (d) prime rate. The weighted average interest rate was 4.50% and 4.25% as of March 31, 2022 and December 31, 2021, respectively. The WF Revolving Loan commitment terminates, and all outstanding borrowings thereunder must be repaid, by November 30, 2024. The Company has $24,316,000 of available rate revolving loans of which $4,835,000 is outstanding as of March 31, 2022. As of December 31, 2021, the Company had $24,337,000 of available rate revolving loans of which $4,424,000 was outstanding. The WF Revolving Loan contains the same covenants as the WF Term Loans. Wells Fargo Bank will issue up to $2,000,000 of Letters of Credit in accordance with the terms of the Credit Agreement upon the Company’s request. As of March 31, 2022, the Company had one Letter of Credit outstanding for $160,000. Bank Covenants |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation | STOCK BASED COMPENSATION On May 13, 2021, The Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan allows for grants to employees, officers, non-employee directors, consultants, independent contractors and advisors of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards (“stock awards”) up to an aggregate of 712,364 awards. Awards can be granted under the 2021 Plan through the earlier of May 13, 2031, or the date the maximum number of available awards under the 2021 Plan have been granted. No new awards may be granted from the 2006 Plan. Awards under the 2021 Plan vest over one to three years and shares previously awarded and currently unvested under the 2006 Plan vest over three years. Shares granted under both the 2006 and 2021 Plans vest upon the date of a participant’s death, disability or change in control. Restricted Stock The Company grants shares of its common stock to certain directors, officers, key managers and employees in the form of unvested stock and units (“Restricted Stock”). These awards are measured at the fair value of the Company's common stock on the date of issuance and recognized ratably as compensation expense over the applicable vesting period, which is typically three years. The Company adjusts compensation expense for actual forfeitures, as they occur. The following summarizes the status of Restricted Stock and changes during the three months ended March 31, 2022: Number of Weighted Average Grant Date Fair Value Unvested balance at December 31, 2021 459,420 $ 9.79 Granted 2,322 8.62 Vested (34,422) 6.96 Forfeited — — Unvested balance at March 31, 2022 427,320 $ 10.01 At March 31, 2022 and 2021, there was $2,579,000 and $1,325,000, respectively, of total unrecognized compensation expense, related to Restricted Stock grants. The unrecognized compensation expense at March 31, 2022 is expected to be recognized over the weighted-average period of 1.9 years. Total compensation cost related to Restricted Stock grants for the three months ended March 31, 2022 and 2021 was $468,000 and $289,000, respectively. During the three months ended March 31, 2022 employees surrendered no shares of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted awards. Employees surrendered 3,874 shares for the three months ended March 31, 2021. Stock Appreciation Rights As part of the Company's 2019 annual grant, Stock Appreciation Rights ("SARs") were granted with a grant price of $10. These awards have a contractual term of five years and vest ratably over a period of three years or immediately vest if the recipient is over 65 of age. These awards are valued using the Black-Scholes option pricing model, and are recognized ratably as compensation expense over three years. A summary of the Company's stock appreciation rights activity for the three months ended March 31, 2022 is as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of December 31, 2021 177,016 $ 2.57 Granted — — Exercised — — Forfeited — — Outstanding at end of the period ended March 31, 2022 177,016 $ 2.57 Exercisable at end of the period ended March 31, 2022 124,801 $ 2.57 The average remaining contractual term for those SARs outstanding at March 31, 2022 is 2.1 years, with aggregate intrinsic value of $135,000. At March 31, 2022 and 2021, there was $11,000 and $149,000, respectively, of total unrecognized compensation expense, related to SARs. The total unrecognized compensation expenses as of March 31, 2022 is expected to be recognized over the weighted average period of 0.1 years. Total compensation cost related to SARs for the three months ended March 31, 2022 and 2021 was $33,000 and $30,000, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents changes in Accumulated Other Comprehensive Income, net of tax, for the three months ended March 31, 2022 and 2021 (in thousands): 2021: Post Retirement Benefit Plan Items (A) Balance at December 31, 2020 $ 1,375 Other comprehensive loss before reclassifications — Amounts reclassified from accumulated other comprehensive income (81) Income tax benefit 17 Balance at March 31, 2021 $ 1,311 2022: Balance at December 31, 2021 $ 1,075 Other comprehensive income before reclassifications — Amounts reclassified from accumulated other comprehensive income (81) Income tax benefit 17 Balance at March 31, 2022 $ 1,011 |
Critical Accounting Policies _2
Critical Accounting Policies and Estimates (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. |
Revenue Recognition | Revenue Recognition: The Company historically has recognized revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of sheet molding compounds and thermoset and thermoplastic products. Revenue from product sales is generally recognized as products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. In certain circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes control at our production facility. Tooling revenue is earned from manufacturing multiple tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over a given period. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools. Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be titled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Cash and Cash Equivalents: The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash is held primarily in three banks in three separate jurisdictions. The Company had $1,326,000 cash on hand at March 31, 2022 and had $6,146,000 cash on hand at December 31, 2021. |
Accounts Receivable Allowances | Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that a $32,000 allowance for doubtful accounts is needed at March 31, 2022 and $90,000 at December 31, 2021. Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $255,000 at March 31, 2022 and $222,000 at December 31, 2021. There have been no material changes in the methodology of these calculations. |
Inventories | Inventories: Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $451,000 at March 31, 2022 and $362,000 at December 31, 2021. |
Contract Assets/Liabilities | Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $443,000 at March 31, 2022, and $17,000 at December 31, 2021. Contract assets are generally classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the three months ended March 31, 2022, the Company recognized no impairments on contract assets. For the three months ended March 31, 2022, the Company recognized $432,000 amount of revenue from contract liabilities related to open jobs outstanding as of December 31, 2021. |
Income Taxes | Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more-likely-than-not to realize deferred tax benefits through the generation of future taxable income. |
Long-Lived Assets | Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates whether impairment exists for property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There were no impairment charges of the Company’s long-lived assets for the three months ended March 31, 2022 and March 31, 2021, respectively. |
Goodwill | Goodwill: The purchase consideration of acquired businesses has been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment. The annual impairment tests of goodwill may be completed through qualitative assessments; however, the Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period. Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, and capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a quantitative approach. There were no impairment charges of the Company's goodwill for the three months ended March 31, 2022 and March 31, 2021, respectively. |
Self-Insurance | Self-Insurance: The Company is self-insured with respect to its facilities in Columbus, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at March 31, 2022 and December 31, 2021 of $890,000 and $916,000, respectively. |
Derivative Instruments | The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and debt. Cash and cash equivalents, accounts receivable and accounts payable carrying values as of March 31, 2022 and December 31, 2021 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of the Company's debt with Wells Fargo Bank, National Association approximate fair value as of March 31, 2022 and December 31, 2021 due to the short term nature of the underlying variable rate LIBOR agreements. The Company's debt with FGI Equipment Finance, LLC approximates fair value as of March 31, 2022 and December 31, 2021 due to immaterial movement in interest rates since the Company entered into the Promissory Note on October 20, 2020. |
Post-retirement Benefits | Post-Retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Core Molding Technologies had a liability for post-retirement healthcare benefits based on actuarial computed estimates of $9,114,000 at March 31, 2022 and $9,080,000 at December 31, 2021. |
New Accounting Pronouncements, Policy |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net income per common share: | The computation of basic and diluted net income per common share (in thousands, except for per share data) is as follows: Three months ended 2022 2021 Net income $ 3,864 $ 3,456 Less: net income allocated to participating securities 97 204 Net income available to common shareholders $ 3,767 $ 3,252 Weighted average common shares outstanding — basic 8,268,000 7,985,000 Effect of weighted average dilutive securities — 7,000 Weighted average common and potentially issuable common shares outstanding — diluted 8,268,000 7,992,000 Basic net income per common share $ 0.46 $ 0.41 Diluted net income per common share $ 0.46 $ 0.41 The computation of basic and diluted net income per participating share is as follows (in thousands, except for per share data): Three months ended 2021 2020 Net income allocated to participating securities $ 97 $ 204 Weighted average participating shares outstanding — basic 213,000 500,000 Effect of dilutive securities — — Weighted average common and potentially issuable common shares outstanding — diluted 213,000 500,000 Basic net income per participating share $ 0.46 $ 0.41 Diluted net income per participating share $ 0.46 $ 0.41 |
Major Customers (Tables)
Major Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Concentration Risks, Types, No Concentration Percentage [Abstract] | |
Schedule of Major Customers | The following table presents sales revenue for the above-mentioned customers for the three months ended March 31, 2022 and 2021 (in thousands): Three months ended 2022 2021 BRP product sales $ 12,207 $ 8,568 BRP tooling sales 150 115 Total BRP sales 12,357 8,683 Navistar product sales 14,022 9,937 Navistar tooling sales 11 306 Total Navistar sales 14,033 10,243 PACCAR product sales 8,747 9,354 PACCAR tooling sales 111 329 Total PACCAR sales 8,858 9,683 UFP product sales 12,687 10,657 UFP tooling sales — — Total UFP sales 12,687 10,657 Volvo product sales 10,915 10,125 Volvo tooling sales 87 20 Total Volvo sales 11,002 10,145 Other product sales 31,323 20,492 Other tooling sales 332 2,926 Total other sales 31,655 23,418 Total product sales 89,901 69,133 Total tooling sales 691 3,696 Total sales $ 90,592 $ 72,829 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories, net consisted of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials $ 18,984 $ 17,160 Work in process 2,061 1,976 Finished goods 7,354 5,993 Total $ 28,399 $ 25,129 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows (in thousands): Three Months Ended 2022 2021 Operating lease cost $ 475 $ 368 |
Supplemental Balance Sheet Information | Other supplemental balance sheet information related to leases was as follows (in thousands): March 31, 2022 December 31, 2021 Operating lease right of use assets $ 5,081 $ 5,577 Current operating lease liabilities (A) $ 1,497 $ 1,489 Noncurrent operating lease liabilities (B) 3,688 4,024 Total operating lease liabilities $ 5,185 $ 5,513 (A) Current operating lease liabilities are included in accrued other liabilities (B) Noncurrent operating lease liabilities are included in other non-current liabilities The following table presents certain information related to lease terms and discount rates for leases: Operating leases March 31, 2022 December 31, 2021 Weighted average remaining lease term (in years): 3.9 4.2 Weighted average discount rate: 4.0 % 4.1 % Other information related to leases were as follows (in thousands): Three months ended 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases (C) $ 475 $ 368 (C) Cash flow from operating leases are included in prepaid and other assets in the Consolidated Statements of Cash Flows. |
Maturities of lease liabilities | Maturities of operating lease liabilities were as follows (in thousands): March 31, 2022 December 31, 2021 2022 (remainder of year) $ 1,203 $ 1,567 2023 1,511 1,468 2024 1,517 1,473 2025 803 783 2026 698 698 Total lease payments 5,732 5,989 Less: imputed interest (547) (476) Total lease obligations 5,185 5,513 Less: current obligations (1,497) (1,489) Long-term lease obligations $ 3,688 $ 4,024 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consisted of the following for the periods specified (in thousands): March 31, 2022 December 31, 2021 Property, plant and equipment $ 186,166 $ 183,500 Accumulated depreciation (110,120) (107,603) Property, plant and equipment — net $ 76,046 $ 75,897 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill activity | Goodwill activity for the three months ended March 31, 2022 consisted of the following (in thousands): Balance at December 31, 2021 $ 17,376 Additions — Impairment — Balance at March 31, 2022 $ 17,376 |
Schedule of Intangible assets | Intangibles, net at March 31, 2022 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (70) $ 180 Trademarks 10 Years 1,610 (678) 932 Non-competition agreement 5 Years 1,810 (1,523) 287 Developed technology 7 Years 4,420 (2,657) 1,763 Customer relationships 10-12 Years 9,330 (3,412) 5,918 Total $ 17,420 $ (8,340) $ 9,080 Intangibles, net at December 31, 2021 were comprised of the following (in thousands): Definite-lived Intangible Assets Amortization Period Gross Carrying Accumulated Net Carrying Trade name 25 Years $ 250 $ (68) $ 182 Trademarks 10 Years 1,610 (637) 973 Non-competition agreement 5 Years 1,810 (1,433) 377 Developed technology 7 Years 4,420 (2,499) 1,921 Customer relationships 10-12 Years 9,330 (3,216) 6,114 Total $ 17,420 $ (7,853) $ 9,567 |
Post Retirement Benefits (Table
Post Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Post Retirement Benefit Plans | The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands): Three months ended 2022 2021 Pension expense: Multi-employer plan $ 207 $ 189 Defined contribution plan 365 302 Total pension expense 572 491 Health and life insurance: Interest cost 50 41 Amortization of prior service credits (124) (124) Amortization of net loss 43 43 Net periodic benefit credit (31) (40) Total post-retirement benefits expense $ 541 $ 451 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-term debt | Debt consists of the following (in thousands): March 31, December 31, Wells Fargo term loans payable $ 13,392 $ 13,992 FGI term loans payable 12,077 12,561 Leaf Capital term loan payable 111 119 Total 25,580 26,672 Less deferred loan costs (1,357) (1,478) Less current portion (3,984) (3,943) Long-term debt $ 20,239 $ 21,251 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
The status of Restricted Stock and changes | The following summarizes the status of Restricted Stock and changes during the three months ended March 31, 2022: Number of Weighted Average Grant Date Fair Value Unvested balance at December 31, 2021 459,420 $ 9.79 Granted 2,322 8.62 Vested (34,422) 6.96 Forfeited — — Unvested balance at March 31, 2022 427,320 $ 10.01 |
Schedule of stock appreciation rights activity | A summary of the Company's stock appreciation rights activity for the three months ended March 31, 2022 is as follows: Number of Weighted Average Grant Date Fair Value Outstanding as of December 31, 2021 177,016 $ 2.57 Granted — — Exercised — — Forfeited — — Outstanding at end of the period ended March 31, 2022 177,016 $ 2.57 Exercisable at end of the period ended March 31, 2022 124,801 $ 2.57 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in Accumulated Other Comprehensive Income, net of tax, for the three months ended March 31, 2022 and 2021 (in thousands): 2021: Post Retirement Benefit Plan Items (A) Balance at December 31, 2020 $ 1,375 Other comprehensive loss before reclassifications — Amounts reclassified from accumulated other comprehensive income (81) Income tax benefit 17 Balance at March 31, 2021 $ 1,311 2022: Balance at December 31, 2021 $ 1,075 Other comprehensive income before reclassifications — Amounts reclassified from accumulated other comprehensive income (81) Income tax benefit 17 Balance at March 31, 2022 $ 1,011 |
Critical Accounting Policies _3
Critical Accounting Policies and Estimates (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Unusual or Infrequent Item, or Both [Line Items] | ||
Allowance for doubtful accounts | $ 32,000 | $ 90,000 |
Accounts receivable for chargebacks | 255,000 | 222,000 |
Allowance for slow moving and obsolete inventory | 451,000 | 362,000 |
Amount of revenue from contract liabilities related to open jobs outstanding | 432,000 | |
Estimated liability for compensation claims | 890,000 | 916,000 |
Liability for post retirement healthcare benefits | 9,114,000 | 9,080,000 |
Contract with Customer, Asset, after Allowance for Credit Loss, Current | 443,000 | 17,000 |
Cash and cash equivalents | $ 1,326,000 | $ 6,146,000 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Income (Loss) Available to Common Stockholders | ||
Net Income (Loss) Attributable to Parent | $ 3,864 | $ 3,456 |
Less: net income allocated to participating securities | 97 | 204 |
Net income available to common shareholders | $ 3,767 | $ 3,252 |
Weighted average common shares outstanding - basic (in shares) | 8,268,000 | 7,985,000 |
Effect of dilutive securities (in shares) | 0 | 7,000 |
Weighted average common and potentially issuable common shares outstanding - diluted (in shares) | 8,268,000 | 7,992,000 |
Basic net income per share (in dollars per share) | $ 0.46 | $ 0.41 |
Diluted net income per share (in dollars per share) | $ 0.46 | $ 0.41 |
Participating Securities | ||
Net Income (Loss) Available to Common Stockholders | ||
Less: net income allocated to participating securities | $ 97 | $ 204 |
Weighted average common shares outstanding - basic (in shares) | 213,000 | 500,000 |
Effect of dilutive securities (in shares) | 0 | 0 |
Weighted average common and potentially issuable common shares outstanding - diluted (in shares) | 213,000 | 500,000 |
Basic net income per share (in dollars per share) | $ 0.46 | $ 0.41 |
Diluted net income per share (in dollars per share) | $ 0.46 | $ 0.41 |
Major Customers (Details)
Major Customers (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)customer | Mar. 31, 2021USD ($) | |
Revenue, Major Customer [Line Items] | ||
Number of major customers | customer | 5 | |
Net sales | $ 90,592 | $ 72,829 |
Product | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 89,901 | 69,133 |
Tooling | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 691 | 3,696 |
UFP | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 12,687 | 10,657 |
UFP | Product | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 12,687 | 10,657 |
UFP | Tooling | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 0 | 0 |
Navistar | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 14,033 | 10,243 |
Navistar | Product | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 14,022 | 9,937 |
Navistar | Tooling | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 11 | 306 |
Volvo | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 11,002 | 10,145 |
Volvo | Product | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 10,915 | 10,125 |
Volvo | Tooling | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 87 | 20 |
PACCAR | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 8,858 | 9,683 |
PACCAR | Product | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 8,747 | 9,354 |
PACCAR | Tooling | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 111 | 329 |
BRP | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 12,357 | 8,683 |
BRP | Product | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 12,207 | 8,568 |
BRP | Tooling | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 150 | 115 |
Other Customers | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 31,655 | 23,418 |
Other Customers | Product | ||
Revenue, Major Customer [Line Items] | ||
Net sales | 31,323 | 20,492 |
Other Customers | Tooling | ||
Revenue, Major Customer [Line Items] | ||
Net sales | $ 332 | $ 2,926 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 18,984 | $ 17,160 |
Work in process | 2,061 | 1,976 |
Finished goods | 7,354 | 5,993 |
Total | $ 28,399 | $ 25,129 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Options to extend the lease, period | 5 years | ||
Weighted average discount rate, Operating leases | 4.00% | 4.10% | |
Weighted average remaining lease term, Operating leases | 3 years 10 months 24 days | 4 years 2 months 12 days | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 475 | $ 368 | |
Assets and Liabilities, Lessee [Abstract] | |||
Operating lease right of use assets | 5,081 | $ 5,577 | |
Current operating lease liabilities | $ 1,497 | $ 1,489 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current | |
Noncurrent operating lease liabilities | $ 3,688 | $ 4,024 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities | |
Total operating lease liabilities | $ 5,185 | $ 5,513 | |
Weighted average remaining lease term, Operating leases | 3 years 10 months 24 days | 4 years 2 months 12 days | |
Weighted average discount rate, Operating leases | 4.00% | 4.10% | |
Cash Flow, Operating Activities, Lessee [Abstract] | |||
Operating cash flows from operating leases | $ 475 | $ 368 | |
Lessee, Operating Lease, Description [Abstract] | |||
Operating leases to be paid in remainder of fiscal year | 1,203 | ||
Operating leases to be paid in year one | 1,511 | $ 1,567 | |
Operating leases to be paid in year two | 1,517 | 1,468 | |
Operating leases to be paid in year three | 803 | 1,473 | |
Operating leases to be paid in year four | 698 | 783 | |
Operating leases to be paid in year five | 698 | ||
Total lease payments | 5,732 | 5,989 | |
Less: imputed interest | (547) | (476) | |
Total operating lease liabilities | 5,185 | 5,513 | |
Less: current obligations | 1,497 | 1,489 | |
Long-term lease obligations | $ 3,688 | $ 4,024 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 4 years |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment | $ 186,166 | $ 183,500 | |
Accumulated depreciation | (110,120) | (107,603) | |
Property, plant and equipment — net | 76,046 | 75,897 | |
Depreciation expense | 2,517 | $ 2,482 | |
Capital additions in progress | 7,232 | $ 6,605 | |
Purchase commitments for capital expenditures in progress | $ 3,822 | $ 5,315 |
Goodwill and Intangibles - Good
Goodwill and Intangibles - Goodwill activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 17,376 |
Additions | 0 |
Impairment | 0 |
Ending balance | $ 17,376 |
Goodwill and Intangibles - Defi
Goodwill and Intangibles - Definite-lived Intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 17,420 | $ 17,420 | |
Accumulated Amortization | (8,340) | (7,853) | |
Net Carrying Amount | 9,080 | 9,567 | |
Intangible asset amortization expense | $ 487 | ||
Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 25 years | 25 years | |
Gross Carrying Amount | $ 250 | 250 | |
Accumulated Amortization | (70) | (68) | |
Net Carrying Amount | $ 180 | 182 | |
Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 10 years | 10 years | |
Gross Carrying Amount | $ 1,610 | 1,610 | |
Accumulated Amortization | (678) | (637) | |
Net Carrying Amount | $ 932 | 973 | |
Non-competition agreement | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 5 years | 5 years | |
Gross Carrying Amount | $ 1,810 | 1,810 | |
Accumulated Amortization | (1,523) | (1,433) | |
Net Carrying Amount | $ 287 | 377 | |
Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 7 years | 7 years | |
Gross Carrying Amount | $ 4,420 | 4,420 | |
Accumulated Amortization | (2,657) | (2,499) | |
Net Carrying Amount | 1,763 | 1,921 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 9,330 | 9,330 | |
Accumulated Amortization | (3,412) | (3,216) | |
Net Carrying Amount | $ 5,918 | $ 6,114 | |
Customer relationships | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 10 years | 10 years | |
Customer relationships | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 12 years | 12 years |
Post Retirement Benefits (Detai
Post Retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension, health and life insurance expense: | ||
Multi-employer plan | $ 207 | $ 189 |
Defined contribution plan | 365 | 302 |
Total pension expense | 572 | 491 |
Interest cost | 50 | 41 |
Amortization of prior service credits | (124) | (124) |
Amortization of net loss | 43 | 43 |
Net periodic benefit credit | (31) | (40) |
Total post-retirement benefits expense | 541 | $ 451 |
Pension Plan | ||
Pension, health and life insurance expense: | ||
Payments made to pension plans | 526 | |
Pension plan payments expected to be made in fiscal year | 2,179 | |
Pension plan payments accrued | 1,126 | |
Other Postretirement Benefits Plan | ||
Pension, health and life insurance expense: | ||
Payments for post retirement healthcare and life insurance | 31 | |
Pension plan payments expected to be made in fiscal year | 1,360 | |
Pension plan payments accrued | $ 1,360 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 25,580 | $ 26,672 |
Less deferred loan costs | (1,357) | (1,478) |
Less current portion | (3,984) | (3,943) |
Long-term debt | 20,239 | 21,251 |
Wells Fargo term loans payable | ||
Debt Instrument [Line Items] | ||
Total | 13,392 | 13,992 |
FGI term loans payable | ||
Debt Instrument [Line Items] | ||
Total | 12,077 | 12,561 |
Leaf Capital term loan payable | ||
Debt Instrument [Line Items] | ||
Total | $ 111 | $ 119 |
Debt - Term Loans (Narrative) (
Debt - Term Loans (Narrative) (Details) - USD ($) | Oct. 28, 2020 | Oct. 27, 2020 | Oct. 20, 2020 | Apr. 24, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||||||
Principal amount advanced | $ 1,092,000 | $ 688,000 | |||||
Loans Payable | Wells Fargo term loans payable | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 18,500,000 | ||||||
Weighted average interest rate | 3.78% | 3.77% | |||||
Monthly installments | $ 200,000 | ||||||
Loans Payable | Wells Fargo term loans payable | Keybank National Association | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount advanced | $ 16,790,000 | ||||||
Loans Payable | Wells Fargo term loans payable | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis points | 3.00% | ||||||
Stated interest rate | 0.75% | ||||||
Loans Payable | Wells Fargo term loans payable | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis points | 1.00% | ||||||
Loans Payable | Wells Fargo term loans payable | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis points | 2.00% | ||||||
Stated interest rate | 1.00% | ||||||
Loans Payable | Wells Fargo term loans payable | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis points | 0.50% | ||||||
Loans Payable | FGI term loans payable | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 13,200,000 | ||||||
Stated interest rate | 8.25% | ||||||
Security deposit | $ 1,200,000 | ||||||
Final payment | $ 1,446,000 | ||||||
Prepayment fee | 20.00% | ||||||
Loans Payable | FGI term loans payable | Period One | |||||||
Debt Instrument [Line Items] | |||||||
Monthly installments | $ 117,000 | ||||||
Debt term | 12 months | ||||||
Prepayment fee | 4.00% | ||||||
Loans Payable | FGI term loans payable | Period Two | |||||||
Debt Instrument [Line Items] | |||||||
Monthly installments | $ 246,000 | ||||||
Debt term | 59 months | ||||||
Prepayment fee | 3.00% | ||||||
Loans Payable | FGI term loans payable | Period Three | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment fee | 2.00% | ||||||
Loans Payable | FGI term loans payable | Period Four | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment fee | 1.00% | ||||||
Loans Payable | FGI term loans payable | Keybank National Association | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount advanced | $ 12,000,000 | ||||||
Loans Payable | Leaf Capital term loan payable | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 175,000 | ||||||
Stated interest rate | 5.50% | ||||||
Debt term | 60 months |
Debt - Revolving Loans (Narrati
Debt - Revolving Loans (Narrative) (Details) - USD ($) | Oct. 28, 2020 | Oct. 27, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||||
Principal amount advanced | $ 1,092,000 | $ 688,000 | |||
Loan balance | 25,580,000 | $ 26,672,000 | |||
Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Loan balance | $ 13,392,000 | $ 13,992,000 | |||
Revolving Credit Facility | Incremental Revolving Commitment | |||||
Debt Instrument [Line Items] | |||||
Revolving loan commitment | $ 10,000,000 | ||||
Debt term | 3 years | ||||
Revolving Credit Facility | Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Revolving loan commitment | $ 25,000,000 | ||||
Weighted average interest rate | 4.50% | 4.25% | |||
Available rate revolving loans | $ 24,316,000 | $ 1,351,000 | $ 24,337,000 | ||
Letters of credit outstanding | $ 160,000 | ||||
Revolving Credit Facility | Wells Fargo term loans payable | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Revolving loan commitment | $ 2,000,000 | ||||
Revolving Credit Facility | Wells Fargo term loans payable | Investment Grade | Accounts Receivable | |||||
Debt Instrument [Line Items] | |||||
Eligible investment grade | 90.00% | ||||
Revolving Credit Facility | Wells Fargo term loans payable | Investment Grade | Inventories | |||||
Debt Instrument [Line Items] | |||||
Eligible investment grade | 65.00% | ||||
Revolving Credit Facility | Wells Fargo term loans payable | Non Investment Grade | Accounts Receivable | |||||
Debt Instrument [Line Items] | |||||
Eligible investment grade | 85.00% | ||||
Revolving Credit Facility | Wells Fargo term loans payable | Keybank National Association | |||||
Debt Instrument [Line Items] | |||||
Principal amount advanced | $ 8,745,000 | ||||
Revolving Credit Facility | LIBOR | Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.00% | ||||
Revolving Credit Facility | LIBOR | Wells Fargo term loans payable | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 2.00% | ||||
Stated interest rate | 0.75% | ||||
Revolving Credit Facility | LIBOR | Wells Fargo term loans payable | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 2.50% | ||||
Revolving Credit Facility | Base Rate | Wells Fargo term loans payable | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.00% | ||||
Stated interest rate | 1.00% | ||||
Revolving Credit Facility | Base Rate | Wells Fargo term loans payable | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.50% | ||||
Revolving Credit Facility | Federal Funds Rate | Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.50% | ||||
Loans Payable | Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 3.78% | 3.77% | |||
Loans Payable | Wells Fargo term loans payable | Keybank National Association | |||||
Debt Instrument [Line Items] | |||||
Principal amount advanced | $ 16,790,000 | ||||
Loans Payable | LIBOR | Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Basis points | 3.00% | ||||
Stated interest rate | 0.75% | ||||
Loans Payable | LIBOR | Wells Fargo term loans payable | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.00% | ||||
Loans Payable | Base Rate | Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Basis points | 2.00% | ||||
Stated interest rate | 1.00% | ||||
Loans Payable | Federal Funds Rate | Wells Fargo term loans payable | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 1,638,000 | $ 1,351,000 |
Effective tax rate | 29.80% | 28.10% |
Valuation allowance against net deferred tax assets | $ 3,310,000 | |
Valuation Allowance [Line Items] | ||
Valuation allowance against net deferred tax assets | $ 3,310,000 | |
Effective tax rate | 29.80% | 28.10% |
UNITED STATES [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred Income Tax Liabilities, Net | $ 572,000 | |
MEXICO | ||
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Net | 841,000 | |
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Net | 841,000 | |
CANADA | ||
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Net | 252,000 | |
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Net | $ 252,000 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 712,364 | |
Unrecognized compensation expense | $ 11,000 | $ 149,000 |
Shares surrendered (in shares) | 3,874 | |
Grant price (in USD per share) | $ 10 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Applicable vesting period | 3 years | |
Unrecognized compensation expense | $ 2,579,000 | $ 1,325,000 |
Expected weighted-average term | 1 year 10 months 24 days | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average period costs are expected to be recognized | 1 month 6 days |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Number of Shares, Restricted Stock | |||
Unvested beginning balance (in shares) | 459,420 | ||
Granted (in shares) | 2,322 | ||
Vested (in shares) | (34,422) | ||
Forfeited (in shares) | 0 | ||
Unvested ending balance (in shares) | 427,320 | ||
Weighted Average Grant Date Fair Value, Restricted Stock | |||
Unvested beginning balance (in dollars per share) | $ 10.01 | $ 9.79 | |
Granted (in dollars per share) | 8.62 | ||
Vested (in dollars per share) | 6.96 | ||
Forfeited (in dollars per share) | 0 | ||
Unvested beginning balance (in dollars per share) | $ 10.01 | ||
General and Administrative Expense | |||
Weighted Average Grant Date Fair Value, Restricted Stock | |||
Compensation costs | $ 468 | $ 289 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Appreciation Rights (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Weighted Average Grant Date Fair Value | ||
Grant price (in USD per share) | $ 10 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 135,000 | |
Unrecognized compensation expense | $ 11,000 | $ 149,000 |
Stock Appreciation Rights (SARs) | ||
Number of Shares | ||
Beginning Balance (in shares) | 177,016 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Ending Balance (in shares) | 177,016 | |
Exercisable at the end of period (in shares) | 124,801 | |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 2.57 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Ending balance (in dollars per share) | 2.57 | |
Exercisable at the period end (in dollars per share) | $ 2.57 | |
Stock Appreciation Rights (SARs) | General and Administrative Expense | ||
Weighted Average Grant Date Fair Value | ||
Compensation costs | $ 33,000 | $ 30,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 100,095 | $ 93,932 |
Ending Balance | 104,397 | 97,595 |
Post Retirement Benefit Plan Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 1,075 | 1,375 |
Other comprehensive loss before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | (81) | (81) |
Income tax benefit | 17 | 17 |
Ending Balance | $ 1,011 | $ 1,311 |