Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 15, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Mayville Engineering Company, Inc. | ||
Entity Central Index Key | 0001766368 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | MEC | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-38894 | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-0944729 | ||
Entity Address, Address Line One | 715 South Street | ||
Entity Address, City or Town | Mayville | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53050 | ||
City Area Code | 920 | ||
Local Phone Number | 387-4500 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 20,059,390 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 153,276,957 | ||
Documents Incorporated by Reference | Part III of this report incorporates information by reference to the Registrant’s proxy statement for its 2021 annual meeting of shareholders, which proxy statement will be filed with the Securities and Exchange Commission no later than 120 days after the close of the year ended December 31, 2020. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 121 | $ 1 |
Receivables, net of allowances for doubtful accounts of $1,298 as of December 31, 2020 and $526 as of December 31, 2019 | 42,080 | 40,188 |
Inventories, net | 41,366 | 45,692 |
Tooling in progress | 3,126 | 1,589 |
Prepaid expenses and other current assets | 2,555 | 3,007 |
Total current assets | 89,248 | 90,477 |
Property, plant and equipment, net | 106,688 | 125,063 |
Assets held for sale | 3,552 | |
Goodwill | 71,535 | 71,535 |
Intangible assets-net | 61,467 | 72,173 |
Capital lease, net | 2,581 | 3,227 |
Other long-term assets | 3,462 | 1,107 |
Total | 338,533 | 363,582 |
LIABILITIES, TEMPORARY EQUITY, AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 33,495 | 32,173 |
Current portion of capital lease obligation | 626 | 598 |
Accrued liabilities: | ||
Salaries, wages, and payroll taxes | 10,190 | 5,752 |
Profit sharing and bonus | 3,089 | 6,229 |
Other current liabilities | 5,340 | 3,439 |
Total current liabilities | 52,740 | 48,191 |
Bank revolving credit notes | 45,257 | 72,572 |
Capital lease obligation, less current maturities | 2,061 | 2,687 |
Deferred compensation and long-term incentive, less current portion | 25,631 | 24,949 |
Deferred income tax liability | 11,887 | 14,188 |
Other long-term liabilities | 100 | 100 |
Total liabilities | 137,676 | 162,687 |
Commitments and contingencies (see Note 10) | ||
Common shares, no par value, 75,000,000 authorized, 21,093,035 shares issued at December 31, 2020 and 20,845,693 at December 31, 2019 | ||
Additional paid-in-capital | 190,793 | 183,687 |
Retained earnings | 14,998 | 22,090 |
Treasury shares at cost, 1,033,645 shares at December 31, 2020 and 1,213,482 at December 31, 2019 | (4,934) | (4,882) |
Total shareholders’ equity | 200,857 | 200,895 |
Total | $ 338,533 | $ 363,582 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Receivables, net of allowances for doubtful accounts | $ 1,298 | $ 526 |
Common Stock, No Par Value | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares, Issued | 21,093,035 | 20,845,693 |
Treasury stock at cost | 1,033,645 | 1,213,482 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||
Net sales | $ 95,344 | $ 91,075 | $ 62,582 | $ 108,605 | $ 102,331 | $ 128,511 | $ 145,130 | $ 143,732 | $ 357,606 | $ 519,704 | $ 354,526 |
Cost of sales | 84,267 | 81,340 | 63,736 | 96,762 | 98,297 | 113,941 | 124,595 | 124,153 | 326,105 | 460,986 | 303,948 |
Amortization of intangibles | 2,676 | 2,677 | 2,677 | 2,677 | 2,677 | 2,677 | 2,677 | 2,677 | 10,706 | 10,706 | 4,096 |
Profit sharing, bonuses, and deferred compensation | 3,443 | 2,288 | 1,194 | 1,325 | (153) | 678 | 22,830 | 1,750 | 8,250 | 25,105 | 8,058 |
Employee stock ownership plan expense | (675) | 675 | 953 | 1,500 | 1,500 | 1,500 | 5,453 | 4,000 | |||
Other selling, general and administrative expenses | 4,402 | 4,490 | 4,552 | 5,599 | 5,170 | 6,068 | 7,506 | 6,723 | 19,043 | 25,466 | 12,276 |
Contingent consideration revaluation | (9,598) | 2,674 | 869 | (6,054) | (21) | ||||||
Income (loss) from operations | 556 | 280 | (8,902) | 1,567 | (4,612) | 13,245 | (16,652) | 6,060 | (6,498) | (1,958) | 22,169 |
Interest expense | (558) | (647) | (637) | (826) | (918) | (987) | (1,991) | (2,832) | (2,668) | (6,728) | (3,879) |
Loss on extinguishment of debt | (154) | (154) | (814) | ||||||||
Income (loss) before taxes | (2) | (367) | (9,539) | 741 | (5,530) | 12,258 | (18,797) | 3,228 | (9,166) | (8,840) | 17,476 |
Income tax benefit | (973) | 733 | (2,525) | 691 | (3,857) | 2,512 | (3,513) | 769 | (2,074) | (4,088) | (459) |
Net income (loss) and comprehensive income (loss) | 971 | (1,100) | (7,014) | 50 | (1,673) | 9,746 | (15,284) | 2,459 | (7,092) | (4,753) | 17,935 |
Earnings (loss) per share | |||||||||||
Net income (loss) available to shareholders | $ 971 | $ (1,100) | $ (7,014) | $ 50 | $ (1,673) | $ 9,746 | $ (15,284) | $ 2,459 | $ (7,092) | $ (4,753) | $ 17,935 |
Basic and diluted earnings (loss) per share | $ 0.05 | $ (0.05) | $ (0.35) | $ 0 | $ (0.08) | $ 0.49 | $ (0.91) | $ 0.18 | $ (0.36) | $ (0.27) | $ 1.29 |
Basic and diluted weighted average shares outstanding | 20,451,203 | 20,077,039 | 19,902,912 | 19,533,533 | 19,711,921 | 19,740,296 | 16,799,915 | 13,443,484 | 19,898,122 | 17,447,464 | 13,891,301 |
Tax-adjusted pro forma information | |||||||||||
Net income (loss) available to shareholders | $ 971 | $ (1,100) | $ (7,014) | $ 50 | $ (1,673) | $ 9,746 | $ (15,284) | $ 2,459 | $ (7,092) | $ (4,753) | $ 17,935 |
Pro forma provision for income taxes | 103 | 70 | 173 | 4,663 | |||||||
Pro forma net income (loss) | $ (1,673) | $ 9,746 | $ (15,387) | $ 2,389 | $ (7,092) | $ (4,926) | $ 13,272 | ||||
Pro forma basic and diluted earnings (loss) per share | $ (0.08) | $ 0.49 | $ (0.92) | $ 0.18 | $ (0.36) | $ (0.28) | $ 0.96 | ||||
Basic and diluted weighted average shares outstanding | 20,451,203 | 20,077,039 | 19,902,912 | 19,533,533 | 19,711,921 | 19,740,296 | 16,799,915 | 13,443,484 | 19,898,122 | 17,447,464 | 13,891,301 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effective income tax rate reconciliation | 26.00% | 26.00% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | $ (7,092) | $ (4,753) | $ 17,935 | |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation | 21,383 | 22,296 | 16,372 | |
Amortization | 10,706 | 10,706 | 4,096 | |
Allowance for doubtful accounts | 772 | 284 | (48) | |
Inventory excess and obsolescence reserve | 80 | (60) | 90 | |
Stock-based compensation expense | 4,732 | 3,486 | ||
Costs recognized on step-up of acquired inventory | 395 | 583 | ||
Contingent consideration revaluation | (6,054) | (21) | ||
Loss (gain) on disposal of property, plant and equipment | 667 | (62) | (177) | |
Deferred compensation and long-term incentive | 682 | 11,598 | 4,466 | |
Loss (gain) on extinguishment or forgiveness of debt | (367) | 814 | ||
Non-cash adjustments | 358 | (237) | 128 | |
Changes in operating assets and liabilities – net of effects of acquisition: | ||||
Accounts receivable | (2,664) | 11,853 | 1,042 | |
Inventories | 4,246 | 8,886 | (6,873) | |
Tooling in progress | (1,537) | 729 | 489 | |
Prepaids and other current assets | 500 | (1,358) | (4,425) | |
Accounts payable | 515 | (11,010) | 834 | |
Deferred income taxes | (4,857) | (5,992) | ||
Accrued liabilities, excluding long-term incentive | 8,032 | (6,938) | 1,410 | |
Net cash provided by operating activities | 36,523 | 33,402 | 36,715 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of property, plant and equipment | (7,794) | (25,797) | (17,879) | |
Proceeds from sale of property, plant and equipment | 2,020 | 76 | 10 | |
Acquisitions, net of cash acquired | (2,369) | (114,700) | ||
Net cash used in investing activities | (5,774) | (28,090) | (132,569) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from bank revolving credit notes | 267,169 | 442,154 | 257,428 | |
Payments on bank revolving credit notes | (294,484) | (429,211) | (228,137) | |
Proceeds from issuance of other long-term debt | 167,094 | |||
Repayments of other long-term debt | (120,046) | (87,389) | ||
Deferred financing costs | (207) | (2,173) | ||
Proceeds from IPO, net | 101,763 | |||
Purchase of treasury stock | (2,509) | (2,591) | (7,833) | |
Payments on capital leases | (598) | (469) | (123) | |
Net cash provided by (used in) financing activities | (30,629) | (8,400) | 98,867 | |
Net increase (decrease) in cash and cash equivalents | 120 | (3,088) | 3,013 | |
Cash and cash equivalents, beginning of year | 1 | 3,089 | 76 | |
Cash and cash equivalents, end of year | 121 | 1 | 3,089 | |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 3,011 | 6,629 | 4,117 | |
Cash paid for taxes | 744 | 544 | 54 | |
In conjunction with the DMP acquisition, fair value of assets acquired and liabilities assumed were as followed: | ||||
Fair value of assets acquired, net of cash acquired | [1] | 167,781 | ||
Liabilities assumed | [1] | (53,081) | ||
Cash paid for acquisition, net of cash acquired | [1] | 114,700 | ||
Non-cash construction in progress in accounts payable | $ 1,559 | $ 2,809 | $ 1,240 | |
[1] | 2019 relate to net working capital true-ups |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Treasury Shares [Member] | Retained Earnings [Member] |
Beginning, Balance at Dec. 31, 2018 | ||||
Transfer from temporary equity (see Note 17) | 105,845 | 133,806 | (57,659) | 29,698 |
Share issuance – IPO | 101,763 | 101,763 | ||
Cancellation of treasury stock | (55,369) | 55,369 | ||
Net loss | (4,753) | |||
Share repurchases | (2,592) | (2,592) | ||
Stock-based compensation expense | 3,486 | 3,486 | ||
Net loss post IPO | (7,609) | (7,609) | ||
Ending, Balance at Dec. 31, 2019 | 200,895 | 183,687 | (4,882) | 22,089 |
Net loss | (7,092) | (7,092) | ||
Share repurchases | (2,509) | (2,509) | ||
ESOP contribution | 4,831 | 2,374 | 2,457 | |
Stock-based compensation expense | 4,732 | 4,732 | ||
Ending, Balance at Dec. 31, 2020 | $ 200,857 | $ 190,793 | $ (4,934) | $ 14,998 |
Nature of business and summary
Nature of business and summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of business and summary of significant accounting policies | Note 1. Nature of business and summary of significant accounting policies Mayville Engineering Company, Inc. and subsidiaries (MEC, the Company, we, our, us or similar terms) is a leading U.S.-based value-added manufacturing partner that provides a broad range of prototyping and tooling, production fabrication, coating, assembly and aftermarket components. Our customers operate in diverse end markets, including heavy- and medium-duty commercial vehicle, construction & access equipment, powersports, agriculture, military and other end markets. Founded in 1945 and headquartered in Mayville, Wisconsin, we are a leading Tier I U.S. supplier of highly engineered components to original equipment manufacturers (OEM) customers with leading positions in their respective markets. The Company operates 19 facilities located in Arkansas, Michigan, Mississippi, Ohio, Pennsylvania, Virginia, and Wisconsin. Our engineering expertise and technical know-how allow us to add value through every product redevelopment cycle (generally every three to five years for our customers). In December 1985, the Company formed the Mayville Engineering Company, Inc. Employee Stock Ownership Plan (ESOP). The ESOP is a tax qualified retirement plan and is designed to invest primarily in the Company’s common stock which is held in a Trust. From January 2003 until the Company’s IPO in May 2019, the ESOP owned 100% of the Company’s outstanding shares of common stock which have been fully allocated to active or retired eligible employees. In connection with the IPO, the Company initially sold 6,250,000 shares of common stock into the public market, reducing ESOP ownership to approximately 67%. As of December 31, 2020, 55.2% of all outstanding shares were held by the ESOP or within the Company’s 401(k) plan. Basis of presentation and consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). They include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly-liquid investments purchased with original maturities of 90 days or less to be cash and cash equivalents. Concentration of credit risk Financial instruments that potentially subject the Company to credit risk consist principally of bank balances above the Federal Deposit Insurance Corporation (FDIC) insurability limits of $250 per official custodian. The Company has not experienced any losses on these accounts and management believes the Company is not exposed to any significant credit risk on cash. Accounts receivable Accounts receivable are generally uncollateralized customer obligations due under normal trade terms requiring payment within 30 to 60 days from the invoice date. Management periodically reviews past due balances and established an allowance for doubtful accounts of approximately $1,298 and $526 as of December 31, 2020 and 2019, respectively, for probable uncollectible amounts based on its assessment of the current status of individual accounts. The estimated valuation allowance results in a charge to cost of sales and the accounts are written-off through a charge to the valuation allowance and a credit to accounts receivable after the Company has used all reasonable collection efforts. Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out method (FIFO), and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Work-in-process and finished goods are valued at production cost consisting of material, labor and overhead. The Company maintains a reserve for obsolete and slow-moving inventory of approximately $3,199 and $3,119 as of December 31, 2020 and 2019, respectively, which is based upon the aging of current inventory as well as assumptions on future demand and market conditions. Tooling in progress The Company has agreements with its customers to provide production tooling which will be used to produce specific parts for its customers. The costs to design, engineer, and manufacture the tooling are charged to tooling in progress as incurred and based on when control of the tooling is promised under contract, is transferred to the customer either at a point in time or over a period of time is when revenue is recognized. The Company may also provide production tooling that is not sold to customers but is capitalized in property, plant and equipment. To the extent that estimated costs exceed expected reimbursement from the customer, the Company recognizes a loss. Tooling in progress was $3,126 and $1,589 as of December 31, 2020 and 2019, respectively. Property, plant and equipment Property, plant and equipment are stated at cost. Expenditures for additions and improvements are capitalized while replacements, maintenance and repairs which do not improve or extend the lives of the respective assets are expensed as incurred. Properties sold, or otherwise disposed of, are removed from the property accounts, with gains or losses on disposal credited or charged to the results of operations. Depreciation is provided over the estimated useful lives of the respective assets, using the straight-line depreciation method for financial reporting purposes and begins when the asset is placed into service. Depreciation expense for the twelve months ended December 31, 2020, 2019 and 2018 was $21,383, $22,296 and $16,372, respectively, and is included in cost of sales on the Consolidated Statements of Comprehensive Income (Loss). Business combinations The Company accounts for all business combinations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, “Business Combinations”. In connection with a business combination, the acquiring company must allocate the cost of the acquisition to assets acquired and liabilities assumed based on fair values as of the acquisition date. Any excess or shortage of amounts assigned to assets and liabilities over or under the purchase price is recorded as a gain on bargain purchase or goodwill. Transaction costs associated with acquisitions are expensed as incurred within selling, general and administrative expenses. Goodwill We test goodwill for impairment annually, or more frequently if triggering events occur indicating that there may be an impairment. We have recorded goodwill and perform testing for potential goodwill impairment at a reporting unit level. A reporting unit is an operating segment, or a business unit one level below an operating segment for which discrete financial information is available, and for which management regularly reviews the operating results. Additionally, components within an operating segment can be aggregated as a single reporting unit if they have similar economic characteristics. We have performed testing on our one reporting unit. We determine the fair value of our reporting units using multiple valuation methodologies, relying largely on an income approach but also incorporating value indicators from a market approach. Under the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. The income approach is dependent on several key management assumptions, including estimates of future sales, gross margins, operating costs, interest expense, income tax rates, capital expenditures, changes in working capital requirements and the weighted average cost of capital or the discount rate. Discount rate assumptions include an assessment of the risk inherent in the future cash flows of the reporting unit. Expected cash flows used under the income approach are developed in conjunction with our budgeting and forecasting process. Under the market approach, we estimate fair value of the reporting units using EBITDA multiples. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics as the respective reporting units. We test our goodwill for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that it might be impaired. Due to the economic conditions during the second quarter of 2020 as a result of the COVID-19 pandemic, we determined that an impairment triggering event occurred, which required an interim quantitative impairment assessment of goodwill. Based on our interim quantitative assessments, the fair value of our reporting unit exceeded our related carrying value by more than 50%, thus no impairment of goodwill was indicated. We also performed our annual qualitative goodwill impairment test during the fourth quarter of fiscal 2020, consistent with the timing of 2019. At December 31, 2020, the Company had goodwill with a carrying amount of $71,535. The fair value substantially exceeded the carrying value for 2020. If the market valuation of our common shares or operating results of our reporting unit significantly decline beyond current levels, we may again need to conduct an evaluation of the fair value of our goodwill, which may result in an impairment change. Changes to management assumptions and estimates utilized in the income and market approaches could negatively impact the fair value conclusions for our reporting units resulting in goodwill impairment. All key assumptions and valuations are determined by and are the responsibility of management. The factors used in the impairment analysis are inherently subject to uncertainty. We believe that the estimates and assumptions are reasonable to determine the fair value of our reporting units, however, if actual results are not consistent with these estimates and assumptions, goodwill and other intangible assets may be overstated which could trigger an impairment charge. Fair Value of Financial Instruments Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The carrying amount of all significant financial instruments approximates fair value due to either the short maturity or the existence of variable interest rates that approximate prevailing market rates. Cash and cash equivalents, accounts receivable and accounts payable are classified as Level 1 fair value inputs as further described in Note 15. Long-term debt is classified as a Level 2 fair value input. Impairment of long-lived assets When events or conditions warrant, the Company evaluates the recoverability of long-lived assets and considers whether these assets are impaired. The Company assesses the recoverability of these assets based on several factors, including management’s intention with respect to these assets and their projected undiscounted cash flows. If projected undiscounted cash flows are less than the carrying amount of the respective assets, the Company adjusts the carrying amounts of such assets to their estimated fair value. To the extent that the carrying value of the net assets of a reportable unit is greater than the estimated fair value, the Company may be required to record impairment charges. Deferred financing costs Loan issuance costs and discounts are capitalized upon the issuance of long-term debt and amortized over the life of the related debt and are presented as a reduction of the associated long-term debt on the Consolidated Balance Sheets. Loan issuance costs associated with revolving debt arrangements are presented as a component of other assets. Loan issuance costs incurred in connection with revolving debt arrangements are amortized using the straight-line method over the life of the credit agreement. Loan issuance costs and discounts incurred in connection with term debt are amortized using the effective interest method. Amortization of deferred loan issuance costs and discounts are included in interest expense. During 2020, 2019 and 2018, the Company recorded $207, $142 and $2,173, respectively of deferred financing costs associated with its long-term debt and line of credit arrangements. Amortization expense associated with the deferred debt issuance costs and discounts in 2020, 2019 and 2018 was approximately $358, $381 and $198. Accumulated amortization was approximately $616, $474 and $114 as of December 31, 2020, 2019 and 2018, respectively. Amendments made to existing debt in 2020, 2019 and 2018 resulted in the write-offs of $zero, $154 and $814, respectively of unamortized costs associated with the debt that was replaced. Revenue recognition The Company adopted ASC 606 January 1, 2019, where the Company recognizes revenue for the transfer of goods or services to a customer in an amount that reflects the consideration it expects to receive in exchange for those goods or services. When goods are shipped, the customer takes ownership at shipment, and this is when control transfers. Sales are supported by documentation such as supply agreements and purchase order, which specify certain terms and conditions including product specifications, quantities, fixed prices, delivery dates and payments terms. Revenue related to services is recognized in the period services are performed, thus the Company recognizes revenue at a point in time. There are many customers where the Company designs, engineers and builds production tooling, which is purchased by the customer. Most of the tooling revenue is complete at the point the customer signs off on the product through the Product Part Approval Process (PPAP) and the tool is placed into service. Revenue is recognized when control of the tooling promised under a contract is transferred to the customer either at a point in time or over a period of time in an amount that reflects the consideration to which the Company expects to be entitled in exchange for the goods or services. The Company offers certain customers discounts for early payments. These discounts are recorded against net sales in the consolidated statement of comprehensive income and accounts receivable in the Consolidated Balance Sheets. The Company does not offer any other customer incentives, rebates or allowances. Shipping and handling The Company expenses shipping and handling costs as incurred. These costs are generally comprised of salaries and wages, shipping supplies and warehouse costs. Inbound freight costs, which mostly relate to raw materials, are included in cost of sales on the Consolidated Statements of Comprehensive Income (Loss). Outbound freight costs, which mostly relate to sales, are included in net sales on the Consolidated Statements of Comprehensive Income (Loss). The Company does not charge customers nor recognize revenue for shipping and handling. The Company’s OEM customers arrange and pay the freight for delivery. Advertising The Company expenses the costs of advertising when incurred. Advertising expense was approximately $100, $110 and $116 for the twelve months ended December 31, 2020, 2019 and 2018, respectively. Advertising costs are charged to selling, general and administrative expenses. Income Taxes Income taxes and uncertain tax positions are accounted for in accordance with ASC 740, “Accounting for Income Taxes”. Deferred income taxes are provided for the differences between the bases of assets and liabilities for financial reporting and income tax purposes. The Company measures deferred tax assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse and recognizes the effect of a change in enacted rates in the period of enactment. Tax positions meeting the more-likely-than-not recognition threshold are measured pursuant to the guidance set forth in ASC 740. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. See Note 9 “Income Taxes” of these Notes to Consolidated Financial Statements for further discussion. Earnings (loss) per share The Company computes basic earnings (loss) per share by dividing net income (loss) available to shareholders by the actual weighted average number of common shares outstanding for the reporting period. The dilutive impact to basic earnings per share considers the impact to earnings if all convertible securities were exercised or outstanding that do not have an antidilutive impact on earnings per share. Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Subsequent reissuance of shares to the ESOP are recorded as a reduction to treasury stock and as ESOP expense in the Consolidated Statements of Comprehensive Income (Loss). Recent Accounting Pronouncements In May 2014, FASB issued Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers Principal versus Agent Considerations , Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business In January 2017, the FASB issued ASU, 2017-04, Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement In December 2019, the FASB issued ASU 2019-12, Income Taxes |
IPO
IPO | 12 Months Ended |
Dec. 31, 2020 | |
Initial Public Offering [Abstract] | |
IPO | Note 2. IPO The IPO of shares of the Company’s common stock was completed in May 2019. In connection with the offering, the Company initially sold 6,250,000 shares of common stock at $17 per share generating proceeds of $99,344, net of underwriting discounts and commissions. Additional shares were also sold under an option granted to the underwriters that same month, resulting in a sale of an additional 152,209 shares of common stock at $17 per share, generating additional proceeds of $2,419, net of underwriting discounts and commissions In conjunction with the IPO, the Company issued a stock dividend specific to pre-IPO shares, of approximately 1,334.34-for-1, resulting in the conversion of 10,075 shares in our Employee Stock Ownership Plan to 13,443,484 shares. |
Select balance sheet data
Select balance sheet data | 12 Months Ended |
Dec. 31, 2020 | |
Select Balance Sheet Data [Abstract] | |
Select balance sheet data | Note 3. Select balance sheet data Inventory Inventories as of December 31, 2020 and December 31, 2019 consist of: December 31, 2020 December 31, 2019 Finished goods and purchased parts $ 24,561 $ 28,664 Raw materials 11,266 10,834 Work-in-process 5,539 6,194 Total $ 41,366 $ 45,692 Property, plant and equipment Property, plant and equipment as of December 31, 2020 and December 31, 2019 consist of: Useful Lives Years December 31, 2020 December 31, 2019 Land Indefinite $ 1,033 $ 1,264 Land improvements 15-39 3,169 3,169 Building and building improvements 15-39 55,172 58,021 Machinery, equipment and tooling 3-10 199,854 204,248 Vehicles 5 3,778 3,738 Office furniture and fixtures 3-7 16,242 15,469 Construction in progress N/A 3,931 3,154 Total property, plant and equipment, gross 283,179 289,063 Less accumulated depreciation 176,491 164,000 Total property, plant and equipment, net $ 106,688 $ 125,063 Additionally, the Company completed the closure of its Greenwood, SC manufacturing facility during the third quarter of the current period. The net amount of property, plant and equipment associated with the facility was $3,552, which is classified in assets held for sale on the Consolidated Balance Sheets as of December 31, 2020. Goodwill We test our goodwill for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that it might be impaired. Due to the economic conditions during the second quarter of 2020 as a result of the COVID-19 pandemic, we determined that an impairment triggering event occurred, which required an interim quantitative impairment assessment of goodwill. Based on our interim quantitative assessments, the fair value of our reporting unit exceeded our related carrying value by more than 50%, thus no impairment of goodwill was indicated. We also performed our annual qualitative goodwill impairment test during the fourth quarter of fiscal 2020, consistent with the timing of 2019. At December 31, 2020, the Company had goodwill with a carrying amount of $71,535. The fair value substantially exceeded the carrying value for 2020. Changes in goodwill between December 31, 2019 and December 31, 2020 consist of: Balance as of December 31, 2019 $ 71,535 Impairment — Balance as of December 31, 2020 $ 71,535 Intangible Assets The following is a listing of intangible assets, the useful lives in years (amortization period) and accumulated amortization as of December 31, 2020 and December 31, 2019: Useful Lives Years December 31, 2020 December 31, 2019 Amortizable intangible assets: Customer relationships and contracts 9-12 $ 78,340 $ 78,340 Trade name 10 14,780 14,780 Non-compete agreements 5 8,800 8,800 Patents 19 24 24 Accumulated amortization (44,288 ) (33,582 ) Total amortizable intangible assets, net 57,656 68,362 Non-amortizable brand name 3,811 3,811 Total intangible assets, net $ 61,467 $ 72,173 Non-amortizable brand name is tested annually for impairment. Changes in intangible assets between December 31, 2019 and December 31, 2020 consist of: Balance as of December 31, 2019 $ 72,173 Amortization expense (10,706 ) Balance as of December 31, 2020 $ 61,467 Amortization expense was $10,706, $10,706 and $4,096 for the twelve months ended December 31, 2020, 2019 and 2018 respectively. Future amortization expense is expected to be as followed: Year ending December 31, 2021 $ 10,706 2022 $ 6,952 2023 $ 6,866 2024 $ 5,192 2025 $ 5,192 Thereafter $ 22,748 |
Bank revolving credit notes
Bank revolving credit notes | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Bank revolving credit notes | Note 4. Bank revolving credit notes On September 26, 2019, and as last amended as of June 30, 2020, we entered into an amended and restated credit agreement (Credit Agreement) with certain lenders and Wells Fargo Bank, National Association, as administrative agent (the Agent). The Credit Agreement provides for a $200,000 revolving credit facility (the Revolving Loan), with a letter of credit sub-facility in an aggregate amount not to exceed $5,000, and a swingline facility in an aggregate amount of $20,000. The Credit Agreement also provides for an additional $100,000 of capacity through an accordion feature. All amounts borrowed under the Credit Agreement mature on September 26, 2024. The Credit Agreement contains usual and customary negative covenants for agreements of this type, including, but not limited to, restrictions on our ability to, subject to certain exceptions, create, incur or assume indebtedness, create or incur liens, make certain investments, merge or consolidate with another entity, make certain asset dispositions, pay dividends or other distributions to shareholders, enter into transactions with affiliates, enter into sale leaseback transactions or make capital expenditures. The Credit Agreement also requires us to satisfy certain financial covenants, including a minimum interest coverage ratio of 3.00 to 1.00 as well as a consolidated total leverage ratio not to exceed 3.25 to 1.00, although such leverage ratio can be increased in connection with certain acquisitions. In order to provide a means of insurance against future macroeconomic events, we entered into an amendment (Second Amendment) to the Credit Agreement on June 30, 2020. The Second Amendment provides the Company with temporary changes to the total leverage ratio covenant for the period from June 30, 2020, through December 31, 2021, or such earlier date as the Company may elect (Covenant Relief Period), in return for certain increases in interest rates, fees and restrictions on certain activities of the Company, including capital expenditures, acquisitions, dividends and share repurchases. New pricing, which takes effect for the quarters ending on and after September 30, 2020, includes interest at a fluctuating London Interbank Offered Rate (LIBOR) (at a floor of 75 basis points), plus 1.00% to 2.75%, along with the commitment fee ranging from 20 to 50 basis points. During the Covenant Relief Period, the required ceiling on the Company’s total leverage ratio will be 4.25 to 1.00 for quarters ending June 30, 2020 through and including December 31, 2020, and will decline in quarterly increments to 3.25 to 1.00 through the quarter ending December 31, 2021. At December 31, 2020, our consolidated total leverage ratio was 1.46 to 1.00 as compared to a covenant maximum of 4.25 to 1.00 in accordance with the Second Amendment of the Credit Agreement. At December 31, 2020, our interest coverage ratio was 9.07 to 1.00 as compared to a covenant minimum of 3.00 to 1.00 under the Credit Agreement. Under the Credit Agreement, interest is payable quarterly at the adjusted LIBOR plus an applicable margin based on the current funded indebtedness to adjusted EBITDA ratio. The interest rate was 2.50% and 3.25% as of December 31, 2020 and December 31, 2019, respectively. Additionally, the agreement has a fee on the average daily unused portion of the aggregate unused revolving commitments. This fee was 0.20% as of December 31, 2020 and December 31, 2019. The Company was in compliance with all financial covenants of its credit agreements as of December 31, 2020 and December 31, 2019. The amount borrowed on the revolving credit notes was $45,257 and $72,572 as of December 31, 2020 and December 31, 2019, respectively. |
Capital lease obligation
Capital lease obligation | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Capital lease obligation | Note 5. Capital lease obligation Capital leases consist of equipment with a capitalized cost of $3,825 at December 31, 2020 and December 31, 2019, and accumulated depreciation of $1,245 and $598 at December 31, 2020 and December 31, 2019, respectively. Depreciation of $644 and $503 was recognized on the capital lease assets during the twelve months ended December 31, 2020 and December 31, 2019, respectively. Non-cash capital lease transactions amounted to zero, $1,776 and $2,051, for the twelve months ended December 31, 2020, 2019 and 2018, respectively. Future minimum lease payments required under the lease are as follows: Year ending December 31, 2021 $ 734 2022 734 2023 734 2024 514 2025 227 Thereafter — Total 2,943 Less payment amount allocated to interest 256 Present value of capital lease obligation $ 2,687 Current portion of capital lease obligation 626 Long-term portion of capital lease obligation 2,061 Total capital lease obligation $ 2,687 |
Operating lease obligation
Operating lease obligation | 12 Months Ended |
Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Operating lease obligation | Note 6. Operating lease obligation Operating leases relate to property, plant and equipment. Future minimum lease payments required under the lease are as follows: Year ending December 31, 2021 $ 3,256 2022 2,366 2023 2,294 2024 1,501 2025 895 Thereafter 2,162 Total $ 12,474 The Company leases certain office space, warehousing facilities, equipment and vehicles under operating lease arrangements with third-party lessors. These lease arrangements expire at various times through December 2028. Total rent expense under the arrangements was approximately $4,471, $4,801 and $2,052 for the twelve months ended December 31, 2020, 2019, and 2018, respectively. |
Employee stock ownership plan
Employee stock ownership plan | 12 Months Ended |
Dec. 31, 2020 | |
Employee Stock Ownership Plan E S O P Shares In E S O P [Abstract] | |
Employee stock ownership plan | Note 7. Employee stock ownership plan Under the ESOP, the Company can make annual contributions to the trust for the benefit of eligible employees in the form of cash or shares of common stock of the Company. Prior to December 31, 2019, the annual contribution was discretionary except that it must have been at least 3% of the compensation for all safe harbor participants for the plan year. Beginning on January 1, 2020, all contributions are discretionary. For the twelve months ended December 31, 2020, 2019 and 2018, the Company’s ESOP expense amounted to zero, $5,453 and $4,000, respectively. At various times following death, disability, retirement, termination of employment or the exercise of diversification rights, an ESOP participant is entitled to receive their ESOP account balance in accordance with various distribution methods as permitted under the policies adopted by the ESOP. Prior to the IPO, all distributions were paid to participants in cash. As of December 31, 2020, and December 31, 2019, the ESOP shares consisted of 9,920,774 and 11,790,113 in allocated shares, respectively. Prior to its IPO, the Company was obligated to repurchase shares in the trust that were not distributed to ESOP participants as determined by the ESOP trustees, and thus the shares were mandatorily redeemable. Subsequent to the IPO, shares are sold in the public market. |
Retirement plans
Retirement plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Note 8. Retirement plans The Mayville Engineering Company, Inc. 401(k) Plan (the 401(k) Plan) covers substantially all employees meeting certain eligibility requirements. The 401(k) Plan is a defined contribution plan and is intended for eligible employees to defer tax-free contributions to save for retirement. Employees may contribute up to 50% of their eligible compensation plan to the 401(k) Plan, subject to the limits of Section 401(k) of the Internal Revenue Code. The 401(k) Plan also provides for employer discretionary profit sharing contributions and the Board of Directors authorized discretionary profit sharing contributions of approximately $1,833, zero and $696 for the twelve months ended December 31, 2020, 2019 and 2018, respectively, that are funded in the subsequent years. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 9. Income taxes Income taxes are included in the Consolidated Statements of Comprehensive Income (Loss) at December 31, 2020 and 2019 as below: December 31, 2020 December 31, 2019 Current income tax expense (benefit) U.S Federal $ 129 $ 401 State 98 1,544 Total 227 1,945 Deferred income tax expense (benefit) U.S Federal (2,457 ) (4,197 ) State 156 (1,836 ) Total (2,301 ) (6,033 ) Total income tax benefit $ (2,074 ) $ (4,088 ) A reconciliation of the statutory federal income tax expense to the income tax expense from continuing operations provided at December 31, 2020 and 2019, is as follows: December 31, 2020 December 31, 2019 Income tax expense at the federal statutory rate - 21% $ (1,925 ) $ (1,854 ) State and local income taxes - net of federal income tax benefits 79 (58 ) Compensation deduction limitation - section 162(m) adjustment (113 ) 357 Income taxed by shareholder before IPO (387 ) (867 ) Other - perms 51 77 Transaction costs — 607 Change in tax status — (2,355 ) Tax credits generated (409 ) (254 ) Uncertain tax positions - current year 106 — Uncertain tax positions - prior year 115 — Loan fee amortization 698 — Stock compensation 764 — Section 481(a) adjustments (184 ) — Fixed assets (452 ) — State tax return to provision (121 ) — Other miscellaneous tax (296 ) 259 Total income tax benefit $ (2,074 ) $ (4,088 ) Effective tax rate 22.6 % 47.5 % The Company’s two legacy businesses, MEC and DMP, filed separate returns prior to the IPO on May 9, 2019. Previous to this date, the MEC legacy business was an S Corporation where the tax burden was born by the shareholders and the DMP legacy business was a consolidated C-Corporation. The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are presented below: December 31, 2020 December 31, 2019 Deferred tax assets: Deferred compensation $ 8,295 $ 8,645 Inventory adjustments 1,506 1,837 Accrued expenses 409 211 Credits 508 279 Net operating loss 2,626 3,120 Other 338 — Total deferred tax assets 13,682 14,092 Deferred tax liabilities: Property, plant and equipment 9,485 8,354 Intangibles 15,773 19,305 Inventory adjustment — — Other 311 622 Total deferred tax liabilities 25,569 28,281 Valuation allowance — — Net deferred tax liability $ (11,887 ) $ (14,188 ) Consolidated federal net operating loss carryforwards are $11,833 and do not expire. In addition, the Company has consolidated and separate company net operating loss carryforwards of $2,042 in various states. Uncertain Tax Positions The Company has recorded a reserve of uncertain tax positions expected to be taken on its December 31, 2020 return as well as prior years. The Company does not anticipate that there will be a material change in the balance of the unrecognized tax benefits in the next twelve months. Any interest and penalties related to uncertain tax positions are recorded in income tax expense. No amounts have been recorded as tax expense for interest and penalties for the year ended December 31, 2020 as the amount for the utilized portion of the research and development credit on the Wisconsin return is considered to be immaterial. At December 31, 2020, a total of $208 of unrecognized tax benefits would, if recognized, impact the company's effective tax rate. The Company files income tax returns in the United States federal jurisdiction and in various state and local jurisdictions. Federal tax returns for tax years beginning January 1, 2017, and state tax returns beginning January 1, 2016, are open for examination. Details of Unrecognized Tax Benefits The following is a reconciliation of beginning and ending amounts of unrecognized tax benefits: Balance as of December 31, 2019 $ — Increase from current year tax positions 106 Increase from prior year tax positions 115 Decrease from settlements with tax authority — Decrease from expiration of statute of limitations — Balance as of December 31, 2020 $ 221 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | Note 10. Contingencies From time to time, the Company may be involved in various claims and lawsuits, both for and against the Company, arising in the normal course of business. Although the results of litigation and claims cannot be predicted with certainty, in management’s opinion, either the likelihood of loss is remote, or any reasonably possible loss associated with the resolution of such proceedings is not expected to have a material adverse impact on the consolidated financial statements. |
Deferred compensation
Deferred compensation | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Compensation Liability [Abstract] | |
Deferred compensation | Note 11. Deferred compensation The Mayville Engineering Deferred Compensation Plan is available for certain employees designated to be eligible to participate by the Company and approved by the Board of Directors. Eligible employees may elect to defer a portion of his or her compensation for any plan year and the deferral cannot exceed 50% of the participant’s base salary and may include the participant’s annual short-term cash incentive up to 100%. The participant’s election must be made prior to the first day of the plan year. An employer contribution will be made for each participant to reflect the amount of any reduced allocations to the ESOP and/or 401(k) employer contributions due solely to the participant’s deferral amounts, as applicable. In addition, a discretionary amount may be awarded to a participant by the Company. Prior to the IPO, all deferrals were deemed to have been invested in the Company’s common stock at a price equal to the share value on the date of deferral and the value of the account increased or decreased with the change in the value of the stock. Individual accounts are maintained for each participant. Each participant’s account is credited with the participant’s deferred compensation and investment income or loss, reduced for charges, if any. For the period subsequent to the IPO, deferrals are assumed to be invested in an investment vehicle based on the options made available to the participant (which does not include Company stock). The deferred compensation plan provides benefits payable upon separation of service or death. Payments are to be made 30 days after date of separation from service, either in a lump-sum payment or up to five annual installments as elected by the participant when the participant first elects to defer compensation. The deferred compensation plan is non-funded, and all future contributions are unsecured in that the employees have the status of a general unsecured creditor of the Company and the agreements constitute a promise by the Company to make benefit payments in the future. During the twelve months ended December 31, 2020, 2019 and 2018, eligible employees elected to defer compensation of $63, $1,296 and $856, respectively. As of December 31, 2020, and December 31, 2019, the total amount accrued for all benefit years under this plan was $25,631 and $24,949, respectively, which is included within the deferred compensation and long-term incentive on the Consolidated Balance Sheets. These amounts include the initial deferral of compensation as adjusted for (a) subsequent changes in the share value of the Company stock pursuant to the IPO or (b) following the IPO in the investment options chosen by the participants. Total expense for the deferred compensation plan for the twelve months ended December 31, 2020, 2019 and 2018 amounted to $725, $10,476 and $1,647, respectively. These expenses are included in profit sharing, bonuses and deferred compensation on the Consolidated Statements of Comprehensive Income (Loss). |
Long-Term incentive plan
Long-Term incentive plan | 12 Months Ended |
Dec. 31, 2020 | |
Share Based Compensation [Abstract] | |
Long-Term incentive plan | Note 12. Long-Term incentive plan Prior to the IPO, the Company’s long-term incentive plan (LTIP) was available for any employee who had been designated to be eligible to participate by the Compensation Committee of the Board of Directors. Annually, the LTIP provided for long-term cash incentive awards to eligible participants based on the Company’s performance over a three-year performance period. The LTIP was non-funded and each participant in the plan was considered a general unsecured creditor of the Company and each agreement constituted a promise by the Company to make benefit payments if the future conditions were met, or if discretion is exercised in favor of a benefit payment. The qualifying conditions for each award granted under the plan included a minimum increase in the aggregate fair value of the Company of 12% during the three-year performance period and the eligible participants must have been employed by the Company on the date of the cash payment or have retired after attaining age 65, died or become disabled during the period from the beginning of the performance period to the date of payment. If the qualifying conditions were not attained, discretionary payments were made, up to a maximum amount specified in each award agreement. Discretionary payments were determined by the Compensation Committee of the Board of Directors (for payment to the Chief Executive Officer of the Company) and by the Chief Executive Officer (for payments to other participants in the plan). If a participant was not employed throughout the performance period due to retirement, death or disability, their maximum benefit was prorated based on the number of days employed by the Company during the performance periods. The LTIP was terminated in May 2019 in conjunction with the IPO. Total expense for the long-term incentive plan for the twelve months ended December 31, 2020, 2019 and 2018 amounted to zero, $10,000 and $1,712, respectively. These expenses are included in profit sharing, bonuses and deferred compensation on the Consolidated Statements of Comprehensive Income (Loss). |
Self-Funded insurance
Self-Funded insurance | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Self-Funded insurance | Note 13. Self-Funded insurance The Company is self-funded for the medical benefits provided to its employees and their dependents. Healthcare costs are expensed as incurred and are based upon actual claims paid, reinsurance premiums, administration fees, and estimated unpaid claims. As of March 31, 2020, the Company has consolidated benefit plans with no specific stop loss and an aggregate stop to limit risk. Expense related to this contract was approximately |
Segments
Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments | Note 14. Segments The Company applies the provisions of ASC Topic 280, Segment Reporting |
Fair value of financial instrum
Fair value of financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Note 15. Fair value of financial instruments Fair value provides information on what the Company may realize if certain assets were sold or might pay to transfer certain liabilities based upon an exit price. Financial assets and liabilities that are measured and reported at fair value are classified into a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. Long term debt is classified as a Level 2 fair value input. • Level 3 – Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company’s own data and judgements about assumptions that market participants would use in pricing the asset or liability. The following table lists the Company’s financial assets and liabilities accounted for at fair value by the fair value hierarchy: Fair Value Measurements at Report Date Using Balance at December 31, 2020 (Level 1) (Level 2) (Level 3) Deferred compensation liability $ 25,631 $ 4,865 $ 20,766 $ — Total $ 25,631 $ 4,865 $ 20,766 $ — Fair Value Measurements at Report Date Using Balance at December 31, 2019 (Level 1) (Level 2) (Level 3) Deferred compensation liability $ 24,949 $ 2,470 $ 22,479 $ — Total $ 24,949 $ 2,470 $ 22,479 $ — Fair value measurements for the Company’s cash and cash equivalents are classified based upon Level 1 measurements because such measurements are based upon quoted market prices in active markets for identical assets. Accounts receivable, accounts payable, long-term debt and accrued liabilities are recorded in the financial statements at cost and approximate fair value. Deferred compensation liabilities are recorded at amounts due to participants at the time of deferral. Deferrals are invested in an investment vehicle based on the options made available to the participant, considered to be Level 1 and Level 2 on the fair value hierarchy, with the majority of the balance as Level 2. The change in fair value is recorded in the profit sharing, bonuses, and deferred compensation line item on the Consolidated Statements of Comprehensive Income (Loss). The balance due to participants is reflected on the deferred compensation and long-term incentive line item on the Consolidated Balance Sheets. The Company’s non-financial assets such as intangible assets and property, plant, and equipment are re-measured at fair value when there is an indication of impairment and adjusted only when an impairment charge is recognized. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 16. Revenue recognition Contract Assets and Contract Liabilities The Company has contract assets and contract liabilities, which are included in other current assets and other current liabilities on the Consolidated Balance Sheet, respectively. Contract assets include products where the Company has satisfied its performance obligation, but receipt of payment is contingent upon delivery. Contract liabilities include deferred tooling revenue, where the performance obligation was not met. The performance obligation is satisfied when the tooling is completed and the customer signs off through the PPAP. Cost of goods sold is recognized and released from the balance sheet when control of the tooling promised under contract is transferred to the customer either at a point in time or over a period of time. The Company’s contracts with customers are short-term in nature; therefore, revenue is typically recognized, billed and collected within a 12-month period. The following table reflects the changes in our contract assets and liabilities during the twelve months ended December 31, 2020. Contract Assets Contract Liabilities As of December 31, 2019 $ 1,589 $ 914 Net activity 1,537 146 As of December 31, 2020 $ 3,126 $ 1,060 Disaggregated Revenue The following table represents a disaggregation of revenue by product category: Twelve Months Ended December 31, 2020 2019 2018 Outdoor sports $ 7,225 $ 7,181 $ 6,862 Fabrication 227,476 334,340 147,099 Performance structures 60,597 71,881 84,231 Tube 49,868 71,108 80,715 Tank 19,431 40,033 39,641 Total 364,597 524,544 358,550 Intercompany sales elimination (6,991 ) (4,839 ) (4,024 ) Total, net sales $ 357,606 $ 519,704 $ 354,526 |
Temporary equity
Temporary equity | 12 Months Ended |
Dec. 31, 2020 | |
Temporary Equity [Abstract] | |
Temporary equity | Note 17. Temporary equity Prior to our IPO in May 2019, our common stock was considered redeemable under GAAP because of certain repurchase obligations related to the ESOP. As a result, all common shares were recorded as temporary equity (redeemable common shares) on the Consolidated Balance Sheets at their redemption value as of the respective balance sheet dates. All contractual redemption features were removed at the time of the IPO. As a consequence, all outstanding shares of common stock ceased to be considered temporary equity and were reclassified to Shareholders’ Equity, including the associated balances of retained earnings. As the common shares have no par value, the amounts recorded in temporary equity for the share redemption value were recorded to additional paid-in capital within Shareholders’ Equity upon the transfer. The following table shows all changes to temporary equity during the period of January 1, 2018 through the IPO. Temporary Equity Redeemable Common Shares Treasury Shares Retained Earnings Balance as of December 31, 2017 $ 125,042 $ (49,826 ) $ 17,671 Net income — — 17,936 Purchase of treasury shares — (11,833 ) — Redistribution of stockholders share — 4,000 — Change in redemption value of outstanding redeemable common shares, net 8,764 — (8,764 ) Balance as of December 31, 2018 133,806 (57,659 ) 26,842 Net income pre-IPO — — 2,856 Transfer from temporary equity to common equity (133,806 ) 57,659 (29,698 ) Balance as of December 31, 2019 $ — $ — $ — |
Common equity
Common equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Common equity | Note 18. Common equity On May 13, 2019, the Company issued a stock dividend specific to pre-IPO shares, of approximately 1,334.34-for-1. The share dividend was accounted for as a 1,334.34-for-1 stock split and is retroactively reflected in these consolidated financial statements. All share redemption provisions were removed effective with the IPO. As disclosed in Note 2, IPO On June 28, 2019, the Company cancelled 24,180,421 shares of common stock held in the Company’s treasury and returned those shares to the status of authorized but unissued shares of common stock. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | Note 19. Earnings per share The company computes earnings per share in accordance with ASC Topic , Earnings per Share Options in the money that were not included in the computation of diluted earnings per share because they would have had antidilutive impact on earnings per share were as follows: Twelve Months Ended December 31, 2020 2019 2018 Stock options 600,530 — — |
Concentration of major customer
Concentration of major customers | 12 Months Ended |
Dec. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
Concentration of major customers | Note 20. Concentration of major customers The following customers accounted for 10% or greater of the Company’s recorded net sales and net trade receivables: Net Sales Accounts Receivable Twelve Months Ended December 31, As of As of 2020 2019 2018 December 31, 2020 December 31, 2019 Customer A 15.3 % 15.1 % 22.6 % 11.3 % <10 % B 11.1 % 13.5 % 19.3 % <10 % <10 % C 12.5 % <10 % 17.4 % 12.2 % <10 % D 11.6 % 13.1 % <10 % <10 % <10 % E <10 % <10 % <10 % <10 % 13.5 % F <10 % <10 % <10 % <10 % 10.4 % |
Stock based compensation
Stock based compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock based compensation | Note 21. Stock based compensation The Mayville Engineering Company, Inc. 2019 Omnibus Incentive Plan allows the Company the ability to provide monetary payments based on the value of its common stock, up to two million shares. The Company recognizes stock-based compensation using the fair value provisions prescribed by ASC Topic 718, Compensation – Stock Compensation Cancellations and forfeitures are accounted for as incurred. Stock awards were granted on May 12, 2020, February 27, 2020, and May 8, 2019. There were no stock awards granted prior to this and as a result, there is no information included in the tables below for the year 2018. The Company’s stock-based compensation expense by award type is summarized as follows: Twelve Months Ended December 31, 2020 2019 IPO unit awards $ 1,029 $ 1,871 Unit awards 2,305 1,080 Option awards 1,398 536 Stock based compensation expense, net of tax $ 4,732 $ 3,487 IPO units were fully expensed during the twelve-month period ended December 31, 2020. A rollforward of unrecognized stock-based compensation expense is displayed in the table below. Unrecognized stock-based compensation expense as of December 31, 2020 will be expensed over the remaining requisite service period from which individual award values relate, up to February 27, 2022. Twelve Months Ended December 31, 2020 2019 Units Options Total Units Options Total Beginning balance $ 2,595 $ 1,124 $ 3,719 $ — $ — $ — Grants 3,022 2,041 5,063 5,634 1,748 7,382 Forfeitures (738 ) (335 ) (1,073 ) (88 ) (88 ) (176 ) Expense (3,334 ) (1,398 ) (4,732 ) (2,951 ) (536 ) (3,487 ) Ending balance $ 1,545 $ 1,432 $ 2,977 $ 2,595 $ 1,124 $ 3,719 Units A summary of the Company’s unit award activity is as follows: For the Year Ended December 31, 2020 2019 Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Nonvested, beginning of year 326,288 $ 17.00 — $ — Grants 457,369 $ 6.61 331,436 $ 17.00 Forfeitures (62,409 ) $ 8.90 (5,148 ) $ 17.00 Vested (264,991 ) $ 17.00 — $ — Nonvested, end of year 456,257 $ 7.69 326,288 $ 17.00 Stock Options A summary of the Company’s stock option award activity is as follows: For the Year Ended December 31, 2020 2019 Number of Options Weighted-Average Exercise Price Number of Options Weighted-Average Exercise Price Nonvested, beginning of year 273,479 $ 17.00 — $ — Grants 718,489 $ 7.12 287,895 $ 17.00 Forfeitures (148,026 ) $ 9.13 (14,416 ) $ 17.00 Vested (125,414 ) $ 17.00 — $ — Nonvested, end of year 718,528 $ 8.74 273,479 $ 17.00 As of December 31, 2020, there were 125,414 options issued and outstanding at an exercise price of $17.00 per share with a remaining contractual life of 8.5 years. The intrinsic value of these outstanding options was zero based on the Company’s stock price as of December 31, 2020. The Company uses the Black-Scholes valuation model to estimate the fair value of stock options which were $2.84 and $6.07 for those options granted during the years ended December 31, 2020 and 2019, respectively. The Company utilized the following assumptions in determining these fair values: Inputs Assumptions 2020 2019 Stock price at date of grant/exercise price $ 7.12 $ 17.00 Expected term (in years) 5.75 10.00 Estimated volatility 41.2 % 21.3 % Estimated risk-free rate of return 1.2 % 2.4 % Expected dividend yield 0.0 % 0.0 % The Company does not have historical option exercise data to estimate the expected term. For options granted in 2020, the Company began utilizing the simplified method prescribed by Staff Accounting Bulletin (SAB) Topic 14 |
Greenwood Facility Closure and
Greenwood Facility Closure and Restructuring | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Greenwood Facility Closure and Restructuring | Note 22. Greenwood facility closure and restructuring Based on the Company’s investments in new technology and automation, which have resulted in a smaller footprint requirement to maintain manufacturing capacity, the Company announced it would be closing its Greenwood, SC facility on May 6, 2020. The facility closure was finalized during the third quarter of 2020 with all customer components re-distributed amongst five other MEC manufacturing facilities. All customer relationships and manufactured components were maintained through this transition without disruption to our customers. Costs associated with the closure are being accounted for in accordance with ASC 420 Exit or Disposal Cost Obligations For the twelve months ended December 31, 2020, the Company incurred $2,524 of costs associated with the facility closure and restructuring, including $282 for severance and retention bonus, $931 for the loss on sale of manufacturing equipment not transferred to another MEC facility, $78 for the buyout of operating leases, $622 for the disposition of inventory, and the remainder mostly related to costs to close the facility and relocate equipment to other facilities. These costs were recognized on the cost of sales line item of the Condensed Consolidated Statements of Comprehensive Income (Loss). The Greenwood facility has a net book value of approximately $3,552 as of December 31, 2020 and is classified as assets held for sale on the Consolidated Balance Sheet. The following table summarizes the activity related to the Greenwood restructuring through December 31, 2020: Employee Severance and Retention Bonus Reserve Inventory Excess and Obsolescence Reserve Other Reserves Total Reserves Balance as of December 31, 2019 $ — $ — $ — $ — Charges 282 622 1,620 2,524 Cash receipts (payments) (282 ) 16 (1,620 ) (1,886 ) Accrual adjustments — (638 ) — (638 ) Balance as of December 31, 2020 $ — $ — $ — $ — As a result of the Greenwood facility closure, future earnings and cash flows will no longer be impacted by the depreciation associated with the assets disposed of or the facility, maintenance costs of the facility, and facility personnel expenses. Assets disposed of had a net book value of $2,475 with a remaining useful life of approximately 3 years resulting in approximately $825 of annual depreciation expense that will no longer be incurred. The facility has a net book value of $3,552 as of December 31, 2020 with a remaining weighted average useful life of approximately 27 years resulting in approximately $133 of annual depreciation expense that will no longer be incurred. The Company incurred approximately $800 of annual facility maintenance costs, including utilities, that will no longer be incurred. Total personnel costs associated with the facility were approximately $2,250 for the first quarter 2020 resulting in approximately $9,000 of annual personnel expenses, of which the majority of these costs will be transitioned to the other five MEC facilities that will now be manufacturing these components. As previously mentioned, all customer relationships and manufacturing programs were retained through the transition. The aforementioned depreciation, maintenance costs, and personnel expenses associated with the Greenwood facility have been classified as cost of sales on the Condensed Consolidated Statements of Comprehensive Income (Loss). |
Valuation and qualifying accoun
Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and qualifying accounts | Note 23. Valuation and qualifying accounts Description Balance at beginning of period Additions Deductions Balance at end of period Year ended December 31, 2020 Allowance for doubtful accounts $ 526 $ 1,582 $ 810 $ 1,298 Year ended December 31, 2019 Allowance for doubtful accounts $ 801 $ 308 $ 583 $ 526 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 24. Subsequent events The Company evaluated events and transactions for potential recognition or disclosure in the consolidated financial statements through March 5, 2021, the date on which the consolidated financial statements were available to be issued. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note 25. Quarterly results of operations (unaudited) The following tables present our unaudited quarterly results of operations for the eight quarters in 2020 and 2019. This unaudited information has been prepared on the same basis as our audited consolidated financial statements and includes all adjustments, consisting only of normal recurring adjustments, that we consider necessary for fair statement of our consolidated financial position and operating results for the quarters presented. This unaudited information should be read in conjunction with the consolidated financial statements and related notes included in Part II, Item 8 of this Annual Report on Form 10-K. Our operating results for any quarter are not necessarily indicative of results for any future quarters or for a full year. Q1 Q2 Q3 Q4 Full Year 2020 2020 2020 2020 2020 Net sales $ 108,605 $ 62,582 $ 91,075 $ 95,344 $ 357,606 Cost of sales 96,762 63,736 81,340 84,267 326,105 Amortization of intangibles 2,677 2,677 2,677 2,676 10,706 Profit sharing, bonuses, and deferred compensation 1,325 1,194 2,288 3,443 8,250 Employee Stock Ownership Plan expense 675 (675 ) — — — Other selling, general and administrative expenses 5,599 4,552 4,490 4,402 19,043 Income (loss) from operations 1,567 (8,902 ) 280 556 (6,498 ) Interest expense (826 ) (637 ) (647 ) (558 ) (2,668 ) Income (loss) before taxes 741 (9,539 ) (367 ) (2 ) (9,166 ) Income tax expense (benefit) 691 (2,525 ) 733 (973 ) (2,074 ) Net income (loss) and comprehensive income (loss) $ 50 $ (7,014 ) $ (1,100 ) $ 971 $ (7,092 ) Earnings (loss) per share Net income (loss) available to shareholders $ 50 $ (7,014 ) $ (1,100 ) $ 971 $ (7,092 ) Basic and diluted earnings (loss) per share $ 0.00 $ (0.35 ) $ (0.05 ) $ 0.05 $ (0.36 ) Basic and diluted weighted average shares outstanding 19,533,533 19,902,912 20,077,039 20,451,203 19,898,122 Q1 Q2 Q3 Q4 Full Year 2019 2019 2019 2019 2019 Net sales $ 143,732 $ 145,130 $ 128,511 $ 102,331 $ 519,704 Cost of sales 124,153 124,595 113,941 98,297 460,986 Amortization of intangibles 2,677 2,677 2,677 2,677 10,706 Profit sharing, bonuses, and deferred compensation 1,750 22,830 678 (153 ) 25,105 Employee Stock Ownership Plan expense 1,500 1,500 1,500 953 5,453 Other selling, general and administrative expenses 6,723 7,506 6,068 5,170 25,466 Contingent consideration revaluation 869 2,674 (9,598 ) — (6,054 ) Income (loss) from operations 6,060 (16,652 ) 13,245 (4,612 ) (1,958 ) Interest expense (2,832 ) (1,991 ) (987 ) (918 ) (6,728 ) Loss on extinguishment of debt — (154 ) — — (154 ) Income (loss) before taxes 3,228 (18,797 ) 12,258 (5,530 ) (8,840 ) Income tax expense (benefit) 769 (3,513 ) 2,512 (3,857 ) (4,088 ) Net income (loss) and comprehensive income (loss) $ 2,459 $ (15,284 ) $ 9,746 $ (1,673 ) $ (4,753 ) Earnings (loss) per share Net income (loss) available to shareholders $ 2,459 $ (15,284 ) $ 9,746 $ (1,673 ) $ (4,753 ) Basic and diluted earnings (loss) per share $ 0.18 $ (0.91 ) $ 0.49 $ (0.08 ) $ (0.27 ) Basic and diluted weighted average shares outstanding 13,443,484 16,799,915 19,740,296 19,711,921 17,447,464 Tax-adjusted pro forma information Net income (loss) available to shareholders $ 2,459 $ (15,284 ) $ 9,746 $ (1,673 ) $ (4,753 ) Pro forma provision for income taxes 70 103 — — 173 Pro forma net income (loss) $ 2,389 $ (15,387 ) $ 9,746 $ (1,673 ) $ (4,926 ) Pro forma basic and diluted earnings (loss) per share $ 0.18 $ (0.92 ) $ 0.49 $ (0.08 ) $ (0.28 ) Basic and diluted weighted average shares outstanding 13,443,484 16,799,915 19,740,296 19,711,921 17,447,464 IPO occurred in Q2 of 2019 |
Nature of business and summar_2
Nature of business and summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). They include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly-liquid investments purchased with original maturities of 90 days or less to be cash and cash equivalents. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to credit risk consist principally of bank balances above the Federal Deposit Insurance Corporation (FDIC) insurability limits of $250 per official custodian. The Company has not experienced any losses on these accounts and management believes the Company is not exposed to any significant credit risk on cash. |
Accounts receivable | Accounts receivable Accounts receivable are generally uncollateralized customer obligations due under normal trade terms requiring payment within 30 to 60 days from the invoice date. Management periodically reviews past due balances and established an allowance for doubtful accounts of approximately $1,298 and $526 as of December 31, 2020 and 2019, respectively, for probable uncollectible amounts based on its assessment of the current status of individual accounts. The estimated valuation allowance results in a charge to cost of sales and the accounts are written-off through a charge to the valuation allowance and a credit to accounts receivable after the Company has used all reasonable collection efforts. |
Inventories | Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out method (FIFO), and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Work-in-process and finished goods are valued at production cost consisting of material, labor and overhead. The Company maintains a reserve for obsolete and slow-moving inventory of approximately $3,199 and $3,119 as of December 31, 2020 and 2019, respectively, which is based upon the aging of current inventory as well as assumptions on future demand and market conditions. |
Tooling in progress | Tooling in progress The Company has agreements with its customers to provide production tooling which will be used to produce specific parts for its customers. The costs to design, engineer, and manufacture the tooling are charged to tooling in progress as incurred and based on when control of the tooling is promised under contract, is transferred to the customer either at a point in time or over a period of time is when revenue is recognized. The Company may also provide production tooling that is not sold to customers but is capitalized in property, plant and equipment. To the extent that estimated costs exceed expected reimbursement from the customer, the Company recognizes a loss. Tooling in progress was $3,126 and $1,589 as of December 31, 2020 and 2019, respectively. |
Property, plant and equipment | Property, plant and equipment |
Business combinations | Business combinations The Company accounts for all business combinations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, “Business Combinations”. In connection with a business combination, the acquiring company must allocate the cost of the acquisition to assets acquired and liabilities assumed based on fair values as of the acquisition date. Any excess or shortage of amounts assigned to assets and liabilities over or under the purchase price is recorded as a gain on bargain purchase or goodwill. Transaction costs associated with acquisitions are expensed as incurred within selling, general and administrative expenses. |
Goodwill | Goodwill We test goodwill for impairment annually, or more frequently if triggering events occur indicating that there may be an impairment. We have recorded goodwill and perform testing for potential goodwill impairment at a reporting unit level. A reporting unit is an operating segment, or a business unit one level below an operating segment for which discrete financial information is available, and for which management regularly reviews the operating results. Additionally, components within an operating segment can be aggregated as a single reporting unit if they have similar economic characteristics. We have performed testing on our one reporting unit. We determine the fair value of our reporting units using multiple valuation methodologies, relying largely on an income approach but also incorporating value indicators from a market approach. Under the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. The income approach is dependent on several key management assumptions, including estimates of future sales, gross margins, operating costs, interest expense, income tax rates, capital expenditures, changes in working capital requirements and the weighted average cost of capital or the discount rate. Discount rate assumptions include an assessment of the risk inherent in the future cash flows of the reporting unit. Expected cash flows used under the income approach are developed in conjunction with our budgeting and forecasting process. Under the market approach, we estimate fair value of the reporting units using EBITDA multiples. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics as the respective reporting units. We test our goodwill for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that it might be impaired. Due to the economic conditions during the second quarter of 2020 as a result of the COVID-19 pandemic, we determined that an impairment triggering event occurred, which required an interim quantitative impairment assessment of goodwill. Based on our interim quantitative assessments, the fair value of our reporting unit exceeded our related carrying value by more than 50%, thus no impairment of goodwill was indicated. We also performed our annual qualitative goodwill impairment test during the fourth quarter of fiscal 2020, consistent with the timing of 2019. At December 31, 2020, the Company had goodwill with a carrying amount of $71,535. The fair value substantially exceeded the carrying value for 2020. If the market valuation of our common shares or operating results of our reporting unit significantly decline beyond current levels, we may again need to conduct an evaluation of the fair value of our goodwill, which may result in an impairment change. Changes to management assumptions and estimates utilized in the income and market approaches could negatively impact the fair value conclusions for our reporting units resulting in goodwill impairment. All key assumptions and valuations are determined by and are the responsibility of management. The factors used in the impairment analysis are inherently subject to uncertainty. We believe that the estimates and assumptions are reasonable to determine the fair value of our reporting units, however, if actual results are not consistent with these estimates and assumptions, goodwill and other intangible assets may be overstated which could trigger an impairment charge. |
Fair value of financial instruments | Fair Value of Financial Instruments Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The carrying amount of all significant financial instruments approximates fair value due to either the short maturity or the existence of variable interest rates that approximate prevailing market rates. Cash and cash equivalents, accounts receivable and accounts payable are classified as Level 1 fair value inputs as further described in Note 15. Long-term debt is classified as a Level 2 fair value input. |
Impairment of long-lived assets | Impairment of long-lived assets When events or conditions warrant, the Company evaluates the recoverability of long-lived assets and considers whether these assets are impaired. The Company assesses the recoverability of these assets based on several factors, including management’s intention with respect to these assets and their projected undiscounted cash flows. If projected undiscounted cash flows are less than the carrying amount of the respective assets, the Company adjusts the carrying amounts of such assets to their estimated fair value. To the extent that the carrying value of the net assets of a reportable unit is greater than the estimated fair value, the Company may be required to record impairment charges. |
Deferred financing costs | Deferred financing costs Loan issuance costs and discounts are capitalized upon the issuance of long-term debt and amortized over the life of the related debt and are presented as a reduction of the associated long-term debt on the Consolidated Balance Sheets. Loan issuance costs associated with revolving debt arrangements are presented as a component of other assets. Loan issuance costs incurred in connection with revolving debt arrangements are amortized using the straight-line method over the life of the credit agreement. Loan issuance costs and discounts incurred in connection with term debt are amortized using the effective interest method. Amortization of deferred loan issuance costs and discounts are included in interest expense. During 2020, 2019 and 2018, the Company recorded $207, $142 and $2,173, respectively of deferred financing costs associated with its long-term debt and line of credit arrangements. Amortization expense associated with the deferred debt issuance costs and discounts in 2020, 2019 and 2018 was approximately $358, $381 and $198. Accumulated amortization was approximately $616, $474 and $114 as of December 31, 2020, 2019 and 2018, respectively. Amendments made to existing debt in 2020, 2019 and 2018 resulted in the write-offs of $zero, $154 and $814, respectively of unamortized costs associated with the debt that was replaced. |
Revenue recognition | Revenue recognition The Company adopted ASC 606 January 1, 2019, where the Company recognizes revenue for the transfer of goods or services to a customer in an amount that reflects the consideration it expects to receive in exchange for those goods or services. When goods are shipped, the customer takes ownership at shipment, and this is when control transfers. Sales are supported by documentation such as supply agreements and purchase order, which specify certain terms and conditions including product specifications, quantities, fixed prices, delivery dates and payments terms. Revenue related to services is recognized in the period services are performed, thus the Company recognizes revenue at a point in time. There are many customers where the Company designs, engineers and builds production tooling, which is purchased by the customer. Most of the tooling revenue is complete at the point the customer signs off on the product through the Product Part Approval Process (PPAP) and the tool is placed into service. Revenue is recognized when control of the tooling promised under a contract is transferred to the customer either at a point in time or over a period of time in an amount that reflects the consideration to which the Company expects to be entitled in exchange for the goods or services. The Company offers certain customers discounts for early payments. These discounts are recorded against net sales in the consolidated statement of comprehensive income and accounts receivable in the Consolidated Balance Sheets. The Company does not offer any other customer incentives, rebates or allowances. |
Shipping and handling | Shipping and handling The Company expenses shipping and handling costs as incurred. These costs are generally comprised of salaries and wages, shipping supplies and warehouse costs. Inbound freight costs, which mostly relate to raw materials, are included in cost of sales on the Consolidated Statements of Comprehensive Income (Loss). Outbound freight costs, which mostly relate to sales, are included in net sales on the Consolidated Statements of Comprehensive Income (Loss). The Company does not charge customers nor recognize revenue for shipping and handling. The Company’s OEM customers arrange and pay the freight for delivery. |
Advertising | Advertising The Company expenses the costs of advertising when incurred. Advertising expense was approximately $100, $110 and $116 for the twelve months ended December 31, 2020, 2019 and 2018, respectively. Advertising costs are charged to selling, general and administrative expenses. |
Income Taxes | Income Taxes Income taxes and uncertain tax positions are accounted for in accordance with ASC 740, “Accounting for Income Taxes”. Deferred income taxes are provided for the differences between the bases of assets and liabilities for financial reporting and income tax purposes. The Company measures deferred tax assets and liabilities using enacted tax rates in effect for the years in which the differences are expected to reverse and recognizes the effect of a change in enacted rates in the period of enactment. Tax positions meeting the more-likely-than-not recognition threshold are measured pursuant to the guidance set forth in ASC 740. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. See Note 9 “Income Taxes” of these Notes to Consolidated Financial Statements for further discussion. |
Earnings (loss) per share | Earnings (loss) per share The Company computes basic earnings (loss) per share by dividing net income (loss) available to shareholders by the actual weighted average number of common shares outstanding for the reporting period. The dilutive impact to basic earnings per share considers the impact to earnings if all convertible securities were exercised or outstanding that do not have an antidilutive impact on earnings per share. |
Treasury Stock | Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Subsequent reissuance of shares to the ESOP are recorded as a reduction to treasury stock and as ESOP expense in the Consolidated Statements of Comprehensive Income (Loss). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, FASB issued Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers Principal versus Agent Considerations , Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business In January 2017, the FASB issued ASU, 2017-04, Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement In December 2019, the FASB issued ASU 2019-12, Income Taxes |
Select balance sheet data (Tabl
Select balance sheet data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Select Balance Sheet Data [Abstract] | |
Schedule of Inventories | Inventories as of December 31, 2020 and December 31, 2019 consist of: December 31, 2020 December 31, 2019 Finished goods and purchased parts $ 24,561 $ 28,664 Raw materials 11,266 10,834 Work-in-process 5,539 6,194 Total $ 41,366 $ 45,692 |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of December 31, 2020 and December 31, 2019 consist of: Useful Lives Years December 31, 2020 December 31, 2019 Land Indefinite $ 1,033 $ 1,264 Land improvements 15-39 3,169 3,169 Building and building improvements 15-39 55,172 58,021 Machinery, equipment and tooling 3-10 199,854 204,248 Vehicles 5 3,778 3,738 Office furniture and fixtures 3-7 16,242 15,469 Construction in progress N/A 3,931 3,154 Total property, plant and equipment, gross 283,179 289,063 Less accumulated depreciation 176,491 164,000 Total property, plant and equipment, net $ 106,688 $ 125,063 |
Schedule of Changes In Goodwill | Changes in goodwill between December 31, 2019 and December 31, 2020 consist of: Balance as of December 31, 2019 $ 71,535 Impairment — Balance as of December 31, 2020 $ 71,535 |
Schedule of Listing of Intangible Assets | The following is a listing of intangible assets, the useful lives in years (amortization period) and accumulated amortization as of December 31, 2020 and December 31, 2019: Useful Lives Years December 31, 2020 December 31, 2019 Amortizable intangible assets: Customer relationships and contracts 9-12 $ 78,340 $ 78,340 Trade name 10 14,780 14,780 Non-compete agreements 5 8,800 8,800 Patents 19 24 24 Accumulated amortization (44,288 ) (33,582 ) Total amortizable intangible assets, net 57,656 68,362 Non-amortizable brand name 3,811 3,811 Total intangible assets, net $ 61,467 $ 72,173 |
Schedule of Changes In Intangible Assets | Changes in intangible assets between December 31, 2019 and December 31, 2020 consist of: Balance as of December 31, 2019 $ 72,173 Amortization expense (10,706 ) Balance as of December 31, 2020 $ 61,467 |
Schedule of Future Amortization Expense | Future amortization expense is expected to be as followed: Year ending December 31, 2021 $ 10,706 2022 $ 6,952 2023 $ 6,866 2024 $ 5,192 2025 $ 5,192 Thereafter $ 22,748 |
Capital lease obligation (Table
Capital lease obligation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Required Under The Lease | Future minimum lease payments required under the lease are as follows: Year ending December 31, 2021 $ 734 2022 734 2023 734 2024 514 2025 227 Thereafter — Total 2,943 Less payment amount allocated to interest 256 Present value of capital lease obligation $ 2,687 Current portion of capital lease obligation 626 Long-term portion of capital lease obligation 2,061 Total capital lease obligation $ 2,687 |
Operating lease obligation (Tab
Operating lease obligation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Future Minimum Lease Payments Under Lease | Operating leases relate to property, plant and equipment. Future minimum lease payments required under the lease are as follows: Year ending December 31, 2021 $ 3,256 2022 2,366 2023 2,294 2024 1,501 2025 895 Thereafter 2,162 Total $ 12,474 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes | Income taxes are included in the Consolidated Statements of Comprehensive Income (Loss) at December 31, 2020 and 2019 as below: December 31, 2020 December 31, 2019 Current income tax expense (benefit) U.S Federal $ 129 $ 401 State 98 1,544 Total 227 1,945 Deferred income tax expense (benefit) U.S Federal (2,457 ) (4,197 ) State 156 (1,836 ) Total (2,301 ) (6,033 ) Total income tax benefit $ (2,074 ) $ (4,088 ) |
Schedule of Reconciliation of Statutory Federal Income Tax Expense to Income Tax Expense | A reconciliation of the statutory federal income tax expense to the income tax expense from continuing operations provided at December 31, 2020 and 2019, is as follows: December 31, 2020 December 31, 2019 Income tax expense at the federal statutory rate - 21% $ (1,925 ) $ (1,854 ) State and local income taxes - net of federal income tax benefits 79 (58 ) Compensation deduction limitation - section 162(m) adjustment (113 ) 357 Income taxed by shareholder before IPO (387 ) (867 ) Other - perms 51 77 Transaction costs — 607 Change in tax status — (2,355 ) Tax credits generated (409 ) (254 ) Uncertain tax positions - current year 106 — Uncertain tax positions - prior year 115 — Loan fee amortization 698 — Stock compensation 764 — Section 481(a) adjustments (184 ) — Fixed assets (452 ) — State tax return to provision (121 ) — Other miscellaneous tax (296 ) 259 Total income tax benefit $ (2,074 ) $ (4,088 ) Effective tax rate 22.6 % 47.5 % |
Components of Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are presented below: December 31, 2020 December 31, 2019 Deferred tax assets: Deferred compensation $ 8,295 $ 8,645 Inventory adjustments 1,506 1,837 Accrued expenses 409 211 Credits 508 279 Net operating loss 2,626 3,120 Other 338 — Total deferred tax assets 13,682 14,092 Deferred tax liabilities: Property, plant and equipment 9,485 8,354 Intangibles 15,773 19,305 Inventory adjustment — — Other 311 622 Total deferred tax liabilities 25,569 28,281 Valuation allowance — — Net deferred tax liability $ (11,887 ) $ (14,188 ) |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following is a reconciliation of beginning and ending amounts of unrecognized tax benefits: Balance as of December 31, 2019 $ — Increase from current year tax positions 106 Increase from prior year tax positions 115 Decrease from settlements with tax authority — Decrease from expiration of statute of limitations — Balance as of December 31, 2020 $ 221 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Accounted for at Fair Value by Fair Value Hierarchy | The following table lists the Company’s financial assets and liabilities accounted for at fair value by the fair value hierarchy: Fair Value Measurements at Report Date Using Balance at December 31, 2020 (Level 1) (Level 2) (Level 3) Deferred compensation liability $ 25,631 $ 4,865 $ 20,766 $ — Total $ 25,631 $ 4,865 $ 20,766 $ — Fair Value Measurements at Report Date Using Balance at December 31, 2019 (Level 1) (Level 2) (Level 3) Deferred compensation liability $ 24,949 $ 2,470 $ 22,479 $ — Total $ 24,949 $ 2,470 $ 22,479 $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Changes in Contract Assets and Liabilities | The following table reflects the changes in our contract assets and liabilities during the twelve months ended December 31, 2020. Contract Assets Contract Liabilities As of December 31, 2019 $ 1,589 $ 914 Net activity 1,537 146 As of December 31, 2020 $ 3,126 $ 1,060 |
Schedule of Disaggregation of Revenue by Product Category | The following table represents a disaggregation of revenue by product category: Twelve Months Ended December 31, 2020 2019 2018 Outdoor sports $ 7,225 $ 7,181 $ 6,862 Fabrication 227,476 334,340 147,099 Performance structures 60,597 71,881 84,231 Tube 49,868 71,108 80,715 Tank 19,431 40,033 39,641 Total 364,597 524,544 358,550 Intercompany sales elimination (6,991 ) (4,839 ) (4,024 ) Total, net sales $ 357,606 $ 519,704 $ 354,526 |
Temporary equity (Tables)
Temporary equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Temporary Equity [Abstract] | |
Schedule of Changes to Temporary Equity | The following table shows all changes to temporary equity during the period of January 1, 2018 through the IPO. Temporary Equity Redeemable Common Shares Treasury Shares Retained Earnings Balance as of December 31, 2017 $ 125,042 $ (49,826 ) $ 17,671 Net income — — 17,936 Purchase of treasury shares — (11,833 ) — Redistribution of stockholders share — 4,000 — Change in redemption value of outstanding redeemable common shares, net 8,764 — (8,764 ) Balance as of December 31, 2018 133,806 (57,659 ) 26,842 Net income pre-IPO — — 2,856 Transfer from temporary equity to common equity (133,806 ) 57,659 (29,698 ) Balance as of December 31, 2019 $ — $ — $ — |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | Options in the money that were not included in the computation of diluted earnings per share because they would have had antidilutive impact on earnings per share were as follows: Twelve Months Ended December 31, 2020 2019 2018 Stock options 600,530 — — |
Concentration of major custom_2
Concentration of major customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
Schedules of Major Customer Concentrations | The following customers accounted for 10% or greater of the Company’s recorded net sales and net trade receivables: Net Sales Accounts Receivable Twelve Months Ended December 31, As of As of 2020 2019 2018 December 31, 2020 December 31, 2019 Customer A 15.3 % 15.1 % 22.6 % 11.3 % <10 % B 11.1 % 13.5 % 19.3 % <10 % <10 % C 12.5 % <10 % 17.4 % 12.2 % <10 % D 11.6 % 13.1 % <10 % <10 % <10 % E <10 % <10 % <10 % <10 % 13.5 % F <10 % <10 % <10 % <10 % 10.4 % |
Stock based compensation (Table
Stock based compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Stock-based Compensation Expenses | The Company’s stock-based compensation expense by award type is summarized as follows: Twelve Months Ended December 31, 2020 2019 IPO unit awards $ 1,029 $ 1,871 Unit awards 2,305 1,080 Option awards 1,398 536 Stock based compensation expense, net of tax $ 4,732 $ 3,487 |
Schedule of Unrecognized Stock-based Compensation Expense | Twelve Months Ended December 31, 2020 2019 Units Options Total Units Options Total Beginning balance $ 2,595 $ 1,124 $ 3,719 $ — $ — $ — Grants 3,022 2,041 5,063 5,634 1,748 7,382 Forfeitures (738 ) (335 ) (1,073 ) (88 ) (88 ) (176 ) Expense (3,334 ) (1,398 ) (4,732 ) (2,951 ) (536 ) (3,487 ) Ending balance $ 1,545 $ 1,432 $ 2,977 $ 2,595 $ 1,124 $ 3,719 |
Summary of Fair Value Assumptions and Inputs | The Company utilized the following assumptions in determining these fair values: Inputs Assumptions 2020 2019 Stock price at date of grant/exercise price $ 7.12 $ 17.00 Expected term (in years) 5.75 10.00 Estimated volatility 41.2 % 21.3 % Estimated risk-free rate of return 1.2 % 2.4 % Expected dividend yield 0.0 % 0.0 % |
Units [Member] | |
Summary of Activity for Unit Award and Stock Option Award | A summary of the Company’s unit award activity is as follows: For the Year Ended December 31, 2020 2019 Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Nonvested, beginning of year 326,288 $ 17.00 — $ — Grants 457,369 $ 6.61 331,436 $ 17.00 Forfeitures (62,409 ) $ 8.90 (5,148 ) $ 17.00 Vested (264,991 ) $ 17.00 — $ — Nonvested, end of year 456,257 $ 7.69 326,288 $ 17.00 |
Stock Option [Member] | |
Summary of Activity for Unit Award and Stock Option Award | A summary of the Company’s stock option award activity is as follows: For the Year Ended December 31, 2020 2019 Number of Options Weighted-Average Exercise Price Number of Options Weighted-Average Exercise Price Nonvested, beginning of year 273,479 $ 17.00 — $ — Grants 718,489 $ 7.12 287,895 $ 17.00 Forfeitures (148,026 ) $ 9.13 (14,416 ) $ 17.00 Vested (125,414 ) $ 17.00 — $ — Nonvested, end of year 718,528 $ 8.74 273,479 $ 17.00 |
Greenwood Facility Closure an_2
Greenwood Facility Closure and Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Activity Related to Restructuring | The following table summarizes the activity related to the Greenwood restructuring through December 31, 2020: Employee Severance and Retention Bonus Reserve Inventory Excess and Obsolescence Reserve Other Reserves Total Reserves Balance as of December 31, 2019 $ — $ — $ — $ — Charges 282 622 1,620 2,524 Cash receipts (payments) (282 ) 16 (1,620 ) (1,886 ) Accrual adjustments — (638 ) — (638 ) Balance as of December 31, 2020 $ — $ — $ — $ — |
Valuation and qualifying acco_2
Valuation and qualifying accounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule Of Valuation And Qualifying Accounts | Description Balance at beginning of period Additions Deductions Balance at end of period Year ended December 31, 2020 Allowance for doubtful accounts $ 526 $ 1,582 $ 810 $ 1,298 Year ended December 31, 2019 Allowance for doubtful accounts $ 801 $ 308 $ 583 $ 526 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Results of Operations | The following tables present our unaudited quarterly results of operations for the eight quarters in 2020 and 2019. This unaudited information has been prepared on the same basis as our audited consolidated financial statements and includes all adjustments, consisting only of normal recurring adjustments, that we consider necessary for fair statement of our consolidated financial position and operating results for the quarters presented. This unaudited information should be read in conjunction with the consolidated financial statements and related notes included in Part II, Item 8 of this Annual Report on Form 10-K. Our operating results for any quarter are not necessarily indicative of results for any future quarters or for a full year. Q1 Q2 Q3 Q4 Full Year 2020 2020 2020 2020 2020 Net sales $ 108,605 $ 62,582 $ 91,075 $ 95,344 $ 357,606 Cost of sales 96,762 63,736 81,340 84,267 326,105 Amortization of intangibles 2,677 2,677 2,677 2,676 10,706 Profit sharing, bonuses, and deferred compensation 1,325 1,194 2,288 3,443 8,250 Employee Stock Ownership Plan expense 675 (675 ) — — — Other selling, general and administrative expenses 5,599 4,552 4,490 4,402 19,043 Income (loss) from operations 1,567 (8,902 ) 280 556 (6,498 ) Interest expense (826 ) (637 ) (647 ) (558 ) (2,668 ) Income (loss) before taxes 741 (9,539 ) (367 ) (2 ) (9,166 ) Income tax expense (benefit) 691 (2,525 ) 733 (973 ) (2,074 ) Net income (loss) and comprehensive income (loss) $ 50 $ (7,014 ) $ (1,100 ) $ 971 $ (7,092 ) Earnings (loss) per share Net income (loss) available to shareholders $ 50 $ (7,014 ) $ (1,100 ) $ 971 $ (7,092 ) Basic and diluted earnings (loss) per share $ 0.00 $ (0.35 ) $ (0.05 ) $ 0.05 $ (0.36 ) Basic and diluted weighted average shares outstanding 19,533,533 19,902,912 20,077,039 20,451,203 19,898,122 Q1 Q2 Q3 Q4 Full Year 2019 2019 2019 2019 2019 Net sales $ 143,732 $ 145,130 $ 128,511 $ 102,331 $ 519,704 Cost of sales 124,153 124,595 113,941 98,297 460,986 Amortization of intangibles 2,677 2,677 2,677 2,677 10,706 Profit sharing, bonuses, and deferred compensation 1,750 22,830 678 (153 ) 25,105 Employee Stock Ownership Plan expense 1,500 1,500 1,500 953 5,453 Other selling, general and administrative expenses 6,723 7,506 6,068 5,170 25,466 Contingent consideration revaluation 869 2,674 (9,598 ) — (6,054 ) Income (loss) from operations 6,060 (16,652 ) 13,245 (4,612 ) (1,958 ) Interest expense (2,832 ) (1,991 ) (987 ) (918 ) (6,728 ) Loss on extinguishment of debt — (154 ) — — (154 ) Income (loss) before taxes 3,228 (18,797 ) 12,258 (5,530 ) (8,840 ) Income tax expense (benefit) 769 (3,513 ) 2,512 (3,857 ) (4,088 ) Net income (loss) and comprehensive income (loss) $ 2,459 $ (15,284 ) $ 9,746 $ (1,673 ) $ (4,753 ) Earnings (loss) per share Net income (loss) available to shareholders $ 2,459 $ (15,284 ) $ 9,746 $ (1,673 ) $ (4,753 ) Basic and diluted earnings (loss) per share $ 0.18 $ (0.91 ) $ 0.49 $ (0.08 ) $ (0.27 ) Basic and diluted weighted average shares outstanding 13,443,484 16,799,915 19,740,296 19,711,921 17,447,464 Tax-adjusted pro forma information Net income (loss) available to shareholders $ 2,459 $ (15,284 ) $ 9,746 $ (1,673 ) $ (4,753 ) Pro forma provision for income taxes 70 103 — — 173 Pro forma net income (loss) $ 2,389 $ (15,387 ) $ 9,746 $ (1,673 ) $ (4,926 ) Pro forma basic and diluted earnings (loss) per share $ 0.18 $ (0.92 ) $ 0.49 $ (0.08 ) $ (0.28 ) Basic and diluted weighted average shares outstanding 13,443,484 16,799,915 19,740,296 19,711,921 17,447,464 IPO occurred in Q2 of 2019 |
Nature of business and summar_3
Nature of business and summary of significant accounting policies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
May 31, 2019shares | Dec. 31, 2020USD ($)FacilityReportingUnit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounting Policies [Line Items] | ||||
Number of facilities operated | Facility | 19 | |||
ESOP, plan description | From January 2003 until the Company’s IPO in May 2019, the ESOP owned 100% of the Company’s outstanding shares of common stock which have been fully allocated to active or retired eligible employees. | |||
Percentage of outstanding shares of common stock owned by ESOP | 100.00% | 55.20% | ||
Allowance for doubtful accounts receivable | $ 1,298,000 | $ 526,000 | ||
Reserve for obsolete and slow-moving inventories | 3,199,000 | 3,119,000 | ||
Tooling in progress | 3,126,000 | 1,589,000 | ||
Depreciation expense | $ 21,383,000 | 22,296,000 | $ 16,372,000 | |
Number of reporting unit tested for goodwill impairment | ReportingUnit | 1 | |||
Goodwill impairment | $ 0 | |||
Goodwill | 71,535,000 | 71,535,000 | ||
Deferred financing costs | 207,000 | 142,000 | 2,173,000 | |
Amortization of debt issuance costs and discounts | 358,000 | 381,000 | 198,000 | |
Accumulated amortization | 616,000 | 474,000 | 114,000 | |
Write-offs of debt unamortized costs | 0 | 154,000 | 814,000 | |
Advertising expense | 100,000 | 110,000 | 116,000 | |
Adjustment to retained earnings | $ 200,857,000 | 200,895,000 | ||
ASU 2017-04 [Member] | ||||
Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, early adoption | true | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
ASU 2018-13 [Member] | ||||
Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, early adoption | true | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
Change in accounting principle, accounting standards update, adoption date | Mar. 31, 2020 | |||
Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Percentage fair value exceeds carrying value | 50.00% | |||
Cost of Sales [Member] | ||||
Accounting Policies [Line Items] | ||||
Depreciation expense | $ 21,383,000 | 22,296,000 | 16,372,000 | |
Common Stock [Member] | IPO [Member] | ||||
Accounting Policies [Line Items] | ||||
Common stock sold | shares | 6,250,000 | |||
Percentage of outstanding shares of common stock owned by ESOP after the IPO | 67.00% | |||
Retained Earnings [Member] | ||||
Accounting Policies [Line Items] | ||||
Adjustment to retained earnings | 14,998,000 | $ 22,089,000 | ||
Retained Earnings [Member] | Topic 606 [Member] | Cumulative Effect Period Of Adoption Adjustment [Member] | ||||
Accounting Policies [Line Items] | ||||
Adjustment to retained earnings | $ 0 |
IPO - Additional Information (D
IPO - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | ||
May 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Initial Public Offering [Line Items] | |||
Conversion of stock Employee Stock Ownership Plan | 10,075 | ||
Shares in Employee Stock Ownership Plan | 9,920,774 | 11,790,113 | |
IPO [Member] | |||
Initial Public Offering [Line Items] | |||
Shares in Employee Stock Ownership Plan | 13,443,484 | ||
Common Stock [Member] | IPO [Member] | |||
Initial Public Offering [Line Items] | |||
Common stock sold | 6,250,000 | ||
Sale of shares prices | $ 17 | ||
Cash inflow of issuance of stock | $ 99,344 | ||
Common Stock [Member] | Underwriter [Member] | IPO [Member] | |||
Initial Public Offering [Line Items] | |||
Common stock sold | 152,209 | ||
Sale of shares prices | $ 17 | ||
Cash inflow of issuance of stock | $ 2,419 | ||
May 2019 IPO [Member] | |||
Initial Public Offering [Line Items] | |||
Dividend stock split conversion ratio | 133434.00% |
Select balance sheet data - Sch
Select balance sheet data - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Select Balance Sheet Data [Abstract] | ||
Finished goods and purchased parts | $ 24,561 | $ 28,664 |
Raw materials | 11,266 | 10,834 |
Work-in-process | 5,539 | 6,194 |
Total | $ 41,366 | $ 45,692 |
Select balance sheet data - S_2
Select balance sheet data - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 283,179 | $ 289,063 |
Less accumulated depreciation | 176,491 | 164,000 |
Total property, plant and equipment, net | 106,688 | 125,063 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 1,033 | 1,264 |
Property, plant and equipment useful lives | Indefinite | |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 3,169 | 3,169 |
Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 15 years | |
Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 39 years | |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 55,172 | 58,021 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 15 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 39 years | |
Machinery, Equipment and Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 199,854 | 204,248 |
Machinery, Equipment and Tooling [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 3 years | |
Machinery, Equipment and Tooling [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 10 years | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 3,778 | 3,738 |
Property, plant and equipment useful lives | 5 years | |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 16,242 | 15,469 |
Office Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 3 years | |
Office Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment useful lives | 7 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 3,931 | $ 3,154 |
Select balance sheet data - Add
Select balance sheet data - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Select Balance Sheet Data [Line Items] | |||||||||||
Net amount of property, plant and equipment associated with facility | $ 3,552,000 | $ 3,552,000 | |||||||||
Goodwill impairment loss | 0 | ||||||||||
Goodwill | 71,535,000 | $ 71,535,000 | 71,535,000 | $ 71,535,000 | |||||||
Amortization expense | $ 2,676,000 | $ 2,677,000 | $ 2,677,000 | $ 2,677,000 | $ 2,677,000 | $ 2,677,000 | $ 2,677,000 | $ 2,677,000 | $ 10,706,000 | $ 10,706,000 | $ 4,096,000 |
Minimum [Member] | |||||||||||
Select Balance Sheet Data [Line Items] | |||||||||||
Percentage of fair value of reporting unit in excess of carrying amount | 50.00% | 50.00% |
Select balance sheet data - S_3
Select balance sheet data - Schedule of Changes In Goodwill (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Select Balance Sheet Data [Abstract] | |
Balance | $ 71,535,000 |
Impairment | 0 |
Balance | $ 71,535,000 |
Select balance sheet data - S_4
Select balance sheet data - Schedule of Listing of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Amortizable intangible assets [Abstract] | ||
Accumulated amortization | $ (44,288) | $ (33,582) |
Total amortizable intangible assets, net | 57,656 | 68,362 |
Total intangible assets, net | 61,467 | 72,173 |
Customer Relationships and Contracts [Member] | ||
Amortizable intangible assets [Abstract] | ||
Amortizable intangible assets, gross | $ 78,340 | $ 78,340 |
Customer Relationships and Contracts [Member] | Minimum [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 9 years | 9 years |
Customer Relationships and Contracts [Member] | Maximum [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 12 years | 12 years |
Trade Names [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 10 years | 10 years |
Amortizable intangible assets, gross | $ 14,780 | $ 14,780 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 5 years | 5 years |
Amortizable intangible assets, gross | $ 8,800 | $ 8,800 |
Patents [Member] | ||
Amortizable intangible assets [Abstract] | ||
Intangible assets useful Lives | 19 years | 19 years |
Amortizable intangible assets, gross | $ 24 | $ 24 |
Brand Name [Member] | ||
Amortizable intangible assets [Abstract] | ||
Total intangible assets, net | $ 3,811 | $ 3,811 |
Select balance sheet data - S_5
Select balance sheet data - Schedule of Changes In Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Select Balance Sheet Data [Abstract] | |||||||||||
Balance | $ 72,173 | $ 72,173 | |||||||||
Amortization expense | $ (2,676) | $ (2,677) | $ (2,677) | $ (2,677) | $ (2,677) | $ (2,677) | $ (2,677) | $ (2,677) | (10,706) | $ (10,706) | $ (4,096) |
Balance | $ 61,467 | $ 72,173 | $ 61,467 | $ 72,173 |
Select balance sheet data - S_6
Select balance sheet data - Schedule of Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Select Balance Sheet Data [Abstract] | |
2021 | $ 10,706 |
2022 | 6,952 |
2023 | 6,866 |
2024 | 5,192 |
2025 | 5,192 |
Thereafter | $ 22,748 |
Bank revolving credit notes - A
Bank revolving credit notes - Additional Information (Details) - USD ($) | Sep. 26, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Line Of Credit Facility [Line Items] | |||||
Revolving credit notes | $ 45,257,000 | $ 45,257,000 | $ 72,572,000 | ||
A&R Credit Agreement [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Minimum interest coverage ratio | 3.00% | ||||
Maximum consolidated leverage ratio | 3.25% | ||||
A&R Credit Agreement [Member] | The Agent [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Credit agreement additional borrowing capacity through accordion feature | $ 100,000,000 | ||||
Credit agreement maturity date | Sep. 26, 2024 | ||||
Second Amendment [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Minimum interest coverage ratio | 3.00% | ||||
Maximum consolidated leverage ratio | 4.25% | ||||
Debt instrument covenant description | The Second Amendment provides the Company with temporary changes to the total leverage ratio covenant for the period from June 30, 2020, through December 31, 2021, or such earlier date as the Company may elect (Covenant Relief Period), in return for certain increases in interest rates, fees and restrictions on certain activities of the Company, including capital expenditures, acquisitions, dividends and share repurchases. New pricing, which takes effect for the quarters ending on and after September 30, 2020, includes interest at a fluctuating London Interbank Offered Rate (LIBOR) (at a floor of 75 basis points), plus 1.00% to 2.75%, along with the commitment fee ranging from 20 to 50 basis points. | ||||
Floor rate | 0.75% | ||||
Leverage ratio | 4.25% | ||||
Consolidated leverage ratio | 1.46% | ||||
Interest coverage ration | 9.07% | ||||
Second Amendment [Member] | Scenario Forecast [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Leverage ratio | 3.25% | ||||
Second Amendment [Member] | Minimum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument commitment fee percentage | 0.20% | ||||
Second Amendment [Member] | Minimum [Member] | LIBOR [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.00% | ||||
Second Amendment [Member] | Maximum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument commitment fee percentage | 0.50% | ||||
Second Amendment [Member] | Maximum [Member] | LIBOR [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.75% | ||||
Revolving Credit Facility [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate | 2.50% | 3.25% | |||
Revolving commitments fee percentage | 0.20% | 0.20% | |||
Revolving credit notes | $ 45,257,000 | $ 45,257,000 | $ 72,572,000 | ||
Revolving Credit Facility [Member] | A&R Credit Agreement [Member] | The Agent [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Credit agreement borrowing capacity | $ 200,000,000 | ||||
Letter of Credit Sub-facility [Member] | A&R Credit Agreement [Member] | The Agent [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Credit agreement borrowing capacity | 5,000,000 | ||||
Swingline Facility [Member] | A&R Credit Agreement [Member] | The Agent [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Credit agreement borrowing capacity | $ 20,000,000 |
Capital lease obligation - Addi
Capital lease obligation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capital Leased Assets [Line Items] | |||
Capital Lease Obligations | $ 2,687 | ||
Non-cash capital lease transactions | 0 | $ 1,776 | $ 2,051 |
Equipment [Member] | |||
Capital Leased Assets [Line Items] | |||
Capitalized cost | 3,825 | 3,825 | |
Capital lease, accumulated depreciation | 1,245 | 598 | |
Capital lease, depreciation recognized | $ 644 | $ 503 |
Capital lease obligation - Sche
Capital lease obligation - Schedule of Future Minimum Lease Payments Required Under The Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 734 | |
2022 | 734 | |
2023 | 734 | |
2024 | 514 | |
2025 | 227 | |
Total | 2,943 | |
Less payment amount allocated to interest | 256 | |
Present value of capital lease obligation | 2,687 | |
Current portion of capital lease obligation | 626 | $ 598 |
Long-term portion of capital lease obligation | 2,061 | $ 2,687 |
Total capital lease obligation | $ 2,687 |
Operating lease obligation - Fu
Operating lease obligation - Future Minimum Lease Payments Under Lease (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2021 | $ 3,256 |
2022 | 2,366 |
2023 | 2,294 |
2024 | 1,501 |
2025 | 895 |
Thereafter | 2,162 |
Total | $ 12,474 |
Operating lease obligation - Ad
Operating lease obligation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Disclosure [Abstract] | |||
Operating lease expiration period | 2028-12 | ||
Rent expense | $ 4,471 | $ 4,801 | $ 2,052 |
Employee stock ownership plan -
Employee stock ownership plan - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||||||
Annual contribution vesting percentage | 3.00% | 3.00% | |||||||
Employee stock ownership plan (ESOP), (income) expense | $ (675) | $ 675 | $ 953 | $ 1,500 | $ 1,500 | $ 1,500 | $ 5,453 | $ 4,000 | |
Shares in ESOP | 11,790,113 | 9,920,774 | 11,790,113 | ||||||
Employee Stock Option [Member] | |||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||||||
Employee stock ownership plan (ESOP), (income) expense | $ 0 | $ 5,453 | $ 4,000 |
Retirement plans - Additional I
Retirement plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Percentage of employee contribution of eligible compensation plan | 50.00% | ||
Defined contribution plan, employer discretionary contribution amount | $ 1,833 | $ 0 | $ 696 |
Income taxes - Schedule of Inco
Income taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax expense (benefit) | |||||||||||
U.S Federal | $ 129 | $ 401 | |||||||||
State | 98 | 1,544 | |||||||||
Total | 227 | 1,945 | |||||||||
Deferred income tax expense (benefit) | |||||||||||
U.S Federal | (2,457) | (4,197) | |||||||||
State | 156 | (1,836) | |||||||||
Total | (2,301) | (6,033) | |||||||||
Total income tax benefit | $ (973) | $ 733 | $ (2,525) | $ 691 | $ (3,857) | $ 2,512 | $ (3,513) | $ 769 | $ (2,074) | $ (4,088) | $ (459) |
Income taxes - Schedule of Reco
Income taxes - Schedule of Reconciliation of Statutory Federal Income Tax Expense to Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense at the federal statutory rate - 21% | $ (1,925) | $ (1,854) | |||||||||
State and local income taxes - net of federal income tax benefits | 79 | (58) | |||||||||
Compensation deduction limitation - section 162(m) adjustment | (113) | 357 | |||||||||
Income taxed by shareholder before IPO | (387) | (867) | |||||||||
Other - perms | 51 | 77 | |||||||||
Transaction costs | 607 | ||||||||||
Change in tax status | (2,355) | ||||||||||
Tax credits generated | (409) | (254) | |||||||||
Uncertain tax positions - current year | 106 | ||||||||||
Uncertain tax positions - prior year | 115 | ||||||||||
Loan fee amortization | 698 | ||||||||||
Stock compensation | 764 | ||||||||||
Section 481(a) adjustments | (184) | ||||||||||
Fixed assets | (452) | ||||||||||
State tax return to provision | (121) | ||||||||||
Other miscellaneous tax | (296) | 259 | |||||||||
Total income tax benefit | $ (973) | $ 733 | $ (2,525) | $ 691 | $ (3,857) | $ 2,512 | $ (3,513) | $ 769 | $ (2,074) | $ (4,088) | $ (459) |
Effective tax rate | 22.60% | 47.50% |
Income taxes - Schedule of Re_2
Income taxes - Schedule of Reconciliation of Statutory Federal Income Tax Expense to Income Tax Expense (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Percentage of federal statutory rate | 21.00% | 21.00% |
Income taxes - Components of De
Income taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Deferred compensation | $ 8,295 | $ 8,645 |
Inventory adjustments | 1,506 | 1,837 |
Accrued expenses | 409 | 211 |
Credits | 508 | 279 |
Net operating loss | 2,626 | 3,120 |
Other | 338 | |
Total deferred tax assets | 13,682 | 14,092 |
Deferred tax liabilities: | ||
Property, plant and equipment | 9,485 | 8,354 |
Intangibles | 15,773 | 19,305 |
Other | 311 | 622 |
Total deferred tax liabilities | 25,569 | 28,281 |
Net deferred tax liability | $ (11,887) | $ (14,188) |
Income taxes - Additional Infor
Income taxes - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Income Tax [Line Items] | |
Tax expense for interest and penalties | $ 0 |
Unrecognized tax benefits that would impact effective tax rate | 208,000 |
Federal [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | $ 11,833,000 |
Tax years open for examination | 2017 |
State [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | $ 2,042,000 |
Tax years open for examination | 2016 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Increase from current year tax positions | $ 106 |
Increase from prior year tax positions | 115 |
Balance as of December 31, 2020 | $ 221 |
Deferred compensation - Additio
Deferred compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||||||||
Description of deferred compensation arrangements | The Mayville Engineering Deferred Compensation Plan is available for certain employees designated to be eligible to participate by the Company and approved by the Board of Directors. | ||||||||||
Deferred compensation plan (Income) expense | $ 3,443 | $ 2,288 | $ 1,194 | $ 1,325 | $ (153) | $ 678 | $ 22,830 | $ 1,750 | $ 8,250 | $ 25,105 | $ 8,058 |
Deferred compensation cash-based arrangements liability | $ 25,631 | $ 24,949 | 25,631 | 24,949 | |||||||
Deferred Profit Sharing [Member] | |||||||||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||||||||
Deferred compensation plan (Income) expense | 725 | 10,476 | 1,647 | ||||||||
Employees [Member] | |||||||||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||||||||
Deferred compensation plan (Income) expense | $ 63 | $ 1,296 | $ 856 | ||||||||
Maximum [Member] | |||||||||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||||||||
Annual short term cash incentive | 100.00% | ||||||||||
Deferred compensation arrangements | 50.00% |
Long-Term incentive plan - Addi
Long-Term incentive plan - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||||||||
Long term incentives plan terms | Prior to the IPO, the Company’s long-term incentive plan (LTIP) was available for any employee who had been designated to be eligible to participate by the Compensation Committee of the Board of Directors. Annually, the LTIP provided for long-term cash incentive awards to eligible participants based on the Company’s performance over a three-year performance period. | ||||||||||
Long-Term Incentive Plan | $ 3,443,000 | $ 2,288,000 | $ 1,194,000 | $ 1,325,000 | $ (153,000) | $ 678,000 | $ 22,830,000 | $ 1,750,000 | $ 8,250,000 | $ 25,105,000 | $ 8,058,000 |
Deferred Bonus | |||||||||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||||||||
Long-Term Incentive Plan | $ 0 | $ 10,000,000 | $ 1,712,000 | ||||||||
Chief Executive Officer [Member] | |||||||||||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||||||||||
Increase in fair value of long term incentive plan | 12.00% | ||||||||||
Long term incentive plan | 3 years |
Self-Funded insurance - Additio
Self-Funded insurance - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | |||
Estimated accrued liability | $ 1,721 | $ 1,316 | |
Reinsured limit of aggregate expense | $ 20,849 | $ 19,208 | $ 17,726 |
Segments - Additional Informati
Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Fair value of financial instr_3
Fair value of financial instruments - Schedule of Financial Assets and Liabilities Accounted for at Fair Value by Fair Value Hierarchy (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | $ 25,631 | $ 24,949 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 4,865 | 2,470 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 20,766 | 22,479 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Deferred Compensation Liability [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 25,631 | 24,949 |
Deferred Compensation Liability [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 4,865 | 2,470 |
Deferred Compensation Liability [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 20,766 | 22,479 |
Deferred Compensation Liability [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | $ 0 | $ 0 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Changes in Contract Assets and Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Contract asset, beginning balance | $ 1,589 |
Net activity | 1,537 |
Contract asset, ending balance | 3,126 |
Contract liability, beginning balance | 914 |
Net activity | 146 |
Contract liability, ending balance | $ 1,060 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Disaggregation of Revenue by Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 95,344 | $ 91,075 | $ 62,582 | $ 108,605 | $ 102,331 | $ 128,511 | $ 145,130 | $ 143,732 | $ 357,606 | $ 519,704 | $ 354,526 |
Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 364,597 | 524,544 | 358,550 | ||||||||
Intercompany Sales Elimination | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | (6,991) | (4,839) | (4,024) | ||||||||
Outdoor Sports | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 7,225 | 7,181 | 6,862 | ||||||||
Fabrication | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 227,476 | 334,340 | 147,099 | ||||||||
Performance structures | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 60,597 | 71,881 | 84,231 | ||||||||
Tube | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | 49,868 | 71,108 | 80,715 | ||||||||
Tank | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Net sales | $ 19,431 | $ 40,033 | $ 39,641 |
Temporary equity - Schedule of
Temporary equity - Schedule of Changes to Temporary Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Redeemable Common Stock [Member] | ||
Temporary Equity [Line Items] | ||
Beginning, Balance | $ 133,806 | $ 125,042 |
Change in redemption value of outstanding redeemable common shares, net | 8,764 | |
Transfer from temporary equity to common equity | (133,806) | |
Ending, Balance | 133,806 | |
Treasury Shares [Member] | ||
Temporary Equity [Line Items] | ||
Beginning, Balance | (57,659) | (49,826) |
Purchase of treasury shares | (11,833) | |
Redistribution of stockholders share | 4,000 | |
Transfer from temporary equity to common equity | 57,659 | |
Ending, Balance | (57,659) | |
Retained Earnings [Member] | ||
Temporary Equity [Line Items] | ||
Beginning, Balance | 26,842 | 17,671 |
Net income | 2,856 | 17,936 |
Change in redemption value of outstanding redeemable common shares, net | (8,764) | |
Transfer from temporary equity to common equity | $ (29,698) | |
Ending, Balance | $ 26,842 |
Common equity - Additional Info
Common equity - Additional Information (Details) - shares | Jun. 28, 2019 | May 13, 2019 |
Class Of Stock [Line Items] | ||
Stockholders' equity dividend description | On May 13, 2019, the Company issued a stock dividend specific to pre-IPO shares, of approximately 1,334.34-for-1. The share dividend was accounted for as a 1,334.34-for-1 stock split and is retroactively reflected in these consolidated financial statements. All share redemption provisions were removed effective with the IPO. | |
Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Shares cancelled | 24,180,421 | |
Common Stock [Member] | IPO [Member] | ||
Class Of Stock [Line Items] | ||
Additional commons stock was sold | 6,402,209 |
Earnings per share - Schedule o
Earnings per share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
Stock Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities excluded from computation of diluted earnings per share | 600,530 |
Concentration of major custom_3
Concentration of major customers - Schedules of Major Customer Concentrations (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customer A [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 15.30% | 15.10% | 22.60% |
Customer A [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.30% | ||
Concentration risk percentage | <10% | ||
Customer B [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.10% | 13.50% | 19.30% |
Customer B [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | <10% | <10% | |
Customer C [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.50% | 17.40% | |
Concentration risk percentage | <10% | ||
Customer C [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.20% | ||
Concentration risk percentage | <10% | ||
Customer D [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.60% | 13.10% | |
Concentration risk percentage | <10% | ||
Customer D [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | <10% | <10% | |
Customer E [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | <10% | <10% | <10% |
Customer E [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.50% | ||
Concentration risk percentage | <10% | ||
Customer F [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | <10% | <10% | <10% |
Customer F [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.40% | ||
Concentration risk percentage | <10% |
Stock based compensation - Addi
Stock based compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation recognition period | Feb. 27, 2022 | |
Stock options, issued and outstanding | 125,414 | |
Stock options outstanding, exercise price | $ 17 | |
Stock options outstanding, remaining contractual life | 8 years 6 months | |
Stock options outstanding, intrinsic value | $ 0 | |
Share-based compensation arrangement by share-based payment award, fair value assumptions, method used | Black-Scholes valuation model | |
Fair value of the options granted | $ 2.84 | $ 6.07 |
Share-based compensation arrangement by share-based payment award, contractual life | 10 years | |
Share-based compensation arrangement by share-based payment award, award requisite service period | 2 years | |
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 50.00% | |
Share based compensation arrangement by share based payment award options average expected term | 5 years 9 months | |
Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation arrangement by share based payment award options expected term | 5 years 6 months | |
Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation arrangement by share based payment award options expected term | 6 years | |
2019 Omnibus Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payments based on the value of its common stock | 2,000,000 |
Stock based compensation - Summ
Stock based compensation - Summary of Stock-based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense, net of tax | $ 4,732 | $ 3,487 |
IPO Unit Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense, net of tax | 1,029 | 1,871 |
Unit Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense, net of tax | 2,305 | 1,080 |
Option Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense, net of tax | $ 1,398 | $ 536 |
Stock based compensation - Sche
Stock based compensation - Schedule of Unrecognized Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance | $ 3,719 | |
Grants | 5,063 | $ 7,382 |
Forfeitures | (1,073) | (176) |
Expense | (4,732) | (3,487) |
Ending balance | 2,977 | 3,719 |
Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance | 2,595 | |
Grants | 3,022 | 5,634 |
Forfeitures | (738) | (88) |
Expense | (3,334) | (2,951) |
Ending balance | 1,545 | 2,595 |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance | 1,124 | |
Grants | 2,041 | 1,748 |
Forfeitures | (335) | (88) |
Expense | (1,398) | (536) |
Ending balance | $ 1,432 | $ 1,124 |
Stock based compensation - Su_2
Stock based compensation - Summary of Activity for Unit Award and Stock Option Award (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted average grant date fair value | ||
Weighted average grant date fair value, Grants | $ 2.84 | $ 6.07 |
Units [Member] | ||
Number of units | ||
Number of units, Beginning balance | 326,288 | |
Number of units, Grants | 457,369 | 331,436 |
Number of units, Forfeitures | (62,409) | (5,148) |
Number of units, Vested | (264,991) | |
Number of units, Ending balance | 456,257 | 326,288 |
Weighted average grant date fair value | ||
Weighted average grant date fair value, Beginning balance | $ 17 | |
Weighted average grant date fair value, Grants | 6.61 | $ 17 |
Weighted average grant date fair value, Forfeitures | 8.90 | 17 |
Weighted average grant date fair value, Vested | 17 | |
Weighted average grant date fair value, Ending balance | $ 7.69 | $ 17 |
Employee Stock Option [Member] | ||
Number of options | ||
Number of options, Beginning balance | 273,479 | |
Number of options, Grants | 718,489 | 287,895 |
Number of options, Forfeitures | (148,026) | (14,416) |
Number of options, Vested | (125,414) | |
Number of options, Ending balance | 718,528 | 273,479 |
Weighted average grant date fair value | ||
Weighted average grant date fair value, Beginning balance | $ 17 | |
Weighted average grant date fair value, Grants | 7.12 | $ 17 |
Weighted average grant date fair value, Forfeitures | 9.13 | 17 |
Weighted average grant date fair value, Vested | 17 | |
Weighted average grant date fair value, Ending balance | $ 8.74 | $ 17 |
Stock based compensation - Su_3
Stock based compensation - Summary of Fair Value Assumptions and Inputs (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock price at date of grant/exercise price | $ 7.12 | $ 17 |
Expected term (in years) | 5 years 9 months | 10 years |
Estimated volatility | 41.20% | 21.30% |
Estimated risk-free rate of return | 1.20% | 2.40% |
Expected dividend yield | 0.00% | 0.00% |
Greenwood Facility Closure an_3
Greenwood Facility Closure and Restructuring - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)Facility | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||||
Loss (gain) on disposal of property, plant and equipment | $ 667 | $ (62) | $ (177) | ||
Greenwood Facility [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Date of announcement of closing facility | May 6, 2020 | ||||
Total costs incurred for facility closure and restructuring | 2,524 | ||||
Loss (gain) on disposal of property, plant and equipment | 931 | ||||
Severance and retention bonuses | 282 | ||||
Disposition of inventory | 622 | ||||
Buyout of operating leases | 78 | ||||
Estimated fair value of facility | 3,552 | ||||
Assets disposed, net book value | $ 2,475 | ||||
Assets disposed remaining useful life | 3 years | ||||
Assets disposed depreciation expense | $ 825 | ||||
Assets disposed remaining weighted average useful life | 27 years | ||||
Annual depreciation expense | $ 133 | ||||
Disposal group annual facility maintenance costs | 800 | ||||
Disposal group assets personnel costs | $ 2,250 | ||||
Disposal group assets annual personnel expenses | $ 9,000 | ||||
Disposal group assets annual personnel expenses to be transitioned to other facilities | Facility | 5 |
Greenwood Facility Closure an_4
Greenwood Facility Closure and Restructuring - Schedule of Activity Related to Restructuring (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Charges | $ 2,524 |
Cash receipts (payments) | (1,886) |
Accrual adjustments | (638) |
Employee Severance and Retention Bonus Reserve [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Charges | 282 |
Cash receipts (payments) | (282) |
Inventory Excess and Obsolescence Reserve [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Charges | 622 |
Cash receipts (payments) | 16 |
Accrual adjustments | (638) |
Other Reserves [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Charges | 1,620 |
Cash receipts (payments) | $ (1,620) |
Valuation and qualifying acco_3
Valuation and qualifying accounts - Schedule Of Valuation And Qualifying Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | $ 526 | $ 801 |
Additions | 1,582 | 308 |
Deductions | 810 | 583 |
Balance at end of period | $ 1,298 | $ 526 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Schedule of Unaudited Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 95,344 | $ 91,075 | $ 62,582 | $ 108,605 | $ 102,331 | $ 128,511 | $ 145,130 | $ 143,732 | $ 357,606 | $ 519,704 | $ 354,526 |
Cost of sales | 84,267 | 81,340 | 63,736 | 96,762 | 98,297 | 113,941 | 124,595 | 124,153 | 326,105 | 460,986 | 303,948 |
Amortization of intangibles | 2,676 | 2,677 | 2,677 | 2,677 | 2,677 | 2,677 | 2,677 | 2,677 | 10,706 | 10,706 | 4,096 |
Profit sharing, bonuses, and deferred compensation | 3,443 | 2,288 | 1,194 | 1,325 | (153) | 678 | 22,830 | 1,750 | 8,250 | 25,105 | 8,058 |
Employee Stock Ownership Plan expense | (675) | 675 | 953 | 1,500 | 1,500 | 1,500 | 5,453 | 4,000 | |||
Other selling, general and administrative expenses | 4,402 | 4,490 | 4,552 | 5,599 | 5,170 | 6,068 | 7,506 | 6,723 | 19,043 | 25,466 | 12,276 |
Contingent consideration revaluation | (9,598) | 2,674 | 869 | (6,054) | (21) | ||||||
Income (loss) from operations | 556 | 280 | (8,902) | 1,567 | (4,612) | 13,245 | (16,652) | 6,060 | (6,498) | (1,958) | 22,169 |
Interest expense | (558) | (647) | (637) | (826) | (918) | (987) | (1,991) | (2,832) | (2,668) | (6,728) | (3,879) |
Loss on extinguishment of debt | (154) | (154) | (814) | ||||||||
Income (loss) before taxes | (2) | (367) | (9,539) | 741 | (5,530) | 12,258 | (18,797) | 3,228 | (9,166) | (8,840) | 17,476 |
Income tax expense (benefit) | (973) | 733 | (2,525) | 691 | (3,857) | 2,512 | (3,513) | 769 | (2,074) | (4,088) | (459) |
Net income (loss) and comprehensive income (loss) | 971 | (1,100) | (7,014) | 50 | (1,673) | 9,746 | (15,284) | 2,459 | (7,092) | (4,753) | 17,935 |
Earnings (loss) per share | |||||||||||
Net income (loss) available to shareholders | $ 971 | $ (1,100) | $ (7,014) | $ 50 | $ (1,673) | $ 9,746 | $ (15,284) | $ 2,459 | $ (7,092) | $ (4,753) | $ 17,935 |
Basic and diluted earnings (loss) per share | $ 0.05 | $ (0.05) | $ (0.35) | $ 0 | $ (0.08) | $ 0.49 | $ (0.91) | $ 0.18 | $ (0.36) | $ (0.27) | $ 1.29 |
Basic and diluted weighted average shares outstanding | 20,451,203 | 20,077,039 | 19,902,912 | 19,533,533 | 19,711,921 | 19,740,296 | 16,799,915 | 13,443,484 | 19,898,122 | 17,447,464 | 13,891,301 |
Tax-adjusted pro forma information | |||||||||||
Net income (loss) available to shareholders | $ 971 | $ (1,100) | $ (7,014) | $ 50 | $ (1,673) | $ 9,746 | $ (15,284) | $ 2,459 | $ (7,092) | $ (4,753) | $ 17,935 |
Pro forma provision for income taxes | 103 | 70 | 173 | 4,663 | |||||||
Pro forma net income (loss) | $ (1,673) | $ 9,746 | $ (15,387) | $ 2,389 | $ (7,092) | $ (4,926) | $ 13,272 | ||||
Pro forma basic and diluted earnings (loss) per share | $ (0.08) | $ 0.49 | $ (0.92) | $ 0.18 | $ (0.36) | $ (0.28) | $ 0.96 | ||||
Basic and diluted weighted average shares outstanding | 20,451,203 | 20,077,039 | 19,902,912 | 19,533,533 | 19,711,921 | 19,740,296 | 16,799,915 | 13,443,484 | 19,898,122 | 17,447,464 | 13,891,301 |