Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | GORMAN RUPP CO | |
Entity Central Index Key | 42,682 | |
Trading Symbol | grc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 26,091,123 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net sales | $ 96,265 | $ 103,892 | $ 196,522 | $ 203,125 |
Cost of products sold | 73,025 | 79,751 | 150,385 | 155,069 |
Gross profit | 23,240 | 24,141 | 46,137 | 48,056 |
Selling, general and administrative expenses | 13,702 | 14,258 | 27,371 | 27,570 |
Operating income | 9,538 | 9,883 | 18,766 | 20,486 |
Other income | 108 | 122 | 202 | 453 |
Other expense | (14) | (140) | (77) | (161) |
Income before income taxes | 9,632 | 9,865 | 18,891 | 20,778 |
Income taxes | 3,012 | 3,236 | 5,989 | 6,874 |
Net income | $ 6,620 | $ 6,629 | $ 12,902 | $ 13,904 |
Earnings per share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.49 | $ 0.53 |
Cash dividends per share (in dollars per share) | $ 0.11 | $ 0.10 | $ 0.21 | $ 0.20 |
Average number of shares outstanding (in shares) | 26,083,623 | 26,260,543 | 26,083,623 | 26,260,543 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 6,620 | $ 6,629 | $ 12,902 | $ 13,904 |
Cumulative translation adjustments | (254) | 621 | 1,246 | (2,215) |
Pension and postretirement medical liability adjustments, net of tax | 232 | 1,162 | 482 | 1,388 |
Other comprehensive (loss) income | (22) | 1,783 | 1,728 | (827) |
Comprehensive income | $ 6,598 | $ 8,412 | $ 14,630 | $ 13,077 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 49,541 | $ 23,724 |
Accounts receivable - net | 74,676 | 76,758 |
Inventories - net | 75,551 | 82,818 |
Other current assets | 2,561 | 6,091 |
Total current assets | 202,329 | 189,391 |
Property, plant and equipment | 273,191 | 271,739 |
Less accumulated depreciation | (147,816) | (141,852) |
Property, plant and equipment - net | 125,375 | 129,887 |
Other assets | 3,867 | 3,860 |
Goodwill and other intangible assets - net | 40,413 | 41,063 |
Total assets | 371,984 | 364,201 |
Current liabilities: | ||
Accounts payable | 15,298 | 14,529 |
Payroll and employee related liabilities | 11,801 | 10,871 |
Commissions payable | 10,612 | 7,950 |
Deferred revenue | 361 | 1,741 |
Accrued expenses | 8,571 | 8,369 |
Total current liabilities | 46,643 | 43,460 |
Pension benefits | 4,084 | 9,309 |
Postretirement benefits | 21,140 | 20,784 |
Deferred and other income taxes | 3,943 | 3,627 |
Total liabilities | 75,810 | 77,180 |
Equity: | ||
Outstanding common shares: 26,083,623 at June 30, 2016 and December 31, 2015 (net of treasury shares of 965,173, respectively), at stated capital amounts | 5,095 | 5,095 |
Retained earnings | 311,766 | 304,341 |
Accumulated other comprehensive loss | (20,687) | (22,415) |
Total equity | 296,174 | 287,021 |
Total liabilities and equity | $ 371,984 | $ 364,201 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - shares | Jun. 30, 2016 | Dec. 31, 2015 |
Common Stock Outstanding (in shares) | 26,083,623 | 26,083,623 |
Treasury Shares (in shares) | 965,173 | 965,173 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 12,902 | $ 13,904 |
Adjustments to reconcile net income attributable to net cash provided by operating activities: | ||
Depreciation and amortization | 7,777 | 7,532 |
Pension expense | 1,826 | 3,277 |
Contributions to pension plan | (6,000) | |
Changes in operating assets and liabilities: | ||
Accounts receivable - net | 2,082 | (6,060) |
Inventories - net | 7,267 | 1,510 |
Accounts payable | 769 | (11) |
Commissions payable | 2,662 | (40) |
Deferred revenue | (1,380) | (1,999) |
Prepaid income taxes | 2,076 | (435) |
Payroll and benefit obligations | 717 | (213) |
Accrued expenses and other | 2,893 | 49 |
Net cash provided by operating activities | 33,591 | 17,514 |
Cash flows from investing activities: | ||
Capital additions - net | (2,547) | (4,104) |
Acquisition, net of cash acquired | 34 | |
Net cash used for investing activities | (2,547) | (4,070) |
Cash dividends | (5,478) | (5,252) |
Payments to bank for borrowings | (6,000) | |
Net cash used for financing activities | (5,478) | (11,252) |
Effect of exchange rate changes on cash | 251 | (694) |
Net increase in cash and cash equivalents | 25,817 | 1,498 |
Cash and cash equivalents: | ||
Beginning of period | 23,724 | 24,491 |
End of period | $ 49,541 | $ 25,989 |
Note A - Basis of Presentation
Note A - Basis of Presentation of Financial Statements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | NOTE A - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The consolidated financial statements include the accounts of The Gorman-Rupp Company (the “Company” or “Gorman-Rupp”) and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. In the opinion of management of the Company, all adjustments considered necessary for a fair presentation have been included. Certain amounts for 2015 have been reclassified to conform to the 2016 presentation. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, from which related information herein has been derived. |
Note B - Recently Issued Accoun
Note B - Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE B - RECENTLY ISSUED ACCOUNTING STANDARDS The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” In November 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In July 2015, the FASB issued ASU 2015-11, “ Simplifying the Measurement of Inventory (Topic 330 ),” The Company currently does not expect the adoption of ASU 2015-11 to have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606), |
Note C - Inventories
Note C - Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE C - INVENTORIES Inventories are stated at the lower of cost or market. The costs for approximately 72% of inventories at June 30, 2016 and 73% of inventories at December 31, 2015 are determined using the last-in, first-out (LIFO) method, with the remainder determined using the first-in, first-out (FIFO) method applied on a consistent basis. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time. Interim LIFO calculations are based on The major components of inventories are as follows (net of LIFO reserves of $60.0 million and $59.1 million at June 30, 2016 and December 31, 2015, respectively): (Dollars in thousands) June 30, 2016 December 31, 2015 Raw materials and in-process $ 24,088 $ 25,652 Finished parts 42,936 46,270 Finished products 8,527 10,896 Total inventories $ 75,551 $ 82,818 |
Note D - Product Warranties
Note D - Product Warranties | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | NOTE D - PRODUCT WARRANTIES A liability is established for estimated future warranty and service claims based on historical claims experience and specific product failures. The Company expenses warranty costs directly to cost of products sold. Changes in the Company’s product warranty liability are: June 30, (Dollars in thousands) 2016 2015 Balance at beginning of year $ 1,380 $ 1,189 Provision 1,160 734 Claims (884 ) (727 ) Balance at end of period $ 1,656 $ 1,196 |
Note E - Pension and Other Post
Note E - Pension and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE E - PENSION AND OTHER POSTRETIREMENT BENEFITS The Company sponsors a defined benefit pension plan (“Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The Plan was closed to new participants effective January 1, 2008. Employees hired after that date, in eligible locations, are eligible to participate in an enhanced 401(k) plan instead of the defined benefit pension plan. Employees hired prior to January 1, 2008 continue to accrue benefits under the Plan. Additionally, the Company sponsors defined contribution pension plans made available to all domestic and Canadian employees. The Company funds the cost of these benefits as incurred. The following tables present the components of net periodic benefit cost: Pension Benefits Postretirement Benefits Three Months Ended June 30, Three Months Ende d June 30, (Dollars in thousands) 2016 2015 2016 2015 Service cost $ 709 $ 783 $ 298 $ 299 Interest cost 661 659 211 199 Expected return on plan assets (983 ) (1,067 ) - - Recognized actuarial loss (gain) 526 537 (175 ) (164 ) Settlement loss - 1,452 - - Net periodic benefit cost $ 913 $ 2,364 $ 334 $ 334 Pension Benefits Postretirement Benefits Six Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Service cost $ 1,418 $ 1,567 $ 596 $ 598 Interest cost 1,322 1,318 421 397 Expected return on plan assets (1,965 ) (2,134 ) - - Recognized actuarial loss (gain) 1,051 1,074 (349 ) (327 ) Settlement loss - 1,452 - - Net periodic benefit cost $ 1,826 $ 3,277 $ 668 $ 668 |
Note F - Accumulated Other Comp
Note F - Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Accumulated Other Comprehensive Loss [Text Block] | NOTE F – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes reclassifications out of accumulated other comprehensive income (loss): Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Pension and other postretirement benefits: Recognized actuarial loss (a) $ 351 $ 384 $ 702 $ 739 Settlement loss (b) - 959 - 959 Settlement loss (c) - 493 - 493 Total before income tax $ 351 $ 1,836 $ 702 $ 2,191 Income tax (119 ) (674 ) (220 ) (803 ) Net of income tax $ 232 $ 1,162 $ 482 $ 1,388 (a) The recognized actuarial loss is included in the computation of net periodic benefit cost. See Note E for additional details. (b) This portion of the settlement loss is included in cost of products sold on the condensed consolidated statements of income. (c) This portion of the settlement loss in included in Selling, general & administrative expenses on the condensed consolidated statements of income. The following tables summarize changes in balances for each component of accumulated other comprehensive income (loss): (Dollars in thousands) Currency Translation Adjustments Pensi Other Postretirement Benefits Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2016 $ (9,057 ) $ (13,358 ) $ (22,415 ) Reclassification adjustments - 702 702 Current period credit 1,246 - 1,246 Income tax expense - (220 ) (220 ) Balance at June 30, 2016 $ (7,811 ) $ (12,876 ) $ (20,687 ) (Dollars in thousands) Currency Translation Adjustments Pension and Other Postretirement Benefits Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2015 $ (4,338 ) $ (12,988 ) $ (17,326 ) Reclassification adjustments - 2,191 2,191 Current period (charge) credit (2,215 ) - (2,215 ) Income tax expense - (803 ) (803 ) Balance at June 30, 2015 $ (6,553 ) $ (11,600 ) $ (18,153 ) |
Note C - Inventories (Tables)
Note C - Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | (Dollars in thousands) June 30, 2016 December 31, 2015 Raw materials and in-process $ 24,088 $ 25,652 Finished parts 42,936 46,270 Finished products 8,527 10,896 Total inventories $ 75,551 $ 82,818 |
Note D - Product Warranties (Ta
Note D - Product Warranties (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | June 30, (Dollars in thousands) 2016 2015 Balance at beginning of year $ 1,380 $ 1,189 Provision 1,160 734 Claims (884 ) (727 ) Balance at end of period $ 1,656 $ 1,196 |
Note E - Pension and Other Po15
Note E - Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Costs of Retirement Plans [Table Text Block] | Pension Benefits Postretirement Benefits Three Months Ended June 30, Three Months Ende d June 30, (Dollars in thousands) 2016 2015 2016 2015 Service cost $ 709 $ 783 $ 298 $ 299 Interest cost 661 659 211 199 Expected return on plan assets (983 ) (1,067 ) - - Recognized actuarial loss (gain) 526 537 (175 ) (164 ) Settlement loss - 1,452 - - Net periodic benefit cost $ 913 $ 2,364 $ 334 $ 334 Pension Benefits Postretirement Benefits Six Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Service cost $ 1,418 $ 1,567 $ 596 $ 598 Interest cost 1,322 1,318 421 397 Expected return on plan assets (1,965 ) (2,134 ) - - Recognized actuarial loss (gain) 1,051 1,074 (349 ) (327 ) Settlement loss - 1,452 - - Net periodic benefit cost $ 1,826 $ 3,277 $ 668 $ 668 |
Note F - Accumulated Other Co16
Note F - Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Pension and other postretirement benefits: Recognized actuarial loss (a) $ 351 $ 384 $ 702 $ 739 Settlement loss (b) - 959 - 959 Settlement loss (c) - 493 - 493 Total before income tax $ 351 $ 1,836 $ 702 $ 2,191 Income tax (119 ) (674 ) (220 ) (803 ) Net of income tax $ 232 $ 1,162 $ 482 $ 1,388 |
Comprehensive Income (Loss) [Table Text Block] | (Dollars in thousands) Currency Translation Adjustments Pensi Other Postretirement Benefits Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2016 $ (9,057 ) $ (13,358 ) $ (22,415 ) Reclassification adjustments - 702 702 Current period credit 1,246 - 1,246 Income tax expense - (220 ) (220 ) Balance at June 30, 2016 $ (7,811 ) $ (12,876 ) $ (20,687 ) (Dollars in thousands) Currency Translation Adjustments Pension and Other Postretirement Benefits Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2015 $ (4,338 ) $ (12,988 ) $ (17,326 ) Reclassification adjustments - 2,191 2,191 Current period (charge) credit (2,215 ) - (2,215 ) Income tax expense - (803 ) (803 ) Balance at June 30, 2015 $ (6,553 ) $ (11,600 ) $ (18,153 ) |
Note C - Inventories (Details T
Note C - Inventories (Details Textual) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Percentage of LIFO Inventory | 72.00% | 73.00% |
Inventory, LIFO Reserve | $ 60 | $ 59.1 |
Note C - Inventories (Details)
Note C - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Raw materials and in-process | $ 24,088 | $ 25,652 |
Finished parts | 42,936 | 46,270 |
Finished products | 8,527 | 10,896 |
Total inventories | $ 75,551 | $ 82,818 |
Note D - Product Warranties (De
Note D - Product Warranties (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Balance at beginning of year | $ 1,380 | $ 1,189 |
Provision | 1,160 | 734 |
Claims | (884) | (727) |
Balance at end of period | $ 1,656 | $ 1,196 |
Note E - Pension and Other Po20
Note E - Pension and Other Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Plan [Member] | ||||
Service cost | $ 709 | $ 783 | $ 1,418 | $ 1,567 |
Interest cost | 661 | 659 | 1,322 | 1,318 |
Expected return on plan assets | (983) | (1,067) | (1,965) | (2,134) |
Recognized actuarial loss (gain) | 526 | 537 | 1,051 | 1,074 |
Settlement loss | 1,452 | 1,452 | ||
Net periodic benefit cost | 913 | 2,364 | 1,826 | 3,277 |
Service cost | 709 | 783 | 1,418 | 1,567 |
Interest cost | 661 | 659 | 1,322 | 1,318 |
Expected return on plan assets | (983) | (1,067) | (1,965) | (2,134) |
Recognized actuarial loss (gain) | 526 | 537 | 1,051 | 1,074 |
Settlement loss | 1,452 | 1,452 | ||
Postretirement Benefits [Member] | ||||
Service cost | 298 | 299 | 596 | 598 |
Interest cost | 211 | 199 | 421 | 397 |
Expected return on plan assets | ||||
Recognized actuarial loss (gain) | (175) | (164) | (349) | (327) |
Settlement loss | ||||
Net periodic benefit cost | 334 | 334 | 668 | 668 |
Service cost | 298 | 299 | 596 | 598 |
Interest cost | 211 | 199 | 421 | 397 |
Expected return on plan assets | ||||
Recognized actuarial loss (gain) | (175) | (164) | (349) | (327) |
Settlement loss |
Note F - Reclassification out o
Note F - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Cost of Sales [Member] | |||||
Settlement loss | [1] | $ 959 | $ 959 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Selling, General and Administrative Expenses [Member] | |||||
Settlement loss | [2] | 493 | 493 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Recognized actuarial loss (a) | [3] | 351 | 384 | 702 | 739 |
Total before income tax | 351 | 1,836 | 702 | 2,191 | |
Income tax | (119) | (674) | (220) | (803) | |
Net of income tax | 232 | 1,162 | 482 | 1,388 | |
Total before income tax | 9,632 | 9,865 | 18,891 | 20,778 | |
Income tax | $ (3,012) | $ (3,236) | $ (5,989) | $ (6,874) | |
[1] | This portion of the settlement loss is included in cost of products sold on the condensed consolidated statements of income. | ||||
[2] | This portion of the settlement loss in included in Selling, general & administrative expenses on the condensed consolidated statements of income. | ||||
[3] | The recognized actuarial loss is included in the computation of net periodic benefit cost. See Note E for additional details. |
Note F - Components of Accumula
Note F - Components of Accumulated Other Comprehensive Income (Loss) as Reported in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Currency Translation Adjustments [Member] | ||
Balance | $ (9,057) | $ (4,338) |
Reclassification adjustments | ||
Current period credit | 1,246 | (2,215) |
Income tax expense | ||
Balance | (7,811) | (6,553) |
Current period (charge) credit | 1,246 | (2,215) |
Pension Benefits [Member] | ||
Balance | (13,358) | (12,988) |
Reclassification adjustments | 702 | 2,191 |
Current period credit | ||
Income tax expense | (220) | (803) |
Balance | (12,876) | (11,600) |
Current period (charge) credit | ||
Accumulated Other Comprehensive Income Loss [Member] | ||
Balance | (22,415) | (17,326) |
Reclassification adjustments | 702 | 2,191 |
Current period credit | 1,246 | (2,215) |
Income tax expense | (220) | (803) |
Balance | (20,687) | (18,153) |
Current period (charge) credit | 1,246 | $ (2,215) |
Balance | (22,415) | |
Balance | $ (20,687) |