Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 30, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-6747 | |
Entity Registrant Name | The Gorman-Rupp Company | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-0253990 | |
Entity Address, Address Line One | 600 South Airport Road | |
Entity Address, City or Town | Mansfield | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44903 | |
City Area Code | 419 | |
Local Phone Number | 755-1011 | |
Title of 12(b) Security | Common Shares, without par value | |
Trading Symbol | GRC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 26,193,998 | |
Entity Central Index Key | 0000042682 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net sales | $ 167,456 | $ 153,792 | $ 498,946 | $ 375,026 |
Cost of products sold | 119,322 | 113,229 | 353,631 | 280,727 |
Gross profit | 48,134 | 40,563 | 145,315 | 94,299 |
Selling, general and administrative expenses | 23,233 | 22,076 | 70,664 | 62,125 |
Amortization expense | 3,026 | 3,176 | 9,398 | 4,498 |
Operating income | 21,875 | 15,311 | 65,253 | 27,676 |
Interest expense | (10,475) | (7,556) | (31,147) | (9,878) |
Other income (expense), net | (416) | (5,323) | (1,385) | (7,079) |
Income (loss) before income taxes | 10,984 | 2,432 | 32,721 | 10,719 |
Provision (benefit) from income taxes | 2,006 | 211 | 6,746 | 1,951 |
Net income (loss) | $ 8,978 | $ 2,221 | $ 25,975 | $ 8,768 |
Earnings (loss) per share (in dollars per share) | $ 0.34 | $ 0.09 | $ 0.99 | $ 0.34 |
Cash dividends per share (in dollars per share) | $ 0.175 | $ 0.170 | $ 0.525 | $ 0.510 |
Average number of shares outstanding (in shares) | 26,193,656 | 26,094,865 | 26,167,494 | 26,088,329 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income (loss) | $ 8,978 | $ 2,221 | $ 25,975 | $ 8,768 |
Other comprehensive (loss) income, net of tax: | ||||
Cumulative translation adjustments | (1,166) | (2,855) | (888) | (5,719) |
Cash flow hedging activity | 1,238 | 0 | 2,332 | 0 |
Pension and postretirement medical liability adjustments | 226 | 3,981 | 592 | 6,067 |
Other comprehensive income (loss) | 298 | 1,126 | 2,036 | 348 |
Comprehensive income (loss) | $ 9,276 | $ 3,347 | $ 28,011 | $ 9,116 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Cash and cash equivalents | $ 18,189 | $ 6,783 |
Accounts receivable, net | 99,385 | 93,059 |
Inventories, net | 103,525 | 111,133 |
Prepaid and other | 12,030 | 14,551 |
Total current assets | 233,129 | 225,526 |
Property, plant and equipment, net | 135,600 | 128,640 |
Other assets | 25,099 | 11,579 |
Other intangible assets, net | 239,959 | 249,361 |
Goodwill | 257,590 | 257,724 |
Total assets | 891,377 | 872,830 |
Current liabilities: | ||
Accounts payable | 24,704 | 24,697 |
Payroll and employee related liabilities | 26,268 | 17,132 |
Commissions payable | 9,548 | 10,116 |
Deferred revenue and customer deposits | 8,767 | 6,740 |
Current portion of long-term debt | 19,688 | 17,500 |
Accrued expenses | 13,471 | 9,028 |
Total current liabilities | 102,446 | 85,213 |
Pension benefits | 8,625 | 9,352 |
Postretirement benefits | 21,996 | 22,413 |
Long-term debt, net of current portion | 390,492 | 419,327 |
Other long-term liabilities | 21,038 | 5,331 |
Total liabilities | 544,597 | 541,636 |
Equity: | ||
December 31, 2022 (after deducting treasury shares of 854,798 and 953,931, respectively), at stated capital amounts | 5,118 | 5,097 |
Additional paid-in capital | 4,833 | 3,912 |
Retained earnings | 359,267 | 346,659 |
Accumulated other comprehensive (loss) | (22,438) | (24,474) |
Total equity | 346,780 | 331,194 |
Total liabilities and equity | $ 891,377 | $ 872,830 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Common Stock, No Par Value (in dollars per share) | $ 0 | $ 0 |
Common Stock, Shares Authorized (in shares) | 35,000,000 | 35,000,000 |
Common Stock, Shares, Outstanding (in shares) | 26,193,998 | 26,094,865 |
Treasury Stock, Common, Shares (in shares) | 854,798 | 953,931 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 25,975 | $ 8,768 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,196 | 14,161 |
LIFO expense | 6,414 | 9,767 |
Pension expense | 2,426 | 8,963 |
Stock based compensation | 2,335 | 2,107 |
Contributions to pension plans | (2,250) | (2,000) |
Amortization of debt issuance fees | 2,247 | 977 |
Other | 1,282 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (6,515) | (13,514) |
Inventories, net | 656 | (20,761) |
Accounts payable | 230 | 3,437 |
Commissions payable | (531) | 319 |
Deferred revenue and customer deposits | 2,053 | (2,526) |
Income taxes | 2,186 | 206 |
Accrued expenses and other | 5,499 | (4,019) |
Benefit obligations | 8,456 | 6,623 |
Net cash provided by operating activities | 71,659 | 12,508 |
Cash flows from investing activities: | ||
Capital additions | (16,917) | (11,268) |
Payment for acquisitions | 0 | (526,301) |
Other | (608) | (327) |
Net cash used for investing activities | (16,309) | (537,242) |
Cash flows from financing activities: | ||
Cash dividends | (13,732) | (13,306) |
Treasury share repurchases | (1,028) | (918) |
Proceeds from bank borrowings | 5,000 | 445,000 |
Payments to banks for borrowings | 33,125 | 4,375 |
Debt issuance fees | 0 | (15,217) |
Other | (519) | (97) |
Net cash provided by (used for) financing activities | (43,404) | 411,087 |
Effect of exchange rate changes on cash | (540) | (1,259) |
Net increase (decrease) in cash and cash equivalents | 11,406 | (114,906) |
Cash and cash equivalents: | ||
Beginning of period | 6,783 | 125,194 |
End of period | $ 18,189 | $ 10,288 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Dec. 31, 2021 | 26,103,661 | ||||
Balances at Dec. 31, 2021 | $ 5,099 | $ 1,838 | $ 353,369 | $ (30,330) | $ 329,976 |
Net income | 7,543 | 7,543 | |||
Other comprehensive income | 387 | 387 | |||
Stock based compensation, net | 682 | 682 | |||
Treasury share repurchases (in shares) | (24,546) | ||||
Treasury share repurchases | $ (5) | (822) | (91) | (918) | |
Cash dividends - $0.175 per share | (4,436) | (4,436) | |||
Balances (in shares) at Mar. 31, 2022 | 26,079,115 | ||||
Balances at Mar. 31, 2022 | $ 5,094 | 1,698 | 356,385 | (29,943) | 333,234 |
Balances (in shares) at Dec. 31, 2021 | 26,103,661 | ||||
Balances at Dec. 31, 2021 | $ 5,099 | 1,838 | 353,369 | (30,330) | 329,976 |
Net income | 8,768 | ||||
Balances (in shares) at Sep. 30, 2022 | 26,094,865 | ||||
Balances at Sep. 30, 2022 | $ 5,097 | 3,062 | 348,799 | (29,982) | 326,976 |
Balances (in shares) at Mar. 31, 2022 | 26,079,115 | ||||
Balances at Mar. 31, 2022 | $ 5,094 | 1,698 | 356,385 | (29,943) | 333,234 |
Net income | (996) | (996) | |||
Other comprehensive income | (1,165) | (1,165) | |||
Stock based compensation, net | 730 | 730 | |||
Treasury share repurchases | 0 | ||||
Cash dividends - $0.175 per share | (4,433) | (4,433) | |||
Balances (in shares) at Jun. 30, 2022 | 26,079,115 | ||||
Balances at Jun. 30, 2022 | $ 5,094 | 2,428 | 350,956 | (31,108) | 327,370 |
Net income | 2,221 | 2,221 | |||
Other comprehensive income | 1,126 | 1,126 | |||
Stock based compensation, net (in shares) | 15,750 | ||||
Stock based compensation, net | $ 3 | 634 | 59 | 696 | |
Treasury share repurchases | 0 | ||||
Cash dividends - $0.175 per share | (4,437) | (4,437) | |||
Stock based compensation, net (in shares) | 15,750 | ||||
Balances (in shares) at Sep. 30, 2022 | 26,094,865 | ||||
Balances at Sep. 30, 2022 | $ 5,097 | 3,062 | 348,799 | (29,982) | 326,976 |
Balances (in shares) at Dec. 31, 2022 | 26,094,865 | ||||
Balances at Dec. 31, 2022 | $ 5,097 | 3,912 | 346,659 | (24,474) | 331,194 |
Net income | 6,520 | 6,520 | |||
Other comprehensive income | (1,144) | (1,144) | |||
Stock based compensation, net (in shares) | 119,488 | ||||
Stock based compensation, net | $ 26 | 1 | 438 | 465 | |
Treasury share repurchases (in shares) | (36,105) | ||||
Treasury share repurchases | $ (8) | (889) | (131) | (1,028) | |
Cash dividends - $0.175 per share | (4,567) | (4,567) | |||
Stock based compensation, net (in shares) | 119,488 | ||||
Balances (in shares) at Mar. 31, 2023 | 26,178,248 | ||||
Balances at Mar. 31, 2023 | $ 5,115 | 3,024 | 348,919 | (25,618) | 331,440 |
Balances (in shares) at Dec. 31, 2022 | 26,094,865 | ||||
Balances at Dec. 31, 2022 | $ 5,097 | 3,912 | 346,659 | (24,474) | 331,194 |
Net income | 25,975 | ||||
Balances (in shares) at Sep. 30, 2023 | 26,193,998 | ||||
Balances at Sep. 30, 2023 | $ 5,118 | 4,833 | 359,267 | (22,438) | 346,780 |
Balances (in shares) at Mar. 31, 2023 | 26,178,248 | ||||
Balances at Mar. 31, 2023 | $ 5,115 | 3,024 | 348,919 | (25,618) | 331,440 |
Net income | 10,477 | 10,477 | |||
Other comprehensive income | 2,882 | 2,882 | |||
Stock based compensation, net | 1,141 | 1,141 | |||
Treasury share repurchases | 0 | ||||
Cash dividends - $0.175 per share | (4,581) | (4,581) | |||
Balances (in shares) at Jun. 30, 2023 | 26,178,248 | ||||
Balances at Jun. 30, 2023 | $ 5,115 | 4,165 | 354,815 | (22,736) | 341,359 |
Net income | 8,978 | 8,978 | |||
Other comprehensive income | 298 | 298 | |||
Stock based compensation, net (in shares) | 15,750 | ||||
Stock based compensation, net | $ 3 | 668 | 58 | 729 | |
Treasury share repurchases | 0 | ||||
Cash dividends - $0.175 per share | (4,584) | (4,584) | |||
Stock based compensation, net (in shares) | 15,750 | ||||
Balances (in shares) at Sep. 30, 2023 | 26,193,998 | ||||
Balances at Sep. 30, 2023 | $ 5,118 | $ 4,833 | $ 359,267 | $ (22,438) | $ 346,780 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Retained Earnings [Member] | ||
Cash dividends per share (in dollars per share) | $ 0.175 | $ 0.17 |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | 0.175 | 0.17 |
Cash dividends per share (in dollars per share) | 0.175 | 0.170 |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.175 | $ 0.170 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation of Financial Statements | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | NOTE 1 - BASIS OF PRESENTATION OF FINANCIAL STATEMENTS The accompanying unaudited 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. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results. In the opinion of management of the Company, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of results that may be expected for the year ending December 31, 2023. For further information, refer to the Consolidated Financial Statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, from which related information herein has been derived. |
Note 2 - Acquisitions
Note 2 - Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 2 - ACQUISITIONS On May 31, 2022, the Company acquired the assets of Fill-Rite and Sotera (“Fill-Rite”), a division of Tuthill Corporation, for cash consideration of $528.0 million. The transaction was funded with new debt consisting of $350.0 million from a senior secured term loan, $90.0 million from a subordinated unsecured loan, $5.0 million from the new revolving Credit Facility, and $83.0 million of cash on hand. Refer to “Note 10 – Financing Arrangements” for further details related to the financing completed as part of the transaction. The Company accounted for the Fill-Rite acquisition in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”. The results of operations for Fill-Rite are included in the accompanying Consolidated Statements of Income from the acquisition date. Fill-Rite had $40.1 million in net sales and $3.6 million in operating income and $53.7 million in net sales and $3.7 million in operating income included in the Company’s consolidated financial statements for the three and nine months ended September 30, 2022, respectively. Operating income for the three months ended September 30, 2022 included $0.6 million of acquired customer backlog amortization and $3.0 million in amortization on customer relationships and developed technology. Operating income for the nine months ended September 30, 2022 included $1.4 million of inventory step-up amortization, $0.8 million of acquired customer backlog amortization, and $4.0 million in amortization on customer relationships and developed technology. Under the acquisition method of accounting, the assets and liabilities have been recorded at their respective estimated fair values as of the date of completion of the acquisition and reported into the Company’s Consolidated Balance Sheets. The following table presents the final fair value of assets acquired and liabilities assumed. Account receivable $ 21,273 Inventory 12,214 Customer backlog (amortized within one year) 2,600 Other current assets 914 Property, plant, and equipment 24,505 Customer relationships (amortized over 20 years) 200,900 Technology (amortized over 20 years) 39,800 Tradenames (indefinite-lived) 10,700 Goodwill 230,688 Total assets acquired $ 543,594 Current liabilities assumed (15,601 ) Allocated purchase price $ 527,993 For tax purposes, the Fill-Rite acquisition was treated as an asset purchase. As such, the Company received a step-up in tax basis of the net Fill-Rite assets, equal to the purchase price, including goodwill which is deductible for tax purposes. The transaction costs related to the acquisition approximated $0.1 million and $7.0 million for the three and nine months ended September 30, 2022. These costs were expensed as incurred and recorded within selling, general, and administrative expenses. The following is supplemental pro-forma net sales, operating income, net income, and earnings per share had the Fill-Rite Acquisition occurred as of January 1, 2021 (in millions): Nine Months Ended September 30, 2022 Net sales $ 440.1 Operating income $ 43.9 Net income $ 12.1 Earnings per share $ 0.46 The supplemental pro forma information presented above is being provided for information purposes only and may not necessarily reflect the future results of operations of the Company or what the results of operations would have been had the Company owned and operated Fill-Rite since January 1, 2021. |
Note 3 - Revenue
Note 3 - Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 3 REVENUE Disaggregation of Revenue The following tables disaggregate total net sales by end market and geographic location: End market Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Industrial $ 34,777 $ 32,093 $ 103,886 $ 72,452 Fire 35,986 31,785 109,211 88,237 Agriculture 21,235 21,518 65,292 37,571 Construction 23,388 19,886 66,723 42,581 Municipal 18,841 20,661 55,831 51,940 Petroleum 5,801 4,832 16,440 11,506 OEM 9,730 7,767 28,223 25,802 Repair parts 17,698 15,250 53,340 44,937 Total net sales $ 167,456 $ 153,792 $ 498,946 $ 375,026 Geographic Location Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 127,132 $ 115,478 $ 375,170 $ 272,943 Foreign countries 40,324 38,314 123,776 102,083 Total net sales $ 167,456 $ 153,792 $ 498,946 $ 375,026 International sales represented approximately 24% and 25% of total net sales for the third quarter of 2023 and 2022, respectively, and were made to customers in many different countries around the world. On September 30, 2023, the Company had $237.5 million of remaining performance obligations, also referred to as backlog. The Company expects to recognize as revenue substantially all of its remaining performance obligations within one The Company’s contract assets and liabilities as of September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Contract assets - - Contract liabilities $ 8,767 $ 6,740 Revenue recognized for the nine months ended September 30, 2023 and 2022 that was included in the contract liabilities balance at the beginning of the period was $4.5 million and $8.9 million, respectively. |
Note 4 - Inventories
Note 4 - Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 4 - INVENTORIES LIFO inventories are stated at the lower of cost or market and all other inventories are stated at the lower of cost or net realizable value. Replacement cost approximates current cost and the excess over LIFO cost was approximately $94.6 million and $88.2 million at September 30, 2023 and December 31, 2022, respectively. Allowances for excess and obsolete inventory totaled $7.2 million at September 30, 2023 and December 31, 2022, respectively. 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 management’s estimate of expected year-end inventory levels and costs, and are subject to the final year-end LIFO inventory valuation. Inventories are comprised of the following: September 30, 2023 December 31, 2022 Inventories, net: Raw materials and in-process $ 34,460 $ 40,448 Finished parts 56,259 57,224 Finished products 12,806 13,461 Total net inventories $ 103,525 $ 111,133 |
Note 5 - Property, Plant and Eq
Note 5 - Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 5 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consist of the following: September 30, 2023 December 31, 2022 Land $ 6,141 $ 6,215 Buildings 119,519 119,197 Machinery and equipment 227,226 212,581 $ 352,886 $ 337,993 Less accumulated depreciation (217,286 ) (209,353 ) Property, plant and equipment, net $ 135,600 $ 128,640 |
Note 6 - Product Warranties
Note 6 - Product Warranties | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | NOTE 6 - 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 warranties liability are: September 30, 2023 2022 Balance of beginning of year $ 1,973 $ 1,637 Provision 3,121 1,085 Acquired - 645 Claims (2,716 ) (1,238 ) Balance at end of period $ 2,378 $ 2,129 |
Note 7 - Pension and Other Post
Note 7 - Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | NOTE 7 - PENSION AND OTHER POSTRETIREMENT BENEFITS The Company sponsors a defined benefit pension plan (“GR Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The GR Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The GR Plan was closed to new participants effective January 1, 2008. Employees hired after this date, in eligible locations, participate in an enhanced 401(k) plan instead of the defined benefit pension plan. Employees hired prior to this date continue to accrue benefits. The Company established a defined benefit pension plan for certain Fill-Rite employees (“Fill-Rite Plan”) upon the acquisition as of June 1, 2022. The activity is included in the tables within this footnote. 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 Company also sponsors a non-contributory defined benefit postretirement health care plan that provides health benefits to certain domestic and Canadian retirees and eligible spouses and dependent children. The Company funds the cost of these benefits as incurred. The following tables present the components of net periodic benefit costs: Pension Benefits Postretirement Benefits Three Months Ended September 30, Three Months Ended September 30, 2023 2022 2023 2022 Service cost $ 530 $ 496 $ 209 $ 287 Interest cost 635 580 299 190 Expected return on plan assets (657 ) (665 ) - - Amortization of prior service cost - - (249 ) (282 ) Recognized actuarial loss 301 379 (9 ) 92 Settlement loss - 4,759 - - Net periodic benefit cost (a) $ 809 $ 5,549 $ 250 $ 287 Pension Benefits Postretirement Benefits Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Service cost $ 1,591 $ 1,642 $ 626 $ 860 Interest cost 1,904 1,745 897 570 Expected return on plan assets (1,971 ) (2,169 ) - - Amortization of prior service cost - - (746 ) (847 ) Recognized actuarial loss 902 1,314 (28 ) 276 Settlement loss - 6,355 - - Net periodic benefit cost (a) $ 2,426 $ 8,887 $ 749 $ 859 (a) The components of net periodic cost other than the service cost component are included in Other income (expense), net in the Consolidated Statements of Income. During the three and nine months ended September 30, 2022, the Company recorded a settlement loss relating to retirees that received lump sum distributions from the Company’s defined benefit pension plan totaling $4.8 million and $6.4 million, respectively. There were no |
Note 8 - Accumulated Other Comp
Note 8 - Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 8 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of Accumulated other comprehensive income (loss) as reported in the Consolidated Balance Sheets are: Currency Translation Adjustments Deferred Gain (Loss) on Cash Flow Hedging Pension and OPEB Adjustments Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2022 $ (10,619 ) $ (617 ) $ (13,238 ) $ (24,474 ) Reclassification adjustments - (1,096 ) 874 (222 ) Current period benefit (charge) (888 ) 4,154 (68 ) 3,198 Income tax benefit (charge) - (726 ) (214 ) (940 ) Balance at September 30, 2023 $ (11,507 ) $ 1,715 $ (12,646 ) $ (22,438 ) Currency Translation Adjustments Deferred Gain (Loss) on Cash Flow Hedging Pension and OPEB Adjustments Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2021 $ (7,851 ) $ - $ (22,479 ) $ (30,330 ) Reclassification adjustments - - 7,945 7,945 Current period benefit (charge) (5,719 ) - - (5,719 ) Income tax benefit (charge) - - (1,878 ) (1,878 ) Balance at September 30, 2022 $ (13,570 ) $ - $ (16,412 ) $ (29,982 ) |
Note 9 - Common Share Repurchas
Note 9 - Common Share Repurchases | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | NOTE 9 COMMON SHARE REPURCHASES The Company has a share repurchase program with the authorization to purchase up to $50.0 million of the Company’s common shares. As of September 30, 2023, the Company had $48.1 million available for repurchase under the share repurchase program. During the nine-month period ending September 30, 2023, the Company repurchased 36,105 shares at an average cost per share of $28.51 for a total of $1.0 million in the surrender of common shares to cover taxes in connection with the vesting of stock awards, which were not part of the share repurchase program. During the nine month period ending September 30, 2022, the Company repurchased 24,546 shares at an average cost per share of $37.39 for a total of $0.9 million. No |
Note 10 - Financing Arrangement
Note 10 - Financing Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 10 FINANCING ARRANGEMENTS Debt consisted of: Senior Secured Credit Agreement September 30, 2023 December 31, 2022 Senior term loan facility $ 328,125 $ 341,250 Credit facility 2,000 17,000 Subordinated Credit Agreement Subordinated credit facility 90,000 90,000 Total debt 420,125 448,250 Unamortized discount and debt issuance fees (9,945 ) (11,423 ) Total debt, net 410,180 436,827 Less: current portion of long-term debt (19,688 ) (17,500 ) Total long-term debt, net $ 390,492 $ 419,327 The carrying value of long term debt, including the current portion, approximates fair value as the variable interest rates approximate rates available to other market participants with comparable credit risk. Senior Secured Credit Agreement On May 31, 2022, the Company entered into a Senior Secured Credit Agreement with several lenders, which provides a term loan of $350.0 million (“Senior Term Loan Facility”) and a revolving credit facility up to $100.0 million (“Credit Facility”). The Credit Facility has a letter of credit sublimit of up to $15.0 million, as a sublimit of the Credit Facility, and a swing line subfacility of up to $20.0 million, as a sublimit of the Credit Facility. The Company borrowed $5.0 million under the Credit Facility, which, along with the Senior Term Loan Facility, and cash-on-hand and the proceeds of the Subordinated Credit Facility described below, was used to purchase the assets of Fill-Rite as described in “Note 2 – Acquisitions”. The Company’s obligations under the Senior Secured Credit Agreement are secured by a first priority lien on substantially all of its personal property, and each of Patterson Pump Company, AMT Pump Company, National Pump Company and Fill-Rite Company (collectively, the “Guarantors”) has guaranteed the obligations of the Company under the Senior Secured Credit Agreement and secured the obligations thereunder by granting a first priority lien in substantially all of such Guarantor’s personal property. The Senior Secured Credit Agreement has a maturity date of May 31, 2027, with the Senior Term Loan Facility requiring quarterly installment payments which commenced on September 30, 2022 and continuing on the last day of each consecutive December, March, June and September thereafter. At the option of the Company, borrowings under the Senior Term Loan Facility and under the Credit Facility bear interest at either a base rate or at an Adjusted Term SOFR Rate, plus the applicable margin, which ranges from 0.75% to 1.75% for base rate loans and 1.75% to 2.75% for Adjusted Term SOFR Rate loans. The applicable margin is based on the Company’s senior leverage ratio. As of September 30, 2023, the applicable interest rate under the Senior Secured Credit Agreement was Adjusted Term SOFR plus 2.6%. The Senior Secured Credit Agreement includes covenants requiring the Company to maintain certain maximum leverage ratios and a minimum fixed charge coverage ratio. On June 30, 2023, the Senior Secured Credit Agreement was amended to provide the Company with more flexibility by adjusting the minimum fixed charge coverage ratio to not less than 1.00 to 1.00 for each four consecutive fiscal quarter periods ending June 30, 2023 through and including June 30, 2024 and not less than 1.10 to 1.00 for each four consecutive fiscal quarter periods ending September 30, 2024 through and including December 31, 2024. We were in compliance with all of our debt covenants as of September 30, 2023. Subordinated Credit Agreement On May 31, 2022, the Company entered into an unsecured subordinated credit agreement (“Subordinated Credit Agreement”) which provides for a term loan of $90.0 million (the “Subordinated Credit Facility”). Each of the Guarantors has agreed to guarantee the obligations of the Company under the Subordinated Credit Agreement. The proceeds from the Subordinated Credit Facility, along with cash-on-hand and the proceeds of the Senior Term Loan Facility described above, were used to purchase the assets of Fill-Rite as described in “Note 2 – Acquisitions”. The Subordinated Credit Agreement has a maturity date of December 1, 2027. If the Subordinated Credit Facility is prepaid prior to the second anniversary, such prepayment must be accompanied by a make-whole premium. If the Subordinated Credit Facility is prepaid after the second anniversary but prior to the third anniversary, such prepayment requires a prepayment fee of 2 At the option of the Company, borrowings under the Subordinated Credit Facility bear interest at either a base rate plus 8.0%, or at an Adjusted Term SOFR Rate plus 9.1%. As of September 30, 2023 borrowings under the Subordinated Credit Facility bear interest at an Adjusted Term SOFR Rate plus 9.1%. The Subordinated Credit Agreement includes covenants subject to maximum leverage ratios. We were in compliance with all of our debt covenants as of September 30, 2023. Interest Rate Derivatives In the fourth quarter of 2022, the Company entered into interest rate swaps that hedge interest payments on its Senior Term Loan Facility. All swaps have been designated as cash flow hedges. The following table summarizes the notional amounts, related rates and remaining terms of the interest rate swap agreements as of September 30, 2023 and December 31, 2022: Notional Amount Average Fixed Rate September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Term Interest rate swaps $ 164,063 $ 170,600 4.1 % 4.1 % Extending to May 2027 The fair value of the Company’s interest rate swaps was a receivable of $2.2 million as of September 30, 2023 and a payable of $0.8 million as of December 31, 2022. The fair value was based on inputs other than quoted prices in active markets for identical assets that are observable either directly or indirectly and therefore considered level 2. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in Accumulated Other Comprehensive Loss. The interest rate swap agreements held by the Company on September 30, 2023 are expected to continue to be effective hedges. The following table summarizes the fair value of derivative instruments as recorded in the Consolidated Balance Sheets: September 30, 2023 December 31, 2022 Assets: Prepaid and Other $ 1,971 $ 1,203 Other Assets 278 - Liabilities: Other long-term liabilities - (2,012 ) Total derivatives $ 2,249 $ (809 ) The following table summarizes total gains (losses) recognized on derivatives: Derivatives in Cash Flow Hedging Relationships Location of (Loss) Gain Recognized in Income on Derivatives Amount of (Loss) Gain Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest rate swaps Interest Expense $ 508 $ - $ 1,096 $ - The effects of derivative instruments on the Company’s Consolidated Statements of Results of Operations and Comprehensive Income (Loss) for OCI are as follows: Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in AOCI on Derivatives Location of (Loss) Gain Reclassed from AOCI into Income (Effective Portion) Amount of (Loss) Gain Reclassed from AOCI into Income (Effective Portion) Three Months Ended September 30, Three Months Ended September 30, 2023 2022 2023 2022 Interest rate swaps $ 2,131 $ - Interest expense $ (508 ) $ - Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in AOCI on Derivatives Location of (Loss) Gain Reclassed from AOCI into Income (Effective Portion) Amount of (Loss) Gain Reclassed from AOCI into Income (Effective Portion) Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest rate swaps $ 4,154 $ - Interest expense $ (1,096 ) $ - |
Note 11 - Leases
Note 11 - Leases | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | NOTE 11 LEASES On June 1, 2023, the Company commenced a lease for a new manufacturing facility in Lenexa, Kansas with an initial lease term through August 31, 2043. The Company vacated its prior leased manufacturing facility in Lenexa during the quarter ended September 30, 2023, with no additional lease liability. The new lease is considered an operating lease and is subject to annual rent escalations based on the greater of a set minimum percentage or the Consumer Price Index. As a result of this lease, the Company recorded a right-of-use (ROU) asset which is included in Other Assets, and a long-term lease liability, which is included in Other Long-Term Liabilities, each of approximately $17.5 million as of September 30, 2023. The impact on the Consolidated Statements of Income for the three and nine month periods ended September 30, 2023 was not material. |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Account receivable $ 21,273 Inventory 12,214 Customer backlog (amortized within one year) 2,600 Other current assets 914 Property, plant, and equipment 24,505 Customer relationships (amortized over 20 years) 200,900 Technology (amortized over 20 years) 39,800 Tradenames (indefinite-lived) 10,700 Goodwill 230,688 Total assets acquired $ 543,594 Current liabilities assumed (15,601 ) Allocated purchase price $ 527,993 |
Business Acquisition, Pro Forma Information [Table Text Block] | Nine Months Ended September 30, 2022 Net sales $ 440.1 Operating income $ 43.9 Net income $ 12.1 Earnings per share $ 0.46 |
Note 3 - Revenue (Tables)
Note 3 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | End market Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Industrial $ 34,777 $ 32,093 $ 103,886 $ 72,452 Fire 35,986 31,785 109,211 88,237 Agriculture 21,235 21,518 65,292 37,571 Construction 23,388 19,886 66,723 42,581 Municipal 18,841 20,661 55,831 51,940 Petroleum 5,801 4,832 16,440 11,506 OEM 9,730 7,767 28,223 25,802 Repair parts 17,698 15,250 53,340 44,937 Total net sales $ 167,456 $ 153,792 $ 498,946 $ 375,026 Geographic Location Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 127,132 $ 115,478 $ 375,170 $ 272,943 Foreign countries 40,324 38,314 123,776 102,083 Total net sales $ 167,456 $ 153,792 $ 498,946 $ 375,026 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | September 30, 2023 December 31, 2022 Contract assets - - Contract liabilities $ 8,767 $ 6,740 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, 2023 December 31, 2022 Inventories, net: Raw materials and in-process $ 34,460 $ 40,448 Finished parts 56,259 57,224 Finished products 12,806 13,461 Total net inventories $ 103,525 $ 111,133 |
Note 5 - Property, Plant and _2
Note 5 - Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, 2023 December 31, 2022 Land $ 6,141 $ 6,215 Buildings 119,519 119,197 Machinery and equipment 227,226 212,581 $ 352,886 $ 337,993 Less accumulated depreciation (217,286 ) (209,353 ) Property, plant and equipment, net $ 135,600 $ 128,640 |
Note 6 - Product Warranties (Ta
Note 6 - Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | September 30, 2023 2022 Balance of beginning of year $ 1,973 $ 1,637 Provision 3,121 1,085 Acquired - 645 Claims (2,716 ) (1,238 ) Balance at end of period $ 2,378 $ 2,129 |
Note 7 - Pension and Other Po_2
Note 7 - Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Costs of Retirement Plans [Table Text Block] | Pension Benefits Postretirement Benefits Three Months Ended September 30, Three Months Ended September 30, 2023 2022 2023 2022 Service cost $ 530 $ 496 $ 209 $ 287 Interest cost 635 580 299 190 Expected return on plan assets (657 ) (665 ) - - Amortization of prior service cost - - (249 ) (282 ) Recognized actuarial loss 301 379 (9 ) 92 Settlement loss - 4,759 - - Net periodic benefit cost (a) $ 809 $ 5,549 $ 250 $ 287 Pension Benefits Postretirement Benefits Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Service cost $ 1,591 $ 1,642 $ 626 $ 860 Interest cost 1,904 1,745 897 570 Expected return on plan assets (1,971 ) (2,169 ) - - Amortization of prior service cost - - (746 ) (847 ) Recognized actuarial loss 902 1,314 (28 ) 276 Settlement loss - 6,355 - - Net periodic benefit cost (a) $ 2,426 $ 8,887 $ 749 $ 859 |
Note 8 - Accumulated Other Co_2
Note 8 - Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Currency Translation Adjustments Deferred Gain (Loss) on Cash Flow Hedging Pension and OPEB Adjustments Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2022 $ (10,619 ) $ (617 ) $ (13,238 ) $ (24,474 ) Reclassification adjustments - (1,096 ) 874 (222 ) Current period benefit (charge) (888 ) 4,154 (68 ) 3,198 Income tax benefit (charge) - (726 ) (214 ) (940 ) Balance at September 30, 2023 $ (11,507 ) $ 1,715 $ (12,646 ) $ (22,438 ) Currency Translation Adjustments Deferred Gain (Loss) on Cash Flow Hedging Pension and OPEB Adjustments Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2021 $ (7,851 ) $ - $ (22,479 ) $ (30,330 ) Reclassification adjustments - - 7,945 7,945 Current period benefit (charge) (5,719 ) - - (5,719 ) Income tax benefit (charge) - - (1,878 ) (1,878 ) Balance at September 30, 2022 $ (13,570 ) $ - $ (16,412 ) $ (29,982 ) |
Note 10 - Financing Arrangeme_2
Note 10 - Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | Debt consisted of: Senior Secured Credit Agreement September 30, 2023 December 31, 2022 Senior term loan facility $ 328,125 $ 341,250 Credit facility 2,000 17,000 Subordinated Credit Agreement Subordinated credit facility 90,000 90,000 Total debt 420,125 448,250 Unamortized discount and debt issuance fees (9,945 ) (11,423 ) Total debt, net 410,180 436,827 Less: current portion of long-term debt (19,688 ) (17,500 ) Total long-term debt, net $ 390,492 $ 419,327 |
Schedule of Interest Rate Derivatives [Table Text Block] | Notional Amount Average Fixed Rate September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Term Interest rate swaps $ 164,063 $ 170,600 4.1 % 4.1 % Extending to May 2027 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | September 30, 2023 December 31, 2022 Assets: Prepaid and Other $ 1,971 $ 1,203 Other Assets 278 - Liabilities: Other long-term liabilities - (2,012 ) Total derivatives $ 2,249 $ (809 ) |
Derivative Instruments, Gain (Loss) [Table Text Block] | Derivatives in Cash Flow Hedging Relationships Location of (Loss) Gain Recognized in Income on Derivatives Amount of (Loss) Gain Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest rate swaps Interest Expense $ 508 $ - $ 1,096 $ - |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in AOCI on Derivatives Location of (Loss) Gain Reclassed from AOCI into Income (Effective Portion) Amount of (Loss) Gain Reclassed from AOCI into Income (Effective Portion) Three Months Ended September 30, Three Months Ended September 30, 2023 2022 2023 2022 Interest rate swaps $ 2,131 $ - Interest expense $ (508 ) $ - Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in AOCI on Derivatives Location of (Loss) Gain Reclassed from AOCI into Income (Effective Portion) Amount of (Loss) Gain Reclassed from AOCI into Income (Effective Portion) Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Interest rate swaps $ 4,154 $ - Interest expense $ (1,096 ) $ - |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Payments to Acquire Businesses, Gross | $ 0 | $ 526,301 | ||
Tuthill Corporation [Member] | ||||
Business Combination, Consideration Transferred | $ 528,000 | |||
Payments to Acquire Businesses, Gross | 83,000 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 40,100 | 53,700 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 3,600 | 3,700 | ||
Business Combination, Acquisition Related Costs | 100 | 7,000 | ||
Tuthill Corporation [Member] | Customer Backlog [Member] | ||||
Amortization of Intangible Assets | 600 | 800 | ||
Tuthill Corporation [Member] | Customer Relationships [Member] | ||||
Amortization of Intangible Assets | $ 3,000 | 4,000 | ||
Tuthill Corporation [Member] | Inventory Step Up [Member] | ||||
Amortization of Intangible Assets | $ 1,400 | |||
Tuthill Corporation [Member] | Senior Term Loan Facility [Member] | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | 350,000 | |||
Tuthill Corporation [Member] | Subordinated Credit Facility [Member] | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | 90,000 | |||
Tuthill Corporation [Member] | Credit Facility [Member] | ||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 5,000 |
Note 2 - Acquisitions - Prelimi
Note 2 - Acquisitions - Preliminary Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill | $ 257,590 | $ 257,724 |
Tuthill Corporation [Member] | ||
Accounts receivable | 21,273 | |
Inventory | 12,214 | |
Other current assets | 914 | |
Property, plant, and equipment | 24,505 | |
Goodwill | 230,688 | |
Total assets acquired | 543,594 | |
Current liabilities assumed | (15,601) | |
Allocated purchase price | 527,993 | |
Tuthill Corporation [Member] | Customer Backlog [Member] | ||
Customer backlog (amortized within one year) | 2,600 | |
Tuthill Corporation [Member] | Customer Relationships [Member] | ||
Customer backlog (amortized within one year) | 200,900 | |
Tuthill Corporation [Member] | Technology-Based Intangible Assets [Member] | ||
Customer backlog (amortized within one year) | 39,800 | |
Tuthill Corporation [Member] | Trade Names [Member] | ||
Customer backlog (amortized within one year) | $ 10,700 |
Note 2 - Acquisitions - Pro For
Note 2 - Acquisitions - Pro Forma Information (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares | |
Net sales | $ 440.1 |
Operating income | 43.9 |
Net income | $ 12.1 |
Earnings per share (in dollars per share) | $ / shares | $ 0.46 |
Note 3 - Revenue 1 (Details Tex
Note 3 - Revenue 1 (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Contract with Customer, Liability, Revenue Recognized | $ 4.5 | $ 8.9 | ||
Non-US [Member] | ||||
Percentage Revenue By Location | 24% | 25% |
Note 3 - Revenue 2 (Details Tex
Note 3 - Revenue 2 (Details Textual) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 $ in Millions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 237.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year |
Note 3 - Revenue - Disaggregati
Note 3 - Revenue - Disaggregation of Revenue by Major Categories and Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net sales | $ 167,456 | $ 153,792 | $ 498,946 | $ 375,026 |
UNITED STATES | ||||
Net sales | 127,132 | 115,478 | 375,170 | 272,943 |
Non-US [Member] | ||||
Net sales | 40,324 | 38,314 | 123,776 | 102,083 |
Industrial [Member] | ||||
Net sales | 34,777 | 32,093 | 103,886 | 72,452 |
Fire Market [Member] | ||||
Net sales | 35,986 | 31,785 | 109,211 | 88,237 |
Agriculture [Member] | ||||
Net sales | 21,235 | 21,518 | 65,292 | 37,571 |
Construction [Member] | ||||
Net sales | 23,388 | 19,886 | 66,723 | 42,581 |
Municipal [Member] | ||||
Net sales | 18,841 | 20,661 | 55,831 | 51,940 |
Petroleum [Member] | ||||
Net sales | 5,801 | 4,832 | 16,440 | 11,506 |
OEM [Member] | ||||
Net sales | 9,730 | 7,767 | 28,223 | 25,802 |
Repair Parts [Member] | ||||
Net sales | 17,698 | 15,250 | 53,340 | 44,937 |
Total Excluding Fill-Rrite [Member] | ||||
Net sales | $ 167,456 | $ 153,792 | $ 498,946 | $ 375,026 |
Note 3 - Revenue - Contract Ass
Note 3 - Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Contract assets | $ 0 | $ 0 |
Contract liabilities | $ 8,767 | $ 6,740 |
Note 4 - Inventories (Details T
Note 4 - Inventories (Details Textual) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory, LIFO Reserve | $ 94.6 | $ 88.2 |
Inventory Valuation Reserves | $ 7.2 | $ 7.2 |
Note 4 - Inventories - Inventor
Note 4 - Inventories - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Raw materials and in-process | $ 34,460 | $ 40,448 |
Finished parts | 56,259 | 57,224 |
Finished products | 12,806 | 13,461 |
Total net inventories | $ 103,525 | $ 111,133 |
Note 5 - Property, Plant and _3
Note 5 - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, plant and equipment, gross | $ 352,886 | $ 337,993 |
Less accumulated depreciation | (217,286) | (209,353) |
Property, plant and equipment, net | 135,600 | 128,640 |
Land [Member] | ||
Property, plant and equipment, gross | 6,141 | 6,215 |
Building [Member] | ||
Property, plant and equipment, gross | 119,519 | 119,197 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | $ 227,226 | $ 212,581 |
Note 6 - Product Warranties - P
Note 6 - Product Warranties - Product Warranties (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Balance at beginning of year | $ 1,973 | $ 1,637 |
Provision | 3,121 | 1,085 |
Acquired | 0 | 645 |
Claims | (2,716) | (1,238) |
Balance at end of period | $ 2,378 | $ 2,129 |
Note 7 - Pension and Other Po_3
Note 7 - Pension and Other Postretirement Benefits (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 4,800 | $ 0 | $ 6,400 |
Note 7 - Pension and Other Po_4
Note 7 - Pension and Other Postretirement Benefits - Components of net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Settlement loss | $ 0 | $ (4,800) | $ 0 | $ (6,400) | ||
Pension Plan [Member] | ||||||
Service cost | 530 | 496 | 1,591 | 1,642 | ||
Interest cost | 635 | 580 | 1,904 | 1,745 | ||
Expected return on plan assets | (657) | (665) | (1,971) | (2,169) | ||
Amortization of prior service cost | 0 | 0 | 0 | 0 | ||
Recognized actuarial loss | 301 | 379 | 902 | 1,314 | ||
Settlement loss | 0 | 4,759 | 0 | 6,355 | ||
Net periodic benefit cost (a) | 809 | 5,549 | 2,426 | [1] | 8,887 | [1] |
Postemployment Retirement Benefits [Member] | ||||||
Service cost | 209 | 287 | 626 | 860 | ||
Interest cost | 299 | 190 | 897 | 570 | ||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||
Amortization of prior service cost | (249) | (282) | (746) | (847) | ||
Recognized actuarial loss | (9) | 92 | (28) | 276 | ||
Settlement loss | 0 | 0 | 0 | 0 | ||
Net periodic benefit cost (a) | $ 250 | $ 287 | $ 749 | [1] | $ 859 | [1] |
[1]The components of net periodic cost other than the service cost component are included in Other income (expense), net in the Consolidated Statements of Income. |
Note 8 - Accumulated Other Co_3
Note 8 - Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Loss Reported in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Balances | $ 331,194 | $ 329,976 |
Balances | 346,780 | 326,976 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Balances | (10,619) | (7,851) |
Reclassification adjustments | 0 | 0 |
Current period benefit (charge) | (888) | (5,719) |
Income tax benefit (charge) | 0 | 0 |
Balances | (11,507) | (13,570) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Balances | (617) | 0 |
Reclassification adjustments | (1,096) | 0 |
Current period benefit (charge) | 4,154 | 0 |
Income tax benefit (charge) | (726) | 0 |
Balances | 1,715 | 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Balances | (13,238) | (22,479) |
Reclassification adjustments | 874 | 7,945 |
Current period benefit (charge) | (68) | 0 |
Income tax benefit (charge) | (214) | (1,878) |
Balances | (12,646) | (16,412) |
AOCI Attributable to Parent [Member] | ||
Balances | (24,474) | (30,330) |
Reclassification adjustments | (222) | 7,945 |
Current period benefit (charge) | 3,198 | (5,719) |
Income tax benefit (charge) | (940) | (1,878) |
Balances | $ (22,438) | $ (29,982) |
Note 9 - Common Share Repurch_2
Note 9 - Common Share Repurchases (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock Repurchased and Retired During Period, Value | $ 0 | $ 0 | $ 1,028 | $ 0 | $ 0 | $ 918 | ||
The Share Repurchase Program [Member] | ||||||||
Share Repurchase Program, Amount Authorized | 50,000 | $ 50,000 | ||||||
Share Repurchase Program, Available for Repurchase, Amount | $ 48,100 | $ 48,100 | ||||||
Stock Repurchased and Retired During Period, Shares (in shares) | 0 | 0 | 36,105 | 24,546 | ||||
Shares Acquired, Average Cost Per Share | $ 28.51 | $ 37.39 | ||||||
Stock Repurchased and Retired During Period, Value | $ 1,000 | $ 900 |
Note 10 - Financing Arrangeme_3
Note 10 - Financing Arrangements (Details Textual) $ in Millions | 9 Months Ended | |||
Jun. 30, 2023 | May 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Interest Rate Swap [Member] | ||||
Derivative Asset | $ 2.2 | |||
Derivative Liability | $ 0.8 | |||
Credit Facility [Member] | ||||
Long-Term Line of Credit, Total | $ 5 | |||
Revolving Credit Facility [Member] | Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | |||
Letter of Credit [Member] | Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 15 | |||
Swing Line Subfacility [Member] | Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 20 | |||
Senior Term Loan Facility [Member] | ||||
Debt Instrument, Face Amount | $ 350 | |||
Senior Term Loan Facility [Member] | Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
Senior Term Loan Facility [Member] | Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Senior Term Loan Facility [Member] | Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Senior Term Loan Facility [Member] | Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||
Subordinated Credit Facility [Member] | ||||
Debt Instrument, Face Amount | $ 90 | |||
Subordinated Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument, Prepayment Fee, Percent | 1% | |||
Subordinated Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument, Prepayment Fee, Percent | 2% | |||
Subordinated Credit Facility [Member] | Base Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 8% | |||
Subordinated Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 9.10% | 2.60% | ||
Senior Term Loan Facility for Periods Ending June 30, 2023 Through Including June 30, 2024 [Member] | ||||
Debt Instrument, Covenant, Minimum Fixed Charge Coverage Ratio | 1 | |||
Senior Term Loan Facility for Periods Ending September 30, 2024 Through Including December 31, 2024 [Member] | ||||
Debt Instrument, Covenant, Minimum Fixed Charge Coverage Ratio | 1.10 |
Note 10 - Financing Arrangeme_4
Note 10 - Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Long-term debt, gross | $ 420,125 | $ 448,250 |
Unamortized discount and debt issuance fees | (9,945) | (11,423) |
Total debt, net | 410,180 | 436,827 |
Less: current portion of long-term debt | (19,688) | (17,500) |
Long-term debt, net of current portion | 390,492 | 419,327 |
Senior Term Loan Facility [Member] | ||
Long-term debt, gross | 328,125 | 341,250 |
Credit Facility [Member] | ||
Long-term debt, gross | 2,000 | 17,000 |
Subordinated Credit Facility [Member] | ||
Long-term debt, gross | $ 90,000 | $ 90,000 |
Note 10 - Financing Arrangeme_5
Note 10 - Financing Arrangements - Summary of Interest Rate Swap Agreements (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Notional amount | $ 164,063 | $ 170,600 |
Average fixed rate | 4.10% | 4.10% |
Note 10 - Financing Arrangeme_6
Note 10 - Financing Arrangements - Summary of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Total derivatives | $ 2,249 | $ (809) |
Prepaid Expenses and Other Current Assets [Member] | ||
Prepaid and Other | 1,971 | 1,203 |
Other Assets [Member] | ||
Prepaid and Other | 278 | 0 |
Other Noncurrent Liabilities [Member] | ||
Other long-term liabilities | $ 0 | $ (2,012) |
Note 10 - Financing Arrangeme_7
Note 10 - Financing Arrangements - Summary of Gain (Loss) Recognized on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | ||||
Interest rate swaps | $ 508 | $ 0 | $ 1,096 | $ 0 |
Note 10 - Financing Arrangeme_8
Note 10 - Financing Arrangements - Effects of Derivative Instruments on Comprehensive Income (Loss) (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest rate swaps | $ 2,131 | $ 0 | $ 4,154 | $ 0 |
Interest rate swaps | $ (508) | $ 0 | $ (1,096) | $ 0 |
Note 11 - Leases (Details Textu
Note 11 - Leases (Details Textual) $ in Millions | Sep. 30, 2023 USD ($) |
Other Assets [Member] | |
Operating Lease, Right-of-Use Asset | $ 17.5 |
Other Noncurrent Liabilities [Member] | |
Operating Lease, Liability, Noncurrent | $ 17.5 |