Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-21220 | |
Entity Registrant Name | ALAMO GROUP INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1621248 | |
Entity Address, Address Line One | 1627 East Walnut | |
Entity Address, City or Town | Seguin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78155 | |
City Area Code | 830 | |
Local Phone Number | 379-1480 | |
Title of 12(b) Security | Common Stock, par value$.10 per share | |
Trading Symbol | ALG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,826,104 | |
Entity Central Index Key | 0000897077 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 60,279 | $ 34,043 |
Accounts receivable, net | 243,296 | 228,098 |
Inventories, net | 206,516 | 176,630 |
Prepaid expenses and other current assets | 7,771 | 5,327 |
Income tax receivable | 6,615 | 8,745 |
Total current assets | 524,477 | 452,843 |
Rental equipment, net | 56,177 | 43,978 |
Property, plant and equipment | 243,777 | 219,135 |
Less: Accumulated depreciation | (136,838) | (131,905) |
Total property, plant and equipment, net | 106,939 | 87,230 |
Goodwill | 93,468 | 83,243 |
Intangible assets, net | 59,205 | 48,857 |
Deferred income taxes | 1,060 | 1,783 |
Other non-current assets | 15,067 | 3,699 |
Total assets | 856,393 | 721,633 |
Current liabilities: | ||
Trade accounts payable | 69,009 | 54,083 |
Income taxes payable | 2,516 | 2,865 |
Accrued liabilities | 48,525 | 43,785 |
Current maturities of long-term debt and finance lease obligations | 113 | 119 |
Total current liabilities | 120,163 | 100,852 |
Long-term debt and finance lease obligations, net of current maturities | 150,192 | 85,179 |
Long-term tax liability | 6,710 | 6,120 |
Deferred pension liability | 1,606 | 1,944 |
Other long-term liabilities | 14,190 | 8,436 |
Deferred income taxes | 12,480 | 11,731 |
Stockholders’ equity: | ||
Common stock, $0.10 par value, 20,000,000 shares authorized; 11,747,829 and 11,662,688 outstanding at September 30, 2019 and December 31, 2018, respectively | 1,175 | 1,166 |
Additional paid-in-capital | 112,629 | 108,422 |
Treasury stock, at cost; 82,600 and 42,600 shares at September 30, 2019 and December 31, 2018, respectively | (4,566) | (426) |
Retained earnings | 492,161 | 443,040 |
Accumulated other comprehensive loss | (50,347) | (44,831) |
Total stockholders’ equity | 551,052 | 507,371 |
Total liabilities and stockholders’ equity | $ 856,393 | $ 721,633 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock outstanding (in shares) | 11,747,829 | 11,662,688 |
Treasury stock (in shares) | 82,600 | 42,600 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales: | ||||
Total net sales | $ 271,829 | $ 257,572 | $ 818,949 | $ 752,784 |
Cost of sales | 203,119 | 190,800 | 613,798 | 559,301 |
Gross profit | 68,710 | 66,772 | 205,151 | 193,483 |
Selling, general and administrative expenses | 44,255 | 38,523 | 128,741 | 117,087 |
Income from operations | 24,455 | 28,249 | 76,410 | 76,396 |
Interest expense | (1,837) | (1,399) | (5,222) | (4,233) |
Interest income | 359 | 100 | 862 | 309 |
Other income (expense), net | 242 | (265) | (442) | (491) |
Income before income taxes | 23,219 | 26,685 | 71,608 | 71,981 |
Provision for income taxes | 5,801 | 3,142 | 18,270 | 15,084 |
Net Income | $ 17,418 | $ 23,543 | $ 53,338 | $ 56,897 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 1.48 | $ 2.01 | $ 4.55 | $ 4.88 |
Diluted (in dollars per share) | $ 1.47 | $ 2 | $ 4.52 | $ 4.84 |
Average common shares: | ||||
Basic (in shares) | 11,748 | 11,689 | 11,724 | 11,649 |
Diluted (in shares) | 11,813 | 11,777 | 11,796 | 11,758 |
Dividends declared (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.36 | $ 0.33 |
Industrial | ||||
Net sales: | ||||
Total net sales | $ 158,499 | $ 156,721 | $ 484,924 | $ 438,919 |
Income from operations | 14,350 | 18,351 | 50,994 | 46,316 |
Agricultural | ||||
Net sales: | ||||
Total net sales | 59,797 | 61,464 | 168,129 | 179,182 |
Income from operations | 6,140 | 6,608 | 12,546 | 18,047 |
European | ||||
Net sales: | ||||
Total net sales | 53,533 | 39,387 | 165,896 | 134,683 |
Income from operations | $ 3,965 | $ 3,290 | $ 12,870 | $ 12,033 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 17,418 | $ 23,543 | $ 53,338 | $ 56,897 |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (9,791) | (924) | (7,877) | (9,657) |
Net gain on pension and other post-retirement benefits | 215 | 211 | 645 | 634 |
Unrealized gain during the period related to derivatives | 1,864 | 0 | 1,852 | 0 |
Other comprehensive loss before income tax expense | (7,712) | (713) | (5,380) | (9,023) |
Income tax expense related to items of other comprehensive income | (46) | (44) | (136) | (133) |
Other comprehensive loss | (7,758) | (757) | (5,516) | (9,156) |
Comprehensive income | $ 9,660 | $ 22,786 | $ 47,822 | $ 47,741 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance ( in shares) at Dec. 31, 2017 | 11,534 | |||||
Beginning balance at Dec. 31, 2017 | $ 449,108 | $ 1,158 | $ 103,864 | $ (426) | $ 374,678 | $ (30,166) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 14,583 | 14,583 | ||||
Translation adjustment | 3,117 | 3,117 | ||||
Net actuarial gain arising during period, net of taxes | 126 | 126 | ||||
Stock-based compensation | 458 | 458 | ||||
Exercise of stock options (in shares) | 9 | |||||
Exercise of stock options | 266 | 266 | ||||
Dividends paid | (1,276) | (1,276) | ||||
Ending balance (in shares) at Mar. 31, 2018 | 11,543 | |||||
Ending balance at Mar. 31, 2018 | 466,382 | $ 1,158 | 104,588 | (426) | 387,985 | (26,923) |
Beginning balance ( in shares) at Dec. 31, 2017 | 11,534 | |||||
Beginning balance at Dec. 31, 2017 | 449,108 | $ 1,158 | 103,864 | (426) | 374,678 | (30,166) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 56,897 | |||||
Ending balance (in shares) at Sep. 30, 2018 | 11,618 | |||||
Ending balance at Sep. 30, 2018 | 496,892 | $ 1,166 | 107,737 | (426) | 427,737 | (39,322) |
Beginning balance ( in shares) at Mar. 31, 2018 | 11,543 | |||||
Beginning balance at Mar. 31, 2018 | 466,382 | $ 1,158 | 104,588 | (426) | 387,985 | (26,923) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 18,771 | 18,771 | ||||
Translation adjustment | (11,850) | (11,850) | ||||
Net actuarial gain arising during period, net of taxes | 208 | 208 | ||||
Stock-based compensation | 730 | 730 | ||||
Common stock repurchase | (437) | (437) | ||||
Exercise of stock options (in shares) | 67 | |||||
Exercise of stock options | 1,920 | $ 7 | 1,913 | |||
Dividends paid | (1,277) | (1,277) | ||||
Ending balance (in shares) at Jun. 30, 2018 | 11,610 | |||||
Ending balance at Jun. 30, 2018 | 474,447 | $ 1,165 | 106,794 | (426) | 405,479 | (38,565) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 23,543 | 23,543 | ||||
Translation adjustment | (924) | (924) | ||||
Net actuarial gain arising during period, net of taxes | 167 | 167 | ||||
Stock-based compensation | 622 | 622 | ||||
Common stock repurchase | 1 | 1 | ||||
Exercise of stock options (in shares) | 8 | |||||
Exercise of stock options | 321 | $ 1 | 320 | |||
Dividends paid | (1,285) | (1,285) | ||||
Ending balance (in shares) at Sep. 30, 2018 | 11,618 | |||||
Ending balance at Sep. 30, 2018 | 496,892 | $ 1,166 | 107,737 | (426) | 427,737 | (39,322) |
Beginning balance ( in shares) at Dec. 31, 2018 | 11,620 | |||||
Beginning balance at Dec. 31, 2018 | 507,371 | $ 1,166 | 108,422 | (426) | 443,040 | (44,831) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,253 | 15,253 | ||||
Translation adjustment | 720 | 720 | ||||
Net actuarial gain arising during period, net of taxes | 170 | 170 | ||||
Stock-based compensation | 627 | 627 | ||||
Common stock repurchase (in shares) | (15) | |||||
Common stock repurchase | (1,490) | (1,490) | ||||
Exercise of stock options (in shares) | 11 | |||||
Exercise of stock options | 237 | $ 1 | 236 | |||
Dividends paid | (1,404) | (1,404) | ||||
Ending balance (in shares) at Mar. 31, 2019 | 11,616 | |||||
Ending balance at Mar. 31, 2019 | 521,484 | $ 1,167 | 109,285 | (1,916) | 456,889 | (43,941) |
Beginning balance ( in shares) at Dec. 31, 2018 | 11,620 | |||||
Beginning balance at Dec. 31, 2018 | 507,371 | $ 1,166 | 108,422 | (426) | 443,040 | (44,831) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 53,338 | 53,338 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 11,665 | |||||
Ending balance at Sep. 30, 2019 | 551,052 | $ 1,175 | 112,629 | (4,566) | 492,161 | (50,347) |
Beginning balance ( in shares) at Mar. 31, 2019 | 11,616 | |||||
Beginning balance at Mar. 31, 2019 | 521,484 | $ 1,167 | 109,285 | (1,916) | 456,889 | (43,941) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 20,667 | 20,667 | ||||
Translation adjustment | 1,194 | 1,194 | ||||
Unrealized derivative gain (loss), net of taxes | (12) | (12) | ||||
Net actuarial gain arising during period, net of taxes | 170 | 170 | ||||
Stock-based compensation | 948 | 948 | ||||
Common stock repurchase (in shares) | (15) | |||||
Common stock repurchase | (2,055) | (590) | (1,465) | |||
Exercise of stock options (in shares) | 64 | |||||
Exercise of stock options | 1,840 | $ 7 | 1,833 | |||
Dividends paid | (1,404) | (1,404) | ||||
Ending balance (in shares) at Jun. 30, 2019 | 11,665 | |||||
Ending balance at Jun. 30, 2019 | 542,832 | $ 1,174 | 111,476 | (3,381) | 476,152 | (42,589) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 17,418 | 17,418 | ||||
Translation adjustment | (9,791) | (9,791) | ||||
Unrealized derivative gain (loss), net of taxes | 1,864 | 1,864 | ||||
Net actuarial gain arising during period, net of taxes | 169 | 169 | ||||
Stock-based compensation | 766 | 766 | ||||
Common stock repurchase (in shares) | (10) | |||||
Common stock repurchase | (1,185) | (1,185) | ||||
Exercise of stock options (in shares) | 10 | |||||
Exercise of stock options | 388 | $ 1 | 387 | |||
Dividends paid | (1,409) | (1,409) | ||||
Ending balance (in shares) at Sep. 30, 2019 | 11,665 | |||||
Ending balance at Sep. 30, 2019 | $ 551,052 | $ 1,175 | $ 112,629 | $ (4,566) | $ 492,161 | $ (50,347) |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividends paid (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.36 | $ 0.33 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||
Net income | $ 53,338 | $ 56,897 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Provision for doubtful accounts | 280 | (132) |
Depreciation - Property, plant and equipment | 10,583 | 9,388 |
Depreciation - Rental equipment | 6,770 | 4,790 |
Amortization of intangibles | 3,081 | 2,630 |
Amortization of debt issuance costs | 166 | 166 |
Stock-based compensation expense | 2,341 | 1,810 |
Provision for deferred income tax (benefit) expense | (2,549) | 1,160 |
Gain on sale of property, plant and equipment | (732) | (298) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (11,263) | (24,916) |
Inventories | (8,413) | (31,521) |
Rental equipment | (18,970) | (16,758) |
Prepaid expenses and other assets | (5,377) | (1,887) |
Trade accounts payable and accrued liabilities | 9,481 | 15,797 |
Income taxes payable | 1,738 | (8,887) |
Long-term tax payable | 590 | (4,969) |
Other assets and long-term liabilities | 3,146 | 317 |
Net cash provided by operating activities | 44,210 | 3,587 |
Investing Activities | ||
Acquisitions, net of cash acquired | (58,531) | 0 |
Purchase of property, plant and equipment | (19,488) | (18,781) |
Proceeds from sale of property, plant and equipment | 1,987 | 1,037 |
Net cash used in investing activities | (76,032) | (17,744) |
Financing Activities | ||
Borrowings on bank revolving credit facility | 141,000 | 126,000 |
Repayments on bank revolving credit facility | (76,000) | (85,000) |
Principal payments on finance leases | (97) | (82) |
Proceeds from issuance of long-term debt and finance leases | 2 | 0 |
Dividends paid | (4,217) | (3,838) |
Proceeds from exercise of stock options | 2,465 | 2,507 |
Purchase of common stock for treasury | (4,140) | 0 |
Cost of common stock repurchased | (590) | (436) |
Net cash provided by financing activities | 58,423 | 39,151 |
Effect of exchange rate changes on cash and cash equivalents | (365) | (1,487) |
Net change in cash and cash equivalents | 26,236 | 23,507 |
Cash and cash equivalents at beginning of the year | 34,043 | 25,373 |
Cash and cash equivalents at end of the period | 60,279 | 48,880 |
Cash paid during the period for: | ||
Interest | 5,327 | 3,889 |
Income taxes | $ 18,431 | $ 26,568 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation General The accompanying unaudited interim condensed consolidated financial statements of Alamo Group Inc. and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 (the "2018 10-K"). Accounting Pronouncements Adopted on January 1, 2019 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)". This update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The updated guidance leaves the accounting for leases by lessors largely unchanged from existing GAAP. The guidance became effective for us on January 1, 2019. As a lessee, this standard primarily impacted our accounting for long-term real estate and equipment leases, for which we recognized right-of-use assets of $7,747,000 and a corresponding lease liability of $7,868,000 on our consolidated balance sheet. We adopted these provisions on January 1, 2019 using the optional transition method that permits us to apply the new disclosure requirements in 2019 and continue to present comparative period information as required under FASB ASC Topic 840, "Leases". We did not have a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. We elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to not account for lease and non-lease components separately for most of our asset classes and to exclude leases with an initial term of 12 months or less from the right-of-use assets and liabilities. Adoption of the standards had no impact on results of operations or liquidity. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", to allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). Upon adoption of the ASU, entities will be required to disclose a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income. The standard is required to be adopted for periods beginning after December 15, 2018, with early adoption available for any set of financial statements that have yet to be issued or made available for issuance including retrospectively for any period in which the effect of the change is the U.S. corporate income tax rate in the TCJA is recognized. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”, which modifies the disclosures requirements on fair value measurements. Among other things, the amendments add disclosures for changes in unrealized gains and losses on Level 3 fair value measurements and requires additional disclosures on unobservable inputs associated with Level 3 assets. The guidance will become effective for us on January 1, 2020. The impacts that adoption of the ASU is expected to have on our financial disclosures is being evaluated. In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-14, “Compensation, Defined Benefit Plans", which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The update removes certain disclosures that are no longer considered cost beneficial and adds disclosure requirements identified as relevant. The guidance will become effective for us on January 1, 2021 with early adoption permitted for any financial statements that have not been issued. The impacts that adoption of the ASU is expected to have on our financial disclosures is being evaluated. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses,” to improve information on credit losses for financial instruments. The ASU replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted beginning in fiscal years beginning after December 15, 2018. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Leases The following policy resulted from our adoption of the provisions of ASC Topic 842, “Leases", effective January 1, 2019, as described above in “Accounting Pronouncements Adopted on January 1, 2019". If we determine that an arrangement is or contains a lease, we recognize a right-of-use (ROU) asset and lease liability at the commencement date of the lease. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have elected to not account for the lease and non-lease components separately for most of our asset classes with the exception of real-estate. We have also elected to exclude all lease agreements with an initial term of 12 months or less from the lease recognition requirements. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On March 4, 2019, the Company acquired 100 percent of the issued and outstanding equity interests of Dutch Power Company B.V. ("Dutch Power"). Dutch Power designs, manufactures and sells a variety of landscape and vegetation management machines primarily in Europe. The primary reason for the Dutch Power acquisition was to enhance the Company's platform for growth by increasing both the Company's product portfolio and capabilities in the European market. The acquisition price was approximately $53 million. The total purchase price has been allocated on a preliminary basis to assets acquired and liabilities assumed, including deferred taxes. During the third quarter of 2019, additional information was obtained and an adjustment was made to goodwill for approximately $2.0 million. Certain estimated values are not yet finalized and are subject to change. The Company will finalize the amounts once the necessary information is obtained and the analysis is complete. In the period between the date of acquisition and September 30, 2019, Dutch Power generated approximately $27.7 million of net sales and $0.8 million of net income. The Company has included the operating results of Dutch Power in its consolidated financial statements since the date of acquisition. The following table reflects the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 87 Accounts receivable 6,278 Inventory 17,731 Prepaid and other assets 1,901 Property, plant and equipment 13,439 Intangible assets 14,095 Other liabilities assumed (12,606) Net assets assumed $ 40,925 Goodwill 11,686 Acquisition Price $ 52,611 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable is shown net of sales discounts and the allowance for doubtful accounts. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories valued at LIFO cost represented 56% and 60% of total inventory at September 30, 2019 and December 31, 2018, respectively. The excess of current cost over LIFO valued inventories was approximately $10,646,000 at September 30, 2019 and December 31, 2018. An actual valuation of inventory under the LIFO method is made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO must be based, to some extent, on management's estimates at each quarter end. Net inventories consist of the following: (in thousands) September 30, 2019 December 31, 2018 Finished goods $ 173,994 $ 149,298 Work in process 18,415 12,732 Raw materials 14,107 14,600 Inventories, net $ 206,516 $ 176,630 |
Rental Equipment
Rental Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Rental Equipment | Rental EquipmentRental equipment is shown net of accumulated depreciation of $13,359,000 and $11,145,000 at September 30, 2019 and December 31, 2018, respectively. The Company recognized depreciation expense of $2,447,000 and $1,808,000 for the three months ended September 30, 2019 and September 30, 2018, respectively and $6,770,000 and $4,790,000 for the nine months ended September 30, 2019 and September 30, 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying values of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximate their fair value because of the short-term nature of these items. The carrying value of our debt approximates the fair value as of September 30, 2019 and December 31, 2018, as the floating rates on our outstanding balances approximate current market rates. This conclusion was made based on Level 2 inputs. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following is the summary of changes to the Company's Goodwill for the nine months ended September 30, 2019: Industrial Agricultural European Consolidated (in thousands) Balance at December 31, 2018 $ 61,107 $ 6,230 $ 15,906 $ 83,243 Translation adjustment 234 (397) (1,298) (1,461) Goodwill acquired — — 11,686 11,686 Balance at September 30, 2019 $ 61,341 $ 5,833 $ 26,294 $ 93,468 The following is a summary of the Company's definite and indefinite-lived intangible assets net of the accumulated amortization: (in thousands) Estimated Useful Lives September 30, 2019 December 31, 2018 Definite: Trade names and trademarks 25 years $ 31,866 $ 23,938 Customer and dealer relationships 10-14 years 34,150 32,260 Patents and drawings 3-12 years 5,689 2,061 Total at cost 71,705 58,259 Less accumulated amortization (18,000) (14,902) Total net 53,705 43,357 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 59,205 $ 48,857 The Company recognized amortization expense of $1,112,000 and $874,000 for the three months ending September 30, 2019 and 2018, respectively, and $3,081,000 and $2,630,000 for the nine months ended September 30, 2019 and 2018, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The components of long-term debt are as follows: September 30, 2019 December 31, 2018 Current Maturities: Finance lease obligations $ 113 $ 119 Long-term debt: Bank revolving credit facility 150,000 85,000 Finance lease obligations 192 179 Total Long-term debt 150,192 85,179 Total debt $ 150,305 $ 85,298 |
Common Stock and Dividends
Common Stock and Dividends | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Common Stock and Dividends | Common Stock and Dividends Dividends declared and paid on a per share basis were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Dividends declared $ 0.12 $ 0.11 $ 0.36 $ 0.33 Dividends paid $ 0.12 $ 0.11 $ 0.36 $ 0.33 On October 1, 2019, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.12 per share, which was paid on October 28, 2019, to shareholders of record at the close of business on October 15, 2019. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the reconciliation from basic to diluted average common shares and the calculations of net income per common share. Net income for basic and diluted calculations do not differ. Three Months Ended Nine Months Ended (In thousands, except per share) 2019 2018 2019 2018 Net Income $ 17,418 $ 23,543 $ 53,338 $ 56,897 Average Common Shares: Basic (weighted-average outstanding shares) 11,748 11,689 11,724 11,649 Dilutive potential common shares from stock options 65 88 72 109 Diluted (weighted-average outstanding shares) 11,813 11,777 11,796 11,758 Basic earnings per share $ 1.48 $ 2.01 $ 4.55 $ 4.88 Diluted earnings per share $ 1.47 $ 2.00 $ 4.52 $ 4.84 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Tax Reform On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act ("TCJA") that instituted fundamental changes to the U.S. Internal Revenue Code of 1986, as amended ("the Code"). During the three months ended September 30, 2018, we revised our initial provisional amount recorded at December 31, 2017 for the transitional tax on the deemed repatriation of the accumulated earnings and profits of our international subsidiaries and the impact of the federal tax rate change on the value of our deferred tax assets and liabilities. The transition tax liability on the deemed repatriation decreased $4.2 million, primarily as a result of additional analysis performed over our historical foreign earnings and foreign source income which provided increased ability to credit foreign taxes associated with the deemed repatriation. In addition, the impact of the rate change on deferred increased by $1.2 million due to adjustments resulting from the filing of our 2017 federal income tax return. The net benefit to income taxes reduced the Company's effective income tax rate for the third quarter of 2018 to 11.8%, as well as reducing the effective income tax rate for the first nine months of 2018 to 21.0%. |
Revenue and Segment Information
Revenue and Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenue and Segment Information | Revenue and Segment Information Revenues from Contracts with Customers Disaggregation of revenue is presented in the tables below by product type and by geographical location. Management has determined that this level of disaggregation would be beneficial to users of the financial statements. Revenue by Product Type Three Months Ended Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net Sales Wholegoods $ 207,461 $ 200,160 $ 644,042 $ 594,114 Parts 58,093 52,093 155,965 145,105 Other 6,275 5,319 18,942 13,565 Consolidated $ 271,829 $ 257,572 $ 818,949 $ 752,784 Other includes rental sales, extended warranty sales and service sales as it is considered immaterial. Revenue by Geographical Location Three Months Ended Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net Sales United States $ 187,320 $ 188,037 $ 561,285 $ 536,505 France 22,719 17,048 76,273 66,321 Canada 17,700 15,167 49,005 44,819 United Kingdom 14,327 15,141 42,207 41,003 Brazil 3,924 3,050 13,899 13,368 Netherlands 6,704 640 19,510 3,806 China 3,773 6,586 11,984 8,905 Germany 2,262 379 5,603 1,275 Australia 1,549 2,023 5,872 7,550 Other 11,551 9,501 33,311 29,232 Consolidated $ 271,829 $ 257,572 $ 818,949 $ 752,784 Net sales are attributed to countries based on the location of the customer. Segment Information The following includes a summary of the unaudited financial information by reporting segment at September 30, 2019: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Net Sales Industrial $ 158,499 $ 156,721 $ 484,924 $ 438,919 Agricultural 59,797 61,464 168,129 179,182 European 53,533 39,387 165,896 134,683 Consolidated $ 271,829 $ 257,572 $ 818,949 $ 752,784 Income from Operations Industrial $ 14,350 $ 18,351 $ 50,994 $ 46,316 Agricultural 6,140 6,608 12,546 18,047 European 3,965 3,290 12,870 12,033 Consolidated $ 24,455 $ 28,249 $ 76,410 $ 76,396 (in thousands) September 30, 2019 December 31, 2018 Goodwill Industrial $ 61,341 $ 61,107 Agricultural 5,833 6,230 European 26,294 15,906 Consolidated $ 93,468 $ 83,243 Total Identifiable Assets Industrial $ 470,927 $ 421,539 Agricultural 169,818 162,548 European 215,648 137,546 Consolidated $ 856,393 $ 721,633 |
Contingent Matters
Contingent Matters | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Matters | Contingent Matters The Company is subject to various legal actions which have arisen in the ordinary course of its business. The most prevalent of such actions relate to product liability, which is generally covered by insurance after various self-insured retention amounts. While amounts claimed might be substantial and the ultimate liability with respect to such litigation cannot be determined at this time, the Company believes that the ultimate outcome of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations; however, the ultimate resolution cannot be determined at this time. Like other manufacturers, the Company is subject to a broad range of federal, state, local and foreign laws and requirements, including those concerning air emissions, discharges into waterways, and the generation, handling, storage, transportation, treatment and disposal of hazardous substances and waste materials, as well as the remediation of contamination associated with releases of hazardous substances at the Company’s facilities and off-site disposal locations, workplace safety and equal employment opportunities. These laws and regulations are constantly changing, and it is impossible to predict with accuracy the effect that changes to such laws and regulations may have on the Company in the future. Like other industrial concerns, the Company’s manufacturing operations entail the risk of noncompliance, and there can be no assurance that the Company will not incur material costs or other liabilities as a result thereof. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space and equipment under various operating and finance leases, which generally are expected to be renewed or replaced by other leases. The components of lease cost were as follows: Components of Lease Cost Three Months Ended Nine Months Ended (in thousands) 2019 2019 Finance lease cost: Amortization of right-of-use assets $ 33 $ 98 Interest on lease liabilities 3 8 Operating lease cost 1,095 3,207 Short-term lease cost 79 311 Variable lease cost 120 347 Total lease cost $ 1,330 $ 3,971 Rent expense for the three and nine months ending September 30, 2018 was immaterial. Maturities of lease liabilities were as follows: Future Minimum Lease Payments September 30, 2019 December 31, 2018 (in thousands) Operating Leases Finance Leases Operating Leases Capital Leases 2019 $ 1,008 (a) $ 37 (a) $ 3,310 $ 125 2020 3,215 115 2,453 97 2021 1,900 79 1,308 62 2022 1,244 41 743 24 2023 713 17 419 1 Thereafter 1,225 35 79 — Total minimum lease payments $ 9,305 $ 324 $ 8,312 $ 309 Less imputed interest (658) (19) — (11) Total lease liabilities $ 8,647 $ 305 $ 8,312 $ 298 (a) Amounts represent remaining three months of payments due for 2019. Future Lease Commencements As of September 30, 2019, we have additional operating leases, that have not yet commenced in the amount of $321,000. These operating leases will commence in fiscal year 2019. Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) September 30, 2019 Other non-current assets $ 8,569 Accrued liabilities 3,314 Other long-term liabilities 5,333 Total operating lease liabilities $ 8,647 Finance Leases (in thousands) September 30, 2019 Property, plant and equipment, gross $ 629 Accumulated Depreciation (324) Property, plant and equipment, net $ 305 Current maturities of long-term debt and finance lease obligations $ 113 Long-term debt and finance lease obligations, net of current maturities 192 Total finance lease liabilities $ 305 Weighted Average Remaining Lease Term Operating leases 4.07 years Finance leases 3.40 years Weighted Average Discount Rate Operating leases 3.40 % Finance leases 3.34 % Supplemental Cash Flow information related to leases was as follows: Nine Months Ended (in thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 11 Operating cash flows from operating leases 3,146 Financing cash flows from finance leases 97 |
Leases | Leases The Company leases office space and equipment under various operating and finance leases, which generally are expected to be renewed or replaced by other leases. The components of lease cost were as follows: Components of Lease Cost Three Months Ended Nine Months Ended (in thousands) 2019 2019 Finance lease cost: Amortization of right-of-use assets $ 33 $ 98 Interest on lease liabilities 3 8 Operating lease cost 1,095 3,207 Short-term lease cost 79 311 Variable lease cost 120 347 Total lease cost $ 1,330 $ 3,971 Rent expense for the three and nine months ending September 30, 2018 was immaterial. Maturities of lease liabilities were as follows: Future Minimum Lease Payments September 30, 2019 December 31, 2018 (in thousands) Operating Leases Finance Leases Operating Leases Capital Leases 2019 $ 1,008 (a) $ 37 (a) $ 3,310 $ 125 2020 3,215 115 2,453 97 2021 1,900 79 1,308 62 2022 1,244 41 743 24 2023 713 17 419 1 Thereafter 1,225 35 79 — Total minimum lease payments $ 9,305 $ 324 $ 8,312 $ 309 Less imputed interest (658) (19) — (11) Total lease liabilities $ 8,647 $ 305 $ 8,312 $ 298 (a) Amounts represent remaining three months of payments due for 2019. Future Lease Commencements As of September 30, 2019, we have additional operating leases, that have not yet commenced in the amount of $321,000. These operating leases will commence in fiscal year 2019. Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) September 30, 2019 Other non-current assets $ 8,569 Accrued liabilities 3,314 Other long-term liabilities 5,333 Total operating lease liabilities $ 8,647 Finance Leases (in thousands) September 30, 2019 Property, plant and equipment, gross $ 629 Accumulated Depreciation (324) Property, plant and equipment, net $ 305 Current maturities of long-term debt and finance lease obligations $ 113 Long-term debt and finance lease obligations, net of current maturities 192 Total finance lease liabilities $ 305 Weighted Average Remaining Lease Term Operating leases 4.07 years Finance leases 3.40 years Weighted Average Discount Rate Operating leases 3.40 % Finance leases 3.34 % Supplemental Cash Flow information related to leases was as follows: Nine Months Ended (in thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 11 Operating cash flows from operating leases 3,146 Financing cash flows from finance leases 97 |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans Defined Benefit Plan The Company amortizes annual pension income or expense evenly over four quarters. Pension expense was $23,000 and pension income was $87,000 for the three months ended September 30, 2019 and September 30, 2018, respectively. Pension expense for the nine months ended September 30, 2019 was $68,000 and pension income for the nine months ended September 30, 2018 was $260,000. The Company is not required to contribute to the pension plans for the 2019 plan year, but may do so. Supplemental Retirement Plan In May of 2015, the Board amended the SERP to allow the Board to modify the retirement benefit percentage either higher or lower than 20%. In May of 2016, the Board added additional key management to the plan. As of September 30, 2019, the current retirement benefit (as defined in the plan) for the participants ranges from 10% to 20%. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 24, 2019, the Company reported that it had completed the previously announced acquisition of 100% of the outstanding capital shares of Morbark, LLC ( Morbark ), a former portfolio company of Stellex Capital Management, for a total consideration of approximately $352 million, on a debt free basis and subject to certain post-closing adjustments. Morbark is a leading manufacturer of equipment and aftermarket parts for the forestry tree maintenance, biomass, land management and recycling markets. Their products include a broad range of tree chippers, grinders, flails, debarkers, stump grinders, mulchers and brush cutters, plus related aftermarket spare and wear parts. This includes the products sold under the Morbark, Rayco, Denis Cimaf and Boxer brand names. Morbark products are sold through a network of independent dealers with about 300 sales locations. Their products complement our core business and they've grown steadily in a sector which has performed well. We intend to maintain the Morbark brands in the market place. Morbark, with approximately 720 employees, is based in Winn, Michigan, with subsidiary operations in Wooster, Ohio and Roxton Falls, Quebec. five |
Basis of Financial Statement _2
Basis of Financial Statement Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Pronouncements Adopted and Not Yet Adopted | Accounting Pronouncements Adopted on January 1, 2019 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)". This update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The updated guidance leaves the accounting for leases by lessors largely unchanged from existing GAAP. The guidance became effective for us on January 1, 2019. As a lessee, this standard primarily impacted our accounting for long-term real estate and equipment leases, for which we recognized right-of-use assets of $7,747,000 and a corresponding lease liability of $7,868,000 on our consolidated balance sheet. We adopted these provisions on January 1, 2019 using the optional transition method that permits us to apply the new disclosure requirements in 2019 and continue to present comparative period information as required under FASB ASC Topic 840, "Leases". We did not have a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. We elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to not account for lease and non-lease components separately for most of our asset classes and to exclude leases with an initial term of 12 months or less from the right-of-use assets and liabilities. Adoption of the standards had no impact on results of operations or liquidity. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", to allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). Upon adoption of the ASU, entities will be required to disclose a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income. The standard is required to be adopted for periods beginning after December 15, 2018, with early adoption available for any set of financial statements that have yet to be issued or made available for issuance including retrospectively for any period in which the effect of the change is the U.S. corporate income tax rate in the TCJA is recognized. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”, which modifies the disclosures requirements on fair value measurements. Among other things, the amendments add disclosures for changes in unrealized gains and losses on Level 3 fair value measurements and requires additional disclosures on unobservable inputs associated with Level 3 assets. The guidance will become effective for us on January 1, 2020. The impacts that adoption of the ASU is expected to have on our financial disclosures is being evaluated. In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-14, “Compensation, Defined Benefit Plans", which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The update removes certain disclosures that are no longer considered cost beneficial and adds disclosure requirements identified as relevant. The guidance will become effective for us on January 1, 2021 with early adoption permitted for any financial statements that have not been issued. The impacts that adoption of the ASU is expected to have on our financial disclosures is being evaluated. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses,” to improve information on credit losses for financial instruments. The ASU replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted beginning in fiscal years beginning after December 15, 2018. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
General | The accompanying unaudited interim condensed consolidated financial statements of Alamo Group Inc. and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 (the "2018 10-K"). |
Accounting Pronouncements Adopted and Not Yet Adopted | Accounting Pronouncements Adopted on January 1, 2019 In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)". This update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The updated guidance leaves the accounting for leases by lessors largely unchanged from existing GAAP. The guidance became effective for us on January 1, 2019. As a lessee, this standard primarily impacted our accounting for long-term real estate and equipment leases, for which we recognized right-of-use assets of $7,747,000 and a corresponding lease liability of $7,868,000 on our consolidated balance sheet. We adopted these provisions on January 1, 2019 using the optional transition method that permits us to apply the new disclosure requirements in 2019 and continue to present comparative period information as required under FASB ASC Topic 840, "Leases". We did not have a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. We elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to not account for lease and non-lease components separately for most of our asset classes and to exclude leases with an initial term of 12 months or less from the right-of-use assets and liabilities. Adoption of the standards had no impact on results of operations or liquidity. In February 2018, the FASB issued ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income", to allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). Upon adoption of the ASU, entities will be required to disclose a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income. The standard is required to be adopted for periods beginning after December 15, 2018, with early adoption available for any set of financial statements that have yet to be issued or made available for issuance including retrospectively for any period in which the effect of the change is the U.S. corporate income tax rate in the TCJA is recognized. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement”, which modifies the disclosures requirements on fair value measurements. Among other things, the amendments add disclosures for changes in unrealized gains and losses on Level 3 fair value measurements and requires additional disclosures on unobservable inputs associated with Level 3 assets. The guidance will become effective for us on January 1, 2020. The impacts that adoption of the ASU is expected to have on our financial disclosures is being evaluated. In August 2018, the FASB issued Accounting Statement Update (ASU) No. 2018-14, “Compensation, Defined Benefit Plans", which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The update removes certain disclosures that are no longer considered cost beneficial and adds disclosure requirements identified as relevant. The guidance will become effective for us on January 1, 2021 with early adoption permitted for any financial statements that have not been issued. The impacts that adoption of the ASU is expected to have on our financial disclosures is being evaluated. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses,” to improve information on credit losses for financial instruments. The ASU replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. The ASU is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted beginning in fiscal years beginning after December 15, 2018. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
Leases | The following policy resulted from our adoption of the provisions of ASC Topic 842, “Leases", effective January 1, 2019, as described above in “Accounting Pronouncements Adopted on January 1, 2019". If we determine that an arrangement is or contains a lease, we recognize a right-of-use (ROU) asset and lease liability at the commencement date of the lease. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have elected to not account for the lease and non-lease components separately for most of our asset classes with the exception of real-estate. We have also elected to exclude all lease agreements with an initial term of 12 months or less from the lease recognition requirements. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Estimated fair value of assets acquired and liabilities assumed as of the acquisition date | The following table reflects the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash $ 87 Accounts receivable 6,278 Inventory 17,731 Prepaid and other assets 1,901 Property, plant and equipment 13,439 Intangible assets 14,095 Other liabilities assumed (12,606) Net assets assumed $ 40,925 Goodwill 11,686 Acquisition Price $ 52,611 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Net inventories consist of the following: (in thousands) September 30, 2019 December 31, 2018 Finished goods $ 173,994 $ 149,298 Work in process 18,415 12,732 Raw materials 14,107 14,600 Inventories, net $ 206,516 $ 176,630 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes to The Company's Goodwill | The following is the summary of changes to the Company's Goodwill for the nine months ended September 30, 2019: Industrial Agricultural European Consolidated (in thousands) Balance at December 31, 2018 $ 61,107 $ 6,230 $ 15,906 $ 83,243 Translation adjustment 234 (397) (1,298) (1,461) Goodwill acquired — — 11,686 11,686 Balance at September 30, 2019 $ 61,341 $ 5,833 $ 26,294 $ 93,468 |
Schedule of Definite and Indefinite Lived Intangible Assets | The following is a summary of the Company's definite and indefinite-lived intangible assets net of the accumulated amortization: (in thousands) Estimated Useful Lives September 30, 2019 December 31, 2018 Definite: Trade names and trademarks 25 years $ 31,866 $ 23,938 Customer and dealer relationships 10-14 years 34,150 32,260 Patents and drawings 3-12 years 5,689 2,061 Total at cost 71,705 58,259 Less accumulated amortization (18,000) (14,902) Total net 53,705 43,357 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 59,205 $ 48,857 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The components of long-term debt are as follows: September 30, 2019 December 31, 2018 Current Maturities: Finance lease obligations $ 113 $ 119 Long-term debt: Bank revolving credit facility 150,000 85,000 Finance lease obligations 192 179 Total Long-term debt 150,192 85,179 Total debt $ 150,305 $ 85,298 |
Common Stock and Dividends (Tab
Common Stock and Dividends (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Declared and Paid | Dividends declared and paid on a per share basis were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Dividends declared $ 0.12 $ 0.11 $ 0.36 $ 0.33 Dividends paid $ 0.12 $ 0.11 $ 0.36 $ 0.33 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the reconciliation from basic to diluted average common shares and the calculations of net income per common share. Net income for basic and diluted calculations do not differ. Three Months Ended Nine Months Ended (In thousands, except per share) 2019 2018 2019 2018 Net Income $ 17,418 $ 23,543 $ 53,338 $ 56,897 Average Common Shares: Basic (weighted-average outstanding shares) 11,748 11,689 11,724 11,649 Dilutive potential common shares from stock options 65 88 72 109 Diluted (weighted-average outstanding shares) 11,813 11,777 11,796 11,758 Basic earnings per share $ 1.48 $ 2.01 $ 4.55 $ 4.88 Diluted earnings per share $ 1.47 $ 2.00 $ 4.52 $ 4.84 |
Revenue and Segment Informati_2
Revenue and Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Disaggregation of revenue | Disaggregation of revenue is presented in the tables below by product type and by geographical location. Management has determined that this level of disaggregation would be beneficial to users of the financial statements. Revenue by Product Type Three Months Ended Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net Sales Wholegoods $ 207,461 $ 200,160 $ 644,042 $ 594,114 Parts 58,093 52,093 155,965 145,105 Other 6,275 5,319 18,942 13,565 Consolidated $ 271,829 $ 257,572 $ 818,949 $ 752,784 Other includes rental sales, extended warranty sales and service sales as it is considered immaterial. Revenue by Geographical Location Three Months Ended Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net Sales United States $ 187,320 $ 188,037 $ 561,285 $ 536,505 France 22,719 17,048 76,273 66,321 Canada 17,700 15,167 49,005 44,819 United Kingdom 14,327 15,141 42,207 41,003 Brazil 3,924 3,050 13,899 13,368 Netherlands 6,704 640 19,510 3,806 China 3,773 6,586 11,984 8,905 Germany 2,262 379 5,603 1,275 Australia 1,549 2,023 5,872 7,550 Other 11,551 9,501 33,311 29,232 Consolidated $ 271,829 $ 257,572 $ 818,949 $ 752,784 |
Schedule of financial information by segment | The following includes a summary of the unaudited financial information by reporting segment at September 30, 2019: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Net Sales Industrial $ 158,499 $ 156,721 $ 484,924 $ 438,919 Agricultural 59,797 61,464 168,129 179,182 European 53,533 39,387 165,896 134,683 Consolidated $ 271,829 $ 257,572 $ 818,949 $ 752,784 Income from Operations Industrial $ 14,350 $ 18,351 $ 50,994 $ 46,316 Agricultural 6,140 6,608 12,546 18,047 European 3,965 3,290 12,870 12,033 Consolidated $ 24,455 $ 28,249 $ 76,410 $ 76,396 (in thousands) September 30, 2019 December 31, 2018 Goodwill Industrial $ 61,341 $ 61,107 Agricultural 5,833 6,230 European 26,294 15,906 Consolidated $ 93,468 $ 83,243 Total Identifiable Assets Industrial $ 470,927 $ 421,539 Agricultural 169,818 162,548 European 215,648 137,546 Consolidated $ 856,393 $ 721,633 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease cost were as follows: Components of Lease Cost Three Months Ended Nine Months Ended (in thousands) 2019 2019 Finance lease cost: Amortization of right-of-use assets $ 33 $ 98 Interest on lease liabilities 3 8 Operating lease cost 1,095 3,207 Short-term lease cost 79 311 Variable lease cost 120 347 Total lease cost $ 1,330 $ 3,971 |
Finance Lease Maturity | Maturities of lease liabilities were as follows: Future Minimum Lease Payments September 30, 2019 December 31, 2018 (in thousands) Operating Leases Finance Leases Operating Leases Capital Leases 2019 $ 1,008 (a) $ 37 (a) $ 3,310 $ 125 2020 3,215 115 2,453 97 2021 1,900 79 1,308 62 2022 1,244 41 743 24 2023 713 17 419 1 Thereafter 1,225 35 79 — Total minimum lease payments $ 9,305 $ 324 $ 8,312 $ 309 Less imputed interest (658) (19) — (11) Total lease liabilities $ 8,647 $ 305 $ 8,312 $ 298 (a) Amounts represent remaining three months of payments due for 2019. |
Operating Lease Maturity | Maturities of lease liabilities were as follows: Future Minimum Lease Payments September 30, 2019 December 31, 2018 (in thousands) Operating Leases Finance Leases Operating Leases Capital Leases 2019 $ 1,008 (a) $ 37 (a) $ 3,310 $ 125 2020 3,215 115 2,453 97 2021 1,900 79 1,308 62 2022 1,244 41 743 24 2023 713 17 419 1 Thereafter 1,225 35 79 — Total minimum lease payments $ 9,305 $ 324 $ 8,312 $ 309 Less imputed interest (658) (19) — (11) Total lease liabilities $ 8,647 $ 305 $ 8,312 $ 298 (a) Amounts represent remaining three months of payments due for 2019. |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) September 30, 2019 Other non-current assets $ 8,569 Accrued liabilities 3,314 Other long-term liabilities 5,333 Total operating lease liabilities $ 8,647 Finance Leases (in thousands) September 30, 2019 Property, plant and equipment, gross $ 629 Accumulated Depreciation (324) Property, plant and equipment, net $ 305 Current maturities of long-term debt and finance lease obligations $ 113 Long-term debt and finance lease obligations, net of current maturities 192 Total finance lease liabilities $ 305 Weighted Average Remaining Lease Term Operating leases 4.07 years Finance leases 3.40 years Weighted Average Discount Rate Operating leases 3.40 % Finance leases 3.34 % |
Supplemental Cash Flow Information Related to Leases | Supplemental Cash Flow information related to leases was as follows: Nine Months Ended (in thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 11 Operating cash flows from operating leases 3,146 Financing cash flows from finance leases 97 |
Basis of Financial Statement _3
Basis of Financial Statement Presentation (Details) $ in Thousands | Jan. 01, 2019USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Right-of-use asset recognized | $ 7,747 |
Lease liability recognized | $ 7,868 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - Dutch Power - USD ($) $ in Millions | Mar. 04, 2019 | Sep. 30, 2019 | Sep. 30, 2019 |
Business Acquisition [Line Items] | |||
Percentage of interests acquired | 100.00% | ||
Acquisition price | $ 53 | ||
Goodwill adjustment | $ 2 | ||
Net sales | $ 27.7 | ||
Net income | $ 0.8 |
Business Combinations - Schedul
Business Combinations - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 04, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 93,468 | $ 83,243 | |
Dutch Power | |||
Business Acquisition [Line Items] | |||
Cash | $ 87 | ||
Accounts receivable | 6,278 | ||
Inventory | 17,731 | ||
Prepaid and other assets | 1,901 | ||
Property, plant and equipment | 13,439 | ||
Intangible assets | 14,095 | ||
Other liabilities assumed | (12,606) | ||
Net assets assumed | 40,925 | ||
Goodwill | 11,686 | ||
Acquisition Price | $ 52,611 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Reserves for sales discounts | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Reserves for sales discounts on products shipped under promotional programs | $ 16,807 | $ 18,123 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO inventory | 56.00% | 60.00% |
Excess of current costs over stated LIFO value | $ 10,646 | $ 10,646 |
Inventory obsolescence reserves | $ 6,991 | $ 7,194 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 173,994 | $ 149,298 |
Work in process | 18,415 | 12,732 |
Raw materials | 14,107 | 14,600 |
Inventories, net | $ 206,516 | $ 176,630 |
Rental Equipment (Details)
Rental Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Accumulated depreciation | $ 136,838 | $ 136,838 | $ 131,905 | ||
Depreciation - Property, plant and equipment | 10,583 | $ 9,388 | |||
Rental Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Accumulated depreciation | 13,359 | 13,359 | $ 11,145 | ||
Depreciation - Property, plant and equipment | $ 2,447 | $ 1,808 | $ 6,770 | $ 4,790 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 83,243 |
Translation adjustment | (1,461) |
Goodwill acquired | 11,686 |
Ending Balance | 93,468 |
Industrial | |
Goodwill [Roll Forward] | |
Beginning balance | 61,107 |
Translation adjustment | 234 |
Goodwill acquired | 0 |
Ending Balance | 61,341 |
Agricultural | |
Goodwill [Roll Forward] | |
Beginning balance | 6,230 |
Translation adjustment | (397) |
Goodwill acquired | 0 |
Ending Balance | 5,833 |
European | |
Goodwill [Roll Forward] | |
Beginning balance | 15,906 |
Translation adjustment | (1,298) |
Goodwill acquired | 11,686 |
Ending Balance | $ 26,294 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Definite and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Finite-lived intangible assets | $ 71,705 | $ 58,259 |
Less accumulated amortization | (18,000) | (14,902) |
Total net | 53,705 | 43,357 |
Total Intangible Assets | 59,205 | 48,857 |
Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Indefinite-lived intangible assets | $ 5,500 | 5,500 |
Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 25 years | |
Finite-lived intangible assets | $ 31,866 | 23,938 |
Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Finite-lived intangible assets | $ 34,150 | 32,260 |
Customer and dealer relationships | Minimum | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 10 years | |
Customer and dealer relationships | Maximum | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 14 years | |
Patents and drawings | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Finite-lived intangible assets | $ 5,689 | $ 2,061 |
Patents and drawings | Minimum | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 3 years | |
Patents and drawings | Maximum | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 12 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangibles | $ 1,112 | $ 874 | $ 3,081 | $ 2,630 | |
Intangible assets, net | $ 59,205 | $ 59,205 | $ 48,857 | ||
Indefinite-lived and Finite-Lived Intangible Assets | Total assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Percentage of total assets | 7.00% |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Finance lease obligations | $ 113 | |
Finance lease obligations | $ 119 | |
Bank revolving credit facility | 150,000 | 85,000 |
Finance lease obligations | 192 | |
Finance lease obligations | 179 | |
Total long-term debt | 150,192 | 85,179 |
Total debt | $ 150,305 | $ 85,298 |
Debt - Additional Information (
Debt - Additional Information (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Standby letters of credit | |
Debt Instrument [Line Items] | |
Amount of capacity | $ 3,152 |
Revolving Line of Credit | |
Debt Instrument [Line Items] | |
Available borrowings | $ 96,848 |
Common Stock and Dividends - Di
Common Stock and Dividends - Dividend Declared and Paid (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | ||||||||
Dividends declared (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.36 | $ 0.33 | ||||
Dividends paid (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.36 | $ 0.33 |
Common Stock and Dividends - Ad
Common Stock and Dividends - Additional Information (Details) - $ / shares | Oct. 28, 2019 | Oct. 01, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Class of Stock [Line Items] | ||||||||||
Dividends declared (in dollars per share) | $ 0.12 | $ 0.11 | $ 0.36 | $ 0.33 | ||||||
Dividends paid (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.36 | $ 0.33 | ||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividends declared (in dollars per share) | $ 0.12 | |||||||||
Dividends paid (in dollars per share) | $ 0.12 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 17,418 | $ 20,667 | $ 15,253 | $ 23,543 | $ 18,771 | $ 14,583 | $ 53,338 | $ 56,897 |
Average Common Shares: | ||||||||
Basic (weighted-average outstanding shares) (in shares) | 11,748 | 11,689 | 11,724 | 11,649 | ||||
Dilutive potential common shares from stock options (in shares) | 65 | 88 | 72 | 109 | ||||
Diluted (weighted-average outstanding shares) (in shares) | 11,813 | 11,777 | 11,796 | 11,758 | ||||
Basic earnings per share (in dollars per share) | $ 1.48 | $ 2.01 | $ 4.55 | $ 4.88 | ||||
Diluted earnings per share (in dollars per share) | $ 1.47 | $ 2 | $ 4.52 | $ 4.84 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Decrease in transition tax liability on deemed repatriation | $ 4,200 | ||
Rate change of deferreds | $ 1,200 | ||
Effective income tax rate reconciliation, percent | 11.80% | 21.00% |
Revenue and Segment Informati_3
Revenue and Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 271,829 | $ 257,572 | $ 818,949 | $ 752,784 |
Wholegoods | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 207,461 | 200,160 | 644,042 | 594,114 |
Parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 58,093 | 52,093 | 155,965 | 145,105 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 6,275 | $ 5,319 | $ 18,942 | $ 13,565 |
Revenue and Segment Informati_4
Revenue and Segment Information - Revenue by Geographical Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 271,829 | $ 257,572 | $ 818,949 | $ 752,784 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 187,320 | 188,037 | 561,285 | 536,505 |
France | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 22,719 | 17,048 | 76,273 | 66,321 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 17,700 | 15,167 | 49,005 | 44,819 |
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 14,327 | 15,141 | 42,207 | 41,003 |
Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 3,924 | 3,050 | 13,899 | 13,368 |
Netherlands | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 6,704 | 640 | 19,510 | 3,806 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 3,773 | 6,586 | 11,984 | 8,905 |
Germany | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 2,262 | 379 | 5,603 | 1,275 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 1,549 | 2,023 | 5,872 | 7,550 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 11,551 | $ 9,501 | $ 33,311 | $ 29,232 |
Revenue and Segment Informati_5
Revenue and Segment Information - Revenue, Income, Goodwill and Identifiable Assets by Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 271,829 | $ 257,572 | $ 818,949 | $ 752,784 | |
Income from Operations | 24,455 | 28,249 | 76,410 | 76,396 | |
Goodwill | 93,468 | 93,468 | $ 83,243 | ||
Total Identifiable Assets | 856,393 | 856,393 | 721,633 | ||
Industrial | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 158,499 | 156,721 | 484,924 | 438,919 | |
Income from Operations | 14,350 | 18,351 | 50,994 | 46,316 | |
Goodwill | 61,341 | 61,341 | 61,107 | ||
Total Identifiable Assets | 470,927 | 470,927 | 421,539 | ||
Agricultural | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 59,797 | 61,464 | 168,129 | 179,182 | |
Income from Operations | 6,140 | 6,608 | 12,546 | 18,047 | |
Goodwill | 5,833 | 5,833 | 6,230 | ||
Total Identifiable Assets | 169,818 | 169,818 | 162,548 | ||
European | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 53,533 | 39,387 | 165,896 | 134,683 | |
Income from Operations | 3,965 | $ 3,290 | 12,870 | $ 12,033 | |
Goodwill | 26,294 | 26,294 | 15,906 | ||
Total Identifiable Assets | $ 215,648 | $ 215,648 | $ 137,546 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 33 | $ 98 |
Interest on lease liabilities | 3 | 8 |
Operating lease cost | 1,095 | 3,207 |
Short-term lease cost | 79 | 311 |
Variable lease cost | 120 | 347 |
Total lease cost | $ 1,330 | $ 3,971 |
Leases - Maturity Schedule (Det
Leases - Maturity Schedule (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases, After Adoption of 842 | ||
2019 | $ 1,008 | |
2020 | 3,215 | |
2021 | 1,900 | |
2022 | 1,244 | |
2023 | 713 | |
Thereafter | 1,225 | |
Total minimum lease payments | 9,305 | |
Less imputed interest | (658) | |
Total operating lease liabilities | 8,647 | |
Finance Leases After Adoption of 842 | ||
2019 | 37 | |
2020 | 115 | |
2021 | 79 | |
2022 | 41 | |
2023 | 17 | |
Thereafter | 35 | |
Total minimum lease payments | 324 | |
Less imputed interest | (19) | |
Total finance lease liabilities | $ 305 | |
Operating Leases, Before Adoption of 842 | ||
2019 | $ 3,310 | |
2020 | 2,453 | |
2021 | 1,308 | |
2022 | 743 | |
2023 | 419 | |
Thereafter | 79 | |
Total lease liabilities | 8,312 | |
Capital Leases, Before Adoption of 842 | ||
2019 | 125 | |
2020 | 97 | |
2021 | 62 | |
2022 | 24 | |
2023 | 1 | |
Thereafter | 0 | |
Total minimum lease payments | 309 | |
Less imputed interest | (11) | |
Total lease liabilities | $ 298 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lessee, Operating Lease, Description [Abstract] | |
Other non-current assets | $ 8,569 |
Accrued liabilities | 3,314 |
Other long-term liabilities | 5,333 |
Total operating lease liabilities | 8,647 |
Finance Leases | |
Property, plant and equipment, gross | 629 |
Accumulated Depreciation | (324) |
Property, plant and equipment, net | 305 |
Current maturities of long-term debt and finance lease obligations | 113 |
Long-term debt and finance lease obligations, net of current maturities | 192 |
Total finance lease liabilities | $ 305 |
Operating Leases Weighted Average Remaining Lease Term | 4 years 25 days |
Finance Leases Weighted Average Remaining Lease Term | 3 years 4 months 24 days |
Operating Lease Weighted Average Discount Rate (as percent) | 3.40% |
Finance Lease Weighted Average Discount Rate (as percent) | 3.34% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||
Operating cash flows from finance leases | $ 11 | |
Operating cash flows from operating leases | 3,146 | |
Financing cash flows from finance leases | $ 97 | $ 82 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Additional operating lease not yet commenced | $ 321 |
Retirement Benefit Plans - Addi
Retirement Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension expense (income) | $ 23 | $ (87) | $ 68 | $ (260) |
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension expense (income) | $ 214 | $ 250 | $ 642 | $ 749 |
Supplemental Employee Retirement Plan | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Retirement benefit, percentage | 10.00% | |||
Supplemental Employee Retirement Plan | Maximum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Retirement benefit, percentage | 20.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Oct. 24, 2019USD ($)locationemployee | Oct. 23, 2019USD ($) |
Line of Credit | Unsecured Debt | Amended and Restated Revolving Credit Agreement | ||
Subsequent Event [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 650,000,000 | $ 250,000,000 |
Debt instrument, term | 5 years | |
Term Loan | Unsecured Debt | Amended and Restated Revolving Credit Agreement | ||
Subsequent Event [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |
Revolving Line of Credit | Unsecured Debt | Amended and Restated Revolving Credit Agreement | ||
Subsequent Event [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 350,000,000 | |
Morbark, LLC | ||
Subsequent Event [Line Items] | ||
Percentage of interests acquired | 100.00% | |
Acquisition price | $ 352,000,000 | |
Entity number of sales locations | location | 300 | |
Entity number of employees | employee | 720 |