MYERS INDUSTRIES INC, 10-K filed on 3/8/2019
Annual Report
v3.10.0.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2018
Feb. 28, 2019
Jun. 29, 2018
Document And Entity Information [Abstract]      
Entity Registrant Name MYERS INDUSTRIES INC    
Entity Central Index Key 0000069488    
Document Type 10-K    
Document Period End Date Dec. 31, 2018    
Amendment Flag false    
Document Fiscal Year Focus 2018    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Accelerated Filer    
Entity Shell Company false    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Public Float     $ 453,079,680
Entity Common Stock, Shares Outstanding   35,376,498  
v3.10.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Statement [Abstract]      
Net sales $ 566,735 $ 547,043 $ 534,379
Cost of sales 387,442 389,590 372,481
Gross profit 179,293 157,453 161,898
Selling expenses 59,503 56,614 58,782
General and administrative expenses 79,832 78,889 73,797
Operating expenses excluding impairment charges 139,335 135,503 132,579
(Gain) loss on disposal of fixed assets (8) (3,482) 628
Impairment charges 308 544 1,329
Other expenses 33,331    
Operating income 6,327 24,888 27,362
Interest      
Income (1,221) (1,361) (1,262)
Expense 6,159 8,653 9,905
Interest expense, net 4,938 7,292 8,643
Loss on extinguishment of debt 0 1,888 0
Income from continuing operations before income taxes 1,389 15,708 18,719
Income tax expense 3,037 4,864 7,395
Income (loss) from continuing operations (1,648) 10,844 11,324
Income (loss) from discontinued operations, net of income tax (1,701) (20,733) (10,267)
Net income (loss) $ (3,349) $ (9,889) $ 1,057
Income (loss) per common share from continuing operations:      
Basic $ (0.05) $ 0.36 $ 0.38
Diluted (0.05) 0.35 0.38
Income (loss) per common share from discontinued operations:      
Basic (0.05) (0.69) (0.35)
Diluted (0.05) (0.68) (0.35)
Net income (loss) per common share:      
Basic (0.10) (0.33) 0.03
Diluted (0.10) (0.33) 0.03
Dividends declared per share $ 0.54 $ 0.54 $ 0.54
v3.10.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]      
Net income (loss) $ (3,349) $ (9,889) $ 1,057
Other comprehensive income (loss)      
Adoption of ASU 2018-02 (315)    
Foreign currency translation adjustment (3,501) 2,391 5,105
Reclassification adjustment for foreign currency translation included in net income (loss)   17,201  
Pension liability, net of tax expense (benefit) of $25 in 2018, $14 in 2017, and ($95) in 2016 77 41 (169)
Total other comprehensive income (loss) (3,739) 19,633 4,936
Comprehensive income (loss) $ (7,088) $ 9,744 $ 5,993
v3.10.0.1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]      
Tax expense (benefit) on pension liability $ 25 $ 14 $ (95)
v3.10.0.1
Consolidated Statements of Financial Position - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Current Assets    
Cash $ 58,894 $ 2,520
Restricted cash 0 8,659
Accounts receivable, less allowances of $2,259 and $1,777, respectively 72,939 76,650
Income tax receivable 4,892 12,954
Inventories, net 43,596 47,025
Prepaid expenses and other current assets 2,534 2,204
Total Current Assets 182,855 150,012
Other Assets    
Property, plant, and equipment, net 65,460 83,904
Goodwill 59,068 59,971
Intangible assets, net 30,280 39,049
Deferred income taxes 5,270 120
Notes receivable 0 18,737
Other 5,712 4,149
Total Assets 348,645 355,942
Current Liabilities    
Accounts payable 60,849 63,581
Accrued expenses    
Employee compensation 16,531 15,544
Taxes, other than income taxes 1,403 1,664
Accrued interest 1,939 2,392
Other current liabilities 16,701 15,472
Total Current Liabilities 97,423 98,653
Long-term debt 76,790 151,036
Other liabilities 19,794 8,236
Deferred income taxes 0 4,265
Shareholders’ Equity    
Serial Preferred Shares (authorized 1,000,000 shares; none issued and outstanding) 0 0
Common Shares, without par value (authorized 60,000,000 shares; outstanding 35,374,121 and 30,495,737; net of treasury shares of 7,178,336 and 7,456,720, respectively) 21,547 18,547
Additional paid-in capital 292,558 209,253
Accumulated other comprehensive loss (18,280) (14,541)
Retained deficit (141,187) (119,507)
Total Shareholders’ Equity 154,638 93,752
Total Liabilities and Shareholders’ Equity $ 348,645 $ 355,942
v3.10.0.1
Consolidated Statements of Financial Position (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Current Assets    
Allowance for Doubtful Accounts Receivable, Current $ 2,259 $ 1,777
Shareholders’ Equity    
Preferred Shares, shares authorized (in shares) 1,000,000 1,000,000
Preferred Shares, shares issued (in shares) 0 0
Preferred Shares, shares outstanding (in shares) 0 0
Common Shares, shares authorized (in shares) 60,000,000 60,000,000
Common Shares, shares outstanding (in shares) 35,374,121 30,495,737
Common shares, treasury (in shares) 7,178,336 7,456,720
v3.10.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Common Shares [Member]
Additional Paid-In Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Deficit [Member]
Beginning balance at Dec. 31, 2015 $ 97,703 $ 17,895 $ 196,743 $ (39,110) $ (77,825)
Beginning balance, shares at Dec. 31, 2015   29,521,566      
Stockholders' Equity [Roll Forward]          
Net income (loss) 1,057 $ 0 0 0 1,057
Issuances under option plans $ 3,235 $ 205 3,030 0 0
Issuances under option plans, shares 334,836 374,958      
Dividend reinvestment plan $ 139 $ 6 133 0 0
Dividend reinvestment plan, shares   10,520      
Restricted stock vested 0 $ 104 (104) 0 0
Restricted stock vested, shares   169,929      
Stock compensation expense 3,357 $ 24 3,333 0 0
Tax benefit from options 64 0 64 0 0
Foreign currency translation adjustment 5,105 0 0 5,105 0
Shares withheld for employee taxes on equity awards (1,166) $ 0 (1,166) 0 0
Shares withheld for employee taxes on equity awards, shares   (57,412)      
Declared dividends (16,292) $ 0 0 0 (16,292)
Pension liability, net of tax (169) 0 0 (169) 0
Ending balance at Dec. 31, 2016 93,033 $ 18,234 202,033 (34,174) (93,060)
Ending balance, shares at Dec. 31, 2016   30,019,561      
Stockholders' Equity [Roll Forward]          
Net income (loss) (9,889) $ 0 0 0 (9,889)
Issuances under option plans $ 4,396 $ 229 4,167 0 0
Issuances under option plans, shares 375,292 375,292      
Dividend reinvestment plan $ 131 $ 5 126 0 0
Dividend reinvestment plan, shares   7,625      
Restricted stock vested 0 $ 79 (79) 0 0
Restricted stock vested, shares   130,036      
Stock compensation expense 3,626 $ 0 3,626 0 0
Foreign currency translation adjustment 2,391 0 0 2,391 0
Shares withheld for employee taxes on equity awards (620) $ 0 (620) 0 0
Shares withheld for employee taxes on equity awards, shares   (36,777)      
Declared dividends (16,558) $ 0 0 0 (16,558)
Pension liability, net of tax 41 0 0 41 0
Reclassification adjustment for foreign currency translation included in net income (loss) 17,201 0 0 17,201 0
Ending balance at Dec. 31, 2017 $ 93,752 $ 18,547 209,253 (14,541) (119,507)
Ending balance, shares at Dec. 31, 2017 30,495,737 30,495,737      
Stockholders' Equity [Roll Forward]          
Net income (loss) $ (3,349) $ 0 0 0 (3,349)
Issuances under option plans $ 2,735 $ 117 2,618 0 0
Issuances under option plans, shares 191,169 191,169      
Dividend reinvestment plan $ 118 $ 4 114 0 0
Dividend reinvestment plan, shares   5,712      
Restricted stock vested 0 $ 73 (73) 0 0
Restricted stock vested, shares   120,142      
Stock compensation expense 4,644 $ 0 4,644 0 0
Foreign currency translation adjustment (3,501) 0 0 (3,501) 0
Shares withheld for employee taxes on equity awards (714) $ 0 (714) 0 0
Shares withheld for employee taxes on equity awards, shares   (38,639)      
Declared dividends (18,646) $ 0 0 0 (18,646)
Pension liability, net of tax 77 0 0 77 0
Shares issued in public offering, net of equity issuance costs 79,522 $ 2,806 76,716 0 0
Shares issued in public offering, net of equity issuance costs, shares   4,600,000      
Ending balance at Dec. 31, 2018 $ 154,638 $ 21,547 292,558 (18,280) (141,187)
Ending balance, shares at Dec. 31, 2018 35,374,121 35,374,121      
Stockholders' Equity [Roll Forward]          
Adoption of ASU 2018-02 $ 0 $ 0 $ 0 $ (315) $ 315
v3.10.0.1
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dividends declared per share (in dollars per share) $ 0.54 $ 0.54 $ 0.54
Tax expense (benefit) on pension liability $ 25 $ 14 $ (95)
Retained Deficit [Member]      
Dividends declared per share (in dollars per share) $ 0.54 $ 0.54 $ 0.54
Accumulated Other Comprehensive Income (Loss) [Member]      
Tax expense (benefit) on pension liability $ 25 $ 14 $ 95
v3.10.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash Flows From Operating Activities      
Net income (loss) $ (3,349) $ (9,889) $ 1,057
Income (loss) from discontinued operations, net of income taxes (1,701) (20,733) (10,267)
Income (loss) from continuing operations (1,648) 10,844 11,324
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities      
Depreciation 17,638 19,952 22,049
Amortization 8,485 8,886 9,743
Accelerated depreciation associated with restructuring activities 16 1,993 0
Non-cash stock-based compensation expense 4,257 3,626 3,357
(Gain) loss on disposal of fixed assets (8) (3,482) 628
Provision for loss on note receivable 23,008 0 0
Lease guarantee contingency 10,323 0 0
Loss on extinguishment of debt 0 1,888 0
Deferred taxes (9,450) (5,663) 555
Interest income received (accrued) on note receivable (361) (1,384) (1,276)
Impairment charges 308 544 1,329
Other 457 256 155
Payments on performance based compensation (1,249) (1,010) (1,794)
Other long-term liabilities 180 723 (592)
Cash flows provided by (used for) working capital      
Accounts receivable 4,927 (6,709) 6,427
Inventories 3,151 (1,876) 8,603
Prepaid expenses and other current assets (353) 2,209 1,047
Accounts payable and accrued expenses 713 18,299 (27,594)
Net cash provided by (used for) operating activities - continuing operations 60,394 49,096 33,961
Net cash provided by (used for) operating activities - discontinued operations 858 (4,633) (232)
Net cash provided by (used for) operating activities 61,252 44,463 33,729
Cash Flows From Investing Activities      
Capital expenditures (5,123) (5,814) (12,489)
Proceeds from sale of property, plant and equipment 2,633 11,058 450
Proceeds (payments) related to sale of business 0 0 (4,034)
Net cash provided by (used for) investing activities - continuing operations (2,490) 5,244 (16,073)
Net cash provided by (used for) investing activities - discontinued operations 0 (1,107) (16)
Net cash provided by (used for) investing activities (2,490) 4,137 (16,089)
Cash Flows From Financing Activities      
Net borrowings (repayments) on credit facility (74,557) (16,474) (3,804)
Repayments of senior unsecured notes 0 (23,798) 0
Cash dividends paid (17,862) (16,341) (16,221)
Proceeds from issuance of common stock 2,853 4,527 3,374
Excess tax benefit from stock-based compensation 0 0 64
Proceeds from public offering of common stock, net of equity issuance costs 79,522 0 0
Shares withheld for employee taxes on equity awards (714) (620) (1,166)
Deferred financing costs 0 (1,030) 0
Net cash provided by (used for) financing activities - continuing operations (10,758) (53,736) (17,753)
Net cash provided by (used for) financing activities - discontinued operations 0 0 0
Net cash provided by (used for) financing activities (10,758) (53,736) (17,753)
Foreign exchange rate effect on cash (289) (208) 665
Less: Net increase (decrease) in cash classified within discontinued operations 0 (5,484) 493
Net increase in cash and restricted cash 47,715 140 59
Cash and restricted cash at January 1 11,179 11,039 10,980
Cash and restricted cash at December 31 58,894 11,179 11,039
Supplemental Disclosures of Cash Flow Information      
Interest 6,236 8,913 8,917
Income taxes $ 5,539 $ 5,651 $ 8,136
v3.10.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Summary of Significant Accounting Policies

1.  Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. All subsidiaries that are not wholly owned and are not included in the consolidated operating results of the Company are immaterial investments which have been accounted for under the equity or cost method. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the timing and amount of assets, liabilities, equity, revenues, and expenses recorded and disclosed. Actual results could differ from those estimates.

During the fourth quarter of 2017, the Company completed the sale of certain subsidiaries in Brazil. As further discussed in Note 5, the results of operations and cash flows of these subsidiaries have been classified as discontinued operations in the consolidated financial statements for all periods presented.

Accounting Standards Adopted

In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, which allowed SEC registrants to record provisional amounts in earnings for the year ended December 31, 2017 due to the complexities involved in accounting for the enactment of the Tax Cuts and Jobs Act. The Company recognized the estimated income tax effects of the Tax Cuts and Jobs Act in its 2017 consolidated financial statements in accordance with SEC Staff Accounting Bulletin No. 118. The Company finalized its accounting in 2018. Refer to Note 13 for further information regarding the provisional amounts recorded by the Company.

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220). This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The new standard also requires certain disclosures about stranded tax effects. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (as further discussed in Note 13) is recognized. The Company early adopted this standard effective January 1, 2018 and as a result of adopting this standard, $0.3 million of stranded tax effects were reclassified from accumulated other comprehensive income to retained earnings in the first quarter of 2018.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.  This ASU requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  The ASU also allows only the service cost component to be eligible for capitalization when applicable. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods.  The ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets.  The Company adopted this standard effective January 1, 2018 and the adoption did not have a material impact on its consolidated financial statements as the pension plan is frozen.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash. This ASU requires that companies include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows.  The ASU should be applied using a retrospective transition method to each period presented and is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company adopted this standard effective January 1, 2018. At adoption, the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the consolidated statements of cash flows did not have a material impact on the Company’s net cash flows in prior years.

In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This ASU requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company adopted this standard effective January 1, 2018, and the adoption of this standard did not have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. Under ASU 2014-09, an entity recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. Additional disclosures are also required to help users of financial statements understand the nature, amount, and timing of revenue and cash flows arising from contracts. The Company adopted the new guidance effective January 1, 2018 using the modified retrospective approach and applied the new guidance to all open contracts at the date of adoption. Adoption of the new standard resulted in changes to the Company’s accounting policy and disclosures related to revenue recognition (refer to Note 2). The impact of adopting this standard on the Company’s consolidated financial statements was not material, and there was no cumulative transition adjustment required.

Accounting Standards Not Yet Adopted

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted and this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20). This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for annual periods ending after December 15, 2020, with early adoption permitted and should be applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. This guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted. Certain disclosures in this ASU are required to be applied on a retrospective basis and others on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.  This ASU eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.  The guidance allows for early adoption for impairment testing dates after January 1, 2017.  While the Company has elected not to early adopt this guidance and will continue to evaluate the timing of adoption, it does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements unless a goodwill impairment were to occur.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, which introduces new guidance for the accounting for credit losses on instruments.  The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2019 including interim periods within that reporting period, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.


In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet, and disclose key information about the amount, timing and uncertainty of cash flows arising from leasing arrangements. The new standard is effective for the Company beginning January 1, 2019, and must be adopted using either the modified retrospective approach, which requires application of the new guidance at the beginning of the earliest comparative period presented or the optional transition approach, which requires application of the new guidance at the standard’s effective date. The Company will adopt the new guidance effective January 1, 2019 using the optional transition method. The Company is substantially complete with its implementation of the new standard, which included designing and implementing changes to processes, controls and systems, where necessary, to address the requirements of the new standard. Upon adoption, the Company expects to recognize right-of-use assets and lease liabilities in the range of $5.7 million to $6.7 million for substantially all of its operating leases. The remaining undiscounted minimum lease commitments as of December 31, 2018 are summarized in Note 15, Leases. It is not expected that the adoption of this standard will have a material impact on the consolidated results of operations or cash flows. The Company will also record a cumulative-effect adjustment to retained earnings upon adoption to recognize the remaining deferred gain on the sale-leaseback transaction that occurred prior to the date of initial application. Additionally, the standard requires new disclosures related to leases, which the Company is in the process of finalizing.

Translation of Foreign Currencies

All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders’ equity.

Fair Value Measurement

The Company follows guidance included in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. The guidance established a common definition for fair value to be applied under U.S. GAAP requiring the use of fair value, established a framework for measuring fair value, and expanded disclosure requirements about such fair value measurements. The guidance did not require any new fair value measurements, but rather applied to all other accounting pronouncements that require or permit fair value measurements. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels:

 

Level 1:

Unadjusted quoted prices in active markets for identical assets or liabilities.

 

Level 2:

Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.

 

Level 3:

Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.

Financial assets that are measured at net asset value, which is a practical expedient to estimating fair value, are not classified in the fair value hierarchy.

The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximate carrying value due to the nature and relative short maturity of these assets and liabilities.

The fair value of debt under the Company’s Loan Agreement, as defined in Note 12, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At December 31, 2018 and 2017, the aggregate fair value of the Company’s outstanding fixed rate senior unsecured notes was estimated at $76.8 million and $78.0 million, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk primarily consist of trade accounts receivable. The concentration of accounts receivable credit risk is generally limited based on the Company’s diversified operations, with customers spread across many industries and countries. In 2018, there were no customers that accounted for more than ten percent of net sales. Outside of the United States, only customers located in Canada, which account for approximately 4.1% of net sales, are significant to the Company’s operations. In addition, management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company also reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due the Company could be reduced by a material amount. Expense related to bad debts was approximately $0.7 million, $0.7 million and $0.8 million for 2018, 2017 and 2016, respectively, and is recorded within selling expenses in the Consolidated Statements of Operations. Deductions from the allowance for doubtful accounts, net of recoveries, were approximately $0.5 million, $0.7 million and $0.4 million for 2018, 2017 and 2016, respectively.

Inventories

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 30 percent of our inventories are valued using the LIFO method of determining cost. All other inventories are valued at the FIFO method of determining cost.

 

Inventories at December 31 consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Finished and in-process products

 

$

27,960

 

 

$

30,874

 

Raw materials and supplies

 

 

15,636

 

 

 

16,151

 

 

 

$

43,596

 

 

$

47,025

 

 

If the FIFO method of inventory cost valuation had been used exclusively by the Company, inventories would have been $5.1 million and $5.6 million higher than reported at December 31, 2018 and 2017, respectively. Cost of sales decreased by $0.5 million and $0.1 million in 2018 and 2017, respectively, as a result of the liquidation of LIFO inventories. Cost of sales increased by $0.1 million in 2016 as a result of the liquidation of LIFO inventories.

Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization on the basis of the straight-line method over the estimated useful lives of the assets as follows:

 

Buildings

20 to 40 years

Machinery and Equipment

3 to 10 years

Leasehold Improvements

5 to 10 years

 

The Company’s property, plant and equipment by major asset class at December 31 consists of:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Land

 

$

7,017

 

 

$

7,815

 

Buildings and leasehold improvements

 

 

53,821

 

 

 

59,730

 

Machinery and equipment

 

 

253,785

 

 

 

260,880

 

 

 

 

314,623

 

 

 

328,425

 

Less allowances for depreciation and amortization

 

 

(249,163

)

 

 

(244,521

)

 

 

$

65,460

 

 

$

83,904

 

 

 

At December 31, 2018 and 2017, the Company had approximately $6.8 million and $6.9 million, respectively, of capitalized software costs included in machinery and equipment. Amortization expense related to capitalized software costs was approximately $0.5 million, $1.0 million and $0.6 million in 2018, 2017 and 2016, respectively.

Long-Lived Assets

The Company reviews its long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Determination of potential impairment related to assets to be held and used is based upon undiscounted future cash flows resulting from the use and ultimate disposition of the asset and related asset group. For assets held for sale, the amount of potential impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset. Refer to Note 3 for discussion of the impairment charges.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) were as follows:

 

 

 

Foreign

Currency

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance at January 1, 2016

 

$

(37,447

)

 

$

(1,663

)

 

$

(39,110

)

Other comprehensive income (loss) before reclassifications

 

 

5,105

 

 

 

(222

)

 

 

4,883

 

Amounts reclassified from accumulated other comprehensive income, net of

   tax of ($30) (1)

 

 

 

 

 

53

 

 

 

53

 

Net current-period other comprehensive income (loss)

 

 

5,105

 

 

 

(169

)

 

 

4,936

 

Balance at December 31, 2016

 

 

(32,342

)

 

 

(1,832

)

 

 

(34,174

)

Other comprehensive income (loss) before reclassifications

 

 

2,391

 

 

 

(31

)

 

 

2,360

 

Amounts reclassified from accumulated other comprehensive income, net of

   tax of ($24) (1) (2)

 

 

17,201

 

 

 

72

 

 

 

17,273

 

Net current-period other comprehensive income (loss)

 

 

19,592

 

 

 

41

 

 

 

19,633

 

Balance at December 31, 2017

 

 

(12,750

)

 

 

(1,791

)

 

 

(14,541

)

Other comprehensive income (loss) before reclassifications

 

 

(3,501

)

 

 

14

 

 

 

(3,487

)

Amounts reclassified from accumulated other comprehensive income, net of

   tax of ($21) (1)

 

 

 

 

 

63

 

 

 

63

 

Reclassification of stranded tax effects to retained earnings(3)

 

 

 

 

 

(315

)

 

 

(315

)

Net current-period other comprehensive income (loss)

 

 

(3,501

)

 

 

(238

)

 

 

(3,739

)

Balance at December 31, 2018

 

$

(16,251

)

 

$

(2,029

)

 

$

(18,280

)

 

(1)

The accumulated other comprehensive income (loss) components related to defined benefit pension plans are included in the computation of net periodic pension cost. See Note 14, Retirement Plans for additional details.

(2)

Cumulative translation adjustment associated with the sale of the Brazil Business, as further discussed in Note 5, was included in the carrying value of assets disposed of.

(3)

Reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act to retained earnings due to the adoption of ASU 2018-02 during the first quarter of 2018.

Stock Based Compensation

The Company has stock incentive plans that provide for the granting of stock-based compensation to employees and to non-employee directors. Shares issued for option exercises or restricted stock units may be either from authorized but unissued shares or treasury shares. The Company records the costs of the plan under the provisions of ASC 718, Compensation — Stock Compensation. For transactions in which the Company obtains employee services in exchange for an award of equity instruments, the Company measures the cost of the services based on the grant date fair value of the award. The Company recognizes the cost over the period during which an employee is required to provide services in exchange for the award, referred to as the requisite service period (usually the vesting period).

 

Income Taxes

Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the change is enacted.

ASC 740, Income Taxes (“ASC 740”) requires that deferred tax assets be reduced by a valuation allowance, if based on all available evidence, it is more likely than not that the deferred tax asset will not be realized. The Company evaluates the recovery of its deferred tax assets by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income inherently rely heavily on estimates.

The Company evaluates its tax positions in accordance with ASC 740, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized under ASC 740. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. The Company maintains operating cash and reserves for replacement balances in financial institutions which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of these institutions and believes that the risk of loss is minimal.

Cash flows used in investing activities excluded $1.1 million, $0.6 million and $0.1 million of accrued capital expenditures in 2018, 2017 and 2016, respectively.

v3.10.0.1
Revenue Recognition
12 Months Ended
Dec. 31, 2018
Revenue Recognition [Abstract]  
Revenue Recognition

2.  Revenue Recognition

The following table disaggregates the Company’s revenue by major market:

 

 

 

For the Year Ended December 31, 2018

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

78,174

 

 

$

 

 

$

 

 

$

78,174

 

Vehicle

 

 

95,247

 

 

 

 

 

 

 

 

 

95,247

 

Food and beverage

 

 

101,610

 

 

 

 

 

 

 

 

 

101,610

 

Industrial

 

 

142,168

 

 

 

 

 

 

(100

)

 

 

142,068

 

Auto aftermarket

 

 

 

 

 

149,636

 

 

 

 

 

 

149,636

 

Total net sales

 

$

417,199

 

 

$

149,636

 

 

$

(100

)

 

$

566,735

 

 

Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the Company’s products.  This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed.  The Company does not enter into any long-term contracts with customers greater than one year.  Based on the nature of the Company’s products and customer contracts, the Company has not recorded any deferred revenue, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90 day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products.  Certain contracts with customers include variable consideration, such as rebates or discounts.  The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs.  While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship.  Thus, the Company estimates the expected returns each period based on an analysis of historical experience.  For certain businesses where physical recovery of the product from returns occurs, the Company records an estimated right to return asset from such recovery, based on the approximate cost of the product.


Amounts included in the Consolidated Statements of Financial Position related to revenue recognition include:

 

 

 

December 31,

 

 

December 31,

 

 

Statement of Financial Position

 

 

2018

 

 

2017

 

 

Classification

Returns, discounts and other allowances

 

$

(1,169

)

 

$

(853

)

 

Accounts receivable

Right of return asset

 

 

535

 

 

 

292

 

 

Inventories, net

Customer deposits

 

 

(806

)

 

 

(140

)

 

Other current liabilities

Accrued rebates

 

 

(2,559

)

 

 

(2,962

)

 

Other current liabilities

 

Sales, value added, and other taxes the Company collects concurrent with revenue from customers are excluded from net sales.  The Company has elected to recognize the cost for shipments to customers when control over products has transferred to the customer.  Costs for shipments to customers are classified as selling expenses for the Company’s manufacturing businesses and as cost of sales for the Company’s distribution business in the accompanying Consolidated Statements of Operations. The Company incurred costs for shipments to customers of approximately $9.7 million, $8.2 million and $8.9 million in selling expenses for the years ended December 31, 2018, 2017 and 2016, respectively, and $5.7 million, $6.0 million, and $6.1 million in cost of sales for the years ended December 31, 2018, 2017 and 2016, respectively. All other internal distribution costs are recorded in selling expenses.

Based on the short term nature of contracts described above, the Company does not incur significant contract acquisition costs. These costs, as well as other incidental items that are immaterial in the context of the contract, are recognized as expense as incurred.

v3.10.0.1
Impairment Charges
12 Months Ended
Dec. 31, 2018
Asset Impairment Charges [Abstract]  
Impairment Charges

3.  Impairment Charges

As part of its ongoing strategy, the Company has been evaluating its various real estate holdings over the past two years. As a result of these initiatives, certain buildings have been reclassified as held for sale in 2017 and 2018. Based on the estimated fair value of these buildings (using primarily third party offers considered to be Level 2 inputs), less estimated costs to sell, the Company recorded impairment charges of $0.3 million and $0.5 million during the years ended December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, the Company had classified $4.4 million and $0.3 million for buildings as held for sale, in Other Assets in the Consolidated Statements of Financial Position. During 2018 and 2017, the Company sold certain buildings previously held for sale for net proceeds of $2.3 million and $3.1 million, respectively.

During 2016, the Company recorded impairment charges of $1.3 million, primarily related to long-lived assets associated with the exit of a non-strategic product line in the Material Handling Segment.  

v3.10.0.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

4.  Goodwill and Intangible Assets

The Company tests for impairment of goodwill and indefinite-lived intangible assets on at least an annual basis, unless significant changes in circumstances indicate a potential impairment may have occurred sooner. Such changes in circumstances may include, but are not limited to, significant changes in economic and competitive conditions, the impact of the economic environment on the Company’s customer base or its businesses, or a material negative change in its relationships with significant customers.    

The Company conducted its annual goodwill impairment assessment as of October 1 for all of its reporting units, noting no impairment in continuing operations in 2018, 2017 or 2016.      

During the 2018 annual review of goodwill, management performed a qualitative assessment for all of its reporting units. After considering changes to assumptions used in the most recent quantitative annual testing for each reporting unit, including macroeconomic conditions, industry and market considerations, overall financial performance, the magnitude of the excess of fair value over the carrying amount of each reporting unit as determined in the most recent quantitative annual testing, and other factors, management concluded that it was not more likely than not that the fair values of the reporting units were less than their respective carrying values and, therefore, did not perform a quantitative analysis in 2018. A qualitative analysis was also performed at October 31, 2017 and a quantitative analysis was performed at October 1, 2016.

The changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 were as follows:

 

 

 

Distribution

 

 

Material

Handling

 

 

Total

 

January 1, 2017

 

$

505

 

 

$

58,714

 

 

$

59,219

 

Foreign currency translation

 

 

 

 

 

752

 

 

 

752

 

December 31, 2017

 

$

505

 

 

$

59,466

 

 

$

59,971

 

Foreign currency translation

 

 

 

 

 

(903

)

 

 

(903

)

December 31, 2018

 

$

505

 

 

$

58,563

 

 

$

59,068

 

 

Intangible assets other than goodwill primarily consist of trade names, customer relationships, patents, and technology assets established in connection with acquisitions. These intangible assets, other than certain trade names, are amortized over their estimated useful lives. The Company performs an annual impairment assessment for the indefinite lived trade names which had a carrying value of $9,782 and $9,972 at December 31, 2018 and 2017, respectively. In performing this assessment the Company uses an income approach, based primarily on Level 3 inputs, to estimate the fair value of the trade name. The Company records an impairment charge if the carrying value of the trade name exceeds the estimated fair value at the date of assessment.

Intangible assets at December 31, 2018 and 2017 consisted of the following:

 

 

 

 

 

 

 

2018

 

 

2017

 

 

 

Weighted Average

Remaining Useful

Life (years)

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

Trade Names - Indefinite Lived

 

 

 

 

 

$

9,782

 

 

$

 

 

$

9,782

 

 

$

9,972

 

 

$

 

 

$

9,972

 

Trade Names

 

 

6.5

 

 

 

80

 

 

 

(45

)

 

 

35

 

 

 

80

 

 

 

(40

)

 

 

40

 

Customer Relationships

 

 

1.5

 

 

 

39,521

 

 

 

(31,896

)

 

 

7,625

 

 

 

41,043

 

 

 

(27,396

)

 

 

13,647

 

Technology

 

 

5.2

 

 

 

24,980

 

 

 

(12,142

)

 

 

12,838

 

 

 

24,980

 

 

 

(9,590

)

 

 

15,390

 

Patents

 

 

0.0

 

 

 

11,730

 

 

 

(11,730

)

 

 

 

 

 

11,730

 

 

 

(11,730

)

 

 

 

 

 

 

 

 

 

$

86,093

 

 

$

(55,813

)

 

$

30,280

 

 

$

87,805

 

 

$

(48,756

)

 

$

39,049

 

 

Intangible amortization expense was $8,099, $8,378 and $9,277 in 2018, 2017 and 2016, respectively. Estimated annual amortization expense for intangible assets with finite lives for the next five years is: $7,571 in 2019; $4,819 in 2020; $2,278 in 2021; $2,278 in 2022 and $2,278 in 2023.

v3.10.0.1
Disposal of Businesses
12 Months Ended
Dec. 31, 2018
Discontinued Operations And Disposal Groups [Abstract]  
Disposal of Businesses

5.  Disposal of Businesses

On December 18, 2017, the Company, collectively with its wholly owned subsidiary, Myers Holdings Brasil, Ltda. (“Holdings”), completed the sale of its subsidiaries, Myers do Brasil Embalagens Plasticas Ltda. and Plasticos Novel do Nordeste Ltda. (collectively, the “Brazil Business”), to Novel Holdings – Eireli (“Buyer”), an entity controlled by a member of the Brazil Business’ management team.  The divestiture of the Brazil Business will allow the Company to focus resources on its core businesses and additional growth opportunities. The Brazil Business is a leading designer and manufacturer of reusable plastic shipping containers, plastic pallets, crates and totes used for closed-loop shipping and storage in Brazil’s automotive, distribution, food, beverage and agriculture industries. The sale of the Brazil Business included manufacturing facilities and offices located in Lauro de Freitas City, Bahia, Brazil; Ibipora, Parana, Brazil; and Jaguarinuna, Brazil. The Brazil Business was part of the Company’s Material Handling Segment.

 

Pursuant to the terms of the Quota Purchase Agreement by and among the Company, Holdings and Buyer (the “Purchase Agreement”), the Buyer paid a purchase price of one U.S. Dollar to the Company and has assumed all liabilities and obligations of the Brazil Business, whether arising prior to or after the closing of the transaction. There are no additional amounts due, or to be settled, under the terms of the Purchase Agreement with the Buyer. The Company recorded a loss on the sale of the Brazil Business during the fourth quarter of 2017 of $35.0 million, which included $1.2 million of cash held by the Brazil Business and approximately $0.3 million of costs to sell. In addition, the Company recorded a U.S. tax benefit of approximately $15 million as a result of a worthless stock deduction related to the Company’s investment in the Brazil Business. As a result of the Company’s U.S. Federal income tax filings in 2018, the Company reduced this estimated tax benefit by $0.7 million and recognized this adjustment within net loss from discontinued operations.

The Company has agreed to be the guarantor under a factoring arrangement between the Buyer and Banco Alfa de Investimento S.A. until December 31, 2019 for up to $7 million, in the event the Buyer is unable to meet its obligations under this arrangement. The Company also holds a first lien against certain machinery and equipment, exercisable only upon default by the Buyer under the guaranty. Based on the nature of the guaranty, as well as the existence of the lien, the Company believes the fair value of the guaranty is immaterial (based primarily on Level 3 inputs), and thus has recorded no liability related to this guaranty in the Consolidated Statement of Financial Position. This guaranty also creates a variable interest to the Company in the Brazil Business. Based on the terms of the transaction and the fact that the Company has no management involvement or voting interests in the Brazil Business following the sale, the Company does not have any power to direct the significant activities of the Brazil Business, and is thus not the primary beneficiary.

During the second quarter of 2014, the Company’s Board of Directors approved the commencement of the sale process to divest its Lawn and Garden business to allow it to focus resources on its core growth platforms. The business was sold February 17, 2015 to an entity controlled by Wingate Partners V, L.P. (“L&G Buyer”), a private equity firm, for $110 million, subject to a working capital adjustment of approximately $4.0 million paid to the L&G Buyer in 2016. The terms of the agreement included a $90 million cash payment and promissory notes totaling $20 million that mature in August 2020 with a 6% interest rate, with approximately $8.6 million placed in escrow that was due to be settled by August 2016. The release of these funds had been extended pending the resolution of indemnification claims, as further described in Note 11. In April 2018, the Company reached agreement on the material terms of a settlement, and, as a result, recorded a pre-tax charge of $1.225 million to discontinued operations in 2018. The settlement was finalized and paid in May 2018, and upon settlement and release of any further obligation on behalf of the Company, the remaining $7.4 million was released from escrow to the Company.

During the third quarter of 2018, management of the Lawn and Garden business, now named HC Companies, Inc. (“HC”), requested an extension to the maturity of the notes as part of an effort to restructure their debt. The Company believes there is uncertainty about the ability to collect on the notes and corresponding accrued interest. The fair market value of the notes at the date of the sale was $17.8 million. The fair value of the notes receivable was calculated using Level 2 inputs as defined in Note 1. The carrying value of the notes as of December 31, 2018 and 2017 was $19.1 million and $18.7 million, respectively, which represents the fair value at the date of sale plus accretion. As a result of the uncertainty regarding the ability to collect on the notes and corresponding accrued interest, the Company recorded a provision for expected loss of $23.0 million within continuing operations to Other Expenses in the Consolidated Statements of Operations during the third quarter of 2018 based on the carrying value of the notes and corresponding accrued interest. Interest income on the notes receivable was $1.0 million, $1.3 million, and $1.3 million during the years ended December 31, 2018, 2017 and 2016 and was recognized based on the stated interest rate above. The Company ceased recognizing interest income following the recording of the provision noted above.

In connection with the financial risk described above with HC, the Company further assessed its potential obligations under a lease guarantee granted as part of the sale of the Lawn and Garden business. Refer to Note 11 for further information with regards to this obligation.

Summarized selected financial information for discontinued operations for the years ended December 31, 2018, 2017 and 2016 are presented in the following table:

 

 

 

 

 

For the Year Ended December 31,

 

 

 

 

 

2018

 

 

2017*

 

 

2016

 

Net sales

 

 

 

$

 

 

$

29,976

 

 

$

23,683

 

Cost of sales

 

 

 

 

 

 

 

25,359

 

 

 

20,941

 

Selling, general, and administrative

 

 

 

 

1,348

 

 

 

6,748

 

 

 

5,438

 

(Gain) loss on disposal of assets

 

 

 

 

 

 

 

(32

)

 

 

226

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

8,545

 

Interest income, net

 

 

 

 

 

 

 

(286

)

 

 

(469

)

Gain (loss) on the disposal of the discontinued operations

 

 

 

 

 

 

 

(34,956

)

 

 

 

Loss from discontinued operations before income tax

 

 

 

 

(1,348

)

 

 

(36,769

)

 

 

(10,998

)

Income tax expense (benefit)

 

 

 

 

353

 

 

 

(16,036

)

 

 

(731

)

Loss from discontinued operations, net of income tax

 

 

 

$

(1,701

)

 

$

(20,733

)

 

$

(10,267

)

 

*

Includes Brazil Business operating results through December 18, 2017.

 

Net cash flows provided by discontinued operations in 2018 resulted from the payment of expenses related to the sale of the Brazil Business, the payment of the settlement with the L&G Buyer noted above and partial receipt of the tax benefit from the worthless stock deduction related to the Brazil Business. The worthless stock deduction allowed the Company to reduce its estimated U.S. federal tax payments in 2018 by $4.3 million.

v3.10.0.1
Net Income (Loss) Per Common Share
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Net Income (Loss) Per Common Share

 

6.  Net Income (Loss) Per Common Share

Net income (loss) per common share, as shown on the accompanying Consolidated Statements of Operations, is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Weighted average common shares outstanding basic

 

 

33,426,855

 

 

 

30,222,289

 

 

 

29,750,378

 

Dilutive effect of stock options and restricted stock

 

 

 

 

 

340,357

 

 

 

217,534

 

Weighted average common shares outstanding diluted

 

 

33,426,855

 

 

 

30,562,646

 

 

 

29,967,912

 

 

Due to the net loss for the year ended December 31, 2018, diluted weighted-average shares outstanding are equal to basic weighted-average shares outstanding because the effect of all equity awards is anti-dilutive. Options to purchase 242,500 and 551,761 shares of common stock that were outstanding at December 31, 2017 and 2016, respectively, were not included in the computation of diluted earnings per share as the exercise prices of these options was greater than the average market price of common shares, and were therefore anti-dilutive.

v3.10.0.1
Restructuring
12 Months Ended
Dec. 31, 2018
Restructuring And Related Activities [Abstract]  
Restructuring

7.  Restructuring

The charges related to various restructuring programs implemented by the Company are included in cost of sales and selling, general and administrative (“SG&A”) expenses depending on the type of cost incurred. The restructuring charges recognized in the years ended 2018, 2017 and 2016 are presented in the following table.  

 

 

 

 

2018

 

 

2017

 

 

2016

 

Segment

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

Distribution

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Material Handling

 

 

 

119

 

 

 

 

 

 

119

 

 

 

7,389

 

 

 

164

 

 

 

7,553

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

$

119

 

 

$

 

 

$

119

 

 

$

7,389

 

 

$

164

 

 

$

7,553

 

 

$

 

 

$

 

 

$

 

 

On March 9, 2017, the Company announced a restructuring plan (the “Plan”) to improve the Company’s organizational structure and operational efficiency within the Material Handling Segment, which related primarily to anticipated facility shutdowns and associated activities.  Total restructuring costs incurred related to the Plan were approximately $7.7 million, which includes employee severance and other employee-related costs of approximately $3.1 million, $2.6 million related to equipment relocation and facility shut down costs and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment, of approximately $2.0 million.

All actions under the Plan are completed. The Company incurred $0.1 million and $7.6 million of restructuring charges associated with the activities under the Plan during the years ended December 31, 2018 and 2017, respectively.

The table below summarizes restructuring activity for the years ended December 31, 2018 and 2017:

 

 

 

Employee

Reduction

 

 

Accelerated

Depreciation

 

 

Other Exit Costs

 

 

Total

 

Balance at January 1, 2017

 

$

 

 

$

 

 

$

 

 

$

 

Charges to expense

 

 

3,022

 

 

 

1,993

 

 

 

2,538

 

 

 

7,553

 

Cash payments

 

 

(1,924

)

 

 

 

 

 

(2,448

)

 

 

(4,372

)

Non-cash utilization

 

 

 

 

 

(1,993

)

 

 

 

 

 

(1,993

)

Balance at December 31, 2017

 

$

1,098

 

 

$

 

 

$

90

 

 

$

1,188

 

Charges to expense

 

 

31

 

 

 

16

 

 

 

72

 

 

 

119

 

Cash payments

 

 

(1,099

)

 

 

 

 

 

(162

)

 

 

(1,261

)

Non-cash utilization

 

 

 

 

 

(16

)

 

 

 

 

 

(16

)

Balance at December 31, 2018

 

$

30

 

 

$

 

 

$

 

 

$

30

 

 

In addition to the restructuring costs noted above, the Company also incurred other associated costs of the Plan of $1.1 million for the year ended December 31, 2017, of which $0.1 million is included in cost of sales and $1.0 is included in general and administrative expenses in the accompanying Consolidated Statements of Operations, and are primarily related to third party consulting costs. No such costs were incurred for the year ended December 31, 2018.

 

For the years ended December 31, 2018 and 2017, the Company recognized gains of $0.2 million and $3.9 million, respectively, on asset dispositions in connection with the planned facility closures under the Plan.

v3.10.0.1
Other Liabilities
12 Months Ended
Dec. 31, 2018
Other Liabilities Disclosure [Abstract]  
Other Liabilities

8.  Other Liabilities

The balance in other current liabilities is comprised of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Customer deposits and accrued rebates

 

$

3,365

 

 

$

3,102

 

Dividends payable

 

 

5,260

 

 

 

4,478

 

Accrued litigation, claims and professional fees

 

 

460

 

 

 

417

 

Current portion of environmental reserves

 

 

1,229

 

 

 

1,322

 

Other accrued expenses

 

 

6,387

 

 

 

6,153

 

 

 

$

16,701

 

 

$

15,472

 

 

The balance in other liabilities (long-term) is comprised of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Lease guarantee contingency

 

$

10,402

 

 

$

 

Environmental reserves

 

 

3,702

 

 

 

3,814

 

Supplemental executive retirement plan liability

 

 

2,026

 

 

 

2,416

 

Pension liability

 

 

1,207

 

 

 

1,318

 

Deferred gain on sale of assets

 

 

1,237

 

 

 

 

Other long-term liabilities

 

 

1,220

 

 

 

688

 

 

 

$

19,794

 

 

$

8,236

 

 

v3.10.0.1
Stock Compensation
12 Months Ended
Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Compensation

 


9.  Stock Compensation

The Company’s Amended and Restated 2017 Incentive Stock Plan (the “2017 Plan”) authorizes the Compensation Committee of the Board of Directors to issue up to 5,126,950 shares of various stock awards including stock options, performance-based restricted stock units, restricted stock units and other forms of equity-based awards to key employees and directors. Options granted and outstanding vest over the requisite service period and expire ten years from the date of grant.

The following tables summarize stock option activity in the past three years:

Options granted in 2018, 2017 and 2016 were as follows:

 

Year

 

Options

 

 

Exercise

Price

 

2018

 

 

255,072

 

 

$

21.30

 

2017

 

 

397,759

 

 

$

14.30

 

2016

 

 

271,350

 

 

$

11.62

 

 

Options exercised in 2018, 2017 and 2016 were as follows:

 

Year

 

Options

 

 

Exercise

Price

2018

 

 

191,169

 

 

$9.97 to $20.93

2017

 

 

375,292

 

 

$9.97 to $20.93

2016

 

 

334,836

 

 

$9.00 to $14.77

 

In addition, options totaling 86,411, 218,130 and 162,565 expired or were forfeited during the years ended December 31, 2018, 2017 and 2016, respectively.

Options outstanding and exercisable at December 31, 2018, 2017 and 2016 were as follows:

 

Year

 

Outstanding

 

 

Range of Exercise

Prices

 

Exercisable

 

 

Weighted Average

Exercise Price

 

2018

 

 

965,659

 

 

$10.10 to $21.30

 

 

521,202

 

 

$

16.08

 

2017

 

 

988,167

 

 

$9.97 to $20.93

 

 

539,993

 

 

$

16.23

 

2016

 

 

1,183,830

 

 

$9.97 to $20.93

 

 

934,898

 

 

$

14.88

 

 

The fair value of options granted is estimated using an option pricing model based on the assumptions set forth in the following table. The Company uses historical data to estimate employee exercise and departure behavior. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and through the expected term. The dividend yield rate is based on the Company’s historical dividend yield. The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole. The Company used the binomial lattice option pricing model based on the assumptions set forth in the following table.

 

 

 

2018

 

 

2017

 

 

2016

 

Risk free interest rate

 

 

2.90

%

 

 

2.50

%

 

 

1.80

%

Expected dividend yield

 

 

2.50

%

 

 

3.80

%

 

 

4.60

%

Expected life of award (years)

 

 

4.00

 

 

 

4.10

 

 

 

8.00

 

Expected volatility

 

 

42.50

%

 

 

50.00

%

 

 

50.00

%

Fair value per option

 

$

6.30

 

 

$

4.47

 

 

$

3.45

 

 

The following table provides a summary of stock option activity for the period ended December 31, 2018:

 

 

 

Shares

 

 

Average

Exercise

Price

 

 

Weighted

Average

Life (in Years)

 

Outstanding at December 31, 2017

 

 

988,167

 

 

$

15.13

 

 

 

 

 

Options granted

 

 

255,072

 

 

 

21.30

 

 

 

 

 

Options exercised

 

 

(191,169

)

 

 

14.30

 

 

 

 

 

Canceled or forfeited

 

 

(86,411

)

 

 

17.65

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

965,659

 

 

 

16.69

 

 

 

7.23

 

Exercisable at December 31, 2018

 

 

521,202

 

 

$

16.08

 

 

 

6.10

 

 

The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The intrinsic value of stock options exercised in 2018, 2017 and 2016 was $1,745, $2,813 and $1,809, respectively.

The following table provides a summary of restricted stock units, including performance-based restricted stock units, and restricted stock activity for the year ended December 31, 2018:

 

 

 

Shares

 

 

Average

Grant-Date

Fair Value

 

Unvested shares at December 31, 2017

 

 

412,650

 

 

 

 

 

Granted

 

 

178,005

 

 

$

21.65

 

Vested

 

 

(104,737

)

 

 

14.09

 

Forfeited

 

 

(62,123

)

 

 

16.94

 

Unvested shares at December 31, 2018

 

 

423,795

 

 

 

 

 

 

Restricted stock units are rights to receive shares of common stock, subject to forfeiture and other restrictions, which vest over a one or three year period. Restricted stock units are considered to be non-vested shares under the accounting guidance for share-based payment and are not reflected as issued and outstanding shares until the restrictions lapse. At that time, the shares are released to the grantee and the Company records the issuance of the shares. Restricted stock awards are valued based on the market price of the underlying shares on the grant date. Compensation expense is recognized on a straight-line basis over the requisite service period. At December 31, 2018, restricted stock awards had vesting periods up through March 2021.

 

 

Included in the December 31, 2018 unvested shares are 268,103 performance-based restricted stock units. The fair value of these awards is calculated using the market price of the underlying common stock on the date of grant. In determining fair value, the Company does not take into account performance-based vesting requirements. For these awards, the performance-based vesting requirements determines the number of shares that ultimately vest, which can vary from 0% to 200% of target depending on the level of achievement of established performance criteria. Compensation expense is recognized over the requisite service period subject to adjustment based on the probable number of shares expected to vest under the performance condition.

 

Stock compensation expense was approximately $4,257, $3,626 and $3,357 for the years ended December 31, 2018, 2017 and 2016, respectively. These expenses are included in general and administrative expenses in the accompanying Consolidated Statements of Operations. Total unrecognized compensation cost related to non-vested share based compensation arrangements at December 31, 2018 was approximately $4,737 which will be recognized over the next three years, as such compensation is earned.

v3.10.0.1
Equity
12 Months Ended
Dec. 31, 2018
Equity [Abstract]  
Equity

10.  Equity

In May 2018, the Company completed a public offering of 4,600,000 shares of its common stock at a price to the public of $18.50 per share. The net proceeds from the offering were approximately $79.5 million, after deducting underwriting discounts and commissions and $0.5 million of offering expenses paid by the Company. The Company used a portion of the net proceeds received from the offering to repay a portion of its outstanding indebtedness during the second quarter of 2018.

v3.10.0.1
Contingencies
12 Months Ended
Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Contingencies

11.  Contingencies

The Company is a defendant in various lawsuits and a party to various other legal proceedings, in the ordinary course of business, some of which are covered in whole or in part by insurance. When a loss arising from these matters is probable and can reasonably be estimated, we record the amount of the estimated loss, or the minimum estimated liability when the loss is estimated using a range, and no point within the range is more probable of occurrence than another. As additional information becomes available, any potential liability related to these matters will be assessed and the estimates will be revised, if necessary.

Based on current available information, management believes that the ultimate outcome of these matters, including those described below, will not have a material adverse effect on our financial position, cash flows or overall trends in our results of operations. However, these matters are subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on the financial position and results of operations of the period in which the ruling occurs, or in future periods.

New Idria Mercury Mine

In September 2015, the U.S. Environmental Protection Agency (“EPA”) informed a subsidiary of the Company, Buckhorn, Inc. (“Buckhorn”) via a notice letter and related documents (the “Notice Letter”) that it considers Buckhorn to be a potentially responsible party (“PRP”) in connection with the New Idria Mercury Mine site (“New Idria Mine”).  New Idria Mining & Chemical Company (“NIMCC”), which owned and/or operated the New Idria Mine through 1976, was merged into Buckhorn Metal Products Inc. in 1981, which was subsequently acquired by Myers Industries in 1987.  As a result of the EPA Notice Letter, Buckhorn and the Company engaged in negotiations with the EPA with respect to a draft Administrative Order of Consent (“AOC”) proposed by the EPA for the Remedial Investigation/Feasibility Study (“RI/FS”) to determine the extent of remediation necessary and the screening of alternatives.

During the fourth quarter of 2018, the Company and the EPA finalized the AOC and related Statement of Work (“SOW”) with regards to the New Idria Mine. The AOC is effective as of November 27, 2018, the date that it was executed by the EPA. The AOC and accompanying SOW document the terms, conditions and procedures for the Company’s performance of the RI/FS. In addition, the AOC requires the Company to provide $2 million of financial assurance to the EPA during the estimated three year life of the RI/FS.  In January 2019, the Company provided this assurance as a letter of credit. The AOC also includes provisions for payment by the Company of the EPA’s costs of oversight of the RI/FS, including a prepayment in the amount of $0.2 million, which was paid in January 2019.

Since October 2011, when New Idria was added to the Superfund National Priorities List by the EPA, the Company has recognized $5.9 million of costs, of which approximately $2.5 million has been paid to date. These costs are comprised primarily of negotiation of the AOC, identification of possible insurance resources and other PRPs, estimates to perform the RI/FS, EPA oversight fees, past cost claims made by the EPA, periodic monitoring, and responses to unilateral administrative orders issued by the EPA. Expenses of $0.2 million, $1.3 million, and $1.0 million were recorded in the years ended December 31, 2018, 2017, and 2016, respectively. All charges related to this claim have been recorded within general and administrative expenses in the Consolidated Statements of Operations.  

As of December 31, 2018 and 2017, the Company had a total reserve of $3.4 million and $3.6 million, respectively, related to the New Idria Mine.  As of December 31, 2018, $0.9 million is classified in Other Current Liabilities and $2.5 million is classified in Other Liabilities on the Consolidated Statements of Financial Position.

It is possible that adjustments to the aforementioned reserves will be necessary as new information is obtained, including after preparation and EPA approval of the work plan for the RI/FS, which is anticipated to occur in the first half of 2019. Estimates of the Company’s liability are based on current facts, laws, regulations and technology. Estimates of the Company’s environmental liabilities are further subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluation and cost estimates, the extent of remedial actions that may be required, the extent of oversight by the EPA, the number and financial condition of other PRPs that may be named as well as the extent of their responsibility for the remediation, and the availability of insurance coverage for these expenses.

At this time, we have not accrued for remediation costs in connection with this site as we are unable to estimate the liability, given the circumstances referred to above, including the fact that the final remediation strategy has not yet been determined.

New Almaden Mine (formerly referred to as Guadalupe River Watershed)

A number of parties, including the Company and its subsidiary, Buckhorn (as successor to NIMCC), were alleged by trustee agencies of the United States and the State of California to be responsible for natural resource damages due to environmental contamination of areas comprising the historical New Almaden mercury mines located in the Guadalupe River Watershed region in Santa Clara County, California (“County”). In 2005, Buckhorn and the Company, without admitting liability or chain of ownership of NIMCC, resolved the trustees’ claim against them through a consent decree that required them to contribute financially to the implementation by the County of an environmentally beneficial project within the impacted area.  Buckhorn and the Company negotiated an agreement with the County, whereby Buckhorn and the Company agreed to reimburse one-half of the County’s costs of implementing the project, originally estimated to be approximately $1.6 million. As a result, in 2005, the Company recognized expense of $0.8 million representing its share of the initial estimated project costs, of which approximately $0.5 million has been paid to date. In April 2016, the Company was notified by the County that the original cost estimate may no longer be appropriate due to expanded scope and increased costs of construction, and provided a revised estimate of between $3.3 million and $4.4 million.  The Company completed a detailed review of the support provided by the County for the revised estimate, and as a result, recognized additional expense of $1.2 million in 2016.  As of December 31, 2018 and 2017, the Company has a total reserve of $1.5 million related to the New Almaden Mine. As of December 31, 2018, $0.3 million is classified in Other Current Liabilities and $1.2 million is classified in Other Liabilities on the Consolidated Statements of Financial Position. All charges related to this claim have been recorded with general and administrative expenses in the Consolidated Statements of Operations.

The project has not yet been implemented though significant work on design and planning has been performed. The Company is currently awaiting notice from Santa Clara County on the expected timing of fieldwork to commence.  As work on the project occurs, it is possible that adjustments to the aforementioned reserves will be necessary to reflect new information.  In addition, the Company may have claims against and defenses to claims by the County under the 2005 agreement that could reduce or offset its obligation for reimbursement of some of these potential additional costs. With the assistance of environmental consultants, the Company will closely monitor this matter and will continue to assess its reserves as additional information becomes available.

Lawn and Garden Indemnification Claim

In connection with the sale of the Lawn and Garden business, as described in Note 5, the Company received Notices of Indemnification Claims in April 2015 and July 2016 (collectively, the “Claims”), alleging breaches of certain representations and warranties under the agreement resulting in alleged losses in the amount of approximately $10 million. As described in Note 5, approximately $8.6 million of the sale proceeds that were placed in escrow were due to be settled in August 2016; however, the release of these funds had been extended pending the resolution of the Claims, which were the subject of a lawsuit in the Delaware Chancery Court.

In April 2018, the Company reached agreement on the material terms of a settlement, and as a result, recorded a pre-tax charge of $1.225 million to discontinued operations in 2018. The settlement agreement was finalized in May 2018, and the settlement amount was funded from the escrow account. In addition, upon settlement and release of any further obligation on behalf of the Company, the remaining $7.4 million was released from escrow to the Company in 2018.  

Lawn and Garden Lease Guarantee

In connection with the sale of the Lawn and Garden business, as described in Note 5, the Company is a guarantor for one of HC’s facility leases expiring in September 2025 for any remaining rent payments under the lease for which HC is unable to meet its obligations. Current annual rent for the facility is approximately $2 million, and is subject to annual CPI increases throughout the lease term. In connection with the financial risk associated with HC, as described in Note 5, the Company assessed its range of potential obligations under the lease guarantee, and as a result of this analysis, recorded a liability and related pre-tax charge of $10.3 million during 2018. The carrying value of the lease obligation as of December 31, 2018 was $10.4 million, which represents the initial liability recorded plus accretion and is included in Other Liabilities on the Consolidated Statements of Financial Position. The related initial charge was recorded to Other Expenses in the Consolidated Statements of Operations.  

Patent Infringement

On December 11, 2018, No Spill Inc. filed suit against Scepter Manufacturing LLC and Scepter Corporation (“Scepter”) in the United States District Court for the District of Kansas asserting infringement of two patents, breach of contract, and trade dress claims in relation to plastic gasoline containers Scepter manufactures and sells in the United States. On December 31, 2018, the parties filed a waiver of service and extension of time to file a response to the complaint. The response to the complaint is due on March 28, 2019. A schedule in the case has not yet issued. Scepter intends to defend itself vigorously in this matter. Due to the inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of this matter, and is unable at this time to determine whether the outcome of the litigation will have a material impact on its results of operations, financial condition, or cash flows. Accordingly, the Company has not currently recorded any reserves for this matter.

v3.10.0.1
Long-Term Debt and Loan Agreements
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Long-Term Debt and Loan Agreements

12.  Long-Term Debt and Loan Agreements

Long-term debt at December 31, 2018 and 2017 consisted of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Loan Agreement

 

$

 

 

$

74,632

 

4.67% Senior Unsecured Notes due 2021

 

 

40,000

 

 

 

40,000

 

5.25% Senior Unsecured Notes due 2024

 

 

11,000

 

 

 

11,000

 

5.30% Senior Unsecured Notes due 2024

 

 

15,000

 

 

 

15,000

 

5.45% Senior Unsecured Notes due 2026

 

 

12,000

 

 

 

12,000

 

 

 

 

78,000

 

 

 

152,632

 

Less unamortized deferred financing costs

 

 

1,210

 

 

 

1,596

 

 

 

$

76,790

 

 

$

151,036

 

 

In March 2017, the Company entered into a Fifth Amended and Restated Loan Agreement (the “Loan Agreement”).  The Loan Agreement replaced the pre-existing $300 million senior revolving credit facility with a $200 million facility and extended the term from December 2018 to March 2022.  

Under the terms of the Loan Agreement, the Company may borrow up to $200 million, reduced for letters of credit issued. As of December 31, 2018, the Company had $195.6 million available under the Loan Agreement. The Company had $4.4 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business at December 31, 2018. In addition, as described in Note 11, the Company issued an additional letter of credit of $2 million in January 2019. Borrowings under the Loan Agreement bear interest at the LIBOR rate, prime rate, federal funds effective rate, the Canadian deposit offered rate, or the eurocurrency reference rate depending on the type of loan requested by the Company, in each case plus the applicable margin as set forth in the Loan Agreement.

The Company’s Senior Unsecured Notes (“Notes”) range in face value from $11 million to $40 million, with interest rates ranging from 4.67% to 5.45%, payable semiannually, and maturing between 2021 and 2026. In September 2017, the Company made an offer to all holders of the $100 million Notes to purchase all or a portion of the Notes prior to their maturity dates. In October 2017, one note holder accepted the offer and elected to tender $22 million in Notes. The Company purchased the Notes from the holder on October 31, 2017 for approximately $23.8 million, which includes the outstanding principal balance of $22.0 million and a make-whole premium of $1.8 million. A loss on extinguishment of debt of approximately $1.9 million was recorded during 2017, which consisted of the make-whole premium plus unamortized deferred financing costs of $0.1 million.

Amortization expense of the deferred financing costs was $386, $508, and $466 for the years ended December 31, 2018, 2017 and 2016, respectively, and is included in interest expense in the Consolidated Statements of Operations.

The average interest rate on borrowings under our loan agreements were 5.75% for 2018, 4.94% for 2017, and 4.69% for 2016, which includes a quarterly facility fee on the used and unused portion.


As of December 31, 2018, the Company was in compliance with all of its debt covenants associated with its Loan Agreement and Notes. The most restrictive financial covenants for all of the Company’s debt are an interest coverage ratio (defined as earnings before interest, taxes, depreciation and amortization, as adjusted, divided by interest expense) and a leverage ratio (defined as total debt divided by earnings before interest, taxes, depreciation and amortization, as adjusted). The ratios as of December 31, 2018 are shown in the following table:

 

 

 

Required Level

 

Actual Level

 

Interest Coverage Ratio

 

3.00 to 1 (minimum)

 

 

11.60

 

Leverage Ratio

 

3.25 to 1 (maximum)

 

 

1.15

 

 

v3.10.0.1
Income Taxes
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

13.  Income Taxes

The effective tax rate from continuing operations was 218.7% in 2018, 31.0% in 2017 and 39.5% in 2016. A reconciliation of the Federal statutory income tax rate to the Company’s effective tax rate is as follows:

 

  

 

Percent of Income before

Income Taxes

 

 

 

2018

 

 

2017

 

 

2016

 

Statutory Federal income tax rate

 

 

21.0

%

 

 

35.0

%

 

 

35.0

%

State income taxes - net of Federal tax benefit

 

 

42.5

 

 

 

8.3

 

 

 

3.0

 

Foreign tax rate differential

 

 

3.9

 

 

 

(1.6

)

 

 

(0.9

)

Domestic production deduction

 

 

 

 

 

(5.2

)

 

 

(3.2

)

Non-deductible expenses

 

 

93.8

 

 

 

0.4

 

 

 

2.9

 

Impact of tax law changes

 

 

22.1

 

 

 

(7.4

)

 

 

 

Changes in unrecognized tax benefits

 

 

42.9

 

 

 

0.9

 

 

 

(0.8

)

Foreign tax incentives

 

 

(3.1

)

 

 

 

 

 

(0.4

)

Valuation allowances

 

 

 

 

 

 

 

 

3.2

 

Other

 

 

(4.4

)

 

 

0.6

 

 

 

0.7

 

Effective tax rate for the year

 

 

218.7

%

 

 

31.0

%

 

 

39.5

%

 

Income from continuing operations before income taxes was attributable to the following sources:

 

 

 

2018

 

 

2017

 

 

2016

 

United States

 

$

419

 

 

$

12,979

 

 

$

17,010

 

Foreign

 

 

970

 

 

 

2,729

 

 

 

1,709

 

Totals

 

$

1,389

 

 

$

15,708

 

 

$

18,719

 

 

Income tax expense (benefit) from continuing operations consisted of the following:

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

Federal

 

$

9,694

 

 

$

(7,910

)

 

$

6,304

 

 

$

(4,394

)

 

$

5,684

 

 

$

(413

)

Foreign

 

 

1,218

 

 

 

(718

)

 

 

1,821

 

 

 

(883

)

 

 

515

 

 

 

741

 

State and local

 

 

1,575

 

 

 

(822

)

 

 

2,402

 

 

 

(386

)

 

 

641

 

 

 

227

 

 

 

$

12,487

 

 

$

(9,450

)

 

$

10,527

 

 

$

(5,663

)

 

$

6,840

 

 

$

555

 

 

 


On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Tax Act”). Effective January 1, 2018, the Tax Act established a corporate income tax rate of 21%, replacing the former 35% rate, and created a territorial tax system rather than a worldwide system, which generally eliminated the U.S. federal income tax on dividends from foreign subsidiaries. The transition to the territorial system included a one-time deemed repatriation transition tax (“Transition Tax”) on certain foreign earnings previously untaxed in the United States. In response to the complexities and timing of issuance of the Tax Act, the SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) which provided up to a one-year measurement period for companies to finalize the accounting for the impacts of this new legislation. As required, the Company finalized its accounting during 2018 for items previously considered provisional. At December 31, 2017, the Company recorded an initial provisional net benefit to income tax expense of $1.2 million related to the enactment of the Tax Act. This net benefit included a provisional deferred tax benefit of $3.0 million related to revaluing the net U.S. deferred tax liabilities to reflect the lower U.S. corporate tax rate. The deferred tax benefit was offset by a provision of $1.8 million related to the Transition Tax. In general, the Transition Tax imposed by the Tax Act results in the taxation of foreign earnings and profits (“E&P”) at a 15.5% rate on liquid assets and 8% on the remaining unremitted foreign E&P, both net of foreign tax credits. The provisional amounts for the Transition Tax recorded by the Company in 2017 included the undistributed E&P for all the Company’s foreign subsidiaries. Based on the finalized accounting and preparation of the Company’s 2017 U.S. Federal Tax Return, the Company recorded a reduction of income tax expense of $0.3 million for the year ended December 31, 2018 to reflect adjustments to the previously recognized provisional amounts under the Tax Act. In addition, the Company recorded income tax expense of $0.6 million associated with an uncertain tax position related to the calculation of the Transition Tax included in the 2017 return.

During 2018, the Company recorded a provision and related deferred tax liability of $0.6 million related to the earnings of the Company’s subsidiary in Guatemala, which were deemed by management to no longer be permanently reinvested. As noted above, the E&P for all foreign subsidiaries has been previously included in the calculation of the Transition Tax, and thus, should there be a repatriation of earnings from any other foreign subsidiaries in future periods, the Company expects to be subject to only foreign withholding tax. Management does not currently anticipate a repatriation of earnings from any foreign subsidiaries, except as provided above, as these earnings are deemed to be permanently reinvested.

 

Significant components of the Company’s deferred taxes as of December 31, 2018 and 2017 are as follows:

 

 

 

2018

 

 

2017

 

Deferred income tax assets

 

 

 

 

 

 

 

 

Compensation

 

 

2,774

 

 

 

3,030

 

Inventory valuation

 

 

695

 

 

 

502

 

Allowance for uncollectible accounts

 

 

237

 

 

 

268

 

Provision for loss on note receivable

 

 

5,031

 

 

 

 

Non-deductible accruals

 

 

4,196

 

 

 

2,195

 

Non-deductible intangibles

 

 

1,574

 

 

 

1,193

 

State deferred taxes

 

 

843

 

 

 

 

Capital loss carryforwards

 

 

1,982

 

 

 

1,982

 

Net operating loss carryforwards

 

 

 

 

 

405

 

 

 

 

17,332

 

 

 

9,575

 

Valuation allowance

 

 

(1,982

)

 

 

(1,982

)

 

 

 

15,350

 

 

 

7,593

 

Deferred income tax liabilities

 

 

 

 

 

 

 

 

Property, plant and equipment

 

$

4,247

 

 

$

6,255

 

Tax-deductible goodwill

 

 

5,089

 

 

 

5,202

 

State deferred taxes

 

 

 

 

 

132

 

Other

 

 

744

 

 

 

149

 

 

 

 

10,080

 

 

 

11,738

 

Net deferred income tax asset (liability)

 

$

5,270

 

 

$

(4,145

)

 


ASC 740, Income Taxes, requires that deferred tax assets be reduced by a valuation allowance, if based on all available evidence, it is more likely than not that the deferred tax asset will not be realized. Available evidence includes the reversal of existing taxable temporary differences, future taxable income exclusive of temporary differences, taxable income in carryback years and tax planning strategies. Based on the current available evidence, the Company considers the net deferred tax asset at December 31, 2018 to be fully realizable except for the deferred tax asset related to the capital loss carryforward described below.

As further discussed in Note 5, the Company sold its investments in certain Brazilian subsidiaries on December 18, 2017. In connection with this divestiture, the Company incurred a capital loss of $9.5 million on its investment in the Myers do Brazil business and recorded a deferred tax asset of $2.0 million as the result of this capital loss carryforward. A valuation allowance of $2.0 million has been recorded against this deferred tax asset as the recovery of the asset is not more likely than not as of December 31, 2018. In addition, in accordance with ASC 740, for the year ended December 31, 2016 the Company allocated $0.6 million of a valuation allowance related to the Brazil Business to income from continuing operations in the Consolidated Statement of Operations, as this valuation allowance related to the change in estimated realizability of the beginning of the year net deferred tax asset in the Brazil Business.

The Company recorded a tax benefit of approximately $15 million generated as a result of a worthless stock deduction for the Novel do Nordeste business included in the divestiture. Although management believes that the worthless stock deduction is valid, there can be no assurance that the IRS will not challenge it and, if challenged, that the Company will prevail. This tax benefit is included in the net loss from discontinued operations in the Consolidated Statements of Operations for the year ended December 31, 2017. As a result of the Company’s U.S. Federal income tax filings in 2018, the Company reduced this estimated tax benefit by $0.7 million and recognized this adjustment within net loss from discontinued operations.

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

 

 

 

2018

 

 

2017

 

 

2016

 

Balance at January 1

 

$

359

 

 

$

478

 

 

$

151

 

Increases related to previous year tax positions

 

 

596

 

 

 

359

 

 

 

478

 

Reductions due to lapse of applicable statute of limitations

 

 

 

 

 

(478

)

 

 

(151

)

Reduction due to settlements

 

 

 

 

 

 

 

 

 

Balance at December 31

 

$

955

 

 

$

359

 

 

$

478

 

 

The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $1.0 million, $0.4 million and $0.5 million at December 31, 2018, 2017 and 2016.  

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns.  As of December 31, 2018, the Company is no longer subject to U.S. Federal examinations by tax authorities for tax years before 2015. The Company is subject to state and local examinations for tax years of 2013 through 2017. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2013 through 2017.

v3.10.0.1
Retirement Plans
12 Months Ended
Dec. 31, 2018
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

14.  Retirement Plans

The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s defined benefit pension plan, The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02, provides benefits primarily based upon a fixed amount for each year of service. The plan was frozen in 2007, and thus benefits for service were no longer accumulated after this date.

 


Net periodic pension cost for the years ended December 31, 2018, 2017 and 2016 was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Interest cost

 

$

224

 

 

$

253

 

 

$

270

 

Expected return on assets

 

 

(317

)

 

 

(295

)

 

 

(319

)

Amortization of net loss

 

 

84

 

 

 

96

 

 

 

82

 

Net periodic pension cost

 

$

(9

)

 

$

54

 

 

$

33

 

 

The reconciliation of changes in projected benefit obligations are as follows:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

Projected benefit obligation at beginning of year

 

$

6,579

 

 

$

6,503

 

Interest cost

 

 

224

 

 

 

253

 

Actuarial loss (gain)

 

 

(362

)

 

 

276

 

Expenses paid

 

 

(135

)

 

 

(84

)

Benefits paid

 

 

(362

)

 

 

(369

)

Projected benefit obligation at end of year

 

$

5,944

 

 

$

6,579

 

Accumulated benefit obligation at end of year

 

$

5,944

 

 

$

6,579

 

 

The assumptions used to determine the net periodic benefit cost and benefit obligations are as follows:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Discount rate for net periodic pension cost

 

 

3.50

%

 

 

4.00

%

 

 

4.30

%

Discount rate for benefit obligations

 

 

4.20

%

 

 

3.50

%

 

 

4.00

%

Expected long-term return of plan assets

 

 

7.50

%

 

 

7.75

%

 

 

7.75

%

 

The expected long-term rate of return assumption is based on the actual historical rate of return on assets adjusted to reflect recent market conditions and future expectations consistent with the Company’s current asset allocation and investment policy. In the current year, the Company’s asset allocation and investment policy transitioned from a total-return strategy to a liability-driven strategy. This revised policy shifts from equities and market duration fixed income and into fixed income investments that are managed to match the duration of the underlying pension liability. The assumed discount rates represent long-term high quality corporate bond rates commensurate with the liability duration of the plan.

The following table reflects the change in the fair value of the plan’s assets:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

Fair value of plan assets at beginning of year

 

$

5,261

 

 

$

5,183

 

Actual return on plan assets

 

 

(27

)

 

 

531

 

Company contributions

 

 

 

 

 

 

Expenses paid

 

 

(135

)

 

 

(84

)

Benefits paid

 

 

(362

)

 

 

(369

)

Fair value of plan assets at end of year

 

$

4,737

 

 

$

5,261

 

 

The fair value of plan assets as of December 31, 2018 consist of mutual funds valued at $2,352 and pooled separate accounts valued at $2,385. The mutual funds were categorized as Level 1 and were determined based on period end, closing quoted prices in active markets. The pooled separate accounts are measured at net asset value as a practical expedient to estimate fair value and are not classified in the fair value hierarchy as of December 31, 2018. Each of the pooled separate accounts invest in multiple fixed securities and provide for daily redemptions by the plan with no advance notice requirements, and have redemption prices that are determined by the fund’s net asset value per unit with no redemption fees.

The fair value of plan assets as of December 31, 2017, which consisted mainly of mutual funds, were all categorized as Level 1 and were determined based on period end closing, quoted prices in active markets.

The weighted average asset allocations at December 31, 2018 and 2017 were as follows:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

U.S. Equities securities

 

 

50

%

 

 

72

%

U.S. Debt securities

 

 

50

%

 

 

24

%

Cash

 

 

 

 

 

4

%

Total

 

 

100

%

 

 

100

%

 

The following table provides a reconciliation of the funded status of the plan at December 31, 2018 and 2017:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

Projected benefit obligation

 

$

5,944

 

 

$

6,579

 

Plan assets at fair value

 

 

4,737

 

 

 

5,261

 

Funded status

 

$

(1,207

)

 

$

(1,318

)

 

The funded status shown above is included in Other Liabilities in the Company’s Consolidated Statements of Financial Position at December 31, 2018 and 2017. The Company expects to make a contribution to the plan of $30 in 2019.

Benefit payments projected for the plan are as follows:

 

2019

 

$

372

 

2020

 

 

376

 

2021

 

 

377

 

2022

 

 

374

 

2023

 

 

374

 

2024-2028

 

 

1,889

 

 

The Myers Industries Profit Sharing and 401(k) Plan is maintained for the Company’s U.S. based employees, not covered under defined benefit plans, who have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of $2,216, $2,302 and $2,324 in 2018, 2017 and 2016, respectively.

In addition, the Company has a Supplemental Executive Retirement Plan (“SERP”) to provide certain participating senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Expense related to the SERP was approximately $33, $128 and $192 for the years ended December 2018, 2017 and 2016, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 4.2% at December 31, 2018 and 3.5% at December 31, 2017. The SERP liability was approximately $2,449 and $2,923 at December 31, 2018 and 2017, respectively, and is included in Accrued Employee Compensation and Other Liabilities on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.

v3.10.0.1
Leases
12 Months Ended
Dec. 31, 2018
Leases [Abstract]  
Leases

15.  Leases

The Company and certain of its subsidiaries are committed under non-cancelable operating leases involving certain facilities and equipment. Aggregate rental expense for all leased assets was $3,312, $3,198 and $3,625 for the years ended December 31, 2018, 2017 and 2016, respectively.

Future minimum rental commitments are as follows:

 

Year Ended December 31,

 

 

 

 

2019

 

$

2,492

 

2020

 

 

1,739

 

2021

 

 

982

 

2022

 

 

966

 

2023

 

 

841

 

Thereafter

 

 

811

 

Total

 

$

7,831

 

 

On February 27, 2018, the Company completed a sale-leaseback transaction for its distribution center in Pomona, California for a net purchase price of $2.3 million. The Company realized a gain on the sale of $2.0 million, of which $0.7 million was recognized at the time of the sale. The remaining $1.3 million is being recognized ratably over the term of the ten-year lease at approximately $0.1 million per year. Simultaneous with the closing of the sale, the Company entered into a ten-year operating lease arrangement with base annual rent of approximately $0.1 million during the first year, followed by annual increases of 3% through the remainder of the lease period. This facility is included in the Company’s Distribution Segment.

v3.10.0.1
Industry Segments
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Industry Segments

16.  Industry Segments

Using the criteria of ASC 280, Segment Reporting, the Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which our Chief Operating Decision Maker evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated.  These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up.

The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products and rotationally-molded plastic tanks for water, fuel and waste handling. This segment conducts its primary operations in the United States and Canada. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer, and others. Products are sold both directly to end-users and through distributors.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive undervehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment operates domestically through its sales offices and four regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, auto dealers, general service and repair centers, tire retreaders, and government agencies.

Total sales from foreign business units were approximately $50.6 million, $53.9 million, and $64.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Total export sales to countries outside the U.S. were approximately $19.6 million, $17.2 million, and $18.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. Sales made to customers in Canada accounted for approximately 4.1% of total net sales in 2018, 2.4% in 2017 and 4.6% in 2016. There are no other individual foreign countries for which sales are material. Long-lived assets in foreign countries, primarily in Canada, consisted of property, plant and equipment, and were approximately $14.1 million at December 31, 2018 and $17.6 million at December 31, 2017.

 

 

2018

 

 

2017

 

 

2016

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

417,199

 

 

$

391,313

 

 

$

363,956

 

Distribution

 

149,636

 

 

 

156,428

 

 

 

170,660

 

Inter-company sales

 

(100

)

 

 

(698

)

 

 

(237

)

Total net sales

$

566,735

 

 

$

547,043

 

 

$

534,379

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

57,948

 

 

$

38,874

 

 

$

40,776

 

Distribution

 

7,441

 

 

 

9,073

 

 

 

12,834

 

Corporate

 

(59,062

)

 

 

(23,059

)

 

 

(26,248

)

Total operating income

 

6,327

 

 

 

24,888

 

 

 

27,362

 

Interest expense, net

 

(4,938

)

 

 

(7,292

)

 

 

(8,643

)

Loss on extinguishment of debt

 

 

 

 

(1,888

)

 

 

 

Income from continuing operations before income taxes

$

1,389

 

 

$

15,708

 

 

$

18,719

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable Assets

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

229,962

 

 

$

257,863

 

 

$

268,634

 

Distribution

 

48,575

 

 

 

49,822

 

 

 

56,072

 

Corporate

 

70,108

 

 

 

48,257

 

 

 

36,271

 

Discontinued operations

 

 

 

 

 

 

 

20,707

 

Total identifiable assets

$

348,645

 

 

$

355,942

 

 

$

381,684

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Additions, Net

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

4,500

 

 

$

5,165

 

 

$

10,933

 

Distribution

 

587

 

 

 

622

 

 

 

1,424

 

Corporate

 

36

 

 

 

27

 

 

 

132

 

Total capital additions, net

$

5,123

 

 

$

5,814

 

 

$

12,489

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

24,159

 

 

$

28,506

 

 

$

29,270

 

Distribution

 

1,169

 

 

 

1,174

 

 

 

1,221

 

Corporate

 

811

 

 

 

1,151

 

 

 

1,301

 

Total depreciation and amortization

$

26,139

 

 

$

30,831

 

 

$

31,792

 

v3.10.0.1
Subsequent Events (Unaudited)
12 Months Ended
Dec. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events

17.  Subsequent Events (Unaudited)

On March 1, 2019, the Company sold a distribution center in Wadsworth, Ohio for net proceeds of approximately $4.5 million. This facility was classified as an asset held for sale as of December 31, 2018, as discussed in Note 3, and was included in the Company’s Material Handling Segment.

v3.10.0.1
Summarized Quarterly Results of Operations (Notes)
12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Summarized Quarterly Results of Operations

18.  Summarized Quarterly Results of Operations (Unaudited)

 

Quarter Ended 2018

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

Total

 

Net Sales

 

$

152,568

 

 

$

140,560

 

 

$

135,219

 

 

$

138,388

 

 

$

566,735

 

Gross Profit

 

 

47,115

 

 

 

47,991

 

 

 

42,091

 

 

 

42,096

 

 

 

179,293

 

Income (loss) from continuing operations

 

 

7,755

 

 

 

8,608

 

 

 

(21,137

)

 

 

3,126

 

 

 

(1,648

)

Income (loss) from discontinued operations, net

 

 

(911

)

 

 

 

 

 

(2

)

 

 

(788

)

 

 

(1,701

)

Net income (loss)

 

 

6,844

 

 

 

8,608

 

 

 

(21,139

)

 

 

2,338

 

 

 

(3,349

)

Income (loss) per common share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.25

 

 

$

0.26

 

 

$

(0.60

)

 

$

0.09

 

 

$

(0.05

)

Diluted*

 

$

0.25

 

 

$

0.26

 

 

$

(0.60

)

 

$

0.09

 

 

$

(0.05

)

Income (loss) per common share from discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.03

)

 

$

 

 

$

 

 

$

(0.02

)

 

$

(0.05

)

Diluted*

 

$

(0.03

)

 

$

 

 

$

 

 

$

(0.02

)

 

$

(0.05

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.22

 

 

$

0.26

 

 

$

(0.60

)

 

$

0.07

 

 

$

(0.10

)

Diluted*

 

$

0.22

 

 

$

0.26

 

 

$

(0.60

)

 

$

0.07

 

 

$

(0.10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended 2017

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

Total

 

Net Sales

 

$

136,572

 

 

$

135,252

 

 

$

135,113

 

 

$

140,106

 

 

$

547,043

 

Gross Profit

 

 

41,761

 

 

 

38,292

 

 

 

39,143

 

 

 

38,257

 

 

 

157,453

 

Income (loss) from continuing operations (3) (4)

 

 

3,458

 

 

 

2,482

 

 

 

3,083

 

 

 

1,821

 

 

 

10,844

 

Income (loss) from discontinued operations, net (1) (2)

 

 

(344

)

 

 

(489

)

 

 

174

 

 

 

(20,074

)

 

 

(20,733

)

Net income (loss)(1) (2) (3) (4)

 

$

3,114

 

 

$

1,993

 

 

$

3,257

 

 

$

(18,253

)

 

 

(9,889

)

Income (loss) per common share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.12

 

 

$

0.08

 

 

$

0.10

 

 

$

0.06

 

 

$

0.36

 

Diluted*

 

$

0.11

 

 

$

0.08

 

 

$

0.10

 

 

$

0.06

 

 

$

0.35

 

Income (loss) per common share from discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.02

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.66

)

 

$

(0.69

)

Diluted*

 

$

(0.01

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.65

)

 

$

(0.68

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.10

 

 

$

0.07

 

 

$

0.11

 

 

$

(0.60

)

 

$

(0.33

)

Diluted*

 

$

0.10

 

 

$

0.07

 

 

$

0.11

 

 

$

(0.59

)

 

$

(0.33

)

 

 

(1)

A loss on the sale of the Brazil Business of $35 million was recognized during the fourth quarter of 2017. This loss is included in loss from discontinued operations in the accompanying Consolidated Statements of Operations.

(2)

During the quarter ended December 31, 2017, the Company recorded a U.S. tax benefit of approximately $15 million as a result of a worthless stock deduction related to the Company’s investment in the Brazil Business. This benefit is included in loss from discontinued operations in the accompanying Consolidated Statements of Operations.

(3)  

During the quarter ended December 31, 2017, the Company recorded a loss on extinguishment of debt of approximately $1.9 million.

(4)

During the quarter ended December 31, 2017, the Company recorded a net tax benefit of approximately $1.2 million related to the Tax Act

 

*

The sum of the earnings per share for the four quarters in a year does not necessarily equal the total year earnings per share due to the computation of weighted shares outstanding during each respective period.

 

v3.10.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Basis of Presentation

Basis of Presentation

The consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. All subsidiaries that are not wholly owned and are not included in the consolidated operating results of the Company are immaterial investments which have been accounted for under the equity or cost method. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the timing and amount of assets, liabilities, equity, revenues, and expenses recorded and disclosed. Actual results could differ from those estimates.

During the fourth quarter of 2017, the Company completed the sale of certain subsidiaries in Brazil. As further discussed in Note 5, the results of operations and cash flows of these subsidiaries have been classified as discontinued operations in the consolidated financial statements for all periods presented.

Accounting Standards Adopted and Not Yet Adopted

Accounting Standards Adopted

In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, which allowed SEC registrants to record provisional amounts in earnings for the year ended December 31, 2017 due to the complexities involved in accounting for the enactment of the Tax Cuts and Jobs Act. The Company recognized the estimated income tax effects of the Tax Cuts and Jobs Act in its 2017 consolidated financial statements in accordance with SEC Staff Accounting Bulletin No. 118. The Company finalized its accounting in 2018. Refer to Note 13 for further information regarding the provisional amounts recorded by the Company.

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220). This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The new standard also requires certain disclosures about stranded tax effects. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (as further discussed in Note 13) is recognized. The Company early adopted this standard effective January 1, 2018 and as a result of adopting this standard, $0.3 million of stranded tax effects were reclassified from accumulated other comprehensive income to retained earnings in the first quarter of 2018.

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.  This ASU requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  The ASU also allows only the service cost component to be eligible for capitalization when applicable. The ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods.  The ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets.  The Company adopted this standard effective January 1, 2018 and the adoption did not have a material impact on its consolidated financial statements as the pension plan is frozen.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash. This ASU requires that companies include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows.  The ASU should be applied using a retrospective transition method to each period presented and is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company adopted this standard effective January 1, 2018. At adoption, the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the consolidated statements of cash flows did not have a material impact on the Company’s net cash flows in prior years.

In October 2016, the FASB issued ASU 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This ASU requires immediate recognition of the income tax consequences of intercompany asset transfers other than inventory. The ASU is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company adopted this standard effective January 1, 2018, and the adoption of this standard did not have a material impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. Under ASU 2014-09, an entity recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. Additional disclosures are also required to help users of financial statements understand the nature, amount, and timing of revenue and cash flows arising from contracts. The Company adopted the new guidance effective January 1, 2018 using the modified retrospective approach and applied the new guidance to all open contracts at the date of adoption. Adoption of the new standard resulted in changes to the Company’s accounting policy and disclosures related to revenue recognition (refer to Note 2). The impact of adopting this standard on the Company’s consolidated financial statements was not material, and there was no cumulative transition adjustment required.

Accounting Standards Not Yet Adopted

In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted and this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20). This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for annual periods ending after December 15, 2020, with early adoption permitted and should be applied on a retrospective basis to all periods presented. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. This guidance is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted. Certain disclosures in this ASU are required to be applied on a retrospective basis and others on a prospective basis. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.  This ASU eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019.  The guidance allows for early adoption for impairment testing dates after January 1, 2017.  While the Company has elected not to early adopt this guidance and will continue to evaluate the timing of adoption, it does not believe that the adoption of this guidance will have a material impact on its consolidated financial statements unless a goodwill impairment were to occur.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments, which introduces new guidance for the accounting for credit losses on instruments.  The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2019 including interim periods within that reporting period, with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements.


In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet, and disclose key information about the amount, timing and uncertainty of cash flows arising from leasing arrangements. The new standard is effective for the Company beginning January 1, 2019, and must be adopted using either the modified retrospective approach, which requires application of the new guidance at the beginning of the earliest comparative period presented or the optional transition approach, which requires application of the new guidance at the standard’s effective date. The Company will adopt the new guidance effective January 1, 2019 using the optional transition method. The Company is substantially complete with its implementation of the new standard, which included designing and implementing changes to processes, controls and systems, where necessary, to address the requirements of the new standard. Upon adoption, the Company expects to recognize right-of-use assets and lease liabilities in the range of $5.7 million to $6.7 million for substantially all of its operating leases. The remaining undiscounted minimum lease commitments as of December 31, 2018 are summarized in Note 15, Leases. It is not expected that the adoption of this standard will have a material impact on the consolidated results of operations or cash flows. The Company will also record a cumulative-effect adjustment to retained earnings upon adoption to recognize the remaining deferred gain on the sale-leaseback transaction that occurred prior to the date of initial application. Additionally, the standard requires new disclosures related to leases, which the Company is in the process of finalizing.

Translation of Foreign Currencies

Translation of Foreign Currencies

All asset and liability accounts of consolidated foreign subsidiaries are translated at the current exchange rate as of the end of the accounting period and income statement items are translated monthly at an average currency exchange rate for the period. The resulting translation adjustment is recorded in other comprehensive income (loss) as a separate component of shareholders’ equity.

Fair Value Measurement

Fair Value Measurement

The Company follows guidance included in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. The guidance established a common definition for fair value to be applied under U.S. GAAP requiring the use of fair value, established a framework for measuring fair value, and expanded disclosure requirements about such fair value measurements. The guidance did not require any new fair value measurements, but rather applied to all other accounting pronouncements that require or permit fair value measurements. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels:

 

Level 1:

Unadjusted quoted prices in active markets for identical assets or liabilities.

 

Level 2:

Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly.

 

Level 3:

Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions.

Financial assets that are measured at net asset value, which is a practical expedient to estimating fair value, are not classified in the fair value hierarchy.

The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximate carrying value due to the nature and relative short maturity of these assets and liabilities.

The fair value of debt under the Company’s Loan Agreement, as defined in Note 12, approximates carrying value due to the floating rates and relative short maturity (less than 90 days) of the revolving borrowings under this agreement. The fair value of the Company’s fixed rate senior unsecured notes was estimated using market observable inputs for the Company’s comparable peers with public debt, including quoted prices in active markets and interest rate measurements which are considered Level 2 inputs. At December 31, 2018 and 2017, the aggregate fair value of the Company’s outstanding fixed rate senior unsecured notes was estimated at $76.8 million and $78.0 million, respectively.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk primarily consist of trade accounts receivable. The concentration of accounts receivable credit risk is generally limited based on the Company’s diversified operations, with customers spread across many industries and countries. In 2018, there were no customers that accounted for more than ten percent of net sales. Outside of the United States, only customers located in Canada, which account for approximately 4.1% of net sales, are significant to the Company’s operations. In addition, management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for doubtful accounts is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. Additionally, the Company also reviews historical trends for collectability in determining an estimate for its allowance for doubtful accounts. If economic circumstances change substantially, estimates of the recoverability of amounts due the Company could be reduced by a material amount. Expense related to bad debts was approximately $0.7 million, $0.7 million and $0.8 million for 2018, 2017 and 2016, respectively, and is recorded within selling expenses in the Consolidated Statements of Operations. Deductions from the allowance for doubtful accounts, net of recoveries, were approximately $0.5 million, $0.7 million and $0.4 million for 2018, 2017 and 2016, respectively.

Inventories

Inventories

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 30 percent of our inventories are valued using the LIFO method of determining cost. All other inventories are valued at the FIFO method of determining cost.

 

Inventories at December 31 consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Finished and in-process products

 

$

27,960

 

 

$

30,874

 

Raw materials and supplies

 

 

15,636

 

 

 

16,151

 

 

 

$

43,596

 

 

$

47,025

 

 

If the FIFO method of inventory cost valuation had been used exclusively by the Company, inventories would have been $5.1 million and $5.6 million higher than reported at December 31, 2018 and 2017, respectively. Cost of sales decreased by $0.5 million and $0.1 million in 2018 and 2017, respectively, as a result of the liquidation of LIFO inventories. Cost of sales increased by $0.1 million in 2016 as a result of the liquidation of LIFO inventories.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation and amortization. The Company provides for depreciation and amortization on the basis of the straight-line method over the estimated useful lives of the assets as follows:

 

Buildings

20 to 40 years

Machinery and Equipment

3 to 10 years

Leasehold Improvements

5 to 10 years

 

The Company’s property, plant and equipment by major asset class at December 31 consists of:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Land

 

$

7,017

 

 

$

7,815

 

Buildings and leasehold improvements

 

 

53,821

 

 

 

59,730

 

Machinery and equipment

 

 

253,785

 

 

 

260,880

 

 

 

 

314,623

 

 

 

328,425

 

Less allowances for depreciation and amortization

 

 

(249,163

)

 

 

(244,521

)

 

 

$

65,460

 

 

$

83,904

 

 

 

At December 31, 2018 and 2017, the Company had approximately $6.8 million and $6.9 million, respectively, of capitalized software costs included in machinery and equipment. Amortization expense related to capitalized software costs was approximately $0.5 million, $1.0 million and $0.6 million in 2018, 2017 and 2016, respectively.

Long-Lived Assets

Long-Lived Assets

The Company reviews its long-lived assets and identifiable intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Determination of potential impairment related to assets to be held and used is based upon undiscounted future cash flows resulting from the use and ultimate disposition of the asset and related asset group. For assets held for sale, the amount of potential impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset. Refer to Note 3 for discussion of the impairment charges.

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) were as follows:

 

 

 

Foreign

Currency

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance at January 1, 2016

 

$

(37,447

)

 

$

(1,663

)

 

$

(39,110

)

Other comprehensive income (loss) before reclassifications

 

 

5,105

 

 

 

(222

)

 

 

4,883

 

Amounts reclassified from accumulated other comprehensive income, net of

   tax of ($30) (1)

 

 

 

 

 

53

 

 

 

53

 

Net current-period other comprehensive income (loss)

 

 

5,105

 

 

 

(169

)

 

 

4,936

 

Balance at December 31, 2016

 

 

(32,342

)

 

 

(1,832

)

 

 

(34,174

)

Other comprehensive income (loss) before reclassifications

 

 

2,391

 

 

 

(31

)

 

 

2,360

 

Amounts reclassified from accumulated other comprehensive income, net of

   tax of ($24) (1) (2)

 

 

17,201

 

 

 

72

 

 

 

17,273

 

Net current-period other comprehensive income (loss)

 

 

19,592

 

 

 

41

 

 

 

19,633

 

Balance at December 31, 2017

 

 

(12,750

)

 

 

(1,791

)

 

 

(14,541

)

Other comprehensive income (loss) before reclassifications

 

 

(3,501

)

 

 

14

 

 

 

(3,487

)

Amounts reclassified from accumulated other comprehensive income, net of

   tax of ($21) (1)

 

 

 

 

 

63

 

 

 

63

 

Reclassification of stranded tax effects to retained earnings(3)

 

 

 

 

 

(315

)

 

 

(315

)

Net current-period other comprehensive income (loss)

 

 

(3,501

)

 

 

(238

)

 

 

(3,739

)

Balance at December 31, 2018

 

$

(16,251

)

 

$

(2,029

)

 

$

(18,280

)

 

(1)

The accumulated other comprehensive income (loss) components related to defined benefit pension plans are included in the computation of net periodic pension cost. See Note 14, Retirement Plans for additional details.

(2)

Cumulative translation adjustment associated with the sale of the Brazil Business, as further discussed in Note 5, was included in the carrying value of assets disposed of.

(3)

Reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act to retained earnings due to the adoption of ASU 2018-02 during the first quarter of 2018.

Stock Based Compensation

Stock Based Compensation

The Company has stock incentive plans that provide for the granting of stock-based compensation to employees and to non-employee directors. Shares issued for option exercises or restricted stock units may be either from authorized but unissued shares or treasury shares. The Company records the costs of the plan under the provisions of ASC 718, Compensation — Stock Compensation. For transactions in which the Company obtains employee services in exchange for an award of equity instruments, the Company measures the cost of the services based on the grant date fair value of the award. The Company recognizes the cost over the period during which an employee is required to provide services in exchange for the award, referred to as the requisite service period (usually the vesting period).

Income Taxes

 

Income Taxes

Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the change is enacted.

ASC 740, Income Taxes (“ASC 740”) requires that deferred tax assets be reduced by a valuation allowance, if based on all available evidence, it is more likely than not that the deferred tax asset will not be realized. The Company evaluates the recovery of its deferred tax assets by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income inherently rely heavily on estimates.

The Company evaluates its tax positions in accordance with ASC 740, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprise’s financial statements. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized under ASC 740. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value. The Company maintains operating cash and reserves for replacement balances in financial institutions which, from time to time, may exceed federally insured limits. The Company periodically assesses the financial condition of these institutions and believes that the risk of loss is minimal.

Cash flows used in investing activities excluded $1.1 million, $0.6 million and $0.1 million of accrued capital expenditures in 2018, 2017 and 2016, respectively.

Revenue Recognition

 

Revenue is recognized when obligations under the terms of a contract with customers are satisfied. In both the Distribution and Material Handling segments, this generally occurs with the transfer of control of the Company’s products.  This transfer of control may occur at either the time of shipment from a Company facility, or at the time of delivery to a designated customer location. Obligations under contracts with customers are typically fulfilled within 90 days of receiving a purchase order from a customer, and generally no other future obligations are required to be performed.  The Company does not enter into any long-term contracts with customers greater than one year.  Based on the nature of the Company’s products and customer contracts, the Company has not recorded any deferred revenue, with the exception of cash advances or deposits received from customers prior to transfer of control of the product. These advances are typically fulfilled within the 90 day time frame mentioned above.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products.  Certain contracts with customers include variable consideration, such as rebates or discounts.  The Company recognizes estimates of this variable consideration each period, primarily based on the most likely level of consideration to be paid to the customer under the specific terms of the underlying programs.  While the Company’s contracts with customers do not generally include explicit rights to return product, the Company will in practice allow returns in the normal course of business and as part of the customer relationship.  Thus, the Company estimates the expected returns each period based on an analysis of historical experience.  For certain businesses where physical recovery of the product from returns occurs, the Company records an estimated right to return asset from such recovery, based on the approximate cost of the product.

Shipping and Handling

 

Sales, value added, and other taxes the Company collects concurrent with revenue from customers are excluded from net sales.  The Company has elected to recognize the cost for shipments to customers when control over products has transferred to the customer.  Costs for shipments to customers are classified as selling expenses for the Company’s manufacturing businesses and as cost of sales for the Company’s distribution business in the accompanying Consolidated Statements of Operations. The Company incurred costs for shipments to customers of approximately $9.7 million, $8.2 million and $8.9 million in selling expenses for the years ended December 31, 2018, 2017 and 2016, respectively, and $5.7 million, $6.0 million, and $6.1 million in cost of sales for the years ended December 31, 2018, 2017 and 2016, respectively. All other internal distribution costs are recorded in selling expenses.

v3.10.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Summary of Determination Cost of Inventories

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 30 percent of our inventories are valued using the LIFO method of determining cost. All other inventories are valued at the FIFO method of determining cost.

 

Inventories at December 31 consist of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Finished and in-process products

 

$

27,960

 

 

$

30,874

 

Raw materials and supplies

 

 

15,636

 

 

 

16,151

 

 

 

$

43,596

 

 

$

47,025

 

Schedule of Estimated Useful Lives of the Assets The Company provides for depreciation and amortization on the basis of the straight-line method over the estimated useful lives of the assets as follows:

 

Buildings

20 to 40 years

Machinery and Equipment

3 to 10 years

Leasehold Improvements

5 to 10 years

Schedule of Property Plant and Equipment by Major Assets Class

The Company’s property, plant and equipment by major asset class at December 31 consists of:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Land

 

$

7,017

 

 

$

7,815

 

Buildings and leasehold improvements

 

 

53,821

 

 

 

59,730

 

Machinery and equipment

 

 

253,785

 

 

 

260,880

 

 

 

 

314,623

 

 

 

328,425

 

Less allowances for depreciation and amortization

 

 

(249,163

)

 

 

(244,521

)

 

 

$

65,460

 

 

$

83,904

 

The balances in the Company's Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) were as follows:

 

 

 

Foreign

Currency

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance at January 1, 2016

 

$

(37,447

)

 

$

(1,663

)

 

$

(39,110

)

Other comprehensive income (loss) before reclassifications

 

 

5,105

 

 

 

(222

)

 

 

4,883

 

Amounts reclassified from accumulated other comprehensive income, net of

   tax of ($30) (1)

 

 

 

 

 

53

 

 

 

53

 

Net current-period other comprehensive income (loss)

 

 

5,105

 

 

 

(169

)

 

 

4,936

 

Balance at December 31, 2016

 

 

(32,342

)

 

 

(1,832

)

 

 

(34,174

)

Other comprehensive income (loss) before reclassifications

 

 

2,391

 

 

 

(31

)

 

 

2,360

 

Amounts reclassified from accumulated other comprehensive income, net of

   tax of ($24) (1) (2)

 

 

17,201

 

 

 

72

 

 

 

17,273

 

Net current-period other comprehensive income (loss)

 

 

19,592

 

 

 

41

 

 

 

19,633

 

Balance at December 31, 2017

 

 

(12,750

)

 

 

(1,791

)

 

 

(14,541

)

Other comprehensive income (loss) before reclassifications

 

 

(3,501

)

 

 

14

 

 

 

(3,487

)

Amounts reclassified from accumulated other comprehensive income, net of

   tax of ($21) (1)

 

 

 

 

 

63

 

 

 

63

 

Reclassification of stranded tax effects to retained earnings(3)

 

 

 

 

 

(315

)

 

 

(315

)

Net current-period other comprehensive income (loss)

 

 

(3,501

)

 

 

(238

)

 

 

(3,739

)

Balance at December 31, 2018

 

$

(16,251

)

 

$

(2,029

)

 

$

(18,280

)

 

(1)

The accumulated other comprehensive income (loss) components related to defined benefit pension plans are included in the computation of net periodic pension cost. See Note 14, Retirement Plans for additional details.

(2)

Cumulative translation adjustment associated with the sale of the Brazil Business, as further discussed in Note 5, was included in the carrying value of assets disposed of.

(3)

Reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act to retained earnings due to the adoption of ASU 2018-02 during the first quarter of 2018.

v3.10.0.1
Revenue Recognition (Tables)
12 Months Ended
Dec. 31, 2018
Revenue Recognition [Abstract]  
Schedule of Disaggregation of Revenue by Major Market

The following table disaggregates the Company’s revenue by major market:

 

 

 

For the Year Ended December 31, 2018

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

78,174

 

 

$

 

 

$

 

 

$

78,174

 

Vehicle

 

 

95,247

 

 

 

 

 

 

 

 

 

95,247

 

Food and beverage

 

 

101,610

 

 

 

 

 

 

 

 

 

101,610

 

Industrial

 

 

142,168

 

 

 

 

 

 

(100

)

 

 

142,068

 

Auto aftermarket

 

 

 

 

 

149,636

 

 

 

 

 

 

149,636

 

Total net sales

 

$

417,199

 

 

$

149,636

 

 

$

(100

)

 

$

566,735

 

Schedule of Balances Included in Consolidated Statements of Financial Position Related to Revenue Recognition

Amounts included in the Consolidated Statements of Financial Position related to revenue recognition include:

 

 

 

December 31,

 

 

December 31,

 

 

Statement of Financial Position

 

 

2018

 

 

2017

 

 

Classification

Returns, discounts and other allowances

 

$

(1,169

)

 

$

(853

)

 

Accounts receivable

Right of return asset

 

 

535

 

 

 

292

 

 

Inventories, net

Customer deposits

 

 

(806

)

 

 

(140

)

 

Other current liabilities

Accrued rebates

 

 

(2,559

)

 

 

(2,962

)

 

Other current liabilities

v3.10.0.1
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
The change in goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 were as follows:

 

 

 

Distribution

 

 

Material

Handling

 

 

Total

 

January 1, 2017

 

$

505

 

 

$

58,714

 

 

$

59,219

 

Foreign currency translation

 

 

 

 

 

752

 

 

 

752

 

December 31, 2017

 

$

505

 

 

$

59,466

 

 

$

59,971

 

Foreign currency translation

 

 

 

 

 

(903

)

 

 

(903

)

December 31, 2018

 

$

505

 

 

$

58,563

 

 

$

59,068

 

Intangible assets

Intangible assets at December 31, 2018 and 2017 consisted of the following:

 

 

 

 

 

 

2018

 

 

2017

 

 

 

Weighted Average

Remaining Useful

Life (years)

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

 

Gross

 

 

Accumulated

Amortization

 

 

Net

 

Trade Names - Indefinite Lived

 

 

 

 

 

$

9,782

 

 

$

 

 

$

9,782

 

 

$

9,972

 

 

$

 

 

$

9,972

 

Trade Names

 

 

6.5

 

 

 

80

 

 

 

(45

)

 

 

35

 

 

 

80

 

 

 

(40

)

 

 

40

 

Customer Relationships

 

 

1.5

 

 

 

39,521

 

 

 

(31,896

)

 

 

7,625

 

 

 

41,043

 

 

 

(27,396

)

 

 

13,647

 

Technology

 

 

5.2

 

 

 

24,980

 

 

 

(12,142

)

 

 

12,838

 

 

 

24,980

 

 

 

(9,590

)

 

 

15,390

 

Patents

 

 

0.0

 

 

 

11,730

 

 

 

(11,730

)

 

 

 

 

 

11,730

 

 

 

(11,730

)

 

 

 

 

 

 

 

 

 

$

86,093

 

 

$

(55,813

)

 

$

30,280

 

 

$

87,805

 

 

$

(48,756

)

 

$

39,049

 

v3.10.0.1
Disposal of Businesses (Tables)
12 Months Ended
Dec. 31, 2018
Brazil Business, Lawn and Garden Business [Member]  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]  
Summary of Selected Financial Information for Discontinued Operations

Summarized selected financial information for discontinued operations for the years ended December 31, 2018, 2017 and 2016 are presented in the following table:

 

 

 

 

 

For the Year Ended December 31,

 

 

 

 

 

2018

 

 

2017*

 

 

2016

 

Net sales

 

 

 

$

 

 

$

29,976

 

 

$

23,683

 

Cost of sales

 

 

 

 

 

 

 

25,359

 

 

 

20,941

 

Selling, general, and administrative

 

 

 

 

1,348

 

 

 

6,748

 

 

 

5,438

 

(Gain) loss on disposal of assets

 

 

 

 

 

 

 

(32

)

 

 

226

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

8,545

 

Interest income, net

 

 

 

 

 

 

 

(286

)

 

 

(469

)

Gain (loss) on the disposal of the discontinued operations

 

 

 

 

 

 

 

(34,956

)

 

 

 

Loss from discontinued operations before income tax

 

 

 

 

(1,348

)

 

 

(36,769

)

 

 

(10,998

)

Income tax expense (benefit)

 

 

 

 

353

 

 

 

(16,036

)

 

 

(731

)

Loss from discontinued operations, net of income tax

 

 

 

$

(1,701

)

 

$

(20,733

)

 

$

(10,267

)

 

*

Includes Brazil Business operating results through December 18, 2017.

v3.10.0.1
Net Income (Loss) Per Common Share (Tables)
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Weighted average number of common shares outstanding during the period

Net income (loss) per common share, as shown on the accompanying Consolidated Statements of Operations, is determined on the basis of the weighted average number of common shares outstanding during the periods as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Weighted average common shares outstanding basic

 

 

33,426,855

 

 

 

30,222,289

 

 

 

29,750,378

 

Dilutive effect of stock options and restricted stock

 

 

 

 

 

340,357

 

 

 

217,534

 

Weighted average common shares outstanding diluted

 

 

33,426,855

 

 

 

30,562,646

 

 

 

29,967,912

 

v3.10.0.1
Restructuring (Tables)
12 Months Ended
Dec. 31, 2018
Restructuring And Related Activities [Abstract]  
Summary of Restructuring Charges The restructuring charges recognized in the years ended 2018, 2017 and 2016 are presented in the following table.

 

 

 

 

2018

 

 

2017

 

 

2016

 

Segment

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

 

Cost of

sales

 

 

SG&A

 

 

Total

 

Distribution

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Material Handling

 

 

 

119

 

 

 

 

 

 

119

 

 

 

7,389

 

 

 

164

 

 

 

7,553

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

$

119

 

 

$

 

 

$

119

 

 

$

7,389

 

 

$

164

 

 

$

7,553

 

 

$

 

 

$

 

 

$

 

Summary of Restructuring Activity

The table below summarizes restructuring activity for the years ended December 31, 2018 and 2017:

 

 

 

Employee

Reduction

 

 

Accelerated

Depreciation

 

 

Other Exit Costs

 

 

Total

 

Balance at January 1, 2017

 

$

 

 

$

 

 

$

 

 

$

 

Charges to expense

 

 

3,022

 

 

 

1,993

 

 

 

2,538

 

 

 

7,553

 

Cash payments

 

 

(1,924

)

 

 

 

 

 

(2,448

)

 

 

(4,372

)

Non-cash utilization

 

 

 

 

 

(1,993

)

 

 

 

 

 

(1,993

)

Balance at December 31, 2017

 

$

1,098

 

 

$

 

 

$

90

 

 

$

1,188

 

Charges to expense

 

 

31

 

 

 

16

 

 

 

72

 

 

 

119

 

Cash payments

 

 

(1,099

)

 

 

 

 

 

(162

)

 

 

(1,261

)

Non-cash utilization

 

 

 

 

 

(16

)

 

 

 

 

 

(16

)

Balance at December 31, 2018

 

$

30

 

 

$

 

 

$

 

 

$

30

 

 

v3.10.0.1
Other Liabilities (Tables)
12 Months Ended
Dec. 31, 2018
Other Liabilities Disclosure [Abstract]  
Schedule of Other Current Liabilities

The balance in other current liabilities is comprised of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Customer deposits and accrued rebates

 

$

3,365

 

 

$

3,102

 

Dividends payable

 

 

5,260

 

 

 

4,478

 

Accrued litigation, claims and professional fees

 

 

460

 

 

 

417

 

Current portion of environmental reserves

 

 

1,229

 

 

 

1,322

 

Other accrued expenses

 

 

6,387

 

 

 

6,153

 

 

 

$

16,701

 

 

$

15,472

 

Schedule of Other Liabilities (Long-term)

The balance in other liabilities (long-term) is comprised of the following:

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Lease guarantee contingency

 

$

10,402

 

 

$

 

Environmental reserves

 

 

3,702

 

 

 

3,814

 

Supplemental executive retirement plan liability

 

 

2,026

 

 

 

2,416

 

Pension liability

 

 

1,207

 

 

 

1,318

 

Deferred gain on sale of assets

 

 

1,237

 

 

 

 

Other long-term liabilities

 

 

1,220

 

 

 

688

 

 

 

$

19,794

 

 

$

8,236

 

 

v3.10.0.1
Stock Compensation (Tables)
12 Months Ended
Dec. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of stock option activity for the period

The following tables summarize stock option activity in the past three years:

Options granted in 2018, 2017 and 2016 were as follows:

 

Year

 

Options

 

 

Exercise

Price

 

2018

 

 

255,072

 

 

$

21.30

 

2017

 

 

397,759

 

 

$

14.30

 

2016

 

 

271,350

 

 

$

11.62

 

 

Options exercised in 2018, 2017 and 2016 were as follows:

 

Year

 

Options

 

 

Exercise

Price

2018

 

 

191,169

 

 

$9.97 to $20.93

2017

 

 

375,292

 

 

$9.97 to $20.93

2016

 

 

334,836

 

 

$9.00 to $14.77

Options outstanding and exercisable at December 31, 2018, 2017 and 2016 were as follows:

 

Year

 

Outstanding

 

 

Range of Exercise

Prices

 

Exercisable

 

 

Weighted Average

Exercise Price

 

2018

 

 

965,659

 

 

$10.10 to $21.30

 

 

521,202

 

 

$

16.08

 

2017

 

 

988,167

 

 

$9.97 to $20.93

 

 

539,993

 

 

$

16.23

 

2016

 

 

1,183,830

 

 

$9.97 to $20.93

 

 

934,898

 

 

$

14.88

 

The following table provides a summary of stock option activity for the period ended December 31, 2018:

 

 

 

Shares

 

 

Average

Exercise

Price

 

 

Weighted

Average

Life (in Years)

 

Outstanding at December 31, 2017

 

 

988,167

 

 

$

15.13

 

 

 

 

 

Options granted

 

 

255,072

 

 

 

21.30

 

 

 

 

 

Options exercised

 

 

(191,169

)

 

 

14.30

 

 

 

 

 

Canceled or forfeited

 

 

(86,411

)

 

 

17.65

 

 

 

 

 

Expired

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2018

 

 

965,659

 

 

 

16.69

 

 

 

7.23

 

Exercisable at December 31, 2018

 

 

521,202

 

 

$

16.08

 

 

 

6.10

 

Fair Value of stock options granted assumptions used The expected volatility is derived from historical volatility of the Company’s shares and those of similar companies measured against the market as a whole. The Company used the binomial lattice option pricing model based on the assumptions set forth in the following table.

 

 

 

2018

 

 

2017

 

 

2016

 

Risk free interest rate

 

 

2.90

%

 

 

2.50

%

 

 

1.80

%

Expected dividend yield

 

 

2.50

%

 

 

3.80

%

 

 

4.60

%

Expected life of award (years)

 

 

4.00

 

 

 

4.10

 

 

 

8.00

 

Expected volatility

 

 

42.50

%

 

 

50.00

%

 

 

50.00

%

Fair value per option

 

$

6.30

 

 

$

4.47

 

 

$

3.45

 

Summary of combined restricted stock units, including performance-based restricted stock units and restricted stock activity for the period

The following table provides a summary of restricted stock units, including performance-based restricted stock units, and restricted stock activity for the year ended December 31, 2018:

 

 

 

Shares

 

 

Average

Grant-Date

Fair Value

 

Unvested shares at December 31, 2017

 

 

412,650

 

 

 

 

 

Granted

 

 

178,005

 

 

$

21.65

 

Vested

 

 

(104,737

)

 

 

14.09

 

Forfeited

 

 

(62,123

)

 

 

16.94

 

Unvested shares at December 31, 2018

 

 

423,795

 

 

 

 

 

v3.10.0.1
Long-Term Debt and Loan Agreements (Tables)
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Schedule of Long Term Debt

Long-term debt at December 31, 2018 and 2017 consisted of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Loan Agreement

 

$

 

 

$

74,632

 

4.67% Senior Unsecured Notes due 2021

 

 

40,000

 

 

 

40,000

 

5.25% Senior Unsecured Notes due 2024

 

 

11,000

 

 

 

11,000

 

5.30% Senior Unsecured Notes due 2024

 

 

15,000

 

 

 

15,000

 

5.45% Senior Unsecured Notes due 2026

 

 

12,000

 

 

 

12,000

 

 

 

 

78,000

 

 

 

152,632

 

Less unamortized deferred financing costs

 

 

1,210

 

 

 

1,596

 

 

 

$

76,790

 

 

$

151,036

 

Schedule of Debt Ratios The ratios as of December 31, 2018 are shown in the following table:

 

 

 

Required Level

 

Actual Level

 

Interest Coverage Ratio

 

3.00 to 1 (minimum)

 

 

11.60

 

Leverage Ratio

 

3.25 to 1 (maximum)

 

 

1.15

 

v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Tax Rate A reconciliation of the Federal statutory income tax rate to the Company’s effective tax rate is as follows:

 

  

 

Percent of Income before

Income Taxes

 

 

 

2018

 

 

2017

 

 

2016

 

Statutory Federal income tax rate

 

 

21.0

%

 

 

35.0

%

 

 

35.0

%

State income taxes - net of Federal tax benefit

 

 

42.5

 

 

 

8.3

 

 

 

3.0

 

Foreign tax rate differential

 

 

3.9

 

 

 

(1.6

)

 

 

(0.9

)

Domestic production deduction

 

 

 

 

 

(5.2

)

 

 

(3.2

)

Non-deductible expenses

 

 

93.8

 

 

 

0.4

 

 

 

2.9

 

Impact of tax law changes

 

 

22.1

 

 

 

(7.4

)

 

 

 

Changes in unrecognized tax benefits

 

 

42.9

 

 

 

0.9

 

 

 

(0.8

)

Foreign tax incentives

 

 

(3.1

)

 

 

 

 

 

(0.4

)

Valuation allowances

 

 

 

 

 

 

 

 

3.2

 

Other

 

 

(4.4

)

 

 

0.6

 

 

 

0.7

 

Effective tax rate for the year

 

 

218.7

%

 

 

31.0

%

 

 

39.5

%

Income (Loss) from Continuing Operations Before Income Taxes

 

Income from continuing operations before income taxes was attributable to the following sources:

 

 

 

2018

 

 

2017

 

 

2016

 

United States

 

$

419

 

 

$

12,979

 

 

$

17,010

 

Foreign

 

 

970

 

 

 

2,729

 

 

 

1,709

 

Totals

 

$

1,389

 

 

$

15,708

 

 

$

18,719

 

Income Tax Expense (Benefit) from Continuing Operations

 

Income tax expense (benefit) from continuing operations consisted of the following:

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

 

Current

 

 

Deferred

 

Federal

 

$

9,694

 

 

$

(7,910

)

 

$

6,304

 

 

$

(4,394

)

 

$

5,684

 

 

$

(413

)

Foreign

 

 

1,218

 

 

 

(718

)

 

 

1,821

 

 

 

(883

)

 

 

515

 

 

 

741

 

State and local

 

 

1,575

 

 

 

(822

)

 

 

2,402

 

 

 

(386

)

 

 

641

 

 

 

227

 

 

 

$

12,487

 

 

$

(9,450

)

 

$

10,527

 

 

$

(5,663

)

 

$

6,840

 

 

$

555

 

Significant Components of the Company's Deferred Taxes

Significant components of the Company’s deferred taxes as of December 31, 2018 and 2017 are as follows:

 

 

 

2018

 

 

2017

 

Deferred income tax assets

 

 

 

 

 

 

 

 

Compensation

 

 

2,774

 

 

 

3,030

 

Inventory valuation

 

 

695

 

 

 

502

 

Allowance for uncollectible accounts

 

 

237

 

 

 

268

 

Provision for loss on note receivable

 

 

5,031

 

 

 

 

Non-deductible accruals

 

 

4,196

 

 

 

2,195

 

Non-deductible intangibles

 

 

1,574

 

 

 

1,193

 

State deferred taxes

 

 

843

 

 

 

 

Capital loss carryforwards

 

 

1,982

 

 

 

1,982

 

Net operating loss carryforwards

 

 

 

 

 

405

 

 

 

 

17,332

 

 

 

9,575

 

Valuation allowance

 

 

(1,982

)

 

 

(1,982

)

 

 

 

15,350

 

 

 

7,593

 

Deferred income tax liabilities

 

 

 

 

 

 

 

 

Property, plant and equipment

 

$

4,247

 

 

$

6,255

 

Tax-deductible goodwill

 

 

5,089

 

 

 

5,202

 

State deferred taxes

 

 

 

 

 

132

 

Other

 

 

744

 

 

 

149

 

 

 

 

10,080

 

 

 

11,738

 

Net deferred income tax asset (liability)

 

$

5,270

 

 

$

(4,145

)

Activity Related to the Company's Unrecognized Tax Benefits

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

 

 

 

2018

 

 

2017

 

 

2016

 

Balance at January 1

 

$

359

 

 

$

478

 

 

$

151

 

Increases related to previous year tax positions

 

 

596

 

 

 

359

 

 

 

478

 

Reductions due to lapse of applicable statute of limitations

 

 

 

 

 

(478

)

 

 

(151

)

Reduction due to settlements

 

 

 

 

 

 

 

 

 

Balance at December 31

 

$

955

 

 

$

359

 

 

$

478

 

v3.10.0.1
Retirement Plans (Tables)
12 Months Ended
Dec. 31, 2018
Compensation And Retirement Disclosure [Abstract]  
Net periodic pension cost

 


Net periodic pension cost for the years ended December 31, 2018, 2017 and 2016 was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Interest cost

 

$

224

 

 

$

253

 

 

$

270

 

Expected return on assets

 

 

(317

)

 

 

(295

)

 

 

(319

)

Amortization of net loss

 

 

84

 

 

 

96

 

 

 

82

 

Net periodic pension cost

 

$

(9

)

 

$

54

 

 

$

33

 

Reconciliation of changes in projected benefit obligations

The reconciliation of changes in projected benefit obligations are as follows:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

Projected benefit obligation at beginning of year

 

$

6,579

 

 

$

6,503

 

Interest cost

 

 

224

 

 

 

253

 

Actuarial loss (gain)

 

 

(362

)

 

 

276

 

Expenses paid

 

 

(135

)

 

 

(84

)

Benefits paid

 

 

(362

)

 

 

(369

)

Projected benefit obligation at end of year

 

$

5,944

 

 

$

6,579

 

Accumulated benefit obligation at end of year

 

$

5,944

 

 

$

6,579

 

Assumptions used to determine the net periodic benefit cost and benefit obligations

The assumptions used to determine the net periodic benefit cost and benefit obligations are as follows:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Discount rate for net periodic pension cost

 

 

3.50

%

 

 

4.00

%

 

 

4.30

%

Discount rate for benefit obligations

 

 

4.20

%

 

 

3.50

%

 

 

4.00

%

Expected long-term return of plan assets

 

 

7.50

%

 

 

7.75

%

 

 

7.75

%

Change in the fair value of the plan's assets

The following table reflects the change in the fair value of the plan’s assets:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

Fair value of plan assets at beginning of year

 

$

5,261

 

 

$

5,183

 

Actual return on plan assets

 

 

(27

)

 

 

531

 

Company contributions

 

 

 

 

 

 

Expenses paid

 

 

(135

)

 

 

(84

)

Benefits paid

 

 

(362

)

 

 

(369

)

Fair value of plan assets at end of year

 

$

4,737

 

 

$

5,261

 

Weighted average asset allocations

The weighted average asset allocations at December 31, 2018 and 2017 were as follows:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

U.S. Equities securities

 

 

50

%

 

 

72

%

U.S. Debt securities

 

 

50

%

 

 

24

%

Cash

 

 

 

 

 

4

%

Total

 

 

100

%

 

 

100

%

Reconciliation of the funded status of the plan

 

The following table provides a reconciliation of the funded status of the plan at December 31, 2018 and 2017:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

Projected benefit obligation

 

$

5,944

 

 

$

6,579

 

Plan assets at fair value

 

 

4,737

 

 

 

5,261

 

Funded status

 

$

(1,207

)

 

$

(1,318

)

Benefit payments projected for the plan

Benefit payments projected for the plan are as follows:

 

2019

 

$

372

 

2020

 

 

376

 

2021

 

 

377

 

2022

 

 

374

 

2023

 

 

374

 

2024-2028

 

 

1,889

 

v3.10.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2018
Leases [Abstract]  
Future minimum rental commitments

Future minimum rental commitments are as follows:

 

Year Ended December 31,

 

 

 

 

2019

 

$

2,492

 

2020

 

 

1,739

 

2021

 

 

982

 

2022

 

 

966

 

2023

 

 

841

 

Thereafter

 

 

811

 

Total

 

$

7,831

 

v3.10.0.1
Industry Segments (Tables)
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Schedule of Reporting Information by Segment Total sales from foreign business units were approximately $50.6 million, $53.9 million, and $64.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Total export sales to countries outside the U.S. were approximately $19.6 million, $17.2 million, and $18.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. Sales made to customers in Canada accounted for approximately 4.1% of total net sales in 2018, 2.4% in 2017 and 4.6% in 2016. There are no other individual foreign countries for which sales are material. Long-lived assets in foreign countries, primarily in Canada, consisted of property, plant and equipment, and were approximately $14.1 million at December 31, 2018 and $17.6 million at December 31, 2017.

 

 

2018

 

 

2017

 

 

2016

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

417,199

 

 

$

391,313

 

 

$

363,956

 

Distribution

 

149,636

 

 

 

156,428

 

 

 

170,660

 

Inter-company sales

 

(100

)

 

 

(698

)

 

 

(237

)

Total net sales

$

566,735

 

 

$

547,043

 

 

$

534,379

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

57,948

 

 

$

38,874

 

 

$

40,776

 

Distribution

 

7,441

 

 

 

9,073

 

 

 

12,834

 

Corporate

 

(59,062

)

 

 

(23,059

)

 

 

(26,248

)

Total operating income

 

6,327

 

 

 

24,888

 

 

 

27,362

 

Interest expense, net

 

(4,938

)

 

 

(7,292

)

 

 

(8,643

)

Loss on extinguishment of debt

 

 

 

 

(1,888

)

 

 

 

Income from continuing operations before income taxes

$

1,389

 

 

$

15,708

 

 

$

18,719

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable Assets

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

229,962

 

 

$

257,863

 

 

$

268,634

 

Distribution

 

48,575

 

 

 

49,822

 

 

 

56,072

 

Corporate

 

70,108

 

 

 

48,257

 

 

 

36,271

 

Discontinued operations

 

 

 

 

 

 

 

20,707

 

Total identifiable assets

$

348,645

 

 

$

355,942

 

 

$

381,684

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Additions, Net

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

4,500

 

 

$

5,165

 

 

$

10,933

 

Distribution

 

587

 

 

 

622

 

 

 

1,424

 

Corporate

 

36

 

 

 

27

 

 

 

132

 

Total capital additions, net

$

5,123

 

 

$

5,814

 

 

$

12,489

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

24,159

 

 

$

28,506

 

 

$

29,270

 

Distribution

 

1,169

 

 

 

1,174

 

 

 

1,221

 

Corporate

 

811

 

 

 

1,151

 

 

 

1,301

 

Total depreciation and amortization

$

26,139

 

 

$

30,831

 

 

$

31,792

 

v3.10.0.1
Summarized Quarterly Results of Operations (Tables)
12 Months Ended
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information

Quarter Ended 2018

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

Total

 

Net Sales

 

$

152,568

 

 

$

140,560

 

 

$

135,219

 

 

$

138,388

 

 

$

566,735

 

Gross Profit

 

 

47,115

 

 

 

47,991

 

 

 

42,091

 

 

 

42,096

 

 

 

179,293

 

Income (loss) from continuing operations

 

 

7,755

 

 

 

8,608

 

 

 

(21,137

)

 

 

3,126

 

 

 

(1,648

)

Income (loss) from discontinued operations, net

 

 

(911

)

 

 

 

 

 

(2

)

 

 

(788

)

 

 

(1,701

)

Net income (loss)

 

 

6,844

 

 

 

8,608

 

 

 

(21,139

)

 

 

2,338

 

 

 

(3,349

)

Income (loss) per common share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.25

 

 

$

0.26

 

 

$

(0.60

)

 

$

0.09

 

 

$

(0.05

)

Diluted*

 

$

0.25

 

 

$

0.26

 

 

$

(0.60

)

 

$

0.09

 

 

$

(0.05

)

Income (loss) per common share from discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.03

)

 

$

 

 

$

 

 

$

(0.02

)

 

$

(0.05

)

Diluted*

 

$

(0.03

)

 

$

 

 

$

 

 

$

(0.02

)

 

$

(0.05

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.22

 

 

$

0.26

 

 

$

(0.60

)

 

$

0.07

 

 

$

(0.10

)

Diluted*

 

$

0.22

 

 

$

0.26

 

 

$

(0.60

)

 

$

0.07

 

 

$

(0.10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended 2017

 

March 31

 

 

June 30

 

 

September 30

 

 

December 31

 

 

Total

 

Net Sales

 

$

136,572

 

 

$

135,252

 

 

$

135,113

 

 

$

140,106

 

 

$

547,043

 

Gross Profit

 

 

41,761

 

 

 

38,292

 

 

 

39,143

 

 

 

38,257

 

 

 

157,453

 

Income (loss) from continuing operations (3) (4)

 

 

3,458

 

 

 

2,482

 

 

 

3,083

 

 

 

1,821

 

 

 

10,844

 

Income (loss) from discontinued operations, net (1) (2)

 

 

(344

)

 

 

(489

)

 

 

174

 

 

 

(20,074

)

 

 

(20,733

)

Net income (loss)(1) (2) (3) (4)

 

$

3,114

 

 

$

1,993

 

 

$

3,257

 

 

$

(18,253

)

 

 

(9,889

)

Income (loss) per common share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.12

 

 

$

0.08

 

 

$

0.10

 

 

$

0.06

 

 

$

0.36

 

Diluted*

 

$

0.11

 

 

$

0.08

 

 

$

0.10

 

 

$

0.06

 

 

$

0.35

 

Income (loss) per common share from discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

(0.02

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.66

)

 

$

(0.69

)

Diluted*

 

$

(0.01

)

 

$

(0.01

)

 

$

0.01

 

 

$

(0.65

)

 

$

(0.68

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic*

 

$

0.10

 

 

$

0.07

 

 

$

0.11

 

 

$

(0.60

)

 

$

(0.33

)

Diluted*

 

$

0.10

 

 

$

0.07

 

 

$

0.11

 

 

$

(0.59

)

 

$

(0.33

)

 

(1)

A loss on the sale of the Brazil Business of $35 million was recognized during the fourth quarter of 2017. This loss is included in loss from discontinued operations in the accompanying Consolidated Statements of Operations.

(2)

During the quarter ended December 31, 2017, the Company recorded a U.S. tax benefit of approximately $15 million as a result of a worthless stock deduction related to the Company’s investment in the Brazil Business. This benefit is included in loss from discontinued operations in the accompanying Consolidated Statements of Operations.

(3)  

During the quarter ended December 31, 2017, the Company recorded a loss on extinguishment of debt of approximately $1.9 million.

(4)

During the quarter ended December 31, 2017, the Company recorded a net tax benefit of approximately $1.2 million related to the Tax Act

 

*

The sum of the earnings per share for the four quarters in a year does not necessarily equal the total year earnings per share due to the computation of weighted shares outstanding during each respective period.

 

v3.10.0.1
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Stranded tax effects reclassified from accumulated other comprehensive income to retained earnings $ 300,000    
Concentration of Credit Risk      
Expense for bad debts 23,008,000 $ 0 $ 0
Deductions from allowance for doubtful accounts, net of recoveries $ 500,000 700,000 400,000
Inventories      
Percentage of LIFO Inventory 30.00%    
Cost valuation of inventory if FIFO had been used exclusively $ 5,100,000 5,600,000  
LIFO inventories increased (decreased) cost of sales (500,000) (100,000) 100,000
Capitalized Computer Software, Gross 6,800,000 6,900,000  
Capitalized Computer Software, Amortization 500,000 1,000,000 600,000
Cash and Cash Equivalents      
Accrued capital expenditures excluded from investing activities 1,100,000 600,000 100,000
Selling Expense [Member]      
Concentration of Credit Risk      
Expense for bad debts $ 700,000 $ 700,000 $ 800,000
Canada [Member] | Sales [Member] | Customer Concentration Risk [Member]      
Concentration of Credit Risk      
Concentration risk percentage 4.10% 2.40% 4.60%
Estimate of Fair Value, Fair Value Disclosure [Member] | Less unamortized deferred financing fees [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Notes payable, fair value disclosure $ 76,800,000 $ 78,000,000  
Maximum [Member] | Sales [Member] | Customer Concentration Risk [Member]      
Concentration of Credit Risk      
Concentration risk percentage 10.00%    
ASU 2016-02 [Member] | Minimum [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Right-of-use assets $ 5,700,000    
Lease liabilities 5,700,000    
ASU 2016-02 [Member] | Maximum [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Right-of-use assets 6,700,000    
Lease liabilities $ 6,700,000    
v3.10.0.1
Summary of Significant Accounting Policies - Summary of Determination Cost of Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Inventory Disclosure [Abstract]    
Finished and in-process products $ 27,960 $ 30,874
Raw materials and supplies 15,636 16,151
Inventory net $ 43,596 $ 47,025
v3.10.0.1
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of the Assets (Details)
12 Months Ended
Dec. 31, 2018
Minimum [Member] | Buildings [Member]  
Property, Plant and Equipment [Line Items]  
Property and equipment useful lives 20 years
Minimum [Member] | Machinery and Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Property and equipment useful lives 3 years
Minimum [Member] | Leasehold Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Property and equipment useful lives 5 years
Maximum [Member] | Buildings [Member]  
Property, Plant and Equipment [Line Items]  
Property and equipment useful lives 40 years
Maximum [Member] | Machinery and Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Property and equipment useful lives 10 years
Maximum [Member] | Leasehold Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Property and equipment useful lives 10 years
v3.10.0.1
Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment by Major Assets Class (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Property Plant And Equipment Net [Abstract]    
Land $ 7,017 $ 7,815
Buildings and leasehold improvements 53,821 59,730
Machinery and equipment 253,785 260,880
Property, Plant and Equipment, at cost 314,623 328,425
Less allowances for depreciation and amortization (249,163) (244,521)
Property, plant and equipment, net $ 65,460 $ 83,904
v3.10.0.1
Summary of Significant Accounting Policies - The Balances in the Company's Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance $ 93,752 $ 93,033 $ 97,703
Reclassification of stranded tax effects to retained earnings 300    
Total other comprehensive income (loss) (3,739) 19,633 4,936
Ending balance 154,638 93,752 93,033
Foreign Currency [Member]      
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance (12,750) (32,342) (37,447)
Other comprehensive income (loss) before reclassifications (3,501) 2,391 5,105
Amounts reclassified from accumulated other comprehensive income, net of tax 0 17,201 0
Reclassification of stranded tax effects to retained earnings 0    
Total other comprehensive income (loss) (3,501) 19,592 5,105
Ending balance (16,251) (12,750) (32,342)
Defined Benefit Pension Plans [Member]      
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance (1,791) (1,832) (1,663)
Other comprehensive income (loss) before reclassifications 14 (31) (222)
Amounts reclassified from accumulated other comprehensive income, net of tax 63 72 53
Reclassification of stranded tax effects to retained earnings (315)    
Total other comprehensive income (loss) (238) 41 (169)
Ending balance (2,029) (1,791) (1,832)
Accumulated Other Comprehensive Income (Loss) [Member]      
Accumulated Other Comprehensive Income (Loss) [Roll Forward]      
Beginning balance (14,541) (34,174) (39,110)
Other comprehensive income (loss) before reclassifications (3,487) 2,360 4,883
Amounts reclassified from accumulated other comprehensive income, net of tax 63 17,273 53
Reclassification of stranded tax effects to retained earnings (315)    
Total other comprehensive income (loss) (3,739) 19,633 4,936
Ending balance $ (18,280) $ (14,541) $ (34,174)
v3.10.0.1
Summary of Significant Accounting Policies - The Balances in the Company's Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Reclassification from AOCI, Current Period, Tax [Abstract]      
Amounts reclassified from accumulated other comprehensive income, tax $ 21 $ 24 $ 30
v3.10.0.1
Revenue Recognition - Schedule of Disaggregation of Revenue by Major Market (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disaggregation Of Revenue [Line Items]                      
Net sales $ 138,388 $ 135,219 $ 140,560 $ 152,568 $ 140,106 $ 135,113 $ 135,252 $ 136,572 $ 566,735 $ 547,043 $ 534,379
Operating Segments [Member] | Material Handling [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 417,199 391,313 363,956
Operating Segments [Member] | Distribution [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 149,636 156,428 170,660
Inter-company [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 (100) $ (698) $ (237)
Consumer [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 78,174    
Consumer [Member] | Operating Segments [Member] | Material Handling [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 78,174    
Vehicle [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 95,247    
Vehicle [Member] | Operating Segments [Member] | Material Handling [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 95,247    
Food and Beverage [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 101,610    
Food and Beverage [Member] | Operating Segments [Member] | Material Handling [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 101,610    
Industrial [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 142,068    
Industrial [Member] | Operating Segments [Member] | Material Handling [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 142,168    
Industrial [Member] | Inter-company [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 (100)    
Auto Aftermarket [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 149,636    
Auto Aftermarket [Member] | Operating Segments [Member] | Distribution [Member]                      
Disaggregation Of Revenue [Line Items]                      
Net sales                 $ 149,636    
v3.10.0.1
Revenue Recognition - Schedule of Balances Included in Consolidated Statements of Financial Position Related to Revenue Recognition (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Accounts Receivable [Member]    
Disaggregation Of Revenue [Line Items]    
Returns, discounts and other allowances $ (1,169) $ (853)
Inventories, net [Member]    
Disaggregation Of Revenue [Line Items]    
Right of return asset 535 292
Other Current Liabilities [Member]    
Disaggregation Of Revenue [Line Items]    
Customer deposits (806) (140)
Accrued rebates $ (2,559) $ (2,962)
v3.10.0.1
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disaggregation Of Revenue [Line Items]      
Type of Cost, Good or Service [Extensible List] us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember
Cost of sales $ 387,442 $ 389,590 $ 372,481
Selling Expense [Member]      
Disaggregation Of Revenue [Line Items]      
Cost of sales 9,700 8,200 8,900
Cost of Sales [Member]      
Disaggregation Of Revenue [Line Items]      
Cost of sales $ 5,700 $ 6,000 $ 6,100
v3.10.0.1
Impairment Charges - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Impairment charges $ 308 $ 544 $ 1,329
Net proceeds from sale of building 2,300 3,100  
Material Handling [Member]      
Impairment charges     $ 1,300
Other Assets [Member]      
Building classified as held for sale 4,400 300  
Level 2 [Member]      
Impairment charges $ 300 $ 500  
v3.10.0.1
Goodwill and Intangible Assets - Additional Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Finite And Indefinite Lived Intangible Assets [Line Items]      
Impairment of goodwill and indefinite-lived intangible assets $ 0 $ 0 $ 0
Amortization of Intangible Assets 8,099,000 8,378,000 $ 9,277,000
Estimated amortization expense, 2019 7,571,000    
Estimated amortization expense, 2020 4,819,000    
Estimated amortization expense, 2021 2,278,000    
Estimated amortization expense, 2022 2,278,000    
Estimated amortization expense, 2023 2,278,000    
Trade Names [Member]      
Finite And Indefinite Lived Intangible Assets [Line Items]      
Carrying value of indefinite-lived intangible assets $ 9,782,000 $ 9,972,000  
v3.10.0.1
Goodwill and Intangible Assets - Change in Goodwill (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Goodwill [Roll Forward]    
Beginning balance $ 59,971 $ 59,219
Foreign currency translation (903) 752
Ending balance 59,068 59,971
Distribution [Member]    
Goodwill [Roll Forward]    
Beginning balance 505 505
Foreign currency translation 0 0
Ending balance 505 505
Material Handling [Member]    
Goodwill [Roll Forward]    
Beginning balance 59,466 58,714
Foreign currency translation (903) 752
Ending balance $ 58,563 $ 59,466
v3.10.0.1
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Finite And Indefinite Lived Intangible Assets [Line Items]    
Gross $ 86,093 $ 87,805
Accumulated amortization (55,813) (48,756)
Net 30,280 39,049
Trade Names [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Indefinite-lived intangibles $ 9,782 9,972
Trade Names [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Weighted Average Remaining Useful Life (years) 6 years 6 months  
Gross $ 80 80
Accumulated amortization (45) (40)
Net $ 35 40
Customer Relationships [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Weighted Average Remaining Useful Life (years) 1 year 6 months  
Gross $ 39,521 41,043
Accumulated amortization (31,896) (27,396)
Net $ 7,625 13,647
Technology [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Weighted Average Remaining Useful Life (years) 5 years 2 months 12 days  
Gross $ 24,980 24,980
Accumulated amortization (12,142) (9,590)
Net $ 12,838 15,390
Patents [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Weighted Average Remaining Useful Life (years) 0 years  
Gross $ 11,730 11,730
Accumulated amortization $ (11,730) $ (11,730)
v3.10.0.1
Disposal of Businesses - Additional Information (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 18, 2017
Feb. 17, 2015
Sep. 30, 2018
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]              
Notes receivable, carrying value       $ 18,737,000 $ 0 $ 18,737,000  
Provision for loss on note receivable         23,008,000 0 $ 0
Interest income on notes receivable         $ 1,221,000 1,361,000 1,262,000
Maximum [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]              
Interest rate         5.45%    
Minimum [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]              
Interest rate         4.67%    
Brazil Business [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]              
Consideration received for discontinued operation $ 1            
Additional amounts due, or to be settled 0            
Gain (Loss) on sale of Business       (35,000,000)      
Cash held by discontinued business       1,200,000   1,200,000  
Cost incurred to sell business       300,000      
U.S. tax benefit as a result of a worthless stock deduction $ 15,000,000       $ 700,000    
Worthless stock deduction on federal tax payments         4,300,000    
Brazil Business [Member] | Maximum [Member] | Factoring Arrangement [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]              
Guarantee obligation amount until December 31, 2019         7,000,000    
Brazil Business [Member] | Level 3 [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]              
Liability related to guaranty         0    
Lawn and Garden Business [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]              
Interest rate   6.00%          
Notes Receivable, Fair Value Disclosure   $ 17,800,000          
Notes receivable, carrying value       $ 18,700,000 19,100,000 18,700,000  
Amount of consideration received   110,000,000          
Proceeds from divestiture of businesses   90,000,000          
Promissory note receivable   $ 20,000,000          
Maturity date of promissory note receivable   2020-08          
Discontinued operations pre-tax charge         1,225,000    
Escrow deposit released         7,400,000    
Escrow deposit   $ 8,600,000          
Escrow deposit due to be settled date   2016-08          
Adjustment to working capital             4,000,000
Provision for loss on note receivable     $ 23,000,000        
Lawn and Garden Business [Member] | Notes Receivable [Member]              
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]              
Interest income on notes receivable         $ 1,000,000 $ 1,300,000 $ 1,300,000
v3.10.0.1
Disposal of Businesses - Summary of Selected Financial Information for Discontinued Operations (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]                      
Loss from discontinued operations, net of income tax $ (788) $ (2) $ 0 $ (911) $ (20,074) $ 174 $ (489) $ (344) $ (1,701) $ (20,733) $ (10,267)
Brazil Business, Lawn and Garden Business [Member]                      
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]                      
Net sales                 0 29,976 23,683
Cost of sales                 0 25,359 20,941
Selling, general, and administrative                 1,348 6,748 5,438
(Gain) loss on disposal of assets                 0 (32) 226
Impairment charges                 0 0 8,545
Interest income, net                 0 (286) (469)
Gain (loss) on the disposal of the discontinued operations                 0 (34,956) 0
Loss from discontinued operations before income tax                 (1,348) (36,769) (10,998)
Income tax expense (benefit)                 353 (16,036) (731)
Loss from discontinued operations, net of income tax                 $ (1,701) $ (20,733) $ (10,267)
v3.10.0.1
Net Income (Loss) Per Common Share (Details) - shares
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Earnings Per Share [Abstract]      
Weighted average common shares outstanding basic 33,426,855 30,222,289 29,750,378
Dilutive effect of stock options and restricted stock (in shares)   340,357 217,534
Weighted average common shares outstanding diluted (in shares) 33,426,855 30,562,646 29,967,912
v3.10.0.1
Net Income (Loss) Per Common Share - Additional Information (Details) - shares
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Earnings Per Share [Abstract]    
Anti-dilutive securities excluded from computation of net earnings or loss per common share 242,500 551,761
v3.10.0.1
Restructuring - Restructuring Charges by Segment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Restructuring Cost And Reserve [Line Items]      
Restructuring charges $ 119 $ 7,553 $ 0
Cost of Sales [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 119 7,389 0
SG&A [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 0 164 0
Distribution [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 0 0 0
Distribution [Member] | Cost of Sales [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 0 0 0
Distribution [Member] | SG&A [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 0 0 0
Material Handling [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 119 7,553 0
Material Handling [Member] | Cost of Sales [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 119 7,389 0
Material Handling [Member] | SG&A [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 0 164 0
Corporate [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 0 0 0
Corporate [Member] | Cost of Sales [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 0 0 0
Corporate [Member] | SG&A [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges $ 0 $ 0 $ 0
v3.10.0.1
Restructuring - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Restructuring Cost And Reserve [Line Items]      
Restructuring charges $ 119 $ 7,553 $ 0
Cost of Sales [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 119 7,389 0
Other restructuring associated costs incurred   100  
General and Administrative Expense      
Restructuring Cost And Reserve [Line Items]      
Other restructuring associated costs incurred   1,000  
Facility Closing      
Restructuring Cost And Reserve [Line Items]      
Recognized gains on asset dispositions 200 3,900  
Material Handling [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 119 7,553 0
Material Handling [Member] | Cost of Sales [Member]      
Restructuring Cost And Reserve [Line Items]      
Restructuring charges 119 7,389 $ 0
Material Handling [Member] | Facility Closing      
Restructuring Cost And Reserve [Line Items]      
Total restructuring costs incurred 7,700    
Restructuring charges in employee severance and other employee-related costs 3,100    
Restructuring charges in equipment relocation and facility shut down costs 2,600    
Restructuring charges in accelerated depreciation charges on property, plant and equipment 2,000    
Restructuring charges 100 7,600  
Other restructuring associated costs incurred $ 0 $ 1,100  
v3.10.0.1
Restructuring - Summary of Restructuring Activity (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Restructuring Cost And Reserve [Line Items]      
Balance at January 1, 2017 $ 1,188    
Charges to expense 119 $ 7,553 $ 0
Cash payments (1,261) (4,372)  
Non-cash utilization (16) (1,993)  
Balance at December 31, 2017 30 1,188  
Employee Reduction [Member]      
Restructuring Cost And Reserve [Line Items]      
Balance at January 1, 2017 1,098    
Charges to expense 31 3,022  
Cash payments (1,099) (1,924)  
Balance at December 31, 2017 30 1,098  
Accelerated Depreciation [Member]      
Restructuring Cost And Reserve [Line Items]      
Charges to expense 16 1,993  
Non-cash utilization (16) (1,993)  
Other Exit Costs [Member]      
Restructuring Cost And Reserve [Line Items]      
Balance at January 1, 2017 90    
Charges to expense 72 2,538  
Cash payments $ (162) (2,448)  
Balance at December 31, 2017   $ 90  
v3.10.0.1
Other Liabilities - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Other Liabilities Disclosure [Abstract]    
Customer deposits and accrued rebates $ 3,365 $ 3,102
Dividends payable 5,260 4,478
Accrued litigation, claims and professional fees 460 417
Current portion of environmental reserves 1,229 1,322
Other accrued expenses 6,387 6,153
Other current liabilities, Total $ 16,701 $ 15,472
v3.10.0.1
Other Liabilities - Schedule of Other Liabilities (Long-term) (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Other Liabilities Disclosure [Abstract]    
Lease guarantee contingency $ 10,402  
Environmental reserves 3,702 $ 3,814
Supplemental executive retirement plan liability 2,026 2,416
Pension liability 1,207 1,318
Deferred gain on sale of assets 1,237  
Other long-term liabilities 1,220 688
Other liabilities (long-term), Total $ 19,794 $ 8,236
v3.10.0.1
Stock Compensation - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock options expired or forfeited 86,411 218,130 162,565
The total intrinsic value of all stock options exercised $ 1,745 $ 2,813 $ 1,809
Stock compensation expense 4,257 $ 3,626 $ 3,357
Total unrecognized compensation cost related to non-vested share based compensation arrangements $ 4,737    
Unrecognized compensation cost period for recognition 3 years    
Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Period of expiration, term 10 years    
Restricted Stock Units [Member] | Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period, in years 1 year    
Restricted Stock Units [Member] | Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period, in years 3 years    
Performance-Based Restricted Stock Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock granted during period 268,103    
Performance-Based Restricted Stock Units [Member] | Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of established target performance criteria 0.00%    
Performance-Based Restricted Stock Units [Member] | Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of established target performance criteria 200.00%    
2017 Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized for grant under plan (in shares) 5,126,950    
v3.10.0.1
Stock Compensation - Summary of Stock Option Activity for the Period (Details) - $ / shares
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Options Granted (in shares) 255,072 397,759 271,350
Issuances under option plans, shares 191,169 375,292 334,836
Outstanding at December 31, 2017 988,167 1,183,830  
Options Exercised, Shares (in shares) (191,169) (375,292) (334,836)
Cancelled or forfeited (in shares) (86,411)    
Outstanding at December 31, 2018 965,659 988,167 1,183,830
Exercisable at December 31, 2018 521,202 539,993 934,898
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Options Granted, Average Exercise Price (in dollars per share) $ 21.30 $ 14.30 $ 11.62
Options Exercised, Average Exercise Price (in dollars per share) 14.30    
Outstanding, Average Price (in dollars per share) 15.13    
Cancelled or forfeited, average exercise price (in dollars per share) 17.65    
Outstanding, Average Price (in dollars per share) 16.69 15.13  
Exercisable, Average Exercise Price (in dollars per share) $ 16.08 16.23 14.88
Outstanding, Weighted Average Life 7 years 2 months 23 days    
Exercisable, Weighted Average Life 6 years 1 month 6 days    
Minimum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Options Exercised, Average Exercise Price (in dollars per share) $ 9.97 9.00 9.97
Maximum [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Options Exercised, Average Exercise Price (in dollars per share) $ 20.93 $ 14.77 $ 17.02
v3.10.0.1
Stock Compensation - Options outstanding and exercisable (Details) - $ / shares
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]      
Outstanding (in shares) 965,659 988,167 1,183,830
Exercise price range, minimum (in dollars per share) $ 10.10 $ 9.97 $ 9.97
Exercise price range, maximum (in dollars per share) $ 21.30 $ 20.93 $ 20.93
Exercisable (in shares) 521,202 539,993 934,898
Weighted average exercise price (in dollars per share) $ 16.08 $ 16.23 $ 14.88
v3.10.0.1
Stock Compensation - Fair Value of Stock Options Granted Assumptions Used (Details) - $ / shares
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]      
Risk free interest rate 2.90% 2.50% 1.80%
Expected dividend yield 2.50% 3.80% 4.60%
Expected life of award (in years) 4 years 4 years 1 month 6 days 8 years
Expected volatility 42.50% 50.00% 50.00%
Fair value per option $ 6.30 $ 4.47 $ 3.45
v3.10.0.1
Stock Compensation - Summary of Combined Restricted Stock Units Including Performance Based Restricted Stock Units and Restricted Stock Activity (Details) - Restricted Stock Units Including Performance Based Restricted Stock Units and Restricted Stock [Member]
12 Months Ended
Dec. 31, 2018
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Unvested (in shares) 412,650
Granted (in shares) 178,005
Vested (in shares) (104,737)
Forfeited (in shares) (62,123)
Unvested (in shares) 423,795
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]  
Granted, Average Grant Date Fair Value (in dollars per share) | $ / shares $ 21.65
Vested, Average Grant Date Fair Value (in dollars per share) | $ / shares 14.09
Forfeited, Average Grant Date Fair Value (in dollars per share) | $ / shares $ 16.94
v3.10.0.1
Equity - Additional Information (Details) - Common Shares [Member] - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
May 31, 2018
Dec. 31, 2018
Class Of Stock [Line Items]    
Shares of common stock issued in public offering   4,600,000
Secondary Public Offering [Member]    
Class Of Stock [Line Items]    
Shares of common stock issued in public offering 4,600,000  
Common stock sale price per share $ 18.50  
Net proceeds from sale of common stock in public offering $ 79.5  
Payments of offering costs $ 0.5  
v3.10.0.1
Contingencies - Additional Information (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 12 Months Ended 87 Months Ended
Jan. 31, 2019
Apr. 30, 2016
Dec. 31, 2018
Jun. 30, 2016
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2005
Dec. 31, 2018
Loss Contingencies [Line Items]                  
Other current liabilities     $ 16,701   $ 16,701 $ 15,472     $ 16,701
Other liabilities     19,794   19,794 8,236     19,794
Annual rent         3,312 3,198 $ 3,625    
New Idria Mercury Mine [Member]                  
Loss Contingencies [Line Items]                  
Financial assurance required to be provided to EPA to secure performance     2,000            
New Almaden Mine (Formerly Referred to as Guadalupe River Watershed) [Member] | Natural Resource Damage Claim [Member]                  
Loss Contingencies [Line Items]                  
Total reserve     1,500   1,500 1,500     1,500
Other current liabilities     300   300       300
Other liabilities     1,200   1,200       1,200
Expense recognized       $ 1,200     1,200 $ 800  
Accrued balance         500        
Original estimated project costs   $ 1,600              
Revised estimated project costs, Low Estimate   3,300              
Revised estimated project costs, High Estimate   $ 4,400              
Lawn and Garden Indemnification Claim [Member]                  
Loss Contingencies [Line Items]                  
Indemnification claims         10,000        
Escrow deposit     8,600   $ 8,600       8,600
Escrow deposit due to be settled date         2016-08        
Discontinued operations pre-tax charge         $ 1,225        
Amount of escrow deposits expected to release upon settlement of agreement         $ 7,400        
Lawn and Garden Indemnification Claim [Member] | Guarantee Obligation [Member]                  
Loss Contingencies [Line Items]                  
Lease expiring period         September 2025        
Annual rent         $ 2,000        
Liabilities and related pre tax charges         10,300        
Lease liabilities     10,400   10,400       10,400
Subsequent Event [Member] | New Idria Mercury Mine [Member]                  
Loss Contingencies [Line Items]                  
Prepayment amount $ 200                
Pending Litigation [Member] | New Idria Mercury Mine [Member] | EPA Notice Letter [Member]                  
Loss Contingencies [Line Items]                  
Loss contingencies, payments                 2,500
Loss contingency, Loss in period         200 1,300 $ 1,000   5,900
Total reserve     3,400   3,400 $ 3,600     3,400
Other current liabilities     900   900       900
Other liabilities     $ 2,500   $ 2,500       $ 2,500
v3.10.0.1
Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Debt Instrument [Line Items]    
Long-term Debt $ 78,000 $ 152,632
Less unamortized deferred financing fees 1,210 1,596
Long-term Debt, net of deferred financing costs 76,790 151,036
Loan Agreement [Member]    
Debt Instrument [Line Items]    
Long-term Debt   74,632
4.67% Senior Unsecured Notes due 2021 [Member]    
Debt Instrument [Line Items]    
Long-term Debt 40,000 40,000
5.25% Senior Unsecured Notes due 2024 [Member]    
Debt Instrument [Line Items]    
Long-term Debt 11,000 11,000
5.30% Senior Unsecured Notes due 2024 [Member]    
Debt Instrument [Line Items]    
Long-term Debt 15,000 15,000
5.45% Senior Unsecured Notes due 2026 [Member]    
Debt Instrument [Line Items]    
Long-term Debt $ 12,000 $ 12,000
v3.10.0.1
Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Parenthetical) (Details)
12 Months Ended
Dec. 31, 2018
4.67% Senior Unsecured Notes due 2021 [Member]  
Debt Instrument [Line Items]  
Interest rate 4.67%
Debt instrument maturity period 2021
5.25% Senior Unsecured Notes due 2024 [Member]  
Debt Instrument [Line Items]  
Interest rate 5.25%
Debt instrument maturity period 2024
5.30% Senior Unsecured Notes due 2024 [Member]  
Debt Instrument [Line Items]  
Interest rate 5.30%
Debt instrument maturity period 2024
5.45% Senior Unsecured Notes due 2026 [Member]  
Debt Instrument [Line Items]  
Interest rate 5.45%
Debt instrument maturity period 2026
v3.10.0.1
Long-Term Debt and Loan Agreements - Additional Information (Details)
1 Months Ended 3 Months Ended 12 Months Ended
May 30, 2014
USD ($)
Oct. 31, 2017
USD ($)
NoteHolder
Dec. 31, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Jan. 31, 2019
USD ($)
Sep. 30, 2017
USD ($)
Debt Instrument [Line Items]                  
Long-term Debt     $ 152,632,000   $ 78,000,000 $ 152,632,000      
Loss on extinguishment of debt     (1,900,000)   0 1,888,000 $ 0    
Unamortized deferred financing costs     1,596,000   1,210,000 1,596,000      
Interest Expense [Member]                  
Debt Instrument [Line Items]                  
Amortization expense of deferred financing costs         386,000 508,000 $ 466,000    
Minimum [Member]                  
Debt Instrument [Line Items]                  
Long-term Debt         $ 11,000,000        
Interest rate         4.67%        
Maximum [Member]                  
Debt Instrument [Line Items]                  
Long-term Debt         $ 40,000,000        
Interest rate         5.45%        
Senior Unsecured Notes [Member]                  
Debt Instrument [Line Items]                  
Face value of debt instrument with offer to be repurchased                 $ 100,000,000
Debt instrument repurchase amount   $ 22,000,000              
Outstanding principal balance of notes purchased   22,000,000              
Debt instrument repurchase amount including make-whole premium   23,800,000              
Debt instrument repurchase make-whole premium amount   $ 1,800,000              
Debt instrument repurchase date   Oct. 31, 2017              
Number of note holder accepted the offer | NoteHolder   1              
Loss on extinguishment of debt     1,900,000            
Unamortized deferred financing costs     $ 100,000     $ 100,000      
Loan Agreement [Member]                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity on line of credit $ 300,000,000     $ 200,000,000 $ 200,000,000        
Loan maturity period 2018-12     2022-03          
Remaining amount available under the line of credit         195,600,000        
Letters of credit         $ 4,400,000        
Interest rate during period         5.75% 4.94% 4.69%    
Loan Agreement [Member] | Subsequent Event [Member]                  
Debt Instrument [Line Items]                  
Letters of credit               $ 2,000,000  
v3.10.0.1
Long-Term Debt and Loan Agreements - Schedule of Debt Ratios (Details) - Unsecured Senior Notes [Member]
Dec. 31, 2018
Debt Instrument [Line Items]  
Debt Instrument, Interest Coverage Ratio, Actual 11.60%
Debt Instrument, Leverage Ratio, Actual 1.15%
Debt Instrument, Covenant, Interest Coverage Ratio Required, Minimum 3.00%
Debt Instrument, Covenant, Leverage Ratio Required, Maximum 3.25%
v3.10.0.1
Income Taxes - Additional Information (Details)
$ in Thousands
12 Months Ended
Dec. 18, 2017
USD ($)
Dec. 31, 2018
USD ($)
Transition
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Income Taxes [Line Items]        
Effective tax rate for the year   218.70% 31.00% 39.50%
Corporate income tax rate   21.00% 35.00% 35.00%
Number of foreign subsidiaries | Transition   1    
Tax cuts and jobs act of 2017 net benefit to income tax expense     $ 1,200  
Tax cuts and jobs act of 2017 due to change in tax rate deferred tax benefit     3,000  
Tax cuts and jobs act of 2017 provisional income tax expense benefit     1,800  
Tax cuts and jobs act of 2017 foreign earnings and profits tax rate liquid assets   15.50%    
Tax cuts and jobs act of 2017 foreign earnings and profits tax rate liquid assets, unremitted foreign E&P   8.00%    
Income tax expense reduction due to tax impact   $ 300    
Income tax expense associated with uncertain tax position   600    
Provision and related deferred tax liability on earnings from subsidiary   600    
Deferred tax assets, operating loss carryforwards   1,982 1,982  
Deferred tax assets, valuation allowance   1,982 1,982  
Unrecognized tax benefits that would impact effective tax rate   $ 1,000 $ 400 $ 500
Earliest Tax Year [Member] | State and Local [Member]        
Income Taxes [Line Items]        
Income tax examination for tax years   2013    
Earliest Tax Year [Member] | Non-U.S [Member]        
Income Taxes [Line Items]        
Income tax examination for tax years   2013    
Latest Tax Year [Member] | State and Local [Member]        
Income Taxes [Line Items]        
Income tax examination for tax years   2017    
Latest Tax Year [Member] | Non-U.S [Member]        
Income Taxes [Line Items]        
Income tax examination for tax years   2017    
Brazil Business [Member]        
Income Taxes [Line Items]        
Capital loss incurred divestiture $ 9,500      
Deferred tax assets, operating loss carryforwards 2,000      
Deferred tax assets, valuation allowance   $ 2,000   $ 600
Tax benefit as a result of a worthless stock deduction $ 15,000      
Reduced estimated tax benefit as a result of a worthless stock deduction   $ 700    
v3.10.0.1
Income Taxes - Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Tax Rate (Details)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract]      
Statutory Federal income tax rate 21.00% 35.00% 35.00%
State income taxes - net of Federal tax benefit 42.50% 8.30% 3.00%
Foreign tax rate differential 3.90% (1.60%) (0.90%)
Domestic production deduction (0.00%) (5.20%) (3.20%)
Non-deductible expenses 93.80% 0.40% 2.90%
Impact of tax law changes 22.10% (7.40%) 0.00%
Changes in unrecognized tax benefits 42.90% 0.90% (0.80%)
Foreign tax incentives (3.10%) (0.00%) (0.40%)
Valuation allowances 0.00% 0.00% 3.20%
Other (4.40%) 0.60% 0.70%
Effective tax rate for the year 218.70% 31.00% 39.50%
v3.10.0.1
Income Taxes - Income (Loss) from Continuing Operations Before Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]      
United States $ 419 $ 12,979 $ 17,010
Foreign 970 2,729 1,709
Income from continuing operations before income taxes $ 1,389 $ 15,708 $ 18,719
v3.10.0.1
Income Taxes - Income Tax Expense (Benefit) from Continuing Operations (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Current      
Federal $ 9,694 $ 6,304 $ 5,684
Foreign 1,218 1,821 515
State and local 1,575 2,402 641
Current Income Tax Expense (Benefit) 12,487 10,527 6,840
Deferred      
Federal (7,910) (4,394) (413)
Foreign (718) (883) 741
State and local (822) (386) 227
Deferred Income Tax Expense (Benefit) $ (9,450) $ (5,663) $ 555
v3.10.0.1
Income Taxes - Significant Components of the Company's Deferred Taxes (Details) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Deferred income tax assets    
Compensation $ 2,774 $ 3,030
Inventory valuation 695 502
Allowance for uncollectible accounts 237 268
Provision for loss on note receivable 5,031 0
Non-deductible accruals 4,196 2,195
Non-deductible intangibles 1,574 1,193
State deferred taxes 843 0
Capital loss carryforwards 1,982 1,982
Net operating loss carryforwards 0 405
Deferred tax assets, gross 17,332 9,575
Valuation allowance (1,982) (1,982)
Deferred Tax Assets, Net of Valuation Allowance 15,350 7,593
Deferred income tax liabilities    
Property, plant and equipment 4,247 6,255
Tax-deductible goodwill 5,089 5,202
State deferred taxes 0 132
Other 744 149
Deferred tax liabilities, gross 10,080 11,738
Net deferred income tax (liability)   $ 4,145
Net deferred income tax asset $ 5,270  
v3.10.0.1
Income Taxes - Activity Related to the Company's Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at January 1 $ 359 $ 478 $ 151
Increases related to previous year tax positions 596 359 478
Reductions due to lapse of applicable statute of limitations 0 (478) (151)
Reduction due to settlements 0 0 0
Balance at December 31 $ 955 $ 359 $ 478
v3.10.0.1
Retirement Plans - Net Periodic Pension Cost (Details) - Pension Plans, Defined Benefit [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]      
Interest cost $ 224 $ 253 $ 270
Expected return on assets (317) (295) (319)
Amortization of net loss 84 96 82
Net periodic pension cost $ (9) $ 54 $ 33
v3.10.0.1
Retirement Plans - Reconciliation of Changes in Projected Benefit Obligations (Details) - Pension Plans, Defined Benefit [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Projected benefit obligation at beginning of year $ 6,579 $ 6,503  
Interest cost 224 253 $ 270
Actuarial loss (gain) (362) 276  
Expenses paid (135) (84)  
Benefits paid (362) (369)  
Projected benefit obligation at end of year 5,944 6,579 $ 6,503
Accumulated benefit obligation at end of year $ 5,944 $ 6,579  
v3.10.0.1
Retirement Plans - Assumptions Used to Determine the Net Periodic Benefit Cost and Benefit Obligations (Details) - Pension Plans, Defined Benefit [Member]
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]      
Discount rate for net periodic pension cost 3.50% 4.00% 4.30%
Discount rate for benefit obligations 4.20% 3.50% 4.00%
Expected long-term return of plan assets 7.50% 7.75% 7.75%
v3.10.0.1
Retirement Plans - Change in the Fair Value of the Plans Assets (Details) - Pension Plans, Defined Benefit [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]    
Fair value of plan assets at beginning of year $ 5,261 $ 5,183
Actual return on plan assets (27) 531
Company contributions 0 0
Expenses paid (135) (84)
Benefits paid (362) (369)
Fair value of plan assets at end of year $ 4,737 $ 5,261
v3.10.0.1
Retirement Plans - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]        
Redemption fees for mutual fund's net asset value   $ 0    
Executive Officer [Member] | SERP [Member]        
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]        
Plan expense recognized   $ 33 $ 128 $ 192
Discount rate for benefit obligations   4.20% 3.50%  
Accrued compensation   $ 2,449 $ 2,923  
401K Plan [Member]        
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]        
Recognized expense   2,216 $ 2,302 $ 2,324
Scenario Forecast [Member]        
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]        
Contribution to plan $ 30      
Mutual Funds [Member]        
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]        
Fair value of plan assets   2,352    
Pooled Separate Accounts [Member]        
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]        
Fair value of plan assets   $ 2,385    
v3.10.0.1
Retirement Plans - Weighted Average Asset Allocations (Details) - Pension Plans, Defined Benefit [Member]
Dec. 31, 2018
Dec. 31, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Weighted average asset allocations 100.00% 100.00%
U.S. Equities securities [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Weighted average asset allocations 50.00% 72.00%
U.S. Debt securities [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Weighted average asset allocations 50.00% 24.00%
Cash [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Weighted average asset allocations   4.00%
v3.10.0.1
Retirement Plans - Reconciliation of the Funded Status of the Plan (Details) - Pension Plans, Defined Benefit [Member] - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Projected benefit obligation $ 5,944 $ 6,579 $ 6,503
Plan assets at fair value 4,737 5,261 $ 5,183
Funded status $ (1,207) $ (1,318)  
v3.10.0.1
Retirement Plans - Benefit Payments Projected for the Plan (Details) - Pension Plans, Defined Benefit [Member]
$ in Thousands
Dec. 31, 2018
USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
2019 $ 372
2020 376
2021 377
2022 374
2023 374
2024-2028 $ 1,889
v3.10.0.1
Leases - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 27, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Sale Leaseback Transaction [Line Items]        
Aggregate rental expense for leased assets   $ 3,312 $ 3,198 $ 3,625
Proceeds from sale of property, plant and equipment   2,633 $ 11,058 $ 450
California [Member] | Distribution [Member]        
Sale Leaseback Transaction [Line Items]        
Proceeds from sale of property, plant and equipment $ 2,300      
Gain on sale of distribution center $ 700 2,000    
Remaining gain on sale of distribution center   $ 1,300    
Facility remaining lease period   10 years    
Base annual rent, per year   $ 100    
Facility lease period   10 years    
Base annual rent, first year   $ 100    
Percentage of annual rent increase in remaining lease period   3.00%    
v3.10.0.1
Leases - Future Minimum Rental Commitments (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Operating Leases, Future Rental Payments  
2019 $ 2,492
2020 1,739
2021 982
2022 966
2023 841
Thereafter 811
Total $ 7,831
v3.10.0.1
Industry Segments - Additional Information (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
Segment
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Segment Reporting Information [Line Items]                      
Number of operating segments | Segment                 2    
Net sales $ 138,388 $ 135,219 $ 140,560 $ 152,568 $ 140,106 $ 135,113 $ 135,252 $ 136,572 $ 566,735 $ 547,043 $ 534,379
Foreign Countries [Member]                      
Segment Reporting Information [Line Items]                      
Net sales                 50,600 53,900 64,200
Long-lived assets $ 14,100       $ 17,600       14,100 17,600  
Export Sales [Member] | Foreign Countries [Member]                      
Segment Reporting Information [Line Items]                      
Net sales                 $ 19,600 $ 17,200 $ 18,600
Sales [Member] | Customer Concentration Risk [Member] | Canada [Member]                      
Segment Reporting Information [Line Items]                      
Concentration risk percentage                 4.10% 2.40% 4.60%
v3.10.0.1
Industry Segments - Schedule of reporting information by segment (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting Information [Line Items]                      
Net sales $ 138,388 $ 135,219 $ 140,560 $ 152,568 $ 140,106 $ 135,113 $ 135,252 $ 136,572 $ 566,735 $ 547,043 $ 534,379
Total operating income                 6,327 24,888 27,362
Interest expense, net                 (4,938) (7,292) (8,643)
Loss on extinguishment of debt         1,900       0 (1,888) 0
Income from continuing operations before income taxes                 1,389 15,708 18,719
Identifiable Assets 348,645       355,942       348,645 355,942 381,684
Capital Additions, Net                 5,123 5,814 12,489
Depreciation and Amortization                 26,139 30,831 31,792
Operating Segments [Member] | Material Handling [Member]                      
Segment Reporting Information [Line Items]                      
Net sales                 417,199 391,313 363,956
Total operating income                 57,948 38,874 40,776
Identifiable Assets 229,962       257,863       229,962 257,863 268,634
Capital Additions, Net                 4,500 5,165 10,933
Depreciation and Amortization                 24,159 28,506 29,270
Operating Segments [Member] | Distribution [Member]                      
Segment Reporting Information [Line Items]                      
Net sales                 149,636 156,428 170,660
Total operating income                 7,441 9,073 12,834
Identifiable Assets 48,575       49,822       48,575 49,822 56,072
Capital Additions, Net                 587 622 1,424
Depreciation and Amortization                 1,169 1,174 1,221
Operating Segments [Member] | Discontinued Operations [Member]                      
Segment Reporting Information [Line Items]                      
Identifiable Assets 0       0       0 0 20,707
Inter-company sales [Member]                      
Segment Reporting Information [Line Items]                      
Net sales                 (100) (698) (237)
Corporate [Member]                      
Segment Reporting Information [Line Items]                      
Total operating income                 (59,062) (23,059) (26,248)
Identifiable Assets $ 70,108       $ 48,257       70,108 48,257 36,271
Capital Additions, Net                 36 27 132
Depreciation and Amortization                 $ 811 $ 1,151 $ 1,301
v3.10.0.1
Subsequent Events (Unaudited) - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Mar. 01, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Subsequent Event [Line Items]        
Proceeds from sale of distribution center   $ 2,633 $ 11,058 $ 450
Subsequent Event [Member] | Ohio [Member] | Material Handling [Member]        
Subsequent Event [Line Items]        
Proceeds from sale of distribution center $ 4,500      
v3.10.0.1
Summarized Quarterly Results of Operations (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]                      
Net Sales $ 138,388 $ 135,219 $ 140,560 $ 152,568 $ 140,106 $ 135,113 $ 135,252 $ 136,572 $ 566,735 $ 547,043 $ 534,379
Gross Profit 42,096 42,091 47,991 47,115 38,257 39,143 38,292 41,761 179,293 157,453 161,898
Income (loss) from continuing operations 3,126 (21,137) 8,608 7,755 1,821 3,083 2,482 3,458 (1,648) 10,844 11,324
Income (loss) from discontinued operations, net (788) (2) 0 (911) (20,074) 174 (489) (344) (1,701) (20,733) (10,267)
Net income (loss) $ 2,338 $ (21,139) $ 8,608 $ 6,844 $ (18,253) $ 3,257 $ 1,993 $ 3,114 $ (3,349) $ (9,889) $ 1,057
Basic (in dollars per share) $ 0.09 $ (0.60) $ 0.26 $ 0.25 $ 0.06 $ 0.10 $ 0.08 $ 0.12 $ (0.05) $ 0.36 $ 0.38
Diluted (in dollars per share) 0.09 (0.60) 0.26 0.25 0.06 0.10 0.08 0.11 (0.05) 0.35  
Basic (in dollars per share) (0.02) 0 0 (0.03) (0.66) 0.01 (0.01) (0.02) (0.05) (0.69) (0.35)
Diluted (in dollars per share) (0.02) 0 0 (0.03) (0.65) 0.01 (0.01) (0.01) (0.05) (0.68) (0.35)
Basic (in dollars per share) 0.07 (0.60) 0.26 0.22 (0.60) 0.11 0.07 0.10 (0.10) (0.33) 0.03
Diluted (in dollars per share) $ 0.07 $ (0.60) $ 0.26 $ 0.22 $ (0.59) $ 0.11 $ 0.07 $ 0.10 $ (0.10) $ (0.33) $ 0.03
v3.10.0.1
Summarized Quarterly Results of Operations (Parenthetical) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Quarterly Financial Information Disclosure [Line Items]        
U.S. tax benefit as a result of a worthless stock deduction   $ 3,037 $ 4,864 $ 7,395
Loss on extinguishment of debt $ 1,900 $ 0 $ (1,888) $ 0
Tax cuts and jobs act of 2017 net benefit to income tax expense 1,200      
Brazil Business [Member]        
Quarterly Financial Information Disclosure [Line Items]        
Loss on sale of business 35,000      
U.S. tax benefit as a result of a worthless stock deduction $ 15,000