MYERS INDUSTRIES INC, 10-Q filed on 8/2/2019
Quarterly Report
v3.19.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2019
Jul. 31, 2019
Document And Entity Information [Abstract]    
Entity Registrant Name MYERS INDUSTRIES INC  
Entity Central Index Key 0000069488  
Trading Symbol MYE  
Document Type 10-Q  
Document Period End Date Jun. 30, 2019  
Amendment Flag false  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Filer Category Accelerated Filer  
Entity Shell Company false  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   35,493,582
Entity File Number 1-8524  
Entity Tax Identification Number 340778636  
Entity Address, Address Line One 1293 South Main Street  
Entity Address, City or Town Akron  
Entity Address, State or Province Ohio  
Entity Address, Postal Zip Code 44301  
City Area Code 330  
Local Phone Number 253-5592  
v3.19.2
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Statement [Abstract]        
Net sales $ 134,285 $ 140,560 $ 273,400 $ 293,128
Cost of sales 87,349 92,569 180,905 198,022
Gross profit 46,936 47,991 92,495 95,106
Selling, general and administrative expenses 36,809 34,506 71,277 69,979
(Gain) loss on disposal of fixed assets (55) 66 (98) (314)
Impairment charges 0 308 916 308
Operating income 10,182 13,111 20,400 25,133
Interest expense, net 1,017 1,313 2,066 2,952
Income from continuing operations before income taxes 9,165 11,798 18,334 22,181
Income tax expense 2,559 3,190 5,085 5,818
Income from continuing operations 6,606 8,608 13,249 16,363
Income (loss) from discontinued operations, net of income tax 0 0 127 (911)
Net income $ 6,606 $ 8,608 $ 13,376 $ 15,452
Income per common share from continuing operations:        
Basic $ 0.19 $ 0.26 $ 0.37 $ 0.52
Diluted 0.18 0.26 0.37 0.51
Income (loss) per common share from discontinued operations:        
Basic 0 0 0 (0.03)
Diluted 0 0 0 (0.03)
Net income per common share:        
Basic 0.19 0.26 0.37 0.49
Diluted $ 0.18 $ 0.26 $ 0.37 $ 0.48
v3.19.2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]        
Net income $ 6,606 $ 8,608 $ 13,376 $ 15,452
Other comprehensive income (loss)        
Adoption of ASU 2018-02       (315)
Foreign currency translation adjustment 758 (123) 1,535 (1,843)
Pension liability, net of tax expense of $67 in 2018       201
Total other comprehensive income (loss) 758 (123) 1,535 (1,957)
Comprehensive income $ 7,364 $ 8,485 $ 14,911 $ 13,495
v3.19.2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical)
$ in Thousands
6 Months Ended
Jun. 30, 2018
USD ($)
Statement Of Income And Comprehensive Income [Abstract]  
Tax expense on pension liability $ 67
v3.19.2
Condensed Consolidated Statements of Financial Position - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Current Assets    
Cash $ 75,205 $ 58,894
Accounts receivable, less allowances of $1,947 and $2,259, respectively 73,120 72,939
Income tax receivable 0 4,892
Inventories, net 42,341 43,596
Prepaid expenses and other current assets 4,600 2,534
Total Current Assets 195,266 182,855
Other Assets    
Property, plant, and equipment, net 57,216 65,460
Right of use asset - operating leases 5,983 0
Goodwill 59,505 59,068
Intangible assets, net 26,583 30,280
Deferred income taxes 6,490 5,270
Other 1,953 5,712
Total Assets 352,996 348,645
Current Liabilities    
Accounts payable 52,827 60,849
Accrued expenses    
Employee compensation 12,859 16,531
Income taxes 1,182 0
Taxes, other than income taxes 1,273 1,403
Accrued interest 1,785 1,939
Other current liabilities 14,639 16,701
Operating lease liability - short-term 2,000 0
Total Current Liabilities 86,565 97,423
Long-term debt 76,983 76,790
Operating lease liability - long-term 4,225 0
Other liabilities 22,813 19,794
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 35,484,312 and 35,374,121; net of treasury shares of 7,068,145 and 7,178,336, respectively) 21,646 21,547
Additional paid-in capital 294,066 292,558
Accumulated other comprehensive loss (16,745) (18,280)
Retained deficit (136,557) (141,187)
Total Shareholders’ Equity 162,410 154,638
Total Liabilities and Shareholders’ Equity $ 352,996 $ 348,645
v3.19.2
Condensed Consolidated Statements of Financial Position (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Current Assets    
Allowance for Doubtful Accounts Receivable, Current $ 1,947 $ 2,259
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) 35,484,312 35,374,121
Common shares, treasury (in shares) 7,068,145 7,178,336
v3.19.2
Condensed 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, 2017 $ 93,752 $ 18,547 $ 209,253 $ (14,541) $ (119,507)
Stockholders' Equity [Roll Forward]          
Net income 15,452 0 0 0 15,452
Foreign currency translation adjustment (1,843) 0 0 (1,843) 0
Shares issued under incentive plans, net of shares withheld for tax 504 77 427 0 0
Stock compensation expense 2,692 0 2,692 0 0
Pension liability, net of tax 201 0 0 201 0
Shares issued in public offering, netof equity issuance costs 79,522 2,806 76,716 0 0
Declared dividends (9,019) 0 0 0 (9,019)
Ending balance at Jun. 30, 2018 181,261 21,430 289,088 (16,498) (112,759)
Beginning balance at Mar. 31, 2018 95,926 18,598 210,248 (16,375) (116,545)
Stockholders' Equity [Roll Forward]          
Net income 8,608 0 0 0 8,608
Foreign currency translation adjustment (123) 0 0 (123) 0
Shares issued under incentive plans, net of shares withheld for tax 411 26 385 0 0
Stock compensation expense 1,739 0 1,739 0 0
Shares issued in public offering, netof equity issuance costs 79,522 2,806 76,716 0 0
Declared dividends (4,822) 0 0 0 (4,822)
Ending balance at Jun. 30, 2018 181,261 21,430 289,088 (16,498) (112,759)
Stockholders' Equity [Roll Forward]          
Adoption of ASU | ASU 2018-02 [Member] 0 0 0 (315) 315
Beginning balance at Dec. 31, 2018 154,638 21,547 292,558 (18,280) (141,187)
Stockholders' Equity [Roll Forward]          
Net income 13,376 0 0 0 13,376
Foreign currency translation adjustment 1,535 0 0 1,535 0
Shares issued under incentive plans, net of shares withheld for tax (613) 99 (712) 0 0
Stock compensation expense 2,220 0 2,220 0 0
Declared dividends (9,651) 0 0 0 (9,651)
Ending balance at Jun. 30, 2019 162,410 21,646 294,066 (16,745) (136,557)
Beginning balance at Mar. 31, 2019 158,426 21,627 292,608 (17,503) (138,306)
Stockholders' Equity [Roll Forward]          
Net income 6,606 0 0 0 6,606
Foreign currency translation adjustment 758 0 0 758 0
Shares issued under incentive plans, net of shares withheld for tax 215 19 196 0 0
Stock compensation expense 1,262 0 1,262 0 0
Declared dividends (4,857) 0 0 0 (4,857)
Ending balance at Jun. 30, 2019 162,410 21,646 294,066 (16,745) (136,557)
Stockholders' Equity [Roll Forward]          
Adoption of ASU | ASU 2016-02 [Member] $ 905 $ 0 $ 0 $ 0 $ 905
v3.19.2
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Tax expense on pension liability       $ 67
Retained Deficit [Member]        
Tax amount related to retained deficit     $ 332  
Dividends declared per share $ 0.14 $ 0.14 $ 0.27 $ 0.27
Accumulated Other Comprehensive Income (Loss) [Member]        
Tax expense on pension liability       $ 67
v3.19.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash Flows From Operating Activities    
Net income $ 13,376 $ 15,452
Income (loss) from discontinued operations, net of income taxes 127 (911)
Income from continuing operations 13,249 16,363
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operating activities    
Depreciation 8,051 9,042
Amortization 4,046 4,315
Accelerated depreciation associated with restructuring activities 0 16
Non-cash stock-based compensation expense 2,220 2,305
(Gain) loss on disposal of fixed assets (98) (314)
Impairment charges 916 308
Other 340 (215)
Payments on performance based compensation (413) (1,249)
Other long-term liabilities 3,514 (63)
Cash flows provided by (used for) working capital    
Accounts receivable (56) 9,106
Inventories 1,450 (2,454)
Prepaid expenses and other current assets (2,041) (1,807)
Accounts payable and accrued expenses (15,005) (8,130)
Net cash provided by (used for) operating activities - continuing operations 16,173 27,223
Net cash provided by (used for) operating activities - discontinued operations 7,297 981
Net cash provided by (used for) operating activities 23,470 28,204
Cash Flows From Investing Activities    
Capital expenditures (4,406) (2,318)
Proceeds from sale of property, plant and equipment 7,514 2,633
Net cash provided by (used for) investing activities - continuing operations 3,108 315
Net cash provided by (used for) investing activities - discontinued operations 0 0
Net cash provided by (used for) investing activities 3,108 315
Cash Flows From Financing Activities    
Net borrowings (repayments) on credit facility 0 (72,491)
Cash dividends paid (9,733) (8,287)
Proceeds from issuance of common stock 365 875
Proceeds from public offering of common stock, net of equity issuance costs 0 79,522
Shares withheld for employee taxes on equity awards (978) (371)
Net cash provided by (used for) financing activities - continuing operations (10,346) (752)
Net cash provided by (used for) financing activities - discontinued operations 0 0
Net cash provided by (used for) financing activities (10,346) (752)
Foreign exchange rate effect on cash 79 (6)
Net increase in cash and restricted cash 16,311 27,761
Cash and restricted cash at January 1 58,894 11,179
Cash and restricted cash at June 30 $ 75,205 $ 38,940
v3.19.2
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Summary of Significant Accounting Policies

1.  Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”), and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of June 30, 2019, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and six months ended June 30, 2019 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2019.

Accounting Standards Adopted

In February 2016, the FASB issued ASU 2016-02, Leases, which created Accounting Standards Codification (“ASC”) Topic 842. Under ASU 2016-02, an entity recognizes right-of-use assets and lease liabilities on its balance sheet, and discloses key information about the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company adopted the new guidance effective January 1, 2019, using the optional transition method, which required application of the new guidance to only those leases that existed at the date of adoption. The Company elected the “package of practical expedients,” which permitted the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected to apply the guidance at a portfolio level and use the discount rate corresponding to the remaining lease term at transition. Adoption of the new standard resulted in the recognition of right-of-use assets and lease liabilities of $5.9 million and $6.2 million, respectively, on January 1, 2019. The difference between the right-of-use assets and lease liabilities related primarily to the removal of previously recorded accrued rent balances as a result of recording straight-line rent expense for certain leases. In addition, the adoption resulted in an adjustment to opening retained earnings (deficit) of approximately $0.9 million, net of tax, on January 1, 2019. This cumulative-effect transition adjustment to opening retained earnings (deficit) related to the recognition of the remaining deferred gain on the sale-leaseback transaction that occurred in 2018. The standard did not have a material impact on the Company’s condensed consolidated results of operations or cash flows.

The following tables summarize the impacts of ASC 842 on the Company’s condensed consolidated financial statements:

 

 

 

For the Quarter Ended June 30, 2019

 

 

 

As Reported

 

 

Adjustments

 

 

Balances Without

Adoption of

ASC 842

 

Net sales

 

$

134,285

 

 

$

 

 

$

134,285

 

Cost of sales

 

 

87,349

 

 

 

 

 

 

87,349

 

Gross profit

 

 

46,936

 

 

 

 

 

 

46,936

 

Selling, general and administrative expenses

 

 

36,809

 

 

 

(34

)

 

 

36,775

 

(Gain) loss on disposal of fixed assets

 

 

(55

)

 

 

 

 

 

(55

)

Operating income

 

 

10,182

 

 

 

34

 

 

 

10,216

 

Interest expense, net

 

 

1,017

 

 

 

 

 

 

1,017

 

Income from continuing operations before income taxes

 

 

9,165

 

 

 

34

 

 

 

9,199

 

Income tax expense

 

 

2,559

 

 

 

9

 

 

 

2,568

 

Income from continuing operations

 

$

6,606

 

 

$

25

 

 

$

6,631

 

 

 

 

For the Six Months Ended June 30, 2019

 

 

 

As Reported

 

 

Adjustments

 

 

Balances Without

Adoption of

ASC 842

 

Net sales

 

$

273,400

 

 

$

 

 

$

273,400

 

Cost of sales

 

 

180,905

 

 

 

 

 

 

180,905

 

Gross profit

 

 

92,495

 

 

 

 

 

 

92,495

 

Selling, general and administrative expenses

 

 

71,277

 

 

 

(67

)

 

 

71,210

 

(Gain) loss on disposal of fixed assets

 

 

(98

)

 

 

 

 

 

(98

)

Impairment charges

 

 

916

 

 

 

 

 

 

916

 

Operating income

 

 

20,400

 

 

 

67

 

 

 

20,467

 

Interest expense, net

 

 

2,066

 

 

 

 

 

 

2,066

 

Income from continuing operations before income taxes

 

 

18,334

 

 

 

67

 

 

 

18,401

 

Income tax expense

 

 

5,085

 

 

 

18

 

 

 

5,103

 

Income from continuing operations

 

$

13,249

 

 

$

49

 

 

$

13,298

 

 

 

 

 

As of  June 30, 2019

 

 

 

As Reported

 

 

Adjustments

 

 

Balances Without

Adoption of

ASC 842

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Right of use asset - operating leases

 

$

5,983

 

 

$

(5,983

)

 

$

 

Deferred tax asset

 

 

6,490

 

 

 

316

 

 

 

6,806

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

14,639

 

 

$

242

 

 

$

14,881

 

Operating lease liability - short-term

 

 

2,000

 

 

 

(2,000

)

 

 

 

Operating lease liability - long-term

 

 

4,225

 

 

 

(4,225

)

 

 

 

Other liabilities

 

 

22,813

 

 

 

1,169

 

 

 

23,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

Retained deficit

 

$

(136,557

)

 

$

(853

)

 

$

(137,410

)

 

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.  The Company 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.

Fair Value Measurement

The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. 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 or 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 approximates 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 13, 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 June 30, 2019 and December 31, 2018, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated at $78.9 million and $76.8 million, respectively.

Accumulated Other Comprehensive Income (Loss)

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

 

 

 

Foreign

Currency

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance at January 1, 2019

 

$

(16,251

)

 

$

(2,029

)

 

$

(18,280

)

Other comprehensive income (loss) before reclassifications

 

 

1,535

 

 

 

 

 

 

1,535

 

Net current-period other comprehensive income (loss)

 

 

1,535

 

 

 

 

 

 

1,535

 

Balance at June 30, 2019

 

$

(14,716

)

 

$

(2,029

)

 

$

(16,745

)

 

 

v3.19.2
Revenue Recognition
6 Months Ended
Jun. 30, 2019
Revenue Recognition [Abstract]  
Revenue Recognition

2.  Revenue Recognition

The following tables disaggregate the Company’s revenue by major market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended June 30, 2019

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

22,515

 

 

$

 

 

$

 

 

$

22,515

 

Vehicle

 

 

21,962

 

 

 

 

 

 

 

 

 

21,962

 

Food and beverage

 

 

16,818

 

 

 

 

 

 

 

 

 

16,818

 

Industrial

 

 

34,607

 

 

 

 

 

 

(12

)

 

 

34,595

 

Auto aftermarket

 

 

 

 

 

38,395

 

 

 

 

 

 

38,395

 

Total net sales

 

$

95,902

 

 

$

38,395

 

 

$

(12

)

 

$

134,285

 

 

 

 

For the Quarter Ended June 30, 2018

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

27,046

 

 

$

 

 

$

 

 

$

27,046

 

Vehicle

 

 

26,758

 

 

 

 

 

 

 

 

 

26,758

 

Food and beverage

 

 

15,308

 

 

 

 

 

 

 

 

 

15,308

 

Industrial

 

 

34,018

 

 

 

 

 

 

(47

)

 

 

33,971

 

Auto aftermarket

 

 

 

 

 

37,477

 

 

 

 

 

 

37,477

 

Total net sales

 

$

103,130

 

 

$

37,477

 

 

$

(47

)

 

$

140,560

 

 

 

 

For the Six Months Ended June 30, 2019

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

40,300

 

 

$

 

 

$

 

 

$

40,300

 

Vehicle

 

 

44,482

 

 

 

 

 

 

 

 

 

44,482

 

Food and beverage

 

 

41,967

 

 

 

 

 

 

 

 

 

41,967

 

Industrial

 

 

72,104

 

 

 

 

 

 

(22

)

 

 

72,082

 

Auto aftermarket

 

 

 

 

 

74,569

 

 

 

 

 

 

74,569

 

Total net sales

 

$

198,853

 

 

$

74,569

 

 

$

(22

)

 

$

273,400

 

 

 

 

For the Six Months Ended June 30, 2018

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

44,277

 

 

$

 

 

$

 

 

$

44,277

 

Vehicle

 

 

52,301

 

 

 

 

 

 

 

 

 

52,301

 

Food and beverage

 

 

52,965

 

 

 

 

 

 

 

 

 

52,965

 

Industrial

 

 

70,396

 

 

 

 

 

 

(69

)

 

 

70,327

 

Auto aftermarket

 

 

 

 

 

73,258

 

 

 

 

 

 

73,258

 

Total net sales

 

$

219,939

 

 

$

73,258

 

 

$

(69

)

 

$

293,128

 

 

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 Condensed Consolidated Statement of Financial Position (Unaudited) related to revenue recognition include:

 

 

 

June 30,

 

 

December 31,

 

 

Statement of Financial

Position

 

 

2019

 

 

2018

 

 

Classification

Returns, discounts and other allowances

 

$

(606

)

 

$

(1,169

)

 

Accounts receivable

Right of return asset

 

 

322

 

 

 

535

 

 

Inventories, net

Customer deposits

 

 

(115

)

 

 

(806

)

 

Other current liabilities

Accrued rebates

 

 

(2,023

)

 

 

(2,559

)

 

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, General and Administrative Expenses for the Company’s manufacturing business and as Cost of Sales for the Company’s distribution business in the accompanying Condensed Consolidated Statements of Operations (Unaudited). The Company incurred costs for shipments to customers in Selling, General and Administrative Expenses of approximately $2.0 million and $2.6 million for the quarters ended June 30, 2019 and 2018, respectively, and $4.1 million and $5.3 million for the six months ended June 30, 2019 and 2018, respectively, and in Cost of Sales of approximately $1.5 million and $1.4 million for the quarters ended June 30, 2019 and 2018, respectively, and $2.9 million and $2.8 million for the six months ended June 30, 2019 and 2018, respectively. All other internal distribution costs are recorded in Selling, General and Administrative 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.

v3.19.2
Assets Held for Sale
6 Months Ended
Jun. 30, 2019
Property Plant And Equipment Assets Held For Sale Disclosure [Abstract]  
Assets Held for Sale

 


3.  Assets Held for Sale

As part of its ongoing strategy, the Company continues to evaluate its various real estate holdings. As a result of these initiatives, certain buildings were reclassified as held for sale in 2018 and 2019. 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 during the quarter ended June 30, 2018. No impairment charges were recorded during the quarter ended June 30, 2019. Impairment charges of $0.9 million and $0.3 million were recorded during the six months ended June 30, 2019 and 2018, respectively. As of December 31, 2018, the Company had classified $4.4 million of buildings as held for sale, in Other Assets in the Condensed Consolidated Statements of Financial Position (Unaudited). No assets were classified as held for sale as of June 30, 2019. During the first half of 2019, the Company sold two buildings previously held for sale for total net proceeds of $7.4 million. These buildings were included in the Company’s Material Handling Segment.

v3.19.2
Disposal of Businesses
6 Months Ended
Jun. 30, 2019
Discontinued Operations And Disposal Groups [Abstract]  
Disposal of Businesses

4.  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 Brazil Business was part of the Material Handling Segment.

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 Condensed Consolidated Statements of Financial Position (Unaudited). 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.

On February 17, 2015, the Company sold its Lawn and Garden business to an entity controlled by Wingate Partners V, L.P. (“L&G Buyer”). The terms of the sale included promissory notes totaling $20 million that were originally set to mature in August 2020 with a 6% interest rate. 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, and as a result, the Company recorded a provision for expected loss of $23.0 million within continuing operations during the third quarter of 2018. The Company ceased recognizing interest income as of September 30, 2018 following the recognition of the provision.  In April 2019, the Company entered into an agreement with HC to amend and restate the notes (“Amended and Restated Notes”). The Amended and Restated Notes maintain the amounts due under the original terms of the notes, including interest, and extend the maturity to August 2022. The agreement to amend and restate the notes did not change management’s assessment of the uncertainty to collect on the notes.

In addition, approximately $8.6 million of the purchase price related to the Lawn and Garden sale was 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 12. 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 for the quarter ended March 31, 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.

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 12 for further information with regards to this guarantee.

Summarized selected financial information for discontinued operations for the quarters and six months ended June 30, 2019 and 2018 are presented in the following table:

 

 

 

For the Quarter Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net sales

 

$

 

 

$

 

 

$

 

 

$

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

 

 

 

 

 

 

 

 

 

 

1,225

 

(Gain) loss on disposal of assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

 

 

 

 

 

 

(174

)

 

 

 

Income (loss) from discontinued operations before income tax

 

 

 

 

 

 

 

 

174

 

 

 

(1,225

)

Income tax expense (benefit)

 

 

 

 

 

 

 

 

47

 

 

 

(314

)

Income (loss) from discontinued operations, net of income tax

 

$

 

 

$

 

 

$

127

 

 

$

(911

)

 

Net cash flows provided by discontinued operations in 2019 resulted from the remaining receipt of the tax benefit from a worthless stock deduction, which was recognized as part of the sale of the Brazil Business. Net cash flows provided by discontinued operations in 2018 resulted from the partial receipt of the tax benefit from the worthless stock deduction related to the Brazil Business. The worthless stock deduction allowed the Company to reduced its estimated U.S. federal tax payments in 2018 by $4.3 million. This was partially offset by the payment of expenses related to the sale of the Brazil Business and the payment of the settlement with the L&G Buyer noted above.

v3.19.2
Restructuring
6 Months Ended
Jun. 30, 2019
Restructuring And Related Activities [Abstract]  
Restructuring

5.  Restructuring

On March 20, 2019, the Company committed to implementing a restructuring plan involving its Ameri-Kart Corp. subsidiary (“Ameri-Kart”) that operates within the Company’s Material Handling Segment. The Company plans to consolidate manufacturing operations currently conducted at Ameri-Kart’s Cassopolis, Michigan facility with expanded operations in Indiana, and eliminate up to 30 positions in connection with the consolidation (the “Ameri-Kart Plan”). Total restructuring costs expected to be incurred are approximately $0.9 million, which include employee severance and other employee-related costs of approximately $0.2 million, equipment relocation and facility shut down costs of approximately $0.6 million and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment, of approximately $0.1 million. No costs were incurred during the quarter and six months ended June 30, 2019 related to the Ameri-Kart Plan. The Ameri-Kart Plan is expected to be substantially completed in the first half of 2020.

On March 18, 2019, the Company committed to implementing a restructuring plan relating to transformation initiatives within the Company’s Distribution Segment (the “Distribution Transformation Plan”) that are intended to increase sales force effectiveness, reduce costs and improve contribution margins. The Company plans to realign its Distribution Segment’s commercial sales structure, which includes the elimination of certain sales and administrative positions, as well as expand its e-commerce platform. Total restructuring costs expected to be incurred are approximately $0.9 million, primarily related to employee severance and other employee-related costs. No restructuring charges were incurred during the quarter ended June 30, 2019. During the six months ended June 30, 2019, the Company incurred restructuring charges of $0.9 million and does not expect to incur any additional restructuring charges in connection with the Distribution Transformation Plan. The Distribution Transformation Plan is expected to be substantially completed by the end of 2019.

On March 9, 2017, the Company announced a restructuring plan to improve the Company’s organizational structure and operational efficiency within the Material Handling Segment (the “Material Handling Plan”), which related primarily to anticipated facility shutdowns and associated activities.  Total restructuring costs incurred related to the Material Handling 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 Material Handling Plan are completed. The Company incurred $0.1 million of restructuring charges associated with the Material Handling Plan during the six months ended June 30, 2018. No costs were incurred during 2019.

 

As noted above, there were no restructuring charges incurred during the quarters ended June 30, 2019 and 2018. The restructuring charges noted above for the six months ended June 30, 2019 and 2018 are presented in the Condensed Consolidated Statements of Operations (Unaudited) as follows:

 

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

Segment

 

Cost of

Sales

 

 

SG&A

 

 

Total

 

 

Cost of

Sales

 

 

SG&A

 

 

Total

 

Distribution

 

$

 

 

$

901

 

 

$

901

 

 

$

 

 

$

 

 

$

 

Material Handling

 

 

 

 

 

 

 

 

 

 

 

119

 

 

 

 

 

 

119

 

Total

 

$

 

 

$

901

 

 

$

901

 

 

$

119

 

 

$

 

 

$

119

 

 

 

The table below summarizes restructuring activity for the six months ended June 30, 2019:

 

 

 

Employee

Reduction

 

 

Accelerated

Depreciation

 

 

Other Exit

Costs

 

 

Total

 

Balance at January 1, 2019

 

$

30

 

 

$

 

 

$

 

 

$

30

 

Charges to expense

 

 

901

 

 

 

 

 

 

 

 

 

901

 

Cash payments

 

 

(582

)

 

 

 

 

 

 

 

 

(582

)

Non-cash utilization

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2019

 

$

349

 

 

$

 

 

$

 

 

$

349

 

 

During the quarter ended March 31, 2019, the Company reclassified a facility that was closed in connection with the Material Handling Plan as held for sale. Based on the estimated fair value of this facility (using primarily a third party offer considered to be a Level 2 input), less estimated costs to sell, the Company recognized an impairment charge of $0.9 million during the quarter ended March 31, 2019. The facility was sold in May 2019 for net proceeds of $2.9 million, which are included in the net proceeds discussed in Note 3.

 

In addition to the restructuring charges noted above, the Company has also incurred $0.1 million and $0.2 million of other associated costs of the Distribution Transformation Plan during the quarter and six months ended June 30, 2019, respectively, which are included in Selling, General, and Administrative expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited), and are primarily related to third party consulting costs. Additional estimated costs of $0.2 million and $0.6 million are expected to be incurred throughout the remainder of 2019 related to the Ameri-Kart Plan and the Distribution Transformation Plan, respectively.

v3.19.2
Inventories
6 Months Ended
Jun. 30, 2019
Inventory Disclosure [Abstract]  
Inventories

6.  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 inventories are valued using the LIFO method of determining cost. All other inventories are valued at the FIFO method of determining cost. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation. During 2019 and 2018, one inventory pool had a reduction in inventory quantities that was expected to hold through year-end, and therefore an adjustment was recorded for the quarters and six months ended June 30, 2019 and 2018 to decrease cost of sales by $0.3 million and $0.5 million, respectively, as a result of the liquidation of LIFO inventories.

 

Inventories consisted of the following:

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Finished and in-process products

 

$

27,034

 

 

$

27,960

 

Raw materials and supplies

 

 

15,307

 

 

 

15,636

 

 

 

$

42,341

 

 

$

43,596

 

 

v3.19.2
Other Liabilities
6 Months Ended
Jun. 30, 2019
Other Liabilities Disclosure [Abstract]  
Other Liabilities

7.  Other Liabilities

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

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Customer deposits and accrued rebates

 

$

2,138

 

 

$

3,365

 

Dividends payable

 

 

5,179

 

 

 

5,260

 

Accrued litigation, claims and professional fees

 

 

768

 

 

 

460

 

Current portion of environmental reserves

 

 

1,435

 

 

 

1,229

 

Other accrued expenses

 

 

5,119

 

 

 

6,387

 

 

 

$

14,639

 

 

$

16,701

 

 

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

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Lease guarantee contingency

 

$

10,562

 

 

$

10,402

 

Environmental reserves

 

 

6,815

 

 

 

3,702

 

Supplemental executive retirement plan liability

 

 

1,871

 

 

 

2,026

 

Pension liability

 

 

1,285

 

 

 

1,207

 

Deferred gain on sale of assets

 

 

 

 

 

1,237

 

Other long-term liabilities

 

 

2,280

 

 

 

1,220

 

 

 

$

22,813

 

 

$

19,794

 

 

v3.19.2
Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

8.  Goodwill and Intangible Assets

The change in goodwill for the six months ended June 30, 2019 was as follows:

 

 

 

Distribution

 

 

Material

Handling

 

 

Total

 

January 1, 2019

 

$

505

 

 

$

58,563

 

 

$

59,068

 

Foreign currency translation

 

 

 

 

 

437

 

 

 

437

 

June 30, 2019

 

$

505

 

 

$

59,000

 

 

$

59,505

 

 

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 has indefinite-lived trade names which had a carrying value of $9.8 million at both June 30, 2019 and December 31, 2018.

v3.19.2
Net Income per Common Share
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Net Income per Common Share

9.  Net Income per Common Share

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

 

 

 

For the Quarter Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Weighted average common shares outstanding basic

 

 

35,471,795

 

 

 

32,606,838

 

 

 

35,430,392

 

 

 

31,561,194

 

Dilutive effect of stock options and restricted stock

 

 

271,768

 

 

 

477,702

 

 

 

322,662

 

 

 

520,156

 

Weighted average common shares outstanding diluted

 

 

35,743,563

 

 

 

33,084,540

 

 

 

35,753,054

 

 

 

32,081,350

 

 

Options to purchase 643,813 and 648,313 shares of common stock that were outstanding for the quarter and six months ended June 30, 2019, respectively, and 252,132 for the six months ended June 30, 2018, were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of common shares, and were therefore anti-dilutive. There were no options to purchase shares of common stock excluded from the computation of diluted earnings per share for the quarter ended June 30, 2018.

v3.19.2
Stock Compensation
6 Months Ended
Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock Compensation

10.  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 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.

In March 2019, the Company granted 235,474 stock options with a weighted average exercise price of $18.54 per share and a weighted average fair value of $5.78 per share. The fair value of options granted is estimated using a binomial lattice option pricing model. Also in March 2019, the Company granted 77,810 and 101,500 time-based and performance-based restricted stock units, respectively, with a weighted average fair value of $18.54 per share. In April 2019, the Company granted 33,152 time-based restricted stock units with a weighted average fair value of $18.10 per share.

Stock compensation expense was approximately $1.3 million and $1.2 million for the quarters ended June 30, 2019 and 2018, respectively, and $2.2 million and $2.3 million for the six months ended June 30, 2019 and 2018, respectively. These expenses are included in Selling, General and Administrative expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited). Total unrecognized compensation cost related to non-vested stock-based compensation arrangements at June 30, 2019 was approximately $7.6 million, which will be recognized over the next three years, as such compensation is earned.

v3.19.2
Equity
6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Equity

11.  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.

v3.19.2
Contingencies
6 Months Ended
Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
Contingencies

12.  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. If new information becomes available or 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 to secure its performance during the estimated 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.

A draft work plan for the RI/FS, in accordance with the AOC and related SOW, was submitted to the EPA for review and approval in July 2019. Upon preparation of the draft work plan for the RI/FS, the Company received preliminary estimates from its consultants for the cost of the execution of the work plan. Based on these preliminary estimates, the Company recognized additional expense of $4.0 million during the quarter and six months ended June 30, 2019. These preliminary estimates will continue to be refined through the finalization and approval of the draft work plan, which is anticipated to occur by the end of 2019. The Company believes it has insurance coverage that applies to the New Idria Mine and thus may be able to recover a portion of the estimated costs; however, to date, the Company has not recognized any potential recovery in its consolidated financial statements. No expenses were recorded related to the New Idria Mine in the quarter or six months ended June 30, 2018.

Since October 2011, when New Idria was added to the Superfund National Priorities List by the EPA, the Company has recognized $9.9 million of costs, of which approximately $3.2 million has been paid to date. These costs are comprised primarily of estimates to perform the RI/FS, negotiation of the AOC, identification of possible insurance resources and other PRPs, EPA oversight fees, past cost claims made by the EPA, periodic monitoring, and responses to unilateral administrative orders issued by the EPA. As of June 30, 2019, the Company has a total reserve of $6.7 million related to the New Idria Mine, of which $1.1 million is classified in Other Current Liabilities and $5.6 million in Other Liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).

It is possible that adjustments to the aforementioned reserves will be necessary as new information is obtained, including after finalization and EPA approval of the work plan for the RI/FS. 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 and the number and financial condition of other PRPs that may be named, as well as the extent of their responsibility for the remediation.

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

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.  No costs were incurred related to New Almaden in the quarters or six months ended June 30, 2019 or 2018. As of June 30, 2019, the Company has a total reserve of $1.5 million related to the New Almaden Mine, of which $0.3 million is classified in Other Current Liabilities and $1.2 million in Other Liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).

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 4, 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 4, 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 for the quarter ended March 31, 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 the second quarter of 2018.

Lawn and Garden Lease Guarantee

In connection with the sale of the Lawn and Garden business, as described in Note 4, 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 4, 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 the third quarter of 2018. The carrying value of the lease contingency as of June 30, 2019 and December 31, 2018 was $10.6 million and $10.4 million, respectively, which represents the initial liability recorded plus accretion and is included in Other Liabilities on the Condensed Consolidated Statements of Financial Position (Unaudited).

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. 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 recorded any reserves for this matter.

v3.19.2
Long-Term Debt and Loan Agreements
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Long-Term Debt and Loan Agreements

13.  Long-Term Debt and Loan Agreements

Long-term debt consisted of the following:

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Loan Agreement

 

$

 

 

$

 

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

 

 

 

78,000

 

Less unamortized deferred financing costs

 

 

1,017

 

 

 

1,210

 

 

 

$

76,983

 

 

$

76,790

 

 

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. The Company also holds Senior Unsecured Notes (“Notes”), which 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. At June 30, 2019, $78 million of the Notes were outstanding.  

Under the terms of the Loan Agreement, the Company may borrow up to $200 million, reduced for letters of credit issued. As of June 30, 2019, the Company had $194.2 million available under the Loan Agreement. The Company had $5.8 million of letters of credit issued related to insurance and other contracts requiring financial assurance in the ordinary course of business at June 30, 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 euro currency reference rate depending on the type of loan requested by the Company, plus the applicable margin as set forth in the Loan Agreement.

The weighted average interest rate on borrowings under the Company’s long-term debt was 6.27% and 5.82% for the quarters ended June 30, 2019 and 2018, respectively, and 6.25% and 5.55% for the six months ended June 30, 2019 and 2018, respectively, which includes a quarterly facility fee on the used and unused portion, as well as amortization of deferred financing costs. 

As of June 30, 2019, 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).

v3.19.2
Retirement Plans
6 Months Ended
Jun. 30, 2019
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 is as follows:

 

 

 

For the Quarter Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest cost

 

$

60

 

 

$

56

 

 

$

120

 

 

$

112

 

Expected return on assets

 

 

(46

)

 

 

(79

)

 

 

(92

)

 

 

(158

)

Amortization of net loss

 

 

24

 

 

 

21

 

 

 

48

 

 

 

42

 

Net periodic pension cost

 

$

38

 

 

$

(2

)

 

$

76

 

 

$

(4

)

 

The Company expects to make a contribution to the plan of $30 in 2019.

v3.19.2
Income Taxes
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

15.  Income Taxes

The Company’s effective tax rate was 27.9% and 27.7% for the quarter and six months ended June 30, 2019, respectively, compared to 27.0% and 26.2% for the quarter and six months ended June 30, 2018, respectively. The effective income tax rate for both periods was different than the Company’s statutory rate, primarily due to state taxes and non-deductible expenses.

The total amount of gross unrecognized tax benefits that would reduce the Company’s effective tax rate was $1.0 million at June 30, 2019 and December 31, 2018.

The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of June 30, 2019, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2015. The Company’s 2017 U.S. Federal tax return is currently under audit by the Internal Revenue Service (“IRS”). The Company is subject to state and local examinations for tax years of 2013 through 2018. In addition, the Company is subject to non-U.S. income tax examinations for tax years of 2014 through 2018.

v3.19.2
Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases

16.  Leases

The Company determines if an arrangement is a lease at inception. The Company has leases for distribution centers, warehouses, office space and equipment, with remaining lease terms of one to nine years. Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the statement of financial position; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Operating leases are included in right of use asset – operating leases (“ROU assets”), operating lease liability –short term, and operating lease liability – long term in the Condensed Consolidated Statement of Financial Position (Unaudited).

The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The Company has also elected not to separate lease and non-lease components. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

Amounts included in the Condensed Consolidated Statement of Financial Position (Unaudited) related to leases include:

 

 

 

June 30, 2019

 

Right of use asset - operating leases

 

$

5,983

 

 

 

 

 

 

Operating lease liability - short-term

 

$

2,000

 

Operating lease liability - long-term

 

 

4,225

 

Total operating lease liabilities

 

$

6,225

 

 

The components of lease expense include:

 

 

 

 

 

Quarter Ended

 

 

Six Months Ended

 

Lease Cost

 

Classification

 

June 30, 2019

 

 

June 30, 2019

 

Operating lease cost (1)

 

Cost of sales

 

$

442

 

 

$

857

 

Operating lease cost (1)

 

Selling, general and administrative expenses

 

 

426

 

 

 

897

 

Total lease cost

 

 

 

$

868

 

 

$

1,754

 

 

 

(1)

Includes short-term leases and variable lease costs, which are immaterial

Supplemental cash flow information related to leases was as follows:

 

 

 

Six Months Ended

 

Supplemental Cash Flow Information

 

June 30, 2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

Operating cash flows from operating leases

 

$

1,149

 

Right-of-use assets obtained in exchange for new lease liabilities:

 

 

 

 

Operating leases

 

 

1,037

 

 

Lease Term and Discount Rate

 

June 30, 2019

 

Weighted-average remaining lease term (years)

 

 

 

 

Operating leases

 

 

4.53

 

Weighted-average discount rate

 

 

 

 

Operating leases

 

 

5.0

%

 

Maturity of Lease Liabilities - As of June 30, 2019

 

Operating Leases

 

2019 (1)

 

$

1,203

 

2020

 

 

1,805

 

2021

 

 

1,107

 

2022

 

 

1,051

 

2023

 

 

906

 

After 2023

 

 

897

 

Total lease payments

 

 

6,969

 

Less: Interest

 

 

(744

)

Present value of lease liabilities

 

$

6,225

 

 

 

(1)

Represents amounts due in 2019 after June 30, 2019

Future minimum rental commitments (undiscounted) as of December 31, 2018 under ASC 840 were 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 during the quarter ended March 31, 2018. The remaining $1.3 million was recognized ratably over the term of the ten-year lease at approximately $0.1 million per year, until January 1, 2019 upon the adoption of ASU 2016-02 as discussed in Note 1. Simultaneous with closing 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.

v3.19.2
Industry Segments
6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Industry Segments

 


17.  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 (“CODM”) 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 encompass various niches of 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 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 $11.4 million and $13.1 million for the quarters ended June 30, 2019 and 2018, respectively, and $24.2 million and $24.6 million for the six months ended June 30, 2019 and 2018, respectively.

Summarized segment detail for the quarters and six months ended June 30, 2019 and 2018 are presented in the following table:

 

 

For the Quarter Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

95,902

 

 

$

103,130

 

 

$

198,853

 

 

$

219,939

 

Distribution

 

38,395

 

 

 

37,477

 

 

 

74,569

 

 

 

73,258

 

Inter-company sales

 

(12

)

 

 

(47

)

 

 

(22

)

 

 

(69

)

Total net sales

$

134,285

 

 

$

140,560

 

 

$

273,400

 

 

$

293,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

17,589

 

 

$

17,323

 

 

$

33,796

 

 

$

34,053

 

Distribution

 

3,328

 

 

 

2,786

 

 

 

3,541

 

 

 

4,524

 

Corporate

 

(10,735

)

 

 

(6,998

)

 

 

(16,937

)

 

 

(13,444

)

Total operating income

 

10,182

 

 

 

13,111

 

 

 

20,400

 

 

 

25,133

 

Interest expense, net

 

(1,017

)

 

 

(1,313

)

 

 

(2,066

)

 

 

(2,952

)

Income from continuing operations before income taxes

$

9,165

 

 

$

11,798

 

 

$

18,334

 

 

$

22,181

 

 

v3.19.2
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”), and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018.

In the opinion of the Company, the accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of June 30, 2019, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and six months ended June 30, 2019 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2019.

Accounting Standards Adopted and Not Yet Adopted

Accounting Standards Adopted

In February 2016, the FASB issued ASU 2016-02, Leases, which created Accounting Standards Codification (“ASC”) Topic 842. Under ASU 2016-02, an entity recognizes right-of-use assets and lease liabilities on its balance sheet, and discloses key information about the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company adopted the new guidance effective January 1, 2019, using the optional transition method, which required application of the new guidance to only those leases that existed at the date of adoption. The Company elected the “package of practical expedients,” which permitted the Company to not reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected to apply the guidance at a portfolio level and use the discount rate corresponding to the remaining lease term at transition. Adoption of the new standard resulted in the recognition of right-of-use assets and lease liabilities of $5.9 million and $6.2 million, respectively, on January 1, 2019. The difference between the right-of-use assets and lease liabilities related primarily to the removal of previously recorded accrued rent balances as a result of recording straight-line rent expense for certain leases. In addition, the adoption resulted in an adjustment to opening retained earnings (deficit) of approximately $0.9 million, net of tax, on January 1, 2019. This cumulative-effect transition adjustment to opening retained earnings (deficit) related to the recognition of the remaining deferred gain on the sale-leaseback transaction that occurred in 2018. The standard did not have a material impact on the Company’s condensed consolidated results of operations or cash flows.

The following tables summarize the impacts of ASC 842 on the Company’s condensed consolidated financial statements:

 

 

 

For the Quarter Ended June 30, 2019

 

 

 

As Reported

 

 

Adjustments

 

 

Balances Without

Adoption of

ASC 842

 

Net sales

 

$

134,285

 

 

$

 

 

$

134,285

 

Cost of sales

 

 

87,349

 

 

 

 

 

 

87,349

 

Gross profit

 

 

46,936

 

 

 

 

 

 

46,936

 

Selling, general and administrative expenses

 

 

36,809

 

 

 

(34

)

 

 

36,775

 

(Gain) loss on disposal of fixed assets

 

 

(55

)

 

 

 

 

 

(55

)

Operating income

 

 

10,182

 

 

 

34

 

 

 

10,216

 

Interest expense, net

 

 

1,017

 

 

 

 

 

 

1,017

 

Income from continuing operations before income taxes

 

 

9,165

 

 

 

34

 

 

 

9,199

 

Income tax expense

 

 

2,559

 

 

 

9

 

 

 

2,568

 

Income from continuing operations

 

$

6,606

 

 

$

25

 

 

$

6,631

 

 

 

 

For the Six Months Ended June 30, 2019

 

 

 

As Reported

 

 

Adjustments

 

 

Balances Without

Adoption of

ASC 842

 

Net sales

 

$

273,400

 

 

$

 

 

$

273,400

 

Cost of sales

 

 

180,905

 

 

 

 

 

 

180,905

 

Gross profit

 

 

92,495

 

 

 

 

 

 

92,495

 

Selling, general and administrative expenses

 

 

71,277

 

 

 

(67

)

 

 

71,210

 

(Gain) loss on disposal of fixed assets

 

 

(98

)

 

 

 

 

 

(98

)

Impairment charges

 

 

916

 

 

 

 

 

 

916

 

Operating income

 

 

20,400

 

 

 

67

 

 

 

20,467

 

Interest expense, net

 

 

2,066

 

 

 

 

 

 

2,066

 

Income from continuing operations before income taxes

 

 

18,334

 

 

 

67

 

 

 

18,401

 

Income tax expense

 

 

5,085

 

 

 

18

 

 

 

5,103

 

Income from continuing operations

 

$

13,249

 

 

$

49

 

 

$

13,298

 

 

 

 

 

As of  June 30, 2019

 

 

 

As Reported

 

 

Adjustments

 

 

Balances Without

Adoption of

ASC 842

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Right of use asset - operating leases

 

$

5,983

 

 

$

(5,983

)

 

$

 

Deferred tax asset

 

 

6,490

 

 

 

316

 

 

 

6,806

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

14,639

 

 

$

242

 

 

$

14,881

 

Operating lease liability - short-term

 

 

2,000

 

 

 

(2,000

)

 

 

 

Operating lease liability - long-term

 

 

4,225

 

 

 

(4,225

)

 

 

 

Other liabilities

 

 

22,813

 

 

 

1,169

 

 

 

23,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

Retained deficit

 

$

(136,557

)

 

$

(853

)

 

$

(137,410

)

 

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.  The Company 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.

Fair Value Measurement

Fair Value Measurement

The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. 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 or 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 approximates 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 13, 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 June 30, 2019 and December 31, 2018, the aggregate fair value of the Company's outstanding fixed rate senior unsecured notes was estimated at $78.9 million and $76.8 million, respectively.

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

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

 

 

 

Foreign

Currency

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance at January 1, 2019

 

$

(16,251

)

 

$

(2,029

)

 

$

(18,280

)

Other comprehensive income (loss) before reclassifications

 

 

1,535

 

 

 

 

 

 

1,535

 

Net current-period other comprehensive income (loss)

 

 

1,535

 

 

 

 

 

 

1,535

 

Balance at June 30, 2019

 

$

(14,716

)

 

$

(2,029

)

 

$

(16,745

)

 

 

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.

Leases

The Company determines if an arrangement is a lease at inception. The Company has leases for distribution centers, warehouses, office space and equipment, with remaining lease terms of one to nine years. Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the statement of financial position; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Operating leases are included in right of use asset – operating leases (“ROU assets”), operating lease liability –short term, and operating lease liability – long term in the Condensed Consolidated Statement of Financial Position (Unaudited).

The ROU assets represent the right to use an underlying asset for the lease term and the lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of the lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which is then applied at the portfolio level, based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The Company has also elected not to separate lease and non-lease components. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

v3.19.2
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Summary of Impacts of ASC 842 on Condensed Consolidated Financial Statements

The following tables summarize the impacts of ASC 842 on the Company’s condensed consolidated financial statements:

 

 

 

For the Quarter Ended June 30, 2019

 

 

 

As Reported

 

 

Adjustments

 

 

Balances Without

Adoption of

ASC 842

 

Net sales

 

$

134,285

 

 

$

 

 

$

134,285

 

Cost of sales

 

 

87,349

 

 

 

 

 

 

87,349

 

Gross profit

 

 

46,936

 

 

 

 

 

 

46,936

 

Selling, general and administrative expenses

 

 

36,809

 

 

 

(34

)

 

 

36,775

 

(Gain) loss on disposal of fixed assets

 

 

(55

)

 

 

 

 

 

(55

)

Operating income

 

 

10,182

 

 

 

34

 

 

 

10,216

 

Interest expense, net

 

 

1,017

 

 

 

 

 

 

1,017

 

Income from continuing operations before income taxes

 

 

9,165

 

 

 

34

 

 

 

9,199

 

Income tax expense

 

 

2,559

 

 

 

9

 

 

 

2,568

 

Income from continuing operations

 

$

6,606

 

 

$

25

 

 

$

6,631

 

 

 

 

For the Six Months Ended June 30, 2019

 

 

 

As Reported

 

 

Adjustments

 

 

Balances Without

Adoption of

ASC 842

 

Net sales

 

$

273,400

 

 

$

 

 

$

273,400

 

Cost of sales

 

 

180,905

 

 

 

 

 

 

180,905

 

Gross profit

 

 

92,495

 

 

 

 

 

 

92,495

 

Selling, general and administrative expenses

 

 

71,277

 

 

 

(67

)

 

 

71,210

 

(Gain) loss on disposal of fixed assets

 

 

(98

)

 

 

 

 

 

(98

)

Impairment charges

 

 

916

 

 

 

 

 

 

916

 

Operating income

 

 

20,400

 

 

 

67

 

 

 

20,467

 

Interest expense, net

 

 

2,066

 

 

 

 

 

 

2,066

 

Income from continuing operations before income taxes

 

 

18,334

 

 

 

67

 

 

 

18,401

 

Income tax expense

 

 

5,085

 

 

 

18

 

 

 

5,103

 

Income from continuing operations

 

$

13,249

 

 

$

49

 

 

$

13,298

 

 

 

 

 

As of  June 30, 2019

 

 

 

As Reported

 

 

Adjustments

 

 

Balances Without

Adoption of

ASC 842

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Right of use asset - operating leases

 

$

5,983

 

 

$

(5,983

)

 

$

 

Deferred tax asset

 

 

6,490

 

 

 

316

 

 

 

6,806

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Other current liabilities

 

$

14,639

 

 

$

242

 

 

$

14,881

 

Operating lease liability - short-term

 

 

2,000

 

 

 

(2,000

)

 

 

 

Operating lease liability - long-term

 

 

4,225

 

 

 

(4,225

)

 

 

 

Other liabilities

 

 

22,813

 

 

 

1,169

 

 

 

23,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

Retained deficit

 

$

(136,557

)

 

$

(853

)

 

$

(137,410

)

 

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

Accumulated Other Comprehensive Income (Loss)

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

 

 

 

Foreign

Currency

 

 

Defined Benefit

Pension Plans

 

 

Total

 

Balance at January 1, 2019

 

$

(16,251

)

 

$

(2,029

)

 

$

(18,280

)

Other comprehensive income (loss) before reclassifications

 

 

1,535

 

 

 

 

 

 

1,535

 

Net current-period other comprehensive income (loss)

 

 

1,535

 

 

 

 

 

 

1,535

 

Balance at June 30, 2019

 

$

(14,716

)

 

$

(2,029

)

 

$

(16,745

)

 

 

v3.19.2
Revenue Recognition (Tables)
6 Months Ended
Jun. 30, 2019
Revenue Recognition [Abstract]  
Schedule of Disaggregation of Revenue by Major Market

The following tables disaggregate the Company’s revenue by major market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended June 30, 2019

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

22,515

 

 

$

 

 

$

 

 

$

22,515

 

Vehicle

 

 

21,962

 

 

 

 

 

 

 

 

 

21,962

 

Food and beverage

 

 

16,818

 

 

 

 

 

 

 

 

 

16,818

 

Industrial

 

 

34,607

 

 

 

 

 

 

(12

)

 

 

34,595

 

Auto aftermarket

 

 

 

 

 

38,395

 

 

 

 

 

 

38,395

 

Total net sales

 

$

95,902

 

 

$

38,395

 

 

$

(12

)

 

$

134,285

 

 

 

 

For the Quarter Ended June 30, 2018

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

27,046

 

 

$

 

 

$

 

 

$

27,046

 

Vehicle

 

 

26,758

 

 

 

 

 

 

 

 

 

26,758

 

Food and beverage

 

 

15,308

 

 

 

 

 

 

 

 

 

15,308

 

Industrial

 

 

34,018

 

 

 

 

 

 

(47

)

 

 

33,971

 

Auto aftermarket

 

 

 

 

 

37,477

 

 

 

 

 

 

37,477

 

Total net sales

 

$

103,130

 

 

$

37,477

 

 

$

(47

)

 

$

140,560

 

 

 

 

For the Six Months Ended June 30, 2019

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

40,300

 

 

$

 

 

$

 

 

$

40,300

 

Vehicle

 

 

44,482

 

 

 

 

 

 

 

 

 

44,482

 

Food and beverage

 

 

41,967

 

 

 

 

 

 

 

 

 

41,967

 

Industrial

 

 

72,104

 

 

 

 

 

 

(22

)

 

 

72,082

 

Auto aftermarket

 

 

 

 

 

74,569

 

 

 

 

 

 

74,569

 

Total net sales

 

$

198,853

 

 

$

74,569

 

 

$

(22

)

 

$

273,400

 

 

 

 

For the Six Months Ended June 30, 2018

 

 

 

Material

Handling

 

 

Distribution

 

 

Inter-company

 

 

Consolidated

 

Consumer

 

$

44,277

 

 

$

 

 

$

 

 

$

44,277

 

Vehicle

 

 

52,301

 

 

 

 

 

 

 

 

 

52,301

 

Food and beverage

 

 

52,965

 

 

 

 

 

 

 

 

 

52,965

 

Industrial

 

 

70,396

 

 

 

 

 

 

(69

)

 

 

70,327

 

Auto aftermarket

 

 

 

 

 

73,258

 

 

 

 

 

 

73,258

 

Total net sales

 

$

219,939

 

 

$

73,258

 

 

$

(69

)

 

$

293,128

 

 

Schedule of Balances included in Condensed Consolidated Statement of Financial Position (Unaudited) Related to Revenue Recognition

Amounts included in the Condensed Consolidated Statement of Financial Position (Unaudited) related to revenue recognition include:

 

 

 

June 30,

 

 

December 31,

 

 

Statement of Financial

Position

 

 

2019

 

 

2018

 

 

Classification

Returns, discounts and other allowances

 

$

(606

)

 

$

(1,169

)

 

Accounts receivable

Right of return asset

 

 

322

 

 

 

535

 

 

Inventories, net

Customer deposits

 

 

(115

)

 

 

(806

)

 

Other current liabilities

Accrued rebates

 

 

(2,023

)

 

 

(2,559

)

 

Other current liabilities

v3.19.2
Disposal of Businesses (Tables)
6 Months Ended
Jun. 30, 2019
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 quarters and six months ended June 30, 2019 and 2018 are presented in the following table:

 

 

 

For the Quarter Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net sales

 

$

 

 

$

 

 

$

 

 

$

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

 

 

 

 

 

 

 

 

 

 

1,225

 

(Gain) loss on disposal of assets

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

 

 

 

 

 

 

(174

)

 

 

 

Income (loss) from discontinued operations before income tax

 

 

 

 

 

 

 

 

174

 

 

 

(1,225

)

Income tax expense (benefit)

 

 

 

 

 

 

 

 

47

 

 

 

(314

)

Income (loss) from discontinued operations, net of income tax

 

$

 

 

$

 

 

$

127

 

 

$

(911

)

v3.19.2
Restructuring (Tables)
6 Months Ended
Jun. 30, 2019
Restructuring And Related Activities [Abstract]  
Summary of Restructuring Charges The restructuring charges noted above for the six months ended June 30, 2019 and 2018 are presented in the Condensed Consolidated Statements of Operations (Unaudited) as follows:

 

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

Segment

 

Cost of

Sales

 

 

SG&A

 

 

Total

 

 

Cost of

Sales

 

 

SG&A

 

 

Total

 

Distribution

 

$

 

 

$

901

 

 

$

901

 

 

$

 

 

$

 

 

$

 

Material Handling

 

 

 

 

 

 

 

 

 

 

 

119

 

 

 

 

 

 

119

 

Total

 

$

 

 

$

901

 

 

$

901

 

 

$

119

 

 

$

 

 

$

119

 

 

 

Summary of Restructuring Activity

The table below summarizes restructuring activity for the six months ended June 30, 2019:

 

 

Employee

Reduction

 

 

Accelerated

Depreciation

 

 

Other Exit

Costs

 

 

Total

 

Balance at January 1, 2019

 

$

30

 

 

$

 

 

$

 

 

$

30

 

Charges to expense

 

 

901

 

 

 

 

 

 

 

 

 

901

 

Cash payments

 

 

(582

)

 

 

 

 

 

 

 

 

(582

)

Non-cash utilization

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2019

 

$

349

 

 

$

 

 

$

 

 

$

349

 

v3.19.2
Inventories (Tables)
6 Months Ended
Jun. 30, 2019
Inventory Disclosure [Abstract]  
Summary of Determination Cost of Inventories

Inventories consisted of the following:

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Finished and in-process products

 

$

27,034

 

 

$

27,960

 

Raw materials and supplies

 

 

15,307

 

 

 

15,636

 

 

 

$

42,341

 

 

$

43,596

 

v3.19.2
Other Liabilities (Tables)
6 Months Ended
Jun. 30, 2019
Other Liabilities Disclosure [Abstract]  
Schedule of Other Current Liabilities

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

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Customer deposits and accrued rebates

 

$

2,138

 

 

$

3,365

 

Dividends payable

 

 

5,179

 

 

 

5,260

 

Accrued litigation, claims and professional fees

 

 

768

 

 

 

460

 

Current portion of environmental reserves

 

 

1,435

 

 

 

1,229

 

Other accrued expenses

 

 

5,119

 

 

 

6,387

 

 

 

$

14,639

 

 

$

16,701

 

Schedule of Other Liabilities (Long-term)

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

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Lease guarantee contingency

 

$

10,562

 

 

$

10,402

 

Environmental reserves

 

 

6,815

 

 

 

3,702

 

Supplemental executive retirement plan liability

 

 

1,871

 

 

 

2,026

 

Pension liability

 

 

1,285

 

 

 

1,207

 

Deferred gain on sale of assets

 

 

 

 

 

1,237

 

Other long-term liabilities

 

 

2,280

 

 

 

1,220

 

 

 

$

22,813

 

 

$

19,794

 

v3.19.2
Goodwill and Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
The change in goodwill

The change in goodwill for the six months ended June 30, 2019 was as follows:

 

 

 

Distribution

 

 

Material

Handling

 

 

Total

 

January 1, 2019

 

$

505

 

 

$

58,563

 

 

$

59,068

 

Foreign currency translation

 

 

 

 

 

437

 

 

 

437

 

June 30, 2019

 

$

505

 

 

$

59,000

 

 

$

59,505

 

v3.19.2
Net Income per Common Share (Tables)
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Weighted average number of common shares outstanding during the period

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

 

 

 

For the Quarter Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Weighted average common shares outstanding basic

 

 

35,471,795

 

 

 

32,606,838

 

 

 

35,430,392

 

 

 

31,561,194

 

Dilutive effect of stock options and restricted stock

 

 

271,768

 

 

 

477,702

 

 

 

322,662

 

 

 

520,156

 

Weighted average common shares outstanding diluted

 

 

35,743,563

 

 

 

33,084,540

 

 

 

35,753,054

 

 

 

32,081,350

 

v3.19.2
Long-Term Debt and Loan Agreements (Tables)
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Long Term Debt

Long-term debt consisted of the following:

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Loan Agreement

 

$

 

 

$

 

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

 

 

 

78,000

 

Less unamortized deferred financing costs

 

 

1,017

 

 

 

1,210

 

 

 

$

76,983

 

 

$

76,790

 

v3.19.2
Retirement Plans (Tables)
6 Months Ended
Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
Net periodic pension cost

Net periodic pension cost is as follows:

 

 

 

For the Quarter Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest cost

 

$

60

 

 

$

56

 

 

$

120

 

 

$

112

 

Expected return on assets

 

 

(46

)

 

 

(79

)

 

 

(92

)

 

 

(158

)

Amortization of net loss

 

 

24

 

 

 

21

 

 

 

48

 

 

 

42

 

Net periodic pension cost

 

$

38

 

 

$

(2

)

 

$

76

 

 

$

(4

)

v3.19.2
Leases (Table)
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Schedule of Balances Included in Condensed Consolidated Statement of Financial Position (Unaudited) Related to Leases

Amounts included in the Condensed Consolidated Statement of Financial Position (Unaudited) related to leases include:

 

 

 

June 30, 2019

 

Right of use asset - operating leases

 

$

5,983

 

 

 

 

 

 

Operating lease liability - short-term

 

$

2,000

 

Operating lease liability - long-term

 

 

4,225

 

Total operating lease liabilities

 

$

6,225

 

 

Schedule of Lease Expense

The components of lease expense include:

 

 

 

 

 

Quarter Ended

 

 

Six Months Ended

 

Lease Cost

 

Classification

 

June 30, 2019

 

 

June 30, 2019

 

Operating lease cost (1)

 

Cost of sales

 

$

442

 

 

$

857

 

Operating lease cost (1)

 

Selling, general and administrative expenses

 

 

426

 

 

 

897

 

Total lease cost

 

 

 

$

868

 

 

$

1,754

 

 

 

(1)

Includes short-term leases and variable lease costs, which are immaterial

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

 

 

 

Six Months Ended

 

Supplemental Cash Flow Information

 

June 30, 2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

Operating cash flows from operating leases

 

$

1,149

 

Right-of-use assets obtained in exchange for new lease liabilities:

 

 

 

 

Operating leases

 

 

1,037

 

 

Lease Term and Discount Rate

 

June 30, 2019

 

Weighted-average remaining lease term (years)

 

 

 

 

Operating leases

 

 

4.53

 

Weighted-average discount rate

 

 

 

 

Operating leases

 

 

5.0

%

 

Maturity of Operating Lease Lease Liabilities

Maturity of Lease Liabilities - As of June 30, 2019

 

Operating Leases

 

2019 (1)

 

$

1,203

 

2020

 

 

1,805

 

2021

 

 

1,107

 

2022

 

 

1,051

 

2023

 

 

906

 

After 2023

 

 

897

 

Total lease payments

 

 

6,969

 

Less: Interest

 

 

(744

)

Present value of lease liabilities

 

$

6,225

 

 

 

(1)

Represents amounts due in 2019 after June 30, 2019

Future Minimum Rental Commitments

Future minimum rental commitments (undiscounted) as of December 31, 2018 under ASC 840 were as follows:

 

Year Ended December 31,

 

 

 

 

2019

 

$

2,492

 

2020

 

 

1,739

 

2021

 

 

982

 

2022

 

 

966

 

2023

 

 

841

 

Thereafter

 

 

811

 

Total

 

$

7,831

 

 

v3.19.2
Industry Segments (Tables)
6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Schedule of Reporting Information by Segment

Summarized segment detail for the quarters and six months ended June 30, 2019 and 2018 are presented in the following table:

 

 

For the Quarter Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

95,902

 

 

$

103,130

 

 

$

198,853

 

 

$

219,939

 

Distribution

 

38,395

 

 

 

37,477

 

 

 

74,569

 

 

 

73,258

 

Inter-company sales

 

(12

)

 

 

(47

)

 

 

(22

)

 

 

(69

)

Total net sales

$

134,285

 

 

$

140,560

 

 

$

273,400

 

 

$

293,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Material Handling

$

17,589

 

 

$

17,323

 

 

$

33,796

 

 

$

34,053

 

Distribution

 

3,328

 

 

 

2,786

 

 

 

3,541

 

 

 

4,524

 

Corporate

 

(10,735

)

 

 

(6,998

)

 

 

(16,937

)

 

 

(13,444

)

Total operating income

 

10,182

 

 

 

13,111

 

 

 

20,400

 

 

 

25,133

 

Interest expense, net

 

(1,017

)

 

 

(1,313

)

 

 

(2,066

)

 

 

(2,952

)

Income from continuing operations before income taxes

$

9,165

 

 

$

11,798

 

 

$

18,334

 

 

$

22,181

 

v3.19.2
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
$ in Thousands
Jan. 01, 2019
Jun. 30, 2019
Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Right-of-use assets   $ 5,983 $ 0
Lease liabilities   6,225  
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   78,900 $ 76,800
ASU 2016-02 [Member]      
Organization Consolidation And Presentation Of Financial Statements [Line Items]      
Right-of-use assets $ 5,900 $ 5,983  
Lease liabilities 6,200    
Cumulative-effect transition adjustment to opening retained earnings (deficit) $ 900    
v3.19.2
Summary of Significant Accounting Policies - Summary of Impacts of ASC 842 on Condensed Consolidated Financial Statements (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Jan. 01, 2019
Dec. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Line Items]            
Net sales $ 134,285 $ 140,560 $ 273,400 $ 293,128    
Cost of sales 87,349 92,569 180,905 198,022    
Gross profit 46,936 47,991 92,495 95,106    
Selling, general and administrative expenses 36,809 34,506 71,277 69,979    
(Gain) loss on disposal of fixed assets (55) 66 (98) (314)    
Impairment charges 0 308 916 308    
Operating income 10,182 13,111 20,400 25,133    
Interest expense, net (1,017) (1,313) (2,066) (2,952)    
Income from continuing operations before income taxes 9,165 11,798 18,334 22,181    
Income tax expense 2,559 3,190 5,085 5,818    
Income from continuing operations 6,606 $ 8,608 13,249 $ 16,363    
Assets            
Right of use asset - operating leases 5,983   5,983     $ 0
Deferred income taxes 6,490   6,490     5,270
Liabilities            
Other current liabilities 14,639   14,639     16,701
Operating lease liability - short-term 2,000   2,000     0
Operating lease liability - long-term 4,225   4,225     0
Other liabilities 22,813   22,813     19,794
Shareholders’ Equity            
Retained deficit (136,557)   (136,557)     $ (141,187)
ASU 2016-02 [Member]            
Organization Consolidation And Presentation Of Financial Statements [Line Items]            
Net sales 134,285   273,400      
Cost of sales 87,349   180,905      
Gross profit 46,936   92,495      
Selling, general and administrative expenses 36,809   71,277      
(Gain) loss on disposal of fixed assets (55)   (98)      
Impairment charges     916      
Operating income 10,182   20,400      
Interest expense, net 1,017   2,066      
Income from continuing operations before income taxes 9,165   18,334      
Income tax expense 2,559   5,085      
Income from continuing operations 6,606   13,249      
Assets            
Right of use asset - operating leases 5,983   5,983   $ 5,900  
Deferred income taxes 6,490   6,490      
Liabilities            
Other current liabilities 14,639   14,639      
Operating lease liability - short-term 2,000   2,000      
Operating lease liability - long-term 4,225   4,225      
Other liabilities 22,813   22,813      
Shareholders’ Equity            
Retained deficit (136,557)   (136,557)      
Adjustments [Member] | ASU 2016-02 [Member]            
Organization Consolidation And Presentation Of Financial Statements [Line Items]            
Selling, general and administrative expenses (34)   (67)      
Operating income 34   67      
Income from continuing operations before income taxes 34   67      
Income tax expense 9   18      
Income from continuing operations 25   49      
Assets            
Right of use asset - operating leases (5,983)   (5,983)      
Deferred income taxes 316   316      
Liabilities            
Other current liabilities 242   242      
Operating lease liability - short-term (2,000)   (2,000)      
Operating lease liability - long-term (4,225)   (4,225)      
Other liabilities 1,169   1,169      
Shareholders’ Equity            
Retained deficit (853)   (853)      
Balances Without Adoption of ASC 842 [Member] | ASU 2016-02 [Member]            
Organization Consolidation And Presentation Of Financial Statements [Line Items]            
Net sales 134,285   273,400      
Cost of sales 87,349   180,905      
Gross profit 46,936   92,495      
Selling, general and administrative expenses 36,775   71,210      
(Gain) loss on disposal of fixed assets (55)   (98)      
Impairment charges     916      
Operating income 10,216   20,467      
Interest expense, net 1,017   2,066      
Income from continuing operations before income taxes 9,199   18,401      
Income tax expense 2,568   5,103      
Income from continuing operations 6,631   13,298      
Assets            
Deferred income taxes 6,806   6,806      
Liabilities            
Other current liabilities 14,881   14,881      
Other liabilities 23,982   23,982      
Shareholders’ Equity            
Retained deficit $ (137,410)   $ (137,410)      
v3.19.2
Summary of Significant Accounting Policies - The Balances in the Company's Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Beginning balance $ 158,426 $ 95,926 $ 154,638 $ 93,752
Total other comprehensive income (loss) 758 (123) 1,535 (1,957)
Ending balance 162,410 181,261 162,410 181,261
Foreign Currency [Member]        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Beginning balance     (16,251)  
Other comprehensive income (loss) before reclassifications     1,535  
Total other comprehensive income (loss)     1,535  
Ending balance (14,716)   (14,716)  
Defined Benefit Pension Plans [Member]        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Beginning balance     (2,029)  
Other comprehensive income (loss) before reclassifications     0  
Total other comprehensive income (loss)     0  
Ending balance (2,029)   (2,029)  
Accumulated Other Comprehensive Income (Loss) [Member]        
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Beginning balance (17,503) (16,375) (18,280) (14,541)
Other comprehensive income (loss) before reclassifications     1,535  
Total other comprehensive income (loss)     1,535  
Ending balance $ (16,745) $ (16,498) $ (16,745) $ (16,498)
v3.19.2
Revenue Recognition - Schedule of Disaggregation of Revenue by Major Market (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Disaggregation Of Revenue [Line Items]        
Net sales $ 134,285 $ 140,560 $ 273,400 $ 293,128
Consumer [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 22,515 27,046 40,300 44,277
Vehicle [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 21,962 26,758 44,482 52,301
Food and Beverage [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 16,818 15,308 41,967 52,965
Industrial [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 34,595 33,971 72,082 70,327
Auto Aftermarket [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 38,395 37,477 74,569 73,258
Operating Segments [Member] | Material Handling [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 95,902 103,130 198,853 219,939
Operating Segments [Member] | Material Handling [Member] | Consumer [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 22,515 27,046 40,300 44,277
Operating Segments [Member] | Material Handling [Member] | Vehicle [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 21,962 26,758 44,482 52,301
Operating Segments [Member] | Material Handling [Member] | Food and Beverage [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 16,818 15,308 41,967 52,965
Operating Segments [Member] | Material Handling [Member] | Industrial [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 34,607 34,018 72,104 70,396
Operating Segments [Member] | Distribution [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 38,395 37,477 74,569 73,258
Operating Segments [Member] | Distribution [Member] | Auto Aftermarket [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales 38,395 37,477 74,569 73,258
Inter-company [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales (12) (47) (22) (69)
Inter-company [Member] | Industrial [Member]        
Disaggregation Of Revenue [Line Items]        
Net sales $ (12) $ (47) $ (22) $ (69)
v3.19.2
Revenue Recognition - Schedule of Balances included in Condensed Consolidated Statement of Financial Position (Unaudited) Related to Revenue Recognition (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Accounts Receivable [Member]    
Disaggregation Of Revenue [Line Items]    
Returns, discounts and other allowances $ (606) $ (1,169)
Inventories, net [Member]    
Disaggregation Of Revenue [Line Items]    
Right of return asset 322 535
Other Current Liabilities [Member]    
Disaggregation Of Revenue [Line Items]    
Customer deposits (115) (806)
Accrued rebates $ (2,023) $ (2,559)
v3.19.2
Revenue Recognition - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Disaggregation Of Revenue [Line Items]        
Type of Cost, Good or Service [Extensible List] us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember us-gaap:ShippingAndHandlingMember
Cost of sales $ 87,349 $ 92,569 $ 180,905 $ 198,022
Selling, General and Administrative Expenses [Member]        
Disaggregation Of Revenue [Line Items]        
Cost of sales 2,000 2,600 4,100 5,300
Cost of Sales [Member]        
Disaggregation Of Revenue [Line Items]        
Cost of sales $ 1,500 $ 1,400 $ 2,900 $ 2,800
v3.19.2
Assets Held for Sale - Additional Information (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Building
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Long Lived Assets Held For Sale [Line Items]          
Impairment charges $ 0 $ 308,000 $ 916,000 $ 308,000  
Net proceeds from sale of building     $ 7,400,000    
Number of buildings sold | Building     2    
Other Assets [Member]          
Long Lived Assets Held For Sale [Line Items]          
Building classified as held for sale 0   $ 0   $ 4,400,000
Level 2 [Member]          
Long Lived Assets Held For Sale [Line Items]          
Impairment charges $ 0 $ 300,000 $ 900,000 $ 300,000  
v3.19.2
Disposal of Businesses - Additional Information (Details) - USD ($)
3 Months Ended 12 Months Ended
Feb. 17, 2015
Sep. 30, 2018
Mar. 31, 2018
Dec. 31, 2018
Jun. 30, 2019
May 31, 2018
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]            
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%          
Promissory note receivable $ 20,000,000          
Maturity date of promissory note receivable 2020-08          
Provision for loss on note receivable   $ 23,000,000        
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          
v3.19.2
Disposal of Businesses - Summary of Selected Financial Information for Discontinued Operations (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]        
Income (loss) from discontinued operations, net of income tax $ 0 $ 0 $ 127 $ (911)
Brazil Business, Lawn and Garden Business [Member]        
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]        
Net sales 0 0 0 0
Cost of sales 0 0 0 0
Selling, general, and administrative 0 0 0 1,225
(Gain) loss on disposal of assets 0 0 0 0
Interest income, net 0 0 (174) 0
Income (loss) from discontinued operations before income tax 0 0 174 (1,225)
Income tax expense (benefit) 0 0 47 (314)
Income (loss) from discontinued operations, net of income tax $ 0 $ 0 $ 127 $ (911)
v3.19.2
Restructuring - Additional Information (Details)
1 Months Ended 3 Months Ended 6 Months Ended
May 31, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Position
Jun. 30, 2018
USD ($)
Restructuring Cost And Reserve [Line Items]            
Restructuring charges         $ 901,000 $ 119,000
Net proceeds from sale of facility         7,400,000  
SG&A [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring charges         901,000 0
General and Administrative Expense            
Restructuring Cost And Reserve [Line Items]            
Other restructuring associated costs incurred   $ 100,000     200,000  
Employee Severance and Other Employee-related Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring charges         $ 901,000  
Ameri-Kart [Member]            
Restructuring Cost And Reserve [Line Items]            
Elimination of positions | Position         30  
Expected restructuring charges   900,000     $ 900,000  
Restructuring charges   0     0  
Additional expected restructuring charges   200,000     200,000  
Ameri-Kart [Member] | Employee Severance and Other Employee-related Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Expected restructuring charges   200,000     200,000  
Ameri-Kart [Member] | Equipment Relocation and Facility Shut Down Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Expected restructuring charges   600,000     600,000  
Ameri-Kart [Member] | Accelerated Depreciation Charges on Property, Plant and Equipment [Member]            
Restructuring Cost And Reserve [Line Items]            
Expected restructuring charges   100,000     100,000  
Distribution Transformation Plan [Member]            
Restructuring Cost And Reserve [Line Items]            
Expected restructuring charges   900,000     900,000  
Total restructuring costs incurred   0     900,000  
Additional expected restructuring charges   600,000     600,000  
Material Handling [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring charges         0 119,000
Material Handling [Member] | SG&A [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring charges         0 0
Material Handling [Member] | Equipment Relocation and Facility Shut Down Costs [Member]            
Restructuring Cost And Reserve [Line Items]            
Restructuring charges   $ 0   $ 0 0 $ 100,000
Total restructuring costs incurred         7,700,000  
Restructuring charges in employee severance and other employee-related costs         3,100,000  
Restructuring charges in equipment relocation and facility shut down costs         2,600,000  
Restructuring charges in accelerated depreciation charges on property, plant and equipment         $ 2,000,000  
Impairment charges     $ 900,000      
Net proceeds from sale of facility $ 2,900,000          
v3.19.2
Restructuring - Restructuring Charges by Segment (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Restructuring Cost And Reserve [Line Items]    
Restructuring charges $ 901 $ 119
Cost of Sales [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring charges 0 119
SG&A [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring charges 901 0
Distribution [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring charges 901 0
Distribution [Member] | Cost of Sales [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring charges 0 0
Distribution [Member] | SG&A [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring charges 901 0
Material Handling [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring charges 0 119
Material Handling [Member] | Cost of Sales [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring charges 0 119
Material Handling [Member] | SG&A [Member]    
Restructuring Cost And Reserve [Line Items]    
Restructuring charges $ 0 $ 0
v3.19.2
Restructuring - Summary of Restructuring Activity (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Restructuring Cost And Reserve [Line Items]    
Balance at January 1, 2019 $ 30  
Charges to expense 901 $ 119
Cash payments (582)  
Balance at June 30, 2019 349  
Employee Reduction [Member]    
Restructuring Cost And Reserve [Line Items]    
Balance at January 1, 2019 30  
Charges to expense 901  
Cash payments (582)  
Balance at June 30, 2019 $ 349  
v3.19.2
Inventories - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Inventories        
Percentage of LIFO Inventory 30.00%   30.00%  
LIFO inventories, decrease in cost of sales $ 0.3 $ 0.5 $ 0.3 $ 0.5
v3.19.2
Inventories - Summary of Significant Accounting Policies - Summary of Determination Cost of Inventories (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Inventory Disclosure [Abstract]    
Finished and in-process products $ 27,034 $ 27,960
Raw materials and supplies 15,307 15,636
Inventory net $ 42,341 $ 43,596
v3.19.2
Other Liabilities - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Other Liabilities Disclosure [Abstract]    
Customer deposits and accrued rebates $ 2,138 $ 3,365
Dividends payable 5,179 5,260
Accrued litigation, claims and professional fees 768 460
Current portion of environmental reserves 1,435 1,229
Other accrued expenses 5,119 6,387
Other current liabilities, Total $ 14,639 $ 16,701
v3.19.2
Other Liabilities - Schedule of Other Liabilities (Long-term) (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Other Liabilities Disclosure [Abstract]    
Lease guarantee contingency $ 10,562 $ 10,402
Environmental reserves 6,815 3,702
Supplemental executive retirement plan liability 1,871 2,026
Pension liability 1,285 1,207
Deferred gain on sale of assets   1,237
Other long-term liabilities 2,280 1,220
Other liabilities (long-term), Total $ 22,813 $ 19,794
v3.19.2
Goodwill and Intangible Assets - Change in Goodwill (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2019
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 59,068
Foreign currency translation 437
Ending balance 59,505
Distribution [Member]  
Goodwill [Roll Forward]  
Beginning balance 505
Foreign currency translation 0
Ending balance 505
Material Handling [Member]  
Goodwill [Roll Forward]  
Beginning balance 58,563
Foreign currency translation 437
Ending balance $ 59,000
v3.19.2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Trade Names [Member]    
Finite And Indefinite Lived Intangible Assets [Line Items]    
Carrying value of indefinite-lived intangible assets $ 9.8 $ 9.8
v3.19.2
Net Income per Common Share (Details) - shares
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Earnings Per Share [Abstract]        
Weighted average common shares outstanding basic 35,471,795 32,606,838 35,430,392 31,561,194
Dilutive effect of stock options and restricted stock (in shares) 271,768 477,702 322,662 520,156
Weighted average common shares outstanding diluted (in shares) 35,743,563 33,084,540 35,753,054 32,081,350
v3.19.2
Net Income per Common Share - Additional Information (Details) - shares
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Earnings Per Share [Abstract]        
Anti-dilutive securities excluded from computation of net earnings or loss per common share 643,813 0 648,313 252,132
v3.19.2
Stock Compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 3 Months Ended 6 Months Ended
Apr. 30, 2019
Mar. 31, 2019
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock compensation expense     $ 1.3 $ 1.2 $ 2.2 $ 2.3
Total unrecognized compensation cost related to non-vested share based compensation arrangements     $ 7.6   $ 7.6  
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  
Options Granted   235,474        
Options, Granted, Average exercise Price   $ 18.54        
Options Granted, Average Fair Value price   $ 5.78        
Time Based Restricted Stock Units [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock Granted During Period 33,152 77,810        
Granted, Average Granted Date Fair Value $ 18.10 $ 18.54        
Performance-Based Restricted Stock Units [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock Granted During Period   101,500        
Granted, Average Granted Date Fair Value   $ 18.54        
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   5,126,950  
v3.19.2
Equity - Additional Information (Details) - Secondary Public Offering [Member] - Common Shares [Member]
$ / shares in Units, $ in Millions
May 31, 2018
USD ($)
$ / shares
shares
Class Of Stock [Line Items]  
Shares of common stock issued in public offering | shares 4,600,000
Common stock sale price per share | $ / shares $ 18.50
Net proceeds from sale of common stock in public offering $ 79.5
Payments of offering costs $ 0.5
v3.19.2
Contingencies - Additional Information (Details) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 93 Months Ended
Jan. 31, 2019
Apr. 30, 2016
Jun. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2016
Dec. 31, 2005
Jun. 30, 2019
Loss Contingencies [Line Items]                        
Other current liabilities     $ 14,639,000 $ 16,701,000       $ 14,639,000       $ 14,639,000
Other liabilities     22,813,000 19,794,000       22,813,000       22,813,000
Lease guarantee contingency     10,562,000 10,402,000       10,562,000       10,562,000
New Idria Mercury Mine [Member]                        
Loss Contingencies [Line Items]                        
Financial assurance required to be provided to EPA to secure performance       2,000,000                
Prepayment amount $ 200,000                      
New Almaden Mine [Member] | Natural Resource Damage Claim [Member]                        
Loss Contingencies [Line Items]                        
Total reserve     1,500,000         1,500,000       1,500,000
Other current liabilities     300,000         300,000       300,000
Other liabilities     1,200,000         1,200,000       1,200,000
Expense recognized     0     $ 0   0 $ 0 $ 1,200,000 $ 800,000  
Accrued balance               500,000        
Original estimated project costs   $ 1,600,000                    
Revised estimated project costs, Low Estimate   3,300,000                    
Revised estimated project costs, High Estimate   $ 4,400,000                    
Lawn and Garden Indemnification Claim [Member]                        
Loss Contingencies [Line Items]                        
Indemnification claims               10,000,000        
Escrow deposit     8,600,000         $ 8,600,000       8,600,000
Escrow deposit due to be settled date               2016-08        
Discontinued operations pre-tax charge             $ 1,225,000          
Amount of escrow deposits expected to release upon settlement of agreement           7,400,000            
Lawn and Garden Indemnification Claim [Member] | Guarantee Obligation [Member]                        
Loss Contingencies [Line Items]                        
Lease expiring period               September 2025        
Annual rent               $ 2,000,000        
Liabilities and related pre tax charges         $ 10,300,000              
Lease guarantee contingency     10,600,000 $ 10,400,000       10,600,000       10,600,000
Pending Litigation [Member] | New Idria Mercury Mine [Member] | EPA Notice Letter [Member]                        
Loss Contingencies [Line Items]                        
Loss contingencies, payments                       3,200,000
Loss contingency, Loss in period     4,000,000     $ 0   4,000,000 $ 0     9,900,000
Total reserve     6,700,000         6,700,000       6,700,000
Other current liabilities     1,100,000         1,100,000       1,100,000
Other liabilities     $ 5,600,000         $ 5,600,000       $ 5,600,000
v3.19.2
Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Debt Instrument [Line Items]    
Long-term Debt $ 78,000 $ 78,000
Less unamortized deferred financing fees 1,017 1,210
Long-term Debt, net of deferred financing costs 76,983 76,790
Loan Agreement [Member]    
Debt Instrument [Line Items]    
Long-term Debt 0 0
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
v3.19.2
Long-Term Debt and Loan Agreements - Schedule of Long Term Debt (Parenthetical) (Details)
6 Months Ended
Jun. 30, 2019
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
v3.19.2
Long-Term Debt and Loan Agreements - Additional Information (Details) - USD ($)
3 Months Ended 6 Months Ended
May 30, 2014
Jun. 30, 2019
Jun. 30, 2018
Mar. 31, 2017
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Debt Instrument [Line Items]              
Long-term Debt   $ 78,000,000     $ 78,000,000   $ 78,000,000
Long-term Debt   $ 76,983,000     $ 76,983,000   $ 76,790,000
Weighted average interest rate during period   6.27% 5.82%   6.25% 5.55%  
Senior Unsecured Notes [Member]              
Debt Instrument [Line Items]              
Long-term Debt   $ 78,000,000     $ 78,000,000    
Minimum [Member]              
Debt Instrument [Line Items]              
Long-term Debt   $ 11,000,000     $ 11,000,000    
Interest rate   4.67%     4.67%    
Maximum [Member]              
Debt Instrument [Line Items]              
Long-term Debt   $ 40,000,000     $ 40,000,000    
Interest rate   5.45%     5.45%    
Loan Agreement [Member]              
Debt Instrument [Line Items]              
Maximum borrowing capacity on line of credit $ 300,000,000 $ 200,000,000   $ 200,000,000 $ 200,000,000    
Loan maturity period 2018-12     2022-03      
Remaining amount available under the line of credit   194,200,000     194,200,000    
Letters of credit   $ 5,800,000     $ 5,800,000    
v3.19.2
Retirement Plans - Net Periodic Pension Cost (Details) - Pension Plans, Defined Benefit [Member] - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Defined Benefit Plan Disclosure [Line Items]        
Interest cost $ 60 $ 56 $ 120 $ 112
Expected return on assets (46) (79) (92) (158)
Amortization of net loss 24 21 48 42
Net periodic pension cost $ 38 $ (2) $ 76 $ (4)
v3.19.2
Retirement Plans - Additional Information (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2019
USD ($)
Scenario Forecast [Member]  
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items]  
Contribution to plan $ 30
v3.19.2
Income Taxes - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Income Taxes [Line Items]          
Effective tax rate for the year 27.90% 27.00% 27.70% 26.20%  
Unrecognized tax benefits that would impact effective tax rate $ 1.0   $ 1.0   $ 1.0
Income tax examination, description     The Company and its subsidiaries file U.S. Federal, state and local, and non-U.S. income tax returns. As of June 30, 2019, the Company is no longer subject to U.S. Federal examination by tax authorities for tax years before 2015.    
U.S. Federal [Member] | Internal Revenue Service (“IRS") [Member]          
Income Taxes [Line Items]          
Income tax examination for tax years     2017    
State and Local [Member] | Internal Revenue Service (“IRS") [Member]          
Income Taxes [Line Items]          
Income tax examination for tax years     2013 2014 2015 2016 2017 2018    
Non-U.S [Member] | Internal Revenue Service (“IRS") [Member]          
Income Taxes [Line Items]          
Income tax examination for tax years     2014 2015 2016 2017 2018    
v3.19.2
Leases - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Feb. 27, 2018
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Lessee Lease Description [Line Items]        
Operating lease, existence of option to extend     true  
Operating lease, option to extend     Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early.  
Lessee, operating lease, renewal term     5 years  
Operating lease, existence of option to terminate     true  
Operating lease, option to terminate     Certain of these leases include options to extend the lease for up to five years, and some include options to terminate the lease early.  
Proceeds from sale of property, plant and equipment     $ 7,514 $ 2,633
California [Member] | Distribution [Member]        
Lessee Lease Description [Line Items]        
Facility lease period     10 years  
Proceeds from sale of property, plant and equipment $ 2,300      
Gain on sale of distribution center $ 2,000 $ 700    
Remaining gain on sale of distribution center   $ 1,300    
Facility remaining lease period     10 years  
Base annual rent, per year     $ 100  
Base annual rent, first year     $ 100  
Percentage of annual rent increase in remaining lease period     3.00%  
Minimum [Member]        
Lessee Lease Description [Line Items]        
Facility lease period     1 year  
Maximum [Member]        
Lessee Lease Description [Line Items]        
Facility lease period     9 years  
v3.19.2
Leases - Summary of Amounts Included in the Condensed Consolidated Statement of Financial Position (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Assets And Liabilities Lessee [Abstract]    
Right of use asset - operating leases $ 5,983 $ 0
Operating lease liability - short-term 2,000 0
Operating lease liability - long-term 4,225 $ 0
Total operating lease liabilities $ 6,225  
v3.19.2
Leases - Summary of Components of Lease Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Lessee Lease Description [Line Items]    
Total lease cost $ 868 $ 1,754
Cost of Sales [Member]    
Lessee Lease Description [Line Items]    
Total lease cost 442 857
Selling, General and Administrative Expenses [Member]    
Lessee Lease Description [Line Items]    
Total lease cost $ 426 $ 897
v3.19.2
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2019
USD ($)
Cash paid for amounts included in the measurement of lease liabilities:  
Operating cash flows from operating leases $ 1,149
Right-of-use assets obtained in exchange for new lease liabilities:  
Operating leases $ 1,037
v3.19.2
Leases - Summary of Lease Term and Discount Rate (Details)
Jun. 30, 2019
Lessee Disclosure [Abstract]  
Weighted-average remaining lease term (years), operating leases 4 years 6 months 10 days
Weighted-average discount rate, operating leases 5.00%
v3.19.2
Leases - Maturity of Operating Lease Lease Liabilities (Details)
$ in Thousands
Jun. 30, 2019
USD ($)
Operating Lease Liabilities Payments Due [Abstract]  
2019 $ 1,203
2020 1,805
2021 1,107
2022 1,051
2023 906
After 2023 897
Total lease payments 6,969
Less: Interest (744)
Lease liabilities $ 6,225
v3.19.2
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
v3.19.2
Industry Segments - Additional Information (Details)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Segment
Jun. 30, 2018
USD ($)
Segment Reporting Information [Line Items]        
Number of operating segments | Segment     2  
Net sales $ 134,285 $ 140,560 $ 273,400 $ 293,128
Foreign Countries [Member]        
Segment Reporting Information [Line Items]        
Net sales $ 11,400 $ 13,100 $ 24,200 $ 24,600
v3.19.2
Industry Segments - Schedule of reporting information by segment (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Segment Reporting Information [Line Items]        
Net sales $ 134,285 $ 140,560 $ 273,400 $ 293,128
Total operating income 10,182 13,111 20,400 25,133
Interest expense, net (1,017) (1,313) (2,066) (2,952)
Income from continuing operations before income taxes 9,165 11,798 18,334 22,181
Operating Segments [Member] | Material Handling [Member]        
Segment Reporting Information [Line Items]        
Net sales 95,902 103,130 198,853 219,939
Total operating income 17,589 17,323 33,796 34,053
Operating Segments [Member] | Distribution [Member]        
Segment Reporting Information [Line Items]        
Net sales 38,395 37,477 74,569 73,258
Total operating income 3,328 2,786 3,541 4,524
Inter-company sales [Member]        
Segment Reporting Information [Line Items]        
Net sales (12) (47) (22) (69)
Corporate [Member]        
Segment Reporting Information [Line Items]        
Total operating income $ (10,735) $ (6,998) $ (16,937) $ (13,444)