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Changes in Accounting Policies (Notes) | 9 Months Ended
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Sep. 30, 2018
Accounting Changes and Error Corrections [Abstract] |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASC Topic 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC Topic 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date for ASC Topic 606, as updated by ASU No. 2015-14, is the first quarter of fiscal year 2018. ASU 2014-09 affects the timing of certain revenue-related transactions primarily resulting from the earlier recognition of the Company's tooling sales and costs. The Company adopted this update as required through a cumulative adjustment to equity and contract assets of $1,069,000 on January 1, 2018. The transitional practical expedient related to contract modifications has been applied and the Company has not retrospectively restated contracts that were modified prior to January 1, 2018. Therefore, the comparative information has not been adjusted and continues to be reported under Topic 605. See Note 2, Critical Accounting Policies and Estimates, for the Company's policy on Revenue Recognition and Note 16, Changes in Accounting Policies, for further discussion on the effect of the adoption of ASC Topic 606 on the Company's Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update requires organizations to recognize lease assets and lease liabilities on the balance sheet and also disclose key information about leasing arrangements. This ASU is effective for annual reporting periods beginning on or after December 15, 2018, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual period. In accordance with ASU 2016-02, we plan to elect not to recognize lease assets and lease liabilities for leases with a term of twelve months or less. The ASU requires a modified retrospective transition method, or a transition method option under ASU 2018-11, with the option to elect a package of practical expedients that permits the Company to: a. not reassess whether expired or existing contracts contain leases, b. not reassess lease classification for existing or expired leases and c. not consider whether previously capitalized initial direct costs would be appropriate under the new standard. The Company will elect to apply the package of practical expedients. The Company is assessing the impact of this pronouncement and revised guidance and anticipates it will impact the presentation of our lease assets and liabilities and associated disclosures related to the recognition of lease assets and liabilities that are not included in the Consolidated Balance Sheets under existing accounting guidance. The adoption of pronouncement will have a significant impact on our consolidated balance sheet, but is not expected to have a significant impact on our consolidated statement of income or statement of cash flows. We will adopt this new accounting standard on its effective date of January 1, 2019. We have not yet determined the dollar impact of recording leases on our consolidated balance sheet. In March 2017, FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"). The amendments in this update require that an employer disaggregate the service cost component from the other components of net periodic cost (benefit) and report that component in the same line item as other compensation costs arising from services rendered by employees during the period. The other components of net periodic cost (benefit) are required to be presented in the statement of operations separately from the service cost component and outside of operating earnings. The amendment also allows for the service cost component of net periodic cost (benefit) to be eligible for capitalization when applicable. The guidance was effective for the Company on January 1, 2018 and interim periods within that reporting period. The income statement presentation of the components of net periodic cost (benefit) was applied retrospectively, while limiting the capitalization of net periodic cost (benefit) in assets to the service cost component was applied prospectively. The Company adopted this standard update as required on January 1, 2018 and the impact of adoption resulted in a reclassification of all components of net periodic benefit from operating earnings to other income in the amount of $12,000 for the three months ended September 30, 2018 and 2017, respectively, and $36,000 for the nine months ended September 30, 2018 and 2017, respectively. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule is effective on November 5, 2018. The Company is in the process of evaluating the impact of the final rule on its consolidated financial statements. The Company adopted ASC Topic 606 on January 1, 2018 through a cumulative adjustment to equity and contract assets of $1,069,000. Under ASC Topic 606, revenue of certain tooling programs that include an enforceable right to payment are now recognized over time based on the extent of progress towards completion of its performance obligation. Prior to the adoption of ASC Topic 606, the Company recognized revenue for these contracts on a completed contract basis. The following tables summarize the effects of adopting Topic 606 on our unaudited consolidated financial statements for the three and nine months ended September 30, 2018. Consolidated Statements of Income (Unaudited)
| Three Months Ended
| September 30, 2018
| As Reported |  | Adjustments |  | Without adoption of Topic 606
Net sales: |  |  |  |  |
Products | $ | 62,305,000 |  |  | $ | — |  |  | $ | 62,305,000 |
Tooling | 2,371,000 |  |  | 1,488,000 |  |  | 3,859,000 |
Total net sales | 64,676,000 |  |  | 1,488,000 |  |  | 66,164,000 |
Total cost of sales | 59,814,000 |  |  | 1,245,000 |  |  | 61,059,000 |
Gross margin | 4,862,000 |  |  | 243,000 |  |  | 5,105,000 |
Total selling, general and administrative expense | 6,349,000 |  |  | — |  |  | 6,349,000 |
Operating Income (Loss) | (1,487,000 | ) |  | 243,000 |  |  | (1,244,000 | )
Other income and expense |  |  |  |  |
Interest expense | 632,000 |  |  | — |  |  | 632,000 |
Net periodic post-retirement benefit cost | (12,000 | ) |  | — |  |  | (12,000 | )
Total other income and expense | 620,000 |  |  | — |  |  | 620,000 |
Income (loss) before taxes | (2,107,000 | ) |  | 243,000 |  |  | (1,864,000 | )
Income tax expense (benefit) | (304,000 | ) |  | 51,000 |  |  | (253,000 | )
Net income (loss) | $ | (1,803,000 | ) |  | $ | 192,000 |  |  | $ | (1,611,000 | )
Net income (loss) per common share: |  |  |  |  |
Basic | $ | (0.23 | ) |  | $ | — |  |  | $ | (0.21 | )
Diluted | $ | (0.23 | ) |  | $ | — |  |  | $ | (0.21 | )
Consolidated Statements of Income (Unaudited)
| Nine Months Ended
| September 30, 2018
| As Reported |  | Adjustments |  | Without adoption of Topic 606
Net sales: |  |  |  |  |
Products | $ | 187,243,000 |  |  | $ | — |  |  | $ | 187,243,000 |
Tooling | 9,081,000 |  |  | 3,850,000 |  |  | 12,931,000 |
Total net sales | 196,324,000 |  |  | 3,850,000 |  |  | 200,174,000 |
Total cost of sales | 175,679,000 |  |  | 3,006,000 |  |  | 178,685,000 |
Gross margin | 20,645,000 |  |  | 844,000 |  |  | 21,489,000 |
Total selling, general and administrative expense | 19,587,000 |  |  | — |  |  | 19,587,000 |
Operating Income | 1,058,000 |  |  | 844,000 |  |  | 1,902,000 |
Other income and expense |  |  |  |  |
Interest expense | 1,705,000 |  |  | — |  |  | 1,705,000 |
Net periodic post-retirement benefit cost | (36,000 | ) |  | — |  |  | (36,000 | )
Total other income and expense | 1,669,000 |  |  | — |  |  | 1,669,000 |
Income (loss) before taxes | (611,000 | ) |  | 844,000 |  |  | 233,000 |
Income tax expense | 228,000 |  |  | 177,000 |  |  | 405,000 |
Net income (loss) | $ | (839,000 | ) |  | $ | 667,000 |  |  | $ | (172,000 | )
Net income (loss) per common share: |  |  |  |  |
Basic | $ | (0.11 | ) |  | $ | — |  |  | $ | (0.02 | )
Diluted | $ | (0.11 | ) |  | $ | — |  |  | $ | (0.02 | )
Consolidated Balance Sheets (Unaudited)
| September 30, 2018
| As Reported |  | Adjustments |  | Without adoption of Topic 606
Assets: |  |  |  |  |
Current assets: |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | — |
Accounts receivable, net | 38,666,000 |  |  | — |  |  | 38,666,000 |
Inventory, net | 22,648,000 |  |  | — |  |  | 22,648,000 |
Prepaid expenses and other current assets | 8,123,000 |  |  | (402,000 | ) |  | 7,721,000 |
Total current assets | 69,437,000 |  |  | (402,000 | ) |  | 69,035,000 |
Property, plant and equipment, net | 80,822,000 |  |  | — |  |  | 80,822,000 |
Goodwill | 22,957,000 |  |  | — |  |  | 22,957,000 |
Intangibles, net | 16,666,000 |  |  | — |  |  | 16,666,000 |
Other non-current assets | 2,184,000 |  |  | — |  |  | 2,184,000 |
Total Assets | $ | 192,066,000 |  |  | $ | (402,000 | ) |  | $ | 191,664,000 |
Liabilities and Stockholders’ Equity: |  |  |  |  |
Current liabilities: |  |  |  |  |
Revolving line of credit | $ | — |  |  | $ | — |  |  | $ | — |
Current portion of long-term debt | 3,230,000 |  |  | — |  |  | 3,230,000 |
Accounts payable | 29,066,000 |  |  | — |  |  | 29,066,000 |
Compensation and related benefits | 5,071,000 |  |  | — |  |  | 5,071,000 |
Accrued other liabilities | 4,940,000 |  |  | — |  |  | 4,940,000 |
Total current liabilities | 42,307,000 |  |  | — |  |  | 42,307,000 |
Long-term debt | 38,591,000 |  |  | — |  |  | 38,591,000 |
Deferred tax liability | 395,000 |  |  | — |  |  | 395,000 |
Post retirement benefits liability | 7,924,000 |  |  | — |  |  | 7,924,000 |
Total Liabilities | $ | 89,217,000 |  |  | $ | — |  |  | $ | 89,217,000 |
Commitments and Contingencies | — |  |  |  |  | — |
Stockholders’ Equity: |  |  |  |  |
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at September 30, 2018 and December 31, 2017 | — |  |  | — |  |  | — |
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares: 7,771,415 at September 30, 2018 and 7,711,277 December 31, 2017 | 78,000 |  |  | — |  |  | 78,000 |
Paid-in capital | 32,693,000 |  |  | — |  |  | 32,693,000 |
Accumulated other comprehensive income, net of income taxes | 2,609,000 |  |  | — |  |  | 2,609,000 |
Treasury stock - at cost, 3,790,308 at September 30, 2018 and 3,773,128 at December 31, 2017 | (28,403,000 | ) |  | — |  |  | (28,403,000 | )
Retained earnings | 95,872,000 |  |  | (402,000 | ) |  | 95,470,000 |
Total Stockholders’ Equity | 102,849,000 |  |  | (402,000 | ) |  | 102,447,000 |
Total Liabilities and Stockholders’ Equity | $ | 192,066,000 |  |  | $ | (402,000 | ) |  | $ | 191,664,000 |
Consolidated Statements of Cash Flows (Unaudited)
| Nine Months Ended
| September 30, 2018
| As Reported |  | Adjustments |  | Without adoption of Topic 606
Cash flows from operating activities: |  |  |  |  |
Net income (loss) | $ | (839,000 | ) |  | $ | 667,000 |  |  | $ | (172,000 | )
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
Depreciation and amortization | 7,105,000 |  |  | — |  |  | 7,105,000 |
Loss on disposal of assets | 6,000 |  |  | — |  |  | 6,000 |
Share-based compensation | 1,228,000 |  |  | — |  |  | 1,228,000 |
Loss on foreign currency translation | 14,000 |  |  | — |  |  | 14,000 |
Change in operating assets and liabilities: |  |  |  |  |
Accounts receivable | (12,528,000 | ) |  | — |  |  | (12,528,000 | )
Inventories | (2,265,000 | ) |  | — |  |  | (2,265,000 | )
Prepaid and other assets | 3,060,000 |  |  | (667,000 | ) |  | 2,393,000 |
Accounts payable | 13,272,000 |  |  | — |  |  | 13,272,000 |
Accrued and other liabilities | (2,255,000 | ) |  | — |  |  | (2,255,000 | )
Post retirement benefits liability | (274,000 | ) |  | — |  |  | (274,000 | )
Net cash used in operating activities | 6,524,000 |  |  | — |  |  | 6,524,000 |
Cash flows from investing activities: |  |  |  |  |
Purchase of property, plant and equipment | (4,761,000 | ) |  | — |  |  | (4,761,000 | )
Purchase of assets of Horizon Plastics | (62,457,000 | ) |  | — |  |  | (62,457,000 | )
Net cash used in investing activities | (67,218,000 | ) |  | — |  |  | (67,218,000 | )
Cash flows from financing activities: |  |  |  |  |
Gross repayments on revolving line of credit | (67,594,000 | ) |  | — |  |  | (67,594,000 | )
Gross borrowings on revolving line of credit | 67,594,000 |  |  | — |  |  | 67,594,000 |
Proceeds from Horizon Plastics term loan | 45,000,000 |  |  | — |  |  | 45,000,000 |
Payment of principal on term loans | (9,281,000 | ) |  | — |  |  | (9,281,000 | )
Payment of deferred loan costs | (763,000 | ) |  | — |  |  | (763,000 | )
Cash dividends paid | (792,000 | ) |  | — |  |  | (792,000 | )
Payments related to the purchase of treasury stock | (250,000 | ) |  | — |  |  | (250,000 | )
Net cash provided by financing activities | 33,914,000 |  |  | — |  |  | 33,914,000 |
Net change in cash and cash equivalents | (26,780,000 | ) |  | — |  |  | (26,780,000 | )
Cash and cash equivalents at beginning of period | 26,780,000 |  |  | — |  |  | 26,780,000 |
Cash and cash equivalents at end of period | $ | — |  |  | $ | — |  |  | $ | — |
Cash paid for: |  |  |  |  |
Interest (net of amounts capitalized) | $ | 1,612,000 |  |  | $ | — |  |  | $ | 1,612,000 |
Income taxes | $ | 848,000 |  |  | $ | — |  |  | $ | 848,000 |
Non Cash: |  |  |  |  |
Fixed asset purchases in accounts payable | $ | 344,000 |  |  | $ | — |  |  | $ | 344,000 |

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