10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from ____________ To

Commission File Number 001-12505

CORE MOLDING TECHNOLOGIES, INC.

_______________________________________________________________

(Exact name of registrant as specified in its charter)

Delaware	31-1481870
(State or other jurisdiction incorporation or organization)	(I.R.S. Employer Identification No.)
800 Manor Park Drive, Columbus, Ohio	43228-0183
(Address of principal executive office)	(Zip Code)

Registrant’s telephone number, including area code (614) 870-5000

N/A

__________________________________________________________

Former name, former address and former fiscal year, if changed since last report.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer,” “large accelerated filer,” and “smaller reporting company,” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨	Non-accelerated Filer ¨	Smaller reporting company	☒
		(Do not check if a smaller reporting company)	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered	Trading Symbol
Common Stock, par value $0.01	NYSE American LLC	CMT

As of August 5, 2021, the latest practicable date, 8,484,477 shares of the registrant’s common stock were issued, which includes 678,400 shares of unvested restricted common stock.

Table of Contents

Part I — Financial Information
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Operations	3
Consolidated Statements of Comprehensive Income (Loss)	4
Consolidated Balance Sheets	5
Consolidated Statement of Stockholders’ Equity	6
Consolidated Statements of Cash Flows	8
Notes to Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3. Quantitative and Qualitative Disclosures About Market Risk	31
Item 4. Controls and Procedures	32
Part II — Other Information
Item 1. Legal Proceedings	33
Item 1A. Risk Factors	33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3. Defaults Upon Senior Securities	33
Item 4. Mine Safety Disclosures	33
Item 5. Other Information	33
Item 6. Exhibits	35
Signatures	36
Index to Exhibits	37

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Part I — Financial Information

Item 1. Financial Statements

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except for per share data)

(Unaudited)

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net sales	$	80,461	$	37,806	$	153,290	$	101,830
Cost of sales	66,725		34,903		126,836		88,161
Gross margin	13,736		2,903		26,454		13,669
Selling, general and administrative expense	7,563		4,109		14,935		10,614
Operating income (loss)	6,173		(1,206)		11,519		3,055
Other income and expense
Interest expense	584		1,197		1,163		2,371
Net periodic post-retirement benefit	(40)		(20)		(80)		(40)
Total other expense	544		1,177		1,083		2,331
Income (loss) before taxes	5,629		(2,383)		10,436		724
Income tax expense (benefit)	1,543		(111)		2,894		(4,965)
Net income (loss)	$	4,086	$	(2,272)	$	7,542	$	5,689
Net income (loss) per common share:
Basic	$	0.48	$	(0.29)	$	0.89	$	0.69
Diluted	$	0.48	$	(0.29)	$	0.89	$	0.69

See notes to unaudited consolidated financial statements.

3

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

(Unaudited)

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income (loss)	$	4,086	$	(2,272)	$	7,542	$	5,689
Other comprehensive income (loss):
Foreign currency hedging derivatives:
Unrealized hedge gain (loss)	—		803		—		(871)
Income tax benefit (expense)	—		(174)		—		186
Interest rate swaps:
Unrealized hedge gain (loss)	—		61		—		(722)
Income tax benefit (expense)	—		(14)		—		164
Post retirement benefit plan adjustments:
Amortization of net actuarial loss	44		45		87		90
Amortization of prior service credits	(124)		(124)		(248)		(248)
Income tax benefit	16		16		33		33
Comprehensive income (loss)	$	4,022	$	(1,659)	$	7,414	$	4,321

See notes to unaudited consolidated financial statements.

4

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except for share data)

(Unaudited)

	June 30, 2021		December 31, 2020
	(Unaudited)
Assets:
Current assets:
Cash and cash equivalents	$	5,596	$	4,131
Accounts receivable, net	44,654		27,584
Inventories, net	22,039		18,360
Income tax receivable	2,504		2,026
Prepaid expenses and other current assets	3,989		4,377
Total current assets	78,782		56,478
Right of use asset	3,985		2,754
Property, plant and equipment, net	74,613		74,052
Goodwill	17,376		17,376
Intangibles, net	10,542		11,516
Other non-current assets	3,132		3,332
Total Assets	$	188,430	$	165,508
Liabilities and Stockholders’ Equity:
Current liabilities:
Current portion of long-term debt	$	3,352	$	2,535
Revolving debt	200		420
Accounts payable	26,423		16,994
Taxes payable	2,209		2,613
Contract liability	5,367		1,319
Compensation and related benefits	9,140		8,305
Accrued other liabilities	4,998		3,809
Total current liabilities	51,689		35,995
Other non-current liabilities	3,648		2,560
Long-term debt	23,243		25,198
Post retirement benefits liability	7,747		7,823
Total Liabilities	86,327		71,576
Commitments and Contingencies	—		—
Stockholders’ Equity:
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at June 30, 2021 and December 31, 2020	—		—
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares 8,040,748 at June 30, 2021 and 7,980,516 at December 31, 2020	80		80
Paid-in capital	36,931		36,127
Accumulated other comprehensive income, net of income taxes	1,247		1,375
Treasury stock - at cost, 3,814,802 shares at June 30, 2021 and 3,810,929 shares at December 31, 2020	(28,568)		(28,521)
Retained earnings	92,413		84,871
Total Stockholders’ Equity	102,103		93,932
Total Liabilities and Stockholders’ Equity	$	188,430	$	165,508

See notes to unaudited consolidated financial statements.

5

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statement of Stockholders’ Equity

(In thousands, except for share data)

(Unaudited)

For the three months ended June 30, 2020:

	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at March 31, 2020	7,882,716	$	79	$	35,088	$	(611)	$	(28,501)	$	84,667	$	90,722
Net loss										(2,272)		(2,272)
Change in post retirement benefits, net of tax $16						(63)						(63)
Change in unrealized foreign currency hedge, net of tax $174						629						629
Change in interest rate swaps, net of tax $14						47						47
Restricted stock vested	82,573	1										1
Share-based compensation				388								388
Balance as of June 30, 2020	7,965,289	$	80	$	35,476	$	2	$	(28,501)	$	82,395	$	89,452
For the six months ended June 30, 2020:
	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2019	7,877,945	$	79	$	34,772	$	1,370	$	(28,501)	$	76,706	$	84,426
Net income										5,689		5,689
Change in post retirement benefits, net of tax $33						(125)						(125)
Change in unrealized foreign currency hedge, net of tax $186						(685)						(685)
Change in interest rate swaps, net of tax $164						(558)						(558)
Restricted stock vested	87,344	1										1
Share-based compensation				704								704
Balance as of June 30, 2020	7,965,289	$	80	$	35,476	$	2	$	(28,501)	$	82,395	$	89,452

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For the three months ended June 30, 2021
	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at March 31, 2021	7,987,800	$	80	$	36,445	$	1,311	$	(28,568)	$	88,327	$	97,595
Net income										4,086		4,086
Change in post retirement benefits, net of tax $16						(64)						(64)
Restricted stock vested	52,948	—										—
Share-based compensation				486								486
Balance at June 30, 2021	8,040,748	$	80	$	36,931	$	1,247	$	(28,568)	$	92,413	$	102,103

For the six months ended June 30, 2021:

	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2020	7,980,516	$	80	$	36,127	$	1,375	$	(28,521)	$	84,871	$	93,932
Net income										7,542		7,542
Change in post retirement benefits, net of tax $33						(128)						(128)
Purchase of treasury stock								(47)				(47)
Restricted stock vested	60,232	—										—
Share-based compensation				804								804
Balance at June 30, 2021	8,040,748	$	80	$	36,931	$	1,247	$	(28,568)	$	92,413	$	102,103

See notes to unaudited consolidated financial statements.

7

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Six months ended June 30,
	2021		2020
Cash flows from operating activities:
Net income	$	7,542	$	5,689
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,161		5,588
Deferred income tax	—		517
Share-based compensation	804		704
Losses (gains) on foreign currency translation	188		(45)
Change in operating assets and liabilities:
Accounts receivable	(17,070)		10,842
Inventories	(3,679)		5,457
Prepaid and other assets	110		(3,667)
Accounts payable	9,119		(7,910)
Accrued and other liabilities	5,557		1,438
Post retirement benefits liability	(236)		(130)
Net cash provided by operating activities	8,496		18,483
Cash flows from investing activities:
Purchase of property, plant and equipment	(5,387)		(1,644)
Net cash used in investing activities	(5,387)		(1,644)
Cash flows from financing activities:
Gross repayments on revolving line of credit	(9,507)		(59,357)
Gross borrowings on revolving line of credit	9,287		47,349
Payments related to the purchase of treasury stock	(47)		—
Payment of deferred loan costs	(2)		—
Proceeds from term loan	—		175
Payment of principal on term loans	(1,375)		(2,258)
Net cash used in financing activities	(1,644)		(14,091)
Net change in cash and cash equivalents	1,465		2,748
Cash and cash equivalents at beginning of period	4,131		1,856
Cash and cash equivalents at end of period	$	5,596	$	4,604
Cash paid for:
Interest	$	935	$	2,377
Income taxes	$	3,503	$	302
Non-cash investing activities:
Fixed asset purchases in accounts payable	$	99	$	146

See notes to unaudited consolidated financial statements.

8

Core Molding Technologies, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States of America for interim reporting, which are less than those required for annual reporting. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (all of which are normal and recurring in nature) necessary to present fairly the financial position of Core Molding Technologies, Inc. and its subsidiaries (“Core Molding Technologies” or the “Company”) at June 30, 2021, and the results of operations and cash flows for the six months ended June 30, 2021. The “Notes to Consolidated Financial Statements” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, should be read in conjunction with these consolidated financial statements.

Core Molding Technologies and its subsidiaries operate in the composites market as one operating segment as a molder of thermoplastic and thermoset structural products. The Company's operating segment consists of one reporting unit. The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, automobiles, marine, construction and other commercial markets. The Company offers customers a wide range of manufacturing processes to fit various program volume and investment requirements. These processes include compression molding of sheet molding compound ("SMC"), resin transfer molding ("RTM"), liquid molding of dicyclopentadiene ("DCPD"), spray-up and hand-lay-up, direct long-fiber thermoplastics ("D-LFT") and structural foam and structural web injection molding ("SIM"). Core Molding Technologies has its headquarters in Columbus, Ohio, and operates seven production facilities in Columbus and Batavia, Ohio; Gaffney, South Carolina; Winona, Minnesota; Matamoros and Escobedo, Mexico; and Cobourg, Ontario, Canada. All production facilities produce structural composite products.

2. CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements.

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates, due to the uncertainty around the magnitude and duration of the COVID-19 pandemic, as well as other factors.

Revenue Recognition: The Company recognizes revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of thermoplastic and thermoset structural products. Revenue from product sales is generally recognized as products are shipped, as the Company transfers title and risk of ownership to the customer and is entitled to payment. In limited circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes title and risk of ownership at the Company's production facility.

Tooling revenue is earned from manufacturing tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over time. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools.

Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs

9

incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.

Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company recorded an allowance for doubtful accounts of $58,000 and $41,000 at June 30, 2021 and December 31, 2020, respectively.

Management also records an allowance for estimated customer chargebacks for returns, price discounts and adjustments, premium freight and expediting costs and customer production line disruption costs resulting from late deliveries. At times, customers have asserted a right to significant production line disruption charges to recover damages as a result of late delivery. The Company typically works with its customers to minimize disruption charges, validate damages and negotiate resolution. The Company records accruals for customer chargebacks when a valid charge is probable and the amount of the charge can be reasonably estimated. Should customer chargebacks fluctuate from the estimated amounts, additional allowances may be necessary. The Company reduced accounts receivable for chargebacks by $440,000 at June 30, 2021 and $179,000 at December 31, 2020.

Inventories: Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $252,000 at June 30, 2021 and $546,000 at December 31, 2020.

Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $46,000 at June 30, 2021, and $554,000 at December 31, 2020. Contract assets are generally classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the six months ended June 30, 2021, the Company recognized no impairments on contract assets. For the six months ended June 30, 2021, the Company recognized $3,107,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2020.

Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more likely than not to realize deferred tax benefits through the generation of future taxable income. For more information, refer to Note 11, "Income Taxes", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates whether impairment exists for property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There was no impairment of the Company's long-lived assets for the six months ended June 30, 2021 or June 30, 2020.

Goodwill: The purchase consideration of acquired businesses have been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment.

The annual impairment tests of goodwill may be completed through qualitative assessments; however the, Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period.

Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, and

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capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a quantitative approach.

There were no indicators of impairment for the six months ended June 30, 2021. The company also performed a qualitative analysis for the year end December 31, 2020 and determined that no impairment was needed for the year 2020.

Self-Insurance: The Company is self-insured with respect to Columbus and Batavia, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus and Batavia, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at June 30, 2021 and December 31, 2020 of $866,000 and $933,000, respectively.

Derivative Instruments: Derivative instruments are utilized to manage exposure to fluctuations in foreign currency exchange rates and interest rates on long term debt obligations. All derivative instruments are formally documented as cash flow hedges and are recorded at fair value at each reporting period. Gains and losses related to currency forward contracts and interest rate swaps are deferred and recorded as a component of Accumulated Other Comprehensive Income in the Consolidated Statement of Stockholders' Equity and then subsequently recognized in the Consolidated Statement of Operations when the hedged item affects net income. The ineffective portion of the change in fair value of a hedge, if any, is recognized in income. For additional information on derivative instruments, see Note 14, "Fair Value of Financial Instruments".

Post-retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. Core Molding Technologies had a liability for post retirement healthcare benefits based on actuarial computed estimates of $9,033,000 at June 30, 2021 and $9,109,000 at December 31, 2020.

3. RECENT ACCOUNTING PRONOUNCEMENTS

Current expected credit loss (CECL)

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under SEC rules, until fiscal years beginning after December 15, 2022. We will adopt this ASU on its effective date of January 1, 2023. This ASU will have no material impact on our consolidated financial statements.

Facilitation of the Effects of Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The ASU provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate (e.g., LIBOR) reform if certain criteria are met, for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The ASU is effective as of March 12, 2020 through December 31, 2022. We will evaluate transactions or contract modifications occurring as a result of reference rate reform and determine whether to apply the optional guidance on an ongoing basis.

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4. NET INCOME (LOSS) PER COMMON SHARE

Net income (loss) per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed similarly but includes the effect of the assumed exercise of dilutive stock appreciation rights and restricted stock under the treasury stock method.

On May 13, 2021, the Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan provides restricted stock award recipients voting rights equivalent to the Company's common stock and accrual of dividends but not receipt of dividends until all conditions or restrictions related to such award have been satisfied. Accordingly, the restricted shares are not considered participating shares. The 2006 Plan provides restricted shares award recipients voting rights equivalent to the Company’s common stock and accrual and receipt of dividends irrespective of any conditions or restrictions related to such award being satisfied. Accordingly, the restricted shares are considered a participating security and the Company is required to apply the two-class method to consider the impact of the restricted shares on the calculation of basic and diluted earnings per share.

The computation of basic and diluted net income (loss) per common share (in thousands, except for per share data) is as follows:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income (loss)	$	4,086	$	(2,272)	$	7,542	$	5,689
Less: net income allocated to participating securities	232		—		437		236
Net income (loss) available to common shareholders	$	3,854	$	(2,272)	$	7,105	$	5,453
Weighted average common shares outstanding — basic	8,002,000		7,916,000		7,994,000		7,899,000
Effect of weighted average dilutive securities	12,000		—		19,000		2,000
Weighted average common and potentially issuable common shares outstanding — diluted	8,014,000		7,916,000		8,013,000		7,901,000
Basic net income (loss) per common share	$	0.48	$	(0.29)	$	0.89	$	0.69
Diluted net income (loss) per common share	$	0.48	$	(0.29)	$	0.89	$	0.69

The computation of basic and diluted net income per participating share (in thousands, except for per share data) is as follows:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income allocated to participating securities	$	232	$	—	$	437	$	236
Weighted average participating shares outstanding — basic	482,000		—		491,000		342,000
Effect of dilutive securities on participating shares	—		—		—		—
Weighted average common and potentially issuable participating shares outstanding — diluted	482,000		—		491,000		342,000
Basic net income per participating share	$	0.48	$	—	$	0.89	$	0.69
Diluted net income per participating share	$	0.48	$	—	$	0.89	$	0.69

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5. MAJOR CUSTOMERS

The Company had five major customers during the six months ended June 30, 2021, Universal Forest Products, Inc. (“UFP”), Navistar, Inc. (“Navistar”), PACCAR, Inc. (“PACCAR”), BRP, Inc. (“BRP”), and Volvo Group North America, LLC (“Volvo”). Major customers are defined as customers whose sales individually consist of more than ten percent of total sales during any annual or interim reporting period in the current year. The loss of a significant portion of sales to these customers could have a material adverse effect on the business of the Company.

The following table presents sales revenue for the above-mentioned customers for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
UFP product sales	$	15,115	$	9,484	$	25,772	$	18,471
UFP tooling sales	—		—		—		—
Total UFP sales	15,115		9,484		25,772		18,471
Navistar product sales	10,969		6,500		20,906		17,166
Navistar tooling sales	—		1,088		306		1,186
Total Navistar sales	10,969		7,588		21,212		18,352
PACCAR product sales	10,830		3,167		20,184		11,116
PACCAR tooling sales	503		—		832		207
Total PACCAR sales	11,333		3,167		21,016		11,323
BRP product sales	10,420		2,206		18,989		9,453
BRP tooling sales	124		113		238		333
Total BRP sales	10,544		2,319		19,227		9,786
Volvo product sales	7,429		2,167		17,554		9,740
Volvo tooling sales	27		622		47		2,147
Total Volvo sales	7,456		2,789		17,601		11,887
Other product sales	24,354		12,323		44,846		31,831
Other tooling sales	690		136		3,616		180
Total other sales	25,044		12,459		48,462		32,011
Total product sales	79,117		35,847		148,251		97,777
Total tooling sales	1,344		1,959		5,039		4,053
Total sales	$	80,461	$	37,806	$	153,290	$	101,830

-+

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6. INVENTORY

Inventories, net consisted of the following (in thousands):

	June 30, 2021		December 31, 2020
Raw materials	$	16,010	$	11,640
Work in process	1,717		1,679
Finished goods	4,312		5,041
Total	$	22,039	$	18,360

Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage.

7. LEASES

The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to four years, some of which include options to extend the lease for five years. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued other liabilities and other non-current liabilities in the Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

The Company used the applicable incremental borrowing rate at implementation date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate. At each reporting period when there is a new lease initiated, the Company will utilize its incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities.

The components of lease expense were as follows (in thousands):

	Three Months Ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Operating lease cost	$	386	$	357	$	754	$	714
Total net lease cost	$	386	$	357	$	754	$	714

Other supplemental balance sheet information related to leases was as follows (in thousands):

	June 30, 2021		December 31, 2020
Operating leases:
Operating lease right of use assets	$	3,985	$	2,754
Total operating lease right of use assets	$	3,985	$	2,754
Current operating lease liabilities(A)	$	1,252	$	1,023
Noncurrent operating lease liabilities(B)	2,765		1,670
Total operating lease liabilities	$	4,017	$	2,693

(A)Current operating lease liabilities are included in accrued other liabilities on the Consolidated Balance Sheets.

(B)Noncurrent operating lease liabilities are included in other non-current liabilities on the Consolidated Balance Sheets.

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The following table presents certain information related to lease terms and discount rates for leases as of June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Weighted average remaining lease term (in years):
Operating leases	4.0		3.5
Weighted average discount rate:
Operating leases	5.5	%	5.9	%

Other information related to leases were as follows (in thousands) :

	Six months ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases(C)	$	754	$	714

(C)Cash flow from operating leases included in prepaid and other assets on the Consolidated Statements of Cash Flows.

As of June 30, 2021, maturities of lease liabilities were as follows (in thousands):

	Operating Leases
2021 (remainder of year)	$	759
2022	1,168
2023	1,068
2024	1,074
2025 and beyond	629
Total lease payments	4,698
Less: imputed interest	(681)
Total lease obligations	4,017
Less: current obligations	(1,252)
Long-term lease obligations	$	2,765

As of December 31, 2020, maturities of lease liabilities were as follows (in thousands):

	Operating Leases
2021	$	1,215
2022	811
2023	706
2024	705
2025 and beyond	—
Total lease payments	3,437
Less: imputed interest	(744)
Total lease obligations	2,693
Less: current obligations	(1,023)
Long-term lease obligations	$	1,670

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8. PROPERTY, PLANT & EQUIPMENT

Property, plant and equipment, net consisted of the following for the periods specified (in thousands):

	June 30, 2021		December 31, 2020
Property, plant and equipment	$	180,062	$	174,553
Accumulated depreciation	(105,449)		(100,501)
Property, plant and equipment — net	$	74,613	$	74,052

Property, plant, and equipment are recorded at cost, unless obtained through acquisition, then assets are recorded at estimated fair value at the date of acquisition. Depreciation is provided on a straight-line method over the estimated useful lives of the assets. The carrying amount of long-lived assets is evaluated annually to determine if an adjustment to the depreciation period or to the unamortized balance is warranted. Depreciation expense for the three months ended June 30, 2021 and 2020 was $2,461,000 and $2,216,000, respectively. Depreciation expense for the six months ended June 30, 2021 and 2020 was $4,943,000 and $4,488,000, respectively. Amounts invested in capital additions in progress were $4,095,000 and $1,422,000 at June 30, 2021 and December 31, 2020, respectively. At June 30, 2021 and December 31, 2020, purchase commitments for capital expenditures in progress were $4,705,000 and $677,000, respectively.

9. GOODWILL AND INTANGIBLES

Goodwill activity for the six months ended June 30, 2021 consisted of the following (in thousands):

Balance at December 31, 2020	$	17,376
Additions	—
Impairment	—
Balance at June 30, 2021	$	17,376

Intangibles, net at June 30, 2021 were comprised of the following (in thousands):

Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(63)	$	187
Trademarks	10 Years	1,610		(557)		1,053
Non-competition agreement	5 Years	1,810		(1,252)		558
Developed technology	7 Years	4,420		(2,183)		2,237
Customer relationships	10-12 Years	9,330		(2,823)		6,507
Total		$	17,420	$	(6,878)	$	10,542

Intangibles, net at December 31, 2020 were comprised of the following (in thousands):

Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(58)	$	192
Trademarks	10 Years	1,610		(476)		1,134
Non-competition agreement	5 Years	1,810		(1,071)		739
Developed technology	7 Years	4,420		(1,869)		2,551
Customer relationships	10-12 Years	9,330		(2,430)		6,900
Total		$	17,420	$	(5,904)	$	11,516

The aggregate intangible asset amortization expense was $487,000 for the three months ended June 30, 2021 and 2020. The aggregate intangible asset amortization expense was $974,000 for the six months ended June 30, 2021 and 2020.

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10. POST RETIREMENT BENEFITS

The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Pension expense:
Multi-employer plan	$	232	$	145	$	421	$	391
Defined contribution plan	316		215		618		508
Total pension expense	548		360		1,039		899
Health and life insurance:
Interest cost	40		59		81		118
Amortization of prior service credits	(124)		(124)		(248)		(248)
Amortization of net loss	44		45		87		90
Net periodic benefit credit	(40)		(20)		(80)		(40)
Total post retirement benefits expense	$	508	$	340	$	959	$	859

The Company made payments of $683,000 to pension plans and $157,000 for post-retirement healthcare and life insurance during the six months ended June 30, 2021. For the remainder of 2021, the Company expects to make approximately $1,332,000 of pension plan payments, of which $772,000 was accrued at June 30, 2021. The Company also expects to make approximately $1,129,000 of post-retirement healthcare and life insurance payments for the remainder of 2021, all of which were accrued at June 30, 2021.

11. DEBT

Debt consists of the following (in thousands):

	June 30, 2021		December 31, 2020
Wells Fargo term loans payable	$	15,191	$	16,390
FGI term loans payable	12,988		13,148
Leaf Capital term loan payable	136		152
Total	28,315		29,690
Less deferred loan costs	(1,720)		(1,957)
Less current portion	(3,352)		(2,535)
Long-term debt	$	23,243	$	25,198

Term Loans

Wells Fargo Term Loans

On October 27, 2020, the Company entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, lead arranger and book runner, and the lenders party thereto (the “Lenders”). Pursuant to the terms of the Credit Agreement, the Lenders made available to the Company secured term loans (the “WF Term Loans”) in the maximum aggregate principal amount of $18,500,000 ($16,790,000 of which was advanced to the Company on October 28, 2020). The proceeds from the WF Term Loans were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the financing.

At the option of the Company, the WF Term Loans bears interest at a per annum rate equal to LIBOR plus a margin of 300 basis points or base rate plus a margin of 200 basis points. LIBOR rate means the greater of (a) 0.75% per annum and (b) the per annum published LIBOR rate for interest periods of one, three or six months as chosen by the Company. Base rate is the greater of (a) 1.0% per annum, (b) the Federal Funds Rate plus 0.5%, (c) LIBOR Rate plus 100 basis or (d) prime rate. The weighted average interest rate was 3.77% as of June 30, 2021.

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The WF Term Loans are to be repaid in monthly installments of $200,000 plus interest, with the remaining outstanding balance due on November 30, 2024, subject to certain optional and mandatory repayment terms. The Company’s obligations under the WF Term Loans are unconditionally guaranteed by each of the Company’s U.S. and Canadian subsidiaries, with such obligations of the Company and such subsidiaries being secured by a lien on substantially all of their U.S. and Canadian assets.

The WF Term Loans contains reporting, indebtedness, and financial covenants. The Company is in compliance with its covenants as of June 30, 2021.

Voluntary prepayments of amounts outstanding under the WF Term Loans are permitted at any time without premium or penalty. To the extent applicable, LIBOR breakage fees may be charged in connection with any prepayment.

FGI Equipment Finance LLC Term Loan

On October 20, 2020, the Company entered into a Master Security Agreement and a Promissory Note, among FGI Equipment Finance LLC, (“FGI”) the Company as debtor, and each of Core Composites Corporation, a subsidiary of the Company organized in Delaware, and CC HPM, S. de R.L. de C.V., a subsidiary of the Company organized in Mexico, as guarantors, the principal amount of $13,200,000 (the “FGI Term Loan”). On October 27, 2020, FGI advanced to the Company $12,000,000 which proceeds were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the transactions, and $1,200,000 which proceeds were used to fund a security deposit to be held by FGI. Interest on the FGI Term Loan is a fixed rate of 8.25% and is payable monthly. The security deposit of $1,200,000 is included in other assets on the Consolidated Balance Sheets.

Following the advance of funds by FGI, the FGI Term Loan is to be repaid in monthly principal and interest installments of $117,000 for the first 12 months, $246,000 for the subsequent 59 months and $1,446,000 due on October 31, 2026, subject to certain optional and mandatory repayment terms. The Company’s obligations under the Master Security Agreement are secured by certain machinery and equipment of the guarantors located in Mexico, and real property of Core Composites de Mexico, S. de R.L. de C.V.,a subsidiary of the Company organized in Mexico, located in Matamoros, Mexico.

The Company may prepay in full or in part (but not less than the amount equal to 20% of the original principal amount of the loan) outstanding amounts before they are due on any scheduled Payment Date upon at least thirty (30) days’ prior written notice. The Company will pay a “Prepayment Fee” in an amount equal to an additional sum equal to the following percentage of the principal amount to be prepaid for prepayments occurring in the indicated period: four percent (4.0%) (for prepayments occurring prior to the first anniversary of the FGI Term Loan); three percent (3.0%) (for prepayments occurring on the first anniversary of the FGI Term Loan until the second anniversary of the FGI Term Loan); two percent (2.0%) (for prepayments occurring on and after the second anniversary of the FGI Term Loan and prior to the third anniversary of the Loan ); and one percent (1.0%) (for prepayments occurring any time thereafter).

Leaf Capital Funding

On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment. The parties agreed to a fixed interest rate of 5.5% and a term of 60 months.

Revolving Loans

Wells Fargo Revolving Loan

On October 27, 2020, the Company entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, lead arranger and book runner, and the lenders party thereto (the “Lenders”). Pursuant to the terms of the Credit Agreement, the Lenders made available to the Company a revolving loan commitment (the “WF Revolving Loan”) of $25,000,000 ($8,745,000 of which was advanced to the Company on October 28, 2020). The proceeds from the WF Revolving Loan were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the financing.

The Credit Agreement also makes available to the Company an incremental revolving commitment in the maximum amount of $10,000,000 at the Company’s option at any time during the three-year period following the closing.

The borrowing availability under the WF Revolving Loan is the lesser of (a) the loan commitment of $25,000,000 or (b) the sum of 90% of eligible investment grade accounts receivable, 85% of non-investment grade eligible accounts receivable and 65% of eligible inventory.

At the option of the Company, the WF Revolving Loan bears interest at a per annum rate equal to LIBOR plus a margin of 200 to 250 basis points or base rate plus a margin of 100 to 150 basis points, with the margin rate being based on the excess

18

availability amount under the line of credit. LIBOR rate means the greater of (a) 0.75% per annum and (b) the per annum published LIBOR rate for interest periods of one, three or six months as chosen by the Company. Base rate is the greater of (a) 1.0% per annum, (b) the Federal Funds Rate plus 0.5%, (c) LIBOR Rate plus 100 basis and (d) prime rate. The weighted average interest rate was 4.25% as of June 30, 2021.

The WF Revolving Loan commitment terminates, and all outstanding borrowings thereunder must be repaid, by November 30, 2024. The Company has $23,731,000 of available rate revolving loans of which $200,000 is outstanding as of June 30, 2021.

The WF Revolving Loan contains the same covenants as the WF Term Loans.

Wells Fargo Bank will issue up to $2,000,000 of Letters of Credit in accordance with the terms of the Credit Agreement upon the Company’s request. As of June 30, 2021, the Company had one Letter of Credit outstanding for $160,000.

KeyBank Loan

On June 30, 2020, the Company had a term loan and revolving loan balance of $36,000,000 and $167,000 with KeyBank National Association, respectively. The Company’s term loan and revolving loan had variable interest rate of 8.00% at June 30, 2020.

Bank Covenants

The Company is required to meet certain financial covenants included in the Credit Agreement with respect to fixed coverage charge ratio. As of June 30, 2021, the Company was in compliance with its financial covenants associated with the loans made under the Credit Agreement as described above.

12. INCOME TAXES

The Company’s Consolidated Balance Sheets include a net non-current deferred tax asset of $937,000 for the Canadian and Mexican tax jurisdictions and a net non-current deferred tax liability of $883,000 for the U.S. tax jurisdiction at June 30, 2021. The non-current deferred tax asset is classified in other non-current assets and non-current deferred tax liabilities are in other non-current liabilities. The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more likely than not to realize deferred tax benefits through the generation of future taxable income. As of June 30, 2021 and December 31, 2020, the Company had no liability for unrecognized tax benefits. The Company does not anticipate that unrecognized tax benefits will significantly change within the next twelve months.

Income tax expense for the six months ended June 30, 2021 is estimated to be $2,894,000, approximately 27.7% of income before income taxes. Income tax benefit for the six months ended June 30, 2020 was estimated to be $4,965,000, approximately 686% of income before income taxes.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was enacted in response to the COVID-19 pandemic, and among other things, provides tax relief to businesses. Tax provisions of the CARES Act include the deferral of certain payroll taxes, relief for retaining employees, and other provisions, including allowing net operating losses to be carried back five years versus an indefinite carryforward. An income tax benefit of $5,638,000 was realized in the first quarter of 2020. The income tax benefit consists of the reversal of the full valuation allowance against net deferred tax assets in the United States for approximately $3,267,000. The income tax benefit also consists of a rate benefit of $2,371,000 based on the losses being carried back to years where the Company paid tax at 34% compared to the valuation of the losses being recorded at the 21% current U.S. statutory tax rate.

The Company files income tax returns in the U.S., Mexico, Canada and various state jurisdictions. The Company is not subject to U.S. federal and state income tax examinations by tax authorities for years prior to 2017, not subject to Mexican income tax examinations by Mexican authorities for years prior to 2015 and not subject to Canadian tax examinations by Canadian authorities for years prior to 2018.

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13. STOCK BASED COMPENSATION

On May 13, 2021, The Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan allows for grants to employees, officers, non-employee directors, consultants, independent contractors and advisors of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards (“stock awards”) up to an aggregate of 924,823 awards. Awards can be granted under the 2021 Plan through the earlier of May 13, 2031, or the date the maximum number of available awards under the 2021 Plan have been granted. No new awards may be granted from the 2006 Plan.

Awards under the 2021 Plan vest over one to three years and shares previously awarded and currently unvested under the 2006 Plan vest over three years. Shares granted under both the 2006 and 2021 Plans vest upon the date of a participant’s death, disability or change in control.

Restricted Stock

The Company grants shares of its common stock to certain directors, officers, key managers and employees in the form of unvested stock and units (“Restricted Stock”). These awards are recorded at the market value of the Company's common stock on the date of issuance and amortized ratably as compensation expense over the applicable vesting period, which is typically three years. The Company adjusts compensation expense for actual forfeitures, as they occur.

The following summarizes the status of Restricted Stock and changes during the six months ended June 30, 2021:

	Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2020	507,835	$	6.25
Granted	250,635	13.74
Vested	(64,106)	7.86
Forfeited	(15,964)	5.30
Unvested balance at June 30, 2021	678,400	$	8.85

At June 30, 2021 and 2020, there was $4,783,000 and $2,249,000, respectively, of total unrecognized compensation expense, related to Restricted Stock grants. That cost is expected to be recognized over the weighted-average period of 2.6 years. Total compensation cost related to Restricted Stock grants for the three months ended June 30, 2021 and 2020 was $456,000 and $357,000, respectively. Total compensation cost related to Restricted Stock grants for the six months ended June 30, 2021 and 2020 was $745,000 and $1,121,000, respectively, all of which was recorded to selling, general and administrative expense.

During the six months ended June 30, 2021, employees surrendered 3,874 shares of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted awards. No shares were surrendered for the six months ended June 30, 2020.

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Stock Appreciation Rights

As part of the Company's 2020 annual grant, Stock Appreciation Rights ("SARs") were granted with a grant price of $10. These awards have a contractual term of five years and vest ratably over a period of three years or immediately vest if the recipient is over 65 of age. These awards are valued using the Black-Scholes option pricing model.

A summary of the Company's stock appreciation rights activity for the six months ended June 30, 2021 is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2020	180,925	$	2.57
Granted	—	—
Exercised	—	—
Forfeited	(3,909)	2.57
Outstanding at end of the period ended June 30, 2021	177,016	$	2.57
Exercisable at end of the period ended June 30, 2021	124,801	$	2.57

The average remaining contractual term for those SARs outstanding at June 30, 2021 is 2.8 years, with aggregate intrinsic value of $961,000. At June 30, 2021 and 2020, there was $112,000 and $260,000, respectively, of total unrecognized compensation expense, related to SARs. That cost is expected to be recognized over the weighted- average period of 0.8 years. Total compensation cost related to SARs for the three months ended June 30, 2021 and 2020 was $31,000 and $31,000, respectively. Total compensation cost related to SARs for the six months ended June 30, 2021 and 2020 was $60,000 and $55,000, respectively, all of which was recorded to selling, general and administrative expense.

14. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This guidance provides a fair value framework that requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.

The three levels are defined as follows:

Level 1 -Quoted prices in active markets for identical assets and liabilities.

Level 2 -Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.

Level 3 -Significant unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability.

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, debt, interest rate swaps and foreign currency derivatives. Cash and cash equivalents, accounts receivable and accounts payable carrying values as of June 30, 2021 and December 31, 2020 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of WF Term Loan and WF Revolving Loan approximate fair value as of June 30, 2021 and December 31, 2020 due to the short term nature of the underlying variable rate LIBOR agreements. The FGI Term Loan approximate fair value as of June 30, 2021 and December 31, 2020 due to immaterial movement in interest rates since the Company entered into the Promissory Note on October 20, 2020.

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The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the three months ended June 30, 2021 and 2020 (in thousands):

Derivatives in subtopic 815-20 Cash Flow Hedging Relationship	Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income(A)	Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
	2021		2020			2021		2020
Foreign exchange contracts	$	—	$	142	Cost of goods sold	$	—	$	526
					Selling, general and administrative expense	$	—	$	68
Interest rate swaps	$	—	$	(915)	Interest expense	$	—	$	(1,620)

The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the six months ended June 30, 2021 and 2020 (in thousands):

Derivatives in subtopic 815-20 Cash Flow Hedging Relationship	Amount of Unrealized Loss Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Loss Reclassified from Accumulated Other Comprehensive Income (A)	Amount of Realized Loss Reclassified from Accumulated Other Comprehensive Income
	2021		2020			2021		2020
Foreign exchange contracts	$	—	$	(532,000)	Cost of goods sold	$	—	$	(306,000)
					Selling, general and administrative expense	$	—	$	(34,000)
Interest rate swaps	$	—	$	(528,000)	Interest expense	$	—	$	(194,000)

(A)The foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income is allocated to cost of goods sold and selling, general and administrative expense based on the percentage of foreign currency spend.

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15. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents changes in Accumulated Other Comprehensive Income, net of tax, for the six months ended June 30, 2021 and 2020 (in thousands):

2020:	Derivative Hedging Activities		Post Retirement Benefit Plan Items(A)		Accumulated Other Comprehensive Income
Balance at December 31, 2019	$	(191)	$	1,561	$	1,370
Other comprehensive loss before reclassifications	(1,060)		—		(1,060)
Amounts reclassified from accumulated other comprehensive income	(533)		(158)		(691)
Income tax benefit	350		33		383
Balance at June 30, 2020	$	(1,434)	$	1,436	$	2
2021:
Balance at December 31, 2020	$	—	$	1,375	$	1,375
Other comprehensive income before reclassifications	—		—		—
Amounts reclassified from accumulated other comprehensive income	—		(161)		(161)
Income tax benefit	—		33		33
Balance at June 30, 2021	$	—	$	1,247	$	1,247

(A)The effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income is included in other income and expense on the Consolidated Statements of Operations. These Accumulated Other Comprehensive Income components are included in the computation of net periodic benefit cost (see Note 10, "Post Retirement Benefits" for additional details). The tax effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income is included in income tax expense on the Consolidated Statements of Operations.

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Part I — Financial Information

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of the federal securities laws. As a general matter, forward-looking statements are those focused upon future plans, objectives or performance as opposed to historical items and include statements of anticipated events or trends and expectations and beliefs relating to matters not historical in nature. Such forward-looking statements involve known and unknown risks and are subject to uncertainties and factors relating to Core Molding Technologies' operations and business environment, all of which are difficult to predict and many of which are beyond Core Molding Technologies' control. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expect,” “intend,” “plans,” “projects,” “believes,” “estimates,” “encouraged,” “confident” and similar expressions are used to identify these forward-looking statements. These uncertainties and factors could cause Core Molding Technologies' actual results to differ materially from those matters expressed in or implied by such forward-looking statements.

Core Molding Technologies believes that the following factors, among others, could affect its future performance and cause actual results to differ materially from those expressed or implied by forward-looking statements made in this Quarterly Report on Form 10-Q: business conditions in the plastics, transportation, marine and commercial product industries (including changes in demand for truck production); federal and state regulations (including engine emission regulations); general economic, social, regulatory (including foreign trade policy) and political environments in the countries in which Core Molding Technologies operates; the adverse impact of coronavirus (COVID-19) global pandemic on our business, results of operations, financial position, liquidity or cash flow, as well as impact on customers and supply chains; safety and security conditions in Mexico and Canada; fluctuations in foreign currency exchange rates; dependence upon certain major customers as the primary source of Core Molding Technologies’ sales revenues; efforts of Core Molding Technologies to expand its customer base; the ability to develop new and innovative products and to diversify markets, materials and processes and increase operational enhancements; ability to accurately quote and execute manufacturing processes for new business; the actions of competitors, customers, and suppliers; failure of Core Molding Technologies’ suppliers to perform their obligations; the availability of raw materials; inflationary pressures; new technologies; regulatory matters; labor relations; labor availability; a work stoppage or labor disruption at one of our union locations or one of our customer or supplier locations; the loss or inability of Core Molding Technologies to attract and retain key personnel; the Company's ability to successfully identify, evaluate and manage potential acquisitions and to benefit from and properly integrate any completed acquisitions; federal, state and local environmental laws and regulations; the availability of sufficient capital; the ability of Core Molding Technologies to provide on-time delivery to customers, which may require additional shipping expenses to ensure on-time delivery or otherwise result in late fees and other customer charges; risk of cancellation or rescheduling of orders; management’s decision to pursue new products or businesses which involve additional costs, risks or capital expenditures; inadequate insurance coverage to protect against potential hazards; equipment and machinery failure; product liability and warranty claims; and other risks identified from time to time in Core Molding Technologies’ other public documents on file with the Securities and Exchange Commission, including those described in Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2020.

Description of the Company

Core Molding Technologies and its subsidiaries operate in one operating segment as a molder of thermoplastic and thermoset structural products. The Company's operating segment consists of one reporting unit, Core Molding Technologies. The Company offers customers a wide range of manufacturing processes to fit various program volume and investment requirements. These processes include compression molding of sheet molding compound ("SMC"), resin transfer molding ("RTM"), liquid molding of dicyclopentadiene ("DCPD"), spray-up and hand-lay-up, direct long-fiber thermoplastics ("D-LFT") and structural foam and structural web injection molding ("SIM"). Core Molding Technologies serves a wide variety of markets, including the medium and heavy-duty truck, marine, automotive, agriculture, construction, and other commercial products. The demand for Core Molding Technologies’ products is affected by economic conditions in the United States, Mexico, and Canada. Core Molding Technologies’ manufacturing operations have a significant fixed cost component. Accordingly, during periods of changing demand, the profitability of Core Molding Technologies’ operations may change proportionately more than revenues from operations.

In 1996, Core Molding Technologies acquired substantially all of the assets and assumed certain liabilities of Columbus Plastics, a wholly owned operating unit of Navistar’s truck manufacturing division since its formation in late 1980. Columbus Plastics, located in Columbus, Ohio, was a compounder and compression molder of SMC. In 1998, Core Molding Technologies began operations at its second facility in Gaffney, South Carolina, and in 2001, Core Molding Technologies added a production

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facility in Matamoros, Mexico by acquiring certain assets of Airshield Corporation. As a result of this acquisition, Core Molding Technologies expanded its fiberglass molding capabilities to include the spray up, hand-lay-up open mold processes and RTM closed molding. In 2005, Core Molding Technologies acquired certain assets of the Cincinnati Fiberglass Division of Diversified Glass, Inc., a Batavia, Ohio-based, privately held manufacturer and distributor of fiberglass reinforced plastic components supplied primarily to the heavy-duty truck market. In 2009, the Company completed construction of a new production facility in Matamoros, Mexico that replaced its leased facility. In March 2015, the Company acquired substantially all of the assets of CPI Binani, Inc., a wholly owned subsidiary of Binani Industries Limited, located in Winona, Minnesota, which expanded the Company's process capabilities to include D-LFT and diversified the customer base. In January 2018, the Company acquired substantially all the assets of Horizon Plastics, which has manufacturing operations in Cobourg, Ontario and Escobedo, Mexico. This acquisition expanded the Company's customer base, geographic footprint, and process capabilities to include structural foam and structural web molding.

Business Overview

General

The Company’s business and operating results are directly affected by changes in overall customer demand, operational costs and performance and leverage of our fixed cost and selling, general and administrative ("SG&A") infrastructure.

Product sales fluctuate in response to several factors including many that are beyond the Company’s control, such as general economic conditions, interest rates, government regulations, consumer spending, labor availability, and our customers’ production rates and inventory levels. Product sales driven by demand from customers in many different markets with different levels of cyclicality and seasonality. The North American truck market, which is highly cyclical, accounted for 42% of the Company’s product revenue for both the six months ended June 30, 2021 and 2020 respectively.

Operating performance is dependent on the Company’s ability to manage changes in input costs for items such as raw materials, labor, and overhead operating costs. Performance is also affected by manufacturing efficiencies, including items such as on time delivery, quality, scrap, and productivity. Market factors of supply and demand can impact operating costs. In periods of rapid increases or decreases in customer demand, the Company is required to ramp operations activity up or down quickly which may impact manufacturing efficiencies more than in periods of steady demand.

Operating performance is also dependent on the Company’s ability to effectively launch new customer programs, which are typically extremely complex in nature. The start of production of a new program is the result of a process of developing new molds and assembly equipment, validation testing, manufacturing process design, development and testing, along with training and often hiring employees. Meeting the targeted levels of manufacturing efficiency for new programs usually occurs over time as the Company gains experience with new tools and processes. Therefore, during a new program launch period, start-up costs and inefficiencies can affect operating results.

Six Months ended June 30, 2021

Product sales for the six months ended June 30, 2021 increased 51.6% compared to the same period in 2020. Operating income increased from $3,055,000 to $11,519,000 for the six months ended June 30, 2021 compared to the same period a year ago. Higher demand from our heavy-duty truck, building product, power sports, and consumer product customers were the primary drivers of the sales increase. The increase in operating income was largely due to improved manufacturing efficiencies and cost savings at several of the Company's facilities.

For the six months ended June 30, 2021, product sales to truck customers increased by 41.3% compared to the same period in 2020, as a result of a cyclical uptick in the truck market and 2020 sales being negatively impacted by the effects of COVID-19 related customer shutdown. According to ACT Research, North American heavy-duty truck production increased approximately 60% for the six months ended June 30, 2021 compared to the same period in 2020.

The Company experienced higher raw material and labor costs in the first half of 2021 compared to the same period of 2020 due to supply disruptions and overall increase in global demand of certain materials. For the six months ended June 30, 2021, the Company had raw material inflation of approximately $10,387,000 compared to the first six months of 2020. The Company has the ability to pass through a portion, but not all, of the cost increases to its customers. The Company was able to recoup approximately $5,330,000 of the raw material inflation during the six months ended June 30, 2021.

For the six months ended June 30, 2021, the Company recorded net income of $7,542,000 or $0.89 per basic and diluted share, compared with $5,689,000, or $0.69, per basic and diluted share for the six months ended June 30, 2020. In 2020, net income was favorably impacted by $5,638,000, or $0.69 per share, as a result of a tax valuation allowance reversal and a tax rate benefit due to tax law changes that allowed the Company to carryback net operating losses to offset taxable income in 2013

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through 2015, where the Company paid tax at 34% compared to the valuation of the losses being recorded at the 21% current United States statutory rate.

Looking forward, based on industry analysts’ projections and customer forecasts, the Company expects sales levels for the second half of 2021 to increase compared to the second half of 2020. In the Company’s largest market, North American heavy-duty truck, ACT Research is forecasting production to increase approximately 37%. In several other industries the Company serves, customers are forecasting higher demand in 2021 including in the power sports, and consumer goods markets. Although we anticipate higher sales the Company has experienced disruption in demand from our customers as their supply chain disruptions have caused them to temporary stop production at times. The Company anticipates customer supply chain disruptions will affect the Company’s sales for the remainder of 2021.

The Company has experienced supply disruptions and raw material inflation due to ongoing raw material shortages. Although the Company’s supply chain disruptions are decreasing, and the Company has been able to meet customer demand, we anticipate potential disruptions to continue which could impact revenues through the remainder of 2021. The Company also anticipates increased raw material costs to continue through the remainder of 2021. The Company anticipates to recoup some, but not all of the raw material price increases.

Results of Operations

Three Months Ended June 30, 2021, as Compared to Three Months Ended June 30, 2020

Net sales for the three months ended June 30, 2021 and 2020 totaled $80,461,000 and $37,806,000, respectively. Included in net sales were tooling project sales of $1,344,000 and $1,959,000 for the three months ended June 30, 2021 and 2020, respectively. These sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis. Product sales, excluding tooling project sales, for the three months ended June 30, 2021 were $79,117,000 compared to $35,847,000 for the same period in 2020, which was significantly impacted by COVID-19. This increase in sales is primarily the result of higher demand from the heavy-duty truck, building product, power sports, and consumer product markets.

Gross margin was approximately 17.1% of sales for the three months ended June 30, 2021, compared with 7.7% for the three months ended June 30, 2020. The gross margin percentage increase was related to higher leverage of fixed cost of 6.2% and favorable product mix and production efficiencies of 6.1%, offset by net unfavorable changes in selling prices and materials cost of 2.9%.

Selling, general and administrative expense (“SG&A”) was $7,563,000 for the three months ended June 30, 2021, compared to $4,109,000 for the three months ended June 30, 2020. Increased SG&A expenses resulted primarily from higher labor and benefits costs of $1,489,000 and increased travel costs of $148,000. SG&A for the three months ended June 30, 2020 was impacted from cost savings efforts implemented due to COVID-19 and includes the favorable impact of COVID-19 related government subsidies of $1,391,000.

Interest expense totaled $584,000 for the three months ended June 30, 2021, compared to interest expense of $1,197,000 for the three months ended June 30, 2020. The decrease in interest expense was due to a lower average outstanding debt balance, and lower interest rates during the three months ended June 30, 2021, when compared to the same period in 2020. Interest expense for the three months ended June 30, 2020 includes $225,000 of forbearance fees resulting from an amendment of the Company’s credit agreement.

Income tax expense for the three months ended June 30, 2021 was 27.4% of income before income taxes, and income tax benefit for the three months ended June 30, 2020 was 4.7% of income before income taxes.

The Company recorded net income for the three months ended June 30, 2021 of $4,086,000 or $0.48 per basic and diluted share, compared with a net loss of $2,272,000, or ($0.29) per basic and diluted share, for the three months ended June 30, 2020.

Comprehensive income totaled $4,022,000 for the three months ended June 30, 2021, compared to a loss of $1,659,000 for the same period ended June 30, 2020. The increase was primarily related to the increase in net income of $6,358,000, offset by decreases related to the foreign currency derivatives, net of tax of $629,000.

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Six Months Ended June 30, 2021, as Compared to Six Months Ended June 30, 2020

Net sales for the six months ended June 30, 2021 and 2020 totaled $153,290,000 and $101,830,000, respectively. Included in net sales were tooling project sales of $5,039,000 and $4,053,000 for the six months ended June 30, 2021 and 2020, respectively. These sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis. Product sales, excluding tooling project sales, for the six months ended June 30, 2021 were $148,251,000 compared to $97,777,000 for the same period in 2020. This increase in sales is primarily the result of higher demand from the heavy-duty truck, building product, power sports, and consumer product markets.

Gross margin was approximately 17.3% of sales for the three months ended June 30, 2021, compared with 13.4% for the six months ended June 30, 2020. The gross margin percentage increase was due to favorable product mix and production efficiencies of 4.2% and positive impact related to fixed cost leverage of 3.1%, offset by net unfavorable changes in selling prices and materials cost of 3.4%.

Selling, general and administrative expense (“SG&A”) was $14,935,000 for the six months ended June 30, 2021, compared to $10,614,000 for the six months ended June 30, 2020. Increased SG&A expenses resulted primarily from higher labor and benefits costs of $2,097,000, increased professional and outside service fees of $349,000 and increased travel costs of $147,000. SG&A for the six months ended June 30, 2020 was impacted from cost savings efforts implemented due to COVID-19 and includes the favorable impact of COVID-19 related government subsidies of $1,391,000.

Interest expense totaled $1,163,000 for the six months ended June 30, 2021, compared to interest expense of $2,371,000 for the six months ended June 30, 2020. The decrease in interest expense was due to a lower average outstanding debt balance, and lower interest rates during the six months ended June 30, 2021, when compared to the same period in 2020. Interest expense for the six months ended June 30, 2020 includes $450,000 of forbearance fees resulting from amendments to the Company’s credit agreement.

Income tax expense for the six months ended June 30, 2021 was 27.7% of income before income taxes, and income tax benefit for the six months ended June 30, 2020 was 686% of income before income taxes. In 2020, net income was favorably impacted by $5,638,000, or $0.69 per share, as a result of a tax valuation allowance reversal and a tax rate benefit due to tax law changes that allow the Company to carryback net operating losses to offset taxable income in 2013 through 2015, where the Company paid tax at 34% compared to the valuation of the losses being recorded at the 21% current United States statutory rate.

The Company recorded net income for the six months ended June 30, 2021 of $7,542,000 or $0.89 per basic and diluted share, compared with $5,689,000, or $0.69 per basic and diluted share, for the six months ended June 30, 2020.

Comprehensive income totaled $7,414,000 for the six months ended June 30, 2021, compared to $4,321,000 for the same period ended June 30, 2020. The increase was primarily related to the increase in net income of $1,853,000, increases related to the foreign currency derivatives, net of tax of $685,000 and interest rate swaps derivatives, net of tax of $558,000.

Liquidity and Capital Resources

The Company’s primary sources of funds have been cash generated from operating activities and borrowings from third parties. Primary cash requirements are for operating expenses, capital expenditures, repayments of debt, and acquisitions. The Company from time to time will enter into foreign exchange contracts and interest rate swaps to mitigate risk of foreign exchange and interest rate volatility. The Company had no outstanding foreign exchange contracts nor interest rate swaps as of June 30, 2021.

Cash provided by operating activities for the six months ended June 30, 2021 totaled $8,496,000. Net income of $7,542,000 positively impacted operating cash flows. Non-cash deductions of depreciation and amortization included in net income amounted to $6,161,000. Changes in working capital decreased cash provided by operating activities by $6,199,000. The decrease in working capital was primarily related to changes in accounts receivable and inventory, offset by change in accounts payable and accrued liabilities.

Cash used in investing activities for the six months ended June 30, 2021 was $5,387,000, which related to purchases of property, plant and equipment. The Company anticipates spending up to $14,500,000 during the remainder of 2021 on property, plant and equipment purchases for all of the Company's operations, including approximately $3,400,000 to expand the Company’s DLFT capacity in Matamoros, Mexico. At June 30, 2021, purchase commitments for capital expenditures in progress were $4,705,000. The Company anticipates using cash from operations, its available revolving line of credit or equipment financing to fund capital investments.

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Cash used for financing activities for the six months ended June 30, 2021 totaled $1,644,000, which primarily consisted of net revolving loan payments of $220,000 and scheduled repayments of principal on outstanding term loans of $1,375,000.

At June 30, 2021, the Company had $5,596,000 cash on hand, and an available balance on the revolving line of credit of $23,731,000.

The Company is required to meet certain financial covenants included in the Credit Agreement with respect to fixed coverage charge ratio. As of June 30, 2021, the Company was in compliance with its financial covenants associated with the loans made under the Credit Agreement as described above.

Management regularly evaluates the Company’s ability to effectively meet its debt covenants. Based on the Company’s forecasts, which are based on industry analysts’ estimates of heavy and medium-duty truck production volumes, customers' forecasts, as well as other assumptions, management believes that the Company will be able to maintain compliance with its financial covenants for the next 12 months. Management believes that existing cash, cash flow from operating activities and available borrowings under the Credit Agreement will be sufficient to meet the Company’s liquidity needs for the next 12 months. If a material adverse change in the financial position of the Company should occur, or if actual sales or expenses are substantially different than what has been forecasted, the Company’s liquidity and ability to obtain further financing to fund future operating and capital requirements could be negatively impacted.

Term Loans

Wells Fargo Term Loans

On October 27, 2020, the Company entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, lead arranger and book runner, and the lenders party thereto (the “Lenders”). Pursuant to the terms of the Credit Agreement, the Lenders made available to the Company secured term loans (the “WF Term Loans”) in the maximum aggregate principal amount of $18,500,000 ($16,790,000 of which was advanced to the Company on October 28, 2020). The proceeds from the WF Term Loans were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the financing.

At the option of the Company, the WF Term Loans bears interest at a per annum rate equal to LIBOR plus a margin of 300 basis points or base rate plus a margin of 200 basis points. LIBOR rate means the greater of (a) 0.75% per annum and (b) the per annum published LIBOR rate for interest periods of one, three or six months as chosen by the Company. Base rate is the greater of (a) 1.0% per annum, (b) the Federal Funds Rate plus 0.5%, (c) LIBOR Rate plus 100 basis or (d) prime rate. The weighted average interest rate was 3.77% as of June 30, 2021.

The WF Term Loans are to be repaid in monthly installments of $200,000 plus interest, with the remaining outstanding balance due on November 30, 2024, subject to certain optional and mandatory repayment terms. The Company’s obligations under the WF Term Loans are unconditionally guaranteed by each of the Company’s U.S. and Canadian subsidiaries, with such obligations of the Company and such subsidiaries being secured by a lien on substantially all of their U.S. and Canadian assets.

The WF Term Loans contains reporting, indebtedness, and financial covenants. The Company is in compliance with its covenants as of June 30, 2021.

Voluntary prepayments of amounts outstanding under the WF Term Loans are permitted at any time without premium or penalty. To the extent applicable, LIBOR breakage fees may be charged in connection with any prepayment.

FGI Equipment Finance LLC Term Loan

On October 20, 2020, the Company entered into a Master Security Agreement and a Promissory Note, among FGI Equipment Finance LLC, (“FGI”) the Company as debtor, and each of Core Composites Corporation, a subsidiary of the Company organized in Delaware, and CC HPM, S. de R.L. de C.V., a subsidiary of the Company organized in Mexico, as guarantors, the principal amount of $13,200,000 (the “FGI Term Loan”). On October 27, 2020, FGI advanced to the Company $12,000,000 which proceeds were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the transactions, and $1,200,000 which proceeds were used to fund a security deposit to be held by FGI. Interest on the FGI Term Loan is a fixed rate of 8.25% and is payable monthly. The security deposit of $1,200,000 is located in other assets on the Consolidated Balance Sheets.

Following the advance of funds by FGI, the FGI Term Loan is to be repaid in monthly principal and interest installments of $117,000 for the first 12 months, $246,000 for the subsequent 59 months and $1,446,000 due on October 31, 2026, subject to certain optional and mandatory repayment terms. The Company’s obligations under the Master Security Agreement are secured

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by certain machinery and equipment of the guarantors located in Mexico, and real property of Core Composites de Mexico, S. de R.L. de C.V.,a subsidiary of the Company organized in Mexico, located in Matamoros, Mexico.

The Company may prepay in full or in part (but not less than the amount equal to 20% of the original principal amount of the loan) outstanding amounts before they are due on any scheduled Payment Date upon at least thirty (30) days’ prior written notice. The Company will pay a “Prepayment Fee” in an amount equal to an additional sum equal to the following percentage of the principal amount to be prepaid for prepayments occurring in the indicated period: four percent (4.0%) (for prepayments occurring prior to the first anniversary of the FGI Term Loan); three percent (3.0%) (for prepayments occurring on the first anniversary of the FGI Term Loan until the second anniversary of the FGI Term Loan); two percent (2.0%) (for prepayments occurring on and after the second anniversary of the FGI Term Loan and prior to the third anniversary of the Loan ); and one percent (1.0%) (for prepayments occurring any time thereafter).

Leaf Capital Funding

On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment. The parties agreed to a fixed interest rate of 5.5% and a term of 60 months.

Revolving Loans

Wells Fargo Revolving Loan

On October 27, 2020, the Company entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, lead arranger and book runner, and the lenders party thereto (the “Lenders”). Pursuant to the terms of the Credit Agreement, the Lenders made available to the Company a revolving loan commitment (the “WF Revolving Loan”) of $25,000,000 ($8,745,000 of which was advanced to the Company on October 28, 2020). The proceeds from the WF Revolving Loan were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the financing.

The Credit Agreement also makes available to the Company an incremental revolving commitment in the maximum amount of $10,000,000 at the Company’s option at any time during the three-year period following the closing.

The borrowing availability under the WF Revolving Loan is the lesser of (a) the loan commitment of $25,000,000 or (b) the sum of 90% of eligible investment grade accounts receivable, 85% of non-investment grade eligible accounts receivable and 65% of eligible inventory.

At the option of the Company, the WF Revolving Loan bears interest at a per annum rate equal to LIBOR plus a margin of 200 to 250 basis points or base rate plus a margin of 100 to 150 basis points, with the margin rate being based on the excess availability amount under the line of credit. LIBOR rate means the greater of (a) 0.75% per annum and (b) the per annum published LIBOR rate for interest periods of one, three or six months as chosen by the Company. Base rate is the greater of (a) 1.0% per annum, (b) the Federal Funds Rate plus 0.5%, (c) LIBOR Rate plus 100 basis and (d) prime rate. The weighted average interest rate was 4.25% as of June 30, 2021.

The WF Revolving Loan commitment terminates, and all outstanding borrowings thereunder must be repaid, by November 30, 2024. The Company has $23,731,000 of available rate revolving loans of which $200,000 is outstanding as of June 30, 2021.

The WF Revolving Loan contains the same covenants as the WF Term Loans.

Wells Fargo Bank will issue up to $2,000,000 of Letters of Credit in accordance with the terms of the Credit Agreement upon the Company’s request. As of June 30, 2021, the Company had one Letter of Credit outstanding for $160,000.

KeyBank Loan

On June 30, 2020, the Company had a term loan and revolving loan balance of $36,000,000 and $167,000 with KeyBank National Association, respectively. The Company’s term loan and revolving loan had variable interest rate of 8.00%, respectively at June 30, 2020.

Off-Balance Sheet Arrangements

The Company did not have any significant off-balance sheet arrangements as of June 30, 2021 or December 31, 2020.

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The Company did not have or experience any material changes outside the ordinary course of business as to contractual obligations, including long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations or other long- term liabilities reflected on the Company’s balance sheet under GAAP, as of June 30, 2021 or December 31, 2020.

Critical Accounting Policies and Estimates

For information on critical accounting policies and estimates, see Note 2, "Critical Accounting Policies and Estimates," to the consolidated financial statements included herein.

Recent Accounting Pronouncements

For information on the impact of recently issued accounting pronouncements, see Note 3, "Recent Accounting Pronouncements," to the consolidated financial statements included here

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Part I — Financial Information

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

Core Molding Technologies’ primary market risk results from changes in the price of commodities used in its manufacturing operations. Core Molding Technologies is also exposed to fluctuations in interest rates and foreign currency fluctuations associated with the Mexican peso and Canadian Dollar. Core Molding Technologies does not hold any material market risk sensitive instruments for trading purposes. The Company may use derivative financial instruments to hedge exposure to fluctuations in foreign exchange rates and interest rates.

Core Molding Technologies has the following three items that are sensitive to market risks: (1) Revolving Loans and Term Loans under the Credit Agreement, some of which bear a variable interest rate; (2) foreign currency purchases in which the Company purchases Mexican pesos and Canadian dollars with United States dollars to meet certain obligations; and (3) raw material purchases in which Core Molding Technologies purchases various resins, fiberglass, and metal components for use in production. The prices and availability of these materials are affected by the prices of crude oil, natural gas and other feedstocks, tariffs, as well as processing capacity versus demand.

Assuming a hypothetical 10% change in short-term interest rates, interest paid on the Term Loan would have been impacted, as the interest rate on these loans is based upon LIBOR. It would not, however, have a material effect on earnings before tax.

Assuming a hypothetical 10% decrease in the United States dollar to Mexican peso and Canadian dollar exchange rate, the Company would be impacted by an increase in operating costs, which would have an adverse effect on operating margins.

Assuming a hypothetical 10% increase in commodity prices, Core Molding Technologies would be impacted by an increase in raw material costs, which would have an adverse effect on operating margins.

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Part I — Financial Information

Item 4.    Controls and Procedures

As of the end of the period covered by this report, the Company has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and its Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based upon this evaluation, the Company’s management, including its Chief Executive Officer and its Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were (i) effective to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act was accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure, and (ii) effective to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There were no changes in internal controls over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) that occurred in the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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Part II — Other Information

Legal Proceedings

From time to time, the Company is involved in litigation incidental to the conduct of its business. The Company is presently not involved in any legal proceedings which in the opinion of management are likely to have a material adverse effect on the Company's consolidated financial position or results of operations.

Risk Factors

There have been no material changes in Core Molding Technologies' risk factors from those previously disclosed in Core Molding Technologies' Annual Report on Form 10-K for the year ended December 31, 2020.

Unregistered Sales of Equity Securities and Use of Proceeds

Period	Total Number of Shares Purchased	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number that May Yet be Purchased Under the Plans or Programs
April 1 to 30, 2021	—	—	—	—
May 1 to 31, 2021	—	—	—	—
June 1 to 30, 2021	—	—	—	—

Defaults Upon Senior Securities

None.

Mine Safety Disclosures

None.

Item 5.    Other Information

Amended and Restated Executive Employment Agreements

On August 5, 2021, the Company entered into amended and restated executive employment agreements (each an “Executive Employment Agreement,” and, collectively, the “Executive Employment Agreements”) with each of David L. Duvall, President & Chief Executive Officer, John Zimmer, Executive Vice President, Treasurer, Secretary and Chief Financial Officer, Eric Palomaki, Executive Vice President, Operations, Research and Development and Renee R. Anderson, Executive Vice President, Human Resources (each an "Executive," and, collectively, the "Executives," with each Executive other than Mr. Duvall referred to herein as the “Non-CEO Executives”). The terms of each Executive Employment Agreement amend and restated the terms of the prior employment agreements entered into by each of the Executives and, in the case of Messrs. Zimmer and Palomaki, also amend and supersede the terms of the executive severance agreements previously entered into by each of Messrs. Zimmer and Palomaki.

CEO Executive Employment Agreement

Pursuant to the terms of the Executive Employment Agreement with Mr. Duvall, Mr. Duvall is entitled to an annual base salary of $605,000. In addition to base salary Mr. Duvall shall be eligible for an annual short term incentive payment pursuant to the Company’s annual short term incentive plan and long term incentive target awards under the Company’s equity incentive plan, with awards based upon 75%-125% of base salary, vesting in one-third installments on the anniversary of each applicable grant date.

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Mr. Duvall is also eligible to participate in compensation plans and programs that are available to or for members of the Company’s management. Mr. Duvall is also entitled under the Executive Employment Agreement to certain standard benefits, including vacation, sick leave, and life and long and short term disability insurance. The Executive Employment Agreement continues until terminated by Mr. Duvall or the Company.

The Executive Employment Agreement may be terminated with or without “Cause” (as defined in the Executive Employment Agreement). In the event the Executive Employment Agreement is terminated by the Company without Cause or by Mr. Duvall for Good Reason (as such terms are defined in the Executive Employment Agreement), Mr. Duvall will be entitled to receive, as severance, (i) accrued but unpaid base salary through the date of termination, (ii) accrued and unused vacation pay, (iii) any earned but unpaid amounts arising under Mr. Duvall’s participation in the Company’s compensation plans and programs prior to the termination (items (i), (ii) and (iii), collectively, the “Accrued Obligations”), (iv) two (2) times then-current base salary for twelve (12) months and (v) acceleration of any unvested awards under the Company’s short term incentive plan and cash severance equal to the market value of all unvested equity awards received. In the event the Executive Employment Agreement is terminated by the Company with Cause, or upon death or due to Executive Disability, or by Mr. Duvall without Good Reason, Mr. Duvall will be entitled to receive only the Accrued Obligations. In addition, if Mr. Duvall is terminated by the Company without Cause or by Mr. Duvall for Good Reason at any time within 24 months of a Change of Control (as defined in the Executive Employment Agreement), Mr. Duvall will be entitled to Accrued Obligations, cash severance equal to the market value of all unvested equity awards received, , as well as a lump sum payment of 2.99 times a five year average of base salary and bonus. The Employment Agreement also includes non-competition and non-solicitation provisions, as well as certain confidentiality covenants.

The description of the Executive Employment Agreement as entered into by Mr. Duvall is qualified in its entirety by reference to the complete text of the form of Executive Employment Agreement, which has been filed with this Quarterly Report on Form 10-Q as Exhibit 10.1 and is incorporated herein by reference.

Non-CEO Executive Employment Agreements

Pursuant to the terms of the Executive Employment Agreements entered into with the Non-CEO Executives, each of Mr. Zimmer, Mr. Palomaki and Ms. Anderson entitled to base salaries of $385,000, $340,000 and $310,000, respectively. In addition to base salary, each Non-CEO Executive shall be eligible for an annual short term incentive payment pursuant to the Company’s annual short term incentive plan and long term incentive target awards under the Company’s equity incentive plan, vesting in one-third installments on the anniversary of each applicable grant date.

Each Non-CEO Executive is also eligible to participate in compensation plans and programs that are available to or for members of the Company’s management. Each Non-CEO Executive is also entitled under the Executive Employment Agreement to certain standard benefits, including vacation, sick leave, and life and long and short term disability insurance. Each Executive Employment Agreement continues until terminated by the respective Non-CEO Executive or the Company.

Each Executive Employment Agreement may be terminated with or without “Cause” (as defined in the applicable Executive Employment Agreement). In the event the applicable Executive Employment Agreement is terminated by the Company without Cause or by a Non-CEO Executive for Good Reason (as such terms are defined in the Executive Employment Agreement), the Non-CEO Executive will be entitled to receive, as severance, (i) accrued but unpaid base salary through the date of termination, (ii) accrued and unused vacation pay, (iii) any earned but unpaid amounts arising under the Non-CEO Executive’s participation in the Company’s compensation plans and programs prior to the termination (items (i), (ii) and (iii), collectively, the “Accrued Obligations”), (iv) continuation of then-current base salary for twelve (12) months and (v) acceleration of any unvested awards under the Company’s short term incentive plan and cash severance equal to the market value of all unvested equity awards received. In the event the Executive Employment Agreement is terminated by the Company with Cause, or upon death or due to Executive Disability, or by the Non-CEO Executive without Good Reason, the Non-CEO Executive will be entitled to receive only the Accrued Obligations. In addition, if the applicable Executive Employment Agreement is terminated by the Company without Cause or by a Non-CEO Executive for Good Reason at any time within 24 months of a Change of Control (as defined in the Executive Employment Agreement), each Non-CEO Executive will be entitled to Accrued Obligations, cash severance equal to the market value of all unvested equity awards received, as well as a lump sum payment of 2.99 times a five year average of base salary and bonus. The Employment Agreement also includes non-competition and non-solicitation provisions, as well as certain confidentiality covenants.

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The description of the Executive Employment Agreement as entered into by each Non-CEO Executive is qualified in its entirety by reference to the complete text of the form of Executive Employment Agreement, which has been filed with this Quarterly Report on Form 10-Q as Exhibit 10.2 and is incorporated herein by reference.

Amended and Restated Cash Incentive Plan

On August 5, 2021, the Compensation Committee of the Board (the “Compensation Committee”) and the Board of the Company amended and restated the Company’s 2016 Executive Cash Incentive Plan, renaming it the Cash Incentive Plan of Core Molding Technologies, Inc. (as amended and restated, the “Plan”). The Plan is intended to advance the interests of the Company and its stockholders by providing incentives in the form of cash awards to certain officers and other employees of the Company.

The Plan is administered by the Company’s Compensation Committee, or such other committee as may be designated by the Board. The Plan authorizes the Compensation Committee to select the employees to be granted awards under the Plan, which may be any employee of the Company, including the Company’s executive officers. The number of eligible participants in the Plan will vary from year to year at the discretion of the Compensation Committee. Each year the Compensation Committee will establish award opportunities and performance targets for participants in the Plan. The performance goals and payout formulas need not be the same for each participant. The Compensation Committee will also designate one or more performance periods, which may be based on a fiscal year or any other period designated by the committee.

The performance goals are based solely on one or more of the following criteria: earnings before interest, taxes, depreciation and/or amortization; operating income or profit; operating efficiencies; return on equity, assets, adjusted net assets, capital, capital employed, or investment; after tax operating income; net income; earnings or book value per share; cash flow(s); total sales or revenues or sales or revenues per employee; stock price or total stockholder return; cost of capital or assets under management; and strategic business objectives, consisting of one or more objectives based on meeting specified cost targets, business expansion goals, and goals relating to acquisitions or divestitures.

The award payable as determined by the Compensation Committee must be paid after the end of the performance period, but in all events by March 15 of the calendar year following the performance period. Except as the Compensation Committee may otherwise determine in its discretion, termination of a participant’s employment prior to the end of the performance period will result in the forfeiture of the award by the participant.

The Compensation Committee may from time to time alter, amend, suspend, or discontinue the Plan, including, where applicable, any modifications or amendments as it shall deem advisable, or to conform to any regulation or to any change in law or regulation applicable thereto, provided however, that no such action shall adversely affect the rights and obligations of the participants with respect to the bonus amount payable under the Plan at the time of such alteration, amendment, suspension, or discontinuance, except as may be required in order to comply with the requirements of Internal Revenue Code Section 409A.

The description of the Plan is qualified in its entirety by reference to the complete text of the Plan, which has been filed with this Quarterly Report on Form 10-Q as Exhibit 10.3 and is incorporated herein by reference

Item 6.    Exhibits

See Index to Exhibits.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		CORE MOLDING TECHNOLOGIES, INC.
Date:	August 6, 2021	By:	/s/ David L. Duvall
			David L. Duvall
			President, Chief Executive Officer, and Director
Date:	August 6, 2021	By:	/s/ John P. Zimmer
			John P. Zimmer
			Executive Vice President, Secretary, Treasurer and Chief Financial Officer

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INDEX TO EXHIBIT

Exhibit No.	Description	Location
2(a)(1)	Asset Purchase Agreement dated as of September 12, 1996, as amended October 31, 1996, between Navistar and RYMAC Mortgage Investment Corporation1	Incorporated by reference to Exhibit 2-A to Registration Statement on Form S-4 (Registration No. 333-15809)
2(a)(2)	Second Amendment to Asset Purchase Agreement dated December 16, 19961	Incorporated by reference to Exhibit 2(a)(2) to Annual Report on Form 10-K for the year-ended December 31, 2001
2(b)(1)	Agreement and Plan of Merger dated as of November 1, 1996, between Core Molding Technologies, Inc. and RYMAC Mortgage Investment Corporation	Incorporated by reference to Exhibit 2-B to Registration Statement on Form S-4 (Registration No. 333-15809)
2(b)(2)	First Amendment to Agreement and Plan of Merger dated as of December 27, 1996 between Core Molding Technologies, Inc. and RYMAC Mortgage Investment Corporation	Incorporated by reference to Exhibit 2(b)(2) to Annual Report on Form 10-K for the year ended December 31, 2002
2(c)	Asset Purchase Agreement dated as of October 10, 2001, between Core Molding Technologies, Inc. and Airshield Corporation	Incorporated by reference to Exhibit 1 to Current Report on Form 8-K filed October 31, 2001
2(d)	Asset Purchase Agreement dated as of March 20, 2015, between Core Molding Technologies, Inc and CPI Binani, Inc.	Incorporated by reference to Exhibit 2.1 to Current Report on Form 8-K filed March 23, 2015
2(e)	Asset Purchase Agreement dated as of January 16, 2018 between 1137952 B.C. Ltd., Horizon Plastics International, Inc., 1541689 Ontario Inc., 2551024 Ontario Inc., Horizon Plastics de Mexico, S.A. de C.V., and Brian Read	Incorporate by reference to Exhibit 2.1 to Current Report on Form 8-K filed January 19, 2018
3(a)(1)	Certificate of Incorporation of Core Molding Technologies, Inc. as filed with the Secretary of State of Delaware on October 8, 1996	Incorporated by reference to Exhibit 4(a) to Registration Statement on Form S-8 (Registration No. 333-29203)
3(a)(2)	Certificate of Amendment of Certificate of Incorporation of Core Molding Technologies, Inc. as filed with the Secretary of State of Delaware on November 6, 1996	Incorporated by reference to Exhibit 4(b) to Registration Statement on Form S-8 (Registration No. 333-29203)
3(a)(3)	Certificate of Amendment of Certificate of Incorporation as filed with the Secretary of State of Delaware on August 28, 2002	Incorporated by reference to Exhibit 3(a)(4) to Quarterly Report on Form 10-Q for the quarter ended September 30, 2002
3(a)(4)	Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock as filed with the Secretary of State of Delaware on July 18, 2007	Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed July 19, 2007
3(a)(5)	Certificate of Elimination of Series A Junior Participating Preferred Stock, as filed with the Secretary of State of the State of Delaware on April 2, 2015.	Incorporated by reference to Exhibit 3(a)(5) to Current Report on Form 8-K filed April 2, 2015
3(a)(6)	Certificate of Designation, Preferences and Rights of Series B Junior Participating Preferred Stock, as filed with the Secretary of State of the State of Delaware on April 21, 2020	Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed April 22, 2020

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Exhibit No.	Description	Location
3(a)(7)	Certificate of Elimination of Series B Junior Participating Preferred Stock, as filed with the Secretary of State of the State of Delaware on April 1, 2021.	Incorporated by reference to Exhibit 3(a)(5) to Current Report on Form 8-K filed April 6, 2021
3(a)(8)	Rights Agreement, dated as of April 21, 2020, by and between Core Molding Technologies, Inc. and American Stock Transfer & Trust Company, as Rights Agent	Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed April 22, 2020
3(a)(9)	Amendment No. 1 to Stockholder Rights Agreement, dated as of March 30, 2021, between Core Molding Technologies, Inc. and American Stock Transfer & Trust Company	Incorporated by reference to Exhibit 4(b)(1) to Current Report on Form 8-K filed April 6, 2021
3(b)	Amended and Restated By-Laws of Core Molding Technologies, Inc.	Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed January 4, 2008
3(b)(1)	Amendment No. 1 to the Amended and Restated By-Laws of Core Molding Technologies, Inc.	Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed December 17, 2013
4(a)(1)	Certificate of Incorporation of Core Molding Technologies, Inc. as filed with the Secretary of State of Delaware on October 8, 1996	Incorporated by reference to Exhibit 4(a) to Registration Statement on Form S-8 (Registration No. 333-29203)
4(a)(2)	Certificate of Amendment of Certificate of Incorporation of Core Molding Technologies, Inc. as filed with the Secretary of State of Delaware on November 6, 1996	Incorporated by reference to Exhibit 4(b) to Registration Statement on Form S-8 (Registration No. 333-29203)
4(a)(3)	Certificate of Amendment of Certificate of Incorporation as filed with the Secretary of State of Delaware on August 28, 2002	Incorporated by reference to Exhibit 3(a)(4) to Quarterly Report on Form 10-Q for the quarter ended September 30, 2002
4(a)(4)	Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock as filed with the Secretary of State of Delaware on July 18, 2007	Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed July 19, 2007
4(a)(5)	Certificate of Elimination of Series A Junior Participating Preferred Stock, as filed with the Secretary of State of the State of Delaware on April 2, 2015	Incorporated by reference to Exhibit 3(a)(5) to Current Report on Form 8-K filed April 2, 2015
4 (a)(6)	Certificate of Designation, Preferences and Rights of Series B Junior Participating Preferred Stock, as filed with the Secretary of State of the State of Delaware on April 21, 2020	Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed April 22, 2020
4(a)(7)	Certificate of Elimination of Series B Junior Participating Preferred Stock, as filed with the Secretary of State of the State of Delaware on April 1, 2021.	Incorporated by reference to Exhibit 3(a)(5) to Current Report on Form 8-K filed April 6, 2021
4(a)(8)	Rights Agreement, dated as of April 21, 2020, by and between Core Molding Technologies, Inc. and American Stock Transfer & Trust Company, as Rights Agent	Incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed April 22, 2020
4(a)(9)	Amendment No. 1 to Stockholder Rights Agreement, dated as of March 30, 2021, between Core Molding Technologies, Inc. and American Stock Transfer & Trust Company	Incorporated by reference to Exhibit 4(b)(1) to Current Report on Form 8-K filed April 6, 2021

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Exhibit No.	Description	Location
10 (m)	Form of Restricted Stock Agreement between Core Molding Technologies, Inc. and certain executive officers, dated August 6, 2021	Filed Herein
10 (n)	Form of Executive Employment Agreement between David L. Duvall and Core Molding Technologies, Inc, dated August 6, 2021	Filed Herein
10 (q)	Form of Executive Employment Agreement between Core Molding Technologies, Inc. and certain executive officers, dated August 6, 2021	Filed Herein
11	Computation of Net Income per Share	Exhibit 11 omitted because the required information is Included in Notes to Financial Statement
31(a)	Section 302 Certification by David L. Duvall, President, Chief Executive Officer, and Director	Filed Herein
31(b)	Section 302 Certification by John P. Zimmer, Vice President, Secretary, Treasurer, and Chief Financial Officer	Filed Herein
32(a)	Certification of David L. Duvall, Chief Executive Officer of Core Molding Technologies, Inc., dated August 6, 2021, pursuant to 18 U.S.C. Section 1350	Filed Herein
32(b)	Certification of John P. Zimmer, Chief Financial Officer of Core Molding Technologies, Inc., dated August 6, 2021, pursuant to 18 U.S.C. Section 1350	Filed Herein
101.INS	XBRL Instance Document	Filed Herein
101.SCH	XBRL Taxonomy Extension Schema Document	Filed Herein
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	Filed Herein
101.LAB	XBRL Taxonomy Extension Label Linkbase	Filed Herein
101.PRE	XBRL Taxonomy Extension Presentation Linkbase	Filed Herein
101.DEF	XBRL Taxonomy Extension Definition Linkbase	Filed Herein

The Asset Purchase Agreement, as filed with the Securities and Exchange Commission as Exhibit 2-A to Registration Statement on Form S-4 (Registration No. 333-15809), omits the exhibits (including the Buyer Note, Special Warranty Deed, Supply Agreement, Registration Rights Agreement and Transition Services Agreement identified in the Asset Purchase Agreement) and schedules (including those identified in Sections 1, 3, 4, 5, 6, 8 and 30 of the Asset Purchase Agreement). Core Molding Technologies, Inc. will provide any omitted exhibit or schedule to the Securities and Exchange Commission upon request.

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EX-10.M

CASH INCENTIVE PLAN OF CORE MOLDING TECHNOLOGIES, INC.

(As Amended and Restated Effective August 6, 2021)

1.Purpose of the Plan.

The purpose of this Cash Incentive Plan of Core Molding Technologies, Inc., formerly named the 2016 Executive Cash Incentive Plan of Core Molding Technologies, Inc., as amended and restated effective August 6, 2021, (the “Plan”) is to advance the interests of Core Molding Technologies, Inc. (the “Company”) and its stockholders by providing incentives in the form of cash bonus awards to certain officers and other employees of the Company. The Plan is intended to enable the Company to attract and retain talented officers and other employees and to motivate such officers and other employees to manage and grow the Company’s business and to attain the performance goals articulated under the Plan.

1.Certain Definitions.

a.“Award” means a cash award granted pursuant to the Plan.

b.“Board” means the Board of Directors of the Company.

c.“Code” means the Internal Revenue Code of 1986, as amended, or any successor thereto.

d.“Committee” means the Compensation Committee of the Board (or a subcommittee thereof established to administer the Plan), or any successor thereto or any other committee designated by the Board to assume the obligations of the Committee hereunder.

e. “Effective Date” means August 6,2021, the date on which the amended and restated Plan was approved by the Board.

(f) “Participant” means an employee of the Company who is selected by the Committee to participate in the Plan pursuant to Section 4 of the Plan.

(g) “Performance Period” means the Company’s fiscal year (or multiples thereof) or any portion thereof designated by the Committee as a Performance Period.

(h) “Plan” means this Cash Incentive Plan of Core Molding Technologies, Inc., as amended and restated as of the Effective Date.

1.Administration.

The Plan shall be administered by the Committee. The Committee shall have the authority to select the employees to be granted Awards under the Plan, to determine the size and terms of an Award (subject to the limitations imposed on Awards in Section 5 below), to modify the terms of any Award that has been granted, to determine the time when Awards will be made, the amount of any payments pursuant to such Awards and the Performance Period to which they relate, to determine any employment restrictions on actual receipt of payments pursuant to Awards, to establish performance objectives in respect of such Performance Periods and to determine whether such performance objectives were attained. The Committee is authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan. The Committee may correct any defect or omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee deems necessary or desirable. Any decision of the Committee in the interpretation and administration of the Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned. Determinations made by the Committee under the Plan need not be uniform and may be made selectively among Participants, whether or not such Participants are similarly situated.

1.Eligibility and Participation.

The Committee shall determine the employees who shall be Participants for the Performance Period. The designation of Participants shall be made individually or by groups or classifications of employees, as the Committee deems appropriate.

1.Awards.

a.Scope. Each year the Committee will establish Award opportunities and performance targets for Participants for the determination of potential Awards hereunder. Following the close of a Performance Period, the Committee shall evaluate the Company’s actual performance against the performance targets to determine the actual bonus to be paid.

b.Performance Goals. Awards to Participants shall be based solely upon the attainment of performance targets related to one or more performance goals selected by the Committee from among the goals specified below. For purposes of this Section 5, the formula on which performance targets are based with respect to Awards under this Plan shall be determined by the Committee and may be one or more of the following Company, subsidiary, operating unit or division financial performance measures:

a.earnings before interest, taxes, depreciation and/or amortization;

a.operating income or profit;

b.operating efficiencies;

c.return on equity, assets, adjusted net assets, capital, capital employed, or investment;

d.after tax operating income;

e.net income;

f.earnings or book value per share;

g.cash flow(s);

h.total sales or revenues or sales or revenues per employee, including total value of contracts executed in a given time period;

i.stock price or total stockholder return;

j.cost of capital or assets under management;

k.strategic business objectives, consisting of one or more objectives based on meeting specified cost targets, business expansion goals, and goals relating to acquisitions or divestitures;

or any combination thereof. Each goal may be expressed on an absolute and/or relative basis, may be based on or otherwise employ comparisons based on internal targets, the past performance of the Company or any subsidiary, operating unit or division of the Company and/or the past or current performance of other companies, and in the case of earnings-based measures, may use or employ comparisons relating to capital, stockholders’ equity and/or shares of common stock outstanding, or to assets or net assets. The Committee may appropriately adjust any evaluation of performance under criteria set forth in this Section 5(b) to exclude any of the following events that occurs during a Performance Period: (i) asset impairments or write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals for reorganization and restructuring programs, (v) acquisitions or divestitures, (vi) any extraordinary non-recurring items as described in Accounting Standards Codification 225-20 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year, and (vii) the effect of adverse or delayed federal, state or local governmental or regulatory action. Following the completion of each Performance Period, the Committee shall determine whether the applicable performance targets have been achieved and the amounts, if any, payable to Participants for such Performance Period. In determining the amount earned by a Participant for a given Performance Period, the Committee shall have the right to adjust the amount payable at a given level of performance to take into account additional factors that the Committee may deem relevant to the assessment of individual or corporate performance for the Performance Period; and the Committee may exercise the discretion to reduce or increase the amount otherwise payable to such Participant.

a.Payment. The amount of the Award payable as determined by the Committee for the Performance Period shall be paid to the Participant at such time as determined by the

Committee in its sole discretion after the end of the Performance Period, but in all events by March 15th of the calendar year following the end of the Performance Period. Award payments shall be made in cash. Except as the Committee may otherwise determine in its sole and absolute discretion, termination of a Participant’s employment prior to the end of the Performance Period will result in the forfeiture of the Award by the Participant, and no payments shall be made with respect thereto.

1.Amendments or Termination.

The Committee may from time to time alter, amend, suspend, or discontinue the Plan, including, where applicable, any modifications or amendments as it shall deem advisable, or to conform to any regulation or to any change in law or regulation applicable thereto; provided, however, that no such action shall adversely affect the rights and obligations of the Participants with respect to the bonus amount payable under the Plan at the time of such alteration, amendment, suspension, or discontinuance, except as may be required in order to comply with the requirements ofCode Section 409A.

1.No Right to Employment or Awards.

Neither the Plan nor any action taken hereunder shall be construed as giving any Participant or other person any right to continue to be employed by or perform services for the Company or any subsidiary, and the right to terminate the employment of or performance of services by any Participant at any time and for any reason is specifically reserved to the Company. No person shall have any claim to be granted any Award and there is no obligation for uniformity of treatment among Participants. The terms and conditions of Awards, if any, need not be the same with respect to each Participant.

1.Adjustments Upon Certain Events.

In the event of any material change in the business assets, liabilities or prospects of the Company, any division or any subsidiary, the Committee in its sole discretion and without liability to any person may make such adjustment, if any, as it deems to be equitable as to any affected terms of outstanding Awards.

1.Miscellaneous Provisions.

The Company is the sponsor and legal obligor under the Plan and shall make all payments hereunder, other than any payments to be made by any of its subsidiaries (in which case payment shall be made by such subsidiary, as appropriate). The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to ensure the payment of any amounts under the Plan, and the Participants’ rights to the payment hereunder shall be no greater than the rights of the Company’s (or subsidiary’s) unsecured creditors. All expenses involved in administering the Plan shall be borne by the Company.

1.Choice of Law.

The Plan shall be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in the State of Delaware.

1.Withholding of Taxes.

Any payment made under the Plan shall be subject to any federal, state, local or foreign income or other taxes or obligations required by law to be withheld with respect to such payment.

1.Payments Subject to Clawback Policy.

Any payments made hereunder shall be subject to any clawback policy adopted by the Board or a committee of the Board, as such policy may be amended from time to time.

1.Beneficiaries; Prohibition on Assignments.

Each Participant may designate a beneficiary or beneficiaries to receive, in the event of such Participant’s death, any Award amounts due to the Participant under the Plan. Each

Participant shall have the right to revoke any such designation and to redesignate a beneficiary or beneficiaries by written notice to the Company to such effect. If any Participant dies without naming a beneficiary or if all of the beneficiaries named by a Participant predecease the Participant, then any Award amounts due to the Participant shall be paid to the Participant’s estate. Prior to a Participant’s death, except as otherwise required by applicable law, any interest, benefit, payment, claim or right of such Participant under the Plan may not be sold, transferred, assigned, pledged, encumbered or hypothecated by the Participant and shall not be subject in any manner to any claims of any creditor of the Participant or beneficiary, and any attempt to take any such action shall be null and void. During the lifetime of a Participant, payment of an Award shall only be made to the Participant.

1.Effectiveness of the Plan.

The Plan, as amended and restated, is effective on the Effective Date; and shall remain in effect until it is terminated by the Committee or the Board.

EX-10.N

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is made effective as of ____________, 2021 (the "Effective Date"), by and between CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation (the "Company"), and David L. Duvall ("Executive").

Background

WHEREAS, Executive and the Company are parties to (a) an Executive Employment Agreement dated effective as of October 3, 2018, as amended on December 30, 2019 (the "Original Agreement") pursuant to which the Company began Executive's employment in the position of Chief Executive Officer ("CEO") according to the terms and conditions stated therein; and

WHEREAS, Executive and the Company wish to enter into this Agreement to amend, restate, supersede and replace the Original Agreement according to the terms and conditions stated herein.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Definitions. Capitalized terms not otherwise defined herein shall have the meanings set forth on Exhibit A attached hereto.

2. Employment. For the purposes of this Agreement, the term "Employment Period" shall mean the period commencing as of the Effective Date and ending in accordance with Section 5 (the "Employment Period"). The Company shall continue to employ Executive, and Executive hereby accepts continued employment with the Company, upon the terms and conditions set forth in this Agreement for the Employment Period.

3. Duties. Executive shall have the normal duties, responsibilities, functions, and authority of the CEO, subject to the power and authority of the Board of Directors of the Company (the "Board"), and Executive shall report to the Board. Executive shall render to the Company administrative, financial, and other executive and managerial services that are consistent with Executive's position as the Board may from time to time direct. Executive shall devote Executive's full business time and attention (except for vacation periods consistent with the terms of this Agreement and reasonable periods of illness or other incapacity) to the business and affairs of the Company, its Affiliates, and its Subsidiaries. In performing Executive's duties and exercising Executive's authority under this Agreement, Executive shall support and implement the business and strategic plans approved from time to time by the Board and shall support and cooperate with the Company's effort to expand the business and operate in conformity with the business and strategic plans. So long as Executive is employed by the Company, Executive shall not, without prior notification and approval of the Board, who may approve under such procedures as the Board shall from time to time approve, serve on the board of directors of any other company for compensation or remuneration, and Executive shall not undertake, engage in or perform other activities or services for Executive's personal benefit or for the benefit of any Person other than the Company and its Subsidiaries and Affiliates if such other activities or services interfere with the performance of Executive's duties under this Agreement. Subject to the foregoing provision, nothing in this Agreement shall be construed as preventing Executive from engaging in volunteer services for charitable, educational or civic organizations, serving on the board of directors of other companies without compensation or remuneration, or investing Executive's personal assets in such a manner as Executive deems to be appropriate;

provided, however, no such other activity shall conflict with Executive's obligations under this Agreement or interfere with Executive's performance of Executive's duties under this Agreement.

4. Compensation and Benefits. In exchange for services rendered by Executive hereunder, the Company shall provide the following:

(a) Base Salary and Benefits.During the Employment Period, Executive's base salary shall be $605,000 per annum, or such higher amount as determined by the Board in its discretion, as adjusted from time to time (the "Base Salary"), which salary shall be payable by the Company in regular installments in accordance with the Company's general payroll practices (in effect from time to time). In addition, during the Employment Period, Executive shall be entitled to participate in all of the Company's retirement, health, and welfare employee benefit programs for which senior management employees of the Company are generally eligible to participate (assuming Executive and/or Executive's dependents meet the eligibility requirements of those benefit programs) as may be changed from time to time by the Company or the relevant insurer or administrator.

(b) Business Expenses. Subject to Section 21(d), during the Employment Period, the Company shall reimburse Executive for all reasonable business expenses incurred by Executive in the course of performing Executive's duties and responsibilities under this Agreement, which business expenses are consistent with the Company's policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company's requirements with respect to reporting and documentation of such expenses.

(c) Incentive Compensation. In addition to the Base Salary, Executive shall be eligible for: (i) an annual short term incentive plan payment (the "STIP") pursuant to the annual Short Term Bonus Plan established by the Board (the "STIP Plan"); and (ii) in the discretion of the Compensation Committee of the Board, annual long-term incentive target awards under the Core Molding Technologies, Inc. 2006 Long-Term Equity Incentive Plan, as amended and restated ("LTIP") with such LTIP awards based upon 75% to 125% of Base Salary andvesting one-third (1/3) on each anniversary of the applicable grant date and subject to such other terms and conditions set forth in the LTIP and applicable award agreement. Except with respect to Executive's eligibility to participate in the STIP and the LTIP as provided in this Section 4(c), Executive's eligibility to participate and Executive's rights, benefits, and obligations under such STIP and LTIP shall be determined in accordance with those plans and by the Compensation Committee of the Board. The Company reserves the right and sole and absolute discretion to alter, amend, or terminate the Bonus Plan, LTIP, and any other incentive plans at any time.

(d) Vacation. During the Employment Period, Executive shall be entitled to 4 weeks of paid vacation per calendar year (as prorated for partial years) in accordance with the Company's policies on accrual and use applicable to employees as in effect from time to time. Vacation hours will accrue at a rate of one week per quarter. Vacation may be taken at such times and intervals as Executive determines, subject to the business needs of the Company, after consultation with the Chairman of the Board.

5. Term; Termination of Employment Period.

(a)Employment Period.The Employment Period shall be perpetual, until terminated as a result of: (i) Executive's resignation, which resignation must be accompanied by at least thirty (30) days' prior written notice (except in the case of resignation by Executive for "Good Reason" as defined below); (ii) termination by the Company due to Executive's Disability (as defined below); (iii) the Company's termination of Executive's employment (whether with Cause (as defined below) or without Cause); or (iv) Executive's death.In the event of the termination of Executive's employment by Executive or by the Company for any reason and regardless of the circumstance, Executive shall be

deemed to have resigned from any and all positions as an officer and/or director of the Company and/or its Subsidiaries and Affiliates immediately upon such termination, and shall promptly execute all documents reasonably requested by the Company in order to affect such resignation.

(b)Termination by Company without Cause or by Executive for Good Reason.Subject to Section 21 and except during a Change of Control Period, if Executive's employment hereunder and the Employment Period are terminated by the Company without Cause or by Executive for Good Reason, Executive shall be entitled to payment of:

(i)Executive's accrued but unpaid Base Salary through the date of termination;

(ii)any accrued, unused vacation pay at the rate of Executive's then Base Salary and any properly documented reimbursable expenses owed to Executive;

(iii)any amount arising from Executive's participation in, or benefits under any employee benefit plans, programs, or arrangements, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs, or arrangements, including without limitation any amount earned under any STIP or LTIP but not paid prior to the termination (clauses (i), (ii) and (iii) of this Section 5(b), collectively, the "Accrued Obligations");

(iv)an amount equal to two (2) times Executive's then-current Base Salary paid in equal installments across twelve (12) consecutive months, with the time of payment of such installments, as applicable, commencing as provided below;

(v)if suchterminationoccurs beforethecompletion ofan applicable measuring period, Executive will receive the full target incentive award amount oftheSTIP Executive would have received had Executive continued tobe employed through theend of such period, payable at thesametime and in the same form of payment that allSTIP awards are payable to STIP participants pursuant to the termsspecified in the Bonus Plan; and

(vi)if Executive has received awards of equity or other compensation under the LTIP that remain subject to vesting, then the Executive will receive a cash severance equal to the market value of all unvested shares determined using the closing price of Company's common stock as of the date of Executive's termination (or, if such date is a date on which the Company's common stock is not trading, then the closing price as of the previous trading day).

The amounts described in Section 5(b)(iv) will commence to be paid to Executive within sixty (60) days following the date of termination, provided that Executive (or, in the event of Executive's death, Executive's estate) has executed and delivered to the Company not later than forty-five (45) days following the date of termination an irrevocable general waiver and release of claims in the form provided by the Company to Executive (or, in the event of Executive's death, Executive's estate) after Executive's termination (the "General Release") and the latest date on which the General Release is subject to revocation has expired.The Accrued Obligations shall be paid no later than as required by law or within thirty (30) days following the date of termination, whichever occurs earlier.As to any amount described in Section 5(b)(iv) that constitutes "nonqualified deferred compensation" within the meaning of Code Section 409A and the regulations and guidance promulgated thereunder (collectively, "Section 409A"), if the sixty (60) day period begins in one calendar year and ends in a second (2nd) calendar year, payment shall always be paid in the second (2nd) calendar year.Once they begin within such sixty (60) day period following termination, the amounts payable pursuant to Section 5(b)(iv) shall be payable in substantially equal consecutive installments over the twelve (12) month period following the date of termination (the "Severance Period") in accordance with the Company's general payroll practices as in effect on the date of termination, but in no event less frequently than monthly (with the first such payment being in an amount equal to the total amount to which Executive would otherwise have been entitled during the period following the date of termination through such payment commencement date).The amount(s) payable pursuant to Section 5(b)(v) and Section 5(b)(vi) shall be paid provided the General Release has become effective under its terms on the date of such payment(s).All payments of amounts described in

Section 5(b)(iv), Section 5(b)(v) and Section 5(b)(vi) are subject to Executive's (or in the event of Executive's death, Executive's estate's) continued compliance with the provisions of Sections 6, 7, 8, 23 and 25 hereof.

(c)Certain Terminations During Change of Control Period.Subject to Section 21, if at any time within twenty-four (24) months of a Change of Control (the "Change of Control Period"), Executive's employment hereunder and the Employment Period are terminated by the Company without Cause or by Executive for Good Reason, Executive shall be entitled to payment of:

(i)Accrued Obligations due to Executive;

(ii)if Executive has received awards of equity or other compensation under the LTIP that remain subject to vesting, then the Executive will receive a cash severance equal to the market value of all unvested shares determined using the closing price of Company's common stock as of the date of Executive's termination (or, if such date is a date on which the Company's common stock is not trading, then the closing price as of the previous trading day); and

(iii)In lieu of any further salary payments for periods subsequent to the date of termination, an amount equal to 2.99 times the sum of (A) the average of the Executive's Base Salary as reported on the Executive's W-2 form for the five (5) calendar years prior to the calendar year in which such termination occurs, or, in the event the Executive has been employed by the Company for less than five (5) calendar years, an average based upon such lesser number of calendar years for which the executive has actually been employed, and (B) the average of the STIP earned by the Executive as reported on the Executive's W-2 form for the five (5) calendar years prior to the year in which such termination occurs, provided that the sum of clauses (A) and (B) of this Section 5(c)(iii) (plus any parachute payments (as defined in Section 280G of the Code) otherwise provided for the benefit of Executive pursuant to this or any other agreement, plan, or arrangement) shall not exceed 2.99 times the "Base Amount" as defined in Section 280G(b)(3) of the Code.

The amounts described in Section 5(c)(iii) will be paid to Executive in lump sum within thirty (30) days following the date of termination, provided that (A) Executive has executed and delivered to the Company not later than ten (10) days following the date of termination a General Release and (B) the latest date on which the General Release is subject to revocation has expired.The Accrued Obligations shall be paid no later than as required by law or within thirty (30) days following the date of termination, whichever occurs earlier.As to any amount described in Section 5(c)(iii) that constitutes "nonqualified deferred compensation" within the meaning of Section 409A, if the sixty (60) day period begins in one calendar year and ends in a second (2nd) calendar year, payment shall always be paid in the second (2nd) calendar year.All payments of amounts described in this Section 5(c) are subject to Executive's continued compliance with the provisions of Sections 6, 7, 8, 23 and 25 hereof.

(d)Termination for Cause, for Death, or Disability, or Executive's Voluntary Termination Without Good Reason.If Executive's employment hereunder and the Employment Period is terminated by the Company for Cause; or upon Executive's death or by the Company due to Executive's Disability; or voluntarily by Executive without Good Reason, Executive shall be entitled to receive the Accrued Obligations.

(e)Limitation on Payments Hereunder.Except as otherwise expressly provided herein, Executive shall not be entitled to any other salary, bonuses, employee benefits, or compensation from the Company, its Affiliates, or Subsidiaries after the termination of the Employment Period, and all of Executive's rights to salary, bonuses, employee benefits, and other compensation hereunder which would have accrued or become payable after the termination of the Employment Period (other than vested retirement benefits accrued on or prior to the termination of the Employment Period or other amounts owing hereunder as of the date of such termination that have not yet been paid) shall cease upon such termination, other than those expressly required under applicable law (including the those under Title I, Part VI, of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Code ("COBRA")).

(f)Mitigation.Executive is under no obligation to mitigate damages or the amount of any payment provided for hereunder by seeking other employment or otherwise, and the Company shall have no right of offset for any amounts received by Executive from other employment.

(g)Offsets.The Company may offset any amounts Executive owes to Company or any of its Affiliates or Subsidiaries against any amounts the Company owes Executive hereunder, to the extent permitted by Section 409A.

6. Confidential Information.

(a)Confidential Information.Executive acknowledges that the continued success of the Company and its Subsidiaries and Affiliates depends upon the use and protection of a large body of confidential and proprietary information.All of such confidential and proprietary information now existing or to be developed in the future will be referred to in this Agreement as "Confidential Information."Confidential Information will be interpreted as broadly as possible to include all information of any sort (whether merely remembered or embodied in a tangible or intangible form) that is (i) related to the Company's or its Subsidiaries' or Affiliates' current or potential business and (ii) is not generally or publicly known.Confidential Information includes, without specific limitation, the information, observations, and data obtained by Executive from the performance of Executive's duties to the Company and Subsidiaries and its Affiliates (including services performed prior to the date of this Agreement) concerning the business and affairs of the Company and its Subsidiaries and Affiliates; information concerning acquisition opportunities in or reasonably related to the Company's or its Subsidiaries' or Affiliates' business or industry of which Executive becomes aware prior to or during the Employment Period; the Persons or entities that are current, former or prospective members, suppliers, or customers of any one or more of them, as well as development, transition and transformation plans, methodologies and methods of doing business, strategic, marketing and expansion plans, including plans regarding planned and potential sales, financial and business plans, employee lists and telephone numbers, locations of sales representatives, new and existing programs and services, prices and terms, customer service, integration processes, requirements and costs of providing service, support, and equipment.Accordingly, Executive agrees that, either during or after the Employment Period, Executive shall not disclose to any unauthorized Person or use for Executive's or any Person's own account any Confidential Information without the Board's prior written consent, unless and to the extent that any Confidential Information (i) becomes generally known to and available for use by the public other than as a result of Executive's acts or omissions to act or (ii) is required to be disclosed pursuant to any applicable law or court order (in which case Executive shall give prior written notice to the Company of such required disclosure and shall cooperate with the Company and its Subsidiaries and Affiliates in any reasonable efforts to limit such disclosure or preserve the confidentiality of any Confidential Information).Executive agrees to deliver to the Company at the end of the Employment Period, or at any other time the Company may request in writing, all memoranda, notes, plans, records, reports, and other property or documents (and copies thereof) relating to the business of the Company or its Subsidiaries or Affiliates (including, without limitation, all Confidential Information) that Executive may then possess or have under Executive's control.

(b)Non-Use and Non-Disclosure.During or after the Employment Period, Executive shall not use or disclose any confidential information or trade secrets, if any, of any former employers or any other Person to whom Executive has an obligation of confidentiality, and shall not bring onto the premises of the Company or its Subsidiaries or Affiliates any unpublished documents or any property belonging to any former employer or any other Person to whom Executive has an obligation of confidentiality unless consented to in writing by the former employer or Person.Executive shall use in the performance of Executive's duties only information that is (i) generally known and used by Persons with training and experience comparable to Executive's and that is (A) common knowledge in the industry or (B) is otherwise legally in the public domain, (ii) otherwise provided or developed by the Company or its Subsidiaries or Affiliates or (iii) in the case of materials, property, or information belonging to any former employer or other Person to whom Executive has an obligation of confidentiality, approved for such use in writing by such former employer or Person.If at any time

during the Employment Period, Executive believes Executive is being asked to engage in work that will, or will be likely to, jeopardize any confidentiality or other obligations Executive may have to former employers, Executive shall immediately advise the Chairman of the Board so that Executive's duties can be modified appropriately.

(c)Trade Secrets.The federal Defend Trade Secrets Act of 2016 immunizes employees against criminal and civil liability under federal or state trade secret laws – under certain circumstances – if Executive discloses a trade secret for the purpose of reporting a suspected violation of law.Immunity is available if Executive discloses a trade secret in either of these two circumstances: (i) Executive discloses the trade secret (A) in confidence, (B) directly or indirectly to a government official (federal, state or local) or to a lawyer, (C) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a legal proceeding, Executive discloses the trade secret in the complaint or other documents filed in the case, so long as the document is filed "under seal" (meaning that it is not accessible to the public). Further, nothing in this Agreement prohibits Executive from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress, and any federal Inspector General, or from making other disclosures that are protected under the whistleblower provisions of federal law or regulation.Executive does not need prior authorization to make any such reports or disclosures and is not required to notify the Company or the Board that he has made such reports or disclosures.

(d)Executive's Representations Regarding Prior Employers.Executive represents and warrants to the Company and its Subsidiaries and Affiliates that Executive took nothing with Executive which belonged to any former employer when Executive left Executive's position(s) with such employer(s) and that Executive has nothing that contains any information which belongs to any former employer.If at any time Executive discovers that this representation and warranty is incorrect, Executive shall promptly return any such materials to Executive's former employer(s).The Company and its Subsidiaries and Affiliates do not want any such materials, and Executive shall not be permitted to use or refer to any such materials in the performance of Executive's duties hereunder.

(e)Third Party Information.Executive understands that the Company and its Subsidiaries and Affiliates will receive from third parties confidential or proprietary information ("Third Party Information") subject to a duty on the Company's and its Subsidiaries' and Affiliates' part to maintain the confidentiality of such information and to use it only for certain limited purposes.During the Employment Period and thereafter, and without in any way limiting the provisions of Section 6(a) above, Executive shall hold Third Party Information in the strictest confidence and will not disclose to anyone (other than personnel of the Company or its Subsidiaries and Affiliates who need to know such information in connection with their work for the Company or such Subsidiaries and Affiliates) or use, except in connection with Executive's work for the Company or its Subsidiaries and Affiliates, Third Party Information unless expressly authorized by the Chairman of the Board in writing.

(f)Return of Property.Upon termination of the Employment Period, or at any time upon demand of the Board, Executive will be required to return all property of the Company or its Subsidiaries or Affiliates in his possession or control, including, but not limited to all hard copy or electronic documents and/or data, computer hardware (laptop, docking station, storage media, air cards, building access cards/fobs, cell phones, tablets, external hard drives, company issued keys, credit cards, USB flash drives, etc.), Company-owned software, and Confidential Information. If requested by the Board, Executive will be required to represent and certify that he has not retained or transferred any company data or information outside of the Company.

7. Intellectual Property, Inventions, and Patents. Executive acknowledges that all discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, patent applications, copyrightable work, and mask work (whether or not including any Confidential Information) and all registrations or applications related thereto, all other proprietary information and all similar or

related information (whether or not patentable) which relate to the Company's or any of its Subsidiaries' and Affiliates' actual or anticipated business, research, and development or existing or future products or services and which are conceived, developed, or made by Executive (whether alone or jointly with others) while employed by the Company and its Subsidiaries, whether before or after the date of this Agreement ("Work Product"), belong to the Company or such Subsidiary or Affiliate. Executive shall promptly disclose such Work Product to the Board and, at the Company's expense, perform all actions reasonably requested by the Board (whether during or after the Employment Period) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney, and other instruments). Notwithstanding the foregoing, copyrightable books authored by Executive and recordings of and materials prepared in connection with speeches or presentations relating to leadership and unrelated to the Company and not written in connection with Executive's duties are not Work Product and shall remain Executive's sole property.

8. Non-Compete; Non-Solicitation.

(a)Non-Competition.In further consideration of the compensation to be paid to Executive hereunder, Executive acknowledges that during the course of his employment with the Company and its Subsidiaries and Affiliates he has and shall become familiar with the Company's and its Subsidiaries' and Affiliates' corporate strategy, pricing, and other market and financial information, know-how, trade secrets, and valuable customer, supplier, and employee relationships, and with other Confidential Information concerning the Company and its Subsidiaries and Affiliates, and that his services have been and shall be of special, unique, and extraordinary value to the Company and its Subsidiaries and Affiliates.Accordingly, during the Employment Period and for eighteen (18) months thereafter, Executive shall not directly or indirectly (whether as employee, director, owner, stockholder, consultant, partner (limited or general), or otherwise) own any interest in, manage, control, participate in, consult with, advertise on behalf of, render services for or in any manner engage in any Competing Business (as defined below) that conducts operations or sales in countries the Company or its Subsidiaries or Affiliates conduct sales or operations, including but not limited to the United States of America, Canada and Mexico, or have taken active steps towards conducting sales or operations as of the date of Executive's termination of employment.Nothing herein shall prohibit Executive from being a passive owner of not more than two percent (2%) of the outstanding stock of any class of a corporation which is publicly traded, so long as Executive has no active participation in the business of such corporation.For purpose of this Agreement, "Competing Business" shall mean any business or enterprise providing any products or services described by the Company, its Subsidiaries, or Affiliates on the Company's website at any time during the Employment Period or the provision of any products or services contemplated by the Company, its Subsidiaries, or Affiliates at any time during the Employment Period as memorialized in any document maintained or created by the Company.

(b)Non-Solicitation.During the Employment Period and for twenty-four (24) months thereafter (together with the period referenced in Section 8(a), the "Restriction Periods"), Executive shall not directly or indirectly through another Person (i) induce or attempt to induce any employee of the Company or any Subsidiary or Affiliate to leave the employ of the Company or such Subsidiary or Affiliate, or in any way interfere with the relationship between the Company or any Subsidiary or Affiliate and any employee thereof; (ii) knowingly hire any Person who was an employee of the Company or any Subsidiary or Affiliate at any time during the twelve (12) months prior to the termination of Executive's employment; or (iii) induce or encourage any customer, supplier, licensee, licensor, or other business relation of the Company or any Subsidiary or Affiliate to cease doing business with or materially reduce its business with the Company or such Subsidiary or Affiliate, or in any way interfere with the relationship between any such customer, supplier, licensee, licensor, or business relation and the Company or any Subsidiary or Affiliate (including, without limitation, making any negative or disparaging statements or communications regarding the Company or its Subsidiaries or Affiliates).

(c)Reformation.If, at the time of enforcement of this Section 8, a court shall hold that the duration, scope, or area restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope, or area reasonable under such circumstances shall be substituted for the stated duration, scope, or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope, and area permitted by law.

(d)Executive's Acknowledgements.Executive acknowledges that Executive has carefully read this Agreement and has given careful consideration to the restraints imposed upon Executive by this Agreement, and is in full accord as to the necessity of such restraints for the reasonable and proper protection of the Confidential Information, business strategies, employee and customer relationships, and goodwill of the Company and its Subsidiaries and Affiliates now existing or to be developed in the future.Executive expressly acknowledges and agrees that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time period, and geographical area.Executive further acknowledges that although Executive's compliance with the covenants contained in Sections 6, 7, or 8 may prevent Executive from earning a livelihood in a business similar to the business of the Company, Executive's experience and capabilities are such that Executive has other opportunities to earn a livelihood and adequate means of support for Executive and Executive's dependents.

9. Enforcement. Because Executive's services are unique and because Executive has access to Confidential Information and Work Product, the parties agree that the Company and its Subsidiaries and Affiliates will suffer irreparable harm from a breach or threatened breach of Sections 6, 7, 8, 23 or 25 by Executive and that money damages would not be an adequate remedy for any such breach or threatened breach of this Agreement. In the event of any breach or threatened breach of this Agreement, the Company and its Subsidiaries and Affiliates, in addition to other rights and remedies existing in their favor, shall be entitled to specific performance and/or injunctive or other equitable relief from a court of competent jurisdiction in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security). In addition, in the event of an alleged breach of violation by Executive of Section 8, the Restriction Periods shall be extended automatically by the amount of time between the initial occurrence of the breach or violation and when such breach or violation has been duly cured.

10. Executive's Representations. Executive hereby represents and warrants to the Company that (a) the execution, delivery, and performance of this Agreement by Executive do not and shall not conflict with, breach, violate, or cause a default under any contract, agreement, instrument, order, judgment, or decree to which Executive is a party or by which Executive is bound; (b) Executive is not a party to or bound by any employment agreement, noncompete agreement, or confidentiality agreement with any other Person that would prohibit Executive's employment with the Company or restrict Executive's ability to fully perform Executive's duties for the Company; (c) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms; and (d) Executive is not subject to any pending, or to his knowledge any threatened, lawsuit, action, investigation, or proceeding involving Executive's prior employment or consulting work or the use of any information or techniques of any former employer or contracting party. Executive hereby acknowledges and represents that he has consulted with independent legal counsel regarding Executive's rights and obligations under this Agreement and that Executive fully understands the terms and conditions contained herein.

11. Survival. Sections 5 through 25 shall survive and continue in full force in accordance with their terms notwithstanding the termination of the Employment Period.

12. Notices. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, sent by reputable overnight courier service, or mailed by first class mail, return receipt requested, to the recipient at the address below indicated:

Notices to Executive:

David L. Duvall

6112 Karrer Place

Dublin OH 43017

Notices to the Company:

Core Molding Technologies, Inc.

800 Manor Park Dr.

Columbus, Ohio 43228

Attn: Chairman of the Board

with a copy to:

Squire Patton Boggs (US) LLP

2000 Huntington Center

41 South High Street

Columbus, Ohio 43215

Attention:Donald W. Hughes

or such other address or to the attention of such other Person as the recipient party shall have specified by prior written notice to the sending party.Any notice under this Agreement shall be deemed to have been given when so delivered, sent, or mailed.

13. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal, or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement or any action in any other jurisdiction, but this Agreement shall be reformed, construed, and enforced in such jurisdiction as if such invalid, illegal, or unenforceable provision had never been contained herein.

14. Complete Agreement. This Agreement embodies the complete agreement and understanding among the parties and supersedes and preempts any prior understandings, agreements, or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

15. No Strict Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party.

16. Counterparts. This Agreement may be executed in separate counterparts (including by means of pdf signature page), each of which is deemed to be an original, and all of which taken together constitute one and the same agreement.

17. Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive, the Company, its Subsidiaries and Affiliates and their respective heirs, successors, and assigns, except that Executive may not assign Executive's rights or delegate Executive's duties or obligations hereunder without the prior written consent of the Company. The Company may unilaterally assign its rights and obligations under this Agreement to any successor to Company's rights and obligations hereunder as a result of any change of control, merger, consolidation, restructuring or reorganization or to any other

successor to all or substantially all of the securities, business and/or assets of the Company or any of its affiliates, and Executive shall continue to be bound by the terms and conditions of this Agreement.

18. Choice of Law and Choice of Forum. All issues and questions concerning the construction, validity, enforcement, and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Ohio, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Ohio or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Ohio. Jurisdiction and venue of any dispute, action or proceeding relating to this Agreement, the employment of Executive, the termination of Executive's employment, or the validity, interpretation, performance, breach or termination of the Agreement shall be exclusively in the state or federal court located in Franklin County, Ohio.

19. Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of the Company (as approved by the Board) and Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement (including, without limitation, the Company's right to terminate the Employment Period with or without Cause) shall affect the validity, binding effect, or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this Agreement.

20. Insurance. The Company may, at its discretion, apply for and procure in its own name and for its own benefit life and/or disability insurance on Executive in any amount or amounts considered advisable. Executive agrees to cooperate in any medical or other examination, supply any information, and execute and deliver any applications or other instruments in writing as may be reasonably necessary to obtain and constitute such insurance.

21. Tax Matters; Section 409A.

(a)The Company and its respective Subsidiaries and Affiliates shall be entitled to report such income and deduct or withhold from any amounts owing from the Company or any of its Subsidiaries or Affiliates to Executive any federal, state, local, or foreign withholding taxes, excise tax, or employment taxes ("Taxes") imposed with respect to Executive's compensation or other payments and benefits from the Company or any of its Subsidiaries or Affiliates (including, without limitation, Base Salary and Annual Bonuses).

(b)The intent of the parties is that payments and benefits under this Agreement comply with Section 409A; and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.

(c)Notwithstanding the foregoing, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a "termination," "termination of employment" or like terms shall mean "separation from service."Notwithstanding anything to the contrary in this Agreement, if Executive is deemed on the date of termination to be a "specified employee" within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered "nonqualified deferred compensation" under Section 409A payable on account of a "separation from service," such payment or benefit shall not be made or provided until the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such "separation from service" of Executive, and (B) the date of Executive's death, to the extent required under Section 409A.Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 21(c) (whether they would have otherwise been payable in a single sum or in installments in

the absence of such delay) shall be paid or reimbursed to Executive in a lump sum, without interest, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

(d)To the extent that reimbursements or other in-kind benefits under this Agreement constitute "nonqualified deferred compensation" for purposes of Section 409A, (A) all such expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Executive; (B) any right to such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

(e)For purposes of Section 409A, Executive's right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company, to the extent permitted under Section 409A.

(f)Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes "nonqualified deferred compensation" for purposes of Section 409A be subject to offset by any other amount unless otherwise permitted by Section 409A.

(g)Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes "nonqualified deferred compensation" for purposes of Section 409A be accelerated or delayed in contravention of the regulations under Section 409A.

22. Waiver of Jury Trial. As a specifically bargained for inducement for each of the parties hereto to enter into this Agreement (after having the opportunity to consult with counsel), each party hereto expressly waives the right to trial by jury in any lawsuit or proceeding relating to or arising in any way from this Agreement or the matters contemplated hereby.

23. Corporate Opportunity. Executive shall submit to the Board all material business, commercial, and investment opportunities or offers presented to Executive, or of which Executive becomes aware, at any time during the Employment Period, which opportunities relate to the Company's business ("Corporate Opportunities"). Unless approved by the Board, during the Employment Period Executive shall not accept or pursue, directly or indirectly, any Corporate Opportunities on Executive's own behalf or for Executive's personal benefit or for the benefit of any Person other than the Company.

24. Executive's Cooperation. During the Employment Period and thereafter, Executive shall reasonably cooperate with the Company and its Subsidiaries and Affiliates in any internal investigation or administrative, regulatory, or judicial proceeding as reasonably requested by the Company or any Subsidiary or Affiliate (including, without limitation, Executive's being available to the Company and its Subsidiaries and Affiliates upon reasonable notice for interviews and factual investigations, appearing at the Company's or any Subsidiary's or Affiliate's request to give truthful and accurate testimony without requiring service of a subpoena or other legal process, volunteering to the Company and its Subsidiaries and Affiliates all pertinent information and turning over to the Company and its Subsidiaries and Affiliates all relevant documents which are or may come into Executive's possession, all at times and on schedules that are reasonably consistent with Executive's other permitted activities and commitments). In the event the Company or any Subsidiary or Affiliate requires Executive's cooperation in accordance with this section, the Company shall pay Executive a per diem

reasonably determined by the Board and reimburse Executive for reasonable expenses incurred in connection therewith (including reasonable transportation, lodging and meals, upon submission of receipts).

25. Nondisparagement. During the Employment Period and thereafter, Executive shall not make, publish, or solicit, or encourage others to make, publish, or solicit, any disparaging oral or written statements, comments, announcements, or remarks concerning the Company or its Subsidiaries or Affiliates, or any of their respective directors, officers, or employees. Likewise, during the Employment Period and thereafter, the directors and officers of the Company shall not make, publish, or solicit, or encourage others to make, publish, or solicit, any disparaging oral or written statements, comments, announcements, or remarks concerning Executive. The foregoing shall not be violated by truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings).

* * *

IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement effective as of the date first written above but signed on the date(s) indicated below.

COMPANY:

CORE MOLDING TECHNOLOGIES, INC.

By:_________________________________

Name:

Title:

EXECUTIVE:

________________________________________

David L. Duvall

Date:

EXHIBIT A

Definitions

"Affiliate" means any employer with which the Company would be considered a single employer under Section 414(b) or 414(c) of the Code (as defined below), applied using fifty percent (50%) as the percentage of ownership required under such Code sections, including (i) any Person (as defined below), any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with, such specified Person and (ii) any Person that is a natural Person, the spouse, ancestors, or lineal descendants of such Person, any limited partnership or limited liability

company controlled by such Person or such Person's spouse, ancestors, or lineal descendants or in which such Person or such Person's spouse, ancestors, or lineal descendants hold a majority interest, any trust established for the benefit of any of them and such Person's estate or legal representative.

"Cause" means, with respect to Executive, one or more of the following: (i) commission of, or indictment for, a felony, a misdemeanor where the potential penalty therefor includes jail-time or a crime involving moral turpitude; (ii) commission of an act or omission to act with respect to the Company or any of its Affiliates or Subsidiaries or any of their customers or suppliers involving dishonesty, disloyalty, or fraud; (iii) conduct that brings or is reasonably likely to bring the Company or its Affiliates or Subsidiaries negative publicity or into public disgrace, embarrassment or disrepute; (iv) repeated failure to perform duties as reasonably directed by the Board; (v) gross negligence or willful misconduct with respect to the Company or any of its Affiliates or Subsidiaries; (vi) material breach of the Company's Code of Conduct as amended from time to time (it being agreed that, among other things, violation of the Company's policy on harassment, anti-bribery, anti-corruption and drug and alcohol-free workplace are all deemed material for purposes of this definition); or (vii) any breach by Executive of Section 6, 7, 8, 23 or 25 of this Agreement.With respect to subsection (iv) herein, "Cause" shall only exist if Executive fails to cure the alleged infraction within ten (10) days of receiving written notice from the Company.

"Change of Control" shall mean the occurrence of any of the following after the Effective Date: (a) one Person (or more than one Person acting as a group) acquires ownership of stock of the Company that, together with the stock held by such Person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company; (b) a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the Board before the date of appointment or election; or (c) the sale of all or substantially all of the Company's assets. Notwithstanding the foregoing, a Change of Control shall not occur unless such transaction constitutes a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the Company's assets under Section 409A.

"Code" means the Internal Revenue Code of 1986, as amended.

"Disability" means (i) Executive's inability, by virtue of ill health or other physical or mental illness, to perform substantially and continuously the duties assigned to Executive with reasonable accommodation for more than one hundred eighty (180) consecutive or non-consecutive days out of any consecutive 12-month period or (ii) if Executive is considered disabled under the Company's long-term disability insurance plan.

"Good Reason" means, with respect to Executive's resignation from employment, one or more of the following occurring within twenty-four (24) months following a Change of Control: (i) a material reduction in Executive's Base Salary, compensation or benefits; (ii) a material diminution in Executive's position and/or duties; (iii) a material breach of this Agreement by the Person or other entity then controlling the Company; (iv) the Company relocates its principal executive offices, or requires Executive to have his principal location of work changed, to any location which is in excess of fifty (50) miles from the location thereof immediately prior to the Change of Control, or (v) a disavowal of this Agreement by the Person or other entity then controlling the Company.With respect to subsections (i), (ii) or (iii) herein, "Good Reason" shall only exist if the Company fails to cure the alleged infraction within thirty (30) days of receiving written notice from Executive, which written notice must be given by Executive to the Company within six (6) months of the occurrence of such event.

"Person" means any natural person, corporation, partnership (whether general or limited), limited liability company, association, custodian, nominee, trust, estate, joint venture, governmental authority, or other individual or entity.

"Subsidiary" means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture, or other business entity of which more than fifty percent (50%) of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person (or, in the case of a partnership,

limited liability company, or other similar entity, control of the general partnership, managing member, or similar interests) or Persons (whether directors, managers, trustees, or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof.

EX-10.Q

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (this "Agreement") is made effective as of ____________, 2021 (the "Effective Date"), by and between CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation (the "Company"), and ______________ ("Executive").

Background

WHEREAS, Executive and the Company are parties to (a) an Executive Employment Agreement dated effective as of ___________, 20__ (the "Original Agreement") pursuant to which the Company [continued] Executive's employment in the position of ________________ ("_____") according to the terms and conditions stated therein, [and (b) an Executive Severance Agreement dated ____________ (the "Executive Severance Agreement") pursuant to which the Company provided Executive certain benefits on a sale or change of control of the Company]; and

WHEREAS, Executive and the Company wish to enter into this Agreement to amend, restate, supersede and replace the Original Agreement [and the Executive Severance Agreement] according to the terms and conditions stated herein.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Definitions. Capitalized terms not otherwise defined herein shall have the meanings set forth on Exhibit A attached hereto.

2. Employment. For the purposes of this Agreement, the term "Employment Period" shall mean the period commencing as of the Effective Date and ending in accordance with Section 5 (the "Employment Period"). The Company shall continue to employ Executive, and Executive hereby accepts continued employment with the Company, upon the terms and conditions set forth in this Agreement for the Employment Period.

3. Duties. Executive shall have the normal duties, responsibilities, functions, and authority of the ___, subject to the power and authority of the Board of Directors of the Company (the "Board"), and Executive shall report to the CEO. Executive shall render to the Company administrative, financial, and other executive and managerial services that are consistent with Executive's position as the CEO may from time to time direct. Executive shall devote Executive's full business time and attention (except for vacation periods consistent with the terms of this Agreement and reasonable periods of illness or other incapacity) to the business and affairs of the Company, its Affiliates, and its Subsidiaries. In performing Executive's duties and exercising Executive's authority under this Agreement, Executive shall support and implement the business and strategic plans approved from time to time by the Board and shall support and cooperate with the Company's effort to expand the business and operate in conformity with the business and strategic plans. So long as Executive is employed by the Company, Executive shall not, without prior notification and approval of the CEO, who may approve under such procedures as the Board shall from time to time approve, serve on the board of directors of any other company for compensation or remuneration, and Executive shall not undertake, engage in or perform other activities or services for Executive's personal benefit or for the benefit of any Person other than the Company and its Subsidiaries and Affiliates if such other activities or services interfere with the performance of Executive's duties under this Agreement. Subject to the foregoing provision, nothing in this Agreement shall be construed as preventing Executive from engaging in volunteer services for charitable, educational or civic organizations,

serving on the board of directors of other companies without compensation or remuneration, or investing Executive's personal assets in such a manner as Executive deems to be appropriate; provided, however, no such other activity shall conflict with Executive's obligations under this Agreement or interfere with Executive's performance of Executive's duties under this Agreement.

4. Compensation and Benefits. In exchange for services rendered by Executive hereunder, the Company shall provide the following:

(a) Base Salary and Benefits.During the Employment Period, Executive's base salary shall be $___________ per annum, or such higher amount as determined by the Board in its discretion, as adjusted from time to time (the "Base Salary"), which salary shall be payable by the Company in regular installments in accordance with the Company's general payroll practices (in effect from time to time). In addition, during the Employment Period, Executive shall be entitled to participate in all of the Company's retirement, health, and welfare employee benefit programs for which senior management employees of the Company are generally eligible to participate (assuming Executive and/or Executive's dependents meet the eligibility requirements of those benefit programs) as may be changed from time to time by the Company or the relevant insurer or administrator.

(b) Business Expenses. Subject to Section 21(d), during the Employment Period, the Company shall reimburse Executive for all reasonable business expenses incurred by Executive in the course of performing Executive's duties and responsibilities under this Agreement, which business expenses are consistent with the Company's policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company's requirements with respect to reporting and documentation of such expenses.

(c) Incentive Compensation. In addition to the Base Salary, Executive shall be eligible for: (i) an annual short term incentive plan (the "Annual STIP") pursuant to the annual Short Term Incentive Plan established by the Board (the "STIP Plan"); and (ii) in the discretion of the Compensation Committee of the Board, annual long-term incentive target awards under the Core Molding Technologies, Inc. Long-Term Equity Incentive Plan, ("LTIP") with such LTIP awards vesting one-third (1/3) on each anniversary of the applicable grant date and subject to such other terms and conditions set forth in the LTIP and applicable award agreement. Except with respect to Executive's eligibility to participate in the STIP and the LTIP as provided in this Section 4(c), Executive's eligibility to participate and Executive's rights, benefits, and obligations under such STIP and LTIP shall be determined in accordance with those plans and by the Compensation Committee of the Board. The Company reserves the right and sole and absolute discretion to alter, amend, or terminate the STIP, LTIP, and any other incentive plans at any time.

(d) Vacation. During the Employment Period, Executive shall be entitled to 4 weeks of paid vacation per calendar year (as prorated for partial years) in accordance with the Company's policies on accrual and use applicable to employees as in effect from time to time. Vacation hours will accrue at a rate of one week per quarter. Vacation may be taken at such times and intervals as Executive determines, subject to the business needs of the Company, after consultation with the CEO.

5. Term; Termination of Employment Period.

(a)Employment Period.The Employment Period shall be perpetual, until terminated as a result of: (i) Executive's resignation, which resignation must be accompanied by at least thirty (30) days' prior written notice (except in the case of resignation by Executive for "Good Reason" as defined below); (ii) termination by the Company due to Executive's Disability (as defined below); (iii) the Company's termination of Executive's employment (whether with Cause (as defined below) or without Cause); or (iv) Executive's death.In the event of the termination of Executive's employment by

Executive or by the Company for any reason and regardless of the circumstance, Executive shall be deemed to have resigned from any and all positions as an officer and/or director of the Company and/or its Subsidiaries and Affiliates immediately upon such termination, and shall promptly execute all documents reasonably requested by the Company in order to effect such resignation.

(b)Termination by Company without Cause or by Executive for Good Reason.Subject to Section 21 and except during a Change of Control Period, if Executive's employment hereunder and the Employment Period are terminated by the Company without Cause or by Executive for Good Reason, Executive shall be entitled to payment of:

(i)Executive's accrued but unpaid Base Salary through the date of termination;

(ii)any accrued, unused vacation pay at the rate of Executive's then Base Salary and any properly documented reimbursable expenses owed to Executive;

(iii)any amount arising from Executive's participation in, or benefits under any employee benefit plans, programs, or arrangements, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs, or arrangements, including without limitation any amount earned under any STIP or LTIP but not paid prior to the termination (clauses (i), (ii) and (iii) of this Section 5(b), collectively, the "Accrued Obligations");

(iv)Executive's then-current Base Salary for twelve (12) consecutive months, with the time of payment of such installments, as applicable, commencing as provided below;

(v)if suchterminationoccurs beforethecompletion ofan applicable measuring period, Executive will receive the full target incentive award amount oftheSTIP Executive would have received had Executive continued tobe employed through theend of such period, payable at thesametime and in the same form of payment that allSTIP awards are payable to STIP participants pursuant to the termsspecified in the STIP; and

(vi)if Executive has received awards of equity or other compensation under the LTIP that remain subject to vesting, then the Executive will receive a cash severance equal to the market value of all unvested shares determined using the closing price of Company's common stock as of the date of Executive's termination (or, if such date is a date on which the Company's common stock is not trading, then the closing price as of the previous trading day).

The amounts described in Section 5(b)(iv) will commence to be paid to Executive within sixty (60) days following the date of termination, provided that Executive (or, in the event of Executive's death, Executive's estate) has executed and delivered to the Company not later than forty-five (45) days following the date of termination an irrevocable general waiver and release of claims in the form provided by the Company to Executive (or, in the event of Executive's death, Executive's estate) after Executive's termination (the "General Release") and the latest date on which the General Release is subject to revocation has expired.The Accrued Obligations shall be paid no later than as required by law or within thirty (30) days following the date of termination, whichever occurs earlier.As to any amount described in Section 5(b)(iv) that constitutes "nonqualified deferred compensation" within the meaning of Code Section 409A and the regulations and guidance promulgated thereunder (collectively, "Section 409A"), if the sixty (60) day period begins in one calendar year and ends in a second (2nd) calendar year, payment shall always be paid in the second (2nd) calendar year.Once they begin within such sixty (60) day period following termination, the amounts payable pursuant to Section 5(b)(iv) shall be payable in substantially equal consecutive installments over the twelve (12) month period following the date of termination (the "Severance Period") in accordance with the Company's general payroll practices as in effect on the date of termination, but in no event less frequently than monthly (with the first such payment being in an amount equal to the total amount to which Executive would otherwise have been entitled during the period following the date of termination through such payment commencement date).The amount(s) payable pursuant to Section 5(b)(v) shall be paid provided the General Release has become effective under its terms on the date of such payment(s).All payments of amounts described in Section 5(b)(iv)

and Section 5(b)(v) are subject to Executive's (or in the event of Executive's death, Executive's estate's) continued compliance with the provisions of Sections 6, 7, 8, 23 and 25 hereof.

(c)Certain Terminations During Change of Control Period.Subject to Section 21, if at any time within twenty-four (24) months of a Change of Control (the "Change of Control Period"), Executive's employment hereunder and the Employment Period are terminated by the Company without Cause or by Executive for Good Reason, Executive shall be entitled to payment of:

(i)Accrued Obligations due to Executive;

(ii) if Executive has received awards of equity or other compensation under the LTIP that remain subject to vesting, then the Executive will receive a cash severance equal to the market value of all unvested shares determined using the closing price of Company's common stock as of the date of Executive's termination (or, if such date is a date on which the Company's common stock is not trading, then the closing price as of the previous trading day); and

(iii)In lieu of any further salary payments for periods subsequent to the date of termination, an amount equal to 2.99 times the sum of (A) the average of the Executive's Base Salary as reported on the Executive's W-2 form for the five (5) calendar years prior to the calendar year in which such termination occurs, or, in the event the Executive has been employed by the Company for less than five (5) calendar years, an average based upon such lesser number of calendar years for which the executive has actually been employed, and (B) the average of the Annual STIP earned by the Executive as reported on the Executive's W-2 form for the five (5) calendar years prior to the year in which such termination occurs, provided that the sum of clauses (A) and (B) of this Section 5(c)(iii) (plus any parachute payments (as defined in Section 280G of the Code) otherwise provided for the benefit of Executive pursuant to this or any other agreement, plan, or arrangement) shall not exceed 2.99 times the "Base Amount" as defined in Section 280G(b)(3) of the Code.

The amounts described in Section 5(c)(iii) will be paid to Executive in lump sum within thirty (30) days following the date of termination, provided that (A) Executive has executed and delivered to the Company not later than ten (10) days following the date of termination a General Release and (B) the latest date on which the General Release is subject to revocation has expired.The Accrued Obligations shall be paid no later than as required by law or within thirty (30) days following the date of termination, whichever occurs earlier.As to any amount described in Section 5(c)(iii) that constitutes "nonqualified deferred compensation" within the meaning of Section 409A, if the sixty (60) day period begins in one calendar year and ends in a second (2nd) calendar year, payment shall always be paid in the second (2nd) calendar year.All payments of amounts described in this Section 5(c) are subject to Executive's continued compliance with the provisions of Sections 6, 7, 8, 23 and 25 hereof.

(d)Termination for Cause, for Death, or Disability, or Executive's Voluntary Termination Without Good Reason.If Executive's employment hereunder and the Employment Period is terminated by the Company for Cause; or upon Executive's death or by the Company due to Executive's Disability; or voluntarily by Executive without Good Reason, Executive shall be entitled to receive the Accrued Obligations.

(e)Limitation on Payments Hereunder.Except as otherwise expressly provided herein, Executive shall not be entitled to any other salary, bonuses, employee benefits, or compensation from the Company, its Affiliates, or Subsidiaries after the termination of the Employment Period, and all of Executive's rights to salary, bonuses, employee benefits, and other compensation hereunder which would have accrued or become payable after the termination of the Employment Period (other than vested retirement benefits accrued on or prior to the termination of the Employment Period or other amounts owing hereunder as of the date of such termination that have not yet been paid) shall cease upon such termination, other than those expressly required under applicable law (including the those under Title I, Part VI, of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Code ("COBRA")).

(f)Mitigation.Executive is under no obligation to mitigate damages or the amount of any payment provided for hereunder by seeking other employment or otherwise, and the Company shall have no right of offset for any amounts received by Executive from other employment.

(g)Offsets.The Company may offset any amounts Executive owes to Company or any of its Affiliates or Subsidiaries against any amounts the Company owes Executive hereunder, to the extent permitted by Section 409A.

6. Confidential Information.

(a)Confidential Information.Executive acknowledges that the continued success of the Company and its Subsidiaries and Affiliates depends upon the use and protection of a large body of confidential and proprietary information.All of such confidential and proprietary information now existing or to be developed in the future will be referred to in this Agreement as "Confidential Information."Confidential Information will be interpreted as broadly as possible to include all information of any sort (whether merely remembered or embodied in a tangible or intangible form) that is (i) related to the Company's or its Subsidiaries' or Affiliates' current or potential business and (ii) is not generally or publicly known.Confidential Information includes, without specific limitation, the information, observations, and data obtained by Executive from the performance of Executive's duties to the Company and Subsidiaries and its Affiliates (including services performed prior to the date of this Agreement) concerning the business and affairs of the Company and its Subsidiaries and Affiliates; information concerning acquisition opportunities in or reasonably related to the Company's or its Subsidiaries' or Affiliates' business or industry of which Executive becomes aware prior to or during the Employment Period; the Persons or entities that are current, former or prospective members, suppliers, or customers of any one or more of them, as well as development, transition and transformation plans, methodologies and methods of doing business, strategic, marketing and expansion plans, including plans regarding planned and potential sales, financial and business plans, employee lists and telephone numbers, locations of sales representatives, new and existing programs and services, prices and terms, customer service, integration processes, requirements and costs of providing service, support, and equipment.Accordingly, Executive agrees that, either during or after the Employment Period, Executive shall not disclose to any unauthorized Person or use for Executive's or any Person's own account any Confidential Information without the CEO's prior written consent, unless and to the extent that any Confidential Information (i) becomes generally known to and available for use by the public other than as a result of Executive's acts or omissions to act or (ii) is required to be disclosed pursuant to any applicable law or court order (in which case Executive shall give prior written notice to the Company of such required disclosure and shall cooperate with the Company and its Subsidiaries and Affiliates in any reasonable efforts to limit such disclosure or preserve the confidentiality of any Confidential Information). Executive agrees to deliver to the Company at the end of the Employment Period, or at any other time the Company may request in writing, all memoranda, notes, plans, records, reports, and other property or documents (and copies thereof) relating to the business of the Company or its Subsidiaries or Affiliates (including, without limitation, all Confidential Information) that Executive may then possess or have under Executive's control.

(b)Non-Use and Non-Disclosure.During or after the Employment Period, Executive shall not use or disclose any confidential information or trade secrets, if any, of any former employers or any other Person to whom Executive has an obligation of confidentiality, and shall not bring onto the premises of the Company or its Subsidiaries or Affiliates any unpublished documents or any property belonging to any former employer or any other Person to whom Executive has an obligation of confidentiality unless consented to in writing by the former employer or Person.Executive shall use in the performance of Executive's duties only information that is (i) generally known and used by Persons with training and experience comparable to Executive's and that is (A) common knowledge in the industry or (B) is otherwise legally in the public domain, (ii) otherwise provided or developed by the Company or its Subsidiaries or Affiliates or (iii) in the case of materials, property, or information belonging to any former employer or other Person to whom Executive has an obligation of confidentiality, approved for such use in writing by such former employer or Person.If at any time

during the Employment Period, Executive believes Executive is being asked to engage in work that will, or will be likely to, jeopardize any confidentiality or other obligations Executive may have to former employers, Executive shall immediately advise the CEO so that Executive's duties can be modified appropriately.

(c)Trade Secrets.The federal Defend Trade Secrets Act of 2016 immunizes employees against criminal and civil liability under federal or state trade secret laws – under certain circumstances – if Executive discloses a trade secret for the purpose of reporting a suspected violation of law.Immunity is available if Executive discloses a trade secret in either of these two circumstances: (i) Executive discloses the trade secret (A) in confidence, (B) directly or indirectly to a government official (federal, state or local) or to a lawyer, (C) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a legal proceeding, Executive discloses the trade secret in the complaint or other documents filed in the case, so long as the document is filed "under seal" (meaning that it is not accessible to the public). Further, nothing in this Agreement prohibits Executive from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress, and any federal Inspector General, or from making other disclosures that are protected under the whistleblower provisions of federal law or regulation.Executive does not need prior authorization to make any such reports or disclosures and is not required to notify the Company or the CEO that he has made such reports or disclosures.

(d)Executive's Representations Regarding Prior Employers.Executive represents and warrants to the Company and its Subsidiaries and Affiliates that Executive took nothing with Executive which belonged to any former employer when Executive left Executive's position(s) with such employer(s) and that Executive has nothing that contains any information which belongs to any former employer.If at any time Executive discovers that this representation and warranty is incorrect, Executive shall promptly return any such materials to Executive's former employer(s).The Company and its Subsidiaries and Affiliates do not want any such materials, and Executive shall not be permitted to use or refer to any such materials in the performance of Executive's duties hereunder.

(e)Third Party Information.Executive understands that the Company and its Subsidiaries and Affiliates will receive from third parties confidential or proprietary information ("Third Party Information") subject to a duty on the Company's and its Subsidiaries' and Affiliates' part to maintain the confidentiality of such information and to use it only for certain limited purposes.During the Employment Period and thereafter, and without in any way limiting the provisions of Section 6(a) above, Executive shall hold Third Party Information in the strictest confidence and will not disclose to anyone (other than personnel of the Company or its Subsidiaries and Affiliates who need to know such information in connection with their work for the Company or such Subsidiaries and Affiliates) or use, except in connection with Executive's work for the Company or its Subsidiaries and Affiliates, Third Party Information unless expressly authorized by the CEO in writing.

(f)Return of Property.Upon termination of the Employment Period, or at any time upon demand of the CEO, Executive will be required to return all property of the Company or its Subsidiaries or Affiliates in his possession or control, including, but not limited to all hard copy or electronic documents and/or data, computer hardware (laptop, docking station, storage media, air cards, building access cards/fobs, cell phones, tablets, external hard drives, company issued keys, credit cards, USB flash drives, etc.), Company-owned software, and Confidential Information. If requested by the CEO, Executive will be required to represent and certify that he has not retained or transferred any company data or information outside of the Company.

7. Intellectual Property, Inventions, and Patents. Executive acknowledges that all discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, patent applications, copyrightable work, and mask work (whether or not including any Confidential Information) and all registrations or applications related thereto, all other proprietary information and all similar or

related information (whether or not patentable) which relate to the Company's or any of its Subsidiaries' and Affiliates' actual or anticipated business, research, and development or existing or future products or services and which are conceived, developed, or made by Executive (whether alone or jointly with others) while employed by the Company and its Subsidiaries, whether before or after the date of this Agreement ("Work Product"), belong to the Company or such Subsidiary or Affiliate. Executive shall promptly disclose such Work Product to the CEO and, at the Company's expense, perform all actions reasonably requested by the CEO (whether during or after the Employment Period) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney, and other instruments). Notwithstanding the foregoing, copyrightable books authored by Executive and recordings of and materials prepared in connection with speeches or presentations relating to leadership and unrelated to the Company and not written in connection with Executive's duties are not Work Product and shall remain Executive's sole property.

8. Non-Compete; Non-Solicitation.

(a)Non-Competition.In further consideration of the compensation to be paid to Executive hereunder, Executive acknowledges that during the course of his employment with the Company and its Subsidiaries and Affiliates he has and shall become familiar with the Company's and its Subsidiaries' and Affiliates' corporate strategy, pricing, and other market and financial information, know-how, trade secrets, and valuable customer, supplier, and employee relationships, and with other Confidential Information concerning the Company and its Subsidiaries and Affiliates, and that his services have been and shall be of special, unique, and extraordinary value to the Company and its Subsidiaries and Affiliates.Accordingly, during the Employment Period and for eighteen (18) months thereafter, Executive shall not directly or indirectly (whether as employee, director, owner, stockholder, consultant, partner (limited or general), or otherwise) own any interest in, manage, control, participate in, consult with, advertise on behalf of, render services for or in any manner engage in any Competing Business (as defined below) that conducts operations or sales in countries the Company or its Subsidiaries or Affiliates conduct sales or operations, including but not limited to the United States of America, Canada and Mexico, or have taken active steps towards conducting sales or operations as of the date of Executive's termination of employment.Nothing herein shall prohibit Executive from being a passive owner of not more than two percent (2%) of the outstanding stock of any class of a corporation which is publicly traded, so long as Executive has no active participation in the business of such corporation.For purpose of this Agreement, "Competing Business" shall mean any business or enterprise providing any products or services described by the Company, its Subsidiaries, or Affiliates on the Company's website at any time during the Employment Period or the provision of any products or services contemplated by the Company, its Subsidiaries, or Affiliates at any time during the Employment Period as memorialized in any document maintained or created by the Company.

(b)Non-Solicitation.During the Employment Period and for twenty-four (24) months thereafter (together with the period referenced in Section 8(a), the "Restriction Periods"), Executive shall not directly or indirectly through another Person (i) induce or attempt to induce any employee of the Company or any Subsidiary or Affiliate to leave the employ of the Company or such Subsidiary or Affiliate, or in any way interfere with the relationship between the Company or any Subsidiary or Affiliate and any employee thereof; (ii) knowingly hire any Person who was an employee of the Company or any Subsidiary or Affiliate at any time during the twelve (12) months prior to the termination of Executive's employment; or (iii) induce or encourage any customer, supplier, licensee, licensor, or other business relation of the Company or any Subsidiary or Affiliate to cease doing business with or materially reduce its business with the Company or such Subsidiary or Affiliate, or in any way interfere with the relationship between any such customer, supplier, licensee, licensor, or business relation and the Company or any Subsidiary or Affiliate (including, without limitation, making any negative or disparaging statements or communications regarding the Company or its Subsidiaries or Affiliates).

(c)Reformation.If, at the time of enforcement of this Section 8, a court shall hold that the duration, scope, or area restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope, or area reasonable under such circumstances shall be substituted for the stated duration, scope, or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope, and area permitted by law.

(d)Executive's Acknowledgements.Executive acknowledges that Executive has carefully read this Agreement and has given careful consideration to the restraints imposed upon Executive by this Agreement, and is in full accord as to the necessity of such restraints for the reasonable and proper protection of the Confidential Information, business strategies, employee and customer relationships, and goodwill of the Company and its Subsidiaries and Affiliates now existing or to be developed in the future.Executive expressly acknowledges and agrees that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time period, and geographical area.Executive further acknowledges that although Executive's compliance with the covenants contained in Sections 6, 7, or 8 may prevent Executive from earning a livelihood in a business similar to the business of the Company, Executive's experience and capabilities are such that Executive has other opportunities to earn a livelihood and adequate means of support for Executive and Executive's dependents.

9. Enforcement. Because Executive's services are unique and because Executive has access to Confidential Information and Work Product, the parties agree that the Company and its Subsidiaries and Affiliates will suffer irreparable harm from a breach or threatened breach of Sections 6, 7, 8, 23 or 25 by Executive and that money damages would not be an adequate remedy for any such breach or threatened breach of this Agreement. In the event of any breach or threatened breach of this Agreement, the Company and its Subsidiaries and Affiliates, in addition to other rights and remedies existing in their favor, shall be entitled to specific performance and/or injunctive or other equitable relief from a court of competent jurisdiction in order to enforce, or prevent any violations of, the provisions hereof (without posting a bond or other security). In addition, in the event of an alleged breach of violation by Executive of Section 8, the Restriction Periods shall be extended automatically by the amount of time between the initial occurrence of the breach or violation and when such breach or violation has been duly cured.

10. Executive's Representations. Executive hereby represents and warrants to the Company that (a) the execution, delivery, and performance of this Agreement by Executive do not and shall not conflict with, breach, violate, or cause a default under any contract, agreement, instrument, order, judgment, or decree to which Executive is a party or by which Executive is bound; (b) Executive is not a party to or bound by any employment agreement, noncompete agreement, or confidentiality agreement with any other Person that would prohibit Executive's employment with the Company or restrict Executive's ability to fully perform Executive's duties for the Company; (c) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms; and (d) Executive is not subject to any pending, or to his knowledge any threatened, lawsuit, action, investigation, or proceeding involving Executive's prior employment or consulting work or the use of any information or techniques of any former employer or contracting party. Executive hereby acknowledges and represents that he has consulted with independent legal counsel regarding Executive's rights and obligations under this Agreement and that Executive fully understands the terms and conditions contained herein.

11. Survival. Sections 5 through 25 shall survive and continue in full force in accordance with their terms notwithstanding the termination of the Employment Period.

12. Notices. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, sent by reputable overnight courier service, or mailed by first class mail, return receipt requested, to the recipient at the address below indicated:

Notices to Executive:

___________________

___________________

___________________

___________________

Notices to the Company:

Core Molding Technologies, Inc.

800 Manor Park Dr.

Columbus, Ohio 43228

Attn: CEO

with a copy to:

Squire Patton Boggs (US) LLP

2000 Huntington Center

41 South High Street

Columbus, Ohio 43215

Attention:Donald W. Hughes

or such other address or to the attention of such other Person as the recipient party shall have specified by prior written notice to the sending party.Any notice under this Agreement shall be deemed to have been given when so delivered, sent, or mailed.

13. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal, or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement or any action in any other jurisdiction, but this Agreement shall be reformed, construed, and enforced in such jurisdiction as if such invalid, illegal, or unenforceable provision had never been contained herein.

14. Complete Agreement. This Agreement embodies the complete agreement and understanding among the parties and supersedes and preempts any prior understandings, agreements, or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

15. No Strict Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party.

16. Counterparts. This Agreement may be executed in separate counterparts (including by means of pdf signature page), each of which is deemed to be an original, and all of which taken together constitute one and the same agreement.

17. Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive, the Company, its Subsidiaries and Affiliates and their respective heirs, successors, and assigns, except that Executive may not assign Executive's rights or delegate Executive's duties or obligations hereunder without the prior written consent of the Company. The Company may unilaterally assign its rights and obligations under this Agreement to any successor to Company's rights and obligations hereunder as a result of any

change of control, merger, consolidation, restructuring or reorganization or to any other successor to all or substantially all of the securities, business and/or assets of the Company or any of its affiliates, and Executive shall continue to be bound by the terms and conditions of this Agreement.

18. Choice of Law and Choice of Forum. All issues and questions concerning the construction, validity, enforcement, and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Ohio, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Ohio or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Ohio. Jurisdiction and venue of any dispute, action or proceeding relating to this Agreement, the employment of Executive, the termination of Executive's employment, or the validity, interpretation, performance, breach or termination of the Agreement shall be exclusively in the state or federal court located in Franklin County, Ohio.

19. Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of the Company (as approved by the Board) and Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement (including, without limitation, the Company's right to terminate the Employment Period with or without Cause) shall affect the validity, binding effect, or enforceability of this Agreement or be deemed to be an implied waiver of any provision of this Agreement.

20. Insurance. The Company may, at its discretion, apply for and procure in its own name and for its own benefit life and/or disability insurance on Executive in any amount or amounts considered advisable. Executive agrees to cooperate in any medical or other examination, supply any information, and execute and deliver any applications or other instruments in writing as may be reasonably necessary to obtain and constitute such insurance.

21. Tax Matters; Section 409A.

(a)The Company and its respective Subsidiaries and Affiliates shall be entitled to report such income and deduct or withhold from any amounts owing from the Company or any of its Subsidiaries or Affiliates to Executive any federal, state, local, or foreign withholding taxes, excise tax, or employment taxes ("Taxes") imposed with respect to Executive's compensation or other payments and benefits from the Company or any of its Subsidiaries or Affiliates (including, without limitation, Base Salary and Annual Bonuses).

(b)The intent of the parties is that payments and benefits under this Agreement comply with Section 409A; and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.

(c)Notwithstanding the foregoing, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a "termination," "termination of employment" or like terms shall mean "separation from service."Notwithstanding anything to the contrary in this Agreement, if Executive is deemed on the date of termination to be a "specified employee" within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered "nonqualified deferred compensation" under Section 409A payable on account of a "separation from service," such payment or benefit shall not be made or provided until the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such "separation from service" of Executive, and (B) the date of Executive's death, to the extent required under Section 409A. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to

this Section 21(c) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Executive in a lump sum, without interest, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

(d)To the extent that reimbursements or other in-kind benefits under this Agreement constitute "nonqualified deferred compensation" for purposes of Section 409A, (A) all such expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Executive; (B) any right to such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

(e)For purposes of Section 409A, Executive's right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company, to the extent permitted under Section 409A.

(f)Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes "nonqualified deferred compensation" for purposes of Section 409A be subject to offset by any other amount unless otherwise permitted by Section 409A.

(g)Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes "nonqualified deferred compensation" for purposes of Section 409A be accelerated or delayed in contravention of the regulations under Section 409A.

22. Waiver of Jury Trial. As a specifically bargained for inducement for each of the parties hereto to enter into this Agreement (after having the opportunity to consult with counsel), each party hereto expressly waives the right to trial by jury in any lawsuit or proceeding relating to or arising in any way from this Agreement or the matters contemplated hereby.

23. Corporate Opportunity. Executive shall submit to the CEO all material business, commercial, and investment opportunities or offers presented to Executive, or of which Executive becomes aware, at any time during the Employment Period, which opportunities relate to the Company's business ("Corporate Opportunities"). Unless approved by the CEO, during the Employment Period Executive shall not accept or pursue, directly or indirectly, any Corporate Opportunities on Executive's own behalf or for Executive's personal benefit or for the benefit of any Person other than the Company.

24. Executive's Cooperation. During the Employment Period and thereafter, Executive shall reasonably cooperate with the Company and its Subsidiaries and Affiliates in any internal investigation or administrative, regulatory, or judicial proceeding as reasonably requested by the Company or any Subsidiary or Affiliate (including, without limitation, Executive's being available to the Company and its Subsidiaries and Affiliates upon reasonable notice for interviews and factual investigations, appearing at the Company's or any Subsidiary's or Affiliate's request to give truthful and accurate testimony without requiring service of a subpoena or other legal process, volunteering to the Company and its Subsidiaries and Affiliates all pertinent information and turning over to the Company and its Subsidiaries and Affiliates all relevant documents which are or may come into Executive's possession, all at times and on schedules that are reasonably consistent with Executive's other permitted activities and commitments). In the event the Company or any Subsidiary or Affiliate requires Executive's

cooperation in accordance with this section, the Company shall pay Executive a per diem reasonably determined by the CEO and reimburse Executive for reasonable expenses incurred in connection therewith (including reasonable transportation, lodging and meals, upon submission of receipts).

25. Nondisparagement. During the Employment Period and thereafter, Executive shall not make, publish, or solicit, or encourage others to make, publish, or solicit, any disparaging oral or written statements, comments, announcements, or remarks concerning the Company or its Subsidiaries or Affiliates, or any of their respective directors, officers, or employees. Likewise, during the Employment Period and thereafter, the directors and officers of the Company shall not make, publish, or solicit, or encourage others to make, publish, or solicit, any disparaging oral or written statements, comments, announcements, or remarks concerning Executive. The foregoing shall not be violated by truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings).

* * *

IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement effective as of the date first written above but signed on the date(s) indicated below.

COMPANY:

CORE MOLDING TECHNOLOGIES, INC.

By:_________________________________

Name:

Title:

EXECUTIVE:

________________________________________

[Name]

Date:

EXHIBIT A

Definitions

"Affiliate" means any employer with which the Company would be considered a single employer under Section 414(b) or 414(c) of the Code (as defined below), applied using fifty percent (50%) as the percentage of ownership required under such Code sections, including (i) any Person (as defined below), any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with, such specified Person and (ii) any Person that is a natural Person, the

spouse, ancestors, or lineal descendants of such Person, any limited partnership or limited liability company controlled by such Person or such Person's spouse, ancestors, or lineal descendants or in which such Person or such Person's spouse, ancestors, or lineal descendants hold a majority interest, any trust established for the benefit of any of them and such Person's estate or legal representative.

"Cause" means, with respect to Executive, one or more of the following: (i) commission of, or indictment for, a felony, a misdemeanor where the potential penalty therefor includes jail-time or a crime involving moral turpitude; (ii) commission of an act or omission to act with respect to the Company or any of its Affiliates or Subsidiaries or any of their customers or suppliers involving dishonesty, disloyalty, or fraud; (iii) conduct that brings or is reasonably likely to bring the Company or its Affiliates or Subsidiaries negative publicity or into public disgrace, embarrassment or disrepute; (iv) repeated failure to perform duties as reasonably directed by the CEO; (v) gross negligence or willful misconduct with respect to the Company or any of its Affiliates or Subsidiaries; (vi) material breach of the Company's Code of Conduct as amended from time to time (it being agreed that, among other things, violation of the Company's policy on harassment, anti-bribery, anti-corruption and drug and alcohol-free workplace are all deemed material for purposes of this definition); or (vii) any breach by Executive of Section 6, 7, 8, 23 or 25 of this Agreement.With respect to subsection (iv) herein, "Cause" shall only exist if Executive fails to cure the alleged infraction within ten (10) days of receiving written notice from the Company.

"Change of Control" shall mean the occurrence of any of the following after the Effective Date: (a) one Person (or more than one Person acting as a group) acquires ownership of stock of the Company that, together with the stock held by such Person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company; (b) a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the Board before the date of appointment or election; or (c) the sale of all or substantially all of the Company's assets. Notwithstanding the foregoing, a Change of Control shall not occur unless such transaction constitutes a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the Company's assets under Section 409A.

"Code" means the Internal Revenue Code of 1986, as amended.

"Disability" means (i) Executive's inability, by virtue of ill health or other physical or mental illness, to perform substantially and continuously the duties assigned to Executive with reasonable accommodation for more than one hundred eighty (180) consecutive or non-consecutive days out of any consecutive 12-month period or (ii) if Executive is considered disabled under the Company's long-term disability insurance plan.

"Good Reason" means, with respect to Executive's resignation from employment, one or more of the following occurring within twenty-four (24) months following a Change of Control: (i) a material reduction in Executive's Base Salary, compensation or benefits; (ii) a material diminution in Executive's position and/or duties; (iii) a material breach of this Agreement by the Person or other entity then controlling the Company; (iv) the Company relocates its principal executive offices, or requires Executive to have his principal location of work changed, to any location which is in excess of fifty (50) miles from the location thereof immediately prior to the Change of Control, or (v) a disavowal of this Agreement by the Person or other entity then controlling the Company.With respect to subsections (i), (ii) or (iii) herein, "Good Reason" shall only exist if the Company fails to cure the alleged infraction within thirty (30) days of receiving written notice from Executive, which written notice must be given by Executive to the Company within six (6) months of the occurrence of such event.

"Person" means any natural person, corporation, partnership (whether general or limited), limited liability company, association, custodian, nominee, trust, estate, joint venture, governmental authority, or other individual or entity.

"Subsidiary" means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture, or other business entity of which more than fifty percent (50%) of the total voting power of shares of stock or other ownership interests entitled (without regard to the

occurrence of any contingency) to vote in the election of the Person (or, in the case of a partnership, limited liability company, or other similar entity, control of the general partnership, managing member, or similar interests) or Persons (whether directors, managers, trustees, or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof.

EX-31.A

Exhibit 31(a)

SECTION 302 CERTIFICATION

I, David L. Duvall, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Core Molding Technologies, Inc.;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2021

/s/ David L. Duvall

David L. Duvall

President, Chief Executive Officer, and Director

EX-31.B

Exhibit 31(b)

SECTION 302 CERTIFICATION

I, John P. Zimmer, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Core Molding Technologies, Inc.;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2021

/s/ John P. Zimmer

John P. Zimmer

Vice President, Secretary, Treasurer and Chief Financial Officer

EX-32.A

Exhibit 32(a)

CORE MOLDING TECHNOLOGIES, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Core Molding Technologies, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David L. Duvall, President, Chief Executive Officer, and Director of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ David L. Duvall

David L. Duvall

President, Chief Executive Officer, and Director

August 6, 2021

EX-32.B

Exhibit 32(b)

CORE MOLDING TECHNOLOGIES, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Core Molding Technologies, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John P. Zimmer, Vice President, Secretary, Treasurer, and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John P. Zimmer

John P. Zimmer

Vice President, Secretary, Treasurer and Chief Financial Officer

August 6, 2021

XML

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 05, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-12505
Entity Registrant Name	CORE MOLDING TECHNOLOGIES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1481870
Entity Address, Address Line One	800 Manor Park Drive
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43228-0183
City Area Code	614
Local Phone Number	870-5000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01
Security Exchange Name	NYSEAMER
Trading Symbol	CMT
Entity Common Stock, Shares Outstanding (in shares)		8,484,477
Entity Central Index Key	0001026655
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Net sales	$ 80,461	$ 37,806	$ 153,290	$ 101,830
Cost of sales	66,725	34,903	126,836	88,161
Gross margin	13,736	2,903	26,454	13,669
Selling, general and administrative expense	7,563	4,109	14,935	10,614
Operating income (loss)	6,173	(1,206)	11,519	3,055
Other income and expense
Interest expense	584	1,197	1,163	2,371
Net periodic post-retirement benefit	(40)	(20)	(80)	(40)
Total other expense	544	1,177	1,083	2,331
Income (loss) before taxes	5,629	(2,383)	10,436	724
Income tax expense (benefit)	1,543	(111)	2,894	(4,965)
Net Income (Loss) Attributable to Parent, Total	$ 4,086	$ (2,272)	$ 7,542	$ 5,689
Net income (loss) per common share:
Basic (in USD per share)	$ 0.48	$ (0.29)	$ 0.89	$ 0.69
Diluted (in USD per share)	$ 0.48	$ (0.29)	$ 0.89	$ 0.69

XML

Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net income (loss)	$ 4,086,000	$ (2,272,000)	$ 7,542,000	$ 5,689,000
Post retirement benefit plan adjustments:
Amortization of net actuarial loss	44,000	45,000	87,000	90,000
Amortization of prior service credits	(124,000)	(124,000)	(248,000)	(248,000)
Income tax benefit	16,000	16,000	33,000	33,000
Comprehensive income (loss)	4,022,000	(1,659,000)	7,414,000	4,321,000
Foreign currency hedging derivatives:
Foreign currency hedging derivatives:
Unrealized hedge gain (loss)	0	803,000	0	(871,000)
Income tax benefit (expense)	0	(174,000)	0	186,000
Interest rate swaps:
Foreign currency hedging derivatives:
Unrealized hedge gain (loss)	0	61,000	0	(722,000)
Income tax benefit (expense)	$ 0	$ (14,000)	$ 0	$ 164,000

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 5,596	$ 4,131
Accounts receivable, net	44,654	27,584
Inventories, net	22,039	18,360
Income tax receivable	2,504	2,026
Prepaid expenses and other current assets	3,989	4,377
Total current assets	78,782	56,478
Right of use asset	3,985	2,754
Property, plant and equipment, net	74,613	74,052
Goodwill	17,376	17,376
Intangibles, net	10,542	11,516
Other non-current assets	3,132	3,332
Total Assets	188,430	165,508
Current liabilities:
Current portion of long-term debt	3,352	2,535
Revolving debt	200	420
Accounts payable	26,423	16,994
Taxes payable	2,209	2,613
Contract liability	5,367	1,319
Compensation and related benefits	9,140	8,305
Accrued other liabilities	4,998	3,809
Total current liabilities	51,689	35,995
Other non-current liabilities	3,648	2,560
Long-term debt	23,243	25,198
Post retirement benefits liability	7,747	7,823
Total Liabilities	86,327	71,576
Commitments and Contingencies	0	0
Stockholders’ Equity:
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at June 30, 2021 and December 31, 2020	0	0
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares 8,040,748 at June 30, 2021 and 7,980,516 at December 31, 2020	80	80
Paid-in capital	36,931	36,127
Accumulated other comprehensive income, net of income taxes	$ 1,247	$ 1,375
Treasury stock (in shares)	3,814,802	3,810,929
Treasury stock - at cost, 3,814,802 shares at June 30, 2021 and 3,810,929 shares at December 31, 2020	$ (28,568)	$ (28,521)
Retained earnings	92,413	84,871
Total Stockholders’ Equity	102,103	93,932
Total Liabilities and Stockholders’ Equity	$ 188,430	$ 165,508

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares outstanding (in shares)	8,040,748	7,980,516
Treasury stock (in shares)	3,814,802	3,810,929

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Consolidated Statement of Stockholders' Equity - USD ($)	Total	Common Stock Outstanding	Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income Foreign currency hedging derivatives:	Accumulated Other Comprehensive Income Interest rate swaps:	Treasury Stock	Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2019		7,877,945
Beginning Balance at Dec. 31, 2019	$ 84,426,000	$ 79,000	$ 34,772,000	$ 1,370,000			$ (28,501,000)	$ 76,706,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	5,689,000							5,689,000
Change in post retirement benefits, net of tax	(125,000)			(125,000)
Gain (loss) on derivatives					$ (685,000)	$ (558,000)
Restricted stock vested (in shares)		87,344
Restricted stock vested	1,000	$ 1,000
Share-based compensation	704,000		704,000
Ending Balance (in shares) at Jun. 30, 2020		7,965,289
Ending Balance at Jun. 30, 2020	89,452,000	$ 80,000	35,476,000	2,000			(28,501,000)	82,395,000
Beginning Balance (in shares) at Mar. 31, 2020		7,882,716
Beginning Balance at Mar. 31, 2020	90,722,000	$ 79,000	35,088,000	(611,000)			(28,501,000)	84,667,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(2,272,000)							(2,272,000)
Change in post retirement benefits, net of tax	(63,000)			(63,000)
Gain (loss) on derivatives					$ 629,000	$ 47,000
Restricted stock vested (in shares)		82,573
Restricted stock vested	1,000	$ 1,000
Share-based compensation	388,000		388,000
Ending Balance (in shares) at Jun. 30, 2020		7,965,289
Ending Balance at Jun. 30, 2020	$ 89,452,000	$ 80,000	35,476,000	2,000			(28,501,000)	82,395,000
Beginning Balance (in shares) at Dec. 31, 2020	7,980,516	7,980,516
Beginning Balance at Dec. 31, 2020	$ 93,932,000	$ 80,000	36,127,000	1,375,000			(28,521,000)	84,871,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	7,542,000							7,542,000
Change in post retirement benefits, net of tax	(128,000)			(128,000)
Purchase of treasury stock	(47,000)						(47,000)
Restricted stock vested (in shares)		60,232
Restricted stock vested	0	$ 0
Share-based compensation	$ 804,000		804,000
Ending Balance (in shares) at Jun. 30, 2021	8,040,748	8,040,748
Ending Balance at Jun. 30, 2021	$ 102,103,000	$ 80,000	36,931,000	1,247,000			(28,568,000)	92,413,000
Beginning Balance (in shares) at Mar. 31, 2021		7,987,800
Beginning Balance at Mar. 31, 2021	97,595,000	$ 80,000	36,445,000	1,311,000			(28,568,000)	88,327,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	4,086,000							4,086,000
Change in post retirement benefits, net of tax	(64,000)			(64,000)
Restricted stock vested (in shares)		52,948
Restricted stock vested	0	$ 0
Share-based compensation	$ 486,000		486,000
Ending Balance (in shares) at Jun. 30, 2021	8,040,748	8,040,748
Ending Balance at Jun. 30, 2021	$ 102,103,000	$ 80,000	$ 36,931,000	$ 1,247,000			$ (28,568,000)	$ 92,413,000

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Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income tax benefit	$ 16,000	$ 16,000	$ 33,000	$ 33,000
Foreign currency hedging derivatives:
Tax benefit, hedge	0	(174,000)	0	186,000
Interest rate swaps:
Tax benefit, hedge	$ 0	$ (14,000)	$ 0	$ 164,000

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Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net Income (Loss) Attributable to Parent	$ 7,542,000	$ 5,689,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,161,000	5,588,000
Deferred income tax	0	517,000
Share-based compensation	804,000	704,000
Losses (gains) on foreign currency translation	188,000	(45,000)
Change in operating assets and liabilities:
Accounts receivable	(17,070,000)	10,842,000
Inventories	(3,679,000)	5,457,000
Prepaid and other assets	110,000	(3,667,000)
Accounts payable	9,119,000	(7,910,000)
Accrued and other liabilities	5,557,000	1,438,000
Post retirement benefits liability	(236,000)	(130,000)
Net cash provided by operating activities	8,496,000	18,483,000
Cash flows from investing activities:
Purchase of property, plant and equipment	(5,387,000)	(1,644,000)
Net cash used in investing activities	(5,387,000)	(1,644,000)
Cash flows from financing activities:
Gross repayments on revolving line of credit	(9,507,000)	(59,357,000)
Gross borrowings on revolving line of credit	9,287,000	47,349,000
Payments related to the purchase of treasury stock	(47,000)	0
Payment of deferred loan costs	(2,000)	0
Proceeds from Bank Debt	0	175,000
Payment of principal on term loans	(1,375,000)	(2,258,000)
Net cash used in financing activities	(1,644,000)	(14,091,000)
Net change in cash and cash equivalents	1,465,000	2,748,000
Cash and cash equivalents at beginning of period	4,131,000	1,856,000
Cash and cash equivalents at end of period	5,596,000	4,604,000
Cash paid for:
Interest	935,000	2,377,000
Income taxes	3,503,000	302,000
Non-cash investing activities:
Fixed asset purchases in accounts payable	$ 99,000	$ 146,000

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Basis of Presentation

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States of America for interim reporting, which are less than those required for annual reporting. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (all of which are normal and recurring in nature) necessary to present fairly the financial position of Core Molding Technologies, Inc. and its subsidiaries (“Core Molding Technologies” or the “Company”) at June 30, 2021, and the results of operations and cash flows for the six months ended June 30, 2021. The “Notes to Consolidated Financial Statements” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, should be read in conjunction with these consolidated financial statements.

Core Molding Technologies and its subsidiaries operate in the composites market as one operating segment as a molder of thermoplastic and thermoset structural products. The Company's operating segment consists of one reporting unit. The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, automobiles, marine, construction and other commercial markets. The Company offers customers a wide range of manufacturing processes to fit various program volume and investment requirements. These processes include compression molding of sheet molding compound ("SMC"), resin transfer molding ("RTM"), liquid molding of dicyclopentadiene ("DCPD"), spray-up and hand-lay-up, direct long-fiber thermoplastics ("D-LFT") and structural foam and structural web injection molding ("SIM"). Core Molding Technologies has its headquarters in Columbus, Ohio, and operates seven production facilities in Columbus and Batavia, Ohio; Gaffney, South Carolina; Winona, Minnesota; Matamoros and Escobedo, Mexico; and Cobourg, Ontario, Canada. All production facilities produce structural composite products.

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Critical Accounting Policies and Estimates

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Critical Accounting Policies and Estimates

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements.

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates, due to the uncertainty around the magnitude and duration of the COVID-19 pandemic, as well as other factors.

Revenue Recognition: The Company recognizes revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of thermoplastic and thermoset structural products. Revenue from product sales is generally recognized as products are shipped, as the Company transfers title and risk of ownership to the customer and is entitled to payment. In limited circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes title and risk of ownership at the Company's production facility.

Tooling revenue is earned from manufacturing tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over time. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools.

Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs

incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.

Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company recorded an allowance for doubtful accounts of $58,000 and $41,000 at June 30, 2021 and December 31, 2020, respectively.

Management also records an allowance for estimated customer chargebacks for returns, price discounts and adjustments, premium freight and expediting costs and customer production line disruption costs resulting from late deliveries. At times, customers have asserted a right to significant production line disruption charges to recover damages as a result of late delivery. The Company typically works with its customers to minimize disruption charges, validate damages and negotiate resolution. The Company records accruals for customer chargebacks when a valid charge is probable and the amount of the charge can be reasonably estimated. Should customer chargebacks fluctuate from the estimated amounts, additional allowances may be necessary. The Company reduced accounts receivable for chargebacks by $440,000 at June 30, 2021 and $179,000 at December 31, 2020.

Inventories: Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $252,000 at June 30, 2021 and $546,000 at December 31, 2020.

Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $46,000 at June 30, 2021, and $554,000 at December 31, 2020. Contract assets are generally classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the six months ended June 30, 2021, the Company recognized no impairments on contract assets. For the six months ended June 30, 2021, the Company recognized $3,107,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2020.

Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more likely than not to realize deferred tax benefits through the generation of future taxable income. For more information, refer to Note 11, "Income Taxes", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates whether impairment exists for property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There was no impairment of the Company's long-lived assets for the six months ended June 30, 2021 or June 30, 2020.

Goodwill: The purchase consideration of acquired businesses have been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment.

The annual impairment tests of goodwill may be completed through qualitative assessments; however the, Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period.

Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, and

capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a quantitative approach.

There were no indicators of impairment for the six months ended June 30, 2021. The company also performed a qualitative analysis for the year end December 31, 2020 and determined that no impairment was needed for the year 2020.

Self-Insurance: The Company is self-insured with respect to Columbus and Batavia, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus and Batavia, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at June 30, 2021 and December 31, 2020 of $866,000 and $933,000, respectively.

Derivative Instruments: Derivative instruments are utilized to manage exposure to fluctuations in foreign currency exchange rates and interest rates on long term debt obligations. All derivative instruments are formally documented as cash flow hedges and are recorded at fair value at each reporting period. Gains and losses related to currency forward contracts and interest rate swaps are deferred and recorded as a component of Accumulated Other Comprehensive Income in the Consolidated Statement of Stockholders' Equity and then subsequently recognized in the Consolidated Statement of Operations when the hedged item affects net income. The ineffective portion of the change in fair value of a hedge, if any, is recognized in income. For additional information on derivative instruments, see Note 14, "Fair Value of Financial Instruments".

Post-retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. Core Molding Technologies had a liability for post retirement healthcare benefits based on actuarial computed estimates of $9,033,000 at June 30, 2021 and $9,109,000 at December 31, 2020.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2021

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

RECENT ACCOUNTING PRONOUNCEMENTS

Current expected credit loss (CECL)

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under SEC rules, until fiscal years beginning after December 15, 2022. We will adopt this ASU on its effective date of January 1, 2023. This ASU will have no material impact on our consolidated financial statements.

Facilitation of the Effects of Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The ASU provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate (e.g., LIBOR) reform if certain criteria are met, for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The ASU is effective as of March 12, 2020 through December 31, 2022. We will evaluate transactions or contract modifications occurring as a result of reference rate reform and determine whether to apply the optional guidance on an ongoing basis.

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Net Income Per Common Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Income Per Common Share

NET INCOME (LOSS) PER COMMON SHARE

Net income (loss) per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed similarly but includes the effect of the assumed exercise of dilutive stock appreciation rights and restricted stock under the treasury stock method.

On May 13, 2021, the Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan provides restricted stock award recipients voting rights equivalent to the Company's common stock and accrual of dividends but not receipt of dividends until all conditions or restrictions related to such award have been satisfied. Accordingly, the restricted shares are not considered participating shares. The 2006 Plan provides restricted shares award recipients voting rights equivalent to the Company’s common stock and accrual and receipt of dividends irrespective of any conditions or restrictions related to such award being satisfied. Accordingly, the restricted shares are considered a participating security and the Company is required to apply the two-class method to consider the impact of the restricted shares on the calculation of basic and diluted earnings per share.

The computation of basic and diluted net income (loss) per common share (in thousands, except for per share data) is as follows:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income (loss)	$	4,086	$	(2,272)	$	7,542	$	5,689
Less: net income allocated to participating securities	232		—		437		236
Net income (loss) available to common shareholders	$	3,854	$	(2,272)	$	7,105	$	5,453
Weighted average common shares outstanding — basic	8,002,000		7,916,000		7,994,000		7,899,000
Effect of weighted average dilutive securities	12,000		—		19,000		2,000
Weighted average common and potentially issuable common shares outstanding — diluted	8,014,000		7,916,000		8,013,000		7,901,000
Basic net income (loss) per common share	$	0.48	$	(0.29)	$	0.89	$	0.69
Diluted net income (loss) per common share	$	0.48	$	(0.29)	$	0.89	$	0.69

The computation of basic and diluted net income per participating share (in thousands, except for per share data) is as follows:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income allocated to participating securities	$	232	$	—	$	437	$	236
Weighted average participating shares outstanding — basic	482,000		—		491,000		342,000
Effect of dilutive securities on participating shares	—		—		—		—
Weighted average common and potentially issuable participating shares outstanding — diluted	482,000		—		491,000		342,000
Basic net income per participating share	$	0.48	$	—	$	0.89	$	0.69
Diluted net income per participating share	$	0.48	$	—	$	0.89	$	0.69

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Major Customers

6 Months Ended

Jun. 30, 2021

Concentration Risks, Types, No Concentration Percentage [Abstract]

Major Customers

MAJOR CUSTOMERS

The Company had five major customers during the six months ended June 30, 2021, Universal Forest Products, Inc. (“UFP”), Navistar, Inc. (“Navistar”), PACCAR, Inc. (“PACCAR”), BRP, Inc. (“BRP”), and Volvo Group North America, LLC (“Volvo”). Major customers are defined as customers whose sales individually consist of more than ten percent of total sales during any annual or interim reporting period in the current year. The loss of a significant portion of sales to these customers could have a material adverse effect on the business of the Company.

The following table presents sales revenue for the above-mentioned customers for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
UFP product sales	$	15,115	$	9,484	$	25,772	$	18,471
UFP tooling sales	—		—		—		—
Total UFP sales	15,115		9,484		25,772		18,471
Navistar product sales	10,969		6,500		20,906		17,166
Navistar tooling sales	—		1,088		306		1,186
Total Navistar sales	10,969		7,588		21,212		18,352
PACCAR product sales	10,830		3,167		20,184		11,116
PACCAR tooling sales	503		—		832		207
Total PACCAR sales	11,333		3,167		21,016		11,323
BRP product sales	10,420		2,206		18,989		9,453
BRP tooling sales	124		113		238		333
Total BRP sales	10,544		2,319		19,227		9,786
Volvo product sales	7,429		2,167		17,554		9,740
Volvo tooling sales	27		622		47		2,147
Total Volvo sales	7,456		2,789		17,601		11,887
Other product sales	24,354		12,323		44,846		31,831
Other tooling sales	690		136		3,616		180
Total other sales	25,044		12,459		48,462		32,011
Total product sales	79,117		35,847		148,251		97,777
Total tooling sales	1,344		1,959		5,039		4,053
Total sales	$	80,461	$	37,806	$	153,290	$	101,830

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Inventory

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventory

INVENTORY

Inventories, net consisted of the following (in thousands):

	June 30, 2021		December 31, 2020
Raw materials	$	16,010	$	11,640
Work in process	1,717		1,679
Finished goods	4,312		5,041
Total	$	22,039	$	18,360

Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage.

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Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

LEASES

The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to four years, some of which include options to extend the lease for five years. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued other liabilities and other non-current liabilities in the Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

The Company used the applicable incremental borrowing rate at implementation date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate. At each reporting period when there is a new lease initiated, the Company will utilize its incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities.

The components of lease expense were as follows (in thousands):

	Three Months Ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Operating lease cost	$	386	$	357	$	754	$	714
Total net lease cost	$	386	$	357	$	754	$	714

Other supplemental balance sheet information related to leases was as follows (in thousands):

	June 30, 2021		December 31, 2020
Operating leases:
Operating lease right of use assets	$	3,985	$	2,754
Total operating lease right of use assets	$	3,985	$	2,754
Current operating lease liabilities(A)	$	1,252	$	1,023
Noncurrent operating lease liabilities(B)	2,765		1,670
Total operating lease liabilities	$	4,017	$	2,693

(A)Current operating lease liabilities are included in accrued other liabilities on the Consolidated Balance Sheets.

(B)Noncurrent operating lease liabilities are included in other non-current liabilities on the Consolidated Balance Sheets.

The following table presents certain information related to lease terms and discount rates for leases as of June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Weighted average remaining lease term (in years):
Operating leases	4.0		3.5
Weighted average discount rate:
Operating leases	5.5	%	5.9	%

Other information related to leases were as follows (in thousands) :

	Six months ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases(C)	$	754	$	714

(C)Cash flow from operating leases included in prepaid and other assets on the Consolidated Statements of Cash Flows.

As of June 30, 2021, maturities of lease liabilities were as follows (in thousands):

	Operating Leases
2021 (remainder of year)	$	759
2022	1,168
2023	1,068
2024	1,074
2025 and beyond	629
Total lease payments	4,698
Less: imputed interest	(681)
Total lease obligations	4,017
Less: current obligations	(1,252)
Long-term lease obligations	$	2,765

As of December 31, 2020, maturities of lease liabilities were as follows (in thousands):

	Operating Leases
2021	$	1,215
2022	811
2023	706
2024	705
2025 and beyond	—
Total lease payments	3,437
Less: imputed interest	(744)
Total lease obligations	2,693
Less: current obligations	(1,023)
Long-term lease obligations	$	1,670

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Property, Plant & Equipment

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Property, Plant & Equipment

PROPERTY, PLANT & EQUIPMENT

Property, plant and equipment, net consisted of the following for the periods specified (in thousands):

	June 30, 2021		December 31, 2020
Property, plant and equipment	$	180,062	$	174,553
Accumulated depreciation	(105,449)		(100,501)
Property, plant and equipment — net	$	74,613	$	74,052

Property, plant, and equipment are recorded at cost, unless obtained through acquisition, then assets are recorded at estimated fair value at the date of acquisition. Depreciation is provided on a straight-line method over the estimated useful lives of the assets. The carrying amount of long-lived assets is evaluated annually to determine if an adjustment to the depreciation period or to the unamortized balance is warranted. Depreciation expense for the three months ended June 30, 2021 and 2020 was $2,461,000 and $2,216,000, respectively. Depreciation expense for the six months ended June 30, 2021 and 2020 was $4,943,000 and $4,488,000, respectively. Amounts invested in capital additions in progress were $4,095,000 and $1,422,000 at June 30, 2021 and December 31, 2020, respectively. At June 30, 2021 and December 31, 2020, purchase commitments for capital expenditures in progress were $4,705,000 and $677,000, respectively.

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Goodwill and Intangibles

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

GOODWILL AND INTANGIBLES

Goodwill activity for the six months ended June 30, 2021 consisted of the following (in thousands):

Balance at December 31, 2020	$	17,376
Additions	—
Impairment	—
Balance at June 30, 2021	$	17,376

Intangibles, net at June 30, 2021 were comprised of the following (in thousands):

Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(63)	$	187
Trademarks	10 Years	1,610		(557)		1,053
Non-competition agreement	5 Years	1,810		(1,252)		558
Developed technology	7 Years	4,420		(2,183)		2,237
Customer relationships	10-12 Years	9,330		(2,823)		6,507
Total		$	17,420	$	(6,878)	$	10,542

Intangibles, net at December 31, 2020 were comprised of the following (in thousands):

Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(58)	$	192
Trademarks	10 Years	1,610		(476)		1,134
Non-competition agreement	5 Years	1,810		(1,071)		739
Developed technology	7 Years	4,420		(1,869)		2,551
Customer relationships	10-12 Years	9,330		(2,430)		6,900
Total		$	17,420	$	(5,904)	$	11,516

The aggregate intangible asset amortization expense was $487,000 for the three months ended June 30, 2021 and 2020.

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Post Retirement Benefits

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Post Retirement Benefits

POST RETIREMENT BENEFITS

The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Pension expense:
Multi-employer plan	$	232	$	145	$	421	$	391
Defined contribution plan	316		215		618		508
Total pension expense	548		360		1,039		899
Health and life insurance:
Interest cost	40		59		81		118
Amortization of prior service credits	(124)		(124)		(248)		(248)
Amortization of net loss	44		45		87		90
Net periodic benefit credit	(40)		(20)		(80)		(40)
Total post retirement benefits expense	$	508	$	340	$	959	$	859

The Company made payments of $683,000 to pension plans and $157,000 for post-retirement healthcare and life insurance during the six months ended June 30, 2021. For the remainder of 2021, the Company expects to make approximately $1,332,000 of pension plan payments, of which $772,000 was accrued at June 30, 2021. The Company also expects to make approximately $1,129,000 of post-retirement healthcare and life insurance payments for the remainder of 2021, all of which were accrued at June 30, 2021.

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Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

11. DEBT

Debt consists of the following (in thousands):

	June 30, 2021		December 31, 2020
Wells Fargo term loans payable	$	15,191	$	16,390
FGI term loans payable	12,988		13,148
Leaf Capital term loan payable	136		152
Total	28,315		29,690
Less deferred loan costs	(1,720)		(1,957)
Less current portion	(3,352)		(2,535)
Long-term debt	$	23,243	$	25,198

Term Loans

Wells Fargo Term Loans

On October 27, 2020, the Company entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, lead arranger and book runner, and the lenders party thereto (the “Lenders”). Pursuant to the terms of the Credit Agreement, the Lenders made available to the Company secured term loans (the “WF Term Loans”) in the maximum aggregate principal amount of $18,500,000 ($16,790,000 of which was advanced to the Company on October 28, 2020). The proceeds from the WF Term Loans were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the financing.

At the option of the Company, the WF Term Loans bears interest at a per annum rate equal to LIBOR plus a margin of 300 basis points or base rate plus a margin of 200 basis points. LIBOR rate means the greater of (a) 0.75% per annum and (b) the per annum published LIBOR rate for interest periods of one, three or six months as chosen by the Company. Base rate is the greater of (a) 1.0% per annum, (b) the Federal Funds Rate plus 0.5%, (c) LIBOR Rate plus 100 basis or (d) prime rate. The weighted average interest rate was 3.77% as of June 30, 2021.

The WF Term Loans are to be repaid in monthly installments of $200,000 plus interest, with the remaining outstanding balance due on November 30, 2024, subject to certain optional and mandatory repayment terms. The Company’s obligations under the WF Term Loans are unconditionally guaranteed by each of the Company’s U.S. and Canadian subsidiaries, with such obligations of the Company and such subsidiaries being secured by a lien on substantially all of their U.S. and Canadian assets.

The WF Term Loans contains reporting, indebtedness, and financial covenants. The Company is in compliance with its covenants as of June 30, 2021.

Voluntary prepayments of amounts outstanding under the WF Term Loans are permitted at any time without premium or penalty. To the extent applicable, LIBOR breakage fees may be charged in connection with any prepayment.

FGI Equipment Finance LLC Term Loan

On October 20, 2020, the Company entered into a Master Security Agreement and a Promissory Note, among FGI Equipment Finance LLC, (“FGI”) the Company as debtor, and each of Core Composites Corporation, a subsidiary of the Company organized in Delaware, and CC HPM, S. de R.L. de C.V., a subsidiary of the Company organized in Mexico, as guarantors, the principal amount of $13,200,000 (the “FGI Term Loan”). On October 27, 2020, FGI advanced to the Company $12,000,000 which proceeds were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the transactions, and $1,200,000 which proceeds were used to fund a security deposit to be held by FGI. Interest on the FGI Term Loan is a fixed rate of 8.25% and is payable monthly. The security deposit of $1,200,000 is included in other assets on the Consolidated Balance Sheets.

Following the advance of funds by FGI, the FGI Term Loan is to be repaid in monthly principal and interest installments of $117,000 for the first 12 months, $246,000 for the subsequent 59 months and $1,446,000 due on October 31, 2026, subject to certain optional and mandatory repayment terms. The Company’s obligations under the Master Security Agreement are secured by certain machinery and equipment of the guarantors located in Mexico, and real property of Core Composites de Mexico, S. de R.L. de C.V.,a subsidiary of the Company organized in Mexico, located in Matamoros, Mexico.

The Company may prepay in full or in part (but not less than the amount equal to 20% of the original principal amount of the loan) outstanding amounts before they are due on any scheduled Payment Date upon at least thirty (30) days’ prior written notice. The Company will pay a “Prepayment Fee” in an amount equal to an additional sum equal to the following percentage of the principal amount to be prepaid for prepayments occurring in the indicated period: four percent (4.0%) (for prepayments occurring prior to the first anniversary of the FGI Term Loan); three percent (3.0%) (for prepayments occurring on the first anniversary of the FGI Term Loan until the second anniversary of the FGI Term Loan); two percent (2.0%) (for prepayments occurring on and after the second anniversary of the FGI Term Loan and prior to the third anniversary of the Loan ); and one percent (1.0%) (for prepayments occurring any time thereafter).

Leaf Capital Funding

On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment. The parties agreed to a fixed interest rate of 5.5% and a term of 60 months.

Revolving Loans

Wells Fargo Revolving Loan

On October 27, 2020, the Company entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, lead arranger and book runner, and the lenders party thereto (the “Lenders”). Pursuant to the terms of the Credit Agreement, the Lenders made available to the Company a revolving loan commitment (the “WF Revolving Loan”) of $25,000,000 ($8,745,000 of which was advanced to the Company on October 28, 2020). The proceeds from the WF Revolving Loan were used to pay off the Company’s existing outstanding indebtedness with KeyBank National Association, and to pay certain fees and expenses associated with the financing.

The Credit Agreement also makes available to the Company an incremental revolving commitment in the maximum amount of $10,000,000 at the Company’s option at any time during the three-year period following the closing.

The borrowing availability under the WF Revolving Loan is the lesser of (a) the loan commitment of $25,000,000 or (b) the sum of 90% of eligible investment grade accounts receivable, 85% of non-investment grade eligible accounts receivable and 65% of eligible inventory.

At the option of the Company, the WF Revolving Loan bears interest at a per annum rate equal to LIBOR plus a margin of 200 to 250 basis points or base rate plus a margin of 100 to 150 basis points, with the margin rate being based on the excess

availability amount under the line of credit. LIBOR rate means the greater of (a) 0.75% per annum and (b) the per annum published LIBOR rate for interest periods of one, three or six months as chosen by the Company. Base rate is the greater of (a) 1.0% per annum, (b) the Federal Funds Rate plus 0.5%, (c) LIBOR Rate plus 100 basis and (d) prime rate. The weighted average interest rate was 4.25% as of June 30, 2021.

The WF Revolving Loan commitment terminates, and all outstanding borrowings thereunder must be repaid, by November 30, 2024. The Company has $23,731,000 of available rate revolving loans of which $200,000 is outstanding as of June 30, 2021.

The WF Revolving Loan contains the same covenants as the WF Term Loans.

Wells Fargo Bank will issue up to $2,000,000 of Letters of Credit in accordance with the terms of the Credit Agreement upon the Company’s request. As of June 30, 2021, the Company had one Letter of Credit outstanding for $160,000.

KeyBank Loan

On June 30, 2020, the Company had a term loan and revolving loan balance of $36,000,000 and $167,000 with KeyBank National Association, respectively. The Company’s term loan and revolving loan had variable interest rate of 8.00% at June 30, 2020.

Bank Covenants

The Company is required to meet certain financial covenants included in the Credit Agreement with respect to fixed coverage charge ratio. As of June 30, 2021, the Company was in compliance with its financial covenants associated with the loans made under the Credit Agreement as described above.

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company’s Consolidated Balance Sheets include a net non-current deferred tax asset of $937,000 for the Canadian and Mexican tax jurisdictions and a net non-current deferred tax liability of $883,000 for the U.S. tax jurisdiction at June 30, 2021. The non-current deferred tax asset is classified in other non-current assets and non-current deferred tax liabilities are in other non-current liabilities. The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more likely than not to realize deferred tax benefits through the generation of future taxable income. As of June 30, 2021 and December 31, 2020, the Company had no liability for unrecognized tax benefits. The Company does not anticipate that unrecognized tax benefits will significantly change within the next twelve months.

Income tax expense for the six months ended June 30, 2021 is estimated to be $2,894,000, approximately 27.7% of income before income taxes. Income tax benefit for the six months ended June 30, 2020 was estimated to be $4,965,000, approximately 686% of income before income taxes.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was enacted in response to the COVID-19 pandemic, and among other things, provides tax relief to businesses. Tax provisions of the CARES Act include the deferral of certain payroll taxes, relief for retaining employees, and other provisions, including allowing net operating losses to be carried back five years versus an indefinite carryforward. An income tax benefit of $5,638,000 was realized in the first quarter of 2020. The income tax benefit consists of the reversal of the full valuation allowance against net deferred tax assets in the United States for approximately $3,267,000. The income tax benefit also consists of a rate benefit of $2,371,000 based on the losses being carried back to years where the Company paid tax at 34% compared to the valuation of the losses being recorded at the 21% current U.S. statutory tax rate.

The Company files income tax returns in the U.S., Mexico, Canada and various state jurisdictions. The Company is not subject to U.S. federal and state income tax examinations by tax authorities for years prior to 2017, not subject to Mexican income tax examinations by Mexican authorities for years prior to 2015 and not subject to Canadian tax examinations by Canadian authorities for years prior to 2018.

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Stock Based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock Based Compensation

STOCK BASED COMPENSATION

On May 13, 2021, The Company's shareholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan allows for grants to employees, officers, non-employee directors, consultants, independent contractors and advisors of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards (“stock awards”) up to an aggregate of 924,823 awards. Awards can be granted under the 2021 Plan through the earlier of May 13, 2031, or the date the maximum number of available awards under the 2021 Plan have been granted. No new awards may be granted from the 2006 Plan.

Awards under the 2021 Plan vest over one to three years and shares previously awarded and currently unvested under the 2006 Plan vest over three years. Shares granted under both the 2006 and 2021 Plans vest upon the date of a participant’s death, disability or change in control.

Restricted Stock

The Company grants shares of its common stock to certain directors, officers, key managers and employees in the form of unvested stock and units (“Restricted Stock”). These awards are recorded at the market value of the Company's common stock on the date of issuance and amortized ratably as compensation expense over the applicable vesting period, which is typically three years. The Company adjusts compensation expense for actual forfeitures, as they occur.

The following summarizes the status of Restricted Stock and changes during the six months ended June 30, 2021:

	Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2020	507,835	$	6.25
Granted	250,635	13.74
Vested	(64,106)	7.86
Forfeited	(15,964)	5.30
Unvested balance at June 30, 2021	678,400	$	8.85

At June 30, 2021 and 2020, there was $4,783,000 and $2,249,000, respectively, of total unrecognized compensation expense, related to Restricted Stock grants. That cost is expected to be recognized over the weighted-average period of 2.6 years. Total compensation cost related to Restricted Stock grants for the three months ended June 30, 2021 and 2020 was $456,000 and $357,000, respectively. Total compensation cost related to Restricted Stock grants for the six months ended June 30, 2021 and 2020 was $745,000 and $1,121,000, respectively, all of which was recorded to selling, general and administrative expense.

During the six months ended June 30, 2021, employees surrendered 3,874 shares of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted awards. No shares were surrendered for the six months ended June 30, 2020.

Stock Appreciation Rights

As part of the Company's 2020 annual grant, Stock Appreciation Rights ("SARs") were granted with a grant price of $10. These awards have a contractual term of five years and vest ratably over a period of three years or immediately vest if the recipient is over 65 of age. These awards are valued using the Black-Scholes option pricing model.

A summary of the Company's stock appreciation rights activity for the six months ended June 30, 2021 is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2020	180,925	$	2.57
Granted	—	—
Exercised	—	—
Forfeited	(3,909)	2.57
Outstanding at end of the period ended June 30, 2021	177,016	$	2.57
Exercisable at end of the period ended June 30, 2021	124,801	$	2.57

The average remaining contractual term for those SARs outstanding at June 30, 2021 is 2.8 years, with aggregate intrinsic value of $961,000. At June 30, 2021 and 2020, there was $112,000 and $260,000, respectively, of total unrecognized compensation expense, related to SARs. That cost is expected to be recognized over the weighted- average period of 0.8 years. Total compensation cost related to SARs for the three months ended June 30, 2021 and 2020 was $31,000 and $31,000, respectively. Total compensation cost related to SARs for the six months ended June 30, 2021 and 2020 was $60,000 and $55,000, respectively, all of which was recorded to selling, general and administrative expense.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This guidance provides a fair value framework that requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.

The three levels are defined as follows:

Level 1 -Quoted prices in active markets for identical assets and liabilities.

Level 2 -Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.

Level 3 -Significant unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability.

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, debt, interest rate swaps and foreign currency derivatives. Cash and cash equivalents, accounts receivable and accounts payable carrying values as of June 30, 2021 and December 31, 2020 approximate fair value due to the short-term maturities of these financial instruments. The carrying amounts of WF Term Loan and WF Revolving Loan approximate fair value as of June 30, 2021 and December 31, 2020 due to the short term nature of the underlying variable rate LIBOR agreements. The FGI Term Loan approximate fair value as of June 30, 2021 and December 31, 2020 due to immaterial movement in interest rates since the Company entered into the Promissory Note on October 20, 2020.

The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the three months ended June 30, 2021 and 2020 (in thousands):

Derivatives in subtopic 815-20 Cash Flow Hedging Relationship	Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income(A)	Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
	2021		2020			2021		2020
Foreign exchange contracts	$	—	$	142	Cost of goods sold	$	—	$	526
					Selling, general and administrative expense	$	—	$	68
Interest rate swaps	$	—	$	(915)	Interest expense	$	—	$	(1,620)

The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the six months ended June 30, 2021 and 2020 (in thousands):

Derivatives in subtopic 815-20 Cash Flow Hedging Relationship	Amount of Unrealized Loss Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Loss Reclassified from Accumulated Other Comprehensive Income (A)	Amount of Realized Loss Reclassified from Accumulated Other Comprehensive Income
	2021		2020			2021		2020
Foreign exchange contracts	$	—	$	(532,000)	Cost of goods sold	$	—	$	(306,000)
					Selling, general and administrative expense	$	—	$	(34,000)
Interest rate swaps	$	—	$	(528,000)	Interest expense	$	—	$	(194,000)

(A)The foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income is allocated to cost of goods sold and selling, general and administrative expense based on the percentage of foreign currency spend.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents changes in Accumulated Other Comprehensive Income, net of tax, for the six months ended June 30, 2021 and 2020 (in thousands):

2020:	Derivative Hedging Activities		Post Retirement Benefit Plan Items(A)		Accumulated Other Comprehensive Income
Balance at December 31, 2019	$	(191)	$	1,561	$	1,370
Other comprehensive loss before reclassifications	(1,060)		—		(1,060)
Amounts reclassified from accumulated other comprehensive income	(533)		(158)		(691)
Income tax benefit	350		33		383
Balance at June 30, 2020	$	(1,434)	$	1,436	$	2
2021:
Balance at December 31, 2020	$	—	$	1,375	$	1,375
Other comprehensive income before reclassifications	—		—		—
Amounts reclassified from accumulated other comprehensive income	—		(161)		(161)
Income tax benefit	—		33		33
Balance at June 30, 2021	$	—	$	1,247	$	1,247

(A)The effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income is included in other income and expense on the Consolidated Statements of Operations. These Accumulated Other Comprehensive Income components are included in the computation of net periodic benefit cost (see Note 10, "Post Retirement Benefits" for additional details). The tax effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income is included in income tax expense on the Consolidated Statements of Operations

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Critical Accounting Policies and Estimates (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements.

Use of Estimates

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates, due to the uncertainty around the magnitude and duration of the COVID-19 pandemic, as well as other factors.

Revenue Recognition

Revenue Recognition: The Company recognizes revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of thermoplastic and thermoset structural products. Revenue from product sales is generally recognized as products are shipped, as the Company transfers title and risk of ownership to the customer and is entitled to payment. In limited circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes title and risk of ownership at the Company's production facility.

Tooling revenue is earned from manufacturing tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over time. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools.

Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs

incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.

Accounts Receivable Allowances

Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company recorded an allowance for doubtful accounts of $58,000 and $41,000 at June 30, 2021 and December 31, 2020, respectively.

Management also records an allowance for estimated customer chargebacks for returns, price discounts and adjustments, premium freight and expediting costs and customer production line disruption costs resulting from late deliveries. At times, customers have asserted a right to significant production line disruption charges to recover damages as a result of late delivery. The Company typically works with its customers to minimize disruption charges, validate damages and negotiate resolution. The Company records accruals for customer chargebacks when a valid charge is probable and the amount of the charge can be reasonably estimated. Should customer chargebacks fluctuate from the estimated amounts, additional allowances may be necessary. The Company reduced accounts receivable for chargebacks by $440,000 at June 30, 2021 and $179,000 at December 31, 2020.

Inventories

Inventories: Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $252,000 at June 30, 2021 and $546,000 at December 31, 2020.

Contract Assets/Liabilities

Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $46,000 at June 30, 2021, and $554,000 at December 31, 2020. Contract assets are generally classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the six months ended June 30, 2021, the Company recognized no impairments on contract assets. For the six months ended June 30, 2021, the Company recognized $3,107,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2020.

Income Taxes

Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more likely than not to realize deferred tax benefits through the generation of future taxable income. For more information, refer to Note 11, "Income Taxes", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

Long-Lived Assets

Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates whether impairment exists for property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There was no impairment of the Company's long-lived assets for the six months ended June 30, 2021 or June 30, 2020.

Goodwill

Goodwill: The purchase consideration of acquired businesses have been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment.

The annual impairment tests of goodwill may be completed through qualitative assessments; however the, Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period.

Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, and

capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a quantitative approach.

There were no indicators of impairment for the six months ended June 30, 2021. The company also performed a qualitative analysis for the year end December 31, 2020 and determined that no impairment was needed for the year 2020.

Self-Insurance

Self-Insurance: The Company is self-insured with respect to Columbus and Batavia, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus and Batavia, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at June 30, 2021 and December 31, 2020 of $866,000 and $933,000, respectively.

Derivative Instruments

Derivative Instruments: Derivative instruments are utilized to manage exposure to fluctuations in foreign currency exchange rates and interest rates on long term debt obligations. All derivative instruments are formally documented as cash flow hedges and are recorded at fair value at each reporting period. Gains and losses related to currency forward contracts and interest rate swaps are deferred and recorded as a component of Accumulated Other Comprehensive Income in the Consolidated Statement of Stockholders' Equity and then subsequently recognized in the Consolidated Statement of Operations when the hedged item affects net income. The ineffective portion of the change in fair value of a hedge, if any, is recognized in income. For additional information on derivative instruments, see Note 14, "Fair Value of Financial Instruments".

Post-retirement Benefits

Post-retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. Core Molding Technologies had a liability for post retirement healthcare benefits based on actuarial computed estimates of $9,033,000 at June 30, 2021 and $9,109,000 at December 31, 2020.

New Accounting Pronouncements, Policy

Current expected credit loss (CECL)

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under SEC rules, until fiscal years beginning after December 15, 2022. We will adopt this ASU on its effective date of January 1, 2023. This ASU will have no material impact on our consolidated financial statements.

Facilitation of the Effects of Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The ASU provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate (e.g., LIBOR) reform if certain criteria are met, for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The ASU is effective as of March 12, 2020 through December 31, 2022. We will evaluate transactions or contract modifications occurring as a result of reference rate reform and determine whether to apply the optional guidance on an ongoing basis.

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Net Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Computation of basic and diluted net income per common share:

The computation of basic and diluted net income (loss) per common share (in thousands, except for per share data) is as follows:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income (loss)	$	4,086	$	(2,272)	$	7,542	$	5,689
Less: net income allocated to participating securities	232		—		437		236
Net income (loss) available to common shareholders	$	3,854	$	(2,272)	$	7,105	$	5,453
Weighted average common shares outstanding — basic	8,002,000		7,916,000		7,994,000		7,899,000
Effect of weighted average dilutive securities	12,000		—		19,000		2,000
Weighted average common and potentially issuable common shares outstanding — diluted	8,014,000		7,916,000		8,013,000		7,901,000
Basic net income (loss) per common share	$	0.48	$	(0.29)	$	0.89	$	0.69
Diluted net income (loss) per common share	$	0.48	$	(0.29)	$	0.89	$	0.69

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Net income allocated to participating securities	$	232	$	—	$	437	$	236
Weighted average participating shares outstanding — basic	482,000		—		491,000		342,000
Effect of dilutive securities on participating shares	—		—		—		—
Weighted average common and potentially issuable participating shares outstanding — diluted	482,000		—		491,000		342,000
Basic net income per participating share	$	0.48	$	—	$	0.89	$	0.69
Diluted net income per participating share	$	0.48	$	—	$	0.89	$	0.69

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Major Customers (Tables)

6 Months Ended

Jun. 30, 2021

Concentration Risks, Types, No Concentration Percentage [Abstract]

Schedule of Major Customers

The following table presents sales revenue for the above-mentioned customers for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
UFP product sales	$	15,115	$	9,484	$	25,772	$	18,471
UFP tooling sales	—		—		—		—
Total UFP sales	15,115		9,484		25,772		18,471
Navistar product sales	10,969		6,500		20,906		17,166
Navistar tooling sales	—		1,088		306		1,186
Total Navistar sales	10,969		7,588		21,212		18,352
PACCAR product sales	10,830		3,167		20,184		11,116
PACCAR tooling sales	503		—		832		207
Total PACCAR sales	11,333		3,167		21,016		11,323
BRP product sales	10,420		2,206		18,989		9,453
BRP tooling sales	124		113		238		333
Total BRP sales	10,544		2,319		19,227		9,786
Volvo product sales	7,429		2,167		17,554		9,740
Volvo tooling sales	27		622		47		2,147
Total Volvo sales	7,456		2,789		17,601		11,887
Other product sales	24,354		12,323		44,846		31,831
Other tooling sales	690		136		3,616		180
Total other sales	25,044		12,459		48,462		32,011
Total product sales	79,117		35,847		148,251		97,777
Total tooling sales	1,344		1,959		5,039		4,053
Total sales	$	80,461	$	37,806	$	153,290	$	101,830

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Inventory (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories, net consisted of the following (in thousands):

	June 30, 2021		December 31, 2020
Raw materials	$	16,010	$	11,640
Work in process	1,717		1,679
Finished goods	4,312		5,041
Total	$	22,039	$	18,360

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Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Components of lease expense

The components of lease expense were as follows (in thousands):

	Three Months Ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Operating lease cost	$	386	$	357	$	754	$	714
Total net lease cost	$	386	$	357	$	754	$	714

Supplemental Balance Sheet Information

Other supplemental balance sheet information related to leases was as follows (in thousands):

	June 30, 2021		December 31, 2020
Operating leases:
Operating lease right of use assets	$	3,985	$	2,754
Total operating lease right of use assets	$	3,985	$	2,754
Current operating lease liabilities(A)	$	1,252	$	1,023
Noncurrent operating lease liabilities(B)	2,765		1,670
Total operating lease liabilities	$	4,017	$	2,693

(A)Current operating lease liabilities are included in accrued other liabilities on the Consolidated Balance Sheets.

(B)Noncurrent operating lease liabilities are included in other non-current liabilities on the Consolidated Balance Sheets.

The following table presents certain information related to lease terms and discount rates for leases as of June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Weighted average remaining lease term (in years):
Operating leases	4.0		3.5
Weighted average discount rate:
Operating leases	5.5	%	5.9	%

Other information related to leases were as follows (in thousands) :

	Six months ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases(C)	$	754	$	714

(C)Cash flow from operating leases included in prepaid and other assets on the Consolidated Statements of Cash Flows.

Maturities of lease liabilities

As of June 30, 2021, maturities of lease liabilities were as follows (in thousands):

	Operating Leases
2021 (remainder of year)	$	759
2022	1,168
2023	1,068
2024	1,074
2025 and beyond	629
Total lease payments	4,698
Less: imputed interest	(681)
Total lease obligations	4,017
Less: current obligations	(1,252)
Long-term lease obligations	$	2,765

As of December 31, 2020, maturities of lease liabilities were as follows (in thousands):

	Operating Leases
2021	$	1,215
2022	811
2023	706
2024	705
2025 and beyond	—
Total lease payments	3,437
Less: imputed interest	(744)
Total lease obligations	2,693
Less: current obligations	(1,023)
Long-term lease obligations	$	1,670

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Property, Plant & Equipment (Tables)

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment, net consisted of the following for the periods specified (in thousands):

	June 30, 2021		December 31, 2020
Property, plant and equipment	$	180,062	$	174,553
Accumulated depreciation	(105,449)		(100,501)
Property, plant and equipment — net	$	74,613	$	74,052

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Goodwill and Intangibles (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill activity

Goodwill activity for the six months ended June 30, 2021 consisted of the following (in thousands):

Balance at December 31, 2020	$	17,376
Additions	—
Impairment	—
Balance at June 30, 2021	$	17,376

Schedule of Intangible assets

Intangibles, net at June 30, 2021 were comprised of the following (in thousands):

Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(63)	$	187
Trademarks	10 Years	1,610		(557)		1,053
Non-competition agreement	5 Years	1,810		(1,252)		558
Developed technology	7 Years	4,420		(2,183)		2,237
Customer relationships	10-12 Years	9,330		(2,823)		6,507
Total		$	17,420	$	(6,878)	$	10,542

Intangibles, net at December 31, 2020 were comprised of the following (in thousands):

Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(58)	$	192
Trademarks	10 Years	1,610		(476)		1,134
Non-competition agreement	5 Years	1,810		(1,071)		739
Developed technology	7 Years	4,420		(1,869)		2,551
Customer relationships	10-12 Years	9,330		(2,430)		6,900
Total		$	17,420	$	(5,904)	$	11,516

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Post Retirement Benefits (Tables)

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Schedule of Post Retirement Benefit Plans

The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Pension expense:
Multi-employer plan	$	232	$	145	$	421	$	391
Defined contribution plan	316		215		618		508
Total pension expense	548		360		1,039		899
Health and life insurance:
Interest cost	40		59		81		118
Amortization of prior service credits	(124)		(124)		(248)		(248)
Amortization of net loss	44		45		87		90
Net periodic benefit credit	(40)		(20)		(80)		(40)
Total post retirement benefits expense	$	508	$	340	$	959	$	859

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Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule Of Long-term debt

Debt consists of the following (in thousands):

	June 30, 2021		December 31, 2020
Wells Fargo term loans payable	$	15,191	$	16,390
FGI term loans payable	12,988		13,148
Leaf Capital term loan payable	136		152
Total	28,315		29,690
Less deferred loan costs	(1,720)		(1,957)
Less current portion	(3,352)		(2,535)
Long-term debt	$	23,243	$	25,198

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Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

The status of Restricted Stock and changes

The following summarizes the status of Restricted Stock and changes during the six months ended June 30, 2021:

	Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2020	507,835	$	6.25
Granted	250,635	13.74
Vested	(64,106)	7.86
Forfeited	(15,964)	5.30
Unvested balance at June 30, 2021	678,400	$	8.85

Schedule of stock appreciation rights activity

A summary of the Company's stock appreciation rights activity for the six months ended June 30, 2021 is as follows:

	Number of Shares	Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2020	180,925	$	2.57
Granted	—	—
Exercised	—	—
Forfeited	(3,909)	2.57
Outstanding at end of the period ended June 30, 2021	177,016	$	2.57
Exercisable at end of the period ended June 30, 2021	124,801	$	2.57

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income (Loss)

The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the three months ended June 30, 2021 and 2020 (in thousands):

Derivatives in subtopic 815-20 Cash Flow Hedging Relationship	Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income(A)	Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
	2021		2020			2021		2020
Foreign exchange contracts	$	—	$	142	Cost of goods sold	$	—	$	526
					Selling, general and administrative expense	$	—	$	68
Interest rate swaps	$	—	$	(915)	Interest expense	$	—	$	(1,620)

The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the six months ended June 30, 2021 and 2020 (in thousands):

Derivatives in subtopic 815-20 Cash Flow Hedging Relationship	Amount of Unrealized Loss Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Loss Reclassified from Accumulated Other Comprehensive Income (A)	Amount of Realized Loss Reclassified from Accumulated Other Comprehensive Income
	2021		2020			2021		2020
Foreign exchange contracts	$	—	$	(532,000)	Cost of goods sold	$	—	$	(306,000)
					Selling, general and administrative expense	$	—	$	(34,000)
Interest rate swaps	$	—	$	(528,000)	Interest expense	$	—	$	(194,000)

(A)The foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income is allocated to cost of goods sold and selling, general and administrative expense based on the percentage of foreign currency spend.

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents changes in Accumulated Other Comprehensive Income, net of tax, for the six months ended June 30, 2021 and 2020 (in thousands):

2020:	Derivative Hedging Activities		Post Retirement Benefit Plan Items(A)		Accumulated Other Comprehensive Income
Balance at December 31, 2019	$	(191)	$	1,561	$	1,370
Other comprehensive loss before reclassifications	(1,060)		—		(1,060)
Amounts reclassified from accumulated other comprehensive income	(533)		(158)		(691)
Income tax benefit	350		33		383
Balance at June 30, 2020	$	(1,434)	$	1,436	$	2
2021:
Balance at December 31, 2020	$	—	$	1,375	$	1,375
Other comprehensive income before reclassifications	—		—		—
Amounts reclassified from accumulated other comprehensive income	—		(161)		(161)
Income tax benefit	—		33		33
Balance at June 30, 2021	$	—	$	1,247	$	1,247

(A)The effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income is included in other income and expense on the Consolidated Statements of Operations. These Accumulated Other Comprehensive Income components are included in the computation of net periodic benefit cost (see Note 10, "Post Retirement Benefits" for additional details). The tax effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income is included in income tax expense on the Consolidated Statements of Operations

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Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2021 reportingUnit segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments | segment	1
Number of reporting units | reportingUnit	1

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Critical Accounting Policies and Estimates (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Unusual or Infrequent Item, or Both [Line Items]
Allowance for doubtful accounts	$ 58,000		$ 41,000
Accounts receivable for chargebacks	440,000		179,000
Allowance for slow moving and obsolete inventory	252,000		546,000
Amount of revenue from contract liabilities related to open jobs outstanding	3,107,000
Impairment of long-lived assets	0	$ 0
Estimated liability for compensation claims	866,000		933,000
Liability for post retirement healthcare benefits	9,033,000		9,109,000
Contract with Customer, Asset, after Allowance for Credit Loss, Current	46,000		$ 554,000
Contract-based intangible assets
Unusual or Infrequent Item, or Both [Line Items]
Impairment on contract assets	$ 0

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Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net Income (Loss) Available to Common Stockholders
Net Income (Loss) Attributable to Parent	$ 4,086	$ (2,272)	$ 7,542	$ 5,689
Less: net income allocated to participating securities	232	0	437	236
Net income (loss) available to common shareholders	$ 3,854	$ (2,272)	$ 7,105	$ 5,453
Weighted average common shares outstanding - basic (in shares)	8,002,000	7,916,000	7,994,000	7,899,000
Effect of dilutive securities (in shares)	12,000	0	19,000	2,000
Weighted average common and potentially issuable common shares outstanding - diluted (in shares)	8,014,000	7,916,000	8,013,000	7,901,000
Basic net income per share (in dollars per share)	$ 0.48	$ (0.29)	$ 0.89	$ 0.69
Diluted net income per share (in dollars per share)	$ 0.48	$ (0.29)	$ 0.89	$ 0.69
Participating Securities
Net Income (Loss) Available to Common Stockholders
Less: net income allocated to participating securities	$ 232	$ 0	$ 437	$ 236
Weighted average common shares outstanding - basic (in shares)	482,000	0	491,000	342,000
Effect of dilutive securities (in shares)	0	0	0	0
Weighted average common and potentially issuable common shares outstanding - diluted (in shares)	482,000	0	491,000	342,000
Basic net income per share (in dollars per share)	$ 0.48	$ 0	$ 0.89	$ 0.69
Diluted net income per share (in dollars per share)	$ 0.48	$ 0	$ 0.89	$ 0.69

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Major Customers (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) customer	Jun. 30, 2020 USD ($)
Revenue, Major Customer [Line Items]
Number of major customers | customer			5
Net sales	$ 80,461	$ 37,806	$ 153,290	$ 101,830
Product
Revenue, Major Customer [Line Items]
Net sales	79,117	35,847	148,251	97,777
Tooling
Revenue, Major Customer [Line Items]
Net sales	1,344	1,959	5,039	4,053
UFP
Revenue, Major Customer [Line Items]
Net sales	15,115	9,484	25,772	18,471
UFP | Product
Revenue, Major Customer [Line Items]
Net sales	15,115	9,484	25,772	18,471
UFP | Tooling
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Navistar
Revenue, Major Customer [Line Items]
Net sales	10,969	7,588	21,212	18,352
Navistar | Product
Revenue, Major Customer [Line Items]
Net sales	10,969	6,500	20,906	17,166
Navistar | Tooling
Revenue, Major Customer [Line Items]
Net sales	0	1,088	306	1,186
Volvo
Revenue, Major Customer [Line Items]
Net sales	7,456	2,789	17,601	11,887
Volvo | Product
Revenue, Major Customer [Line Items]
Net sales	7,429	2,167	17,554	9,740
Volvo | Tooling
Revenue, Major Customer [Line Items]
Net sales	27	622	47	2,147
PACCAR
Revenue, Major Customer [Line Items]
Net sales	11,333	3,167	21,016	11,323
PACCAR | Product
Revenue, Major Customer [Line Items]
Net sales	10,830	3,167	20,184	11,116
PACCAR | Tooling
Revenue, Major Customer [Line Items]
Net sales	503	0	832	207
BRP
Revenue, Major Customer [Line Items]
Net sales	10,544	2,319	19,227	9,786
BRP | Product
Revenue, Major Customer [Line Items]
Net sales	10,420	2,206	18,989	9,453
BRP | Tooling
Revenue, Major Customer [Line Items]
Net sales	124	113	238	333
Other Customers
Revenue, Major Customer [Line Items]
Net sales	25,044	12,459	48,462	32,011
Other Customers | Product
Revenue, Major Customer [Line Items]
Net sales	24,354	12,323	44,846	31,831
Other Customers | Tooling
Revenue, Major Customer [Line Items]
Net sales	$ 690	$ 136	$ 3,616	$ 180

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Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 16,010	$ 11,640
Work in process	1,717	1,679
Finished goods	4,312	5,041
Total	$ 22,039	$ 18,360

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Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Options to extend the lease, period			5 years
Weighted average discount rate, Operating leases	5.50%		5.50%		5.90%
Weighted average remaining lease term, Operating leases	4 years		4 years		3 years 6 months
Lease, Cost [Abstract]
Operating lease cost	$ 386	$ 357	$ 754	$ 714
Total net lease cost	386	$ 357	754	714
Assets and Liabilities, Lessee [Abstract]
Operating lease right of use assets	3,985		3,985		$ 2,754
Current operating lease liabilities	$ 1,252		$ 1,252		$ 1,023
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherAccruedLiabilitiesCurrent		us-gaap:OtherAccruedLiabilitiesCurrent		us-gaap:OtherAccruedLiabilitiesCurrent
Noncurrent operating lease liabilities	$ 2,765		$ 2,765		$ 1,670
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other non-current liabilities		Other non-current liabilities		Other non-current liabilities
Total operating lease liabilities	$ 4,017		$ 4,017		$ 2,693
Weighted average remaining lease term, Operating leases	4 years		4 years		3 years 6 months
Weighted average discount rate, Operating leases	5.50%		5.50%		5.90%
Cash Flow, Operating Activities, Lessee [Abstract]
Operating cash flows from operating leases			$ 754	$ 714
Lessee, Operating Lease, Description [Abstract]
Operating leases to be paid in remainder of fiscal year	$ 759		759
Operating leases to be paid in year one	1,168		1,168		$ 1,215
Operating leases to be paid in year two	1,068		1,068		811
Operating leases to be paid in year three	1,074		1,074		706
Operating leases to be paid in year four	629		629		705
Operating leases to be paid in year five					0
Total lease payments	4,698		4,698		3,437
Less: imputed interest	(681)		(681)		(744)
Total operating lease liabilities	4,017		4,017		2,693
Less: current obligations	1,252		1,252		1,023
Long-term lease obligations	$ 2,765		$ 2,765		$ 1,670
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year		1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	4 years		4 years

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Property, Plant & Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Property, plant and equipment	$ 180,062		$ 180,062		$ 174,553
Accumulated depreciation	(105,449)		(105,449)		(100,501)
Property, plant and equipment — net	74,613		74,613		74,052
Depreciation expense	2,461	$ 2,216	4,943	$ 4,488
Capital additions in progress	$ 4,095		4,095		1,422
Purchase commitments for capital expenditures in progress			$ 4,705		$ 677

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Goodwill and Intangibles - Goodwill activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 17,376
Additions	0
Impairment	0
Ending balance	$ 17,376

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Goodwill and Intangibles - Definite-lived Intangible assets (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 17,420,000		$ 17,420,000		$ 17,420,000
Accumulated Amortization	(6,878,000)		(6,878,000)		(5,904,000)
Net Carrying Amount	10,542,000		10,542,000		$ 11,516,000
Intangible asset amortization expense	487,000	$ 487,000	$ 974,000	$ 974,000
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period			25 years		25 years
Gross Carrying Amount	250,000		$ 250,000		$ 250,000
Accumulated Amortization	(63,000)		(63,000)		(58,000)
Net Carrying Amount	187,000		$ 187,000		$ 192,000
Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period			10 years		10 years
Gross Carrying Amount	1,610,000		$ 1,610,000		$ 1,610,000
Accumulated Amortization	(557,000)		(557,000)		(476,000)
Net Carrying Amount	1,053,000		$ 1,053,000		$ 1,134,000
Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period			5 years		5 years
Gross Carrying Amount	1,810,000		$ 1,810,000		$ 1,810,000
Accumulated Amortization	(1,252,000)		(1,252,000)		(1,071,000)
Net Carrying Amount	558,000		$ 558,000		$ 739,000
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period			7 years		7 years
Gross Carrying Amount	4,420,000		$ 4,420,000		$ 4,420,000
Accumulated Amortization	(2,183,000)		(2,183,000)		(1,869,000)
Net Carrying Amount	2,237,000		2,237,000		2,551,000
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9,330,000		9,330,000		9,330,000
Accumulated Amortization	(2,823,000)		(2,823,000)		(2,430,000)
Net Carrying Amount	$ 6,507,000		$ 6,507,000		$ 6,900,000
Customer relationships | Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period			10 years		10 years
Customer relationships | Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period			12 years		12 years

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Post Retirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Pension, health and life insurance expense:
Multi-employer plan	$ 232	$ 145	$ 421	$ 391
Defined contribution plan	316	215	618	508
Total pension expense	548	360	1,039	899
Interest cost	40	59	81	118
Amortization of prior service credits	(124)	(124)	(248)	(248)
Amortization of net loss	44	45	87	90
Net periodic benefit credit	(40)	(20)	(80)	(40)
Total post retirement benefits expense	508	$ 340	959	$ 859
Pension Plan
Pension, health and life insurance expense:
Payments made to pension plans			683
Pension plan payments expected to be made in fiscal year	1,332		1,332
Pension plan payments accrued	772		772
Other Postretirement Benefits Plan
Pension, health and life insurance expense:
Payments for post retirement healthcare and life insurance			157
Pension plan payments expected to be made in fiscal year	1,129		1,129
Pension plan payments accrued	$ 1,129		$ 1,129

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Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total	$ 28,315	$ 29,690
Less deferred loan costs	(1,720)	(1,957)
Less current portion	(3,352)	(2,535)
Long-term debt	23,243	25,198
Wells Fargo term loans payable
Debt Instrument [Line Items]
Total	15,191	16,390
FGI term loans payable
Debt Instrument [Line Items]
Total	12,988	13,148
Leaf Capital term loan payable
Debt Instrument [Line Items]
Total	$ 136	$ 152

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Debt - Term Loans (Narrative) (Details) - USD ($)					6 Months Ended
	Oct. 28, 2020	Oct. 27, 2020	Oct. 20, 2020	Apr. 24, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021
Debt Instrument [Line Items]
Principal amount advanced					$ 1,375,000	$ 2,258,000
Loans Payable | Wells Fargo term loans payable
Debt Instrument [Line Items]
Principal amount		$ 18,500,000
Weighted average interest rate							3.77%
Monthly installments		$ 200,000
Loans Payable | Wells Fargo term loans payable | Keybank National Association
Debt Instrument [Line Items]
Principal amount advanced	$ 16,790,000
Loans Payable | Wells Fargo term loans payable | LIBOR
Debt Instrument [Line Items]
Basis points		3.00%
Stated interest rate		0.75%
Loans Payable | Wells Fargo term loans payable | LIBOR | Minimum
Debt Instrument [Line Items]
Basis points		1.00%
Loans Payable | Wells Fargo term loans payable | Base Rate
Debt Instrument [Line Items]
Basis points		2.00%
Stated interest rate		1.00%
Loans Payable | Wells Fargo term loans payable | Federal Funds Rate
Debt Instrument [Line Items]
Basis points		0.50%
Loans Payable | FGI term loans payable
Debt Instrument [Line Items]
Principal amount			$ 13,200,000
Stated interest rate			8.25%
Security deposit		$ 1,200,000
Final payment			$ 1,446,000
Prepayment fee			20.00%
Loans Payable | FGI term loans payable | Period One
Debt Instrument [Line Items]
Monthly installments			$ 117,000
Debt term			12 months
Prepayment fee			4.00%
Loans Payable | FGI term loans payable | Period Two
Debt Instrument [Line Items]
Monthly installments			$ 246,000
Debt term			59 months
Prepayment fee			3.00%
Loans Payable | FGI term loans payable | Period Three
Debt Instrument [Line Items]
Prepayment fee			2.00%
Loans Payable | FGI term loans payable | Period Four
Debt Instrument [Line Items]
Prepayment fee			1.00%
Loans Payable | FGI term loans payable | Keybank National Association
Debt Instrument [Line Items]
Principal amount advanced		$ 12,000,000
Loans Payable | Leaf Capital term loan payable
Debt Instrument [Line Items]
Principal amount				$ 175,000
Stated interest rate				5.50%
Debt term				60 months

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Debt - Revolving Loans (Narrative) (Details) - USD ($)			6 Months Ended
	Oct. 28, 2020	Oct. 27, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Debt Instrument [Line Items]
Principal amount advanced			$ 1,375,000	$ 2,258,000
Loan balance			28,315,000			$ 29,690,000
Wells Fargo term loans payable
Debt Instrument [Line Items]
Loan balance			$ 15,191,000			$ 16,390,000
Revolving Credit Facility | Incremental Revolving Commitment
Debt Instrument [Line Items]
Revolving loan commitment		$ 10,000,000
Debt term		3 years
Revolving Credit Facility | Wells Fargo term loans payable
Debt Instrument [Line Items]
Revolving loan commitment		$ 25,000,000
Weighted average interest rate		4.25%
Available rate revolving loans					$ 23,731,000
Line of credit outstanding					200,000
Letters of credit outstanding					$ 160,000
Revolving Credit Facility | Wells Fargo term loans payable | Letter of Credit
Debt Instrument [Line Items]
Revolving loan commitment		$ 2,000,000
Revolving Credit Facility | Wells Fargo term loans payable | Investment Grade | Accounts Receivable
Debt Instrument [Line Items]
Eligible investment grade		90.00%
Revolving Credit Facility | Wells Fargo term loans payable | Investment Grade | Inventories
Debt Instrument [Line Items]
Eligible investment grade		65.00%
Revolving Credit Facility | Wells Fargo term loans payable | Non Investment Grade | Accounts Receivable
Debt Instrument [Line Items]
Eligible investment grade		85.00%
Revolving Credit Facility | Wells Fargo term loans payable | Keybank National Association
Debt Instrument [Line Items]
Principal amount advanced	$ 8,745,000
Revolving Credit Facility | Keybank National Association
Debt Instrument [Line Items]
Loan balance							$ 167,000
Revolving Credit Facility | LIBOR | Wells Fargo term loans payable
Debt Instrument [Line Items]
Basis points		1.00%
Revolving Credit Facility | LIBOR | Wells Fargo term loans payable | Minimum
Debt Instrument [Line Items]
Basis points		2.00%
Stated interest rate		0.75%
Revolving Credit Facility | LIBOR | Wells Fargo term loans payable | Maximum
Debt Instrument [Line Items]
Basis points		2.50%
Revolving Credit Facility | Base Rate | Wells Fargo term loans payable | Minimum
Debt Instrument [Line Items]
Basis points		1.00%
Stated interest rate		1.00%
Revolving Credit Facility | Base Rate | Wells Fargo term loans payable | Maximum
Debt Instrument [Line Items]
Basis points		1.50%
Revolving Credit Facility | Federal Funds Rate | Wells Fargo term loans payable
Debt Instrument [Line Items]
Basis points		0.50%
Loans Payable | Wells Fargo term loans payable
Debt Instrument [Line Items]
Weighted average interest rate					3.77%
Loans Payable | Wells Fargo term loans payable | Keybank National Association
Debt Instrument [Line Items]
Principal amount advanced	$ 16,790,000
Loans Payable | Keybank National Association
Debt Instrument [Line Items]
Loan balance							$ 36,000,000
Variable interest rate							8.00%
Loans Payable | LIBOR | Wells Fargo term loans payable
Debt Instrument [Line Items]
Basis points		3.00%
Stated interest rate		0.75%
Loans Payable | LIBOR | Wells Fargo term loans payable | Minimum
Debt Instrument [Line Items]
Basis points		1.00%
Loans Payable | Base Rate | Wells Fargo term loans payable
Debt Instrument [Line Items]
Basis points		2.00%
Stated interest rate		1.00%
Loans Payable | Federal Funds Rate | Wells Fargo term loans payable
Debt Instrument [Line Items]
Basis points		0.50%

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Income Taxes (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Deferred tax asset	$ 937,000			$ 937,000
Deferred tax liability	883,000			883,000
Unrecognized tax benefits	0			0		$ 0
Income tax expense (benefit)	$ 1,543,000	$ (111,000)		$ 2,894,000	$ (4,965,000)
Effective tax rate			686.00%	27.70%
Income tax benefit from CARES Act			$ 5,638,000
Valuation allowance against net deferred tax assets			3,267,000
Income tax refund			$ 2,371,000
Income taxes rate			34.00%

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Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	924,823			924,823
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Applicable vesting period				3 years
Unrecognized compensation expense	$ 4,783	$ 2,249		$ 4,783	$ 2,249
Expected weighted-average term				2 years 7 months 6 days
Shares surrendered (in shares)			0	3,874
Restricted Stock | Selling, general and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs	456	357		$ 745	1,121
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Applicable vesting period				3 years
Unrecognized compensation expense	$ 112	260		$ 112	260
Expected weighted-average term				5 years
Grant price (in USD per share)	$ 10			$ 10
Average remaining contractual term				2 years 9 months 18 days
Aggregate intrinsic value	$ 961			$ 961
Weighted-average period costs are expected to be recognized				9 months 18 days
Stock Appreciation Rights (SARs) | Selling, general and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs	$ 31	$ 31		$ 60	$ 55

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Stock Based Compensation - Restricted Stock (Details) - Restricted Stock - $ / shares	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Number of Shares, Restricted Stock
Unvested beginning balance (in shares)	507,835
Granted (in shares)	250,635
Vested (in shares)	(64,106)
Forfeited (in shares)	(15,964)
Unvested ending balance (in shares)	678,400
Weighted Average Grant Date Fair Value, Restricted Stock
Unvested beginning balance (in dollars per share)	$ 8.85	$ 6.25
Granted (in dollars per share)	13.74
Vested (in dollars per share)	7.86
Forfeited (in dollars per share)	5.30
Unvested beginning balance (in dollars per share)	$ 8.85

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Stock Based Compensation - Stock Appreciation Rights (Details) - Stock Appreciation Rights (SARs)	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Number of Shares
Beginning Balance (in shares) | shares	180,925
Granted (in shares) | shares	0
Exercised (in shares) | shares	0
Forfeited (in shares) | shares	(3,909)
Ending Balance (in shares) | shares	177,016
Exercisable at the end of period (in shares) | shares	124,801
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 2.57
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	2.57
Ending balance (in dollars per share) | $ / shares	2.57
Exercisable at the period end (in dollars per share) | $ / shares	$ 2.57

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Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative	$ 0	$ 142	$ 0	$ (532)
Foreign exchange contracts | Cost of goods sold
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	0	526	0	(306)
Foreign exchange contracts | Selling, general and administrative expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	0	68	0	(34)
Interest rate swaps:
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative	0	(915)	0	(528)
Interest rate swaps: | Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	$ 0	$ (1,620)	$ 0	$ (194)

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 93,932	$ 84,426
Other comprehensive loss before reclassifications	0	(1,060)
Amounts reclassified from accumulated other comprehensive income	(161)	(691)
Income tax benefit	33	383
Ending Balance	102,103	89,452
Derivative Hedging Activities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	0	(191)
Other comprehensive loss before reclassifications	0	(1,060)
Amounts reclassified from accumulated other comprehensive income	0	(533)
Income tax benefit	0	350
Ending Balance	0	(1,434)
Post Retirement Benefit Plan Items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	1,375	1,561
Other comprehensive loss before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income	(161)	(158)
Income tax benefit	33	33
Ending Balance	1,247	1,436
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	1,375	1,370
Ending Balance	$ 1,247	$ 2