0001140361-22-027141.txt : 20220727 0001140361-22-027141.hdr.sgml : 20220727 20220727163853 ACCESSION NUMBER: 0001140361-22-027141 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 96 CONFORMED PERIOD OF REPORT: 20220630 FILED AS OF DATE: 20220727 DATE AS OF CHANGE: 20220727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Turning Point Brands, Inc. CENTRAL INDEX KEY: 0001290677 STANDARD INDUSTRIAL CLASSIFICATION: TOBACCO PRODUCTS [2100] IRS NUMBER: 133961898 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-37763 FILM NUMBER: 221111504 BUSINESS ADDRESS: STREET 1: 5201 INTERCHANGE WAY CITY: LOUISVILLE STATE: KY ZIP: 40229 BUSINESS PHONE: (502) 778-4421 MAIL ADDRESS: STREET 1: 5201 INTERCHANGE WAY CITY: LOUISVILLE STATE: KY ZIP: 40229 FORMER COMPANY: FORMER CONFORMED NAME: North Atlantic Holding Company, Inc. DATE OF NAME CHANGE: 20040517 10-Q 1 brhc10039978_10q.htm 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022

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: 001-37763

TURNING POINT BRANDS, INC.
(Exact name of registrant as specified in its charter)

Delaware
 
20-0709285
(State or other jurisdiction of Incorporation or organization)
 
(I.R.S. Employer Identification No.)

5201 Interchange Way, Louisville, KY
 
40229
(Address of principal executive offices)
 
(Zip Code)

(502) 778-4421
(Registrant’s telephone number, including area code)

Former name, former address and former fiscal year, if changed since last report: not applicable

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

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value
TPB
New York Stock Exchange

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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
 
Accelerated filer
Non-accelerated filer
 
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 

At July 19, 2022, there were 17,837,402 shares outstanding of the registrant’s voting common stock, par value $0.01 per share.


TURNING POINT BRANDS, INC.
TABLE OF CONTENTS

 
Page No.
PART I—FINANCIAL INFORMATION
 
   
 
ITEM 1
Financial Statements (Unaudited)
 
       
   
       
   
       
    Consolidated Statements of Income for the six months ended June 30, 2022 and 2021 7
       
   
       
   
       
   
       
    11
       
   
       
 
ITEM 2
       
 
ITEM 3
48
       
 
ITEM 4
48
       
PART II—OTHER INFORMATION
 
   
 
ITEM 1
49
       
 
ITEM 1A
49
       
 
ITEM 2
49
       
 
ITEM 3
49
       
 
ITEM 4
49
       
 
ITEM 5
49
       
 
ITEM 6
50
       
  51

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “plan,” and “will” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, and depend on circumstances, that may or may not occur in the future. As a result, actual events may differ materially from those expressed in, or suggested by, the forward-looking statements. Any forward-looking statement made by Turning Point Brands, Inc. (“TPB”), in this Quarterly Report on Form 10-Q speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for TPB to predict these events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to:


declining sales of tobacco products, and expected continuing decline of sales, in the tobacco industry overall;

our dependence on a small number of third-party suppliers and producers;

the possibility that we will be unable to identify or contract with new suppliers or producers in the event of a supply or product disruption, as well as other supply chain concerns, including delays in product shipments and increases in freight cost;

the possibility that our licenses to use certain brands or trademarks will be terminated, challenged or restricted;

failure to maintain consumer brand recognition and loyalty of our customers;

our reliance on relationships with several large retailers and national chains for distribution of our products;

intense competition and our ability to compete effectively;

competition from illicit sources and the damage caused by illicit products to brand equity;

contamination of our tobacco supply or products;

uncertainty and continued evolution of the markets for our NewGen and cigar products;

complications with the design or implementation of our new enterprise resource planning system could adversely impact our business and operations;

substantial and increasing U.S. regulation;

regulation or marketing denials of our products by the FDA, which has broad regulatory powers;

many of our products contain nicotine, which is considered to be a highly addictive substance;

requirement to maintain compliance with master settlement escrow agreement;

possible significant increases in federal, state and local municipal tobacco- and vapor-related taxes;

our products are subject to developing and unpredictable regulation, such as court actions that impact obligations;

increase in state and local regulation of our NewGen products has been proposed or enacted;

increase in tax of our NewGen products could adversely affect our business;

sensitivity of end-customers to increased sales taxes and economic conditions including significant increases in the rate of inflation and other declines in purchasing power;

possible increasing international control and regulation;

failure to comply with environmental, health and safety regulations;

imposition of significant tariffs on imports into the U.S.; 

the scientific community’s lack of information regarding the long-term health effects of certain substances contained in some of our products;

significant product liability litigation;

the effect of the COVID-19 pandemic on our business;

our amount of indebtedness;

the terms of our indebtedness, which may restrict our current and future operations;

identification of a material weakness in our internal control related to ineffective information technology general controls which, if not remediated appropriately or timely, could result in loss of investor confidence and adversely impact our stock price;

Changes in the method for determining LIBOR or the replacement of LIBOR with an alternative reference rate, may adversely affect interest expense related to outstanding debt;


our certificate of incorporation and bylaws, as well as Delaware law and certain regulations, could discourage or prohibit acquisition bids or merger proposals, which may adversely affect the market price of our common stock;

our certificate of incorporation limits the ownership of our common stock by individuals and entities that are Restricted Investors. These restrictions may affect the liquidity of our common stock and may result in Restricted Investors (as defined in our Certificate of Incorporation) being required to sell or redeem their shares at a loss or relinquish their voting, dividend and distribution rights;

future sales of our common stock in the public market could reduce our stock price, and any additional capital raised by us through the sale of equity or convertible securities may dilute your ownership in us;

we may issue preferred stock whose terms could adversely affect the voting power or value of our common stock;

our business may be damaged by events outside of our suppliers’ control, such as the impact of epidemics (e.g., coronavirus), political upheavals, or natural disasters;

our reliance on information technology;

cybersecurity and privacy breaches;

failure to manage our growth;

failure to successfully integrate our acquisitions or otherwise be unable to benefit from pursuing acquisitions;

fluctuations in our results;

exchange rate fluctuations;

adverse U.S. and global economic conditions;

departure of key management personnel or our inability to attract and retain talent;

infringement on or misappropriation of our intellectual property;

third-party claims that we infringe on their intellectual property; and

failure to meet expectations relating to environmental, social and governance factors.

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

Turning Point Brands, Inc.
Consolidated Balance Sheets
(dollars in thousands except share data)

ASSETS
 
(unaudited)
June 30,
2022
   
December 31,
2021
 
Current assets:
           
Cash
 
$
107,429
   
$
128,320
 
Accounts receivable, net of allowances of $161 in 2022 and $262 in 2021
   
9,177
     
6,496
 
Inventories
   
115,129
     
87,607
 
Other current assets
   
27,353
     
26,746
 
Total current assets
   
259,088
     
249,169
 
Property, plant, and equipment, net
   
22,376
     
18,650
 
Deferred income taxes
   
2,111
     
1,363
 
Right of use assets
   
13,749
     
15,053
 
Deferred financing costs, net
   
335
     
388
 
Goodwill
   
162,385
     
162,333
 
Other intangible assets, net
   
86,566
     
87,485
 
Master Settlement Agreement (MSA) escrow deposits
   
29,224
     
31,720
 
Other assets
   
28,475
     
35,399
 
Total assets
 
$
604,309
   
$
601,560
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
 
$
14,436
   
$
7,361
 
Accrued liabilities
   
34,560
     
32,937
 
Other current liabilities
   
38
     
38
 
Total current liabilities
   
49,034
     
40,336
 
Notes payable and long-term debt
   
415,410
     
414,172
 
Lease liabilities
   
11,934
     
13,336
 
Total liabilities
   
476,378
     
467,844
 
                 
Commitments and contingencies
           
                 
Stockholders’ equity:
               
Preferred stock; $0.01 par value; authorized shares 40,000,000; issued and outstanding shares -0-
   
-
     
-
 
Common stock, voting, $0.01 par value; authorized shares, 190,000,000; 19,797,735 issued shares and 17,890,441 outstanding shares at June 30, 2022, and 19,690,884 issued shares and 18,395,476 outstanding shares at December 31, 2021
   
198
     
197
 
Common stock, nonvoting, $0.01 par value; authorized shares, 10,000,000; issued and outstanding shares -0-
   
-
     
-
 
Additional paid-in capital
   
110,563
     
108,811
 
Cost of repurchased common stock (1,907,294 shares at June 30, 2022, and 1,295,408 shares at December 31, 2021)
   
(68,287
)
   
(48,869
)
Accumulated other comprehensive loss
   
(2,064
)
   
(195
)
Accumulated earnings
   
85,641
     
71,460
 
Non-controlling interest
   
1,880
     
2,312
 
Total stockholders’ equity
   
127,931
     
133,716
 
Total liabilities and stockholders’ equity
 
$
604,309
   
$
601,560
 

The accompanying notes are an integral part of the consolidated financial statements.

Turning Point Brands, Inc.
Consolidated Statements of Income
(dollars in thousands except share data)
(unaudited)


 
Three Months Ended
June 30,
 
   
2022
   
2021
 
             
Net sales
 
$
102,925
   
$
122,643
 
Cost of sales
   
51,456
     
62,670
 
Gross profit
   
51,469
     
59,973
 
Selling, general, and administrative expenses
   
33,323
     
35,094
 
Operating income
   
18,146
     
24,879
 
Interest expense, net
   
5,144
     
5,522
 
Investment loss (income)
   
6,227
     
(110
)
Income before income taxes
   
6,775
     
19,467
 
Income tax expense
   
1,569
     
4,424
 
Consolidated net income
   
5,206
     
15,043
 
Net loss attributable to non-controlling interest
   
(218
)
   
(312
)
Net income attributable to Turning Point Brands, Inc.
 
$
5,424
   
$
15,355
 
                 
Basic income per common share:
               
Net income attributable to Turning Point Brands, Inc.
 
$
0.30
   
$
0.81
 
Diluted income per common share:
               
Net income attributable to Turning Point Brands, Inc.
 
$
0.30
   
$
0.73
 
Weighted average common shares outstanding:
               
Basic
   
18,063,259
     
18,975,522
 
Diluted
   
21,443,279
     
22,489,662
 

The accompanying notes are an integral part of the consolidated financial statements.

Turning Point Brands, Inc.
Consolidated Statements of Income
(dollars in thousands except share data)
(unaudited)


 
Six Months Ended
June 30,
 
   
2022
   
2021
 
             
Net sales
 
$
203,819
   
$
230,284
 
Cost of sales
   
100,556
     
117,050
 
Gross profit
   
103,263
     
113,234
 
Selling, general, and administrative expenses
   
65,888
     
64,006
 
Operating income
   
37,375
     
49,228
 
Interest expense, net
   
10,340
     
10,009
 
Investment loss (income)
   
6,149
     
(135
)
Loss on extinguishment of debt
   
-
     
5,706
 
Income before income taxes
   
20,886
     
33,648
 
Income tax expense
   
4,909
     
7,078
 
Consolidated net income
   
15,977
     
26,570
 
Net loss attributable to non-controlling interest
   
(445
)
   
(567
)
Net income attributable to Turning Point Brands, Inc.
 
$
16,422
   
$
27,137
 
                 
Basic income per common share:
               
Net income attributable to Turning Point Brands, Inc.
 
$
0.90
   
$
1.43
 
Diluted income per common share:
               
Net income attributable to Turning Point Brands, Inc.
 
$
0.86
   
$
1.30
 
Weighted average common shares outstanding:
               
Basic
   
18,159,940
     
19,034,415
 
Diluted
   
21,603,113
     
22,559,087
 

The accompanying notes are an integral part of the consolidated financial statements.

Turning Point Brands, Inc.
Consolidated Statements of Comprehensive Income
(dollars in thousands)
(unaudited)


 
Three Months Ended
June 30,
 
   
2022
   
2021
 
Consolidated net income
 
$
5,206
   
$
15,043
 
                 
Other comprehensive income (loss), net of tax
               
Unrealized (loss) gain on MSA investments, net of tax of $244 in 2022 and $83 in 2021
   
(768
)
   
260
 
Foreign currency translation, net of tax of $0 in 2022 and 2021
   
45
   
642
 
Unrealized gain on derivative instruments, net of tax of $0 in 2022 and $126 in 2021
   
-
     
178
 
     
(723
)
   
1,080
 
Consolidated comprehensive income
   
4,483
     
16,123
 
Comprehensive income (loss) attributable to non-controlling interest
   
(203
)
   
9
 
Comprehensive income attributable to Turning Point Brands, Inc.
 
$
4,686
   
$
16,114
 


 
Six Months Ended
June 30,
 
   
2022
   
2021
 
Consolidated net income
 
$
15,977
   
$
26,570
 
                 
Other comprehensive income (loss), net of tax
               
Unrealized loss on MSA investments, net of tax of $602 in 2022 and $61 in 2021
   
(1,894
)
   
(192
)
Foreign currency translation, net of tax of $0 in 2022 and 2021
   
38
     
960
 
Unrealized gain on derivative instruments, net of tax of $0 in 2022 and $810 in 2021
   
-
     
2,626
 
     
(1,856
)
   
3,394
 
Consolidated comprehensive income
   
14,121
     
29,964
 
Comprehensive loss attributable to non-controlling interest
   
(432
)
   
(87
)
Comprehensive income attributable to Turning Point Brands, Inc.
 
$
14,553
   
$
30,051
 

The accompanying notes are an integral part of the consolidated financial statements.

Turning Point Brands, Inc.
Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)


 
Six Months Ended
June 30,
 
   
2022
   
2021
 
Cash flows from operating activities:
           
Consolidated net income
 
$
15,977
   
$
26,570
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Loss on extinguishment of debt
   
-
     
5,706
 
Gain on sale of property, plant, and equipment
   
(8
)
   
(2
)
Depreciation expense
   
1,750
     
1,546
 
Amortization of other intangible assets
   
919
     
954
 
Amortization of deferred financing costs
   
1,291
     
1,251
 
Deferred income tax (benefit) expense
   
(146
)
   
1,027
 
Stock compensation expense
   
2,661
     
4,263
 
Noncash lease income
   
(6
)
   
(19
)
Loss (gain) on investments
   
6,258
     
(34
)
Changes in operating assets and liabilities:
               
Accounts receivable
   
(2,673
)
   
3,955
 
Inventories
   
(27,499
)
   
(12,007
)
Other current assets
   
(598
)
   
813
 
Other assets
   
624
     
599
 
Accounts payable
   
7,240
     
1,423
 
Accrued liabilities and other
   
1,359
     
1,370
 
Net cash provided by operating activities
 
$
7,149
   
$
37,415
 
                 
Cash flows from investing activities:
               
Capital expenditures
 
$
(5,694
)
 
$
(2,170
)
Acquisitions, net of cash acquired
    -       (3,419 )
Payments for investments
    -       (8,657 )
Restricted cash, MSA escrow deposits
   
(10,078
)
   
(20,147
)
Proceeds on the sale of property, plant and equipment
   
63
     
2
 
Net cash used in investing activities
 
$
(15,709
)
 
$
(34,391
)
                 
Cash flows from financing activities:
               
Proceeds from Senior Secured Notes
 
$
-
   
$
250,000
 
Payments of 2018 first lien term loan
   
-
     
(130,000
)
Settlement of interest rate swaps
   
-
     
(3,573
)
Payment of dividends
   
(2,181
)
   
(2,006
)
Payments of financing costs
   
-
     
(6,921
)
Exercise of options
   
475
     
886
 
Redemption of options
   
(155
)
   
(2,111
)
Redemption of performance restricted stock units
    (1,228 )     -  
Common stock repurchased
   
(19,418
)
   
(14,086
)
Net cash provided by (used in) financing activities
 
$
(22,507
)
 
$
92,189
 
                 
Net (decrease) increase in cash
 
$
(31,067
)
 
$
95,213
 
Effect of foreign currency translation on cash
 
$
56
   
$
315
 
                 
Cash, beginning of period:
               
Unrestricted
   
128,320
     
41,765
 
Restricted
   
15,155
     
35,074
 
Total cash at beginning of period
   
143,475
     
76,839
 
                 
Cash, end of period:
               
Unrestricted
   
107,429
     
157,474
 
Restricted
   
5,035
     
14,893
 
Total cash at end of period
 
$
112,464
   
$
172,367
 
                 
Supplemental schedule of noncash investing activities:
               
Accrued capital expenditures
 
$
19
   
$
242
 
                 
Supplemental schedule of noncash financing activities:
               
Dividends declared not paid
 
$
1,110
   
$
1,241
 
Accrued consideration for acquisition
 
$
-
   
$
402
 

The accompanying notes are an integral part of the consolidated financial statements.

Turning Point Brands, Inc.
Consolidated Statements of Changes in Stockholders’ Equity
For the Three Months Ended June 30, 2022 and 2021
(dollars in thousands except share data)
(unaudited)

                     
    Accumulated                    
          Common     Additional     Cost of
    Other           Non-        
    Voting     Stock,     Paid-In     Repurchased
    Comprehensive     Accumulated     Controlling        

 
Shares
   
Voting
   
Capital
   
Common Stock
   
Income (Loss)
   
Earnings
   
Interest
   
Total
 
                                                 
Beginning balance April 1, 2022
   
18,180,174
   
$
198
   
$
109,073
   
$
(59,491
)
 
$
(1,326
)
 
$
81,327
   
$
2,083
   
$
131,864
 
                                                                 
Unrealized loss on MSA investments, net of tax of $244
   
-
     
-
     
-
     
-
     
(768
)
   
-
     
-
     
(768
)
Foreign currency translation, net of tax of $0
   
-
     
-
     
-
     
-
     
30
     
-
     
15
     
45
 
Stock compensation expense
   
-
     
-
     
1,502
     
-
     
-
     
-
     
-
     
1,502
 
Exercise of options
   
7,175
     
-
     
230
     
-
     
-
     
-
     
-
     
230
 
Redemption of options
    -       -       (155 )     -      
-
     
-
      -       (155 )
Performance restricted stock units issuance
    4,754       -       -       -       -       -       -       -  
Redemption of restricted stock units
    -       -       (87 )     -       -       -       -       (87 )
Cost of repurchased common stock
   
(301,662
)
   
-
     
-
     
(8,796
)
   
-
     
-
     
-
     
(8,796
)
Dividends
   
-
     
-
     
-
     
-
     
-
     
(1,110
)
   
-
     
(1,110
)
Net income
   
-
     
-
     
-
     
-
     
-
     
5,424
     
(218
)
   
5,206
 
Ending balance June 30, 2022
   
17,890,441
   
$
198
   
$
110,563
   
$
(68,287
)
 
$
(2,064
)
 
$
85,641
   
$
1,880
   
$
127,931
 
                                                                 
                                                                 
Beginning balance April 1, 2021
   
19,059,120
   
$
196
   
$
102,879
   
$
(15,924
)
 
$
(480
)
 
$
34,357
   
$
3,954
   
$
124,982
 
                                                                 
Unrealized gain on MSA investments, net of tax of $83
    -       -       -       -       260       -       -       260  
Unrealized gain on derivative instruments, net of tax of $126
   
-
     
-
     
-
     
-
     
178
     
-
     
-
     
178
 
Foreign currency translation, net of tax of $0
    -       -       -       -       321       -       321       642  
Stock compensation expense
   
-
     
-
     
2,764
     
-
     
-
     
-
     
-
     
2,764
 
Exercise of options
   
39,403
     
-
     
462
     
-
     
-
     
-
     
-
     
462
 
Redemption of options
    -       -       (645 )     -       -       -       -       (645 )
Cost of repurchased common stock
   
(175,000
)
   
-
     
-
     
(8,353
)
   
-
     
-
     
-
     
(8,353
)
Dividends
   
-
     
-
     
-
     
-
     
-
     
(1,065
)
   
-
     
(1,065
)
Net income
   
-
     
-
     
-
     
-
     
-
     
15,355
     
(312
)
   
15,043
 
Ending balance June 30, 2021
   
18,923,523
   
$
196
   
$
105,460
   
$
(24,277
)
 
$
279
   
$
48,647
   
$
3,963
   
$
134,268
 

 The accompanying notes are an integral part of the consolidated financial statements.

Turning Point Brands, Inc.
Consolidated Statements of Changes in Stockholders’ Equity
For the Six Months Ended June 30, 2022 and 2021
(dollars in thousands except share data)
(unaudited)

                     
    Accumulated                    
          Common     Additional
    Cost of
    Other           Non-        
    Voting     Stock,     Paid-In     Repurchased
    Comprehensive     Accumulated     Controlling        

 
Shares
   
Voting
   
Capital
   
Common Stock
   
Income (Loss)
   
Earnings
   
Interest
   
Total
 
                                                 
Beginning balance January 1, 2022
   
18,395,476
   
$
197
   
$
108,811
   
$
(48,869
)
 
$
(195
)
 
$
71,460
   
$
2,312
    $
133,716
 
                                                                 
Unrealized loss on MSA investments, net of tax of $602
   
-
      -       -       -      
(1,894
)
   
-
     
-
     
(1,894
)
Foreign currency translation, net of tax of $0
   
-
     
-
     
-
     
-
     
25
     
-
     
13
     
38
 
Stock compensation expense
   
-
     
-
     
2,661
     
-
     
-
     
-
     
-
     
2,661
 
Exercise of options
   
32,341
     
-
     
475
     
-
     
-
     
-
     
-
     
475
 
Redemption of options
   
-
     
-
     
(155
)
   
-
     
-
     
-
     
-
     
(155
)
Issuance of performance restricted stock units
   
74,510
      1       (1 )     -       -       -       -       -  
Redemption of performance restricted stock units
    -       -       (1,141 )     -       -       -       -       (1,141 )
Redemption of restricted stock units
    -       -       (87 )     -       -       -       -       (87 )
Cost of repurchased common stock
   
(611,886
)
   
-
     
-
     
(19,418
)
   
-
     
-
     
-
     
(19,418
)
Dividends
   
-
     
-
     
-
     
-
     
-
     
(2,241
)
   
-
     
(2,241
)
Net income
   
-
     
-
     
-
     
-
     
-
     
16,422
     
(445
)
   
15,977
 
Ending balance June 30, 2022
   
17,890,441
   
$
198
   
$
110,563
   
$
(68,287
)
 
$
(2,064
)
 
$
85,641
   
$
1,880
   
$
127,931
 
                                                                 
                                                                 
Beginning balance January 1, 2021
   
19,133,794
   
$
195
   
$
102,423
   
$
(10,191
)
 
$
(2,635
)
 
$
23,645
   
$
4,050
   
$
117,487
 
                                                                 
Unrealized loss on MSA investments, net of tax of $61
    -       -       -       -       (192 )     -       -       (192 )
Unrealized gain on derivative instruments, net of tax of $810
   
-
     
-
     
-
     
-
     
2,626
     
-
     
-
     
2,626
 
Foreign currency translation, net of tax of $0
    -       -       -       -       480