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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
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☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2024
OR
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☐ | 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 001-34365
COMMERCIAL VEHICLE GROUP, INC.
(Exact name of Registrant as specified in its charter)
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Delaware (State or other jurisdiction of incorporation or organization) | 41-1990662 (I.R.S. Employer Identification No.) |
7800 Walton Parkway New Albany, Ohio (Address of principal executive offices) | 43054 (Zip Code) |
(614) 289-5360
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $0.01 per share | CVGI | The NASDAQ Global Select Market |
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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, and (2) has been subject to such filing requirements for the past 90 days. Yes x 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 during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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.
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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. | ☐
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Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of shares outstanding of the Registrant’s common stock, par value $.01 per share, at August 5, 2024 was 34,501,771 shares.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
QUARTERLY REPORT ON FORM 10-Q
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PART I FINANCIAL INFORMATION | |
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PART II OTHER INFORMATION | |
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PART I. FINANCIAL INFORMATION
ITEM 1 – FINANCIAL STATEMENTS
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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| Three Months Ended June 30, | | Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| (Unaudited) (In thousands, except per share amounts) |
Revenues | $ | 229,906 | | | $ | 262,194 | | | $ | 461,974 | | | $ | 524,903 | |
Cost of revenues | 208,927 | | | 223,793 | | | 414,330 | | | 451,293 | |
Gross profit | 20,979 | | | 38,401 | | | 47,644 | | | 73,610 | |
Selling, general and administrative expenses | 20,219 | | | 22,457 | | | 40,312 | | | 43,022 | |
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Operating income | 760 | | | 15,944 | | | 7,332 | | | 30,588 | |
Other expense | 207 | | | 307 | | | 419 | | | 105 | |
Interest expense | 2,488 | | | 2,804 | | | 4,739 | | | 5,694 | |
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Income (loss) before provision for income taxes | (1,935) | | | 12,833 | | | 2,174 | | | 24,789 | |
Provision (benefit) for income taxes | (334) | | | 2,693 | | | 836 | | | 5,949 | |
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Net income (loss) | $ | (1,601) | | | $ | 10,140 | | | $ | 1,338 | | | $ | 18,840 | |
Earnings (loss) per Common Share: | | | | | | | |
Basic | $ | (0.05) | | | $ | 0.31 | | | $ | 0.04 | | | $ | 0.57 | |
Diluted | $ | (0.05) | | | $ | 0.30 | | | $ | 0.04 | | | $ | 0.57 | |
Weighted average shares outstanding: | | | | | | | |
Basic | 33,393 | | | 33,051 | | | 33,359 | | | 32,960 | |
Diluted | 33,393 | | | 33,429 | | | 33,834 | | | 33,312 | |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
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| Three Months Ended June 30, | | Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| (Unaudited) (In thousands) |
Net income (loss) | $ | (1,601) | | | $ | 10,140 | | | $ | 1,338 | | | $ | 18,840 | |
Other comprehensive income (loss): | | | | | | | |
Foreign currency exchange translation adjustments | (1,297) | | | (1,051) | | | (3,856) | | | 1,506 | |
Minimum pension liability, net of tax | (391) | | | (147) | | | (858) | | | (7) | |
Derivative instruments, net of tax | (3,975) | | | 1,298 | | | (1,943) | | | 2,641 | |
Other comprehensive income (loss) | (5,663) | | | 100 | | | (6,657) | | | 4,140 | |
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Comprehensive income (loss) | $ | (7,264) | | | $ | 10,240 | | | $ | (5,319) | | | $ | 22,980 | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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| June 30, 2024 | | December 31, 2023 |
| (Unaudited) | | |
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ASSETS |
Current Assets: | | | |
Cash | $ | 39,341 | | | $ | 37,848 | |
Accounts receivable, net of allowances of $177 and $208, respectively | 138,689 | | | 133,949 | |
Inventories | 132,556 | | | 128,082 | |
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Other current assets | 35,634 | | | 27,863 | |
Total current assets | 346,220 | | | 327,742 | |
Property, plant and equipment, net | 75,530 | | | 73,468 | |
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Intangible assets, net | 7,743 | | | 11,222 | |
Deferred income taxes | 34,158 | | | 33,568 | |
Other assets, net | 39,545 | | | 37,214 | |
Total assets | $ | 503,196 | | | $ | 483,214 | |
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current liabilities: | | | |
Accounts payable | $ | 100,810 | | | $ | 77,314 | |
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Accrued liabilities and other | 49,557 | | | 52,562 | |
Current portion of long-term debt and short-term debt | 17,500 | | | 15,313 | |
Total current liabilities | 167,867 | | | 145,189 | |
Long-term debt | 124,458 | | | 126,201 | |
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Pension and other post-retirement benefits | 9,593 | | | 9,196 | |
Other long-term liabilities | 31,671 | | | 29,696 | |
Total liabilities | 333,589 | | | 310,282 | |
Stockholders’ equity: | | | |
Preferred stock, $0.01 par value (5,000,000 shares authorized; no shares issued and outstanding) | $ | — | | | $ | — | |
Common stock, $0.01 par value (60,000,000 shares authorized; 33,443,964 and 33,322,535 shares issued and outstanding respectively) | 334 | | | 333 | |
Treasury stock, at cost: 2,139,458 and 2,134,604 shares, respectively | (16,170) | | | (16,150) | |
Additional paid-in capital | 267,230 | | | 265,217 | |
Retained deficit | (44,846) | | | (46,184) | |
Accumulated other comprehensive loss | (36,941) | | | (30,284) | |
Total stockholders’ equity | 169,607 | | | 172,932 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 503,196 | | | $ | 483,214 | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | | | | | | |
| Six Months Ended June 30, |
| 2024 | | 2023 |
| (Unaudited) |
| (In thousands) |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | |
Net income | $ | 1,338 | | | $ | 18,840 | |
Adjustments to reconcile net income to cash flows from operating activities: | | | |
Depreciation and amortization | 8,974 | | | 8,673 | |
| | | |
Noncash amortization of debt financing costs | 151 | | | 151 | |
Pension cash reversion | — | | | 2,942 | |
| | | |
| | | |
Share-based compensation expense | 2,013 | | | 1,526 | |
Deferred income taxes | 121 | | | 201 | |
Non-cash loss (income) on derivative contracts | (475) | | | (689) | |
| | | |
| | | |
Change in other operating items: | | | |
Accounts receivable | (5,555) | | | (20,501) | |
Inventories | (5,456) | | | 11,408 | |
Prepaid expenses | (3,688) | | | (2,292) | |
Accounts payable | 24,414 | | | (15,672) | |
Other operating activities, net | (11,605) | | | 6,935 | |
Net cash provided by operating activities | 10,232 | | | 11,522 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | |
Purchases of property, plant and equipment | (11,266) | | | (9,179) | |
| | | |
| | | |
Proceeds from sale of business | 3,200 | | | — | |
Net cash used in investing activities | (8,066) | | | (9,179) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | |
| | | |
Repayment of term loan facility | (6,563) | | | (4,375) | |
| | | |
Borrowings under revolving credit facility | 24,500 | | | 20,000 | |
Repayment of revolving credit facility | (17,500) | | | (11,000) | |
| | | |
| | | |
Surrender of shares to pay withholding taxes | (20) | | | (788) | |
| | | |
| | | |
| | | |
Other financing activities | (62) | | | 4,056 | |
Net cash provided by financing activities | 355 | | | 7,893 | |
| | | |
EFFECT OF CURRENCY EXCHANGE RATE CHANGES ON CASH | (1,028) | | | 380 | |
| | | |
NET INCREASE IN CASH | 1,493 | | | 10,616 | |
| | | |
CASH: | | | |
Beginning of period | 37,848 | | | 31,825 | |
End of period | $ | 39,341 | | | $ | 42,441 | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | Treasury Stock | | Additional Paid In Capital | | Retained Deficit | | Accumulated Other Comp. Loss | | Total CVG Stockholders’ Equity |
| Shares | | Amount | |
| (Unaudited) (In thousands) |
Balance - December 31, 2022 | 32,826,852 | | | $ | 328 | | | $ | (14,514) | | | $ | 261,371 | | | $ | (95,595) | | | $ | (31,550) | | | $ | 120,040 | |
Share-based compensation expense | 164,616 | | | 2 | | | (764) | | | 1,771 | | | — | | | — | | | 1,009 | |
Total comprehensive income | — | | | — | | | — | | | — | | | 8,700 | | | 4,040 | | | 12,740 | |
Balance - March 31, 2023 | 32,991,468 | | | $ | 330 | | | $ | (15,278) | | | $ | 263,142 | | | $ | (86,895) | | | $ | (27,510) | | | $ | 133,789 | |
Share-based compensation expense | 101,524 | | | — | | | (24) | | | (245) | | | — | | | — | | | (269) | |
Total comprehensive income | — | | | — | | | — | | | — | | | 10,140 | | | 100 | | | 10,240 | |
Balance - June 30, 2023 | 33,092,992 | | | $ | 330 | | | $ | (15,302) | | | $ | 262,897 | | | $ | (76,755) | | | $ | (27,410) | | | $ | 143,760 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Balance - December 31, 2023 | 33,322,535 | | | $ | 333 | | | $ | (16,150) | | | $ | 265,217 | | | $ | (46,184) | | | $ | (30,284) | | | $ | 172,932 | |
Share-based compensation expense | 3,438 | | | — | | | (2) | | | 664 | | | — | | | — | | | 662 | |
Total comprehensive income (loss) | — | | | — | | | — | | | — | | | 2,939 | | | (994) | | | 1,945 | |
Balance - March 31, 2024 | 33,325,973 | | | $ | 333 | | | $ | (16,152) | | | $ | 265,881 | | | $ | (43,245) | | | $ | (31,278) | | | $ | 175,539 | |
Share-based compensation expense | 117,991 | | | 1 | | | (18) | | | 1,349 | | | — | | | — | | | 1,332 | |
Total comprehensive loss | — | | | — | | | — | | | — | | | (1,601) | | | (5,663) | | | (7,264) | |
Balance - June 30, 2024 | 33,443,964 | | | $ | 334 | | | $ | (16,170) | | | $ | 267,230 | | | $ | (44,846) | | | $ | (36,941) | | | $ | 169,607 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
COMMERCIAL VEHICLE GROUP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(Amounts in thousands, except for share and per share amounts and where specifically disclosed)
1. Description of Business and Basis of Presentation
Commercial Vehicle Group, Inc. and its subsidiaries, is a global provider of systems, assemblies and components to the global commercial vehicle market, the electric vehicle market, and the industrial automation markets. References herein to the "Company", "CVG", "we", "our", or "us" refer to Commercial Vehicle Group, Inc. and its subsidiaries.
We have manufacturing operations in the United States, Mexico, China, United Kingdom, Czech Republic, Ukraine, Thailand, India, Australia and Morocco. Our products are primarily sold in North America, Europe, and the Asia-Pacific region.
We primarily manufacture customized products to meet the requirements of our customers. We believe our products are used by a majority of the North American Commercial Truck manufacturers, many construction vehicle original equipment manufacturers ("OEMs"), parts and service dealers, distributors, as well as top e-commerce retailers.
The unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") in the United States of America and the rules and regulations of the Securities and Exchange Commission and include the accounts of the Company and its subsidiaries. Except as disclosed within these condensed notes to unaudited quarterly consolidated financial statements, the adjustments made were of a normal, recurring nature. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted.
The preparation of financial statements in conformity with GAAP in the United States requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.
These condensed notes to unaudited quarterly consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"), which includes a complete set of footnote disclosures, including the Company's significant accounting policies.
2. Recently Issued Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment's profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This ASU will likely result in us including the additional required disclosures when adopted. We are currently evaluating the provisions of this ASU and expect to adopt them for the year ending December 31, 2024.
In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted.
3. Revenue Recognition
We had outstanding customer accounts receivable, net of allowances, of $138.7 million as of June 30, 2024 and $133.9 million as of December 31, 2023. We generally do not have material other assets or liabilities associated with customer arrangements.
Revenue Disaggregation - The following is the composition, by product category, of our revenues:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, 2024 | | |
| Vehicle Solutions | | Electrical Systems | | Aftermarket and Accessories | | Industrial Automation | | Total |
Seats | $ | 66,239 | | | $ | — | | | $ | 15,465 | | | $ | — | | | $ | 81,704 | |
Electrical wire harnesses, panels and assemblies | 699 | | | 50,152 | | | 3,487 | | | 4,752 | | | 59,090 | |
Plastic & Trim components | 42,142 | | | — | | | 2,186 | | | — | | | 44,328 | |
Industrial Automation | — | | | — | | | — | | | 238 | | | 238 | |
Cab structures | 30,624 | | | — | | | 629 | | | — | | | 31,253 | |
Mirrors, wipers and controls | 1,200 | | | — | | | 12,093 | | | — | | | 13,293 | |
Total | $ | 140,904 | | | $ | 50,152 | | | $ | 33,860 | | | $ | 4,990 | | | $ | 229,906 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, 2023 | | |
| Vehicle Solutions | | Electrical Systems | | Aftermarket and Accessories | | Industrial Automation | | Total |
Seats | $ | 70,895 | | | $ | — | | | $ | 18,714 | | | $ | — | | | $ | 89,609 | |
Electrical wire harnesses, panels and assemblies | — | | | 63,625 | | | 3,983 | | | 7,567 | | | 75,175 | |
Plastic & Trim components | 48,528 | | | — | | | 1,473 | | | — | | | 50,001 | |
Industrial Automation | — | | | — | | | — | | | 1,443 | | | 1,443 | |
Cab structures | 31,815 | | | — | | | 567 | | | — | | | 32,382 | |
Mirrors, wipers and controls | 1,492 | | | — | | | 12,092 | | | — | | | 13,584 | |
Total | $ | 152,730 | | | $ | 63,625 | | | $ | 36,829 | | | $ | 9,010 | | | $ | 262,194 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2024 | | |
| Vehicle Solutions | | Electrical Systems | | Aftermarket and Accessories | | Industrial Automation | | Total |
Seats | $ | 129,693 | | | $ | — | | | $ | 32,279 | | | $ | — | | | $ | 161,972 | |
Electrical wire harnesses, panels and assemblies | 1,229 | | | 105,947 | | | 6,418 | | | 9,034 | | | 122,628 | |
Plastic & Trim components | 82,008 | | | — | | | 3,975 | | | — | | | 85,983 | |
Industrial Automation | — | | | — | | | — | | | 258 | | | 258 | |
Cab structures | 63,325 | | | — | | | 1,067 | | | — | | | 64,392 | |
Mirrors, wipers and controls | 2,559 | | | — | | | 24,182 | | | — | | | 26,741 | |
Total | $ | 278,814 | | | $ | 105,947 | | | $ | 67,921 | | | $ | 9,292 | | | $ | 461,974 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2023 | | |
| Vehicle Solutions | | Electrical Systems | | Aftermarket and Accessories | | Industrial Automation | | Total |
Seats | $ | 147,886 | | | $ | — | | | $ | 37,878 | | | $ | — | | | $ | 185,764 | |
Electrical wire harnesses, panels and assemblies | — | | | 118,373 | | | 7,769 | | | 9,845 | | | 135,987 | |
Plastic & Trim components | 94,951 | | | — | | | 4,346 | | | — | | | 99,297 | |
Industrial Automation | — | | | — | | | — | | | 8,912 | | | 8,912 | |
Cab structures | 65,718 | | | — | | | 1,565 | | | — | | | 67,283 | |
Mirrors, wipers and controls | 4,760 | | | — | | | 22,900 | | | — | | | 27,660 | |
Total | $ | 313,315 | | | $ | 118,373 | | | $ | 74,458 | | | $ | 18,757 | | | $ | 524,903 | |
| | | | | | | | | |
| | | | | | | | | |
4. Debt
Debt consisted of the following:
| | | | | | | | | | | |
| June 30, 2024 | | December 31, 2023 |
Term loan facility | $ | 135,000 | | | $ | 141,563 | |
Revolving credit facility | 7,000 | | | — | |
| | | |
Unamortized issuance costs | (42) | | | (49) | |
| $ | 141,958 | | | $ | 141,514 | |
Less: current portion of long-term debt | (17,500) | | | (15,313) | |
Total long-term debt, net of current portion | $ | 124,458 | | | $ | 126,201 | |
Credit Agreement
On April 30, 2021, the Company and certain of its subsidiaries entered into a credit agreement (the “Credit Agreement”) between, among others, Bank of America, N.A. as administrative agent (the “Administrative Agent”) and other lenders party thereto (the “Lenders”) pursuant to which the Lenders made available a $150 million Term Loan Facility (the “Term Loan Facility”) and a $125 million Revolving Credit Facility (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”).
On May 12, 2022, the Company and certain of its subsidiaries entered into a second amendment (the “Amendment”) to its Credit Agreement pursuant to which the Lenders upsized the existing term loan facility to $175 million in aggregate principal amount and increased the revolving credit facility commitments by $25 million to an aggregate of $150 million in revolving credit facility commitments.
On July 30, 2024, the Company and certain of its subsidiaries, as guarantors, entered into an Amendment No. 3, which amends the Credit Agreement. Amendment No.3 amends the terms of the existing Credit Agreement to limit the mandatory prepayment requirements for certain specified asset dispositions of the Company and certain of its subsidiaries.
At June 30, 2024, we had $7.0 million of borrowings under the Revolving Credit Facility, outstanding letters of credit of $1.1 million and availability of $141.9 million. Combined with availability under our China Credit Facility (described below) of approximately $11.0 million, total consolidated availability was $152.9 million at June 30, 2024. The unamortized deferred financing fees associated with the Revolving Credit Facility of $0.8 million and $1.0 million as of June 30, 2024 and December 31, 2023, respectively, are being amortized over the remaining life of the Credit Agreement. At December 31, 2023, we had no borrowings under the Revolving Credit Facility and we had outstanding letters of credit of $1.2 million.
Covenants and other terms
The Credit Agreement includes (a) a minimum consolidated fixed charge coverage ratio of 1.20:1.0, and (b) a maximum consolidated total leverage ratio of 3.00:1.0.
We were in compliance with these covenants as of June 30, 2024.
Repayment and prepayment
The Credit Agreement requires the Company to make quarterly amortization payments to the Term Loan Facility at an annualized rate of the loans under the Term Loan Facility for every year as follows: 5.0%, 7.5%, 10.0%, 12.5% and 15.0%. The
Credit Agreement also requires all outstanding amounts under the Credit Facilities to be repaid in full on the Maturity Date. See Note 15, Commitments and Contingencies, for the future minimum principal payments due on long-term debt for the next five years.
Foreign Facility
During the quarter ended March 31, 2023, we established a credit facility in China consisting of a line of credit which is subject to annual renewal (the "China Credit Facility"). The China Credit Facility was renewed during the quarter ended December 31, 2023, with availability of approximately $11.3 million (denominated in the local currency). We utilize the China Credit Facility to meet local working capital demands, fund letters of credit and bank guarantees, and support other short-term cash requirements of our China operations. We had no outstanding borrowings under the China Credit Facility as of June 30, 2024 and December 31, 2023. At June 30, 2024, we had $11.0 million (denominated in the local currency and this amount varies based on the currency conversion rate) of availability under the China Credit Facility.
Cash Paid for Interest
For the six months ended June 30, 2024 and 2023, cash payments for interest were $6.0 million and $6.6 million, respectively.
5. Intangible Assets
Our definite-lived intangible assets were comprised of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | June 30, 2024 | | December 31, 2023 |
| Weighted- Average Amortization Period | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
Trademarks/tradenames | 22 years | | $ | 11,467 | | | $ | (5,942) | | | $ | 5,525 | | | $ | 11,485 | | | $ | (5,758) | | | $ | 5,727 | |
Customer relationships | 14 years | | 6,526 | | | (4,730) | | | 1,796 | | | 14,132 | | | (10,071) | | | 4,061 | |
Technical know-how | 5 years | | 9,790 | | | (9,382) | | | 408 | | | 9,790 | | | (8,403) | | | 1,387 | |
Covenant not to compete | 5 years | | 330 | | | (316) | | | 14 | | | 330 | | | (283) | | | 47 | |
| | | $ | 28,113 | | | $ | (20,370) | | | $ | 7,743 | | | $ | 35,737 | | | $ | (24,515) | | | $ | 11,222 | |
The aggregate intangible asset amortization expense was $0.7 million and $0.9 million for the three months ended June 30, 2024 and 2023, respectively. The aggregate intangible asset amortization expense was $1.5 million and $1.7 million for the six months ended June 30, 2024 and 2023 respectively.
6. Fair Value Measurement
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels, and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities.
Level 2 - Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
Level 3 - Significant unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
Our financial instruments consist of cash, accounts receivable, accounts payable, accrued liabilities, pension assets and liabilities. The carrying value of these instruments approximates fair value as a result of the short duration of such instruments or due to the variability of the interest cost associated with such instruments.
Recurring Measurements
Foreign Currency Forward Exchange Contracts. Our derivative assets and liabilities represent foreign exchange contracts that are measured at fair value using observable market inputs such as forward rates, interest rates, our own credit risk and counterparty credit risk. Based on the utilization of these inputs, the derivative assets and liabilities are classified as Level 2. To
manage our risk for transactions denominated in Mexican Pesos and Czech Crown, we have entered into forward exchange contracts that are designated as cash flow hedge instruments, which are recorded in the Condensed Consolidated Balance Sheets at fair value. The gains and losses as a result of the changes in fair value of the hedge contract for transactions denominated in Mexican Pesos are deferred in accumulated other comprehensive loss and recognized in cost of revenues in the period the related hedge transactions are settled. As of June 30, 2024, hedge contracts for transactions denominated in Czech Crown were not designated as a hedging instruments; therefore, they are marked-to-market and the fair value of agreements is recorded in the Condensed Consolidated Balance Sheets with the offsetting gains and losses recognized in other (income) expense and recognized in cost of revenues in the period the related hedge transactions are settled in the Condensed Consolidated Statements of Operations.
Interest Rate Swaps. To manage our exposure to variable interest rates, we have entered into interest rate swaps to exchange, at a specified interval, the difference between fixed and variable interest amounts calculated by reference to an agreed upon notional principal amount. The interest rate swaps are intended to mitigate the impact of rising interest rates on the Company and covers approximately 50% of outstanding debt under the Term Loan Facility. Any changes in fair value are included in earnings or deferred through Accumulated other comprehensive loss, depending on the nature and effectiveness of the offset. Any ineffectiveness in a cash flow hedging relationship is recognized immediately in earnings in the consolidated statements of operations.
The fair values of our derivative assets and liabilities measured on a recurring basis are categorized as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | June 30, 2024 | | December 31, 2023 |
| | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 |
Assets: | | | | | | | | | | | | | | | | |
Foreign exchange contract designated as hedging instruments | | $ | 151 | | | $ | — | | | $ | 151 | | | $ | — | | | $ | 1,318 | | | $ | — | | | $ | 1,318 | | | $ | — | |
Interest rate swap agreement | | $ | 1,889 | | | $ | — | | | $ | 1,889 | | | $ | — | | | $ | 1,073 | | | $ | — | | | $ | 1,073 | | | $ | — | |
Liabilities: | | | | | | | | | | | | | | | | |
Foreign exchange contract designated as hedging instruments | | $ | 1,704 | | | $ | — | | | $ | 1,704 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Foreign exchange contract not designated as hedging instruments | | $ | 216 | | | $ | — | | | $ | 216 | | | $ | — | | | $ | 304 | | | $ | — | | | $ | 304 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
The following table summarizes the notional amount of our open foreign exchange contracts:
| | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2024 | | December 31, 2023 |
| U.S. $ Equivalent | | U.S. $ Equivalent Fair Value | | U.S. $ Equivalent | | U.S. $ Equivalent Fair Value |
Commitments to buy or sell currencies - Foreign exchange contract designated as hedging instruments | $ | 83,055 | | | $ | 85,424 | | | $ | 56,741 | | | $ | 58,094 | |
Commitments to buy or sell currencies - Foreign exchange contract not designated as hedging instruments | $ | 13,655 | | | $ | 14,197 | | | $ | 16,608 | | | $ | 16,806 | |
The following table summarizes the fair value and presentation of derivatives in the Condensed Consolidated Balance Sheets:
| | | | | | | | | | | | | | | | | |
| Derivative Asset |
| Balance Sheet Location | | Fair Value |
| | June 30, 2024 | | December 31, 2023 |
| | | | | |
Foreign exchange contract designated as hedging instruments | Other current assets | | $ | 120 | | | $ | 1,179 | |
Foreign exchange contract designated as hedging instruments | Other assets, net | | $ | 31 | | | $ | 139 | |
Interest rate swap agreement | Other assets, net | | $ | 1,889 | | | $ | 1,073 | |
| | | | | |
| | | | | | | | | | | | | | | | | |
| Derivative Liability |
| Balance Sheet Location | | Fair Value |
| | June 30, 2024 | | December 31, 2023 |
Foreign exchange contract designated as hedging instruments | Accrued liabilities and other | | $ | 1,548 | | | $ | — | |
Foreign exchange contract designated as hedging instruments | Other long-term liabilities | | $ | 156 | | | $ | — | |
Foreign exchange contracts not designated as hedging instruments | Accrued liabilities and other | | $ | 213 | | | $ | 304 | |
Foreign exchange contracts not designated as hedging instruments | Other long-term liabilities | | $ | 3 | | | $ | — | |
| | | | | |
| | | | | | | | | | | | | | | | | |
| Derivative Equity |
| Balance Sheet Location | | Fair Value |
| | June 30, 2024 | | December 31, 2023 |
Foreign exchange contracts designated as hedging instruments | Accumulated other comprehensive loss | | $ | (796) | | | $ | 1,354 | |
Interest rate swap agreements | Accumulated other comprehensive loss | | $ | 3,692 | | | $ | 3,484 | |
The following table summarizes the effect of derivative instruments on the Condensed Consolidated Statements of Operations:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | | Six Months Ended June 30, |
| | | 2024 | | 2023 | | 2024 | | 2023 |
| Location of Gain (Loss) on Derivatives Recognized in Income (Loss) | | Amount of Gain (Loss) on Derivatives Recognized in Income (Loss) | | Amount of Gain (Loss) on Derivatives Recognized in Income (Loss) |
Foreign exchange contracts designated as hedging instruments | Cost of revenues | | $ | 513 | | | $ | 1,242 | | | $ | 602 | | | $ | 1,693 | |
Interest rate swap agreement | Interest expense | | $ | 403 | | | $ | 365 | | | $ | 819 | | | $ | 630 | |
Interest rate swap agreement settled in 2022 | Interest expense | | $ | 188 | | | $ | 188 | | | $ | 377 | | | $ | 377 | |
Foreign exchange contracts | Other (income) expense | | $ | 304 | | | $ | (157) | | | $ | 98 | | | $ | 312 | |
We consider the impact of our credit risk on the fair value of the contracts, as well as our ability to honor obligations under the contract.
Other Fair Value Measurements
The fair value of long-term debt obligations is based on a fair value model utilizing observable inputs. Based on these inputs, our long-term debt fair value as disclosed is classified as Level 2. The carrying amounts and fair values of our long-term debt obligations are as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2024 | | December 31, 2023 |
| Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value |
Term loan and security agreement 1 | $ | 134,958 | | | $ | 133,946 | | | $ | 141,514 | | | $ | 139,213 | |
Revolving credit facility | $ | 7,000 | | | $ | 7,000 | | | $ | — | | | $ | — | |
1.Presented in the Condensed Consolidated Balance Sheets as the current portion of long-term debt of $17.5 million and long-term debt of $117.5 million as of June 30, 2024 and current portion of long-term debt of $15.3 million and long-term debt of $126.2 million as of December 31, 2023.
7. Leases
The components of lease expense are as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Operating lease cost | $ | 2,842 | | | $ | 2,373 | | | $ | 5,517 | | | $ | 4,721 | |
Finance lease cost | 31 | | | 41 | | | 65 | | | 88 | |
Short-term lease cost | 1,264 | | | 1,994 | | | 2,195 | | | 3,925 | |
Total lease expense | $ | 4,137 | | | $ | 4,408 | | | $ | 7,777 | | | $ | 8,734 | |
Supplemental balance sheet information related to leases is as follows:
| | | | | | | | | | | | | | |
| Balance Sheet Location | June 30, 2024 | | December 31, 2023 |
Operating Leases | | | | |
Right-of-use assets, net | Other assets, net | $ | 32,368 | | | $ | 31,165 | |
| | | | |
Current liabilities | Accrued liabilities and other | 7,434 | | | 7,502 | |
Non-current liabilities | Other long-term liabilities | 25,726 | | | 24,417 | |
Total operating lease liabilities | | $ | 33,160 | | | $ | 31,919 | |
| | | | |
Finance Leases | | | | |
Right-of-use assets, net | Other assets, net | $ | 144 | | | $ | 205 | |
| | | | |
Current liabilities | Accrued liabilities and other | 94 | | | 108 | |
Non-current liabilities | Other long-term liabilities | 60 | | | 107 | |
Total finance lease liabilities | | $ | 154 | | | $ | 215 | |
Cash payments on operating leases were $5.2 million and $4.7 million for the six months ended June 30, 2024 and 2023 respectively.
Anticipated future lease costs, which are based in part on certain assumptions to approximate annual rental commitments under non-cancelable leases, are as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Operating | | Financing | | Total |
Remainder of 2024 | | $ | 5,460 | | | $ | 51 | | | $ | 5,511 | |
2025 | | 10,354 | | | 78 | | | 10,432 | |
2026 | | 8,207 | | | 30 | | | 8,237 | |
2027 | | 5,244 | | | 7 | | | 5,251 | |
2028 | | 3,770 | | | — | | | 3,770 | |
Thereafter | | 17,883 | | | — | | | 17,883 | |
Total lease payments | | $ | 50,918 | | | $ | 166 | | | $ | 51,084 | |
Less: Imputed interest | | (17,758) | | | (12) | | | (17,770) | |
Present value of lease liabilities | | $ | 33,160 | | | $ | 154 | | | $ | 33,314 | |
8. Income Taxes
We recorded a $0.3 million tax benefit, or 17% effective tax rate for the three months ended June 30, 2024, and $0.8 million tax provision, or 38% effective tax rate for the six months ended June 30, 2024, compared to a $2.7 million tax provision, or 21% effective tax rate for the three months ended June 30, 2023, and $5.9 million tax provision, or 24% effective tax rate for the six months ended June 30, 2023. Income tax expense is based on an estimated annual effective tax rate, which requires management to make its best estimate of annual pretax income or loss. During the year, management regularly updates forecasted annual pretax results for the various countries in which the Company operates based on changes in factors such as prices, shipments, product mix, material inflation and manufacturing operations. To the extent that actual 2024 pretax results for U.S. and foreign income or loss vary from estimates, the actual income tax expense recognized in 2024 could be different from the forecasted amount used to estimate the income tax expense for the three and six months ended June 30, 2024.
For the six months ended June 30, 2024 and 2023, cash paid for taxes, net of refunds received, were $3.6 million and $5.9 million, respectively.
9. Pension and Other Post-Retirement Benefit Plans
The components of net periodic (benefit) cost related to pension and other post-retirement benefit plans is as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Non-U.S. Pension Plan | | | | |
| | | Three Months Ended June 30, | | | | |
| | | | | 2024 | | 2023 | | | | | | | | |
| | | | | | | | | | | | | | | |
Interest cost | | | | | $ | 347 | | | $ | 358 | | | | | | | | | |
Expected return on plan assets | | | | | (315) | | | (307) | | | | | | | | | |
Amortization of prior service cost | | | | | 13 | | | 13 | | | | | | | | | |
Recognized actuarial loss | | | | | 199 | | | 192 | | | | | | | | | |
Net cost | | | | | $ | 244 | | | $ | 256 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Non-U.S. Pension Plan | | | | |
| | | Six months ended June 30, | | | | |
| | | | | 2024 | | 2023 | | | | | | | | |
| | | | | | | | | | | | | | | |
Interest cost | | | | | $ | 696 | | | $ | 705 | | | | | | | | | |
Expected return on plan assets | | | | | (632) | | | (602) | | | | | | | | | |
Amortization of prior service cost | | | | | 26 | | | 25 | | | | | | | | | |
Recognized actuarial loss | | | | | 399 | | | 377 | | | | | | | | | |
Net cost | | | | | $ | 489 | | | $ | 505 | | | | | | | | | |
Net periodic cost components, not inclusive of service costs, are recognized in other (income) expense within the Condensed Consolidated Statements of Operations.
10. Performance Awards
The following table summarizes performance awards granted in the form of cash awards under the equity incentive plans:
| | | | | | | | |
| | Amount |
Adjusted Award Value at December 31, 2023 | | $ | 1,901 | |
New grants | | 3,002 | |
Forfeitures | | (88) | |
Adjustments | | (3,187) | |
Payments | | (324) | |
Adjusted Award Value at June 30, 2024 | | $ | 1,304 | |
Unrecognized compensation expense was $2.0 million and $5.2 million as of June 30, 2024 and 2023, respectively.
11. Share-Based Compensation
The company's outstanding share-based compensation is comprised solely of restricted stock awards and performance stock awards to be settled in stock.
As of June 30, 2024, there was approximately $5.7 million of unrecognized compensation expense related to non-vested share-based compensation arrangements granted under our equity incentive plans. This expense is subject to future adjustments and forfeitures and will be recognized on a straight-line basis over the remaining period listed above for each grant.
A summary of the status of our restricted stock awards as of June 30, 2024 and changes during the six months ended June 30, 2024, are presented below:
| | | | | | | | | | | |
| 2024 |
| Shares (in thousands) | | Weighted- Average Grant-Date Fair Value |
Nonvested - December 31, 2023 | 591 | | | $ | 7.66 | |
Granted | 490 | | | 6.15 | |
Vested | (126) | | | 9.00 | |
Forfeited | (43) | | | 6.92 | |
Nonvested - June 30, 2024 | 912 | | | $ | 6.70 | |
As of June 30, 2024, a total of 1.4 million shares were available for future grants from the shares authorized for award under our 2020 Equity Incentive Plan, including cumulative forfeitures.
12. Stockholders’ Equity
Common Stock — Our authorized capital stock consists of 60,000,000 shares of common stock with a par value of $0.01 per share; of which, 33,443,964 and 33,322,535 shares were issued and outstanding as of June 30, 2024 and December 31, 2023, respectively.
Preferred Stock — Our authorized capital stock also consists of 5,000,000 shares of preferred stock with a par value of $0.01 per share, with no preferred shares outstanding as of June 30, 2024 and December 31, 2023.
Earnings (Loss) Per Share - Basic earnings (loss) per share is determined by dividing net income (loss) by the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per share presented is determined by dividing net income (loss) by the weighted average number of common shares and potential common shares outstanding during the period as determined by the treasury stock method. Potential common shares are included in the diluted earnings per share calculation when dilutive.
Diluted earnings per share for the three and six months ended June 30, 2024 and 2023 includes the effect of potential common shares issuable when dilutive, and is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2024 | | 2023 | | 2024 | | 2023 |
Net income (loss) | | $ | (1,601) | | | $ | 10,140 | | | $ | 1,338 | | | $ | 18,840 | |
Weighted average number of common shares outstanding (in '000s) | | 33,393 | | | 33,051 | | | 33,359 | | | 32,960 | |
Dilutive effect of restricted stock grants after application of the Treasury Stock Method (in '000s) | | — | | | 378 | | | 475 | | | 352 | |
Dilutive shares outstanding | | 33,393 | | | 33,429 | | | 33,834 | | | 33,312 | |
Basic earnings (loss) per share | | $ | (0.05) | | | $ | 0.31 | | | $ | 0.04 | | | $ | 0.57 | |
Diluted earnings (loss) per share | | $ | (0.05) | | | $ | 0.30 | | | $ | 0.04 | | | $ | 0.57 | |
There were 367 thousand outstanding restricted shares awarded that were excluded from the calculation of diluted earnings per share for the three months ended June 30, 2024 and no outstanding restricted shares awarded were excluded from the calculation of diluted earnings per share for the three months ended June 30, 2023. There were 405 thousand outstanding restricted shares awarded that were excluded from the calculation of diluted earnings per share for the six months ended June 30, 2024 and 11 thousand outstanding restricted shares awarded that were excluded from the calculation of diluted earnings per share for the six months ended June 30, 2023.
13. Other Comprehensive Income (Loss)
The after-tax changes in accumulated other comprehensive income (loss), are as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| Foreign currency translation adjustment | | Pension and post-retirement benefits plans | | Derivative instruments | | Accumulated other comprehensive income (loss) |
Balance - December 31, 2023 | $ | (23,227) | | | $ | (11,896) | | | $ | 4,839 | | | $ | (30,284) | |
Net current period change | (3,856) | | | (1,071) | | | (145) | | | (5,072) | |
Amounts reclassified into earnings | — | | | 213 | | | (1,798) | | | (1,585) | |
| | | | | | | |
Balance - June 30, 2024 | $ | (27,083) | | | $ | (12,754) | | | $ | 2,896 | | | $ | (36,941) | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Foreign currency translation adjustment | | Pension and post-retirement benefit plans | | Derivative instruments | | Accumulated other comprehensive income (loss) |
Balance - December 31, 2022 | $ | (24,811) | | | $ | (11,512) | | | $ | 4,773 | | | $ | (31,550) | |
Net current period change | 1,506 | | | (213) | | | 5,341 | | | 6,634 | |
Amounts reclassified into earnings | — | | | 206 | | | (2,700) | | | (2,494) | |
| | | | | | | |
Balance - June 30, 2023 | $ | (23,305) | | | $ | (11,519) | | | $ | 7,414 | | | $ | (27,410) | |
| | | | | |
The related tax effects allocated to each component of other comprehensive income (loss) are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| Three Months Ended June 30, 2024 | | Six Months Ended June 30, 2024 |
| Before Tax Amount | | Tax Expense | | After Tax Amount | | Before Tax Amount | | Tax Expense | | After Tax Amount |
Net current period change | | | | | | | | | | | |
Cumulative translation adjustment | $ | (1,297) | | | $ | — | | | $ | (1,297) | | | $ | (3,856) | | | $ | — | | | $ | (3,856) | |
Net actuarial gain and prior service credit | (498) | | | 1 | | | (497) | | | (1,073) | | | 2 | | | (1,071) | |
Derivative instruments | (3,880) | | | 1,009 | | | (2,871) | | | (132) | | | (13) | | | (145) | |
Net unrealized gain (loss) | $ | (5,675) | | | $ | 1,010 | | | $ | (4,665) | | | $ | (5,061) | | | $ | (11) | | | $ | (5,072) | |
Amounts reclassified into earnings: | | | | | | | | | | | |
Actuarial loss and prior service cost | $ | 106 | | | $ | — | | | $ | 106 | | | $ | 213 | | | $ | — | | | $ | 213 | |
Derivative instruments | (1,495) | | | 391 | | | (1,104) | | | (2,370) | | | 572 | | | (1,798) | |
Net realized gain (loss) | $ | (1,389) | | | $ | 391 | | | $ | (998) | | | $ | (2,157) | | | $ | 572 | | | $ | (1,585) | |
Total other comprehensive income (loss) | $ | (7,064) | | | $ | 1,401 | | | $ | (5,663) | | | $ | (7,218) | | | $ | 561 | | | $ | (6,657) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, 2023 | | Six Months Ended June 30, 2023 |
| Before Tax Amount | | Tax Expense | | After Tax Amount | | Before Tax Amount | | Tax Expense | | After Tax Amount |
Net current period change | | | | | | | | | | | |
Cumulative translation adjustment | $ | (1,051) | | | $ | — | | | $ | (1,051) | | | $ | 1,506 | | | $ | — | | | $ | 1,506 | |
Net actuarial gain and prior service credit | (250) | | | (2) | | | (252) | | | (214) | | | 1 | | | (213) | |
Derivative instruments | 4,301 | | | (1,208) | | | 3,093 | | | 7,338 | | | (1,997) | | | 5,341 | |
Net unrealized gain (loss) | $ | 3,000 | | | $ | (1,210) | | | $ | 1,790 | | | $ | 8,630 | | | $ | (1,996) | | | $ | 6,634 | |
Amounts reclassified into earnings: | | | | | | | | | | | |
Actuarial loss and prior service cost | $ | 105 | | | $ | — | | | $ | 105 | | | $ | 206 | | |