Restatement and Revision of Previously Issued Consolidated Financial Statements

12 Months Ended

Dec. 31, 2019

Accounting Changes and Error Corrections [Abstract]

Restatement and Revision of Previously Issued Consolidated Financial Statements

Restatement of Previously Issued Consolidated Financial Statements

Restatement

During the quarter ended March 31, 2020, the Company discovered certain accounting irregularities at its Mexican subsidiaries. The Company’s Audit Review Committee commenced an internal investigation, with the assistance of outside counsel and other third party experts. As a result of this investigation, the Company, along with the Audit Review Committee and its third party experts, concluded that certain former employees of one of the Company’s Mexican subsidiaries engaged in unauthorized transactions with the Company’s Mexican subsidiaries that resulted in expenditures being deferred on the balance sheet beyond the period for which the costs pertained. As a result, the Company recorded a non-cash write-off for certain amounts included in the Company’s historical consolidated financial statements in trade receivables and prepaid expenses and other current assets, among other corrections, related to these transactions, and restated its consolidated financial statements as of and for the years ended December 31, 2019, 2018, and 2017 and each of the quarters during the years ended December 31, 2019 and 2018. During the course of the investigation, certain expenses at the Company's Mexican subsidiaries were found to be incorrectly classified within the consolidated statement of operations and have also been corrected in the restatement. These misstatements are described in restatement reference (a) through (d) below. The restated interim financial information for the relevant unaudited interim financial information for the quarterly periods of 2019 and 2018, is included in Note 16, Quarterly Results of Operations (Unaudited).

The restatement also includes corrections for other errors identified as immaterial, individually and in the aggregate, to our consolidated financial statements.

Description of Misstatements

(a) Write-off of Assets: Certain former employees of one of the Company's Mexican subsidiaries engaged in unauthorized transactions with the Company’s Mexican subsidiaries and vendors in which the employees had an interest. In doing so, expenditures were deferred on the balance sheet beyond the period for which the costs pertained. The amounts were recorded as trade receivables, prepaid expenses and other current assets, and reductions in accrued liabilities. The amounts have been written off to selling, general and administrative expenses. Where these write-offs caused the balance in prepaid expenses and other current assets to become a liability, the balance has been reclassified from prepaid expenses and other assets to other current liabilities.

(b) Reversal of Revenue: Certain former employees of one of our Mexican subsidiaries engaged in sales activities to customers in which the employees had an interest. The Company concluded that these unauthorized transactions did not meet the criteria for revenue recognition at the time of sale and the revenue has been reversed.

(c) Correction of misclassification of Selling and Marketing Expenses: Certain former employees of one of our Mexican subsidiaries engaged a third-party, in which the employees had an interest, to perform selling and marketing activities on behalf of the Mexican subsidiaries. Amounts paid for the selling and marketing activities had previously been treated as variable consideration and reflected as a reduction to revenue; however, the amounts should be reflected as selling, general and administrative expenses.

(d) Correction for the timing of recognition of customer price concessions: Customer price concessions at our Mexican subsidiaries were not accrued timely in order to obscure the increased expenses due to unauthorized transactions as described above.

(e) Tax adjustments for corrections: The tax impacts of the corrections have been recorded.

(f) Correction of other immaterial errors

Description of Restatement Tables

The following tables present the impact of the restatement on our previously reported consolidated statements of operations, statements of comprehensive income (loss), balance sheets, statements of equity, and statements of cash flows for the years ended December 31, 2019 and December 31, 2018 and the impact of the restatement on our previously reported consolidated statements of operations, statements of comprehensive income (loss), statements of equity, and statements of cash flows for the year ended December 31, 2017. The values as previously reported were derived from our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed on February 26, 2020.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended December 31, 2019
	As Previously Reported			Restatement Impacts			Restatement References	As Restated
	(In thousands, except per share data)
Revenue	$	612,843		$	(1,057	)	a,b,c,d,f	$	611,786
Cost of sales	483,298			(64		)	f	483,234
Gross profit	129,545			(993		)		128,552
Selling, general and administrative expenses	91,302			9,079			a,c,f	100,381
Amortization of intangible assets	1,377			—				1,377
Operating profit	36,866			(10,072		)		26,794
Interest expense, net	2,975			—				2,975
Other expense (income), net	(502		)	144			f	(358		)
Income from continuing operations before income taxes	34,393			(10,216		)		24,177
Income tax expense	9,315			(231		)	e	9,084
Net income from continuing operations	25,078			(9,985		)		15,093
Loss from discontinued operations, net of tax	(28,600		)	—				(28,600		)
Net income (loss)	$	(3,522	)	$	(9,985	)		$	(13,507	)
Basic and diluted earnings (loss) per share:
Continuing operations	$	1.83		$	(0.73	)		$	1.10
Discontinued operations	(2.09		)	—				(2.09		)
Basic and diluted earnings (loss) per share	$	(0.26	)	$	(0.73	)		$	(0.99	)
Basic weighted average shares outstanding	13,690							13,690
Diluted weighted average shares outstanding	13,726							13,726

(a) Write-off of Assets: The correction of these misstatements resulted in a decrease to revenue of $0.4 million and an increase to selling, general and administrative ("SG&A") expense of $6.9 million

(b) Reversal of Revenue: The correction of these misstatements resulted in a decrease to revenue of $1.1 million

(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $1.6 million

(d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in a decrease to revenue of $1.3 million

(e) Tax adjustments for corrections: The correction of these misstatements resulted in a decrease to income tax expense of $0.2 million

(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to revenue of $0.1 million, a decrease to cost of sales of $0.1 million, an increase to SG&A expense of $0.6 million, and an increase in other expense of $0.1 million

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended December 31, 2018
	As Previously Reported			Restatement Impacts			Restatement References	As Restated
Revenue	$	629,710		$	372		c,f	$	630,082
Cost of sales	492,195			(1,165		)	f	491,030
Gross profit	137,515			1,537				139,052
Selling, general and administrative expenses	97,964			6,157			a,c,f	104,121
Amortization of intangible assets	1,381			—				1,381
Operating profit	38,170			(4,620		)		33,550
Interest expense, net	2,916			—				2,916
Other expense (income), net	293			(144		)	f	149
Income from continuing operations before income taxes	34,961			(4,476		)		30,485
Income tax expense	7,816			(390		)	e	7,426
Net income from continuing operations	27,145			(4,086		)		23,059
Loss from discontinued operations, net of tax	(5,361		)	—				(5,361		)
Net income (loss)	$	21,784		$	(4,086	)		$	17,698
Basic and diluted earnings (loss) per share:
Continuing operations	$	1.98		$	(0.30	)		$	1.68
Discontinued operations	(0.39		)	—				(0.39		)
Basic and diluted earnings (loss) per share	$	1.59		$	(0.30	)		$	1.29
Basic weighted average shares outstanding	13,699							13,699
Diluted weighted average shares outstanding	13,731							13,731

(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $4.9 million

(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $1.5 million

(e) Tax adjustments for corrections: The correction of these misstatements resulted in a decrease to income tax expense of $0.4 million

(f) Correction of other immaterial errors: The correction of these misstatements resulted in a decrease to revenue of $1.1 million, a decrease to cost of sales of $1.2 million, a decrease to SG&A expense of $0.2 million, and a decrease in other expense of $0.1 million

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended December 31, 2017
	As Previously Reported			Restatement Impacts			Restatement References	As Restated
Revenue	$	612,229		$	(173	)	c,d,f	$	612,056
Cost of sales	477,220			(1,281		)	f	475,939
Gross profit	135,009			1,108				136,117
Selling, general and administrative expenses	93,700			3,080			a,c,f	96,780
Amortization of intangible assets	1,381			—				1,381
Operating profit	39,928			(1,972		)		37,956
Interest expense, net	1,572			—				1,572
Other expense (income), net	(692		)	—				(692		)
Income from continuing operations before income taxes	39,048			(1,972		)		37,076
Income tax expense	18,918			49			e	18,967
Net income from continuing operations	20,130			(2,021		)		18,109
Loss from discontinued operations, net of tax	(2,225		)	—				(2,225		)
Net income (loss)	$	17,905		$	(2,021	)		$	15,884
Basic and diluted earnings (loss) per share:
Continuing operations	$	1.47		$	(0.15	)		$	1.32
Discontinued operations	(0.16		)	—				(0.16		)
Basic and diluted earnings (loss) per share	$	1.31		$	(0.15	)		$	1.16
Basic weighted average shares outstanding	13,673							13,673
Diluted weighted average shares outstanding	13,685							13,685

(a) Write-off of Assets: The correction of these misstatements resulted in an increase to selling, general and administrative ("SG&A") expense of $1.3 million

(c) Correction of misclassification of Selling and Marketing Expenses: The correction of these misstatements resulted in an increase to revenue and an increase to SG&A expense of $1.6 million

(d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in a decrease to revenue of $0.3 million

(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to income tax expense of $0.1 million

(f) Correction of other immaterial errors: The correction of these misstatements resulted in a decrease to revenue of $1.5 million, a decrease to cost of sales of $1.3 million, and an increase to SG&A expense of $0.2 million

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Year Ended December 31, 2019
	As Previously Reported			Restatement Impacts			As Restated
	(In thousands)
Net income (loss)	$	(3,522	)	$	(9,985	)	$	(13,507	)
Other comprehensive income (loss), net of tax:				—
Foreign currency translation adjustment	1,101			(591		)	510
(Loss) gain on long-term intra-entity foreign currency transactions	(79		)	—			(79		)
Cash flow hedging activity	(1,713		)	144			(1,569		)
Reclassification of hedging activities into earnings	349			—			349
Pension plan adjustment	1,410			—			1,410
Reclassification of pension adjustments into earnings	254			94			348
Total other comprehensive income (loss), net of tax	1,322			(353		)	969
Comprehensive income (loss)	$	(2,200	)	$	(10,338	)	$	(12,538	)

See description of the net income (loss) impacts in the consolidated statement of operations for the year ended December 31, 2019 section above.

The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets, reversal of revenue and timing of recognition of customer pricing concessions categories.

The increases to cash flow hedging and the reclassification of pension adjustments are from the correction of other immaterial errors.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Year Ended December 31, 2018
	As Previously Reported			Restatement Impacts			As Restated
Net income (loss)	$	21,784		$	(4,086	)	$	17,698
Other comprehensive income (loss), net of tax:				—
Foreign currency translation adjustment	(159		)	86			(73		)
(Loss) gain on long-term intra-entity foreign currency transactions	(1,006		)	—			(1,006		)
Cash flow hedging activity	244			(144		)	100
Reclassification of hedging activities into earnings	153			—			153
Pension plan adjustment	(1,920		)	—			(1,920		)
Reclassification of pension adjustments into earnings	650			(94		)	556
Total other comprehensive loss, net of tax	(2,038		)	(152		)	(2,190		)
Comprehensive income (loss)	$	19,746		$	(4,238	)	$	15,508

See description of the net income (loss) impacts in the consolidated statement of operations for the year ended December 31, 2018 section above.

The increase to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets category.

The decreases to cash flow hedging and the reclassification of pension adjustments are from the correction of other immaterial errors.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Year Ended December 31, 2017
	As Previously Reported			Restatement Impacts			As Restated
Net income (loss)	$	17,905		$	(2,021	)	$	15,884
Other comprehensive income (loss), net of tax:				—
Foreign currency translation adjustment	689			(41		)	648
(Loss) gain on long-term intra-entity foreign currency transactions	—			—			—
Cash flow hedging activity	(749		)	—			(749		)
Reclassification of hedging activities into earnings	641			—			641
Pension plan adjustment	1,510			—			1,510
Reclassification of pension adjustments into earnings	306			—			306
Total other comprehensive income (loss), net of tax	2,397			(41		)	2,356
Comprehensive income (loss)	$	20,302		$	(2,062	)	$	18,240

See description of the net income (loss) impacts in the consolidated statement of operations for the year ended December 31, 2017 section above.

The decrease to foreign currency translation adjustments is the result of the translation impacts of restatements in the write-off of assets category.

CONSOLIDATED BALANCE SHEETS

	December 31, 2019
	As Previously Reported			Restatement Impacts			Restatement Reference	As Restated
	(In thousands)
Assets
Current assets
Cash and cash equivalents	$	2,142		$	—			$	2,142
Trade receivables, net	113,781			(5,400		)	a,b,d	108,381
Inventory	109,621			185			f	109,806
Prepaid expenses and other current assets	23,102			(11,757		)	a,b,f	11,345
Current assets of discontinued operations	5,383			—				5,383
Total current assets	254,029			(16,972		)		237,057
Property, plant and equipment, net	22,324			—				22,324
Goodwill	6,253			—				6,253
Other intangible assets, net	3,141			—				3,141
Deferred income taxes	3,853			2,395			e	6,248
Deferred costs	10,941			—				10,941
Other non-current assets	2,085			—				2,085
Non-current assets of discontinued operations	614			—				614
Total assets	$	303,240		$	(14,577	)		$	288,663
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	111,117		$	231		f	$	111,348
Accounts payable to NACCO Industries, Inc.	496			—				496
Revolving credit agreements	23,497			—				23,497
Accrued compensation	14,277			750			f	15,027
Accrued product returns	8,697			—				8,697
Other current liabilities	12,873			(339		)	a,e	12,534
Current liabilities of discontinued operations	29,723			—				29,723
Total current liabilities	200,680			642				201,322
Revolving credit agreements	35,000			—				35,000
Other long-term liabilities	12,501			3,574			e	16,075
Total liabilities	248,181			4,216				252,397
Stockholders’ equity
Preferred stock, par value $0.01 per share	—			—				—
Class A Common stock, par value $0.01 per share; 9,805 shares issued as of December 31, 2019	98			—				98
Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis; 4,076 shares issued as of December 31, 2019	41			—				41
Capital in excess of par value	54,344			165			f	54,509
Treasury stock	(5,960		)	—				(5,960		)
Retained earnings	22,524			(18,814		)	a,b,d,e,f	3,710
Accumulated other comprehensive loss	(15,988		)	(144		)	a,b,d,e	(16,132		)
Total stockholders’ equity	55,059			(18,793		)		36,266
Total liabilities and stockholders' equity	$	303,240		$	(14,577	)		$	288,663

(a) Write-off of Assets: The correction of these misstatements resulted in a decrease to trade receivables of $2.5 million, a reduction to prepaid expenses and other current assets of $12.4 million, and an increase to other current liabilities of $0.9 million

(b) Reversal of Revenue: The correction of these misstatements resulted in a decrease to trade receivables of $1.3 million and an increase to prepaid expenses and other current assets of $0.2 million

(d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in a decrease to trade receivables of $1.6 million

(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to deferred income taxes of $2.4 million, a decrease to other current liabilities of $1.2 million, and an increase to other long-term liabilities of $3.6 million

(f) Correction of other immaterial errors: The correction of these misstatements resulted in an increase to prepaid expenses and other current assets of $0.5 million, an increase to inventory of $0.2 million, an increase to accounts payable of $0.2 million, an increase to accrued compensation of $0.7 million, and an increase to capital in excess of par of $0.2 million

CONSOLIDATED BALANCE SHEETS

`	December 31, 2018
	As Previously Reported			Restatement Impacts			Restatement Reference	As Restated
Assets
Current assets
Cash and cash equivalents	$	4,420		$	—			$	4,420
Trade receivables, net	100,821			(2,460		)	a,f	98,361
Inventory	122,697			111			f	122,808
Prepaid expenses and other current assets	22,332			(6,936		)	a	15,396
Current assets of discontinued operations	27,879			—				27,879
Total current assets	278,149			(9,285		)		268,864
Property, plant and equipment, net	20,842			—				20,842
Goodwill	6,253			—				6,253
Other intangible assets, net	4,519			—				4,519
Deferred income taxes	5,518			276			e	5,794
Deferred costs	7,868			—				7,868
Other non-current assets	2,672			—				2,672
Non-current assets of discontinued operations	4,606			—				4,606
Total assets	$	330,427		$	(9,009	)		$	321,418
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	119,264		$	7		f	$	119,271
Accounts payable to NACCO Industries, Inc.	2,416			—				2,416
Revolving credit agreements	11,624			—				11,624
Accrued compensation	15,525			353			f	15,878
Accrued product returns	10,698			—				10,698
Other current liabilities	24,554			(1,632		)	a,d,e,f	22,922
Current liabilities of discontinued operations	22,820			—				22,820
Total current liabilities	206,901			(1,272		)		205,629
Revolving credit agreements	35,000			—				35,000
Other long-term liabilities	21,128			883			e	22,011
Non-current liabilities of discontinued operations	1,960			—				1,960
Total liabilities	264,989			(389		)		264,600
Stockholders’ equity
Preferred stock, par value $0.01 per share	—			—				—
Class A Common stock, par value $0.01 per share; 9,291 shares issued as of December 31, 2018	93			—				93
Class B Common stock, par value $0.01 per share, convertible into Class A on a one-for-one basis; 4,422 shares issued as of December 31, 2018	44			—				44
Capital in excess of par value	51,714			—				51,714
Treasury stock	—			—				—
Retained earnings	30,897			(8,829		)	a,d,e,f	22,068
Accumulated other comprehensive loss	(17,310		)	209			a,d,e,f	(17,101		)
Total stockholders’ equity	65,438			(8,620		)		56,818
Total liabilities and stockholders' equity	$	330,427		$	(9,009	)		$	321,418

(a) Write-off of Assets: The correction of these misstatements resulted in a decrease to trade receivables of $0.6 million, a reduction to prepaid expenses and other current assets of $6.9 million, and an increase to other current liabilities of $0.6 million

(d) Correction for the timing of recognition of customer price concessions: The correction of these misstatements resulted in an increase to other current liabilities of $0.2 million

(e) Tax adjustments for corrections: The correction of these misstatements resulted in an increase to deferred income taxes of $0.3 million, a decrease to other current liabilities of $0.4 million, and an increase to other long-term liabilities of $0.9 million

(f) Correction of other immaterial errors: The correction of these misstatements resulted in a decrease to trade receivables of $1.9 million, an increase to inventory of $0.1 million, an increase to accrued compensation of $0.4 million, and a decrease to other current liabilities of $2.0 million

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31, 2019
	As Previously Reported			Restatement Impacts			As Restated
	(In thousands)
Operating activities
Net income from continuing operations	$	25,078		$	(9,985	)	$	15,093
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	4,002			—			4,002
Deferred income taxes	3,248			(1,761		)	1,487
Stock compensation expense	2,632			165			2,797
Other	471			145			616
Net changes in operating assets and liabilities:
Affiliate payable	(1,920		)	—			(1,920		)
Trade receivables	(25,586		)	2,817			(22,769		)
Inventory	13,756			(82		)	13,674
Other assets	(3,121		)	4,248			1,127
Accounts payable	(7,257		)	214			(7,043		)
Other liabilities	(11,101		)	4,259			(6,842		)
Net cash provided by operating activities from continuing operations	202			20			222
Investing activities
Expenditures for property, plant and equipment	(4,122		)	—			(4,122		)
Other	—			—			—
Net cash used for investing activities from continuing operations	(4,122		)	—			(4,122		)
Financing activities
Net additions (reductions) to revolving credit agreements	11,873			—			11,873
Purchase of treasury stock	(5,960		)	—			(5,960		)
Cash dividends paid	(4,851		)	—			(4,851		)
Cash dividends to NACCO Industries, Inc.	—			—			—
Net cash provided by (used for) financing activities from continuing operations	1,062			—			1,062
Cash flows from discontinued operations
Net cash provided by (used for) operating activities from discontinued operations	3,953			—			3,953
Net cash provided by (used for) investing activities from discontinued operations	585			—			585
Net cash used for financing activities from discontinued operations	(103		)	—			(103		)
Cash provided by (used for) discontinued operations	4,435			—			4,435
Effect of exchange rate changes on cash	(765		)	(20		)	(785		)
Cash and Cash Equivalents
(Decrease) increase for the year from continuing operations	(3,623		)	—			(3,623		)
Increase (decrease) for the year from discontinued operations	4,435			—			4,435
Balance at the beginning of the year	6,352			—			6,352
Balance at the end of the year	$	7,164		$	—		$	7,164

See description of the net income impacts in the consolidated statement of operations for the year ended December 31, 2019 section above.

The only impact of the corrections for misstatements on net cash provided by operating activities from continuing operations was due to the effect of exchange rate changes on cash.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31, 2018
	As Previously Reported			Restatement Impacts			As Restated
Operating activities
Net income from continuing operations	$	27,145		$	(4,086	)	$	23,059
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	4,277			—			4,277
Deferred income taxes	5,185			289			5,474
Stock compensation expense	3,618			—			3,618
Other	868			(31		)	837
Net changes in operating assets and liabilities:
Affiliate payable	(5,300		)	—			(5,300		)
Trade receivables	16,298			2,231			18,529
Inventory	(12,308		)	53			(12,255		)
Other assets	(10,509		)	5,923			(4,586		)
Accounts payable	(7,756		)	37			(7,719		)
Other liabilities	(4,195		)	(3,784		)	(7,979		)
Net cash provided by operating activities from continuing operations	17,323			632			17,955
Investing activities
Expenditures for property, plant and equipment	(7,759		)	—			(7,759		)
Other	—			—			—
Net cash used for investing activities from continuing operations	(7,759		)	—			(7,759		)
Financing activities
Net additions (reductions) to revolving credit agreements	(4,597		)	—			(4,597		)
Purchase of treasury stock	—			—			—
Cash dividends paid	(4,658		)	—			(4,658		)
Cash dividends to NACCO Industries, Inc.	—			—			—
Net cash provided by (used for) financing activities from continuing operations	(9,255		)	—			(9,255		)
Cash flows from discontinued operations				—
Net cash provided by (used for) operating activities from discontinued operations	(5,499		)	—			(5,499		)
Net cash provided by (used for) investing activities from discontinued operations	(305		)	—			(305		)
Net cash used for financing activities from discontinued operations	—			—			—
Cash provided by (used for) discontinued operations	(5,804		)	—			(5,804		)
Effect of exchange rate changes on cash	941			(632		)	309
Cash and Cash Equivalents
(Decrease) increase for the year from continuing operations	1,250			—			1,250
Increase (decrease) for the year from discontinued operations	(5,804		)	—			(5,804		)
Balance at the beginning of the year	10,906			—			10,906
Balance at the end of the year	$	6,352		$	—		$	6,352

See description of the net income impacts in the consolidated statement of operations for the year ended December 31, 2018 section above.

The only impact of the corrections for misstatements on net cash provided by operating activities from continuing operations was due to the effect of exchange rate changes on cash.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31, 2017
	As Previously Reported			Restatement Impacts			As Restated
Operating activities
Net income from continuing operations	$	20,130		$	(2,021	)	$	18,109
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	4,072			—			4,072
Deferred income taxes	4,107			(632		)	3,475
Stock compensation expense	323			—			323
Other	(1,167		)	—			(1,167		)
Net changes in operating assets and liabilities:
Affiliate payable	866			—			866
Trade receivables	(8,442		)	314			(8,128		)
Inventory	(16,485		)	(81		)	(16,566		)
Other assets	(1,960		)	665			(1,295		)
Accounts payable	25,009			—			25,009
Other liabilities	1,850			1,755			3,605
Net cash provided by operating activities from continuing operations	28,303			—			28,303
Investing activities
Expenditures for property, plant and equipment	(6,198		)	—			(6,198		)
Other	21			—			21
Net cash used for investing activities from continuing operations	(6,177		)	—			(6,177		)
Financing activities
Net additions (reductions) to revolving credit agreements	12,630			—			12,630
Purchase of treasury stock	—			—			—
Cash dividends paid	(1,162		)	—			(1,162		)
Cash dividends to NACCO Industries, Inc.	(38,000		)	—			(38,000		)
Net cash provided by (used for) financing activities from continuing operations	(26,532		)	—			(26,532		)
Cash flows from discontinued operations
Net cash provided by (used for) operating activities from discontinued operations	5,137			—			5,137
Net cash provided by (used for) investing activities from discontinued operations	(1,176		)	—			(1,176		)
Net cash used for financing activities from discontinued operations	(70		)	—			(70		)
Cash provided by (used for) discontinued operations	3,891			—			3,891
Effect of exchange rate changes on cash	81			—			81
Cash and Cash Equivalents
(Decrease) increase for the year from continuing operations	(4,325		)	—			(4,325		)
Increase (decrease) for the year from discontinued operations	3,891			—			3,891
Balance at the beginning of the year	11,340			—			11,340
Balance at the end of the year	$	10,906		$	—		$	10,906

See description of the net income impacts in the consolidated statement of operations for the year ended December 31, 2017 section above.

The only impact of the corrections for misstatements on net cash provided by operating activities from continuing operations was due to the effect of exchange rate changes on cash.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Class A common stock		Class B common stock			Capital in excess of par value			Treasury stock			Retained earnings			Accumulated other comprehensive income (loss)			Total stockholders' equity
	(In thousands, except per share data)
As Previously Reported
Balance, January 1, 2019	$	93	$	44		$	51,714		$	—		$	30,897		$	(17,310	)	$	65,438
Net loss	—		—			—			—			(3,522		)	—			(3,522		)
Issuance of common stock, net of conversions	5		(3		)	(2		)	—			—			—			—
Purchase of treasury stock	—		—			—			(5,960		)	—			—			(5,960		)
Share-based compensation expense	—		—			2,632			—			—			—			2,632
Cash dividends, $0.355 per share	—		—			—			—			(4,851		)	—			(4,851		)
Other comprehensive loss	—		—			—			—			—			719			719
Reclassification adjustment to net loss	—		—			—			—			—			603			603
Balance, December 31, 2019	$	98	$	41		$	54,344		$	(5,960	)	$	22,524		$	(15,988	)	$	55,059
Restatement Impacts
Balance, January 1, 2019	$	—	$	—		$	—		$	—		$	(8,829	)	$	209		$	(8,620	)
Net loss	—		—			—			—			(9,985		)	—			(9,985		)
Issuance of common stock, net of conversions	—		—			—			—			—			—			—
Purchase of treasury stock	—		—			—			—			—			—			—
Share-based compensation expense	—		—			165			—			—			—			165
Cash dividends, $0.355 per share	—		—			—			—			—			—			—
Other comprehensive loss	—		—			—			—			—			(447		)	(447		)
Reclassification adjustment to net loss	—		—			—			—			—			94			94
Balance, December 31, 2019	$	—	$	—		$	165		$	—		$	(18,814	)	$	(144	)	$	(18,793	)
As Restated
Balance, January 1, 2019	$	93	$	44		$	51,714		$	—		$	22,068		$	(17,101	)	$	56,818
Net loss	—		—			—			—			(13,507		)	—			(13,507		)
Issuance of common stock, net of conversions	5		(3		)	(2		)	—			—			—			—
Purchase of treasury stock	—		—			—			(5,960		)	—			—			(5,960		)
Share-based compensation expense	—		—			2,797			—			—			—			2,797
Cash dividends, $0.355 per share	—		—			—			—			(4,851		)	—			(4,851		)
Other comprehensive loss	—		—			—			—			—			272			272
Reclassification adjustment to net loss	—		—			—			—			—			697			697
Balance, December 31, 2019	$	98	$	41		$	54,509		$	(5,960	)	$	3,710		$	(16,132	)	$	36,266

See description of the net income and other comprehensive income (loss) impacts in the consolidated statement of operations and consolidated statement of comprehensive income (loss) for the year ended December 31, 2019 sections above.

The increase to share-based compensation expense and reclassification adjustment to net loss is the result of the correction of other immaterial errors.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Class A common stock		Class B common stock			Capital in excess of par value		Treasury stock		Retained earnings			Accumulated other comprehensive income (loss)			Total stockholders' equity
As Previously Reported
Balance, January 1, 2018	$	88	$	48		$	47,773	$	—	$	12,603		$	(14,104	)	$	46,408
Net loss	—		—			—		—		21,784			—			21,784
Issuance of common stock, net of conversions	5		(4		)	323		—		—			—			324
Purchase of treasury stock	—		—			—		—		—			—			—
Share-based compensation expense	—		—			3,618		—		—			—			3,618
Cash dividends, $0.34 per share	—		—			—		—		(4,658		)	—			(4,658		)
Reclassification due to adoption of ASU 2018-02	—		—			—		—		1,168			(1,168		)	—
Other comprehensive loss	—		—			—		—		—			(2,841		)	(2,841		)
Reclassification adjustment to net loss	—		—			—		—		—			803			803
Balance, December 31, 2018	$	93	$	44		$	51,714	$	—	$	30,897		$	(17,310	)	$	65,438
Restatement Impacts
Balance, January 1, 2018	$	—	$	—		$	—	$	—	$	(4,743	)	$	361		$	(4,382	)
Net loss	—		—			—		—		(4,086		)	—			(4,086		)
Issuance of common stock, net of conversions	—		—			—		—		—			—			—
Purchase of treasury stock	—		—			—		—		—			—			—
Share-based compensation expense	—		—			—		—		—			—			—
Cash dividends, $0.34 per share	—		—			—		—		—			—			—
Reclassification due to adoption of ASU 2018-02	—		—			—		—		—			—			—
Other comprehensive loss	—		—			—		—		—			(58		)	(58		)
Reclassification adjustment to net loss	—		—			—		—		—			(94		)	(94		)
Balance, December 31, 2018	$	—	$	—		$	—	$	—	$	(8,829	)	$	209		$	(8,620	)
As Restated
Balance, January 1, 2018	$	88	$	48		$	47,773	$	—	$	7,860		$	(13,743	)	$	42,026
Net loss	—		—			—		—		17,698			—			17,698
Issuance of common stock, net of conversions	5		(4		)	323		—		—			—			324
Purchase of treasury stock	—		—			—		—		—			—			—
Share-based compensation expense	—		—			3,618		—		—			—			3,618
Cash dividends, $0.34 per share	—		—			—		—		(4,658		)	—			(4,658		)
Reclassification due to adoption of ASU 2018-02	—		—			—		—		1,168			(1,168		)	—
Other comprehensive loss	—		—			—		—		—			(2,899		)	(2,899		)
Reclassification adjustment to net income	—		—			—		—		—			709			709
Balance, December 31, 2018	$	93	$	44		$	51,714	$	—	$	22,068		$	(17,101	)	$	56,818

See description of the net income and other comprehensive income (loss) impacts in the consolidated statement of operations and consolidated statement of comprehensive income (loss) for the year ended December 31, 2018 sections above.

The decrease to the reclassification adjustment to net loss is the result of the correction of other immaterial errors.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Class A common stock		Class B common stock		Capital in excess of par value			Treasury stock		Retained earnings			Accumulated other comprehensive income (loss)			Total stockholders' equity
As Previously Reported
Balance, January 1, 2017	$	—	$	—	$	75,031		$	—	$	6,738		$	(16,501	)	$	65,268
Net loss	—		—		—			—		17,905			—			17,905
Issuance of common stock, net of conversions	88		48		(136		)	—		—			—			—
Purchase of treasury stock	—		—		—			—		—			—			—
Share-based compensation expense	—		—		—			—		—			—			—
Cash dividends to NACCO Industries, Inc.	—		—		(27,122		)	—		(10,878		)	—			(38,000		)
Cash dividends, $0.085 per share	—		—		—			—		(1,162		)	—			(1,162		)
Other comprehensive loss	—		—		—			—		—			1,450			1,450
Reclassification adjustment to net loss	—		—		—			—		—			947			947
Balance, December 31, 2017	$	88	$	48	$	47,773		$	—	$	12,603		$	(14,104	)	$	46,408
Restatement Impacts
Balance, January 1, 2017	$	—	$	—	$	—		$	—	$	(2,722	)	$	402		$	(2,320	)
Net loss	—		—		—			—		(2,021		)	—			(2,021		)
Issuance of common stock, net of conversions	—		—		—			—		—			—			—
Purchase of treasury stock	—		—		—			—		—			—			—
Share-based compensation expense	—		—		—			—		—			—			—
Cash dividends to NACCO Industries, Inc.	—		—		—			—		—			—			—
Cash dividends, $0.085 per share	—		—		—			—		—			—			—
Other comprehensive loss	—		—		—			—		—			(41		)	(41		)
Reclassification adjustment to net loss	—		—		—			—		—			—			—
Balance, December 31, 2017	$	—	$	—	$	—		$	—	$	(4,743	)	$	361		$	(4,382	)
As Restated
Balance, January 1, 2017	$	—	$	—	$	75,031		$	—	$	4,016		$	(16,099	)	$	62,948
Net loss	—		—		—			—		15,884			—			15,884
Issuance of common stock, net of conversions	88		48		(136		)	—		—			—			—
Purchase of treasury stock	—		—		—			—		—			—			—
Share-based compensation expense	—		—		—			—		—			—			—
Cash dividends to NACCO Industries, Inc.	—		—		(27,122		)	—		(10,878		)	—			(38,000		)
Cash dividends, $0.085 per share	—		—		—			—		(1,162		)	—			(1,162		)
Other comprehensive loss	—		—		—			—		—			1,409			1,409
Reclassification adjustment to net income	—		—		—			—		—			947			947
Balance, December 31, 2017	$	88	$	48	$	47,773		$	—	$	7,860		$	(13,743	)	$	42,026

See description of the net income and other comprehensive income (loss) impacts in the consolidated statement of operations and consolidated statement of comprehensive income (loss) for the year ended December 31, 2017 sections above.