Restatement of Previously Issued Financial Statements (Tables)

6 Months Ended

Jun. 30, 2020

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Three Months Ended June 30, 2019
	As Previously Reported			Restatement Impacts		Restatement References	As Restated			Recasting Impacts			As Restated and Recast
	(In thousands)
Revenue	$	148,427		$	921	c	$	149,348		$	(18,283	)	$	131,065
Cost of sales	112,770			—			112,770			(10,212		)	102,558
Gross profit	35,657			921			36,578			(8,071		)	28,507
Selling, general and administrative expenses	35,617			594		a,c	36,211			(11,235		)	24,976
Amortization of intangible assets	346			—			346			—			346
Operating profit (loss)	(306		)	327			21			3,164			3,185
Interest expense, net	904			—			904			(115		)	789
Other expense (income), net	(126		)	—			(126		)	(6		)	(132		)
Income (loss) from continuing operations before income taxes	(1,084		)	327			(757		)	3,285			2,528
Income tax expense (benefit)	(140		)	1			(139		)	769			630
Net income (loss) from continuing operations	(944		)	326			(618		)	2,516			1,898
Loss from discontinued operations, net of tax	—			—			—			(2,516		)	(2,516		)
Net income (loss)	$	(944	)	$	326		$	(618	)	$	—		$	(618	)
Basic and diluted earnings (loss) per share:
Continuing operations	$	(0.07	)	$	0.03		$	(0.04	)	$	0.18		$	0.14
Discontinued operations	—			—			—			(0.18		)	(0.18		)
Basic and diluted earnings (loss) per share	$	(0.07	)	$	0.03		$	(0.04	)	$	—		$	(0.04	)
Basic weighted average shares outstanding	13,813			—			13,813			—			13,813
Diluted weighted average shares outstanding	13,813			—			13,813			13			13,826

CONDENSED 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, 2019	$	93	$	44	$	51,714		$	—		$	30,897		$	(17,310	)	$	65,438
Net loss	—		—		—			—			(2,705		)	—			(2,705		)
Issuance of common stock, net of conversions	2		—		(1		)	—			—			—			1
Purchase of treasury stock	—		—		—			(2,334		)	—			—			(2,334		)
Share-based compensation expense	—		—		1,629			—			—			—			1,629
Cash dividends, $0.085 per share	—		—		—			—			(2,419		)	—			(2,419		)
Other comprehensive loss	—		—		—			—			—			(751		)	(751		)
Reclassification adjustment to net loss	—		—		—			—			—			238			238
Balance, June 30, 2019	$	95	$	44	$	53,342		$	(2,334	)	$	25,773		$	(17,823	)	$	59,097
Restatement Impacts
Balance, January 1, 2019	$	—	$	—	$	—		$	—		$	(8,829	)	$	209		$	(8,620	)
Net loss	—		—		—			—			(1,298		)	—			(1,298		)
Issuance of common stock, net of conversions	—		—		—			—			—			—			—
Purchase of treasury stock	—		—		—			—			—			—			—
Share-based compensation expense	—		—		—			—			—			—			—
Cash dividends, $0.085 per share	—		—		—			—			—			—			—
Other comprehensive loss	—		—		—			—			—			(85		)	(85		)
Reclassification adjustment to net loss	—		—		—			—			—			94			94
Balance, June 30, 2019	$	—	$	—	$	—		$	—		$	(10,127	)	$	218		$	(9,909	)
As Restated
Balance, January 1, 2019	$	93	$	44	$	51,714		$	—		$	22,068		$	(17,101	)	$	56,818
Net loss	—		—		—			—			(4,003		)	—			(4,003		)
Issuance of common stock, net of conversions	2		—		(1		)	—			—			—			1
Purchase of treasury stock	—		—		—			(2,334		)	—			—			(2,334		)
Share-based compensation expense	—		—		1,629			—			—			—			1,629
Cash dividends, $0.085 per share	—		—		—			—			(2,419		)	—			(2,419		)
Other comprehensive loss	—		—		—			—			—			(835		)	(835		)
Reclassification adjustment to net loss	—		—		—			—			—			332			332
Balance, June 30, 2019	$	95	$	44	$	53,342		$	(2,334	)	$	15,646		$	(17,604	)	$	49,189

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	June 30, 2019
	As Previously Reported			Restatement Impacts			As Restated			Recasting Impacts			As Restated and Recast
Operating activities
Net income (loss) from continuing operations	$	(2,705	)	$	(1,298	)	$	(4,003	)	$	5,239		$	1,236
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	2,153			—			2,153			(312		)	1,841
Deferred income taxes	1,800			57			1,857			43			1,900
Stock compensation expense	1,629			—			1,629			—			1,629
Other	117			(11		)	106			(29		)	77
Net changes in operating assets and liabilities:
Affiliate payable	(2,199		)	(1		)	(2,200		)	5			(2,195		)
Trade receivables	13,956			(128		)	13,828			(906		)	12,922
Inventory	4,375			210			4,585			(2,649		)	1,936
Other assets	(133		)	(214		)	(347		)	(1,255		)	(1,602		)
Accounts payable	(41,259		)	(9		)	(41,268		)	8,166			(33,102		)
Other liabilities	(19,841		)	1,412			(18,429		)	2,141			(16,288		)
Net cash provided by (used for) operating activities from continuing operations	(42,107		)	18			(42,089		)	10,443			(31,646		)
Investing activities
Expenditures for property, plant and equipment	(2,091		)	—			(2,091		)	119			(1,972		)
Other	36			—			36			(36		)	—
Net cash used for investing activities from continuing operations	(2,055		)	—			(2,055		)	83			(1,972		)
Financing activities
Net additions (reductions) to revolving credit agreements	44,302			—			44,302			(9,450		)	34,852
Purchase of treasury stock	(2,334		)	—			(2,334		)	—			(2,334		)
Cash dividends paid	(2,419		)	—			(2,419		)	—			(2,419		)
Net cash provided by (used for) financing activities from continuing operations	39,549			—			39,549			(9,450		)	30,099
Cash flows from discontinued operations
Net cash used for operating activities from discontinued operations	—			—			—			(10,443		)	(10,443		)
Net cash used for investing activities from discontinued operations	—			—			—			(83		)	(83		)
Net cash used for financing activities from discontinued operations	—			—			—			9,450			9,450
Cash provided by (used for) discontinued operations	—			—			—			(1,076		)	(1,076		)
Effect of exchange rate changes on cash	(608		)	(18		)	(626		)	—			(626		)
Cash and Cash Equivalents
(Decrease) increase for the year from continuing operations	(5,221		)	—			(5,221		)	1,076			(4,145		)
Increase (decrease) for the year from discontinued operations	—			—			—			(1,076		)	(1,076		)
Balance at the beginning of the year	6,352			—			6,352			—			6,352
Balance at the end of the period	$	1,131		$	—		$	1,131		$	—		$	1,131

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the Six Months Ended June 30, 2019
	As Previously Reported			Restatement Impacts			Restatement References	As Restated			Recasting Impacts			As Restated and Recast
	(In thousands)
Revenue	$	293,804		$	1,439		c,f	$	295,243		$	(37,536	)	$	257,707
Cost of sales	223,424			(65		)	f	223,359			(20,861		)	202,498
Gross profit	70,380			1,504				71,884			(16,675		)	55,209
Selling, general and administrative expenses	72,124			2,566			a,c,f	74,690			(23,468		)	51,222
Amortization of intangible assets	691			—				691			—			691
Operating profit (loss)	(2,435		)	(1,062		)		(3,497		)	6,793			3,296
Interest expense, net	1,650			—				1,650			(198		)	1,452
Other expense (income), net	(458		)	144			f	(314		)	(15		)	(329		)
Income (loss) from continuing operations before income taxes	(3,627		)	(1,206		)		(4,833		)	7,006			2,173
Income tax expense (benefit)	(922		)	92			e	(830		)	1,767			937
Net income (loss) from continuing operations	(2,705		)	(1,298		)		(4,003		)	5,239			1,236
Loss from discontinued operations, net of tax	—			—				—			(5,239		)	(5,239		)
Net loss	$	(2,705	)	$	(1,298	)		$	(4,003	)	$	—		$	(4,003	)
Basic and diluted earnings (loss) per share:
Continuing operations	$	(0.20	)	$	(0.09	)		$	(0.29	)	$	0.38		$	0.09
Discontinued operations	—			—				—			(0.38		)	(0.38		)
Basic and diluted earnings (loss) per share	$	(0.20	)	$	(0.09	)		$	(0.29	)	$	—		$	(0.29	)
Basic weighted average shares outstanding	13,800			—				13,800			—			13,800
Diluted weighted average shares outstanding	13,800			—				13,800			13			13,813

CONDENSED 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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	For the Six Months Ended June 30, 2019
	As Previously Reported			Restatement Impacts			As Restated
	(In thousands)
Net income (loss)	$	(2,705	)	$	(1,298	)	$	(4,003	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	556			(229		)	327
Gain on long-term intra-entity foreign currency transactions	136			—			136
Cash flow hedging activity	(1,443		)	144			(1,299		)
Reclassification of hedging activities into earnings	146			—			146
Pension plan adjustment	—			—			—
Reclassification of pension adjustments into earnings	92			94			186
Total other comprehensive loss, net of tax	(513		)	9			(504		)
Comprehensive income (loss)	$	(3,218	)	$	(1,289	)	$	(4,507	)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	For the Three Months Ended June 30, 2019
	As Previously Reported			Restatement Impacts			As Restated
	(In thousands)
Net income (loss)	$	(944	)	$	326		$	(618	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	226			(113		)	113
Gain on long-term intra-entity foreign currency transactions	121			—			121
Cash flow hedging activity	(877		)	—			(877		)
Reclassification of hedging activities into earnings	144			—			144
Pension plan adjustment	—			—			—
Reclassification of pension adjustments into earnings	102			—			102
Total other comprehensive loss, net of tax	(284		)	(113		)	(397		)
Comprehensive income (loss)	$	(1,228	)	$	213		$	(1,015	)

CONDENSED CONSOLIDATED BALANCE SHEETS

`	June 30, 2019
	As Previously Reported			Restatement Impacts			Restatement Reference	As Restated			Recasting Impacts			As Restated and Recast
	(In thousands)
Assets
Current assets
Cash and cash equivalents	$	1,131		$	—			$	1,131		$	(102	)	$	1,029
Trade receivables, net	89,579			(2,446		)	a,f	87,133			(865		)	86,268
Inventory	140,817			—				140,817			(19,345		)	121,472
Prepaid expenses and other current assets	24,078			(6,723		)	a	17,355			(943		)	16,412
Current assets of discontinued operations	—			—				—			21,255			21,255
Total current assets	255,605			(9,169		)		246,436			—			246,436
Property, plant and equipment, net	23,204			—				23,204			(1,555		)	21,649
Goodwill	6,253			—				6,253			—			6,253
Other intangible assets, net	3,828			—				3,828			—			3,828
Deferred income taxes	6,169			318			e	6,487			(2,733		)	3,754
Deferred costs	8,683			—				8,683			(119		)	8,564
Other non-current assets	1,997			—				1,997			(13		)	1,984
Non-current assets of discontinued operations	—			—				—			4,420			4,420
Total assets	$	305,739		$	(8,851	)		$	296,888		$	—		$	296,888
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	91,737		$	—			$	91,737		$	(5,538	)	$	86,199
Accounts payable to NACCO Industries, Inc.	220			—				220			—			220
Revolving credit agreements	58,955			—				58,955			(7,450		)	51,505
Accrued compensation	12,091			387			f	12,478			(753		)	11,725
Accrued product returns	8,224			—				8,224			—			8,224
Other current liabilities	27,930			(241		)	a,d,e,f	27,689			(6,307		)	21,382
Current liabilities of discontinued operations	—			—				—			20,048			20,048
Total current liabilities	199,157			146				199,303			—			199,303
Revolving credit agreements	32,000			—				32,000			(2,000		)	30,000
Other long-term liabilities	15,485			911			e	16,396			(1,697		)	14,699
Non-current liabilities of discontinued operations	—			—				—			3,697			3,697
Total liabilities	246,642			1,057				247,699			—			247,699
Stockholders’ equity
Class A Common stock	95			—				95			—			95
Class B Common stock	44			—				44			—			44
Capital in excess of par value	53,342			—				53,342			—			53,342
Treasury stock	(2,334		)	—				(2,334		)	—			(2,334		)
Retained earnings	25,773			(10,127		)	a,d,e,f	15,646			—			15,646
Accumulated other comprehensive loss	(17,823		)	219			a,d	(17,604		)	—			(17,604		)
Total stockholders’ equity	59,097			(9,908		)		49,189			—			49,189
Total liabilities and stockholders' equity	$	305,739		$	(8,851	)		$	296,888		$	—		$	296,888