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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Statement [Abstract]        
Net sales $ 105,528 $ 109,996 $ 310,069 $ 330,290
Cost of goods sold 66,584 75,828 191,120 227,869
Gross profit 38,944 34,168 118,949 102,421
Operating expenses        
Selling expense 8,004 9,413 25,500 28,218
General and administrative expense (including $702 and $665 associated with variable interest entity for the three months ended September 30, 2023 and 2022, respectively; $2,020 and $1,899 associated with variable interest entity for the nine months ended September 30, 2023 and 2022, respectively) 19,870 16,861 53,767 49,033
Impairment expense and (gain) loss, net, on disposal of machinery (310) (16) 2,231 (33)
Total operating expenses 27,564 26,258 81,498 77,218
Operating income 11,380 7,910 37,451 25,203
Other income (expense)        
Rental income (including $235 and $239 associated with variable interest entity for the three months ended September 30, 2023 and 2022, respectively; and $721 and $715 associated with variable interest entity for the nine months ended September 30, 2023 and 2022, respectively) 259 239 781 715
Other income (expense), net 32 28 (58) (235)
Gain on foreign currency transactions 455 369 350 1,352
Interest income (including $80 and $0 interest income associated with variable interest entity for the three months ended September 30, 2023 and 2022, respectively; and $278 and $2,160 interest income associated with variable interest entity for the nine months ended September 30, 2023 and 2022, respectively) 454 0 1,040 2,160
Interest expense (including $528 and $470 interest expense associated with variable interest entity for the three months ended September 30, 2023 and 2022, respectively; and $1,499 and $1,379 interest expense associated with variable interest entity for the nine months ended September 30, 2023 and 2022, respectively) (536) (493) (1,516) (1,576)
Total other income, net 664 143 597 2,416
Income before provision for income taxes 12,044 8,053 38,048 27,619
Provision for income taxes 2,904 1,900 9,045 6,323
Net income 9,140 6,153 29,003 21,296
Net income attributable to noncontrolling interest 75 57 431 2,189
Net income attributable to Karat Packaging Inc. $ 9,065 $ 6,096 $ 28,572 $ 19,107
Basic and diluted earnings per share:        
Basic (in dollars per share) $ 0.46 $ 0.31 $ 1.44 $ 0.96
Diluted (in dollars per share) $ 0.45 $ 0.31 $ 1.43 $ 0.96
Weighted average common shares outstanding, basic (in shares) 19,890,646 19,809,417 19,888,244 19,808,813
Weighted average common shares outstanding, diluted (in shares) 19,994,648 19,938,042 19,962,999 19,922,047