Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐			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 001-12505

CORE MOLDING TECHNOLOGIES, INC.

_______________________________________________________________

(Exact name of registrant as specified in its charter)

Delaware

31-1481870

(State or other jurisdiction

incorporation or organization)

(I.R.S. Employer Identification No.)

800 Manor Park Drive, Columbus, Ohio

43228-0183

(Address of principal executive office)

(Zip Code)

Registrant’s telephone number, including area code (614) 870-5000

N/A

__________________________________________________________

Former name, former address and former fiscal year, if changed since last report.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer,” “large accelerated filer,” and “smaller reporting company,” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨

Accelerated filer ¨

Non-accelerated Filer ☒

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

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

Title of each class

Name of each exchange on which registered

Trading Symbol

Common Stock, par value $0.01

NYSE American LLC

CMT

As of November 6, 2023, the latest practicable date, 9,040,704 shares of the registrant’s common stock were issued, which includes 385,320 shares of unvested stock awards.

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Part I — Financial Information

Item 1. Financial Statements (Unaudited)

Consolidated Statements of Operations			3

Consolidated Statements of Comprehensive Income			4

Consolidated Balance Sheets			5

Consolidated Statements of Stockholders’ Equity			6

Consolidated Statements of Cash Flows			8

Notes to Consolidated Financial Statements			9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			24

Item 3. Quantitative and Qualitative Disclosures About Market Risk			30

Item 4. Controls and Procedures			31

Part II — Other Information

Item 1. Legal Proceedings			32

Item 1A. Risk Factors			32

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of equity Securities			32

Item 3. Defaults Upon Senior Securities			32

Item 4. Mine Safety Disclosures			32

Item 5. Other Information			32

Item 6. Exhibits			32

Signatures			33

Index to Exhibits			35

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Part I — Financial Information

Item 1. Financial Statements

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except for per share data)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Net sales	$	86,728	$	101,606	$	283,961	$	290,933

Cost of sales	71,450		88,303		230,380		250,015

Gross margin	15,278		13,303		53,581		40,918

Selling, general and administrative expense	9,403		8,671		29,562		25,889

Operating income	5,875		4,632		24,019		15,029

Other income and expense
Loss from extinguishment of debt	—		1,582		—		1,582
Interest expense, net	187		511		836		1,511
Net periodic post-retirement benefit	(52)		(31)		(157)		(93)
Total other expense	135		2,062		679		3,000

Income before taxes	5,740		2,570		23,340		12,029

Income tax expense	1,386		1,251		5,198		4,658

Net income	$	4,354	$	1,319	$	18,142	$	7,371

Net income per common share:
Basic	$	0.50	$	0.16	$	2.13	$	0.87
Diluted	$	0.49	$	0.16	$	2.08	$	0.87

See notes to unaudited consolidated financial statements.

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Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Net income	$	4,354	$	1,319	$	18,142	$	7,371

Other comprehensive income:

Foreign currency hedging derivatives:
Unrealized hedge gain (loss)	(898)		(626)		208		(626)
Income tax expense (benefit)	192		159		(50)		159

Interest rate swaps:
Unrealized hedge gain	209		767		366		767
Income tax expense	(44)		(166)		(76)		(166)

Post-retirement benefit plan adjustments:
Amortization of net actuarial loss	6		43		18		130
Amortization of prior service credits	(124)		(124)		(372)		(372)
Income tax benefit	25		17		75		51

Comprehensive income	$	3,720	$	1,389	$	18,311	$	7,314

See notes to unaudited consolidated financial statements.

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Core Molding Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except for share data)


	September 30, 2023		December 31, 2022
	(Unaudited)
Assets:
Current assets:
Cash and cash equivalents	$	18,035	$	4,183
Accounts receivable, net	45,938		44,261
Inventories, net	24,988		23,871
Foreign tax receivable	5,492		2,680
Prepaid expenses and other current assets	7,679		5,670
Total current assets	102,132		80,665

Right of use asset	4,261		5,114
Property, plant and equipment, net	81,788		83,267

Goodwill	17,376		17,376
Intangibles, net	6,414		7,619
Other non-current assets	4,686		4,574
Total Assets	$	216,657	$	198,615

Liabilities and Stockholders’ Equity:
Current liabilities:
Current portion of long-term debt	$	1,310	$	1,208
Revolving debt	—		1,864
Accounts payable	28,682		29,586
Taxes payable	2,557		1,236
Contract liability	1,146		1,395

Compensation and related benefits	10,523		9,101
Accrued other liabilities	8,652		6,407
Total current liabilities	52,870		50,797

Other non-current liabilities	2,998		3,516
Long-term debt	21,982		22,986
Post-retirement benefits liability	4,815		5,191
Total Liabilities	82,665		82,490
Commitments and Contingencies
Stockholders’ Equity:
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at September 30, 2023 and December 31, 2022			—
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares: 8,655,384 at September 30, 2023 and 8,417,656 at December 31, 2022	86		84
Paid-in capital	42,565		40,342
Accumulated other comprehensive income, net of income taxes	3,222		3,053
Treasury stock - at cost, 3,992,152 shares at September 30, 2023 and 3,866,451 shares at December 31, 2022	(31,768)		(29,099)
Retained earnings	119,887		101,745
Total Stockholders’ Equity	133,992		116,125
Total Liabilities and Stockholders’ Equity	$	216,657	$	198,615

See notes to unaudited consolidated financial statements.

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Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity

(In thousands, except for share data)

(Unaudited)

For the three months ended September 30, 2022:


	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2022	8,413,655	$	84	$	39,095	$	948	$	(29,099)	$	95,594	$	106,622
Net income										1,319		1,319
Change in post-retirement benefits, net of tax $17						(64)						(64)
Change in foreign currency hedge, net of tax of $159						(467)						(467)
Change in interest rate swaps, net of tax of $166						639						639


Share-based compensation				623								623
Balance at September 30, 2022	8,413,655	$	84	$	39,718	$	1,056	$	(29,099)	$	96,913	$	108,672

For the nine months ended September 30, 2022:


	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2021	8,235,740	$	82	$	38,013	$	1,075	$	(28,617)	$	89,542	$	100,095
Net income										7,371		7,371
Change in post-retirement benefits, net of tax $51						(191)						(191)
Change in foreign currency hedge, net of tax of $159						(467)						(467)
Change in interest rate swaps, net of tax of $166						639						639
Purchase of treasury stock	(48,286)							(482)				(482)
Restricted stock vested	226,201	2										2
Share-based compensation				1,705								1,705
Balance at September 30, 2022	8,413,655	$	84	$	39,718	$	1,056	$	(29,099)	$	96,913	$	108,672

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Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Stockholders’ Equity (Continued)

(In thousands, except for share data)

(Unaudited)

For the three months ended September 30, 2023:


	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2023	8,603,072	$	86	$	41,829	$	3,856	$	(31,006)	$	115,533	$	130,298
Net income										4,354		4,354
Change in post-retirement benefits, net of tax of $25						(93)						(93)
Change in foreign currency hedge, net of tax of $192						(706)						(706)
Change in interest rate swaps, net of tax of $44						165						165
Purchase of treasury stock	(29,804)							(762)				(762)
Exercise of SARs	69,309											—
Restricted stock vested	12,807											—
Share-based compensation				736								736
Balance at September 30, 2023	8,655,384	$	86	$	42,565	$	3,222	$	(31,768)	$	119,887	$	133,992

For the nine months ended September 30, 2023:


	Common Stock Outstanding			Paid-In Capital		Accumulated Other Comprehensive Income		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2022	8,417,656	$	84	$	40,342	$	3,053	$	(29,099)	$	101,745	$	116,125
Net income										18,142		18,142
Change in post-retirement benefits, net of tax of $75						(279)						(279)
Change in foreign currency hedge, net of tax of $50						158						158
Change in interest rate swaps, net of tax of $76						290						290
Purchase of treasury stock	(125,701)	(1)						(2,669)				(2,670)
Exercise of SARs	100,641	1										1
Restricted stock vested	262,788	2										2
Share-based compensation				2,223								2,223
Balance at September 30, 2023	8,655,384	$	86	$	42,565	$	3,222	$	(31,768)	$	119,887	$	133,992

See notes to unaudited consolidated financial statements.

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Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


	Nine months ended September 30,
	2023		2022
Cash flows from operating activities:
Net income	$	18,142	$	7,371
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,575		9,406
Loss on disposal of assets	80		—

Share-based compensation	2,223		1,705
Loss from extinguishment of debt	—		1,234
Losses on foreign currency remeasurement	202		178
Change in operating assets and liabilities:
Accounts receivable	(1,677)		(19,036)
Inventories	(1,117)		(1,725)
Prepaid and other assets	(4,474)		1,940
Accounts payable	(414)		10,355
Accrued and other liabilities	4,340		(2,773)
Post-retirement benefits liability	(731)		(166)
Net cash provided by operating activities	26,149		8,489

Cash flows from investing activities:
Purchase of property, plant and equipment	(6,803)		(12,284)
Net cash used in investing activities	(6,803)		(12,284)

Cash flows from financing activities:
Gross repayments on revolving line of credit	(38,962)		(120,357)
Gross borrowings on revolving line of credit	37,098		119,985
Payments for taxes related to net share settlement of equity awards	(2,669)		(482)
Payment of deferred loan costs	—		(402)
Proceeds from term loan	—		25,000
Payment of principal on term loans	(961)		(25,586)
Net cash used in financing activities	(5,494)		(1,842)

Net change in cash and cash equivalents	13,852		(5,637)

Cash and cash equivalents at beginning of period	4,183		6,146

Cash and cash equivalents at end of period	$	18,035	$	509

Cash paid for:
Interest	$	939	$	1,320
Income taxes	$	4,518	$	5,378
Non-cash investing activities:
Fixed asset purchases in accounts payable and other non-current liabilities	$	848	$	1,058
Non-cash financing activities:
Deposit used in payment of principal on term loans	$	—	$	1,200

See notes to unaudited consolidated financial statements.

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Core Molding Technologies, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States of America for interim reporting, which are less than those required for annual reporting. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (all of which are normal and recurring in nature) necessary to present fairly the financial position of Core Molding Technologies, Inc. and its subsidiaries (“Core Molding Technologies” or the “Company”) at September 30, 2023, and the results of operations and cash flows for the nine months ended September 30, 2023. The Company has reclassified certain prior-year amounts to conform to the current year's presentation. The “Notes to Consolidated Financial Statements” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, should be read in conjunction with these consolidated financial statements.

Core Molding Technologies and its subsidiaries operate in the engineered materials market as one operating segment as a molder of thermoplastic and thermoset structural products. The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, power sports, building products, industrial and utilities, and other commercial markets. Core Molding Technologies has its headquarters in Columbus, Ohio, and operates six production facilities in the United States, Canada and Mexico.

2. CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements.

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions.

Revenue Recognition: The Company historically has recognized revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of sheet molding compounds and thermoset and thermoplastic products. Revenue from product sales is generally recognized when products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. In certain circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes control at our production facility.

Tooling revenue is earned from manufacturing multiple tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over a given period. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools.

Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.

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Cash and Cash Equivalents: The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash is held primarily in three banks in three separate jurisdictions. The Company had $18,035,000 cash on hand at September 30, 2023 and had $4,183,000 cash on hand at December 31, 2022.

Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that no allowance for doubtful accounts is needed at September 30, 2023 and December 31, 2022, respectively. Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $479,000 at September 30, 2023 and $502,000 at December 31, 2022. There have been no material changes in the methodology of these calculations.

Inventories: Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $648,000 at September 30, 2023 and $433,000 at December 31, 2022.

Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $1,594,000 at September 30, 2023, and $344,000 at December 31, 2022. Contract assets are classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the nine months ended September 30, 2023, the Company recognized no impairments on contract assets. For the nine months ended September 30, 2023, the Company recognized $2,942,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2022.

Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more-likely-than-not to realize deferred tax benefits through the generation of future taxable income.

Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates whether impairment exists for property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There were no impairment charges of the Company’s long-lived assets for the nine months ended September 30, 2023 and September 30, 2022, respectively.

Goodwill: The purchase consideration of acquired businesses has been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment.

The annual impairment tests of goodwill may be completed through qualitative assessments; however, the Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period.

Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, and capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a

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quantitative approach. There were no impairment charges of the Company's goodwill for the nine months ended September 30, 2023 and September 30, 2022, respectively.

Self-Insurance: The Company is self-insured with respect to its facilities in Columbus, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at September 30, 2023 and December 31, 2022 of $966,000 and $889,000, respectively.

Post-Retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Core Molding Technologies had a liability for post-retirement healthcare benefits based on actuarial computed estimates of $6,249,000 at September 30, 2023 and $6,625,000 at December 31, 2022.

3. RECENT ACCOUNTING PRONOUNCEMENTS

Current Expected Credit Loss (CECL)

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace the previous “incurred loss” model and generally will result in the earlier recognition of allowances for losses. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under the U.S. Securities and Exchange Commission rules, until fiscal years beginning after December 15, 2022. We have adopted this ASU as of January 1, 2023 with no material impact on our consolidated financial position, results of operations, cash flows, or presentation thereof.

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4. NET INCOME PER COMMON SHARE

Net income per common share is computed based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed similarly but includes the effect of the assumed exercise of dilutive stock appreciation rights and restricted stock under the treasury stock method.

On May 13, 2021, the Company's stockholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan provides restricted stock award recipients voting rights equivalent to the Company's common stock and accrual of dividends but not receipt of dividends until all conditions or restrictions related to such award have been satisfied. Accordingly, the restricted shares are not considered participating shares. The 2006 Plan provides restricted stock award recipients voting rights equivalent to the Company’s common stock and accrual and receipt of dividends irrespective of any conditions or restrictions related to such award being satisfied. Accordingly, the restricted shares granted from the 2006 Plan are considered a participating security and the Company is required to apply the two-class method to consider the impact of the restricted shares on the calculation of basic and diluted earnings per share.

The computation of basic and diluted net income per common share (in thousands, except for per share data) is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Net income	$	4,354	$	1,319	$	18,142	$	7,371
Less: net income allocated to participating securities	—		13		—		122
Net income available to common shareholders	$	4,354	$	1,306	$	18,142	$	7,249

Weighted average common shares outstanding — basic	8,623		8,414		8,515		8,337
Effect of weighted average dilutive securities	219		4		201		1
Weighted average common and potentially issuable common shares outstanding — diluted	8,842		8,418		8,716		8,338

Basic net income per common share	$	0.50	$	0.16	$	2.13	$	0.87
Diluted net income per common share	$	0.49	$	0.16	$	2.08	$	0.87

As of September 30, 2023, no awards from the 2006 Plan were outstanding. Therefore, no calculation of basic and diluted net income per participating share for the three and nine months ended September 30, 2023 is presented. The computation of basic and diluted net income per participating share for the three and nine months ended September 30, 2022 is as follows (in thousands, except for per share data):


	Three months ended September 30,			Nine months ended September 30,
		2022			2022
Net income allocated to participating securities		$	13		$	122

Weighted average participating shares outstanding — basic		82			140
Effect of dilutive securities		—			—
Weighted average common and potentially issuable common shares outstanding — diluted		82			140

Basic net income per participating share		$	0.16		$	0.87
Diluted net income per participating share		$	0.16		$	0.87

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5. MAJOR CUSTOMERS

The Company had five major customers during the nine months ended September 30, 2023, BRP, Inc. ("BRP"), Navistar, Inc. ("Navistar"), PACCAR, Inc. ("PACCAR"), Universal Forest Products, Inc. ("UFP") and Volvo Group North America, LLC ("Volvo"). Major customers are defined as customers whose sales individually consist of more than ten percent of the Company's total sales during any annual or interim reporting period in the current year. The loss of a significant portion of sales to these customers could have a material adverse effect on the Company.

The following table presents sales revenue for the above-mentioned customers for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
BRP product sales	$	9,169	$	12,203	$	33,770	$	38,908
BRP tooling sales	3,502		1,119		4,240		1,456
Total BRP sales	12,671		13,322		38,010		40,364

Navistar product sales	18,612		16,536		55,625		44,667
Navistar tooling sales	426		285		612		2,555
Total Navistar sales	19,038		16,821		56,237		47,222

PACCAR product sales	9,238		10,066		28,160		27,971
PACCAR tooling sales	59		—		789		185
Total PACCAR sales	9,297		10,066		28,949		28,156

UFP product sales	4,000		5,099		23,931		29,642
UFP tooling sales	—		—		—		—
Total UFP sales	4,000		5,099		23,931		29,642

Volvo product sales	13,102		15,468		44,073		38,268
Volvo tooling sales	—		128		799		215
Total Volvo sales	13,102		15,596		44,872		38,483

Other product sales	26,775		32,968		89,374		96,102
Other tooling sales	1,845		7,734		2,588		10,964
Total other sales	28,620		40,702		91,962		107,066

Total product sales	80,896		92,340		274,933		275,558
Total tooling sales	5,832		9,266		9,028		15,375
Total sales	$	86,728	$	101,606	$	283,961	$	290,933

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6. INVENTORY

Inventories, net consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Raw materials	$	15,888	$	16,523
Work in process	2,217		2,929
Finished goods	6,883		4,419
Total	$	24,988	$	23,871

Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage.

7. LEASES

The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to four years, some of which include options to extend the lease for five years. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued other liabilities and other non-current liabilities in the Consolidated Balance Sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease.

The Company used the applicable incremental borrowing rate at implementation date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate. At each reporting period when there is a new lease initiated, the Company will utilize its incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities.

The components of lease expense were as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Operating lease cost	$	497	$	419	$	1,360	$	1,265
Short-term lease cost	474		389		1,440		1,097
Total net lease cost	$	971	$	808	$	2,800	$	2,362

Other supplemental balance sheet information related to leases was as follows (in thousands):


	September 30, 2023		December 31, 2022
Operating lease right of use assets	$	4,261	$	5,114

Current operating lease liabilities(A)	$	1,938	$	1,626
Noncurrent operating lease liabilities(B)	2,318		3,516
Total operating lease liabilities	$	4,256	$	5,142

(A)Current operating lease liabilities are included in accrued other liabilities in the Consolidated Balance Sheets.

(B)Noncurrent operating lease liabilities are included in other non-current liabilities in the Consolidated Balance Sheets.

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The following table presents certain information related to lease terms and discount rates for leases:


Operating leases	September 30, 2023		December 31, 2022
Weighted average remaining lease term (in years):	2.6		3.6

Weighted average discount rate:	5.5	%	4.1	%

For the nine months ended September 30, 2023 and 2022, cash payments on amounts included in the measurement of lease liabilities were $1,590,000 and $1,265,000, respectively. During the nine months ended September 30, 2023, the Company terminated a lease for the secondary warehouse in Monterrey, Mexico. As a result, the Company wrote off approximately $1,548,000 and $1,660,000 of lease assets and lease liabilities, respectively, related to this lease. The Company then entered into a new lease related to the secondary warehouse in Monterrey, Mexico, which resulted in right of use assets obtained in exchange for new operating lease liabilities of $641,000. The Company also entered into a new lease related to a warehouse in Matamoros, Mexico, which resulted in additional right of use assets obtained in exchange for new operating lease liabilities of $1,172,000. During the nine months ended September 30, 2022, there were no right of use assets obtained in exchange for new operating lease liabilities.

Maturities of operating lease liabilities were as follows (in thousands):


	September 30, 2023		December 31, 2022
2023 (remainder of year)	$	529	$	1,716
2024	2,127		1,722
2025	1,121		1,065
2026	594		979
2027	189		189
Total lease payments	4,560		5,671
Less: imputed interest	(304)		(529)
Total lease obligations	4,256		5,142
Less: current obligations	(1,938)		(1,626)
Long-term lease obligations	$	2,318	$	3,516

8. PROPERTY, PLANT & EQUIPMENT

Property, plant and equipment, net consisted of the following for the periods specified (in thousands):


	September 30, 2023		December 31, 2022
Property, plant and equipment	$	207,437	$	200,525
Accumulated depreciation	(125,649)		(117,258)
Property, plant and equipment — net	$	81,788	$	83,267

Property, plant, and equipment are recorded at cost, unless obtained through acquisition, then assets are recorded at estimated fair value at the date of acquisition. Depreciation is provided on a straight-line method over the estimated useful lives of the assets. The carrying amount of long-lived assets is evaluated annually to determine if an adjustment to the depreciation period or to the unamortized balance is warranted. Depreciation expense for the three months ended September 30, 2023 and 2022 was $2,812,000 and $2,683,000, respectively. Depreciation expense for the nine months ended September 30, 2023 and 2022 was $8,311,000 and $7,685,000, respectively. Amounts invested in capital additions in progress were $4,285,000 and $7,396,000 at September 30, 2023 and December 31, 2022, respectively. At September 30, 2023 and December 31, 2022, purchase commitments for capital expenditures in progress were $2,000,000 and $2,812,000, respectively.

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9. GOODWILL AND INTANGIBLES

Goodwill activity for the nine months ended September 30, 2023 consisted of the following (in thousands):


Balance at December 31, 2022	$	17,376
Additions	—
Impairment	—
Balance at September 30, 2023	$	17,376

Intangibles, net at September 30, 2023 were comprised of the following (in thousands):


Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(85)	$	165
Trademarks	10 Years	1,610		(919)		691
Non-competition agreement	5 Years	1,810		(1,810)		—
Developed technology	7 Years	4,420		(3,604)		816
Customer relationships	10-12 Years	9,330		(4,588)		4,742
Total		$	17,420	$	(11,006)	$	6,414

Intangibles, net at December 31, 2022 were comprised of the following (in thousands):


Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(78)	$	172
Trademarks	10 Years	1,610		(798)		812
Non-competition agreement	5 Years	1,810		(1,795)		15
Developed technology	7 Years	4,420		(3,131)		1,289
Customer relationships	10-12 Years	9,330		(3,999)		5,331
Total		$	17,420	$	(9,801)	$	7,619

The aggregate intangible asset amortization expense was $396,000 and $487,000 for the three months ended September 30, 2023 and 2022, respectively. The aggregate intangible amortization expense was $1,205,000 and $1,461,000 for the nine months ended September 30, 2023 and 2022, respectively.

10. POST-RETIREMENT BENEFITS

The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Pension expense:
Multi-employer plan	$	221	$	221	$	734	$	682
Defined contribution plan	471		371		1,440		1,122
Total pension expense	692		592		2,174		1,804
Health and life insurance:
Interest cost	66		50		197		149
Amortization of prior service credits	(124)		(124)		(372)		(372)
Amortization of net actuarial loss	6		43		18		130
Net periodic benefit credit	(52)		(31)		(157)		(93)
Total post-retirement benefits expense	$	640	$	561	$	2,017	$	1,711

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The Company made payments of $2,204,000 to pension plans and $563,000 for post-retirement healthcare and life insurance during the nine months ended September 30, 2023. For the remainder of 2023, the Company expects to make approximately $779,000 of pension plan payments, of which $259,000 was accrued at September 30, 2023. The Company also expects to make approximately $871,000 of post-retirement healthcare and life insurance payments for the remainder of 2023, all of which were accrued at September 30, 2023.

11. DEBT

Debt consists of the following (in thousands):


	September 30, 2023		December 31, 2022



Huntington term loans payable	$	23,542	$	24,479
Leaf Capital term loan payable	61		85
Total	23,603		24,564
Less deferred loan costs	(311)		(370)
Less current portion	(1,310)		(1,208)
Long-term debt	$	21,982	$	22,986

Huntington Credit Agreement

On July 22, 2022, the Company entered into a credit agreement (the “Huntington Credit Agreement”) with The Huntington National Bank (“Huntington”), as the sole lender, administrative agent, lead arranger and book runner, and the lenders from time to time thereto. Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured loans (the “Huntington Loans”) in the maximum aggregate principal amount of $75,000,000 ($38,689,000 of which was advanced to the Company on July 22, 2022), comprised of three $25,000,000 commitments: a term loan commitment, a CapEx loan commitment and a revolving loan commitment.

The initial proceeds from the Huntington Credit Agreement were used in part to (i) repay all existing outstanding indebtedness of the Company owing to Wells Fargo Bank, National Association, and FGI Equipment Finance LLC (“FGI”) and (ii) pay certain fees and expenses associated with entering the Huntington Credit Agreement.

At the option of the Company, the Huntington Loans shall be comprised of Alternative Base Rate (ABR) Loans or Secure Overnight Financing Rate (SOFR) Loans.

ABR Loans bear interest at a per annum rate equal to ABR plus a margin of 280 to 330 basis points determined based on the Company’s leverage ratio. ABR is the greater of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 0.50% per annum and (c) Daily Simple SOFR for such day (taking into account any floor set forth in the definition of “Daily Simple SOFR”) plus 1.00% per annum; provided, that if the ABR shall be less than 0.00%, then ABR shall be deemed to be 0.00%.

SOFR Loans bear interest at a per annum rate equal to Daily Simple SOFR plus a margin of 180 to 230 basis points determined based on the Company’s leverage ratio. Daily Simple SOFR means, for any day (a “SOFR Rate Day”), a rate per annum equal to the greater of (a) SOFR for the day (such day, the “SOFR Determination Date”) that is five (5) U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website, and (b) 0.00%.

The Company’s obligations under the Huntington Credit Agreement are secured by all of the U.S. and Canadian assets of the Company, including all of its equity interests in each of the Company’s U.S. and Canadian subsidiaries and 65% of the Company’s equity interest in its Mexican subsidiaries, and are unconditionally guaranteed by certain subsidiaries of the Company.

The Huntington Credit Agreement contains certain customary representations and warranties, conditions, affirmative and negative covenants and events of default. The Company is in compliance with such covenants as of September 30, 2023.

Voluntary prepayments of amounts outstanding under the Huntington Loans are permitted at any time without premium or penalty.

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The Company incurred debt origination fees of $402,000 related to the Huntington Credit Agreement, which are being amortized over the life of the agreement.

Huntington Term Loan

Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a Term Loan commitment (the “Huntington Term Loan”) of $25,000,000 ($25,000,000 of which was advanced to the Company on July 22, 2022). The Huntington Term Loan is to be repaid in monthly installments beginning August 2022 of $104,000 per month for the first 24 months, $156,000 per month for the next 24 months, $208,000 for the next 12 months and the remaining balance to be paid on July 22, 2027.

Interest Rate Swap Agreement

The Company entered into an interest rate swap agreement that became effective July 22, 2022 and continues through July 2027, which was designated as a cash flow hedge for $25,000,000 of the Huntington Term Loan. Under this agreement, the Company will pay a fixed rate of 2.95% to the swap counterparty in exchange for the Term Loans daily variable SOFR. As a result the interest rate paid on the Huntington Term Loan was 4.75% as of September 30, 2023 and December 31, 2022. The fair value of the interest rate swap was an asset of $1,131,000 and $765,000 at September 30, 2023 and December 31, 2022, respectively.

Huntington Capex Loan

Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured Capex loan (the “Huntington Capex Loan”) in the maximum aggregate principal amount of $25,000,000 (none of which was advanced to the Company on July 22, 2022 and through September 30, 2023). Proceeds of the Huntington Capex Loan will be used to finance the ongoing capital expenditure needs of the Company.

Any borrowings from the Huntington Capex Loan will be converted to new term loans annually each February, beginning February 2025, and will have monthly principal repayments based on a sixty-month amortization period with all amounts outstanding on the Huntington Capex Loan being fully due on July 22, 2027.

Huntington Revolving Loan

Pursuant to the terms of the Huntington Credit Agreement, Huntington makes available to the Company a revolving loan commitment (the “Huntington Revolving Loan”) of $25,000,000 ($13,689,000 of which was advanced to the Company on July 22, 2022) at the Company's option at any time during the five-year period following the closing. The Company has $25,000,000 of available revolving loans of which none was outstanding as of September 30, 2023. As of December 31, 2022, $1,864,000 was outstanding.

The revolving loan commitment terminates, and all outstanding borrowings thereunder must be repaid on July 22, 2027.

The interest rate for the Huntington Revolving Loan was 7.11% and 6.12% as of September 30, 2023 and December 31, 2022, respectively.

Leaf Capital Funding

On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment. The parties agreed to a fixed interest rate of 5.50% and a term of 60 months.

12. INCOME TAXES

The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more-likely-than-not to realize deferred tax benefits through the generation of future taxable income. Management makes assumptions, judgments, and estimates to determine the deferred tax assets and liabilities. The Company evaluates provisions and deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available evidence.

At September 30, 2023, the Company had net deferred tax assets in Canada, Mexico and the United States. The deferred tax assets attributable to United States local positions include a valuation allowance due to cumulative losses over the last three years and uncertainty related to the Company's ability to realize the deferred assets. The Company believes that the deferred tax assets associated with the Canadian, Mexican, and federal United States tax jurisdictions are more-likely-than-not to be realizable based on estimates of future taxable income.

Income tax expense for the nine months ended September 30, 2023 is estimated to be $5,198,000, approximately 22.3% of income before income taxes, and includes tax expense for the United States, Canadian and Mexican tax jurisdictions. The Company recognized a tax benefit of $535,000 related to the difference in grant price and vest price for stock awards that

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vested during the nine months ended September 30, 2023. Income tax expense for the nine months ended September 30, 2022 was estimated to be $4,658,000, approximately 38.7% of income before income taxes and includes tax expense in the Canadian and Mexican tax jurisdictions. U.S. operations incurred a net loss for the nine months ended September 30, 2022 and the net loss tax benefit was offset with a full valuation reserve.

The Company files income tax returns in the United States, Mexico, Canada and various state and local jurisdictions. The Company is subject to federal income tax examinations for tax years 2014 through 2017 but the scope of examination is limited to adjustments resulting from Net Operating Loss carry back claims from the 2019, 2020, and 2021 tax years. The Company is subject to federal income tax examinations for years 2019 through 2021 with unlimited scope. The Company is not subject to state examinations for years before 2018. The Company is not subject to Mexican income tax examinations by Mexican authorities for the years before 2017 and is not subject to Canadian income tax examinations by Canadian authorities for the years before 2018.

13. STOCK BASED COMPENSATION

On May 13, 2021, The Company's stockholders approved the 2021 Long Term Equity Incentive Plan (the “2021 Plan”) that replaced the 2006 Long Term Equity Incentive Plan (the “2006 Plan”) approved in May 2006 and amended in May 2015. The 2021 Plan allows for grants to employees, officers, non-employee directors, consultants, independent contractors and advisors of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards (“stock awards”) up to an aggregate of 295,797 awards. Awards can be granted under the 2021 Plan through the earlier of May 13, 2031, or the date the maximum number of available awards under the 2021 Plan have been granted. No new awards may be granted from the 2006 Plan.

Awards under the 2021 Plan vest over one to three years, or vest upon the date of a participant’s death, disability or change in control. No shares are outstanding under the 2006 Plan.

The Company follows the provisions of FASB ASC 718 requiring that compensation cost relating to share-based payment transactions be recognized in the financial statements. The cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity award).

During the nine months ended September 30, 2023, 125,701 shares of the Company's common stock were withheld from employees to satisfy income tax withholding obligations in connection with the vesting and exercising of stock awards. During the nine months ended September 30, 2022, 48,286 shares were withheld from employees to satisfy income tax withholding obligations in connection with the vesting and exercising of stock awards.

Restricted Stock

The Company grants shares of its common stock to certain directors, officers, key managers and employees in the form of unvested stock and units (“Restricted Stock”). These awards are measured at the fair value of the Company's common stock on the date of issuance and recognized ratably as compensation expense over the applicable vesting period, which is typically three years. The Company adjusts compensation expense for actual forfeitures, as they occur.

The following summarizes the status of Restricted Stock and changes during the nine months ended September 30, 2023:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2022	502,747	$	10.46
Granted	179,580	15.98
Vested	(262,788)	9.66
Forfeited	(45,956)	12.46
Unvested balance at September 30, 2023	373,583	$	13.33

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At September 30, 2023 and 2022, there was $3,676,000 and $4,199,000, respectively, of total unrecognized compensation expense, related to Restricted Stock grants. The unrecognized compensation expense at September 30, 2023 is expected to be recognized over the weighted-average period of 1.8 years. Total compensation cost related to Restricted Stock grants for the three months ended September 30, 2023 and 2022 was $721,000 and $623,000, respectively. Total compensation cost related to Restricted Stock grants for the nine months ended September 30, 2023 and 2022 was $2,187,000 and $1,660,000, respectively, all of which was recorded to selling, general and administrative expense.

Performance Restricted Stock Awards

The Company grants shares of its common stock to certain officers and key managers in the form of shares of performance-based restricted stock ("Performance Restricted Stock Awards"). These awards are measured at the fair value of the Company's common stock on the date of issuance and recognized ratably as compensation expense over the applicable vesting period to the extent that the performance measures have been satisfied as of the last day of the performance period of the award. The total amount payable as of the award's vesting date is determined by the three year average Operational Income and Return on Capital Employed performance measure achievement as defined in the applicable award agreement. The Company adjusts compensation expense for actual forfeitures as they occur and for estimated performance measure achievement.

The following summarizes the status of Performance Restricted Stock Awards and changes during the nine months ended September 30, 2023:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2022	—	$	—
Granted	13,350	15.98
Vested	—	—
Forfeited	(1,613)	15.98
Unvested balance at September 30, 2023	11,737	$	15.98

At September 30, 2023, there was $151,000 of total unrecognized compensation expense related to Performance Restricted Stock Awards. As of September 30, 2022, there was no unrecognized compensation expense related to Performance Restricted Stock Awards. The unrecognized compensation expense at September 30, 2023 is expected to be recognized over the weighted-average period of 2.4 years. Total compensation cost related to Performance Restricted Stock Awards for the three and nine and months ended September 30, 2023 was $16,000 and $36,000, respectively, all of which was recorded to selling, general and administrative expense.

Stock Appreciation Rights

As part of the Company's 2019 annual grant, Stock Appreciation Rights ("SARs") were granted with a grant price of $10. These awards have a contractual term of five years and vest ratably over a period of three years or immediately vest if the recipient is over 65 years of age. These awards are valued using the Black-Scholes option pricing model, and are recognized ratably as compensation expense over three years.

A summary of the Company's stock appreciation rights activity for the nine months ended September 30, 2023 is as follows:


	Number of Shares	Weighted Average Exercise Price
Outstanding as of December 31, 2022	177,016	$	10.00
Granted	—	—
Exercised	(177,016)	10.00
Forfeited	—	—
Outstanding at end of the period ended September 30, 2023	—	—
Exercisable at end of the period ended September 30, 2023	—	—

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The weighted average grant date fair value of exercised SARs was $2.57. The total intrinsic value of SARs exercised as of September 30, 2023 was $2,286,000. There was no unrecognized compensation expense, related to SARs at September 30, 2023. For the nine months ended September 30, 2023, there was no compensation cost. Total compensation cost related to SARs for the nine months ended September 30, 2022 was $45,000, all of which was recorded to selling, general and administrative expense.

14. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This hierarchical valuation methodology provides a fair value framework that describes the categorization of assets and liabilities in three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.

The three levels are defined as follows:

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.

Level 3 -Significant unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability.

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, debt, interest rate swaps and foreign currency derivatives. Cash and cash equivalents, accounts receivable and accounts payable carrying values as of September 30, 2023 and December 31, 2022 approximate fair value due to the short-term maturities of these financial instruments. As of September 30, 2023 and December 31, 2022, the carrying amounts of the Huntington Term Loan and Huntington Revolving Loan approximated fair value due to the short-term nature of the underlying variable rate SOFR agreements. The Company had Level 2 fair value measurements at September 30, 2023 relating to the Company’s interest rate swaps and foreign currency derivatives.

Derivative and hedging activities

Derivatives are formally assessed both at inception and at least quarterly thereafter, to ensure that derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, hedge accounting is discontinued, and any future mark-to-market adjustments are recognized in earnings. The effective portion of gain or loss is reported in other comprehensive income and the ineffective portion is reported in earnings. The impacts of these contracts were largely offset by gains and losses resulting from the impact of changes in exchange rates on transactions denominated in the foreign currency. As of September 30, 2023, the Company had no ineffective portion related to the cash flow hedges.

Foreign Currency Derivatives

The Company conducted business in foreign countries and paid certain expenses in foreign currencies; therefore, the Company was exposed to foreign currency exchange risk between the U.S. Dollar and foreign currencies, which could impact the Company’s operating income and cash flows. To mitigate risk associated with foreign currency exchange, the Company entered into forward contracts to exchange a fixed amount of U.S. Dollars for a fixed amount of foreign currency, which will be used to fund future foreign currency cash flows. At inception, all forward contracts are formally documented as cash flow hedges and are measured at fair value each reporting period. The notional contract value of foreign currency derivatives was $20,222,000 and $13,851,000 as of September 30, 2023 and December 31, 2022, respectively.

Interest Rate Swap

The Company entered into an interest rate swap contract to fix the interest rate on an initial aggregate amount of $25,000,000 thereby reducing exposure to interest rate changes. The interest rate swap pays a fixed rate of 2.95% to the swap counterparty in

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exchange for daily SOFR. At inception, all interest rate swaps were formally documented as cash flow hedges and are measured at fair value each reporting period. See Note 11, "Debt", for additional information. The notional contract value of the interest rate swap was $23,542,000 and $24,479,000 as of September 30, 2023 and December 31, 2022, respectively.

Financial statement impacts

The following table detail amounts related to our derivatives designated as hedging instruments (in thousands):


	Fair Value of Derivative Instruments September 30, 2023
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Prepaid expenses other current assets	$	190	Accrued other liabilities	$	67
	Other non-current assets	$	—	Other non-current liabilities	$	—


Interest rate swaps	Prepaid expenses other current assets	$	536	Accrued other liabilities	$	—
	Other non-current assets	$	595	Other non-current liabilities	$	—


	Fair Value of Derivative Instruments December 31, 2022
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Prepaid expenses other current assets	$	72	Accrued other liabilities	$	157
	Other non-current assets	$	—	Other non-current liabilities	$	—


Interest rate swaps	Prepaid expenses other current assets	$	280	Accrued other liabilities	$	—
	Other non-current assets	$	485	Other non-current liabilities	$	—

The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income ("AOCI") for the three months ended September 30, 2023 and 2022 (in thousands):


Derivatives in subtopic 815-20 Cash Flow Hedging Relationship:	Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income(A)	Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
	2023		2022			2023		2022
Foreign exchange contracts	$	88	$	(626)	Cost of goods sold	$	897	$	—
					Selling, general and administrative expense	$	89	$	—
Interest rate swaps	$	334	$	767	Interest expense	$	125	$	(38)

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The following tables summarize the amount of unrealized and realized gain (loss) recognized in AOCI for the nine months ended September 30, 2023 and 2022 (in thousands):


Derivatives in subtopic 815-20 Cash Flow Hedging Relationship:	Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income(A)	Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
	2023		2022			2023		2022
Foreign exchange contracts	$	2,073	$	(626)	Cost of goods sold	$	1,697	$	—
					Selling, general and administrative expense	$	168	$	—
Interest rate swaps	$	707	$	767	Interest expense	$	341	$	(38)

(A) The foreign currency derivative activity reclassified from AOCI is allocated to cost of goods sold and selling, general and administrative expense based on the percentage of foreign currency spend.

15. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents changes in AOCI, net of tax, for the nine months ended September 30, 2023 and 2022 (in thousands):


2022:	Derivative Hedging Activities		Post Retirement Benefit Plan Items(A)		Accumulated Other Comprehensive Income (Loss)
2022:
Balance at December 31, 2021	$	—	$	1,075	$	1,075
Other comprehensive income before reclassifications	141		—		141
Amounts reclassified from accumulated other comprehensive income	38		(242)		(204)
Income tax benefit (expense)	(7)		51		44
Balance at September 30, 2022	$	172	$	884	$	1,056

2023:
Balance at December 31, 2022	$	546	$	2,507	$	3,053
Other comprehensive income before reclassifications	2,780		—		2,780
Amounts reclassified from accumulated other comprehensive income	(2,206)		(354)		(2,560)
Income tax benefit (expense)	(126)		75		(51)
Balance at September 30, 2023	$	994	$	2,228	$	3,222

(A)The effect of post-retirement benefit items reclassified from AOCI is included in other income and expense on the Consolidated Statements of Operations. These AOCI components are included in the computation of net periodic benefit cost (see Note 10, "Post-Retirement Benefits" for additional details). The tax effect of post-retirement benefit items reclassified from AOCI is included in income tax expense on the Consolidated Statements of Operations.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of the federal securities laws, which are subject to the "safe harbor" created by Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As a general matter, forward-looking statements are those focused upon future plans, objectives or performance as opposed to historical items and include statements of anticipated events or trends and expectations and beliefs relating to matters not historical in nature. Such forward-looking statements involve known and unknown risks and are subject to uncertainties and factors relating to Core Molding Technologies' operations and business environment, all of which are difficult to predict and many of which are beyond Core Molding Technologies' control. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expect,” “intend,” “plans,” “projects,” “believes,” “estimates,” “encouraged,” “confident” and similar expressions are used to identify these forward-looking statements. These uncertainties and factors could cause Core Molding Technologies' actual results to differ materially from those matters expressed in or implied by such forward-looking statements.

Core Molding Technologies believes that the following factors, among others, could affect its future performance and cause actual results to differ materially from those expressed or implied by forward-looking statements made in this Quarterly Report on Form 10-Q: business conditions in the plastics, transportation, power sports, utilities and commercial product industries (including changes in demand for truck production);

•federal and state regulations (including engine emission regulations);

•general macroeconomic conditions, including uncertainties surrounding volatility in financial markets, and the availability of capital and credit;

•general economic, social, regulatory (including foreign trade policy) and political environments in the countries in which Core Molding Technologies operates;

•the adverse impact of coronavirus (COVID-19) global pandemic or other pandemics in the future on our business, results of operations, financial position, liquidity or cash flow, as well as impact on customers and supply chains;

•safety and security conditions in Mexico;

•fluctuations in foreign currency exchange rates;

•dependence upon certain major customers as the primary source of Core Molding Technologies’ sales revenues;

•efforts of Core Molding Technologies to expand its customer base; the ability to develop new and innovative products and to diversify markets, materials and processes and increase operational enhancements;

•ability to accurately quote and execute manufacturing processes for new business; the actions of competitors, customers, and suppliers;

•failure of Core Molding Technologies’ suppliers to perform their obligations;

•the availability of raw materials;

•inflationary pressures; new technologies; regulatory matters;

•labor relations and labor availability as well as possible work stoppages or labor disruptions at one or more of our union locations or one of our customer or supplier locations;

•the loss or inability of Core Molding Technologies to attract and retain key personnel;

•the ability to successfully identify, evaluate and manage potential acquisitions and to benefit from and properly integrate any completed acquisitions;

•federal, state and local environmental laws and regulations;

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•the availability of sufficient capital; the ability of Core Molding Technologies to provide on-time delivery to customers, which may require additional shipping expenses to ensure on-time delivery or otherwise result in late fees and other customer charges; risk of cancellation or rescheduling of orders;

•management’s decision to pursue new products or businesses which involve additional costs, risks or capital expenditures;

•inadequate insurance coverage to protect against potential hazards; equipment and machinery failure;

•product liability and warranty claims; and

•other risks identified from time to time in Core Molding Technologies’ other public documents on file with the Securities and Exchange Commission, including those described in Item 1A of Core Molding Technologies' Annual Report on Form 10-K for the year ended December 31, 2022.

Description of the Company

Business Overview

General

The Company’s business and operating results are directly affected by changes in overall customer demand, operational costs and performance and leverage of our fixed cost and selling, general and administrative ("SG&A") infrastructure.

Product sales fluctuate in response to several factors, including many that are beyond the Company’s control, such as general economic conditions, interest rates, government regulations, consumer spending, raw material cost inflation, labor availability, and our customers’ production rates and inventory levels. The Company's customers operate in many different markets with different cyclicality and seasonality.

Operating performance is dependent on the Company’s ability to manage changes in input costs for items such as raw materials, labor, and overhead operating costs. The Company has certain contractual commitments that restrict its ability to pass through changes in input costs to certain customers. As a result, during periods of significant increases or decreases in input costs operating results may be impacted.

Performance is also affected by manufacturing efficiencies, including items such as on time delivery, quality, scrap, and productivity. Market factors of supply and demand can impact operating costs. In periods of rapid increases or decreases in customer demand, the Company is required to ramp operational activity up or down quickly, which may impact manufacturing efficiencies more than in periods of steady demand.

Operating performance is also dependent on the Company’s ability to effectively launch new customer programs, which are extremely complex in nature. The start of production of a new program is the result of a process of developing new molds and assembly equipment, validation testing, manufacturing process design, development and testing, along with training and often hiring employees. Meeting the targeted levels of manufacturing efficiency for new programs usually occurs over time as the Company gains experience with new tools and processes. Therefore, during a new program launch period, start-up costs and inefficiencies can affect operating results.

Business Outlook

Looking forward, based on industry analyst projections, customers' forecasts, impacts from United Auto Worker strikes at customer facilities, a return to more normal seasonality and macro-economic impacts of increasing interest rates, the Company expects fourth quarter 2023 revenues to be 15% – 20% less than the prior year fourth quarter. The most significant impacts to revenues for the fourth quarter will be from auto and truck customer demand directly impacted by the United Auto Workers strike, decrease demand from industrial customers who have reduced demand as a result of inventory optimization and lower tooling revenues. For the full year 2023, the Company anticipates that revenues will be 5%-10% lower than 2022.

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For 2024 the Company anticipates headwinds from macro-economic tightening, projected truck cyclicality and end of life of certain programs to negatively impact the Company’s revenues compared to 2023. Industry analysts are projecting a demand decrease in 2024 in the North American heavy-duty truck market compared to 2023 and then a rebound in demand in 2025.

The Company experienced lower raw material costs for the nine months ended September 30, 2023 compared to 2022 for most of the Company's significant raw materials. The Company anticipates current year fourth quarter raw material prices to remain below prior year fourth quarter levels.

The Company continues to monitor the impact of domestic and international bank failures, which had no direct impact on our results of operations and financial condition during the nine months ended September 30, 2023. Any additional market disruptions could impact banks directly used by the Company or those used by our customers or suppliers, which could have a negative effect on the Company’s financial position and results of operations.

Results of Operations

Three Months Ended September 30, 2023, as Compared to Three Months Ended September 30, 2022

Net sales for the three months ended September 30, 2023 and 2022 totaled $86,728,000 and $101,606,000, respectively. Included in net sales were tooling project sales of $5,832,000 and $9,266,000 for the three months ended September 30, 2023 and 2022, respectively. Tooling sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis. Product sales, excluding tooling project sales, for the three months ended September 30, 2023 were $80,896,000 compared to $92,340,000 for the same period in 2022. The decrease in sales is primarily the result of lower demand from the power sports, building products and industrial markets, offset by price increases related to raw material and labor cost inflation recoveries. The Company's product sales for the three months ended September 30, 2023 compared to the same period in 2022 by market are as follows (in thousands):


	Three months ended September 30,
	2023		2022
Medium and heavy-duty truck	$	45,395	$	44,951
Power sports	13,705		19,963
Building products	4,823		6,779
Industrial and utilities	4,473		6,087
All other	12,500		14,560
Net product revenue	$	80,896	$	92,340

Gross margin was approximately 17.6% of sales for the three months ended September 30, 2023, compared with 13.1% for the three months ended September 30, 2022. The gross margin percentage increase was positively impacted by net changes in selling price and raw material costs of 4.3% and operational efficiencies and product mix of 2.6%, offset by unfavorable foreign currency impact of 0.9% and lower fixed cost leverage of 1.5%.

SG&A was $9,403,000 for the three months ended September 30, 2023, compared to SG&A costs of $8,671,000 for the three months ended September 30, 2022. Increased SG&A expenses resulted primarily from one-time press relocation costs of $540,000 and higher bonus expense of $245,000.

During the third quarter of 2022, the Company refinanced its existing credit facility. As a result, the Company recorded one-time losses of $1,234,000 from writing off outstanding deferred loan costs and $348,000 from prepayment fees associated with the repayment of the FGI Term Loan.

Net interest expense totaled $187,000 for the three months ended September 30, 2023, compared to interest expense of $511,000 for the three months ended September 30, 2022. The decrease in net interest expense was primarily due to lower average outstanding debt balance for the three months ended September 30, 2023, when compared to the same period in 2022. The Company also recognized $133,000 of interest income during the three months ended September 30, 2023.

Income tax expense for the three months ended September 30, 2023 is estimated to be $1,386,000, approximately 24.1% of income before income taxes, and includes tax expense in the United States, Canadian and Mexican tax jurisdictions. Income tax expense for the three months ended September 30, 2022 was estimated to be $1,251,000, approximately 48.7% of income

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before income taxes and includes tax expense in the Canadian and Mexican tax jurisdictions. U.S. operations incurred a net loss for the three months ended September 30, 2022 and the net loss tax benefit was offset with a full valuation reserve.

The Company recorded net income for the three months ended September 30, 2023 of $4,354,000 or $0.50 per basic share and $0.49 per diluted share, compared with net income of $1,319,000, or $0.16 per basic and diluted share, for the three months ended September 30, 2022.

Comprehensive income totaled $3,720,000 for the three months ended September 30, 2023, compared to comprehensive income of $1,389,000 for the same period ended September 30, 2022. The increase was related primarily to the increase in net income of $3,035,000, offset by net changes in foreign currency and interest rate hedges of $675,000.

Nine Months Ended September 30, 2023, as Compared to Nine Months Ended September 30, 2022

Net sales for the nine months ended September 30, 2023 and 2022 totaled $283,961,000 and $290,933,000, respectively. Included in net sales were tooling project sales of $9,028,000 and $15,375,000 for the nine months ended September 30, 2023 and 2022, respectively. Tooling sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis. Product sales, excluding tooling project sales, for the nine months ended September 30, 2023 were $274,933,000 compared to $275,558,000 for the same period in 2022. The slight decrease in sales is primarily the result of lower demand in building products, industrial and power sports markets, offset by higher demand from the medium and heavy-duty truck markets, revenues from new program launches and price increases related to raw material and labor cost inflation recoveries. The Company's product sales for the nine months ended September 30, 2023 compared to the same period in 2022 by market are as follows (in thousands):


	Nine months ended September 30,
	2023		2022
Medium and heavy-duty truck	$	140,104	$	116,864
Power sports	59,619		62,133
Building products	27,301		36,219
Industrial and utilities	17,525		19,814
All other	30,384		40,528
Net product revenue	$	274,933	$	275,558

Gross margin was approximately 18.9% of sales for the nine months ended September 30, 2023, compared with 14.1% for the nine months ended September 30, 2022. The gross margin percentage increase was positively impacted by net changes in selling price and raw material costs of 5.4% and operational efficiencies and product mix of 0.7%, offset by unfavorable foreign currency impact of 0.4% and lower fixed cost leverage of 0.9%.

SG&A was $29,562,000 for the nine months ended September 30, 2023, compared to SG&A costs of $25,889,000 for the nine months ended September 30, 2022. Increased SG&A expenses resulted primarily from higher labor and benefits costs of $1,563,000, higher bonus expense of $1,303,000, one-time press relocation costs of $540,000 and higher professional fees of $475,000.

During the nine months ended September 30, 2022, the Company refinanced its existing credit facility. As a result, the Company recorded one-time losses of $1,234,000 from writing off outstanding deferred loan costs and $348,000 from prepayment fees associated with the repayment of its term loan with FGI Equipment Finance LLC (the "FGI Term Loan").

Net interest expense totaled $836,000 for the nine months ended September 30, 2023, compared to interest expense of $1,511,000 for the nine months ended September 30, 2022. The decrease in net interest expense was due to lower interest rates and lower average outstanding debt balance for the nine months ended September 30, 2023, when compared to the same period in 2022. The Company also recognized $158,000 of interest income during the nine months ended September 30, 2023.

Income tax expense for the nine months ended September 30, 2023 is estimated to be $5,198,000, approximately 22.3% of income before income taxes, and includes tax expense in United States, Canadian and Mexican tax jurisdictions. The Company recognized a tax benefit of $535,000 related to the difference in grant price and vest price for stock awards that vested during the nine months ended September 30, 2023. Income tax expense for the nine months ended September 30, 2022 was estimated to be $4,658,000, approximately 38.7% of income before income taxes and includes tax expense in the Canadian and Mexican

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tax jurisdictions. U.S. operations incurred a net loss for the nine months ended September 30, 2022 and the net loss tax benefit was offset with a full valuation reserve.

The Company recorded net income for the nine months ended September 30, 2023 of $18,142,000 or $2.13 per basic share and $2.08 per diluted share, compared with net income of $7,371,000, or $0.87 per basic and diluted share, for the nine months ended September 30, 2022.

Comprehensive income totaled $18,311,000 for the nine months ended September 30, 2023, compared to comprehensive income of $7,314,000 for the same period ended September 30, 2022. The increase was primarily related to the increase in net income of $10,771,000.

Liquidity and Capital Resources

Historically, the Company’s primary sources of funds have been cash generated from operating activities and borrowings from third parties. Primary cash requirements are for operating expenses, capital expenditures, repayments of debt, and acquisitions. The Company from time to time will enter into foreign exchange contracts and interest rate swaps to mitigate risk of foreign exchange and interest rate volatility. As of September 30, 2023, the Company had outstanding foreign exchange contracts with notional amounts totaling $20,222,000. As of September 30, 2023, the Company had outstanding interest rate swaps with notional amounts totaling $23,542,000.

Cash provided by operating activities for the nine months ended September 30, 2023 totaled $26,149,000. Net income of $18,142,000 positively impacted operating cash flows. Non-cash deductions of depreciation and amortization, and share-based compensation included in net income amounted to $9,575,000 and $2,223,000, respectively. Increased working capital reduced cash provided by operating activities by $4,073,000. The increase in working capital was primarily related to changes in prepaid expenses and accounts receivable, offset by a change in accrued liabilities.

Cash used in investing activities for the nine months ended September 30, 2023 was $6,803,000, which related to purchases of property, plant and equipment. The Company anticipates spending approximately $9,000,000 to $11,000,000 during 2023 on property, plant and equipment purchases for all of the Company's operations. At September 30, 2023, purchase commitments for capital expenditures in progress were $2,000,000. The Company anticipates using cash from operations, its available revolving line of credit or its capex line to fund capital investments.

Cash used for financing activities for the nine months ended September 30, 2023 totaled $5,494,000, which consisted of payments related to the purchase of treasury stock of $2,669,000 in exchange for payment of taxes related to net share settlements of equity awards, net revolving loan payments of $1,864,000 and repayments of long-term debt of $961,000.

At September 30, 2023, the Company had $18,035,000 cash on hand, a $25,000,000 revolving loan facility and $25,000,000 Capex loan facility with no outstanding balances.

The Company is required to meet certain financial covenants included in the Huntington Credit Agreement (defined below), which covenants include a net debt leverage and a fixed charge coverage ratio. As of September 30, 2023, the Company was in compliance with its financial covenants associated with the loans made under the Huntington Credit Agreement as described below.

Management believes cash on hand, cash flow from operating activities and available borrowings under the Company's credit agreement will be sufficient to meet the Company's current liquidity needs.

Huntington Credit Agreement

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At the option of the Company, the Huntington Loans shall be comprised of Alternative Base Rate (ABR) Loans or Secure Overnight Financing Rate (SOFR) Loans.

Voluntary prepayments of amounts outstanding under the Huntington Loans are permitted at any time without premium or penalty.

The Company incurred debt origination fees of $402,000 related to the Huntington Credit Agreement, which are being amortized over the life of the agreement.

Huntington Term Loan

Interest Rate Swap Agreement

Huntington Capex Loan

Huntington Revolving Loan

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The revolving loan commitment terminates, and all outstanding borrowings thereunder must be repaid on July 22, 2027.

The interest rate for the Huntington Revolving Loan was 7.11% and 6.12% as of September 30, 2023 and December 31, 2022, respectively.

Leaf Capital Funding

On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment. The parties agreed to a fixed interest rate of 5.50% and a term of 60 months.

Off-Balance Sheet Arrangements

The Company did not have any significant off-balance sheet arrangements as of September 30, 2023 or December 31, 2022.

The Company did not have or experience any material changes outside the ordinary course of business as to contractual obligations, including long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations or other long-term liabilities reflected in the Company’s Consolidated Balance Sheet under GAAP, as of September 30, 2023 and December 31, 2022.

Critical Accounting Policies and Estimates

For information on critical accounting policies and estimates, see Note 2, "Critical Accounting Policies and Estimates," to the consolidated financial statements included herein.

Recent Accounting Pronouncements

For information on the impact of recently issued accounting pronouncements, see Note 3, "Recent Accounting Pronouncements," to the consolidated financial statements included herein.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Core Molding Technologies’ primary market risk results from changes in the price of commodities used in its manufacturing operations. Core Molding Technologies is also exposed to fluctuations in interest rates and foreign currency fluctuations associated with the Mexican Peso and Canadian Dollar. Core Molding Technologies does not hold any material market risk sensitive instruments for trading purposes. The Company uses derivative financial instruments to hedge exposure to fluctuations in foreign exchange rates and interest rates.

Core Molding Technologies has the following three items that are sensitive to market risks: (1) non-hedged loans under the Huntington Credit Agreement, all of which bear a variable interest rate; (2) non-hedged foreign currency purchases in which the Company purchases Mexican Pesos and Canadian Dollars with United States Dollars to meet certain obligations; and (3) raw material purchases in which Core Molding Technologies purchases various resins, fiberglass, and metal components for use in production. The prices and availability of these materials are affected by the prices of crude oil, natural gas and other feedstocks, tariffs, as well as processing capacity versus demand.

Assuming a hypothetical 10% change in short-term interest rates, interest paid on the Term Loan would be impacted, as the interest rate on these loans is based upon SOFR. It would not, however, have a material effect on earnings before tax as the Company has entered into a hedge to offset changes in SOFR.

Assuming a hypothetical 10% decrease in the United States Dollar to Mexican Peso and Canadian Dollar exchange rate, the Company would be impacted by an increase in operating costs, which would have an adverse effect on operating margins.

Assuming a hypothetical 10% increase in commodity prices, Core Molding Technologies would be impacted by an increase in raw material costs, which would have an adverse effect on operating margins.

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Item 4. Controls and Procedures

As of the end of the period covered by this report, the Company has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and its Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based upon this evaluation, the Company’s management, including its Chief Executive Officer and its Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were (i) effective to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act was accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure, and (ii) effective to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There were no changes in internal controls over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) that occurred in the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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Part II — Other Information

Item 1. Legal Proceedings

From time to time, the Company is involved in litigation incidental to the conduct of its business. The Company is presently not involved in any legal proceedings which in the opinion of management are likely to have a material adverse effect on the Company's consolidated financial position or results of operations.

Item 1A. Risk Factors

There have been no material changes in Core Molding Technologies' risk factors from those previously disclosed in Core Molding Technologies' Annual Report on Form 10-K for the year ended December 31, 2022.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

The Company repurchased 29,804 shares of our common stock during the three months ended September 30, 2023. All stock was purchased to satisfy tax withholding obligations upon vesting of restricted stock awards and exercise of stock appreciation rights. Details of the repurchases of our common stock during the three months ended September 30, 2023 are included in the following table:


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number that May Yet be Purchased Under the Plans or Programs
July 1 to 31, 2023	302	$	22.55	—	—
August 1 to 31, 2023	29,502	$	25.59	—	—
September 1 to 30, 2023	—	$	—	—	—

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

Item 6. Exhibits

See Index to Exhibits.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CORE MOLDING TECHNOLOGIES, INC.

Date:

November 7, 2023

By:

/s/ David L. Duvall

David L. Duvall

President, Chief Executive Officer, and Director

Date:

November 7, 2023

By:

/s/ John P. Zimmer

John P. Zimmer

Executive Vice President, Secretary, Treasurer and Chief Financial Officer

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INDEX TO EXHIBIT

Exhibit No.

Description

Location

3(a)(1)

Certificate of Incorporation of Core Molding Technologies, Inc. as filed with the Secretary of State of Delaware on October 8, 1996

Incorporated by reference to Exhibit 4(a) to Registration Statement on Form S-8 (Registration No. 333-29203)

3(a)(2)

Certificate of Amendment of Certificate of Incorporation of Core Molding Technologies, Inc. as filed with the Secretary of State of Delaware on November 6, 1996

Incorporated by reference to Exhibit 4(b) to Registration Statement on Form S-8 (Registration No. 333-29203)

3(a)(3)

Certificate of Amendment of Certificate of Incorporation as filed with the Secretary of State of Delaware on August 28, 2002

Incorporated by reference to Exhibit 3(a)(4) to Quarterly Report on Form 10-Q for the quarter ended September 30, 2002

3(a)(4)

Certificate of Designation, Preferences and Rights of Series B Junior Participating Preferred Stock as filed with the Secretary of State of Delaware on April 21, 2020

Incorporated by reference to Exhibit 3.1 to Form 8-K filed April 22, 2020

3(a)(5)

Certificate of Elimination of the Series A Junior Participant Preferred Stock as filed with the Delaware Sec. of State on April 1, 2021

Incorporated by reference to Exhibit 3(a)(5) to Form 8-K filed April 6, 2021

3(b)(1)

Amended and Restated By-Laws of Core Molding Technologies, Inc.

Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed January 4, 2008

3(b)(2)

Amendment No. 1 to the Amended and Restated By-Laws of Core Molding Technologies, Inc.

Incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed December 17, 2013

31(a)

Section 302 Certification by David L. Duvall, President, Chief Executive Officer, and Director

Filed Herein

31(b)

Section 302 Certification by John P. Zimmer, Executive Vice President, Secretary, Treasurer, and Chief Financial Officer

Filed Herein

32(a)

Certification of David L. Duvall, Chief Executive Officer of Core Molding Technologies, Inc., dated November 7, 2023, pursuant to 18 U.S.C. Section 1350

Filed Herein

32(b)

Certification of John P. Zimmer, Executive Vice President, Secretary, Treasurer and Chief Financial Officer of Core Molding Technologies, Inc., dated November 7, 2023, pursuant to 18 U.S.C. Section 1350

Filed Herein

101.INS

XBRL Instance Document

Filed Herein

101.SCH

XBRL Taxonomy Extension Schema Document

Filed Herein

101.CAL

XBRL Taxonomy Extension Calculation Linkbase

Filed Herein

101.LAB

XBRL Taxonomy Extension Label Linkbase

Filed Herein

101.PRE

XBRL Taxonomy Extension Presentation Linkbase

Filed Herein

101.DEF

XBRL Taxonomy Extension Definition Linkbase

Filed Herein

104

Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

Filed Herein

Exhibit 31(a)

SECTION 302 CERTIFICATION

I, David L. Duvall, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Core Molding Technologies, Inc.;

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2023


			/s/ David L. Duvall
			David L. Duvall
			President, Chief Executive Officer, and Director

Exhibit 31(b)

SECTION 302 CERTIFICATION

I, John P. Zimmer, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Core Molding Technologies, Inc.;

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2023


			/s/ John P. Zimmer
			John P. Zimmer
			Vice President, Secretary, Treasurer and Chief Financial Officer

Exhibit 32(a)

CORE MOLDING TECHNOLOGIES, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Core Molding Technologies, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David L. Duvall, President, Chief Executive Officer, and Director of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


			/s/ David L. Duvall
			David L. Duvall
			President, Chief Executive Officer, and Director
			November 7, 2023

Exhibit 32(b)

CORE MOLDING TECHNOLOGIES, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Core Molding Technologies, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John P. Zimmer, Vice President, Secretary, Treasurer, and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


			/s/ John P. Zimmer
			John P. Zimmer
			Vice President, Secretary, Treasurer and Chief Financial Officer
			November 7, 2023

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Nov. 06, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-12505
Entity Registrant Name	CORE MOLDING TECHNOLOGIES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1481870
Entity Address, Address Line One	800 Manor Park Drive
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43228-0183
City Area Code	614
Local Phone Number	870-5000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01
Security Exchange Name	NYSEAMER
Trading Symbol	CMT
Entity Common Stock, Shares Outstanding (in shares)		9,040,704
Entity Central Index Key	0001026655
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

Consolidated Statements of Operations - 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	$ 86,728	$ 101,606	$ 283,961	$ 290,933
Cost of sales	71,450	88,303	230,380	250,015
Gross margin	15,278	13,303	53,581	40,918
Selling, general and administrative expense	9,403	8,671	29,562	25,889
Operating income	5,875	4,632	24,019	15,029
Other income and expense
Loss from extinguishment of debt	0	1,582	0	1,582
Interest expense, net	187	511	836	1,511
Net periodic post-retirement benefit	(52)	(31)	(157)	(93)
Total other expense	135	2,062	679	3,000
Income before taxes	5,740	2,570	23,340	12,029
Income tax expense	1,386	1,251	5,198	4,658
Net income	$ 4,354	$ 1,319	$ 18,142	$ 7,371
Net income per common share:
Basic (in USD per share)	$ 0.50	$ 0.16	$ 2.13	$ 0.87
Diluted (in USD per share)	$ 0.49	$ 0.16	$ 2.08	$ 0.87

Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net income	$ 4,354,000	$ 1,319,000	$ 18,142,000	$ 7,371,000
Post-retirement benefit plan adjustments:
Amortization of net actuarial loss	6,000	43,000	18,000	130,000
Amortization of prior service credits	(124,000)	(124,000)	(372,000)	(372,000)
Income tax benefit	25,000	17,000	75,000	51,000
Comprehensive income	3,720,000	1,389,000	18,311,000	7,314,000
Foreign currency hedging derivatives:
Other comprehensive income:
Unrealized hedge gain (loss)	(898,000)	(626,000)	208,000	(626,000)
Income tax benefit (expense)	192,000	159,000	(50,000)	159,000
Interest rate swaps:
Other comprehensive income:
Unrealized hedge gain (loss)	209,000	767,000	366,000	767,000
Income tax benefit (expense)	$ (44,000)	$ (166,000)	$ (76,000)	$ (166,000)

Consolidated Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 18,035,000	$ 4,183,000
Accounts receivable, net	45,938,000	44,261,000
Inventories, net	24,988,000	23,871,000
Foreign tax receivable	5,492,000	2,680,000
Prepaid expenses and other current assets	7,679,000	5,670,000
Total current assets	102,132,000	80,665,000
Right of use asset	4,261,000	5,114,000
Property, plant and equipment, net	81,788,000	83,267,000
Goodwill	17,376,000	17,376,000
Intangibles, net	6,414,000	7,619,000
Other non-current assets	4,686,000	4,574,000
Total Assets	216,657,000	198,615,000
Current liabilities:
Current portion of long-term debt	1,310,000	1,208,000
Revolving debt	0	1,864,000
Accounts payable	28,682,000	29,586,000
Taxes payable	2,557,000	1,236,000
Contract liability	1,146,000	1,395,000
Compensation and related benefits	10,523,000	9,101,000
Accrued other liabilities	8,652,000	6,407,000
Total current liabilities	52,870,000	50,797,000
Other non-current liabilities	2,998,000	3,516,000
Long-term debt	21,982,000	22,986,000
Post-retirement benefits liability	4,815,000	5,191,000
Total Liabilities	82,665,000	82,490,000
Commitments and Contingencies
Stockholders’ Equity:
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at September 30, 2023 and December 31, 2022		0
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares: 8,655,384 at September 30, 2023 and 8,417,656 at December 31, 2022	86,000	84,000
Paid-in capital	42,565,000	40,342,000
Accumulated other comprehensive income, net of income taxes	3,222,000	3,053,000
Treasury stock - at cost, 3,992,152 shares at September 30, 2023 and 3,866,451 shares at December 31, 2022	(31,768,000)	(29,099,000)
Retained earnings	119,887,000	101,745,000
Total Stockholders’ Equity	133,992,000	116,125,000
Total Liabilities and Stockholders’ Equity	$ 216,657,000	$ 198,615,000

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares outstanding (in shares)	8,655,384	8,417,656
Treasury stock (in shares)	3,992,152	3,866,451

Consolidated Statement of Stockholders' Equity - USD ($)	Total	Interest rate swaps:	Foreign currency hedging derivatives:	Common Stock Outstanding	Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income Interest rate swaps:	Treasury Stock, Common	Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2021				8,235,740
Beginning Balance at Dec. 31, 2021	$ 100,095,000			$ 82,000	$ 38,013,000	$ 1,075,000		$ (28,617,000)	$ 89,542,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,371,000								7,371,000
Change in post-retirement benefits, net of tax	(191,000)					(191,000)
Change in foreign currency hedge, net of tax	(467,000)					(467,000)
Change in interest rate swaps, net of tax							$ 639,000
Purchase of treasury stock	(482,000)							(482,000)
Restricted stock vested (in shares)				226,201
Restricted stock vested	2,000			$ 2,000
Share-based compensation	1,705,000				1,705,000
Ending Balance (in shares) at Sep. 30, 2022				8,413,655
Ending Balance at Sep. 30, 2022	108,672,000			$ 84,000	39,718,000	1,056,000		(29,099,000)	96,913,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income tax benefit (expense)		$ (166,000)	$ 159,000
Income tax benefit	51,000
Beginning Balance (in shares) at Jun. 30, 2022				8,413,655
Beginning Balance at Jun. 30, 2022	106,622,000			$ 84,000	39,095,000	948,000		(29,099,000)	95,594,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,319,000								1,319,000
Change in post-retirement benefits, net of tax	(64,000)					(64,000)
Change in foreign currency hedge, net of tax						(467,000)
Change in interest rate swaps, net of tax							639,000
Share-based compensation	623,000				623,000
Ending Balance (in shares) at Sep. 30, 2022				8,413,655
Ending Balance at Sep. 30, 2022	108,672,000			$ 84,000	39,718,000	1,056,000		(29,099,000)	96,913,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income tax benefit (expense)		(166,000)	159,000
Income tax benefit	$ 17,000
Beginning Balance (in shares) at Dec. 31, 2022	8,417,656			8,417,656
Beginning Balance at Dec. 31, 2022	$ 116,125,000			$ 84,000	40,342,000	3,053,000		(29,099,000)	101,745,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,142,000								18,142,000
Change in post-retirement benefits, net of tax	(279,000)					(279,000)
Change in foreign currency hedge, net of tax	$ 158,000					158,000
Change in interest rate swaps, net of tax							290,000
Purchase of treasury stock (in shares)	(48,286)			(125,701)
Purchase of treasury stock	$ (2,670,000)							(2,669,000)
Stock Issued During Period, Shares, Other				100,641
Stock Issued During Period, Value, Other	1,000			$ 1,000
Restricted stock vested (in shares)				262,788
Restricted stock vested	2,000			$ 2,000
Share-based compensation	$ 2,223,000				2,223,000
Ending Balance (in shares) at Sep. 30, 2023	8,655,384			8,655,384
Ending Balance at Sep. 30, 2023	$ 133,992,000			$ 86,000	42,565,000	3,222,000		(31,768,000)	119,887,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income tax benefit (expense)		(76,000)	(50,000)
Income tax benefit	75,000
Beginning Balance (in shares) at Jun. 30, 2023				8,603,072
Beginning Balance at Jun. 30, 2023	130,298,000			$ 86,000	41,829,000	3,856,000		(31,006,000)	115,533,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,354,000								4,354,000
Change in post-retirement benefits, net of tax	(93,000)					(93,000)
Change in foreign currency hedge, net of tax	(706,000)					(706,000)
Change in interest rate swaps, net of tax							$ 165,000
Purchase of treasury stock (in shares)				(29,804)
Purchase of treasury stock	(762,000)							(762,000)
Stock Issued During Period, Shares, Other				69,309
Stock Issued During Period, Value, Other	0
Restricted stock vested (in shares)				12,807
Restricted stock vested	0
Share-based compensation	$ 736,000				736,000
Ending Balance (in shares) at Sep. 30, 2023	8,655,384			8,655,384
Ending Balance at Sep. 30, 2023	$ 133,992,000			$ 86,000	$ 42,565,000	$ 3,222,000		$ (31,768,000)	$ 119,887,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income tax benefit (expense)		$ (44,000)	$ 192,000
Income tax benefit	$ 25,000

Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income tax benefit	$ 25,000	$ 17,000	$ 75,000	$ 51,000
Interest rate swaps:
Income tax benefit (expense)	44,000	166,000	76,000	166,000
Foreign currency hedging derivatives:
Income tax benefit (expense)	$ (192,000)	$ (159,000)	$ 50,000	$ (159,000)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net Income (Loss) Attributable to Parent	$ 18,142	$ 7,371
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,575	9,406
Loss on disposal of assets	80	0
Share-based compensation	2,223	1,705
Gain (Loss) On Extinguishment Of Debt, Excluding Amounts Prepaid	0	1,234
Losses on foreign currency remeasurement	202	178
Change in operating assets and liabilities:
Accounts receivable	(1,677)	(19,036)
Inventories	(1,117)	(1,725)
Prepaid and other assets	(4,474)	1,940
Accounts payable	(414)	10,355
Accrued and other liabilities	4,340	(2,773)
Post-retirement benefits liability	(731)	(166)
Net cash provided by operating activities	26,149	8,489
Cash flows from investing activities:
Purchase of property, plant and equipment	(6,803)	(12,284)
Net cash used in investing activities	(6,803)	(12,284)
Cash flows from financing activities:
Gross repayments on revolving line of credit	(38,962)	(120,357)
Gross borrowings on revolving line of credit	37,098	119,985
Payments for taxes related to net share settlement of equity awards	(2,669)	(482)
Payment of deferred loan costs	0	(402)
Proceeds from term loan	0	25,000
Payment of principal on term loans	(961)	(25,586)
Net cash used in financing activities	(5,494)	(1,842)
Net change in cash and cash equivalents	13,852	(5,637)
Cash and cash equivalents at beginning of period	4,183	6,146
Cash and cash equivalents at end of period	18,035	509
Cash paid for:
Interest	939	1,320
Income taxes	4,518	5,378
Non-cash investing activities:
Deposit used in payment of principal on term loans	0	1,200
Fixed asset purchases in accounts payable and other non-current liabilities	$ 848	$ 1,058

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	BASIS OF PRESENTATIONThe accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States of America for interim reporting, which are less than those required for annual reporting. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (all of which are normal and recurring in nature) necessary to present fairly the financial position of Core Molding Technologies, Inc. and its subsidiaries (“Core Molding Technologies” or the “Company”) at September 30, 2023, and the results of operations and cash flows for the nine months ended September 30, 2023. The Company has reclassified certain prior-year amounts to conform to the current year's presentation. The “Notes to Consolidated Financial Statements” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, should be read in conjunction with these consolidated financial statements.Core Molding Technologies and its subsidiaries operate in the engineered materials market as one operating segment as a molder of thermoplastic and thermoset structural products. The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, power sports, building products, industrial and utilities, and other commercial markets. Core Molding Technologies has its headquarters in Columbus, Ohio, and operates six production facilities in the United States, Canada and Mexico.

Critical Accounting Policies and Estimates	9 Months Ended
Critical Accounting Policies and Estimates	Sep. 30, 2023
Accounting Policies [Abstract]
Critical Accounting Policies and Estimates	CRITICAL ACCOUNTING POLICIES AND ESTIMATES Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. Revenue Recognition: The Company historically has recognized revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of sheet molding compounds and thermoset and thermoplastic products. Revenue from product sales is generally recognized when products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. In certain circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes control at our production facility. Tooling revenue is earned from manufacturing multiple tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over a given period. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools. Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Cash and Cash Equivalents: The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash is held primarily in three banks in three separate jurisdictions. The Company had $18,035,000 cash on hand at September 30, 2023 and had $4,183,000 cash on hand at December 31, 2022. Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that no allowance for doubtful accounts is needed at September 30, 2023 and December 31, 2022, respectively. Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $479,000 at September 30, 2023 and $502,000 at December 31, 2022. There have been no material changes in the methodology of these calculations. Inventories: Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $648,000 at September 30, 2023 and $433,000 at December 31, 2022. Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $1,594,000 at September 30, 2023, and $344,000 at December 31, 2022. Contract assets are classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the nine months ended September 30, 2023, the Company recognized no impairments on contract assets. For the nine months ended September 30, 2023, the Company recognized $2,942,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2022. Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more-likely-than-not to realize deferred tax benefits through the generation of future taxable income. Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates whether impairment exists for property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There were no impairment charges of the Company’s long-lived assets for the nine months ended September 30, 2023 and September 30, 2022, respectively. Goodwill: The purchase consideration of acquired businesses has been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment. The annual impairment tests of goodwill may be completed through qualitative assessments; however, the Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period. Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, and capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a quantitative approach. There were no impairment charges of the Company's goodwill for the nine months ended September 30, 2023 and September 30, 2022, respectively. Self-Insurance: The Company is self-insured with respect to its facilities in Columbus, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at September 30, 2023 and December 31, 2022 of $966,000 and $889,000, respectively. Post-Retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Core Molding Technologies had a liability for post-retirement healthcare benefits based on actuarial computed estimates of $6,249,000 at September 30, 2023 and $6,625,000 at December 31, 2022.

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTSCurrent Expected Credit Loss (CECL)In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace the previous “incurred loss” model and generally will result in the earlier recognition of allowances for losses. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under the U.S. Securities and Exchange Commission rules, until fiscal years beginning after December 15, 2022.

Net Income Per Common Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Net Income Per Common Share

NET INCOME PER COMMON SHARE

The computation of basic and diluted net income per common share (in thousands, except for per share data) is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Net income	$	4,354	$	1,319	$	18,142	$	7,371
Less: net income allocated to participating securities	—		13		—		122
Net income available to common shareholders	$	4,354	$	1,306	$	18,142	$	7,249

Weighted average common shares outstanding — basic	8,623		8,414		8,515		8,337
Effect of weighted average dilutive securities	219		4		201		1
Weighted average common and potentially issuable common shares outstanding — diluted	8,842		8,418		8,716		8,338

Basic net income per common share	$	0.50	$	0.16	$	2.13	$	0.87
Diluted net income per common share	$	0.49	$	0.16	$	2.08	$	0.87

Major Customers

9 Months Ended

Sep. 30, 2023

Concentration Risks, Types, No Concentration Percentage [Abstract]

Major Customers

MAJOR CUSTOMERS

The following table presents sales revenue for the above-mentioned customers for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
BRP product sales	$	9,169	$	12,203	$	33,770	$	38,908
BRP tooling sales	3,502		1,119		4,240		1,456
Total BRP sales	12,671		13,322		38,010		40,364

Navistar product sales	18,612		16,536		55,625		44,667
Navistar tooling sales	426		285		612		2,555
Total Navistar sales	19,038		16,821		56,237		47,222

PACCAR product sales	9,238		10,066		28,160		27,971
PACCAR tooling sales	59		—		789		185
Total PACCAR sales	9,297		10,066		28,949		28,156

UFP product sales	4,000		5,099		23,931		29,642
UFP tooling sales	—		—		—		—
Total UFP sales	4,000		5,099		23,931		29,642

Volvo product sales	13,102		15,468		44,073		38,268
Volvo tooling sales	—		128		799		215
Total Volvo sales	13,102		15,596		44,872		38,483

Other product sales	26,775		32,968		89,374		96,102
Other tooling sales	1,845		7,734		2,588		10,964
Total other sales	28,620		40,702		91,962		107,066

Total product sales	80,896		92,340		274,933		275,558
Total tooling sales	5,832		9,266		9,028		15,375
Total sales	$	86,728	$	101,606	$	283,961	$	290,933

Inventory

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Inventory

INVENTORY

Inventories, net consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Raw materials	$	15,888	$	16,523
Work in process	2,217		2,929
Finished goods	6,883		4,419
Total	$	24,988	$	23,871

Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage.

Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

LEASES

The components of lease expense were as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Operating lease cost	$	497	$	419	$	1,360	$	1,265
Short-term lease cost	474		389		1,440		1,097
Total net lease cost	$	971	$	808	$	2,800	$	2,362

Other supplemental balance sheet information related to leases was as follows (in thousands):


	September 30, 2023		December 31, 2022
Operating lease right of use assets	$	4,261	$	5,114

Current operating lease liabilities(A)	$	1,938	$	1,626
Noncurrent operating lease liabilities(B)	2,318		3,516
Total operating lease liabilities	$	4,256	$	5,142

(A)Current operating lease liabilities are included in accrued other liabilities in the Consolidated Balance Sheets.

(B)Noncurrent operating lease liabilities are included in other non-current liabilities in the Consolidated Balance Sheets.

The following table presents certain information related to lease terms and discount rates for leases:


Operating leases	September 30, 2023		December 31, 2022
Weighted average remaining lease term (in years):	2.6		3.6

Weighted average discount rate:	5.5	%	4.1	%

Maturities of operating lease liabilities were as follows (in thousands):


	September 30, 2023		December 31, 2022
2023 (remainder of year)	$	529	$	1,716
2024	2,127		1,722
2025	1,121		1,065
2026	594		979
2027	189		189
Total lease payments	4,560		5,671
Less: imputed interest	(304)		(529)
Total lease obligations	4,256		5,142
Less: current obligations	(1,938)		(1,626)
Long-term lease obligations	$	2,318	$	3,516

Property, Plant & Equipment

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Property, Plant & Equipment

PROPERTY, PLANT & EQUIPMENT

Property, plant and equipment, net consisted of the following for the periods specified (in thousands):


	September 30, 2023		December 31, 2022
Property, plant and equipment	$	207,437	$	200,525
Accumulated depreciation	(125,649)		(117,258)
Property, plant and equipment — net	$	81,788	$	83,267

Goodwill and Intangibles

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

GOODWILL AND INTANGIBLES

Goodwill activity for the nine months ended September 30, 2023 consisted of the following (in thousands):


Balance at December 31, 2022	$	17,376
Additions	—
Impairment	—
Balance at September 30, 2023	$	17,376

Intangibles, net at September 30, 2023 were comprised of the following (in thousands):


Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(85)	$	165
Trademarks	10 Years	1,610		(919)		691
Non-competition agreement	5 Years	1,810		(1,810)		—
Developed technology	7 Years	4,420		(3,604)		816
Customer relationships	10-12 Years	9,330		(4,588)		4,742
Total		$	17,420	$	(11,006)	$	6,414

Intangibles, net at December 31, 2022 were comprised of the following (in thousands):


Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(78)	$	172
Trademarks	10 Years	1,610		(798)		812
Non-competition agreement	5 Years	1,810		(1,795)		15
Developed technology	7 Years	4,420		(3,131)		1,289
Customer relationships	10-12 Years	9,330		(3,999)		5,331
Total		$	17,420	$	(9,801)	$	7,619

The aggregate intangible asset amortization expense was $396,000 and $487,000 for the three months ended September 30, 2023 and 2022, respectively

Post Retirement Benefits

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Post Retirement Benefits

POST-RETIREMENT BENEFITS

The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Pension expense:
Multi-employer plan	$	221	$	221	$	734	$	682
Defined contribution plan	471		371		1,440		1,122
Total pension expense	692		592		2,174		1,804
Health and life insurance:
Interest cost	66		50		197		149
Amortization of prior service credits	(124)		(124)		(372)		(372)
Amortization of net actuarial loss	6		43		18		130
Net periodic benefit credit	(52)		(31)		(157)		(93)
Total post-retirement benefits expense	$	640	$	561	$	2,017	$	1,711

Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

DEBT

Debt consists of the following (in thousands):


	September 30, 2023		December 31, 2022



Huntington term loans payable	$	23,542	$	24,479
Leaf Capital term loan payable	61		85
Total	23,603		24,564
Less deferred loan costs	(311)		(370)
Less current portion	(1,310)		(1,208)
Long-term debt	$	21,982	$	22,986

Stock Based Compensation

3 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Stock Based Compensation

STOCK BASED COMPENSATION

Awards under the 2021 Plan vest over one to three years, or vest upon the date of a participant’s death, disability or change in control. No shares are outstanding under the 2006 Plan.

Restricted Stock

The following summarizes the status of Restricted Stock and changes during the nine months ended September 30, 2023:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2022	502,747	$	10.46
Granted	179,580	15.98
Vested	(262,788)	9.66
Forfeited	(45,956)	12.46
Unvested balance at September 30, 2023	373,583	$	13.33

Performance Restricted Stock Awards

The following summarizes the status of Performance Restricted Stock Awards and changes during the nine months ended September 30, 2023:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2022	—	$	—
Granted	13,350	15.98
Vested	—	—
Forfeited	(1,613)	15.98
Unvested balance at September 30, 2023	11,737	$	15.98

Stock Appreciation Rights

A summary of the Company's stock appreciation rights activity for the nine months ended September 30, 2023 is as follows:


	Number of Shares	Weighted Average Exercise Price
Outstanding as of December 31, 2022	177,016	$	10.00
Granted	—	—
Exercised	(177,016)	10.00
Forfeited	—	—
Outstanding at end of the period ended September 30, 2023	—	—
Exercisable at end of the period ended September 30, 2023	—	—

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS

The three levels are defined as follows:

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 3 -Significant unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability.

Derivative and hedging activities

Foreign Currency Derivatives

Interest Rate Swap

Financial statement impacts

The following table detail amounts related to our derivatives designated as hedging instruments (in thousands):


	Fair Value of Derivative Instruments September 30, 2023
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Prepaid expenses other current assets	$	190	Accrued other liabilities	$	67
	Other non-current assets	$	—	Other non-current liabilities	$	—


Interest rate swaps	Prepaid expenses other current assets	$	536	Accrued other liabilities	$	—
	Other non-current assets	$	595	Other non-current liabilities	$	—


	Fair Value of Derivative Instruments December 31, 2022
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Prepaid expenses other current assets	$	72	Accrued other liabilities	$	157
	Other non-current assets	$	—	Other non-current liabilities	$	—


Interest rate swaps	Prepaid expenses other current assets	$	280	Accrued other liabilities	$	—
	Other non-current assets	$	485	Other non-current liabilities	$	—


Derivatives in subtopic 815-20 Cash Flow Hedging Relationship:	Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income(A)	Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
	2023		2022			2023		2022
Foreign exchange contracts	$	88	$	(626)	Cost of goods sold	$	897	$	—
					Selling, general and administrative expense	$	89	$	—
Interest rate swaps	$	334	$	767	Interest expense	$	125	$	(38)

The following tables summarize the amount of unrealized and realized gain (loss) recognized in AOCI for the nine months ended September 30, 2023 and 2022 (in thousands):


Derivatives in subtopic 815-20 Cash Flow Hedging Relationship:	Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income(A)	Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
	2023		2022			2023		2022
Foreign exchange contracts	$	2,073	$	(626)	Cost of goods sold	$	1,697	$	—
					Selling, general and administrative expense	$	168	$	—
Interest rate swaps	$	707	$	767	Interest expense	$	341	$	(38)

Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2023

Text Block [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents changes in AOCI, net of tax, for the nine months ended September 30, 2023 and 2022 (in thousands):


2022:	Derivative Hedging Activities		Post Retirement Benefit Plan Items(A)		Accumulated Other Comprehensive Income (Loss)
2022:
Balance at December 31, 2021	$	—	$	1,075	$	1,075
Other comprehensive income before reclassifications	141		—		141
Amounts reclassified from accumulated other comprehensive income	38		(242)		(204)
Income tax benefit (expense)	(7)		51		44
Balance at September 30, 2022	$	172	$	884	$	1,056

2023:
Balance at December 31, 2022	$	546	$	2,507	$	3,053
Other comprehensive income before reclassifications	2,780		—		2,780
Amounts reclassified from accumulated other comprehensive income	(2,206)		(354)		(2,560)
Income tax benefit (expense)	(126)		75		(51)
Balance at September 30, 2023	$	994	$	2,228	$	3,222

Critical Accounting Policies and Estimates (Policies)	9 Months Ended
Critical Accounting Policies and Estimates (Policies)	Sep. 30, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation: Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements.
Use of Estimates	Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions.
Revenue Recognition	Revenue Recognition: The Company historically has recognized revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of sheet molding compounds and thermoset and thermoplastic products. Revenue from product sales is generally recognized when products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. In certain circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes control at our production facility. Tooling revenue is earned from manufacturing multiple tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over a given period. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools. Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to-cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Cash and Cash Equivalents: The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash is held primarily in three banks in three separate jurisdictions. The Company had $18,035,000 cash on hand at September 30, 2023 and had $4,183,000 cash on hand at December 31, 2022.
Accounts Receivable Allowances	Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that no allowance for doubtful accounts is needed at September 30, 2023 and December 31, 2022, respectively. Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $479,000 at September 30, 2023 and $502,000 at December 31, 2022. There have been no material changes in the methodology of these calculations.
Inventories	Inventories: Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $648,000 at September 30, 2023 and $433,000 at December 31, 2022.
Contract Assets/Liabilities	Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $1,594,000 at September 30, 2023, and $344,000 at December 31, 2022. Contract assets are classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the nine months ended September 30, 2023, the Company recognized no impairments on contract assets. For the nine months ended September 30, 2023, the Company recognized $2,942,000 of revenue from contract liabilities related to open jobs outstanding as of December 31, 2022.
Income Taxes	Income Taxes: The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more-likely-than-not to realize deferred tax benefits through the generation of future taxable income.
Long-Lived Assets	Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-lived intangibles. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates whether impairment exists for property, plant and equipment on the basis of undiscounted expected future cash flows from operations before interest. There were no impairment charges of the Company’s long-lived assets for the nine months ended September 30, 2023 and September 30, 2022, respectively.
Goodwill	Goodwill: The purchase consideration of acquired businesses has been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment. The annual impairment tests of goodwill may be completed through qualitative assessments; however, the Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any period. The Company may resume the qualitative assessment in any subsequent period. Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company. Such events and circumstances could include changes in economic conditions, industry and market conditions, cost factors, overall financial performance, and capital markets pricing. The Company places more weight on the events and circumstances that most affect the Company's fair value or carrying amount. These factors are all considered by management in reaching its conclusion about whether to perform step one of the impairment test. If the Company elects to bypass the qualitative assessment, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value exceeds its fair value, the Company proceeds to a quantitative approach. There were no impairment charges of the Company's goodwill for the nine months ended September 30, 2023 and September 30, 2022, respectively.
Self-Insurance	Self-Insurance: The Company is self-insured with respect to its facilities in Columbus, Ohio; Gaffney, South Carolina; Winona, Minnesota; and Brownsville, Texas for medical, dental and vision claims and Columbus, Ohio for workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self-insured for dental and vision with respect to its Cobourg, Canada location. The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at September 30, 2023 and December 31, 2022 of $966,000 and $889,000, respectively.
Post-retirement Benefits	Post-Retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 12, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Core Molding Technologies had a liability for post-retirement healthcare benefits based on actuarial computed estimates of $6,249,000 at September 30, 2023 and $6,625,000 at December 31, 2022.
New Accounting Pronouncements, Policy	Current Expected Credit Loss (CECL)In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace the previous “incurred loss” model and generally will result in the earlier recognition of allowances for losses. Subsequent to issuing ASU 2016-13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016-13. ASU 2018-19 has the same effective date and transition requirements as ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under the U.S. Securities and Exchange Commission rules, until fiscal years beginning after December 15, 2022.
Fair Value Measurement	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This hierarchical valuation methodology provides a fair value framework that describes the categorization of assets and liabilities in three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1 - Quoted prices in active markets for identical assets and liabilities. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets. Level 3 -Significant unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, debt, interest rate swaps and foreign currency derivatives. Cash and cash equivalents, accounts receivable and accounts payable carrying values as of September 30, 2023 and December 31, 2022 approximate fair value due to the short-term maturities of these financial instruments. As of September 30, 2023 and December 31, 2022, the carrying amounts of the Huntington Term Loan and Huntington Revolving Loan approximated fair value due to the short-term nature of the underlying variable rate SOFR agreements. The Company had Level 2 fair value measurements at September 30, 2023 relating to the Company’s interest rate swaps and foreign currency derivatives. Derivative and hedging activities Derivatives are formally assessed both at inception and at least quarterly thereafter, to ensure that derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, hedge accounting is discontinued, and any future mark-to-market adjustments are recognized in earnings. The effective portion of gain or loss is reported in other comprehensive income and the ineffective portion is reported in earnings. The impacts of these contracts were largely offset by gains and losses resulting from the impact of changes in exchange rates on transactions denominated in the foreign currency. As of September 30, 2023, the Company had no ineffective portion related to the cash flow hedges. Foreign Currency Derivatives The Company conducted business in foreign countries and paid certain expenses in foreign currencies; therefore, the Company was exposed to foreign currency exchange risk between the U.S. Dollar and foreign currencies, which could impact the Company’s operating income and cash flows. To mitigate risk associated with foreign currency exchange, the Company entered into forward contracts to exchange a fixed amount of U.S. Dollars for a fixed amount of foreign currency, which will be used to fund future foreign currency cash flows. At inception, all forward contracts are formally documented as cash flow hedges and are measured at fair value each reporting period. The notional contract value of foreign currency derivatives was $20,222,000 and $13,851,000 as of September 30, 2023 and December 31, 2022, respectively.

Net Income Per Common Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Computation of basic and diluted net income per common share:

The computation of basic and diluted net income per common share (in thousands, except for per share data) is as follows:


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Net income	$	4,354	$	1,319	$	18,142	$	7,371
Less: net income allocated to participating securities	—		13		—		122
Net income available to common shareholders	$	4,354	$	1,306	$	18,142	$	7,249

Weighted average common shares outstanding — basic	8,623		8,414		8,515		8,337
Effect of weighted average dilutive securities	219		4		201		1
Weighted average common and potentially issuable common shares outstanding — diluted	8,842		8,418		8,716		8,338

Basic net income per common share	$	0.50	$	0.16	$	2.13	$	0.87
Diluted net income per common share	$	0.49	$	0.16	$	2.08	$	0.87

The computation of basic and diluted net income per participating share for the three and nine months ended September 30, 2022 is as follows (in thousands, except for per share data):


	Three months ended September 30,			Nine months ended September 30,
		2022			2022
Net income allocated to participating securities		$	13		$	122

Weighted average participating shares outstanding — basic		82			140
Effect of dilutive securities		—			—
Weighted average common and potentially issuable common shares outstanding — diluted		82			140

Basic net income per participating share		$	0.16		$	0.87
Diluted net income per participating share		$	0.16		$	0.87

Major Customers (Tables)

9 Months Ended

Sep. 30, 2023

Concentration Risks, Types, No Concentration Percentage [Abstract]

Schedule of Major Customers

The following table presents sales revenue for the above-mentioned customers for the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
BRP product sales	$	9,169	$	12,203	$	33,770	$	38,908
BRP tooling sales	3,502		1,119		4,240		1,456
Total BRP sales	12,671		13,322		38,010		40,364

Navistar product sales	18,612		16,536		55,625		44,667
Navistar tooling sales	426		285		612		2,555
Total Navistar sales	19,038		16,821		56,237		47,222

PACCAR product sales	9,238		10,066		28,160		27,971
PACCAR tooling sales	59		—		789		185
Total PACCAR sales	9,297		10,066		28,949		28,156

UFP product sales	4,000		5,099		23,931		29,642
UFP tooling sales	—		—		—		—
Total UFP sales	4,000		5,099		23,931		29,642

Volvo product sales	13,102		15,468		44,073		38,268
Volvo tooling sales	—		128		799		215
Total Volvo sales	13,102		15,596		44,872		38,483

Other product sales	26,775		32,968		89,374		96,102
Other tooling sales	1,845		7,734		2,588		10,964
Total other sales	28,620		40,702		91,962		107,066

Total product sales	80,896		92,340		274,933		275,558
Total tooling sales	5,832		9,266		9,028		15,375
Total sales	$	86,728	$	101,606	$	283,961	$	290,933

Inventory (Tables)

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories, net consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Raw materials	$	15,888	$	16,523
Work in process	2,217		2,929
Finished goods	6,883		4,419
Total	$	24,988	$	23,871

Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Components of lease expense

The components of lease expense were as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Operating lease cost	$	497	$	419	$	1,360	$	1,265
Short-term lease cost	474		389		1,440		1,097
Total net lease cost	$	971	$	808	$	2,800	$	2,362

Supplemental Balance Sheet Information

Other supplemental balance sheet information related to leases was as follows (in thousands):


	September 30, 2023		December 31, 2022
Operating lease right of use assets	$	4,261	$	5,114

Current operating lease liabilities(A)	$	1,938	$	1,626
Noncurrent operating lease liabilities(B)	2,318		3,516
Total operating lease liabilities	$	4,256	$	5,142

(A)Current operating lease liabilities are included in accrued other liabilities in the Consolidated Balance Sheets.

(B)Noncurrent operating lease liabilities are included in other non-current liabilities in the Consolidated Balance Sheets.

The following table presents certain information related to lease terms and discount rates for leases:


Operating leases	September 30, 2023		December 31, 2022
Weighted average remaining lease term (in years):	2.6		3.6

Weighted average discount rate:	5.5	%	4.1	%

Maturities of lease liabilities

Maturities of operating lease liabilities were as follows (in thousands):


	September 30, 2023		December 31, 2022
2023 (remainder of year)	$	529	$	1,716
2024	2,127		1,722
2025	1,121		1,065
2026	594		979
2027	189		189
Total lease payments	4,560		5,671
Less: imputed interest	(304)		(529)
Total lease obligations	4,256		5,142
Less: current obligations	(1,938)		(1,626)
Long-term lease obligations	$	2,318	$	3,516

Property, Plant & Equipment (Tables)

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment, net consisted of the following for the periods specified (in thousands):


	September 30, 2023		December 31, 2022
Property, plant and equipment	$	207,437	$	200,525
Accumulated depreciation	(125,649)		(117,258)
Property, plant and equipment — net	$	81,788	$	83,267

Goodwill and Intangibles (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill activity

Goodwill activity for the nine months ended September 30, 2023 consisted of the following (in thousands):


Balance at December 31, 2022	$	17,376
Additions	—
Impairment	—
Balance at September 30, 2023	$	17,376

Schedule of Intangible assets

Intangibles, net at September 30, 2023 were comprised of the following (in thousands):


Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(85)	$	165
Trademarks	10 Years	1,610		(919)		691
Non-competition agreement	5 Years	1,810		(1,810)		—
Developed technology	7 Years	4,420		(3,604)		816
Customer relationships	10-12 Years	9,330		(4,588)		4,742
Total		$	17,420	$	(11,006)	$	6,414

Intangibles, net at December 31, 2022 were comprised of the following (in thousands):


Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade name	25 Years	$	250	$	(78)	$	172
Trademarks	10 Years	1,610		(798)		812
Non-competition agreement	5 Years	1,810		(1,795)		15
Developed technology	7 Years	4,420		(3,131)		1,289
Customer relationships	10-12 Years	9,330		(3,999)		5,331
Total		$	17,420	$	(9,801)	$	7,619

Post Retirement Benefits (Tables)

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Schedule of Post Retirement Benefit Plans

The components of expense for the Company’s post-retirement benefit plans are as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Pension expense:
Multi-employer plan	$	221	$	221	$	734	$	682
Defined contribution plan	471		371		1,440		1,122
Total pension expense	692		592		2,174		1,804
Health and life insurance:
Interest cost	66		50		197		149
Amortization of prior service credits	(124)		(124)		(372)		(372)
Amortization of net actuarial loss	6		43		18		130
Net periodic benefit credit	(52)		(31)		(157)		(93)
Total post-retirement benefits expense	$	640	$	561	$	2,017	$	1,711

Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule Of Long-term debt

Debt consists of the following (in thousands):


	September 30, 2023		December 31, 2022



Huntington term loans payable	$	23,542	$	24,479
Leaf Capital term loan payable	61		85
Total	23,603		24,564
Less deferred loan costs	(311)		(370)
Less current portion	(1,310)		(1,208)
Long-term debt	$	21,982	$	22,986

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

The status of Restricted Stock and changes

The following summarizes the status of Restricted Stock and changes during the nine months ended September 30, 2023:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2022	502,747	$	10.46
Granted	179,580	15.98
Vested	(262,788)	9.66
Forfeited	(45,956)	12.46
Unvested balance at September 30, 2023	373,583	$	13.33

Schedule of stock appreciation rights activity

A summary of the Company's stock appreciation rights activity for the nine months ended September 30, 2023 is as follows:


	Number of Shares	Weighted Average Exercise Price
Outstanding as of December 31, 2022	177,016	$	10.00
Granted	—	—
Exercised	(177,016)	10.00
Forfeited	—	—
Outstanding at end of the period ended September 30, 2023	—	—
Exercisable at end of the period ended September 30, 2023	—	—

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Derivative Assets at Fair Value

The following table detail amounts related to our derivatives designated as hedging instruments (in thousands):


	Fair Value of Derivative Instruments September 30, 2023
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Prepaid expenses other current assets	$	190	Accrued other liabilities	$	67
	Other non-current assets	$	—	Other non-current liabilities	$	—


Interest rate swaps	Prepaid expenses other current assets	$	536	Accrued other liabilities	$	—
	Other non-current assets	$	595	Other non-current liabilities	$	—

Schedule of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income (Loss)


Derivatives in subtopic 815-20 Cash Flow Hedging Relationship:	Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income(A)	Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
	2023		2022			2023		2022
Foreign exchange contracts	$	88	$	(626)	Cost of goods sold	$	897	$	—
					Selling, general and administrative expense	$	89	$	—
Interest rate swaps	$	334	$	767	Interest expense	$	125	$	(38)

The following tables summarize the amount of unrealized and realized gain (loss) recognized in AOCI for the nine months ended September 30, 2023 and 2022 (in thousands):


Derivatives in subtopic 815-20 Cash Flow Hedging Relationship:	Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative				Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income(A)	Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income
	2023		2022			2023		2022
Foreign exchange contracts	$	2,073	$	(626)	Cost of goods sold	$	1,697	$	—
					Selling, general and administrative expense	$	168	$	—
Interest rate swaps	$	707	$	767	Interest expense	$	341	$	(38)

Comprehensive Text Block List (Tables)

9 Months Ended

Sep. 30, 2023

Text Block [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents changes in AOCI, net of tax, for the nine months ended September 30, 2023 and 2022 (in thousands):


2022:	Derivative Hedging Activities		Post Retirement Benefit Plan Items(A)		Accumulated Other Comprehensive Income (Loss)
2022:
Balance at December 31, 2021	$	—	$	1,075	$	1,075
Other comprehensive income before reclassifications	141		—		141
Amounts reclassified from accumulated other comprehensive income	38		(242)		(204)
Income tax benefit (expense)	(7)		51		44
Balance at September 30, 2022	$	172	$	884	$	1,056

2023:
Balance at December 31, 2022	$	546	$	2,507	$	3,053
Other comprehensive income before reclassifications	2,780		—		2,780
Amounts reclassified from accumulated other comprehensive income	(2,206)		(354)		(2,560)
Income tax benefit (expense)	(126)		75		(51)
Balance at September 30, 2023	$	994	$	2,228	$	3,222

Critical Accounting Policies and Estimates (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Allowance for doubtful accounts		$ 0
Accounts receivable for chargebacks	$ 479,000	502,000
Allowance for slow moving and obsolete inventory	648,000	433,000
Amount of revenue from contract liabilities related to open jobs outstanding	2,942,000
Estimated liability for compensation claims	966,000	889,000
Liability for post retirement healthcare benefits	6,249,000	6,625,000
Contract with Customer, Asset, after Allowance for Credit Loss, Current	1,594,000	344,000
Cash and cash equivalents	$ 18,035,000	$ 4,183,000

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Income (Loss) Available to Common Stockholders
Net Income (Loss) Attributable to Parent	$ 4,354	$ 1,319	$ 18,142	$ 7,371
Less: net income allocated to participating securities	0	13	0	122
Net income available to common shareholders	$ 4,354	$ 1,306	$ 18,142	$ 7,249
Weighted average common shares outstanding - basic (in shares)	8,623,000	8,414,000	8,515,000	8,337,000
Effect of dilutive securities (in shares)	219,000	4,000	201,000	1,000
Weighted average common and potentially issuable common shares outstanding - diluted (in shares)	8,842,000	8,418,000	8,716,000	8,338,000
Basic net income per share (in dollars per share)	$ 0.50	$ 0.16	$ 2.13	$ 0.87
Diluted net income per share (in dollars per share)	$ 0.49	$ 0.16	$ 2.08	$ 0.87
Participating Securities
Net Income (Loss) Available to Common Stockholders
Less: net income allocated to participating securities		$ 13		$ 122
Weighted average common shares outstanding - basic (in shares)		82,000		140,000
Effect of dilutive securities (in shares)		0		0
Weighted average common and potentially issuable common shares outstanding - diluted (in shares)		82,000		140,000
Basic net income per share (in dollars per share)		$ 0.16		$ 0.87
Diluted net income per share (in dollars per share)		$ 0.16		$ 0.87

Major Customers (Details) $ in Thousands	3 Months Ended		9 Months Ended
Major Customers (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) customer	Sep. 30, 2022 USD ($)
Revenue, Major Customer [Line Items]
Number of major customers \| customer			5
Net sales	$ 86,728	$ 101,606	$ 283,961	$ 290,933
Product
Revenue, Major Customer [Line Items]
Net sales	80,896	92,340	274,933	275,558
Tooling
Revenue, Major Customer [Line Items]
Net sales	5,832	9,266	9,028	15,375
UFP
Revenue, Major Customer [Line Items]
Net sales	4,000	5,099	23,931	29,642
UFP \| Product
Revenue, Major Customer [Line Items]
Net sales	4,000	5,099	23,931	29,642
UFP \| Tooling
Revenue, Major Customer [Line Items]
Net sales	0	0	0	0
Navistar
Revenue, Major Customer [Line Items]
Net sales	19,038	16,821	56,237	47,222
Navistar \| Product
Revenue, Major Customer [Line Items]
Net sales	18,612	16,536	55,625	44,667
Navistar \| Tooling
Revenue, Major Customer [Line Items]
Net sales	426	285	612	2,555
Volvo
Revenue, Major Customer [Line Items]
Net sales	13,102	15,596	44,872	38,483
Volvo \| Product
Revenue, Major Customer [Line Items]
Net sales	13,102	15,468	44,073	38,268
Volvo \| Tooling
Revenue, Major Customer [Line Items]
Net sales	0	128	799	215
PACCAR
Revenue, Major Customer [Line Items]
Net sales	9,297	10,066	28,949	28,156
PACCAR \| Product
Revenue, Major Customer [Line Items]
Net sales	9,238	10,066	28,160	27,971
PACCAR \| Tooling
Revenue, Major Customer [Line Items]
Net sales	59	0	789	185
BRP
Revenue, Major Customer [Line Items]
Net sales	12,671	13,322	38,010	40,364
BRP \| Product
Revenue, Major Customer [Line Items]
Net sales	9,169	12,203	33,770	38,908
BRP \| Tooling
Revenue, Major Customer [Line Items]
Net sales	3,502	1,119	4,240	1,456
Other Customers
Revenue, Major Customer [Line Items]
Net sales	28,620	40,702	91,962	107,066
Other Customers \| Product
Revenue, Major Customer [Line Items]
Net sales	26,775	32,968	89,374	96,102
Other Customers \| Tooling
Revenue, Major Customer [Line Items]
Net sales	$ 1,845	$ 7,734	$ 2,588	$ 10,964

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 15,888	$ 16,523
Work in process	2,217	2,929
Finished goods	6,883	4,419
Total	$ 24,988	$ 23,871

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Options to extend the lease, period			5 years
Weighted average discount rate, Operating leases	5.50%		5.50%		4.10%
Weighted average remaining lease term, Operating leases	2 years 7 months 6 days		2 years 7 months 6 days		3 years 7 months 6 days
Lease, Cost [Abstract]
Operating lease cost	$ 497	$ 419	$ 1,360	$ 1,265
Short-Term Lease, Cost	474	$ 389	1,440	1,097
Assets and Liabilities, Lessee [Abstract]
Operating lease right of use assets	4,261		4,261		$ 5,114
Current operating lease liabilities	$ 1,938		$ 1,938		$ 1,626
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Accrued Liabilities, Current		Other Accrued Liabilities, Current		Other Accrued Liabilities, Current
Noncurrent operating lease liabilities	$ 2,318		$ 2,318		$ 3,516
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other non-current liabilities		Other non-current liabilities		Other non-current liabilities
Total operating lease liabilities	$ 4,256		$ 4,256		$ 5,142
Weighted average remaining lease term, Operating leases	2 years 7 months 6 days		2 years 7 months 6 days		3 years 7 months 6 days
Weighted average discount rate, Operating leases	5.50%		5.50%		4.10%
Cash Flow, Operating Activities, Lessee [Abstract]
Operating cash flows from operating leases			$ 1,590	$ 1,265
Lessee, Operating Lease, Description [Abstract]
Operating leases to be paid in remainder of fiscal year	$ 529		529
Operating leases to be paid in year one	2,127		2,127		$ 1,716
Operating leases to be paid in year two	1,121		1,121		1,722
Operating leases to be paid in year three	594		594		1,065
Operating leases to be paid in year four	189		189		979
Operating leases to be paid in year five					189
Total lease payments	4,560		4,560		5,671
Less: imputed interest	(304)		(304)		(529)
Total operating lease liabilities	4,256		4,256		5,142
Less: current obligations	1,938		1,938		1,626
Long-term lease obligations	$ 2,318		$ 2,318		$ 3,516
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year		1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	4 years		4 years

Property, Plant & Equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
Property, Plant & Equipment (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property, plant and equipment	$ 207,437,000		$ 207,437,000		$ 200,525,000
Accumulated depreciation	(125,649,000)		(125,649,000)		(117,258,000)
Property, plant and equipment — net	81,788,000		81,788,000		83,267,000
Depreciation expense	2,812,000	$ 2,683,000	8,311,000	$ 7,685,000
Capital additions in progress	$ 4,285,000		4,285,000		$ 7,396,000
Purchase commitments for capital expenditures in progress			$ 2,000,000	$ 2,812,000

Goodwill and Intangibles - Goodwill activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 17,376
Additions	0
Impairment	0
Ending balance	$ 17,376

Goodwill and Intangibles - Definite-lived Intangible assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 17,420,000		$ 17,420,000		$ 17,420,000
Accumulated Amortization	(11,006,000)		(11,006,000)		(9,801,000)
Net Carrying Amount	6,414,000		6,414,000		$ 7,619,000
Intangible asset amortization expense	$ 396,000	$ 487,000	$ 1,205,000	$ 1,461,000
Trade name
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	25 years		25 years		25 years
Gross Carrying Amount	$ 250,000		$ 250,000		$ 250,000
Accumulated Amortization	(85,000)		(85,000)		(78,000)
Net Carrying Amount	$ 165,000		$ 165,000		$ 172,000
Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	10 years		10 years		10 years
Gross Carrying Amount	$ 1,610,000		$ 1,610,000		$ 1,610,000
Accumulated Amortization	(919,000)		(919,000)		(798,000)
Net Carrying Amount	$ 691,000		$ 691,000		$ 812,000
Non-competition agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	5 years		5 years		5 years
Gross Carrying Amount	$ 1,810,000		$ 1,810,000		$ 1,810,000
Accumulated Amortization	(1,810,000)		(1,810,000)		(1,795,000)
Net Carrying Amount	$ 0		$ 0		$ 15,000
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	7 years		7 years		7 years
Gross Carrying Amount	$ 4,420,000		$ 4,420,000		$ 4,420,000
Accumulated Amortization	(3,604,000)		(3,604,000)		(3,131,000)
Net Carrying Amount	816,000		816,000		1,289,000
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9,330,000		9,330,000		9,330,000
Accumulated Amortization	(4,588,000)		(4,588,000)		(3,999,000)
Net Carrying Amount	$ 4,742,000		$ 4,742,000		$ 5,331,000
Customer relationships \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	10 years		10 years		10 years
Customer relationships \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period	12 years		12 years		12 years

Post Retirement Benefits (Details) - USD ($)	3 Months Ended		9 Months Ended
Post Retirement Benefits (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pension, health and life insurance expense:
Multi-employer plan	$ 221,000	$ 221,000	$ 734,000	$ 682,000
Defined contribution plan	471,000	371,000	1,440,000	1,122,000
Total pension expense	692,000	592,000	2,174,000	1,804,000
Interest cost	66,000	50,000	197,000	149,000
Amortization of prior service credits	(124,000)	(124,000)	(372,000)	(372,000)
Amortization of net actuarial loss	6,000	43,000	18,000	130,000
Net periodic benefit credit	(52,000)	(31,000)	(157,000)	(93,000)
Total post-retirement benefits expense	640,000	$ 561,000	2,017,000	$ 1,711,000
Pension Plan
Pension, health and life insurance expense:
Payments made to pension plans			2,204,000
Pension plan payments expected to be made in fiscal year	779,000		779,000
Pension plan payments accrued	259,000		259,000
Other Postretirement Benefits Plan
Pension, health and life insurance expense:
Payments for post retirement healthcare and life insurance			563,000
Pension plan payments expected to be made in fiscal year	871,000		871,000
Pension plan payments accrued	$ 871,000		$ 871,000

Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total	$ 23,603	$ 24,564
Less deferred loan costs	(311)	(370)
Less current portion	(1,310)	(1,208)
Long-term debt	21,982	22,986
Leaf Capital term loan payable
Debt Instrument [Line Items]
Total	61	85
Huntington Term Loans
Debt Instrument [Line Items]
Total	$ 23,542	$ 24,479

Debt - Term Loans (Narrative) (Details) - USD ($)		9 Months Ended
Debt - Term Loans (Narrative) (Details) - USD ($)	Jul. 22, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Principal amount advanced		$ 961,000	$ 25,586,000
Revolving debt		0		$ 1,864,000
Long-term debt		21,982,000		22,986,000
Interest rate swaps:
Debt Instrument [Line Items]
Interest rate swap initial aggregate amount	$ 25,000,000	$ 25,000,000
Fixed interest rate (as a percent)		2.95%
Fair value of interest rate swap		$ 1,131,000		$ 765,000
Huntington Term Loans \| Period One
Debt Instrument [Line Items]
Periodic payment	104,000
Huntington Term Loans \| Period Two
Debt Instrument [Line Items]
Periodic payment	156,000
Huntington Term Loans \| Period Three
Debt Instrument [Line Items]
Periodic payment	208,000
Loans Payable \| Huntington Term Loans
Debt Instrument [Line Items]
Principal amount	75,000,000
Debt instrument, commitments	$ 25,000,000
Stated interest rate	0.00%
Percentage of equity interests		65.00%
Loans Payable \| Huntington Term Loans \| Huntington Loans
Debt Instrument [Line Items]
Principal amount advanced	$ 38,689,000
Loans Payable \| Huntington Term Loans \| Federal Funds Rate
Debt Instrument [Line Items]
Basis points	50.00%
Loans Payable \| Huntington Term Loans \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis points	1.00%
Loans Payable \| Huntington Term Loans \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Debt Instrument [Line Items]
Basis points	2.80%
Loans Payable \| Huntington Term Loans \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Debt Instrument [Line Items]
Basis points	3.30%
Loans Payable \| Huntington Loans
Debt Instrument [Line Items]
Stated interest rate		7.11%		612.00%
Revolving Credit Facility \| Huntington Revolving Loan
Debt Instrument [Line Items]
Principal amount	$ 25,000,000
Principal amount advanced	13,689,000
Debt instrument, amount available		$ 25,000,000
Revolving Credit Facility \| Huntington Capex Loan
Debt Instrument [Line Items]
Revolving loan commitment	$ 25,000,000
SOFR Loans \| Huntington Term Loans
Debt Instrument [Line Items]
Stated interest rate	0.00%
SOFR Loans \| Huntington Term Loans \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Debt Instrument [Line Items]
Basis points	1.80%
SOFR Loans \| Huntington Term Loans \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Debt Instrument [Line Items]
Basis points	2.30%
Term Loan \| Huntington Term Loans
Debt Instrument [Line Items]
Principal amount	$ 25,000,000
Principal amount advanced	$ 25,000,000
Stated interest rate		475.00%

Income Taxes (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,386	$ 1,251	$ 5,198	$ 4,658
Effective tax rate			22.30%	38.70%
Valuation Allowance [Line Items]
Effective tax rate			22.30%	38.70%
Income tax expense	$ 1,386	$ 1,251	$ 5,198	$ 4,658
Performance Shares
Valuation Allowance [Line Items]
Vested (in dollars per share)			$ 0

Stock Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	295,797
Shares surrendered (in shares)	125,701	48,286
Grant price (in USD per share)	$ 10
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Applicable vesting period	3 years
Unrecognized compensation expense	$ 3,676	$ 4,199
Expected weighted-average term	1 year 9 months 18 days
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 0
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 151
Expected weighted-average term	2 years 4 months 24 days

Stock Based Compensation - Restricted Stock (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Restricted Stock
Number of Shares, Restricted Stock
Unvested beginning balance (in shares)			502,747
Granted (in shares)			179,580
Vested (in shares)			(262,788)
Forfeited (in shares)			(45,956)
Unvested ending balance (in shares)	373,583		373,583
Weighted Average Grant Date Fair Value, Restricted Stock
Unvested beginning balance (in dollars per share)	$ 13.33		$ 13.33		$ 10.46
Granted (in dollars per share)			15.98
Vested (in dollars per share)			9.66
Forfeited (in dollars per share)			12.46
Unvested beginning balance (in dollars per share)	$ 13.33		$ 13.33
Restricted Stock \| General and Administrative Expense
Weighted Average Grant Date Fair Value, Restricted Stock
Compensation costs	$ 721,000	$ 623,000	$ 2,187,000	$ 1,660,000
Performance Shares
Number of Shares, Restricted Stock
Unvested beginning balance (in shares)			0
Granted (in shares)			13,350
Vested (in shares)			0
Forfeited (in shares)			(1,613)
Unvested ending balance (in shares)	11,737		11,737
Weighted Average Grant Date Fair Value, Restricted Stock
Unvested beginning balance (in dollars per share)	$ 15.98		$ 15.98		$ 0
Granted (in dollars per share)			15.98
Vested (in dollars per share)			0
Forfeited (in dollars per share)			15.98
Unvested beginning balance (in dollars per share)	$ 15.98		$ 15.98
Performance Shares \| General and Administrative Expense
Weighted Average Grant Date Fair Value, Restricted Stock
Compensation costs	$ 16,000		$ 36,000

Stock Based Compensation - Stock Appreciation Rights (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) $ / shares shares
Weighted Average Exercise Price
Grant price (in USD per share)		$ 10
Stock Appreciation Rights (SARs)
Number of Shares
Beginning Balance (in shares) \| shares		177,016
Granted (in shares) \| shares		0
Exercised (in shares) \| shares		(177,016)
Forfeited (in shares) \| shares		0
Ending Balance (in shares) \| shares		0
Exercisable at the end of period (in shares) \| shares		0
Weighted Average Exercise Price
Beginning balance (in dollars per share)		$ 10.00
Granted (in dollars per share)		0
Exercised (in dollars per share)		10.00
Forfeited (in dollars per share)		0
Ending balance (in dollars per share)		0
Exercisable at the period end (in dollars per share)		$ 0
Unrecognized compensation expense \| $		$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value \| $		$ 2,286,000
Stock Appreciation Rights (SARs) \| General and Administrative Expense
Weighted Average Exercise Price
Compensation costs \| $	$ 45,000

Fair Value of Financial Instruments - Narrative (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Jul. 22, 2022
Interest rate swaps:
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap initial aggregate amount	$ 25,000,000		$ 25,000,000
Fixed interest rate (as a percent)	2.95%
Interest rate swaps: \| Designated as Hedging Instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset Derivatives	$ 23,542,000	$ 24,479,000
Foreign Exchange \| Designated as Hedging Instrument
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset Derivatives	$ 20,222,000	$ 13,851,000

Fair Value of Financial Instruments - Schedule of Derivative Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Foreign Exchange
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset Derivatives	$ 20,222	$ 13,851
Foreign Exchange \| Prepaid expenses other current assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset Derivatives	190	72
Foreign Exchange \| Other non-current assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset Derivatives	0	0
Foreign Exchange \| Accrued other liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liability Derivatives	67	157
Foreign Exchange \| Other non-current liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liability Derivatives	0	0
Interest rate swaps:
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset Derivatives	23,542	24,479
Interest rate swaps: \| Prepaid expenses other current assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset Derivatives	536	280
Interest rate swaps: \| Other non-current assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset Derivatives	595	485
Interest rate swaps: \| Accrued other liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liability Derivatives	0	0
Interest rate swaps: \| Other non-current liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liability Derivatives	$ 0	$ 0

Fair Value of Financial Instruments - Schedule of Unrealized Gain (Loss) Recognized in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Foreign Exchange
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative	$ 88	$ (626)	$ 2,073	$ (626)
Interest rate swaps:
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative	334	767	707	767
Cost of goods sold
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	897	0	1,697	0
Selling, general and administrative expense
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	89	0	168	0
Interest expense
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount of Realized Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	$ 125	$ (38)	$ 341	$ (38)

Accumulated Other Comprehensive Income (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Unusual or Infrequent Item, or Both [Line Items]
Stockholders' Equity Attributable to Parent	$ 133,992,000	$ 108,672,000	$ 130,298,000	$ 116,125,000	$ 106,622,000	$ 100,095,000
Other comprehensive income before reclassifications	2,780,000	141,000
Income tax benefit (expense)	(51,000)	44,000
Amounts reclassified from accumulated other comprehensive income	2,560,000	204,000
Post Retirement Benefit Plan Items
Unusual or Infrequent Item, or Both [Line Items]
Stockholders' Equity Attributable to Parent	2,228,000	884,000		2,507,000		1,075,000
Other comprehensive income before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income	(354,000)	(242,000)
Income tax benefit (expense)	75,000	51,000
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Unusual or Infrequent Item, or Both [Line Items]
Stockholders' Equity Attributable to Parent	994,000	172,000		546,000		0
Other comprehensive income before reclassifications	2,780,000	141,000
Income tax benefit (expense)	126,000	7,000
Amounts reclassified from accumulated other comprehensive income	(2,206,000)	38,000
Accumulated Other Comprehensive Income
Unusual or Infrequent Item, or Both [Line Items]
Stockholders' Equity Attributable to Parent	$ 3,222,000	$ 1,056,000	$ 3,856,000	$ 3,053,000	$ 948,000	$ 1,075,000