cmt-20240930

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, 2024


☐			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 4, 2024, the latest practicable date, 8,955,360 shares of the registrant’s common stock were issued, which includes 304,795 shares of unvested restricted common stock.

Table of Contents


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 Statement 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			23

Item 3. Quantitative and Qualitative Disclosures About Market Risk			29

Item 4. Controls and Procedures			29

Part II — Other Information

Item 1. Legal Proceedings			30

Item 1A. Risk Factors			30

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			30

Item 3. Defaults Upon Senior Securities			30

Item 4. Mine Safety Disclosures			30

Item 5. Other Information			30

Item 6. Exhibits			30

Signatures			31

Index to Exhibits			33

Table of Contents

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,
	2024		2023		2024		2023
Net sales	$	72,992	$	86,728	$	239,880	$	283,961

Cost of sales	60,647		71,450		196,505		230,380

Gross margin	12,345		15,278		43,375		53,581

Selling, general and administrative expense	8,740		9,403		27,550		29,562

Operating income	3,605		5,875		15,825		24,019

Other income and expense

Net interest (income) expense	(144)		187		(99)		836
Net periodic post-retirement benefit	(138)		(52)		(414)		(157)
Total other (income) and expense	(282)		135		(513)		679

Income before taxes	3,887		5,740		16,338		23,340

Income tax expense	727		1,386		3,000		5,198

Net income	$	3,160	$	4,354	$	13,338	$	18,142

Net income per common share:
Basic	$	0.36	$	0.50	$	1.53	$	2.13
Diluted	$	0.36	$	0.49	$	1.51	$	2.08

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,
	2024		2023		2024		2023
Net income	$	3,160	$	4,354	$	13,338	$	18,142

Other comprehensive income:

Foreign currency hedging derivatives:
Unrealized hedge gain (loss)	(1,040)		(898)		(2,672)		208
Net tax benefit (expense)	216		192		563		(50)

Interest rate swaps:
Unrealized hedge gain (loss)	(558)		209		(285)		366
Net tax benefit (expense)	116		(44)		58		(76)

Post-retirement benefit plan adjustments:
Amortization of net actuarial (gain) loss	(37)		6		(111)		18
Amortization of prior service credits	(124)		(124)		(372)		(372)
Net tax benefit	34		25		101		75

Comprehensive income	$	1,767	$	3,720	$	10,620	$	18,311

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, 2024		December 31, 2023
	(Unaudited)
Assets:
Current assets:
Cash and cash equivalents	$	42,348	$	24,104
Accounts receivable, net	36,777		41,711
Inventories, net	20,687		22,063
Foreign tax receivable	5,996		6,380
Prepaid expenses and other current assets	9,690		8,621
Total current assets	115,498		102,879

Right of use asset	2,314		3,802
Property, plant and equipment, net	79,171		81,185

Goodwill	17,376		17,376
Intangibles, net	4,827		6,017
Other non-current assets	1,465		2,118
Total Assets	$	220,651	$	213,377

Liabilities and Stockholders’ Equity:
Current liabilities:
Current portion of long-term debt	$	1,814	$	1,468
Accounts payable	25,011		23,958

Contract liability	4,695		5,204

Compensation and related benefits	7,779		10,498
Accrued other liabilities	8,582		5,058
Total current liabilities	47,881		46,186

Other non-current liabilities	2,191		3,759
Long-term debt	20,164		21,519
Post-retirement benefits liability	2,575		2,960
Total Liabilities	72,811		74,424
Commitments and Contingencies
Stockholders’ Equity:
Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at September 30, 2024 and December 31, 2023	—		—
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares: 8,650,565 at September 30, 2024 and 8,655,384 at December 31, 2023	87		86
Paid-in capital	45,332		43,265
Accumulated other comprehensive income, net of income taxes	2,583		5,301
Treasury stock - at cost, 4,200,683 shares at September 30, 2024 and 3,992,152 shares at December 31, 2023	(35,569)		(31,768)
Retained earnings	135,407		122,069
Total Stockholders’ Equity	147,840		138,953
Total Liabilities and Stockholders’ Equity	$	220,651	$	213,377

See notes to unaudited consolidated financial statements.

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Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statement of Stockholders’ Equity

(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
Restricted stock vested	12,807											—
Purchase of treasury stock related to net settlement of equity awards	(29,804)							(762)				(762)
Exercise of SARs	69,309											—
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
Restricted stock vested	262,788	2										2
Purchase of treasury stock related to net settlement of equity awards	(125,701)	(1)						(2,669)				(2,670)
Exercise of SARs	100,641	1										1
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

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For the three months ended September 30, 2024:


	Common Stock Outstanding		Paid-In Capital	Accumulated Other Comprehensive Income	Treasury Stock	Retained Earnings	Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2024	8,759,404	88	44,770	3,976	(33,578)	132,247	147,503
Net income						3,160	3,160
Change in post-retirement benefits, net of tax of $34				(127)			(127)
Change in foreign currency hedge, net of tax of $216				(824)			(824)
Change in interest rate swaps, net of tax of $116				(

SEC Form 10-Q filed by Core Molding Technologies Inc