(Mark One) | ||
x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
For the Quarterly Period Ended June 30, 2016 | ||
or | ||
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
For the Transition Period from to . |
Delaware (State or other jurisdiction of incorporation or organization) | 47-3574483 (IRS Employer Identification No.) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
June 30, 2016 | December 31, 2015 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 31,040 | $ | 23,520 | ||||
Receivables, net of reserves of approximately $3.1 million and $3.0 million as of June 30, 2016 and December 31, 2015, respectively | 88,540 | 63,050 | ||||||
Inventories | 107,600 | 119,470 | ||||||
Prepaid expenses and other current assets | 6,880 | 5,120 | ||||||
Total current assets | 234,060 | 211,160 | ||||||
Property and equipment, net | 46,430 | 45,890 | ||||||
Goodwill | 5,440 | 4,410 | ||||||
Other intangibles, net | 51,830 | 56,020 | ||||||
Deferred income taxes | 4,760 | 4,500 | ||||||
Other assets | 10,320 | 9,600 | ||||||
Total assets | $ | 352,840 | $ | 331,580 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Current maturities, long-term debt | $ | 12,490 | $ | 10,130 | ||||
Accounts payable | 79,760 | 78,540 | ||||||
Accrued liabilities | 40,910 | 39,820 | ||||||
Total current liabilities | 133,160 | 128,490 | ||||||
Long-term debt | 184,280 | 178,610 | ||||||
Deferred income taxes | 2,970 | 2,910 | ||||||
Other long-term liabilities | 18,640 | 19,570 | ||||||
Total liabilities | 339,050 | 329,580 | ||||||
Commitments and contingent liabilities | — | — | ||||||
Preferred stock, $0.01 par: Authorized 100,000,000 shares; Issued and outstanding: None | — | — | ||||||
Common stock, $0.01 par: Authorized 400,000,000 shares; Issued and outstanding: 18,192,839 shares at June 30, 2016 and 18,131,865 shares at December 31, 2015 | 180 | 180 | ||||||
Paid-in capital | 2,870 | 1,300 | ||||||
Retained earnings (accumulated deficit) | 7,570 | (1,950 | ) | |||||
Accumulated other comprehensive income | 3,170 | 2,470 | ||||||
Total shareholders' equity | 13,790 | 2,000 | ||||||
Total liabilities and shareholders' equity | $ | 352,840 | $ | 331,580 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net sales | $ | 167,760 | $ | 158,540 | $ | 313,870 | $ | 300,900 | ||||||||
Cost of sales | (122,050 | ) | (120,790 | ) | (230,550 | ) | (227,850 | ) | ||||||||
Gross profit | 45,710 | 37,750 | 83,320 | 73,050 | ||||||||||||
Selling, general and administrative expenses | (31,970 | ) | (30,550 | ) | (61,660 | ) | (62,190 | ) | ||||||||
Impairment of intangible assets | (2,240 | ) | — | (2,240 | ) | — | ||||||||||
Net loss on dispositions of property and equipment | (380 | ) | (1,840 | ) | (490 | ) | (1,790 | ) | ||||||||
Operating profit | 11,120 | 5,360 | 18,930 | 9,070 | ||||||||||||
Other expense, net: | ||||||||||||||||
Interest expense | (4,230 | ) | (120 | ) | (8,500 | ) | (240 | ) | ||||||||
Other expense, net | (560 | ) | (720 | ) | (1,170 | ) | (1,970 | ) | ||||||||
Other expense, net | (4,790 | ) | (840 | ) | (9,670 | ) | (2,210 | ) | ||||||||
Income before income tax credit (expense) | 6,330 | 4,520 | 9,260 | 6,860 | ||||||||||||
Income tax credit (expense) | 1,000 | (2,320 | ) | 260 | (3,180 | ) | ||||||||||
Net income | $ | 7,330 | $ | 2,200 | $ | 9,520 | $ | 3,680 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.40 | $ | 0.12 | $ | 0.53 | $ | 0.20 | ||||||||
Diluted | $ | 0.40 | $ | 0.12 | $ | 0.52 | $ | 0.20 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 18,162,451 | 18,062,027 | 18,130,081 | 18,062,027 | ||||||||||||
Diluted | 18,319,068 | 18,134,475 | 18,260,246 | 18,134,475 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income | $ | 7,330 | $ | 2,200 | $ | 9,520 | $ | 3,680 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Foreign currency translation | (1,730 | ) | 1,150 | 300 | (4,090 | ) | ||||||||||
Derivative instruments (Note 13) | 460 | (280 | ) | 400 | (180 | ) | ||||||||||
Total other comprehensive income (loss) | (1,270 | ) | 870 | 700 | (4,270 | ) | ||||||||||
Total comprehensive income (loss) | $ | 6,060 | $ | 3,070 | $ | 10,220 | $ | (590 | ) |
Six months ended June 30, | ||||||||
2016 | 2015 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 9,520 | $ | 3,680 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||
Loss on dispositions of property and equipment | 490 | 1,790 | ||||||
Depreciation | 4,990 | 5,080 | ||||||
Amortization of intangible assets | 3,640 | 3,720 | ||||||
Impairment of intangible assets | 2,240 | — | ||||||
Amortization of original issuance discount and debt issuance costs | 930 | — | ||||||
Deferred income taxes | (370 | ) | 980 | |||||
Non-cash compensation expense | 1,830 | 1,270 | ||||||
Increase in receivables | (23,870 | ) | (31,110 | ) | ||||
(Increase) decrease in inventories | 12,540 | (4,140 | ) | |||||
Increase in prepaid expenses and other assets | (1,580 | ) | (1,630 | ) | ||||
Increase (decrease) in accounts payable and accrued liabilities | (2,680 | ) | 12,800 | |||||
Other, net | (270 | ) | 670 | |||||
Net cash provided by (used for) operating activities | 7,410 | (6,890 | ) | |||||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (6,670 | ) | (4,140 | ) | ||||
Net proceeds from disposition of property and equipment | 240 | 1,470 | ||||||
Net cash used for investing activities | (6,430 | ) | (2,670 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from borrowings on credit facilities | 36,770 | 73,100 | ||||||
Repayments of borrowings on credit facilities | (37,280 | ) | (65,410 | ) | ||||
Proceeds from Term B Loan, net of issuance costs | — | 192,970 | ||||||
Repayments of borrowings on Term B Loan | (5,000 | ) | — | |||||
Proceeds from ABL Revolving Debt | 81,930 | 7,720 | ||||||
Repayments of borrowings on ABL Revolving Debt | (71,930 | ) | — | |||||
Proceeds from borrowings on Vendor Financing | 2,390 | — | ||||||
Net transfers from former parent | — | 27,630 | ||||||
Cash dividend paid to former parent | — | (214,500 | ) | |||||
Shares surrendered upon vesting of employees' share based payment awards to cover tax obligations | (260 | ) | — | |||||
Net cash provided by financing activities | 6,620 | 21,510 | ||||||
Effect of exchange rate changes on cash | (80 | ) | (620 | ) | ||||
Cash and Cash Equivalents: | ||||||||
Increase for the period | 7,520 | 11,330 | ||||||
At beginning of period | 23,520 | 5,720 | ||||||
At end of period | $ | 31,040 | $ | 17,050 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 7,510 | $ | 220 |
Common Stock | Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total | ||||||||||||||||
Balances, December 31, 2015 | $ | 180 | $ | 1,300 | $ | (1,950 | ) | $ | 2,470 | $ | 2,000 | |||||||||
Net income | — | — | 9,520 | — | 9,520 | |||||||||||||||
Other comprehensive income, net of tax | — | — | — | 700 | 700 | |||||||||||||||
Shares surrendered upon vesting of employees' share based payment awards to cover tax obligations | — | (260 | ) | — | — | (260 | ) | |||||||||||||
Non-cash compensation expense | — | 1,830 | — | — | 1,830 | |||||||||||||||
Balances, June 30, 2016 | $ | 180 | $ | 2,870 | $ | 7,570 | $ | 3,170 | $ | 13,790 |
Horizon North America | Horizon International | Total | ||||||||||
(dollars in thousands) | ||||||||||||
Balance, December 31, 2015 | $ | — | $ | 4,410 | $ | 4,410 | ||||||
Foreign currency translation and other | — | 1,030 | 1,030 | |||||||||
Balance, June 30, 2016 | $ | — | $ | 5,440 | $ | 5,440 |
June 30, 2016 | December 31, 2015 | |||||||||||||||
Intangible Category by Useful Life | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
(dollars in thousands) | ||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||
Customer relationships, 5 – 12 years | $ | 33,070 | $ | (27,500 | ) | $ | 32,550 | $ | (26,880 | ) | ||||||
Customer relationships, 15 – 25 years | 105,380 | (81,150 | ) | 105,380 | (78,180 | ) | ||||||||||
Total customer relationships | 138,450 | (108,650 | ) | 137,930 | (105,060 | ) | ||||||||||
Technology and other, 3 – 15 years | 15,310 | (14,220 | ) | 14,480 | (14,060 | ) | ||||||||||
Trademark/Trade names, <1 year | 150 | (40 | ) | — | — | |||||||||||
Total finite-lived intangible assets | 153,910 | (122,910 | ) | 152,410 | (119,120 | ) | ||||||||||
Trademark/Trade names, indefinite-lived | 20,830 | — | 22,730 | — | ||||||||||||
Total other intangible assets | $ | 174,740 | $ | (122,910 | ) | $ | 175,140 | $ | (119,120 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Technology and other, included in cost of sales | $ | 40 | $ | 60 | $ | 70 | $ | 120 | ||||||||
Customer relationships & Trademark/Trade names, included in selling, general and administrative expenses | 1,810 | 1,790 | 3,570 | 3,600 | ||||||||||||
Total amortization expense | $ | 1,850 | $ | 1,850 | $ | 3,640 | $ | 3,720 |
June 30, 2016 | December 31, 2015 | |||||||
(dollars in thousands) | ||||||||
Finished goods | $ | 72,400 | $ | 83,870 | ||||
Work in process | 7,240 | 7,080 | ||||||
Raw materials | 27,960 | 28,520 | ||||||
Total inventories | $ | 107,600 | $ | 119,470 |
June 30, 2016 | December 31, 2015 | |||||||
(dollars in thousands) | ||||||||
Buildings | $ | 7,740 | $ | 8,330 | ||||
Machinery and equipment | 99,500 | 95,860 | ||||||
107,240 | 104,190 | |||||||
Less: Accumulated depreciation | 60,810 | 58,300 | ||||||
Property and equipment, net | $ | 46,430 | $ | 45,890 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Depreciation expense, included in cost of sales | $ | 2,070 | $ | 2,110 | $ | 4,250 | $ | 4,260 | ||||||||
Depreciation expense, included in selling, general and administrative expense | 340 | 430 | 740 | 820 | ||||||||||||
Total depreciation expense | $ | 2,410 | $ | 2,540 | $ | 4,990 | $ | 5,080 |
June 30, 2016 | December 31, 2015 | |||||||
(dollars in thousands) | ||||||||
ABL Facility | $ | 10,000 | $ | — | ||||
Term B Loan | 184,200 | 188,520 | ||||||
Bank facilities, capital leases and other long-term debt | 2,570 | 220 | ||||||
196,770 | 188,740 | |||||||
Less: Current maturities, long-term debt | 12,490 | 10,130 | ||||||
Long-term debt | $ | 184,280 | $ | 178,610 |
Asset / (Liability) Derivatives | ||||||||||
Balance Sheet Caption | June 30, 2016 | December 31, 2015 | ||||||||
(dollars in thousands) | ||||||||||
Derivatives designated as hedging instruments | ||||||||||
Foreign currency forward contracts | Accrued liabilities | $ | (330 | ) | $ | (800 | ) | |||
Total derivatives designated as hedging instruments | (330 | ) | (800 | ) | ||||||
Derivatives de-designated as hedging instruments | ||||||||||
Foreign currency forward contracts | Other assets | — | 30 | |||||||
Foreign currency forward contracts | Accrued liabilities | (130 | ) | (190 | ) | |||||
Total derivatives de-designated as hedging instruments | (130 | ) | (160 | ) | ||||||
Total derivatives | $ | (460 | ) | $ | (960 | ) |
Amount of Loss Recognized in AOCI on Derivatives (Effective Portion, net of tax) | Amount of Loss Reclassified from AOCI into Earnings | ||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||
As of June 30, 2016 | As of December 31, 2015 | Location of Loss Reclassified from AOCI into Earnings (Effective Portion) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||
Derivatives instruments | |||||||||||||||||||||||||
Foreign currency forward contracts | $ | (310 | ) | $ | (710 | ) | Cost of sales | $ | (360 | ) | $ | (260 | ) | $ | (760 | ) | $ | (450 | ) |
Frequency | Asset / (Liability) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||
June 30, 2016 | ||||||||||||||||||
Foreign currency forward contracts | Recurring | $ | (460 | ) | $ | — | $ | (460 | ) | $ | — | |||||||
December 31, 2015 | ||||||||||||||||||
Foreign currency forward contracts | Recurring | $ | (960 | ) | $ | — | $ | (960 | ) | $ | — |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Net Sales | ||||||||||||||||
Horizon North America | $ | 126,860 | $ | 116,710 | $ | 235,590 | $ | 220,290 | ||||||||
Horizon International | 40,900 | 41,830 | 78,280 | 80,610 | ||||||||||||
Total | $ | 167,760 | $ | 158,540 | $ | 313,870 | $ | 300,900 | ||||||||
Operating Profit (Loss) | ||||||||||||||||
Horizon North America | $ | 13,470 | $ | 8,240 | $ | 23,580 | $ | 14,140 | ||||||||
Horizon International | 2,160 | 1,210 | 4,610 | 3,480 | ||||||||||||
Corporate expenses | (4,510 | ) | (4,090 | ) | (9,260 | ) | (8,550 | ) | ||||||||
Total | $ | 11,120 | $ | 5,360 | $ | 18,930 | $ | 9,070 |
March 1, 2016 Grant | ||||
Fair value per option | $ | 3.93 | ||
Exercise price | $ | 10.08 | ||
Risk-free interest rate | 1.39 | % | ||
Dividend yield | 0.00 | % | ||
Expected stock volatility | 40.59 | % | ||
Expected life (years) | 5.5 |
Number of Stock Options | Weighted Average Exercise Price | Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||
Outstanding at December 31, 2015 | 218,436 | $ | 10.57 | ||||||||||
Granted | 137,372 | 10.08 | |||||||||||
Exercised | — | — | |||||||||||
Canceled, forfeited | — | — | |||||||||||
Expired | — | — | |||||||||||
Outstanding at June 30, 2016 | 355,808 | $ | 10.38 | 9.3 | $ | 345,000 |
▪ | 2,375 time-based restricted stock units that vested on May 1, 2016 |
▪ | 152,113 time-based restricted stock units that vest in equal installments on March 1, 2017, March 1, 2018 and March 1, 2019 |
▪ | 20,787 time-based restricted stock units that vest on February 1, 2018 |
▪ | 40,000 time-based restricted stock units that vest on March 1, 2019 |
▪ | 68,559 market-based performance stock units that vest on March 1, 2019 |
▪ | 3,968 time-based restricted stock units that vest on March 1, 2018 |
Number of Restricted Shares | Weighted Average Grant Date Fair Value | ||||||
Outstanding at December 31, 2015 | 372,219 | $ | 13.11 | ||||
Granted | 287,802 | 11.51 | |||||
Vested | (129,647 | ) | 14.49 | ||||
Canceled, forfeited | (4,465 | ) | 10.63 | ||||
Outstanding at June 30, 2016 | 525,909 | $ | 11.91 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(dollars in thousands, except for per share amounts) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income for basic and diluted earnings per share | $ | 7,330 | $ | 2,200 | $ | 9,520 | $ | 3,680 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding, basic | 18,162,451 | 18,062,027 | 18,130,081 | 18,062,027 | ||||||||||||
Dilutive effect of stock-based awards | 156,617 | 72,448 | 130,165 | 72,448 | ||||||||||||
Weighted average shares outstanding, diluted | 18,319,068 | 18,134,475 | 18,260,246 | 18,134,475 | ||||||||||||
Basic earnings per share | $ | 0.40 | $ | 0.12 | $ | 0.53 | $ | 0.20 | ||||||||
Diluted earnings per share | $ | 0.40 | $ | 0.12 | $ | 0.52 | $ | 0.20 |
Three months ended June 30, | Six months ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Number of options | 298,576 | — | 310,521 | — | ||||||||
Exercise price of options | $10.08 - $11.02 | — | $9.20 - $11.29 | — | ||||||||
Restricted stock units | 71,132 | — | 47,243 | — |
Derivative Instruments | Foreign Currency Translation | Total | ||||||||||
(dollars in thousands) | ||||||||||||
Balance, December 31, 2015 | $ | (710 | ) | $ | 3,180 | $ | 2,470 | |||||
Net unrealized gains (losses) arising during the period | (330 | ) | 300 | (30 | ) | |||||||
Less: Net realized losses reclassified to net income (a) | (730 | ) | — | (730 | ) | |||||||
Net current-period change | 400 | 300 | 700 | |||||||||
Balance, June 30, 2016 | $ | (310 | ) | $ | 3,480 | $ | 3,170 |
Derivative Instruments | Foreign Currency Translation | Total | ||||||||||
(dollars in thousands) | ||||||||||||
Balance, December 31, 2014 | $ | (70 | ) | $ | 7,460 | $ | 7,390 | |||||
Net transfer from former parent | — | 5,230 | 5,230 | |||||||||
Net unrealized losses arising during the period (a) | (610 | ) | (4,090 | ) | (4,700 | ) | ||||||
Less: Net realized losses reclassified to net income (b) | (430 | ) | — | (430 | ) | |||||||
Net current-period change | (180 | ) | 1,140 | 960 | ||||||||
Balance, June 30, 2015 | $ | (250 | ) | $ | 8,600 | $ | 8,350 |
Three months ended June 30, | ||||||||||||||
2016 | As a Percentage of Net Sales | 2015 | As a Percentage of Net Sales | |||||||||||
(dollars in thousands) | ||||||||||||||
Net Sales | ||||||||||||||
Horizon North America | $ | 126,860 | 75.6 | % | $ | 116,710 | 73.6 | % | ||||||
Horizon International | 40,900 | 24.4 | % | 41,830 | 26.4 | % | ||||||||
Total | $ | 167,760 | 100.0 | % | $ | 158,540 | 100.0 | % | ||||||
Gross Profit | ||||||||||||||
Horizon North America | $ | 38,370 | 30.2 | % | $ | 31,070 | 26.6 | % | ||||||
Horizon International | 7,340 | 17.9 | % | 6,680 | 16.0 | % | ||||||||
Total | $ | 45,710 | 27.2 | % | $ | 37,750 | 23.8 | % | ||||||
Selling, General and Administrative Expenses | ||||||||||||||
Horizon North America | $ | 22,550 | 17.8 | % | $ | 21,020 | 18.0 | % | ||||||
Horizon International | 4,910 | 12.0 | % | 5,440 | 13.0 | % | ||||||||
Corporate expenses | 4,510 | N/A | 4,090 | N/A | ||||||||||
Total | $ | 31,970 | 19.1 | % | $ | 30,550 | 19.3 | % | ||||||
Net Loss on Disposition of Property and Equipment | ||||||||||||||
Horizon North America | $ | (120 | ) | (0.1 | )% | $ | (1,800 | ) | (1.5 | %) | ||||
Horizon International | (260 | ) | (0.6 | )% | (40 | ) | (0.1 | %) | ||||||
Total | $ | (380 | ) | (0.2 | )% | $ | (1,840 | ) | (1.2 | %) | ||||
Operating Profit (Loss) | ||||||||||||||
Horizon North America | $ | 13,470 | 10.6 | % | $ | 8,240 | 7.1 | % | ||||||
Horizon International | 2,160 | 5.3 | % | 1,210 | 2.9 | % | ||||||||
Corporate expenses | (4,510 | ) | N/A | (4,090 | ) | N/A | ||||||||
Total | $ | 11,120 | 6.6 | % | $ | 5,360 | 3.4 | % | ||||||
Depreciation and Amortization | ||||||||||||||
Horizon North America | $ | 2,650 | 2.1 | % | $ | 2,590 | 2.2 | % | ||||||
Horizon International | 1,610 | 3.9 | % | 1,780 | 4.3 | % | ||||||||
Corporate expenses | — | N/A | 20 | N/A | ||||||||||
Total | $ | 4,260 | 2.5 | % | $ | 4,390 | 2.8 | % |
Six months ended June 30, | ||||||||||||||
2016 | As a Percentage of Net Sales | 2015 | As a Percentage of Net Sales | |||||||||||
(dollars in thousands) | ||||||||||||||
Net Sales | ||||||||||||||
Horizon North America | $ | 235,590 | 75.1 | % | $ | 220,290 | 73.2 | % | ||||||
Horizon International | 78,280 | 24.9 | % | 80,610 | 26.8 | % | ||||||||
Total | $ | 313,870 | 100.0 | % | $ | 300,900 | 100.0 | % | ||||||
Gross Profit | ||||||||||||||
Horizon North America | $ | 68,600 | 29.1 | % | $ | 58,520 | 26.6 | % | ||||||
Horizon International | 14,720 | 18.8 | % | 14,530 | 18.0 | % | ||||||||
Total | $ | 83,320 | 26.5 | % | $ | 73,050 | 24.3 | % | ||||||
Selling, General and Administrative Expenses | ||||||||||||||
Horizon North America | $ | 42,540 | 18.1 | % | $ | 42,550 | 19.3 | % | ||||||
Horizon International | 9,860 | 12.6 | % | 11,090 | 13.8 | % | ||||||||
Corporate expenses | 9,260 | N/A | 8,550 | N/A | ||||||||||
Total | $ | 61,660 | 19.6 | % | $ | 62,190 | 20.7 | % | ||||||
Net Loss on Disposition of Property and Equipment | ||||||||||||||
Horizon North America | $ | (250 | ) | (0.1 | )% | $ | (1,750 | ) | (0.8 | %) | ||||
Horizon International | (240 | ) | (0.3 | )% | (40 | ) | — | % | ||||||
Total | $ | (490 | ) | (0.2 | )% | $ | (1,790 | ) | (0.6 | %) | ||||
Operating Profit (Loss) | ||||||||||||||
Horizon North America | $ | 23,580 | 10.0 | % | $ | 14,140 | 6.4 | % | ||||||
Horizon International | 4,610 | 5.9 | % | 3,480 | 4.3 | % | ||||||||
Corporate expenses | (9,260 | ) | N/A | (8,550 | ) | N/A | ||||||||
Total | $ | 18,930 | 6.0 | % | $ | 9,070 | 3.0 | % | ||||||
Depreciation and Amortization | ||||||||||||||
Horizon North America | $ | 5,480 | 2.3 | % | $ | 5,180 | 2.4 | % | ||||||
Horizon International | 3,140 | 4.0 | % | 3,590 | 4.5 | % | ||||||||
Corporate expenses | 10 | N/A | 20 | N/A | ||||||||||
Total | $ | 8,630 | 2.7 | % | $ | 8,790 | 2.9 | % |
▪ | global sales growth with our automotive OE customers driven by both new program awards and growth within existing programs; |
▪ | the impact of foreign currency, as our reported results in U.S. dollars were negatively impacted as a result of the stronger U.S. dollar relative to foreign currencies in our Horizon International reportable segment; |
▪ | costs associated with the consolidation of our manufacturing facilities within the North America reportable segment; and |
▪ | the realization of previously implemented cost savings and productivity initiatives. |
Less: | Add: | |||||||||||||||
Year Ended December 31, 2015 | Six Months Ended June 30, 2015 | Six Months Ended June 30, 2016 | Twelve Months Ended June 30, 2016 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Net income | $ | 8,300 | $ | 3,680 | $ | 9,520 | $ | 14,140 | ||||||||
Bank stipulated adjustments: | ||||||||||||||||
Interest expense, net (as defined) | 8,810 | 240 | 8,500 | 17,070 | ||||||||||||
Income tax expense (benefit) | (1,280 | ) | 3,180 | (260 | ) | (4,720 | ) | |||||||||
Depreciation and amortization | 17,080 | 8,800 | 8,630 | 16,910 | ||||||||||||
Non-cash compensation expense(1) | 2,530 | 1,270 | 1,830 | 3,090 | ||||||||||||
Other non-cash expenses or losses | 11,350 | 10,930 | 900 | 1,320 | ||||||||||||
Non-recurring expenses or costs (as defined)(2) | 5,000 | 3,530 | 4,250 | 5,720 | ||||||||||||
Impairment of intangible assets | — | — | 2,280 | 2,280 | ||||||||||||
Interest-equivalent costs associated with any Specified Vendor Receivables Financing | 900 | 330 | 530 | 1,100 | ||||||||||||
Consolidated Bank EBITDA, as defined | $ | 52,690 | $ | 31,960 | $ | 36,180 | $ | 56,910 |
June 30, 2016 | ||||
(dollars in thousands) | ||||
Total Consolidated Indebtedness | $ | 178,110 | ||
Consolidated Bank EBITDA, as defined | 56,910 | |||
Actual leverage ratio | 3.13 | x | ||
Covenant requirement | 5.25 | x |
▪ | An emerging growth company is exempt from any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and financial statements, commonly known as an "auditor discussion and analysis." |
▪ | An emerging growth company is not required to hold a nonbinding advisory stockholder vote on executive compensation or any golden parachute payments not previously approved by stockholders. |
▪ | An emerging growth company is not required to comply with the requirement of auditor attestation of management's assessment of internal control over financial reporting, which is required for other public reporting companies by Section 404 of the Sarbanes-Oxley Act. |
▪ | An emerging growth company is eligible for reduced disclosure obligations regarding executive compensation in its periodic and annual reports, including without limitation exemption from the requirement to provide a compensation discussion and analysis describing compensation practices and procedures. |
▪ | A company that is an emerging growth company is eligible for reduced financial statement disclosure in registration statements, which must include two years of audited financial statements rather than the three years of audited financial statements that are required for other public reporting companies. |
3.1(b) | Amended and Restated Certificate of Incorporation of Horizon Global Corporation. |
3.2(a) | Amended and Restated By-laws of Horizon Global Corporation. |
10.1(c) | Horizon Global Corporation Amended and Restated 2015 Equity and Incentive Compensation Plan. |
31.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS | XBRL Instance Document. |
101.SCH | XBRL Taxonomy Extension Schema Document. |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
(a) | Incorporated by reference to the Exhibits filed with our Registration Statement on Form S-1/A filed on June 11, 2015 (Reg. No. 333-203138). | |
(b) | Incorporated by reference to the Exhibits filed with our Quarterly Report on Form 10-Q filed on August 11, 2015 (File No. 001-37427). | |
(c) | Incorporated by reference to the Exhibits filed with our Current Report on Form 8-K filed on May 23, 2016 (File No. 001-37427). | |
HORIZON GLOBAL CORPORATION (Registrant) | ||||
/s/ DAVID G. RICE | ||||
Date: | August 9, 2016 | By: | David G. Rice Chief Financial Officer |
3.1(b) | Amended and Restated Certificate of Incorporation of Horizon Global Corporation. |
3.2(a) | Amended and Restated By-laws of Horizon Global Corporation. |
10.1(c) | Horizon Global Corporation Amended and Restated 2015 Equity and Incentive Compensation Plan. |
31.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS | XBRL Instance Document. |
101.SCH | XBRL Taxonomy Extension Schema Document. |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
(a) | Incorporated by reference to the Exhibits filed with our Registration Statement on Form S-1/A filed on June 11, 2015 (Reg. No. 333-203138). | |
(b) | Incorporated by reference to the Exhibits filed with our Quarterly Report on Form 10-Q filed on August 11, 2015 (File No. 001-37427). | |
(c) | Incorporated by reference to the Exhibits filed with our Current Report on Form 8-K filed on May 23, 2016 (File No. 001-37427). | |
1. | I have reviewed this quarterly report on Form 10-Q of Horizon Global Corporation; |
2. | Based on my knowledge, this 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 report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this 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 report; |
4. | The registrant's other certifying officer(s) 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 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 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 an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) 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 the 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. |
/s/ A. MARK ZEFFIRO | |
A. Mark Zeffiro Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Horizon Global Corporation; |
2. | Based on my knowledge, this 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 report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this 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 report; |
4. | The registrant's other certifying officer(s) 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 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 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 an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) 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 the 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. |
/s/ DAVID G. RICE | |
David G. Rice Chief Financial Officer |
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/ A. MARK ZEFFIRO | |
A. Mark Zeffiro Chief Executive Officer |
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 G. RICE | |
David G. Rice Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 04, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HORIZON GLOBAL CORP | |
Entity Central Index Key | 0001637655 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 18,193,019 |
Consolidated Balance Sheet Parentheticals - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Current assets: | ||
Receivables, reserves (in dollars) | $ 3.1 | $ 3.0 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 100,000,000 | 100,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized shares | 400,000,000 | 400,000,000 |
Common Stock, issued shares | 18,192,839 | 18,131,865 |
Common Stock, outstanding shares | 18,192,839 | 18,131,865 |
Consolidated Statement of Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Statement [Abstract] | ||||
Net sales | $ 167,760 | $ 158,540 | $ 313,870 | $ 300,900 |
Cost of sales | (122,050) | (120,790) | (230,550) | (227,850) |
Gross profit | 45,710 | 37,750 | 83,320 | 73,050 |
Selling, general and administrative expenses | (31,970) | (30,550) | (61,660) | (62,190) |
Impairment of intangible assets | (2,240) | 0 | (2,240) | 0 |
Net loss on dispositions of property and equipment | (380) | (1,840) | (490) | (1,790) |
Operating profit | 11,120 | 5,360 | 18,930 | 9,070 |
Other expense, net: | ||||
Interest expense | (4,230) | (120) | (8,500) | (240) |
Other expense, net | (560) | (720) | (1,170) | (1,970) |
Other expense, net | (4,790) | (840) | (9,670) | (2,210) |
Income before income tax expense | 6,330 | 4,520 | 9,260 | 6,860 |
Income tax credit (expense) | 1,000 | (2,320) | 260 | (3,180) |
Net income | $ 7,330 | $ 2,200 | $ 9,520 | $ 3,680 |
Net income per share: | ||||
Net income per share-Basic (in usd per share) | $ 0.40 | $ 0.12 | $ 0.53 | $ 0.20 |
Net income per share-Diluted (in usd per share) | $ 0.40 | $ 0.12 | $ 0.52 | $ 0.20 |
Weighted average common shares outstanding: | ||||
Weighted average common shares-Basic | 18,162,451 | 18,062,027 | 18,130,081 | 18,062,027 |
Weighted average common shares-Diluted | 18,319,068 | 18,134,475 | 18,260,246 | 18,134,475 |
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,330 | $ 2,200 | $ 9,520 | $ 3,680 |
Other comprehensive income | ||||
Foreign currency translation | (1,730) | 1,150 | 300 | (4,090) |
Derivative instruments | 460 | (280) | 400 | (180) |
Total other comprehensive income (loss) | (1,270) | 870 | 700 | (4,270) |
Total comprehensive income (loss) | $ 6,060 | $ 3,070 | $ 10,220 | $ (590) |
Consolidated Statement of Shareholders' Equity - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings (Accumulated Deficit) [Member] |
Accumulated Other Comprehensive Income [Member] |
---|---|---|---|---|---|
Balances at Dec. 31, 2015 | $ 2,000 | $ 180 | $ 1,300 | $ (1,950) | $ 2,470 |
Net income | 9,520 | 9,520 | |||
Other comprehensive income, net of tax | 700 | 700 | |||
Shares surrendered upon vesting of employees' share based payment awards to cover tax obligations | (260) | (260) | |||
Non-cash compensation expense | 1,830 | 1,830 | |||
Balances at Jun. 30, 2016 | $ 13,790 | $ 180 | $ 2,870 | $ 7,570 | $ 3,170 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation On June 30, 2015, Horizon Global Corporation ("Horizon," "Horizon Global" or the "Company") became an independent company as a result of the distribution by TriMas Corporation ("TriMas" or "former parent") of 100 percent of the outstanding common shares of Horizon Global to TriMas shareholders (the "spin-off"). Each TriMas shareholder of record as of the close of business on June 25, 2015 ("Record Date") received two Horizon Global common shares for every five TriMas common shares held as of the Record Date. The spin-off was completed on June 30, 2015 and was structured to be tax-free to both TriMas and Horizon Global shareholders. On July 1, 2015, Horizon Global common shares began regular trading on the New York Stock Exchange under the ticker symbol "HZN". Pursuant to the separation and distribution agreement with TriMas, on June 30, 2015, the Company paid a cash dividend to TriMas of $214.5 million. Horizon qualifies as an "emerging growth company" as defined in the Jumpstart our Business Startups Act of 2012 ("JOBS Act"), and, therefore, will be subject to reduced reporting requirements. The JOBS Act also provides that an "emerging growth company" can utilize the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 (the "Securities Act"), for complying with new or revised accounting standards. However, the Company has chosen to "opt out" of such extended transition period, and, as a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for companies that are not "emerging growth companies." Section 107 of the JOBS Act provides that the Company's decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable. Horizon is a global designer, manufacturer and distributor of a wide variety of high quality, custom-engineered towing, trailering, cargo management and other related accessories. These products are designed to support original equipment manufacturers ("OEMs"), original equipment suppliers, aftermarket and retail customers within the agricultural, automotive, construction, horse/livestock, industrial, marine, military, recreational, trailer and utility markets. The Company groups its operating segments into reportable segments by the region in which sales and manufacturing efforts are focused. The Company's reportable segments are Horizon North America and Horizon International. See Note 9, "Segment Information," for further information on each of the Company's reportable segments. The accompanying condensed consolidated financial statements for periods prior to the spin-off are derived from TriMas' historical accounting records on a carve-out basis. For periods subsequent to the spin-off, the condensed consolidated financial statements are derived from the historical accounting records of Horizon on a stand-alone basis. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. You should read these financial statements in conjunction with our audited consolidated financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2015. It is management's opinion that these financial statements contain all adjustments, including adjustments of a normal and recurring nature, necessary for a fair presentation of financial position and results of operations. The Company's condensed consolidated financial statements may not be indicative of the Company's future performance and do not necessarily reflect what the results of operations, financial position, and cash flows would have been had it been operated as a stand-alone company during all periods presented. For periods prior to the separation, the combined financial statements include expense allocations for certain functions provided by our former parent; however, the allocations may not reflect the expenses the Company would have incurred as an independent, publicly traded company for the periods presented. These expenses were allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on the basis of revenue or headcount. The condensed consolidated financial statements also include certain assets and liabilities that have historically been held at the parent corporate level. These assets and liabilities were transferred to the Company as of the date of the spin-off through specific identification and allocation where necessary. Transactions historically treated as intercompany between the Company and our former parent have been included in these condensed consolidated financial statements and were considered effectively settled for cash at the time of the spin-off. |
New Accounting Pronouncements |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies several aspects of share-based payment award transactions including: income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for public entities for fiscal years beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. The Company early adopted this guidance effective June 30, 2016. The Company adopted the provisions related to forfeitures on a modified retrospective basis to record actual forfeitures as they occur, and the impact on our condensed consolidated balance sheet as of December 31, 2015 includes an increase of accumulated deficit of $40 thousand, with a corresponding increase in paid-in capital. The provisions related to income taxes and the statement of cash flows were adopted on a prospective basis and did not have a material impact on the Company's condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which supersedes the leases requirements in "Leases (Topic 840)." The objective of this update is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company is in the process of assessing the impact of the adoption of ASU 2016-02 on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes," which requires companies to present deferred income tax assets and deferred income tax liabilities as non-current in a classified balance sheet instead of the current requirement to separate them into current and non-current amounts. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. The Company early adopted this guidance effective December 31, 2015 on a retrospective basis. The impact of this ASU on our consolidated balance sheets as of December 31, 2015 includes a reclassification of current deferred tax assets to non-current deferred tax assets of $2.6 million and non-current deferred tax liabilities of $3.7 million. Other than these reclassifications, the adoption of this update did not have a significant impact on our financial position, results of operations or cash flows. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This guidance provides that inventory not measured using the last-in, first out ("LIFO") or retail inventory methods should be measured at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory. For public business entities, the amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is in the process of assessing the impact of the adoption of this update on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." This guidance requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 was originally effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2016; however, in August 2015, the FASB approved a one-year deferral of the effective date through the issuance of ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date." In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Gross versus Net)," which provides amendments to improve the operability and understandability of the implementation guidance on principal versus agent considerations by amending certain existing illustrative examples and adding additional illustrative examples to assist in the application of the guidance. In April 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing," which provides amendments to clarify two aspects of Topic 606: identifying performance obligations; and licensing implementation guidance. The FASB issued ASU 2016-11, "Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting," in May 2016, which rescinded of several SEC Staff Announcements that are codified in Topic 605, including, among other items, guidance related to accounting for shipping and handling fees and costs, freight services and consideration given by a vendor to a customer. Also in May 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," which provides amendments to Topic 606, including improvements to guidance on collectability, non-cash consideration, and completed contracts at transition. Furthermore, the ASU 2016-12 amendments include a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other taxes collected from customers. The Company is in the process of assessing the impact of the adoption of the aforementioned ASUs on its consolidated financial statements. |
Facility Closure |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Facility Closure | Facility Closure Ciudad Juarez, Mexico and El Paso, Texas facilities In July 2015, the Company announced plans to close its manufacturing facility in Ciudad Juarez, Mexico along with its distribution warehouse in El Paso, Texas. During the second quarter of 2016, the Company vacated the Juarez, Mexico and El Paso, Texas sites. Upon the cease use date of the facilities, the Company recorded an accrual of approximately $2.6 million for estimated future unrecoverable lease obligations, net of estimated sublease recoveries, for the lease agreements expiring in 2019 and 2020, respectively. The corresponding expense consists of $1.9 million recorded as cost of sales and $0.7 million recorded as selling, general and administrative expenses in the accompanying condensed consolidated statement of income. Most of the manufacturing was relocated to the Company's existing facilities in Reynosa, Mexico. The distribution operations moved to a new warehouse facility, also in Reynosa, Mexico. During the third quarter of 2015, the Company recorded charges, primarily for severance benefits for its approximately 214 hourly workers to be involuntarily terminated. These charges were approximately $0.9 million, of which approximately $0.8 million was included in cost of sales and approximately $0.1 million was included in selling, general and administrative expenses. Also, during the third quarter of 2015, the Company recorded charges, primarily related to severance benefits for approximately 47 salaried employees to be involuntarily terminated as part of the closure of approximately $0.9 million, of which approximately $0.7 million was included in cost of sales and approximately $0.2 million was included in selling, general and administrative expenses. As of June 30, 2016, the hourly and salaried severance benefits have been fully paid. In addition, the Company incurred approximately $0.1 million and $0.4 million of pre-tax non-cash charges related to accelerated depreciation expense for the three and six months ended June 30, 2016, respectively. These depreciation charges are the result of shortening the expected lives on certain machinery, equipment and leasehold improvement assets that the Company will no longer utilize following the facility closure. |
Acquisitions (Notes) |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions |
Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill for the six months ended June 30, 2016 are summarized as follows:
In May 2016, the Company made a decision to simplify its brand offering in the Horizon North America reportable segment. Based on this decision, the Company no longer expects that the economic benefit of certain indefinite-lived trade names extends beyond the foreseeable future. As a result, during the second quarter of 2016, the Company determined these trade names with an aggregate carrying value of $2.4 million should be assigned finite useful lives. In accordance with ASC 350, "Intangibles - Goodwill and Other," these trade names were first tested for impairment as indefinite-lived intangible assets resulting in non-cash intangible asset impairment charges of $2.2 million. The remaining $0.2 million was reclassified to amortizable intangible assets during the second quarter of 2016, and will be amortized within selling, general and administrative costs over the remainder of the year. The Company incurred approximately $40 thousand of charges related to the amortization of the remaining carrying value of these intangible assets during the three and six months ended June 30, 2016. The gross carrying amounts and accumulated amortization of the Company's other intangibles as of June 30, 2016 and December 31, 2015 are summarized below. The Company amortizes these assets over periods ranging from three to 25 years, except for impaired trade names which will be amortized over the remainder of the year.
Amortization expense related to intangible assets as included in the accompanying condensed consolidated statements of income is summarized as follows:
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consist of the following components:
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Property and Equipment, Net |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and Equipment, Net Property and equipment consists of the following components:
Depreciation expense included in the accompanying condensed consolidated statements of income is as follows:
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Long-term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term Debt The Company's long-term debt consists of the following:
ABL Facility On December 22, 2015, the Company entered into an amended and restated loan agreement among the Company, Cequent Performance Products, Inc. ("Cequent Performance"), Cequent Consumer Products, Inc. ("Cequent Consumer"), Cequent UK Limited, Cequent Towing Products of Canada Ltd., certain other subsidiaries of the Company party thereto as guarantors, the lenders party thereto and Bank of America, N.A., as agent for the lenders (the "ABL Loan Agreement"), under which the lenders party thereto agreed to provide the Company and certain of its subsidiaries with a committed asset-based revolving credit facility (the "ABL Facility") providing for revolving loans up to an aggregate principal amount of $99.0 million. The ABL Loan Agreement provides for the increase of the U.S. sub-facility from an aggregate principal amount of $85.0 million to up to $94.0 million (subject to availability under a U.S.-specific borrowing base) (the "U.S. Facility"), and the establishment of two new sub-facilities, (i) a Canadian sub-facility, in an aggregate principal amount of up to $2.0 million (subject to availability under a Canadian-specific borrowing base) (the "Canadian Facility") and (ii) a U.K. sub-facility in an aggregate principal amount of up to $3.0 million (subject to availability under a U.K.-specific borrowing base) (the "U.K. Facility"). The ABL Facility also includes a $20.0 million letter of credit sub-facility, which matures on June 30, 2020. Borrowings under the ABL Facility bear interest, at the Company's election, at either (i) the Base Rate (as defined per the credit agreement, the "Base Rate") plus the Applicable Margin (as defined per the credit agreement "Applicable Margin"), or (ii) the London Interbank Offered Rate ("LIBOR") plus the Applicable Margin. The Company incurs fees with respect to the ABL Facility, including (i) an unused line fee of 0.25% times the amount by which the revolver commitments exceed the average daily revolver usage during any month, (ii) facility fees equal to the applicable margin in effect for LIBOR revolving loans, as defined per the credit agreement, times the average daily stated amount of letters of credit, (iii) a fronting fee equal to 0.125% per annum on the stated amount of each letter of credit and (iv) customary administrative fees. All of the indebtedness of the U.S. Facility is and will be guaranteed by the Company's existing and future material domestic subsidiaries and is and will be secured by substantially all of the assets of the Company and such guarantors. In connection with the ABL Loan Agreement, Cequent Performance and certain other subsidiaries of the Company party to the ABL Loan Agreement entered into a foreign facility guarantee and collateral agreement (the "Foreign Collateral Agreement") in order to secure and guarantee the obligation under the Canadian Facility and the U.K. Facility. Under the Foreign Collateral Agreement, Cequent Performance and the other subsidiaries of the Company party thereto granted a lien on certain of their assets to Bank of America, N.A., as the agent for the lenders and other secured parties under the Canadian Facility and U.K. Facility. The ABL Loan Agreement contains customary negative covenants, and does not include any financial maintenance covenants other than a springing minimum fixed charge coverage ratio of at least 1.00 to 1.00 on a trailing twelve-month basis, which will be tested only upon the occurrence of an event of default or certain other conditions as specified in the agreement. At June 30, 2016, the Company was in compliance with its financial covenants contained in the ABL Facility. Debt issuance costs of approximately $2.5 million were incurred in connection with the entry into and amendment of the ABL Facility. These debt issuance costs will be amortized into interest expense over the contractual term of the loan. The Company recognized approximately $0.1 million and $0.3 million of amortization of debt issuance costs for the three and six months ended June 30, 2016, respectively, which is included in the accompanying condensed consolidated statements of income. There was no amortization of debt issuance costs for the three and six months ended June 30, 2015. As of June 30, 2016, there were $2.1 million of unamortized debt issuance costs included in other assets in the accompanying condensed consolidated balance sheets. As of June 30, 2016, there was approximately $10.0 million outstanding under the ABL Facility with a weighted average interest rate of 2.8%. Total letters of credit issued at June 30, 2016 were approximately $9.4 million. The Company had $79.6 million in available funds from the ABL Facility as of June 30, 2016. Term Loan On June 30, 2015, the Company entered into a term loan agreement ("Term B Loan") under which the Company borrowed an aggregate of $200.0 million, which matures on June 30, 2021. The Term B Loan permits the Company to request incremental term loan facilities, subject to certain conditions, in an aggregate principal amount, together with the aggregate principal amount of incremental equivalent debt incurred by the Company, of up to $25.0 million, plus an additional amount such that the Company's pro forma first lien net leverage ratio (as defined in the term loan agreement) would not exceed 3.50 to 1.00 as a result of the incurrence thereof. Borrowings under the Term B Loan bear interest, at the Company's election, at either (i) the Base Rate plus 5.0% per annum, or (ii) LIBOR plus 6.0% per annum. Principal payments required under the Term B Loan are $2.5 million due each calendar quarter beginning September 2015. Commencing with the fiscal year ending December 31, 2016, and for each fiscal year thereafter, the Company will also be required to make prepayments of outstanding amounts under the Term B Loan in an amount equal to 50.0% of the Company's excess cash flow for such fiscal year, as defined in the Term B Loan, subject to adjustments based on the Company's leverage ratio and optional prepayments of term loans and certain other indebtedness. All of the indebtedness under the Term B Loan is and will be guaranteed by the Company's existing and future material domestic subsidiaries and is and will be secured by substantially all of the assets of the Company and such guarantors. The Term B Loan contains customary negative covenants, and also contains a financial maintenance covenant which requires the Company to maintain a net leverage ratio not exceeding, through the fiscal quarter ending September 30, 2016, 5.25 to 1.00; through the fiscal quarter ending September 30, 2017, 5.00 to 1.00; through the fiscal quarter ending September 30, 2018, 4.75 to 1.00; and thereafter, 4.50 to 1.00. At June 30, 2016, the Company was in compliance with its financial covenants as described in the Term B Loan. Debt issuance costs of approximately $3.2 million were incurred in connection with the Term B Loan, along with the original issue discount of $4.0 million. Both the debt issuance costs and the original issue discount will be amortized into interest expense over the life of the Term B Loan. The Company recognized approximately $0.3 million and $0.6 million of amortization of debt issuance costs and original issue discount during the the three and six months ended June 30, 2016, respectively, which is included in the accompanying condensed consolidated statements of income. There was no amortization of debt issuance costs and original issue discount for the three and six months ended June 30, 2015. As of June 30, 2016, the Company had an aggregate principal amount of $190.0 million outstanding under the Term B Loan bearing interest at 7.0%, and had $5.8 million of unamortized debt issuance costs and original issue discount, all of which are recorded as a reduction of the debt balance on the Company's condensed consolidated balance sheets. The Company's Term B Loan traded at approximately 99.3% and 99.0% of par value as of June 30, 2016 and December 31, 2015, respectively. The valuation of the Term B Loan was determined based on Level 2 inputs under the fair value hierarchy. Bank facilities, capital leases and other long-term debt As of June 30, 2016, the Company's Australian subsidiary was party to a revolving debt facility with a borrowing capacity of approximately $11.2 million, subject to interest at a bank-specified rate plus 1.9% and secured by substantially all the assets of the subsidiary. No amounts were outstanding under this agreement as of June 30, 2016 and December 31, 2015. In July 2016, the subsidiary amended the revolving debt facility to lower the borrowing capacity to approximately $3.7 million, which will mature on September 30, 2016. Other long-term debt consists primarily of a bank credit line that provides liquidity for supplier payments for our Netherlands subsidiary which was entered into during the first quarter of 2016. The line provides total credit of $20.0 million. The total balance outstanding as of June 30, 2016 was $2.4 million, which is included in current maturities, long-term debt on the Company's condensed consolidated balance sheets. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments Foreign Currency Exchange Rate Risk As of June 30, 2016, the Company was party to forward contracts to hedge changes in foreign currency exchange rates with notional amounts of approximately $22.3 million. The Company uses foreign currency forward contracts to mitigate the risk associated with fluctuations in currency rates impacting cash flows related to certain payments for contract manufacturing in its lower-cost manufacturing facilities. The foreign currency forward contracts hedge currency exposure between the Mexican peso and the U.S. dollar, the Thai baht and the Australian dollar and the U.S. dollar and the Australian dollar and mature at specified monthly settlement dates through June 2017. At inception, the Company designated the foreign currency forward contracts as cash flow hedges. Upon purchase of certain inventories, the Company de-designates the foreign currency forward contract. Financial Statement Presentation As of June 30, 2016 and December 31, 2015, the fair value carrying amount of the Company's derivative instruments were recorded as follows:
The following tables summarize the loss recognized in accumulated other comprehensive income ("AOCI"), the amounts reclassified from AOCI into earnings and the amounts recognized directly into earnings as of and for the three and six months ended June 30, 2016 and 2015:
Over the next 12 months, the Company expects to reclassify approximately $0.4 million of pre-tax deferred losses from AOCI to cost of sales as the inventory purchases are settled. De-designated Derivatives The gain or loss resulting from the change in fair value on de-designated forward contracts is reported within cost of sales on the Company's condensed consolidated statements of income. The gains on de-designated derivatives amounted to $0.2 million and $0.1 million for the three and six months ended June 30, 2016, respectively. There were no gains or losses on de-designated derivatives during the three and six months ended June 30, 2015. Fair Value Measurements The fair value of the Company's derivatives are estimated using an income approach based on valuation techniques to convert future amounts to a single, discounted amount. Estimates of the fair value of the Company's foreign currency forward contracts use observable inputs such as forward currency exchange rates. Fair value measurements and the fair value hierarchy level for the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 are shown below.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information In March 2016, the Company realigned its executive management structure and, as a result, the information used by our chief operating decision maker ("CODM") to assess performance and allocate resources changed. Our Brazilian operations, which had previously been included in the Cequent Americas segment, is now managed as part of our former Cequent APEA segment, which has been renamed Horizon International. The remaining businesses within our former Cequent Americas segment have been renamed as Horizon North America. We believe reporting our results in this manner will provide better visibility and understanding into our business and better reflect our operational structure. We have recast prior period amounts to conform to the way we currently manage and monitor segment performance under the new segments. Horizon North America - A market leader in the design, manufacture and distribution of a wide variety of high-quality, custom engineered towing, trailering and cargo management products and related accessories. These products are designed to support OEMs, original equipment suppliers, aftermarket and retail customers in the agricultural, automotive, construction, industrial, marine, military, recreational vehicle, trailer and utility end markets. Products include brake controllers, cargo management, heavy-duty towing products, jacks and couplers, protection/securing systems, trailer structural and electrical components, tow bars, vehicle roof racks, vehicle trailer hitches and additional accessories. Horizon International - With a product offering similar to Horizon North America, Horizon International focuses its sales and manufacturing efforts in the Asia Pacific, Europe, Africa and Latin America regions of the world. Segment activity is as follows:
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Equity Awards |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Awards | Equity Awards Description of the Plan Prior to the spin-off, certain employees of Horizon participated in the following TriMas equity incentive plans: the 2011 TriMas Corporation Omnibus Incentive Compensation Plan, the TriMas Corporation 2006 Long Term Equity Incentive Plan and the TriMas Corporation 2002 Long Term Equity Incentive Plan (collectively, the "TriMas Plans") and were eligible to receive TriMas stock-based awards including stock options, restricted share awards and performance-based restricted share units. Effective June 30, 2015, Horizon employees and non-employee directors began participating in the Horizon Global Corporation 2015 Equity and Incentive Compensation Plan (as amended and restated, the "Horizon 2015 Plan"). The Horizon 2015 Plan authorizes the Compensation Committee of the Horizon Board of Directors to grant stock options (including "incentive stock options" as defined in Section 422 of the U.S. Internal Revenue Code), restricted shares, restricted stock units, performance shares, performance units, cash incentive awards, and certain other awards based on or related to our common stock to Horizon employees and non-employee directors. No more than 2.0 million Horizon common shares may be delivered under the Horizon 2015 Plan, with no more than 0.5 million "replacement awards" to former holders of TriMas equity awards under the TriMas Plans. Stock Options On March 1, 2016, the Company granted 137,372 stock options to certain key employees, including named executive officers. These stock options have a term of ten years and vest ratably on (i) March 1, 2017, (ii) March 1, 2018 and (iii) March 1, 2019. The following table provides the significant assumptions used to calculate the grant date fair market value of options granted using the Black-Scholes option pricing method:
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The expected term was determined using the simplified method as described in Staff Accounting Bulletin Topic 14: "Share-Based Payment" because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. In the absence of adequate stock price history of Horizon common stock, the expected volatility is based on the historical volatility of a selected group of peer companies' stock. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following table summarizes Horizon stock option activity from December 31, 2015 to June 30, 2016:
As of June 30, 2016, there was $0.8 million in unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 2.2 years. There was no unrecognized compensation cost related to stock options as of June 30, 2015. The Company recognized approximately $0.2 million of stock-based compensation expense related to stock options during the three months ended June 30, 2016, and approximately $0.4 million during the six months ended June 30, 2016. The Company recognized no compensation expense for the three or six months ended June 30, 2015. Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. Restricted Shares In the first six months of 2016, the Company granted an aggregate of 287,802 restricted stock units and performance stock units to certain key employees and non-employee directors. The total grants consisted of the following:
The performance criteria for the market-based performance stock units is based on the Company's total shareholder return ("TSR") relative to the TSR of the common stock of a pre-defined industry peer group, measured over a period beginning January 1, 2016 and ending December 31, 2018. TSR is calculated as the Company's average closing stock price for the 20-trading days at the end of the performance period plus Company dividends, divided by the Company's average closing stock price for the 20-trading days prior to the start of the performance period. Depending on the performance achieved, the amount of shares earned can vary from 0% of the target award to a maximum of 200% of the target award. The Company estimated the grant-date fair value of the awards subject to a market condition using a Monte Carlo simulation model, using the following weighted-average assumptions: risk-free interest rate of 0.96% and annualized volatility of 34.3%. Due to the lack of adequate stock price history of Horizon common stock, the expected volatility is based on the historical volatility of the common stock of the peer group. The grant date fair value of the performance stock units was $16.07. The grant date fair value of restricted shares is expensed over the vesting period. Restricted share fair values are based on the closing trading price of the Company's common stock on the date of grant. Changes in the number of restricted shares outstanding for the period ended June 30, 2016 were as follows:
As of June 30, 2016, there was $4.4 million in unrecognized compensation costs related to unvested restricted shares that is expected to be recognized over a weighted-average period of 2.4 years. The Company recognized approximately $0.7 million and $0.3 million of stock-based compensation expense related to restricted shares during the three months ended June 30, 2016 and 2015, respectively, and $1.4 million and $1.3 million for the six months ended June 30, 2016 and 2015, respectively. Stock-based compensation expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income. |
Earnings per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share On June 30, 2015, approximately 18.1 million common shares of Horizon Global were distributed to TriMas shareholders in conjunction with the spin-off. For comparative purposes, and to provide a more meaningful calculation for weighted average shares, this amount was assumed to be outstanding as of the beginning of the three and six months ended June 30, 2015 presented below in the calculation of basic weighted average shares. Diluted earnings per share are calculated to give effect to stock options and restricted shares outstanding during each period. The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2016 and 2015:
The effect of certain common stock equivalents were excluded from the computation of weighted average diluted shares outstanding for the three and six months ended June 30, 2016 and 2015, as inclusion would have resulted in antidilution. A summary of these antidilutive common stock equivalents is provided in the table below:
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Employee Benefit Plans |
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Jun. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company's domestic salaried and hourly employees participate in a defined contribution profit sharing plan sponsored by Horizon. The plan contains both contributory and noncontributory profit sharing arrangements, as defined. Aggregate charges included in the accompanying condensed consolidated statements of income under this plan were approximately $0.4 million for each of the three months ended June 30, 2016 and 2015 and $0.8 million for each of the six months ended June 30, 2016 and 2015 . |
Other Comprehensive Income |
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Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income | Other Comprehensive Income Changes in AOCI by component, net of tax, for the six months ended June 30, 2016 are summarized as follows:
__________________________ (a) Derivative instruments, net of income tax benefit of $30.0 thousand. See Note 8, "Derivative Instruments," for further details. Changes in AOCI by component, net of tax, for the six months ended June 30, 2015 are summarized as follows:
__________________________ (a) Derivative instruments, net of income tax expense of $80.0 thousand. See Note 8, "Derivative Instruments," for further details. (b) Derivative instruments, net of income tax expense of $20.0 thousand. See Note 8, "Derivative Instruments," for further details. |
Income Taxes |
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Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At the end of each interim reporting period, the Company makes an estimate of the annual effective income tax rate. Tax items included in the annual effective income tax rate are pro-rated for the full year and tax items discrete to a specific quarter are included in the effective income tax rate for that quarter. The estimate used in providing for income taxes on a year-to-date basis may change in subsequent interim periods. The Company has experienced pre-tax losses in the U.S. As of June 30, 2016, we believe that it is more likely than not that the U.S. deferred tax assets will be realized. If the U.S. continues to experience losses through 2016, management may determine a valuation allowance against the U.S. deferred tax assets is necessary, which would result in additional tax expense. The effective income tax rate was (15.8)% and (2.8)% for the three and six months ended June 30, 2016, which was driven by the recognition of the income tax benefits associated with a release of certain unrecognized tax positions. For the three and six months ended June 30, 2015, the effective income tax rates were 51.3% and 46.4% , respectively. The higher effective income tax rate in 2015 was driven by tax charges of approximately $2.9 million related to certain spin-off related structuring steps. During the six months ended June 30, 2016 and 2015, cash paid for domestic taxes was approximately $1.4 million and $2.0 million, respectively. For the six months ended June 30, 2015, domestic taxes were paid by our former parent company. During both the six months ended June 30, 2016 and 2015, the Company paid cash for foreign taxes of $1.8 million. |
Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Changes in the carrying amount of goodwill for the six months ended June 30, 2016 are summarized as follows:
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Schedule of Intangible Assets (excluding Goodwill) by Major Class | The gross carrying amounts and accumulated amortization of the Company's other intangibles as of June 30, 2016 and December 31, 2015 are summarized below. The Company amortizes these assets over periods ranging from three to 25 years, except for impaired trade names which will be amortized over the remainder of the year.
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Schedule of Finite-Lived Intangible Assets, Amortization Expense | Amortization expense related to intangible assets as included in the accompanying condensed consolidated statements of income is summarized as follows:
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | Inventories consist of the following components:
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Property and Equipment, Net (Tables) |
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Property and Equipment | Property and equipment consists of the following components:
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Depreciation Expense | Depreciation expense included in the accompanying condensed consolidated statements of income is as follows:
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Long-term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The Company's long-term debt consists of the following:
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Derivative Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | As of June 30, 2016 and December 31, 2015, the fair value carrying amount of the Company's derivative instruments were recorded as follows:
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables summarize the loss recognized in accumulated other comprehensive income ("AOCI"), the amounts reclassified from AOCI into earnings and the amounts recognized directly into earnings as of and for the three and six months ended June 30, 2016 and 2015:
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Fair Value Measurements, Recurring and Nonrecurring | Fair value measurements and the fair value hierarchy level for the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 are shown below.
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Segment activity is as follows:
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Equity Awards (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table provides the significant assumptions used to calculate the grant date fair market value of options granted using the Black-Scholes option pricing method:
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Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes Horizon stock option activity from December 31, 2015 to June 30, 2016:
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Schedule of Share-based Compensation, Restricted Stock Units Award Activity | Changes in the number of restricted shares outstanding for the period ended June 30, 2016 were as follows:
|
Earnings per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2016 and 2015:
|
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | A summary of these antidilutive common stock equivalents is provided in the table below:
|
Other Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 |
Jun. 30, 2015 |
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Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in AOCI by component, net of tax, for the six months ended June 30, 2016 are summarized as follows:
__________________________ (a) Derivative instruments, net of income tax benefit of $30.0 thousand. See Note 8, "Derivative Instruments," for further details. |
Changes in AOCI by component, net of tax, for the six months ended June 30, 2015 are summarized as follows:
__________________________ (a) Derivative instruments, net of income tax expense of $80.0 thousand. See Note 8, "Derivative Instruments," for further details. (b) Derivative instruments, net of income tax expense of $20.0 thousand. See Note 8, "Derivative Instruments," for further details. |
Basis of Presentation - Cequent Spinoff (Details) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 25, 2015 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Percent of outstanding shares distributed as of spinoff | 1 | |||
Number of TriMas shares per one Horizon share in spinoff | 2.5 | |||
Cash dividend paid to former parent | $ 214,500 | $ 0 | $ 214,500 |
Goodwill and Other Intangible Assets Goodwill Rollforward (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Balance, beginning | $ 4,410 |
Foreign currency translation and other | 1,030 |
Balance, ending | 5,440 |
Cequent Americas [Member] | |
Goodwill [Roll Forward] | |
Balance, beginning | 0 |
Foreign currency translation and other | 0 |
Balance, ending | 0 |
Cequent Asia Pacific Europe Africa [Member] | |
Goodwill [Roll Forward] | |
Balance, beginning | 4,410 |
Foreign currency translation and other | 1,030 |
Balance, ending | $ 5,440 |
Goodwill and Other Intangible Assets Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
May 31, 2016 |
Dec. 31, 2015 |
|
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets, gross carrying amount | $ 153,910,000 | $ 153,910,000 | $ 152,410,000 | |||
Impairment of intangible assets | 2,240,000 | $ 0 | 2,240,000 | $ 0 | ||
Finite-lived intangible assets, accumulated amortization | 122,910,000 | 122,910,000 | 119,120,000 | |||
Trademarks and Trade Names [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets, gross carrying amount | 150,000 | 150,000 | $ 2,400,000 | 0 | ||
Impairment of intangible assets | 2,200,000 | |||||
Finite-Lived Intangible Assets, Net | 200,000 | 200,000 | ||||
Finite-lived intangible assets, accumulated amortization | $ 40,000 | $ 40,000 | $ 0 |
Goodwill and Other Intangible Assets Schedule of Finite-Lived Intangible Assets, Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Amortization of Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 1,850 | $ 1,850 | $ 3,640 | $ 3,720 |
Cost of Sales [Member] | Technology and Other [Member] | ||||
Amortization of Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 40 | 60 | 70 | 120 |
Selling, General and Administrative Expenses [Member] | Customer Relationships [Member] | ||||
Amortization of Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 1,810 | $ 1,790 | $ 3,570 | $ 3,600 |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 72,400 | $ 83,870 |
Work in process | 7,240 | 7,080 |
Raw materials | 27,960 | 28,520 |
Total inventories | $ 107,600 | $ 119,470 |
Property and Equipment, Net - Property and Equipment Table (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 107,240 | $ 104,190 |
Less: Accumulated depreciation | 60,810 | 58,300 |
Property and equipment, net | 46,430 | 45,890 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,740 | 8,330 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 99,500 | $ 95,860 |
Property and Equipment, Net - Depreciation Expense Table (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Depreciation Expense [Line Items] | ||||
Depreciation expense | $ 2,410 | $ 2,540 | $ 4,990 | $ 5,080 |
Cost of Sales [Member] | ||||
Depreciation Expense [Line Items] | ||||
Depreciation expense | 2,070 | 2,110 | 4,250 | 4,260 |
Selling, General and Administrative Expenses [Member] | ||||
Depreciation Expense [Line Items] | ||||
Depreciation expense | $ 340 | $ 430 | $ 740 | $ 820 |
Long-term Debt - Debt Table (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term Debt | $ 196,770 | $ 188,740 |
Current maturities, debt | 12,490 | 10,130 |
Long-term debt | 184,280 | 178,610 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 10,000 | 0 |
Term B Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 184,200 | 188,520 |
Bank facilities, capital leases and other long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 2,570 | $ 220 |
Long-term Debt - Non-U.S. Bank Debt (Details) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2016 |
Jul. 04, 2016 |
Dec. 31, 2015 |
|
Australia Facility [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 11,200,000 | ||
Debt Instrument, Maturity Date | Sep. 30, 2016 | ||
Dutch Credit Facility [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | ||
Bank-Specified Rate [Member] | Australia Facility [Member] | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.90% | ||
Australia Facility [Member] | |||
Short-term Debt [Line Items] | |||
Foreign Debt, Amount Outstanding | $ 0 | $ 0 | |
Dutch Credit Facility [Member] | |||
Short-term Debt [Line Items] | |||
Foreign Debt, Amount Outstanding | $ 2,400,000.0 | ||
Subsequent Event [Member] | Australia Facility [Member] | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,700,000 |
Derivative Instruments - Derivative Narrative (Details) - Foreign Exchange Contract [Member] - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative [Line Items] | ||||
Gain (Loss) on derivative | $ 200,000 | $ 0 | $ 100,000 | $ 0 |
Cash Flow Hedging [Member] | March 2016 Maturity [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 22,300,000 | $ 22,300,000 |
Derivative Instruments - Designated as hedging, Financial Position (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Total derivatives | $ (460) | $ (960) |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | (330) | (800) |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivatives | (130) | (160) |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | (330) | (800) |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | (130) | (190) |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 0 | $ 30 |
Derivative Instruments - Designated as hedging, Financial Performance (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of Loss Recognized in AOCI on Derivatives (Effective Portion, net of tax) | $ (310) | $ (250) | $ (310) | $ (250) | $ (710) | $ (70) |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of Loss Recognized in AOCI on Derivatives (Effective Portion, net of tax) | (310) | (310) | $ (710) | |||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of Loss Reclassified from AOCI into Earnings | $ (360) | $ (260) | $ (760) | $ (450) |
Derivative Instruments - Designated as hedging, Financial Performance Narrative (Details) - Designated as Hedging Instrument [Member] $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gain (Loss) Reclassification from AOCI into Earnings, Estimate of Time to Transfer | 12 months |
Cost of Sales [Member] | Foreign Exchange Contract [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of gain (loss) expected to be reclassified from AOCI into Earnings | $ (0.4) |
Derivative Instruments - Fair Value Measurements (Details) - Foreign Exchange Contract [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ (460) | $ (960) |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | (460) | (960) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 0 | $ 0 |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Segment Reporting Information [Line Items] | ||||
Net sales | $ 167,760 | $ 158,540 | $ 313,870 | $ 300,900 |
Operating Profit (Loss) | 11,120 | 5,360 | 18,930 | 9,070 |
Horizon North America Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 126,860 | 116,710 | 235,590 | 220,290 |
Operating Profit (Loss) | 13,470 | 8,240 | 23,580 | 14,140 |
Horizon International Reportable Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 40,900 | 41,830 | 78,280 | 80,610 |
Operating Profit (Loss) | 2,160 | 1,210 | 4,610 | 3,480 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit (Loss) | $ (4,510) | $ (4,090) | $ (9,260) | $ (8,550) |
Equity Awards - Fair Value Assumptions (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Mar. 01, 2016 |
Jun. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price (in usd per share) | $ 10.08 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value per option (in usd per share) | $ 3.93 | |
Exercise price (in usd per share) | $ 10.08 | |
Risk-free interest rate (as a percent) | 1.39% | |
Dividend yield (as a percent) | 0.00% | |
Expected stock volatility (as a percent) | 40.59% | |
Expected life (years) | 5 years 6 months |
Equity Awards - Restricted Shares Activity Table (Details) - Restricted Shares [Member] |
6 Months Ended |
---|---|
Jun. 30, 2016
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 372,219 |
Granted (in shares) | shares | 287,802 |
Vested (in shares) | shares | (129,647) |
Canceled, forfeited (in shares) | shares | (4,465) |
Ending balance (in shares) | shares | 525,909 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning balance (in usd per share) | $ / shares | $ 13.11 |
Granted (in usd per share) | $ / shares | 11.51 |
Vested (in usd per share) | $ / shares | 14.49 |
Canceled, forfeited (in usd per share) | $ / shares | 10.63 |
Ending balance (in usd per share) | $ / shares | $ 11.91 |
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Earnings Per Share [Abstract] | |||||
Common Stock, Issued Shares | 18,192,839 | 18,062,027 | 18,192,839 | 18,062,027 | 18,131,865 |
Net income for basic and diluted earnings per share | $ 7,330 | $ 2,200 | $ 9,520 | $ 3,680 | |
Weighted average shares outstanding, basic (in shares) | 18,162,451 | 18,062,027 | 18,130,081 | 18,062,027 | |
Dilutive effect of stock-based awards (in shares) | 156,617 | 72,448 | 130,165 | 72,448 | |
Weighted average shares outstanding, diluted (in shares) | 18,319,068 | 18,134,475 | 18,260,246 | 18,134,475 | |
Basic earnings per share (in usd per share) | $ 0.40 | $ 0.12 | $ 0.53 | $ 0.20 | |
Diluted earnings per share (in usd per share) | $ 0.40 | $ 0.12 | $ 0.52 | $ 0.20 |
Employee Benefit Plans - Employee Benefit Plans Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||
Defined Contribution Plan, Cost Recognized | $ 0.4 | $ 0.4 | $ 0.8 | $ 0.8 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Schedule of taxes paid by jurisdiction [Line Items] | ||||
Effective Income Tax Rate (as a percent) | (15.80%) | 51.30% | (2.80%) | 46.40% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Amount | $ 2.9 | |||
Domestic Tax Authority [Member] | ||||
Schedule of taxes paid by jurisdiction [Line Items] | ||||
Income Taxes Paid | $ 1.4 | 2.0 | ||
Foreign Tax Authority [Member] | ||||
Schedule of taxes paid by jurisdiction [Line Items] | ||||
Income Taxes Paid | $ 1.8 | $ 1.8 |
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