FOR IMMEDIATE RELEASE Core Molding Technologies Reports Fiscal 2024 Second Quarter Results COLUMBUS, OH, August 6, 2024 – Core Molding Technologies, Inc. (NYSE American: CMT) ("Core Molding", "Core" or the "Company"), a leading engineered materials company specializing in molded structural products, principally in building products, industrial and utilities, medium and heavy-duty truck and powersports industries across the United States, Canada and Mexico today reports financial and operating results for th ...

By Phone: About Core Molding Technologies, Inc. Investor Relations Contact: Three Part Advisors, LLC Sandy Martin or Steven Hooser 214-616-2207 COLUMBUS, Ohio, July 17, 2024 (GLOBE NEWSWIRE) -- Core Molding Technologies, Inc. (NYSE:CMT) ("Core Molding", "Core" or the "Company"), a leading engineered materials company specializing in molded structural products, principally in building products, utilities, transportation and powersports industries across North America, today announces that it will release its ...

COLUMBUS, Ohio, July 17, 2024 (GLOBE NEWSWIRE) -- Core Molding Technologies, Inc. (NYSE American: CMT) ("Core Molding", "Core" or the "Company"), a leading engineered materials company specializing in molded structural products, principally in building products, utilities, transportation and powersports industries across North America, today announces that it will release its second quarter fiscal year 2024 results on Tuesday, August 6, 2024, before the market opens. In conjunction with the release, the Com ...

One company to watch right now is Core Molding Technologies (CMT) . CMT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sal ...

COLUMBUS, Ohio, June 03, 2024 (GLOBE NEWSWIRE) -- Core Molding Technologies, Inc. (NYSE:CMT) ("Core Molding," "Core" or the "Company"), a leading engineered materials company specializing in molded structural products, principally in building products, industrial and utilities, medium and heavy-duty truck and powersports industries across the United States, Canada and Mexico, today announced that David Duvall, President and CEO, and John Zimmer, EVP and CFO, will participate in the 14th Annual East Coast ID ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on k ...

Core Investment Strategy - Momentum investing contrasts with the traditional "buy low and sell high" approach, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [1] Investment Opportunities - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [2] - Core Molding Technologies (CMT) is highlighted as a strong candidate for investment due to a recent price increase of 1.8% over the past four weeks, indicating growing investor interest [3] Performance Metrics - CMT has demonstrated positive returns over a longer timeframe, gaining 3.4% over the past 12 weeks, and has a beta of 1.66, suggesting it moves 66% more than the market [4] - CMT's Momentum Score of B indicates a favorable time to invest, with a strong probability of success [5] Earnings and Valuation - An upward trend in earnings estimate revisions has contributed to CMT earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [6] - CMT is trading at a Price-to-Sales ratio of 0.52, indicating it is relatively undervalued, as investors pay only 52 cents for each dollar of sales [6] Additional Investment Options - Besides CMT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, providing additional avenues for stock selection [8]

Investors should also recognize that CMT has a P/B ratio of 1.28. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.24. Over the past year, CMT's P/B has been as high as 1.99 and as low as 1.07, with a median of 1.29. Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because reven ...

Part I — Financial Information Presents the unaudited consolidated financial statements and related disclosures for the company [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Core Molding Technologies' unaudited consolidated financial statements for Q1 2024, including operations, balance sheets, cash flows, and detailed notes [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Details the company's revenues, costs, and net income for the three months ended March 31 **Consolidated Statements of Operations (Three Months Ended March 31):** | Metric | 2024 (in thousands) | 2023 (in thousands) | | :---------------------------------- | :------------------ | :------------------ | | Net Sales | $78,145 | $99,507 | | Cost of Sales | $64,840 | $81,764 | | Gross Margin | $13,305 | $17,743 | | Selling, General and Administrative Expense | $8,573 | $9,668 | | Operating Income | $4,732 | $8,075 | | Income Before Taxes | $4,788 | $7,771 | | Income Tax Expense | $1,029 | $1,919 | | Net Income | $3,759 | $5,852 | | Basic Net Income Per Common Share | $0.43 | $0.69 | | Diluted Net Income Per Common Share | $0.43 | $0.66 | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Presents net income and other comprehensive income components, such as foreign currency and interest rate hedging, for the period **Consolidated Statements of Comprehensive Income (Three Months Ended March 31):** | Metric | 2024 (in thousands) | 2023 (in thousands) | | :---------------------------------- | :------------------ | :------------------ | | Net Income | $3,759 | $5,852 | | Other Comprehensive Income: | | | | Foreign currency hedging derivatives (unrealized gain (loss), net of tax) | $(382) | $383 | | Interest rate swaps (unrealized gain (loss), net of tax) | $215 | $(242) | | Post-retirement benefit plan adjustments (net of tax) | $(127) | $(93) | | Comprehensive Income | $3,465 | $5,900 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Provides a snapshot of the company's assets, liabilities, and equity as of March 31, 2024, and December 31, 2023 **Consolidated Balance Sheets (as of):** | Asset/Liability | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :---------------------------------- | :---------------------------- | :----------------------------- | | **Assets:** | | | | Cash and cash equivalents | $26,618 | $24,104 | | Total current assets | $103,237 | $102,879 | | Property, plant and equipment, net | $80,398 | $81,185 | | Goodwill | $17,376 | $17,376 | | Intangibles, net | $5,617 | $6,017 | | Total Assets | $212,267 | $213,377 | | **Liabilities & Equity:** | | | | Total current liabilities | $42,223 | $46,186 | | Long-term debt | $21,061 | $21,519 | | Total Liabilities | $69,452 | $74,424 | | Total Stockholders' Equity | $142,815 | $138,953 | | Total Liabilities and Stockholders' Equity | $212,267 | $213,377 | [Consolidated Statement of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statement%20of%20Stockholders'%20Equity) Outlines changes in stockholders' equity, including net income and share-based compensation, for the three months ended March 31, 2024 - Total Stockholders' Equity increased from **$138,953 thousand** at December 31, 2023, to **$142,815 thousand** at March 31, 2024, driven by net income of **$3,759 thousand** and share-based compensation of **$739 thousand**, partially offset by changes in AOCI and treasury stock purchases[236](index=236&type=chunk) **Changes in Stockholders' Equity (Three Months Ended March 31, 2024):** | Item | Amount (in thousands) | | :---------------------------------- | :-------------------- | | Balance at December 31, 2023 | $138,953 | | Net income | $3,759 | | Change in post-retirement benefits, net of tax | $(127) | | Change in foreign currency hedge, net of tax | $(382) | | Change in interest rate swaps, net of tax | $215 | | Restricted stock vested | $1 | | Purchase of treasury stock | $(343) | | Share-based compensation | $739 | | Balance at March 31, 2024 | $142,815 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities for the three months ended March 31 **Consolidated Statements of Cash Flows (Three Months Ended March 31):** | Activity | 2024 (in thousands) | 2023 (in thousands) | | :---------------------------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $5,072 | $4,647 | | Net cash used in investing activities | $(1,893) | $(2,127) | | Net cash used in financing activities | $(665) | $(2,211) | | Net change in cash and cash equivalents | $2,514 | $309 | | Cash and cash equivalents at end of period | $26,618 | $4,492 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the consolidated financial statements [1. Basis of Presentation](index=9&type=section&id=1.%20BASIS%20OF%20PRESENTATION) The unaudited consolidated financial statements are prepared in accordance with Form 10-Q and GAAP for interim reporting, requiring management estimates and assumptions - Financial statements are unaudited and prepared under GAAP for interim reporting, relying on management's estimates and judgments[238](index=238&type=chunk)[239](index=239&type=chunk) [2. Critical Accounting Policies and Estimates](index=9&type=section&id=2.%20CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Details critical accounting policies and estimates, including revenue recognition, goodwill, and post-retirement benefits, which involve significant management judgment [Revenue Recognition](index=9&type=section&id=Revenue%20Recognition) Explains the company's policies for recognizing revenue from product sales and tooling contracts - Product revenue is generally recognized when products are shipped or when the customer takes control at the production facility[11](index=11&type=chunk) - Tooling revenue is recognized either at a point in time (upon customer acceptance) or over time (based on cost-to-cost measure of progress) depending on the enforceability of payment rights[214](index=214&type=chunk)[38](index=38&type=chunk) [Contract Assets/Liabilities](index=10&type=section&id=Contract%20Assets%2FLiabilities) Details the company's contract assets and liabilities, including revenue recognized from contract liabilities **Contract Assets/Liabilities (in thousands):** | Item | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | Contract Assets | $80 | $77 | | Revenue recognized from contract liabilities (Q1) | $1,841 | N/A | [Goodwill](index=10&type=section&id=Goodwill) Describes the company's goodwill accounting policy and impairment assessment results - Goodwill is reviewed for impairment using qualitative and quantitative assessments; no impairment charges were recorded for the three months ended March 31, 2024, or March 31, 2023[14](index=14&type=chunk)[178](index=178&type=chunk) [Accounts Receivable Allowances](index=10&type=section&id=Accounts%20Receivable%20Allowances) Outlines allowances for credit losses and estimated chargebacks on accounts receivable **Accounts Receivable Allowances (in thousands):** | Item | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | Allowance for credit losses | $90 | $0 | | Allowance for estimated chargebacks | $123 | $138 | [Long-Lived Assets](index=10&type=section&id=Long-Lived%20Assets) Explains the evaluation of long-lived asset recoverability and impairment charges - The recoverability of long-lived assets is evaluated based on undiscounted expected future cash flows; no impairment charges were recorded for the three months ended March 31, 2024, or March 31, 2023[40](index=40&type=chunk) [Self-Insurance](index=10&type=section&id=Self-Insurance) Details estimated liabilities for self-insured medical, dental, vision, and worker's compensation claims **Estimated Self-Insured Liabilities (in thousands):** | Item | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | Self-insured medical, dental, vision, and worker's compensation claims | $997 | $988 | [Post-Retirement Benefits](index=11&type=section&id=Post-Retirement%20Benefits) Presents the liability for post-retirement healthcare benefits **Post-Retirement Healthcare Benefits Liability (in thousands):** | Item | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | Liability for post-retirement healthcare benefits | $3,008 | $3,116 | [3. Net Income Per Common Share](index=11&type=section&id=3.%20NET%20INCOME%20PER%20COMMON%20SHARE) Provides the computation of basic and diluted net income per common share, reflecting weighted average shares outstanding **Net Income Per Common Share (Three Months Ended March 31):** | Metric | 2024 | 2023 | | :---------------------------------- | :--- | :--- | | Basic Net Income Per Common Share | $0.43 | $0.69 | | Diluted Net Income Per Common Share | $0.43 | $0.66 | | Weighted average common shares outstanding – basic | 8,666,000 | 8,418,000 | | Weighted average common and potentially issuable common shares outstanding – diluted | 8,832,000 | 8,752,000 | [4. Major Customers](index=12&type=section&id=4.%20MAJOR%20CUSTOMERS) Identifies major customers contributing over ten percent of total sales and provides a breakdown of sales revenue - Major customers for the three months ended March 31, 2024, included BRP, Navistar, PACCAR, UFP, Volvo, and Yamaha, with sales to these customers representing a significant portion of total sales[44](index=44&type=chunk) **Sales Revenue by Major Customer (Three Months Ended March 31, in thousands):** | Customer | 2024 | 2023 | | :---------------------------------- | :----- | :----- | | Total BRP sales | $7,671 | $12,725 | | Total Navistar sales | $14,590 | $19,447 | | Total PACCAR sales | $10,195 | $10,267 | | Total UFP sales | $6,276 | $10,774 | | Total Volvo sales | $12,720 | $15,654 | | Total Yamaha sales | $8,582 | $7,888 | | Total product sales | $75,831 | $98,337 | | Total tooling sales | $2,314 | $1,170 | | Total sales | $78,145 | $99,507 | [5. Inventory](index=13&type=section&id=5.%20INVENTORY) Details inventory composition, valuation using FIFO, and provisions for excess and obsolete inventory **Inventories, net (as of, in thousands):** | Component | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | Raw materials | $15,089 | $13,068 | | Work in process | $2,817 | $2,649 | | Finished goods | $5,955 | $6,346 | | Total | $23,861 | $22,063 | | Allowance for slow moving and obsolete inventory | $730 | $671 | [6. Leases](index=13&type=section&id=6.%20LEASES) Describes operating leases for buildings and warehouses, including lease terms, liabilities, and expense components **Operating Lease Information (as of, in thousands):** | Item | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | Operating lease right-of-use assets | $3,302 | $3,802 | | Current operating lease liabilities | $1,785 | $1,981 | | Noncurrent operating lease liabilities | $1,529 | $1,828 | | Total operating lease liabilities | $3,314 | $3,809 | **Components of Lease Expense (Three Months Ended March 31, in thousands):** | Item | 2024 | 2023 | | :---------------------------------- | :--- | :--- | | Operating lease cost | $538 | $427 | | Short-term lease cost | $458 | $470 | | Total net lease cost | $996 | $897 | [7. Property, Plant & Equipment](index=14&type=section&id=7.%20PROPERTY,%20PLANT%20%26%20EQUIPMENT) Outlines property, plant, and equipment, including valuation, depreciation, and capital expenditure commitments **Property, Plant and Equipment, net (as of, in thousands):** | Item | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | Property, plant and equipment | $211,419 | $209,333 | | Accumulated depreciation | $(131,021) | $(128,148) | | Property, plant and equipment — net | $80,398 | $81,185 | | Depreciation expense (Q1) | $2,873 | $2,978 | | Purchase commitments for capital expenditures in progress | $2,939 | $1,100 | [8. Goodwill and Intangibles](index=14&type=section&id=8.%20GOODWILL%20AND%20INTANGIBLES) Provides details on goodwill and definite-lived intangible assets, including carrying amounts and amortization expenses **Goodwill Activity (Three Months Ended March 31, 2024, in thousands):** | Item | Amount | | :---------------------------------- | :----- | | Balance at December 31, 2023 | $17,376 | | Additions | $0 | | Impairment | $0 | | Balance at March 31, 2024 | $17,376 | **Definite-lived Intangible Assets (as of March 31, 2024, in thousands):** | Asset | Amortization Period | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | | :---------------------------------- | :------------------ | :-------------------- | :----------------------- | :------------------ | | Trade name | 25 Years | $250 | $(93) | $157 | | Trademarks | 10 Years | $1,610 | $(1,000) | $610 | | Non-competition agreement | 5 Years | $1,810 | $(1,810) | $0 | | Developed technology | 7 Years | $4,420 | $(3,920) | $500 | | Customer relationships | 10-12 Years | $9,330 | $(4,980) | $4,350 | | Total | | $17,420 | $(11,803) | $5,617 | | Aggregate intangible asset amortization expense (Q1) | | | | $400 | [9. Post-Retirement Benefits](index=15&type=section&id=9.%20POST-RETIREMENT%20BENEFITS) Details components of post-retirement benefit expenses for pension and health/life insurance plans, and expected future payments **Components of Post-Retirement Benefit Plans Expense (Three Months Ended March 31, in thousands):** | Item | 2024 | 2023 | | :---------------------------------- | :--- | :--- | | Multi-employer pension plan | $214 | $238 | | Defined contribution pension plan | $506 | $528 | | Total pension expense | $720 | $766 | | Net periodic health and life insurance benefit credit | $(138) | $(52) | | Total post-retirement benefits expense | $582 | $714 | - The company expects to make approximately **$1,803 thousand** in pension plan payments and **$167 thousand** in post-retirement healthcare and life insurance payments for the remainder of 2024[227](index=227&type=chunk) [10. Debt](index=15&type=section&id=10.%20DEBT) Provides an overview of the company's debt, focusing on the Huntington Credit Agreement and other financing arrangements **Debt (as of, in thousands):** | Item | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | Huntington term loans payable | $22,917 | $23,230 | | Leaf Capital term loan payable | $39 | $48 | | Total | $22,956 | $23,278 | | Less deferred loan costs | $(271) | $(291) | | Less current portion | $(1,624) | $(1,468) | | Long-term debt | $21,061 | $21,519 | [Huntington Credit Agreement](index=15&type=section&id=Huntington%20Credit%20Agreement) Describes the $75 million secured loan facility with Huntington National Bank, including its structure and covenants - The company has a **$75 million** secured loan facility with Huntington National Bank, comprising three **$25 million** commitments: a term loan, a CapEx loan, and a revolving loan[256](index=256&type=chunk) - The loans can be ABR Loans or SOFR Loans, with interest rates based on the company's leverage ratio[181](index=181&type=chunk)[257](index=257&type=chunk) - The company's obligations are secured by U.S. and Canadian assets, and 65% of Mexican subsidiary equity interests, and are unconditionally guaranteed by certain subsidiaries[259](index=259&type=chunk) - The company was in compliance with all financial covenants as of March 31, 2024[190](index=190&type=chunk) [Huntington Term Loan](index=17&type=section&id=Huntington%20Term%20Loan) Details the $25 million Huntington Term Loan, including its advance date, repayment schedule, and interest rate - A **$25 million** Huntington Term Loan was advanced on July 22, 2022, with monthly principal repayments and a final due date of July 22, 2027[264](index=264&type=chunk) - The interest rate for the Huntington Term Loan was **7.11%** as of March 31, 2024, and December 31, 2023[264](index=264&type=chunk) [Huntington Revolving Loan](index=17&type=section&id=Huntington%20Revolving%20Loan) Outlines the $25 million Huntington Revolving Loan commitment, its outstanding balance, and interest rate - A **$25 million** Huntington Revolving Loan commitment is available, with no outstanding balance as of March 31, 2024, and December 31, 2023[262](index=262&type=chunk) - The interest rate for the Huntington Revolving Loan was **7.11%** as of March 31, 2024, and December 31, 2023[191](index=191&type=chunk) [Huntington Capex Loan](index=17&type=section&id=Huntington%20Capex%20Loan) Describes the $25 million Huntington CapEx Loan for capital expenditures and its conversion to term loans - A **$25 million** Huntington Capex Loan is available to finance ongoing capital expenditure needs, with borrowings converting to new term loans annually starting February 2025[182](index=182&type=chunk)[261](index=261&type=chunk) [Interest Rate Swap Agreement](index=17&type=section&id=Interest%20Rate%20Swap%20Agreement) Explains the interest rate swap agreement hedging the Huntington Term Loan and its fair value - An interest rate swap agreement, effective July 22, 2022, through July 2027, hedges **$25 million** of the Huntington Term Loan, fixing the interest rate at **2.95%** in exchange for daily variable SOFR[265](index=265&type=chunk) - The effective interest rate paid on the Huntington Term Loan was **4.75%** as of March 31, 2024, and December 31, 2023[265](index=265&type=chunk) - The fair value of the interest rate swap was an asset of **$797 thousand** at March 31, 2024, and **$524 thousand** at December 31, 2023[265](index=265&type=chunk) [Leaf Capital Funding](index=17&type=section&id=Leaf%20Capital%20Funding) Details the finance agreement with Leaf Capital Funding for equipment, including its amount and interest rate - The company has a **$175 thousand** finance agreement with Leaf Capital Funding for equipment, with a fixed interest rate of **5.50%** and a 60-month term[173](index=173&type=chunk)[154](index=154&type=chunk) [11. Income Taxes](index=18&type=section&id=11.%20INCOME%20TAXES) Provides details on income tax expense, effective tax rates, deferred tax assets/liabilities, and tax examination periods **Income Tax Expense and Rate (Three Months Ended March 31):** | Metric | 2024 | 2023 | | :---------------------------------- | :--- | :--- | | Income Tax Expense | $1,029,000 | $1,919,000 | | Effective Tax Rate | 21.5% | 24.7% | - At March 31, 2024, the company had a net deferred tax asset of **$1,595,000** related to Mexico and deferred tax liabilities of **$1,182,000** (US) and **$43,000** (Canada)[46](index=46&type=chunk) - A valuation allowance of **$1,530,000** was recorded against the deferred tax asset related to local tax positions in the U.S. due to cumulative losses and uncertainty of realization[46](index=46&type=chunk) [12. Stock Based Compensation](index=18&type=section&id=12.%20STOCK%20BASED%20COMPENSATION) Outlines accounting for share-based payments, including the 2021 Equity Incentive Plan and details on restricted stock awards - Compensation cost for share-based payments is recognized over the employee's service period, measured at grant date fair value[64](index=64&type=chunk) - The 2021 Plan allows for grants of various stock awards up to **152,501** awards, replacing the 2006 Plan[184](index=184&type=chunk) [Restricted Stock](index=19&type=section&id=Restricted%20Stock) Details the status of restricted stock awards, including unvested balances and compensation expense **Restricted Stock Status (Three Months Ended March 31, 2024):** | Item | Number of Shares | Weighted Average Grant Fair Value | | :---------------------------------- | :--------------- | :-------------------------------- | | Unvested balance at December 31, 2023 | 373,583 | $12.81 | | Granted | 94,704 | $19.18 | | Vested | (61,508) | $15.98 | | Forfeited | — | — | | Unvested balance at March 31, 2024 | 406,779 | $14.31 | | Total unrecognized compensation expense (Mar 31, 2024) | | $4,113,000 | | Total compensation cost (Q1 2024) | | $711,000 | [Performance Restricted Stock Awards](index=19&type=section&id=Performance%20Restricted%20Stock%20Awards) Presents the status of performance restricted stock awards, including unvested balances and compensation expense **Performance Restricted Stock Awards Status (Three Months Ended March 31, 2024):** | Item | Number of Shares | Weighted Average Grant Fair Value | | :---------------------------------- | :--------------- | :-------------------------------- | | Unvested balance at December 31, 2023 | 11,737 | $15.98 | | Granted | 28,483 | $19.18 | | Vested | — | — | | Forfeited | — | — | | Unvested balance at March 31, 2024 | 40,220 | $18.24 | | Total unrecognized compensation expense (Mar 31, 2024) | | $651,000 | | Total compensation cost (Q1 2024) | | $28,000 | [13. Fair Value of Financial Instruments](index=20&type=section&id=13.%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) Details fair value measurement of financial instruments, including cash, debt, and derivatives, categorized by hierarchy levels - The company's financial instruments include cash, accounts receivable, accounts payable, debt, interest rate swaps, and foreign currency derivatives[70](index=70&type=chunk) - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (quoted prices for similar instruments or model-derived valuations with observable inputs), and Level 3 (significant unobservable inputs)[69](index=69&type=chunk)[86](index=86&type=chunk)[55](index=55&type=chunk) - As of March 31, 2024, the company had Level 2 fair value measurements for its interest rate swaps and foreign currency derivatives[70](index=70&type=chunk) [Derivative and Hedging Activities](index=20&type=section&id=Derivative%20and%20Hedging%20Activities) Describes the company's use of derivative financial instruments for hedging foreign currency and interest rate risks - The company uses derivative financial instruments (foreign currency forward contracts and interest rate swaps) to hedge exposure to foreign currency exchange risk and interest rate changes[56](index=56&type=chunk)[57](index=57&type=chunk) - All forward contracts and interest rate swaps are formally documented as cash flow hedges and measured at fair value quarterly, with no ineffective portion related to cash flow hedges as of March 31, 2024[56](index=56&type=chunk)[57](index=57&type=chunk)[71](index=71&type=chunk) [Foreign Currency Derivatives](index=20&type=section&id=Foreign%20Currency%20Derivatives) Provides details on foreign currency derivative contracts, including notional value and fair value **Foreign Currency Derivatives (in thousands):** | Metric | March 31, 2024 | March 31, 2023 | | :---------------------------------- | :------------- | :------------- | | Notional contract value | $5,063 | $28,592 | | Fair Value (Asset) | $133 | $620 | | Unrealized gain (loss) in AOCI (Q1) | $(63) | $620 | | Reclassified gain (loss) from AOCI (Q1) | $424 | $119 | [Interest Rate Swap](index=20&type=section&id=Interest%20Rate%20Swap) Details the interest rate swap, including notional value, fair value, and AOCI impact **Interest Rate Swaps (in thousands):** | Metric | March 31, 2024 | March 31, 2023 | | :---------------------------------- | :------------- | :------------- | | Notional contract value | $22,917 | $24,167 | | Fair Value (Asset) | $797 | $524 | | Unrealized gain (loss) in AOCI (Q1) | $410 | $(212) | | Reclassified gain (loss) from AOCI (Q1) | $138 | $94 | [Financial statement impacts](index=21&type=section&id=Financial%20statement%20impacts) Explains how foreign currency derivative activity reclassified from AOCI impacts cost of goods sold and SG&A - The foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income is allocated to cost of goods sold and selling, general and administrative expense[74](index=74&type=chunk) [14. Accumulated Other Comprehensive Income](index=22&type=section&id=14.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME) Presents changes in Accumulated Other Comprehensive Income (AOCI), net of tax, for derivative hedging and post-retirement benefits **Changes in Accumulated Other Comprehensive Income (in thousands):** | Item | Balance at Dec 31, 2023 | Other comprehensive income before reclassifications | Amounts reclassified from AOCI | Income tax benefit (expense) | Balance at Mar 31, 2024 | | :---------------------------------- | :---------------------- | :------------------------------------------ | :----------------------------- | :--------------------------- | :---------------------- | | Derivative Hedging Activities | $901 | $347 | $(562) | $48 | $734 | | Post-Retirement Benefit Items | $4,400 | $(37) | $(124) | $34 | $4,273 | | Total AOCI | $5,301 | $310 | $(686) | $82 | $5,007 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's discussion and analysis of financial condition and results of operations, including outlook, quarterly results, and liquidity [Forward-Looking Statements](index=23&type=section&id=Forward-Looking%20Statements) Highlights that the report contains forward-looking statements subject to various risks and uncertainties - The report contains forward-looking statements subject to various known and unknown risks and uncertainties that could cause actual results to differ materially[92](index=92&type=chunk) - Key risk factors include business conditions in various industries, economic and political environments, customer dependence, raw material prices, foreign currency fluctuations, labor availability, acquisitions, capital availability, delivery performance, order cancellations, insurance, equipment failure, product liability, new product development, cybersecurity, regulatory matters, key personnel, environmental laws, and safety in Mexico[78](index=78&type=chunk)[79](index=79&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk)[196](index=196&type=chunk) [Description of the Company](index=24&type=section&id=Description%20of%20the%20Company) Describes Core Molding Technologies' operations, markets served, and geographic presence - Core Molding Technologies operates as one segment in the engineered materials market, molding thermoplastic and thermoset structural products[80](index=80&type=chunk)[213](index=213&type=chunk) - The company serves diverse markets including medium and heavy-duty trucks, power sports, building products, industrial and utilities, and other commercial markets[80](index=80&type=chunk)[213](index=213&type=chunk) - Headquartered in Columbus, Ohio, with six production facilities across the United States, Canada, and Mexico[80](index=80&type=chunk)[213](index=213&type=chunk) [Business Outlook](index=24&type=section&id=Business%20Outlook) Presents the company's expectations for calendar year 2024 revenues, demand, and raw material/labor costs - The company expects calendar year 2024 revenues to decrease by approximately **10% to 15%** compared to 2023, with a more significant decrease in the first half[125](index=125&type=chunk) - This outlook is attributed to an expected cyclical demand slowdown, decreased customer inventory builds, and a return to pre-pandemic consumer demand levels[125](index=125&type=chunk) - Business with Volvo will transition from existing programs to new ones starting in the second half of 2024 and continuing through 2026[99](index=99&type=chunk) - Raw material pricing is anticipated to remain flat or slightly higher in 2024, and labor markets have stabilized but with continued wage pressure, particularly in Mexico[127](index=127&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Analyzes key financial results, including net sales, gross margin, and net income, for the three months ended March 31 **Key Financial Results (Three Months Ended March 31, in thousands):** | Metric | 2024 | 2023 | Change (YoY) | | :---------------------------------- | :----- | :----- | :----------- | | Net Sales | $78,145 | $99,507 | -21.47% | | Gross Margin | 17.0% | 17.8% | -0.8 ppts | | SG&A Expense | $8,573 | $9,668 | -11.32% | | Net Interest Expense | $82 | $356 | -76.97% | | Income Tax Expense | $1,029 | $1,919 | -46.38% | | Net Income | $3,759 | $5,852 | -35.77% | | Comprehensive Income | $3,465 | $5,900 | -41.27% | - The decrease in net sales was primarily due to lower demand across all industries[128](index=128&type=chunk) - Gross margin was impacted by increased net changes in selling price and raw material costs (**1.7%**), offset by lower fixed cost leverage (**1.7%**) and operational inefficiencies/product mix (**0.8%**)[101](index=101&type=chunk) **Net Product Sales by Market (Three Months Ended March 31, in thousands):** | Market | 2024 | 2023 | Change (YoY) | | :---------------------------------- | :----- | :----- | :----------- | | Medium and heavy-duty truck | $41,509 | $49,516 | -16.2% | | Power sports | $18,859 | $22,036 | -14.4% | | Building products | $6,545 | $11,787 | -44.5% | | Industrial and utilities | $3,346 | $6,430 | -47.9% | | All other | $5,572 | $8,568 | -34.9% | | Net product revenue | $75,831 | $98,337 | -22.9% | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's cash position, operating and investing activities, debt facilities, and capital expenditure plans - Cash provided by operating activities totaled **$5,072 thousand** for the three months ended March 31, 2024[132](index=132&type=chunk) - Cash on hand was **$26,618 thousand** at March 31, 2024[108](index=108&type=chunk) - The company has a **$25 million** revolving loan facility and a **$25 million** CapEx loan facility, both with no outstanding balances as of March 31, 2024[108](index=108&type=chunk)[115](index=115&type=chunk) - Cash used in investing activities was **$1,893 thousand**, primarily for property, plant, and equipment purchases, with **$13 million** anticipated for 2024[107](index=107&type=chunk) - Cash used for financing activities totaled **$665 thousand**, including **$343 thousand** for treasury stock purchases and **$322 thousand** for long-term debt repayments[133](index=133&type=chunk) - Management believes current liquidity, including cash on hand, operating cash flow, and available borrowings, will be sufficient to meet current needs[109](index=109&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses market risks from commodity prices, interest rates, and foreign currency, and the use of derivatives to mitigate these exposures - Primary market risks include changes in commodity prices (raw materials), fluctuations in interest rates (variable rate debt), and foreign currency fluctuations (Mexican Peso and Canadian Dollar)[146](index=146&type=chunk) - The company uses derivative financial instruments to hedge exposure to foreign exchange rates and interest rates[156](index=156&type=chunk) - A hypothetical **10%** change in short-term interest rates would not materially affect earnings before tax due to hedging[121](index=121&type=chunk) - A hypothetical **10%** increase in commodity prices or a **10%** decrease in the USD to MXN/CAD exchange rate would adversely affect operating margins[147](index=147&type=chunk)[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective with no material changes - The company's disclosure controls and procedures were effective as of March 31, 2024[158](index=158&type=chunk) - There were no material changes in internal controls over financial reporting during the last fiscal quarter[158](index=158&type=chunk) Part II — Other Information Contains additional information not covered in the financial statements, including legal proceedings and risk factors [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) No legal proceedings are expected to have a material adverse effect on the company's financial position or operations - No legal proceedings are likely to have a material adverse effect on the company's financial position or results of operations[159](index=159&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes in risk factors from the Annual Report on Form 10-K for the year ended December 31, 2023[160](index=160&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Shares of common stock were repurchased to satisfy income tax withholding obligations related to restricted award vesting **Shares Repurchased (Three Months Ended March 31, 2024):** | Period | Total Number of Shares Purchased | Average Price per Share | | :---------------------------------- | :----------------------------- | :---------------------- | | March 1 to 31, 2024 | 17,773 | $19.31 | | Purpose | To satisfy income tax withholding obligations in connection with the vesting of restricted awards | | [Item 3. Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - No defaults upon senior securities[149](index=149&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures were reported for the period - No mine safety disclosures[149](index=149&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) No other information was reported for the period - No other information to report[149](index=149&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) Refers to the Index to Exhibits for a complete list of documents filed as part of this report - A detailed list of exhibits is provided in the Index to Exhibits[149](index=149&type=chunk) [Signatures](index=30&type=section&id=SIGNATURES) Contains the official signatures of the company's President, CEO, and CFO, certifying the report - The report is signed by David L. Duvall, President, Chief Executive Officer, and Director, and John P. Zimmer, Executive Vice President, Secretary, Treasurer, and Chief Financial Officer[151](index=151&type=chunk)[162](index=162&type=chunk) [Index to Exhibit](index=31&type=section&id=INDEX%20TO%20EXHIBIT) Lists various exhibits filed with the report, including corporate documents and certifications - The index lists various exhibits, including certificates of incorporation, by-laws, stock award agreements, Section 302 and 1350 certifications, and XBRL documents[152](index=152&type=chunk)

Financial Data and Key Metrics Changes - Total net sales for Q1 2024 were $78.1 million, down 21.5% year-over-year, but up 5.9% sequentially from Q4 2023's $73.8 million [14][17][45] - Gross margin for Q1 2024 was 17%, compared to 17.8% in the prior year and up 220 basis points from 14.8% in Q4 2023 [40][43] - Net income totaled $3.8 million, or diluted EPS of $0.43, down from $5.9 million or diluted EPS of $0.66 in the comparable year period [45] - Adjusted EBITDA was $8.8 million, or 11.2% of sales, compared to $12.2 million or 12.3% of sales in the prior year [45] Business Line Data and Key Metrics Changes - Medium and heavy-duty truck sales shifted from 50% of sales in 2023 to 55% in Q1 2024, while power sports increased from 22% to 25% [43] - Building products sales were impacted by changes in customer orders, particularly from UFP sales through big-box retailers [62] Market Data and Key Metrics Changes - The company expects 2024 annual net sales to decline by 10% to 15% compared to 2023, influenced by cyclical demand slowdowns and stabilizing customer inventory [21] - Customer inventories are leveling down in certain end markets like power sports, potentially affected by prolonged high Fed rates [21] Company Strategy and Development Direction - The company is in an "invest-for-growth" phase, focusing on lead generation, sales resource expansion, and streamlining processes to maximize organic growth [12][22] - Sustainability is a core value, with goals to reduce energy consumption, greenhouse gas emissions, and landfill waste by 30% by 2030 [39] - The company is exploring acquisition opportunities that align with strategic growth criteria, focusing on footprint expansion and customer diversification [85][86] Management's Comments on Operating Environment and Future Outlook - Management acknowledged end market headwinds but emphasized a return to pre-pandemic demand levels and a strong pipeline of opportunities [22][50] - The company is preparing for increased truck demand driven by upcoming 2027 emissions regulations, with expectations for a peak in 2026 [81][98] Other Important Information - The company ended Q1 2024 with $26.6 million in cash and cash equivalents, and total outstanding liquidity of $76.6 million [20][46] - Capital expenditures for 2024 are expected to be approximately $13 million, with free cash flows improving to $3.2 million from $2.5 million in the prior year [20] Q&A Session Summary Question: What are the growth opportunities in the pipeline? - Management discussed increased lead optimization and the composition of the opportunity pipeline, noting shifts due to changes in end markets [27] Question: What are the impacts on the Building Products category? - Management noted that UFP sales through big-box retailers have decreased, affecting overall sales in the Building Products category [62] Question: How does the company view gross margin expectations for the year? - Management indicated that gross margin is expected to be in the 17% to 19% range, with volume being a key driver for achieving the higher end [57][58] Question: What is the outlook for acquisitions in the current market? - Management expressed caution regarding acquisition valuations, noting that sellers are still seeking high multiples despite increased financing costs [86][89]