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What changed in CORE MOLDING TECHNOLOGIES INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of CORE MOLDING TECHNOLOGIES INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+136 added−149 removedSource: 10-K (2024-03-12) vs 10-K (2023-03-14)

Top changes in CORE MOLDING TECHNOLOGIES INC's 2023 10-K

136 paragraphs added · 149 removed · 120 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

25 edited+0 added−1 removed51 unchanged
Biggest changeThe following table presents sales to major customers as a percent of total sales for the years ended December 31: 2022 2021 2020 Supply Agreement Supply Agreement Expiration BRP 14% 12% 10% Yes July 31, 2024 Navistar 17% 15% 18% No N/A PACCAR 10% 12% 13% Yes November 30, 2023 Volvo 14% 12% 12% Yes December 31, 2027 UFP 9% 12% 17% Yes March 10, 2027 BRP provides a portfolio of industry-leading products comprising of snowmobiles, watercraft, on and off-road vehicles, power sports propulsion systems as well as engines for karts, motorcycles and recreational aircraft.
Biggest changeThe following table presents sales to major customers as a percent of total sales for the years ended December 31: 2023 2022 2021 Supply Agreement Supply Agreement Expiration BRP 14% 14% 12% Yes July 31, 2024 Navistar 20% 17% 15% No N/A PACCAR 10% 10% 12% No N/A UFP 7% 9% 12% Yes March 10, 2027 Volvo 16% 14% 12% Yes December 31, 2027 BRP provides a portfolio of industry-leading products comprising of snowmobiles, watercraft, on and off-road vehicles, power sports propulsion systems as well as engines for karts, motorcycles and recreational aircraft.
Diversity, Equity and Inclusion – The Company is committed to diversity, equity and inclusion, including a focus on continued diversity of our Board of Directors and leadership team. The Company has implemented initiatives to help maintain a workforce that represents diversity and inclusion.
Diversity, Equity and Inclusion – The Company is committed to diversity, equity and inclusion, including a focus on continued diversity of our Board of Directors ("the Board") and leadership team. The Company has implemented initiatives to help maintain a workforce that represents diversity and inclusion.
Robotics are used as deemed productive for material handling, machining, and adhesive applications. In addition to conventional machining methods, water-jet cutting technology is also used where appropriate. The Company also utilizes paint booths and batch ovens in its facilities. The Company generally contracts with outside providers for higher volume applications that require top coat paint.
Robotics are used as deemed productive for material handling, machining, and adhesive applications. In addition to conventional machining methods, water-jet cutting technology is also used where appropriate. The Company also utilizes paint booths and batch ovens in its facilities. The Company generally contracts with outside providers for higher volume programs that require top coat paint.
As part of the Company's environmental policy, all manufacturing employees are trained on waste management and other environmental issues. The Company's full Board of Directors provides oversight of the Company's environmental and climate matters through an Enterprise Risk Management system and quarterly reporting process.
As part of the Company's environmental policy, all manufacturing employees are trained on waste management and other environmental issues. The Company's full Board provides oversight of the Company's environmental and climate matters through an Enterprise Risk Management system and quarterly reporting process.
During times when demand exceeds the standard five day, three -shift capacity, the Company will work weekends to create additional capacity, which can provide capacity utilization percentages greater than 100%. During 2022, the Company has used various methods from overtime to a weekend manpower crews to support the customers' production requirements.
During times when demand exceeds the standard five day, three -shift capacity, the Company will work weekends to create additional capacity, which can provide capacity utilization percentages greater than 100%. During 2023, the Company has used various methods from overtime to a weekend manpower crews to support the customers' production requirements.
Sales to these customers individually were all less than 10% of total sales for interim and annual reporting during 2022. 7 Table of Contents GEOGRAPHIC INFORMATION Substantially all of the Company's products are sold in U.S. dollars.
Sales to these customers individually were all less than 10% of total sales for interim and annual reporting during 2023. 7 Table of Contents GEOGRAPHIC INFORMATION Substantially all of the Company's products are sold in U.S. dollars.
Truck demand also depends on general economic conditions, among other factors. UFP supplies products to three industry segments: retail, industrial, and construction. These are highly-competitive markets, with suppliers competing for a share of available shelf space at large “big box” retailers and independent contractors.
Truck demand also depends on general economic conditions and changes to emission regulations, among other factors. UFP supplies products to three industry segments: retail, industrial, and construction. These are highly-competitive markets, with suppliers competing for a share of available shelf space at large “big box” retailers and independent contractors.
BACKLOG The Company relies on production schedules provided by its customers to plan and implement production. These schedules are normally provided on a weekly basis and typically considered firm for approximately four weeks. Some customers 8 Table of Contents update these schedules daily for changes in demand, allo wing them to run their inventories on a “just-in-time” basis.
BACKLOG The Company relies on production schedules provided by its customers to plan and implement production. These schedules are normally provided on a weekly basis and typically considered firm for approximately four weeks. Some customers update these schedules daily for changes in demand, allo wing them to run their inventories on a “just-in-time” basis.
Management has estimated that costs related to research and development were approximately $1.6 million, $1.3 million and $1.2 million in 2022, 2021, and 2020, respectively. MAJOR CUSTOMERS The Company had five major customers during the year ended December 31, 2022, BRP, Inc. (“BRP”), Navistar, Inc. (“Navistar”), PACCAR, Inc. (“PACCAR”), Universal Forest Products, Inc.
Management has estimated that costs related to research and development were approximately $1.7 million, $1.6 million and $1.3 million in 2023, 2022, and 2021, respectively. MAJOR CUSTOMERS The Company had five major customers during the year ended December 31, 2023, BRP, Inc. (“BRP”), Navistar, Inc. (“Navistar”), PACCAR, Inc. (“PACCAR”), Universal Forest Products, Inc.
We believe that our operations are in substantial compliance with 9 Table of Contents all material environmental laws and regulations applicable to our plants and operations. Historically, our annual costs of achieving and maintaining compliance with environmental laws and regulations have not been material to our financial results.
We believe that our operations are in substantial compliance with all material environmental laws and regulations applicable to our plants and operations. Historically, our annual costs of achieving and maintaining compliance with environmental laws and regulations have not been material to our financial results.
Details on the collective bargaining agreements are as follows: Plant Location Union Name Expiration Date Employees Columbus, Ohio International Association of Machinists and Aerospace Workers ("IAM") August 9, 2025 320 Matamoros, Mexico Sindicato de Jorneleros y Obreros January 1, 2024 805 Cobourg, Canada United Food & Commercial Workers Canada ("UFCW") November 1, 2025 177 Escobedo, Mexico Sindicato de trabajadores de la industria metalica y del comercio del estado de Nuevo Leon Presidente Benito Juarez Garcia C.T.M.
Details on the collective bargaining agreements are as follows: Plant Location Union Name Expiration Date Employees Columbus, Ohio International Association of Machinists and Aerospace Workers ("IAM") August 9, 2025 321 Matamoros, Mexico Sindicato de Jorneleros y Obreros January 1, 2025 743 Cobourg, Canada United Food & Commercial Workers Canada ("UFCW") November 1, 2025 132 Escobedo, Mexico Sindicato de trabajadores de la industria metalica y del comercio del estado de Nuevo Leon Presidente Benito Juarez Garcia C.T.M.
Molded Products The Company manufactures structural products using compression molding (52 presses), resin transfer molding (4 presses), and injection molding processes (24 presses).
Molded Products The Company manufactures structural products using compression molding (54 presses), resin transfer molding (4 presses), and injection molding processes (24 presses).
The Company measures facility capacity in terms of its large injection molding presses (750 tons or greater). The Company owned 12 large injection molding presses at its facilities at December 31, 2022. The capacity utilization in these production facilities was 79% and 73% for the years ended December 31, 2022 and 2021, respectively.
The Company measures facility capacity in terms of its large injection molding presses (750 tons or greater). The Company owned 12 large injection molding presses at its facilities at December 31, 2023. The capacity utilization in these production facilities was 64% and 79% for the years ended December 31, 2023 and 2022, respectively.
However, new requirements, more stringent application of existing requirements or the discovery of previously unknown environmental conditions could result in material environmental related expenditures in the future.
However, new requirements, more stringent application of existing requirements or the discovery of previously 9 Table of Contents unknown environmental conditions could result in material environmental related expenditures in the future.
The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, automobiles, power sports, construction and agriculture, building products and other commercial markets. Core Molding Technologies has its headquarters in Columbus, Ohio, and operates six production facilities in the United States, Canada and Mexico.
The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, power sports, building products and other industrial markets. Core Molding Technologies has its headquarters in Columbus, Ohio, and operates six production facilities in the United States, Canada and Mexico.
The Company measures facility capacity in terms of its large compression molding presses (2,000 tons or greater). The Company owned 26 large compression molding presses at its facilities at December 31, 2022. The capacity utilization in these production facilities was 89% and 85% for the years ended December 31, 2022 and 2021, respectively.
The Company measures facility capacity in terms of its large compression molding presses (2,000 tons or greater). The Company owned 28 large compression molding presses at its facilities at December 31, 2023. The capacity utilization in these production facilities was 83% and 89% for the years ended December 31, 2023 and 2022, respectively.
CAPITAL EXPENDITURES AND RESEARCH AND DEVELOPMENT Capital expenditures totaled approximately $16.6 million, $11.6 million, and $3.7 million in 2022, 2021, and 2020 respectively. These capital expenditures primarily consisted of building and equipment improvements and additional production equipment to manufacture parts. The Company continuously engages in product development.
CAPITAL EXPENDITURES AND RESEARCH AND DEVELOPMENT Capital expenditures totaled approximately $9.1 million, $16.6 million, and $11.6 million in 2023, 2022, and 2021 respectively. These capital expenditures primarily consisted of building and equipment improvements and additional production equipment to manufacture parts. The Company continuously engages in product development.
See below under "Item 1A Risk Factors - Legal, Insurance, Tax and Cybersecurity Risks - Changes in legal, regulatory, and social responses to climate change, including any possible effect on energy prices, could adversely affect our business and reduce our profitability ." The Company has Environmental Management Systems at all of its facilities and has obtained ISO 14001 certification at all facilities except for Cobourg, Canada, which complies with strict Canadian environmental reporting.
See below under "Item 1A Risk Factors - Legal, Insurance, Tax and Cybersecurity Risks - Changes in legal, regulatory, and social responses to climate change, including any possible effect on energy prices, could adversely affect our business and reduce our profitability ." The Company has Environmental Management Systems at all of its facilities and has obtained ISO 14001 certification at all facilities.
Four plant locations making up 69.0% of the workforce are covered by collective bargaining agreements.
Four plant locations making up 67.3% of the workforce are covered by collective bargaining agreements.
The ordered backlog of four weeks of expected shipments was approximately $30.3 million (100% of which the Company shipped during the first month of 2023) and $27.7 million at December 31, 2022 and 2021, respectively.
The 8 Table of Contents ordered backlog of four weeks of expected shipments was approximately $25.3 million (100% of which the Company shipped during the first month of 2024) and $30.3 million at December 31, 2023 and 2022, respectively.
The following table provides information related to the Company's sales by country, based on the ship to location of customers' production facilities, for the years ended December 31 (in thousands): 2022 2021 2020 United States $ 231,391 $ 191,667 $ 136,424 Mexico 113,245 88,952 64,942 Canada 26,829 22,642 16,827 Other 5,911 4,222 4,163 Total $ 377,376 $ 307,483 $ 222,356 SEASONALITY & BUSINESS CYCLE The Company's business is affected annually by the production schedules of its customers.
The following table provides information related to the Company's sales by country, based on the ship to location of customers' production facilities, for the years ended December 31 (in thousands): 2023 2022 2021 United States $ 234,504 $ 231,391 $ 191,667 Mexico 105,818 113,245 88,952 Canada 11,980 26,829 22,642 Other 5,436 5,911 4,222 Total $ 357,738 $ 377,376 $ 307,483 SEASONALITY & BUSINESS CYCLE The Company's business is affected annually by the production schedules of its customers.
As of December 31, 2022, the Company owned 80 molding presses including 19 in its Columbus, Ohio facility; 23 in its Matamoros, Mexico facility; 19 in its Cobourg, Canada facility; 10 in its Gaffney, South Carolina facility; 4 in its Winona, Minnesota facility; and 5 in its Escobedo, Mexico facility.
As of December 31, 2023, the Company owned 82 molding presses including 19 in its Columbus, Ohio facility; 24 in its Matamoros, Mexico facility; 18 in its Cobourg, Canada facility; 10 in its Gaffney, South Carolina facility; 5 in its Winona, Minnesota facility; and 6 in its Escobedo, Mexico facility.
February 1, 2023 (1) 69 (1) The Company is currently negotiating an extension to the Escobedo, Mexico collective bargaining agreement.
February 18, 2024 (1) 54 (1) The Company is currently negotiating an extension to the Escobedo, Mexico collective bargaining agreement.
HUMAN CAPITAL MANAGEMENT As of December 31, 2022, the Company employed a total of 1,986 employees, which consisted of 690 employees in the United States, 1,073 employees in Mexico and 223 employees in Canada. The salary workforce consisted of 385 employees, while 1,601 employees were hourly.
HUMAN CAPITAL MANAGEMENT As of December 31, 2023, the Company employed a total of 1,857 employees, which consisted of 698 employees in the United States, 985 employees in Mexico and 174 employees in Canada. The salary workforce consisted of 369 employees, while 1,488 employees were hourly.
Normally we do not carry inventories of raw materials or finished products in excess of what is reasonably required to meet production and shipping schedules, and to manage risk of supply and variation in demand.
The Company generally has supplier alternatives for each raw material, and regularly evaluates its supply base to improve its overall purchasing position. Normally we do not carry inventories of raw materials or finished products in excess of what is reasonably required to meet production and shipping schedules, and to manage risk of supply and variation in demand.
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The Company generally has supplier alternatives for each raw material, and regularly evaluates its supply base to improve its overall purchasing position; however, current supply chain conditions have limited sourcing alternatives.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

35 edited+5 added−14 removed88 unchanged
Biggest changeDisruptions in the financial markets may also have a material adverse impact on the availability and cost of credit in the future. Our ability to pay our debt or refinance our obligations will depend on our future performance, which could be affected by, among other things, prevailing economic conditions.
Biggest changeOur ability to pay our debt or refinance our obligations will depend on our future performance, which could be affected by, among other things, prevailing economic conditions. Disruptions in the financial markets may also have an adverse effect on the U.S. and world economies, which would have a negative impact on demand for our products.
A change in control occurs when (a) one Person (as defined in the employment agreement), or more than one Person acting as a group, acquires ownership of stock of the Company that, together with the stock held by such Person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company, (b) a majority of the members of the Company's Board of Directors are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the Board before the date of appointment or election, or (c) the sale of all or substantially all of the Company’s assets.
A change in control occurs when (a) one Person (as defined in the employment agreement), or more than one Person acting as a group, acquires ownership of stock of the Company that, together with the stock held by such Person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company, (b) a majority of the members of the Board are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the Board before the date of appointment or election, or (c) the sale of all or substantially all of the Company’s assets.
These customers may not continue to do business with us as they have in the past and we may not be able to supply these customers or any of our other customers at current levels. 10 Table of Contents Our business is affected by the cyclical and overall nature of the industries and markets that we serve.
Furthermore, these customers may not continue to do business with us as they have in the past and we may not be able to supply these customers or any of our other customers at current levels. 10 Table of Contents Our business is affected by the cyclical and overall nature of the industries and markets that we serve.
The current Columbus, Ohio, Matamoros, Mexico, Cobourg, Canada, and Escobedo, Mexico union contracts extend through August 9, 2025, January 1, 2024, November 1, 2025 and February 1, 2023, respectively. Any prolonged work stoppage or strike at our unionized facilities could have a material adverse effect on our business, results of operations, or financial condition.
The current Columbus, Ohio, Matamoros, Mexico, Cobourg, Canada, and Escobedo, Mexico union contracts extend through August 9, 2025, January 1, 2024, November 1, 2025 and February 18, 2024, respectively. Any prolonged work stoppage or strike at our unionized facilities could have a material adverse effect on our business, results of operations, or financial condition.
Although it is uncertain at this time precisely what actions various governmental bodies will take early to address the affects of climate change and to achieve goals in response to the potential effects of climate change, various proposed legislative or regulatory initiatives related to climate changes, such as cap-and-trade systems, increased limits on emissions of greenhouse gases and fuel efficiency standards, or other measures, could in the future have a material impact on us, our customers, or the markets we serve, thereby resulting in a material adverse effect on our financial condition or results of operation.
Although it is uncertain at this time precisely what actions various governmental bodies will take early to address the effects of climate change and to achieve goals in response to the potential effects of climate change, various proposed legislative or regulatory initiatives related to climate changes, such as cap-and-trade systems, increased limits on emissions of greenhouse gases and fuel efficiency standards, or other measures, could in the future have a material impact on us, our customers, or the markets we serve, thereby resulting 15 Table of Contents in a material adverse effect on our financial condition or results of operation.
The loss of any significant portion of sales to any of our significant customers could have a material adverse effect on our business, results of operations, and financial condition. Accounts receivable balances with five customers accounted for 67% of accounts receivable at December 31, 2022.
The loss of any significant portion of sales to any of our significant customers could have a material adverse effect on our business, results of operations, and financial condition. Accounts receivable balances with five customers accounted for 67% of accounts receivable at December 31, 2023.
Although the Company maintains property and business interruption insurance, damage from a weather event or disruption in the supply chain or customer demand may not be fully covered by our insurance and could cause a material adverse impact on our business.
Although the Company maintains property and business interruption insurance, damage from a weather event, natural disaster, or disruption in the supply chain or customer demand may not be fully covered by our insurance and could cause a material adverse impact on our business.
Failures of our IT systems as a result of cybersecurity attacks or other disruptions could result in a breach of critical operational or financial controls and lead to a disruption of our operations, commercial activities or financial processes. Cybersecurity attacks or other disruptions impacting significant customers and/or suppliers could also lead to a disruption of our operations or commercial activities.
Failures of our IT systems as a result of cybersecurity incidents or other disruptions could result in a breach of critical operational or financial controls and lead to a disruption of our operations, commercial activities or financial processes. Cybersecurity incidents or other disruptions impacting significant customers and/or suppliers could also lead to a disruption of our operations or commercial activities.
Outcomes from examinations may have a negative impact on our future financial condition and operating results. Cybersecurity attacks may threaten our confidential information, disrupt operations and result in harm to our reputation and adversely impact our business and financial performance.
Outcomes from examinations may have a negative impact on our future financial condition and operating results. Cybersecurity incidents may threaten our confidential information, disrupt operations and result in harm to our reputation and adversely impact our business and financial performance.
In addition, tightening of credit markets may have an adverse impact on our customers' ability to finance the sale of new trucks or our suppliers' ability to provide us with raw materials, either of which could adversely affect our business and results of operations. 18 Table of Contents ITEM 1B. UNRESOLVED STAFF COMMENTS None.
In addition, tightening of credit markets may have an adverse impact on our customers' ability to finance the sale of new trucks or our suppliers' ability to provide us with raw materials, either of which could adversely affect our business and results of operations. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
Our common stock also has a low average daily trading volume, which limits a person's ability to quickly accumulate or quickly divest themselves of large blocks of our stock. In addition, a low average trading volume can lead to significant price swings even when a relatively few number of shares are being traded.
Our common stock also has a low average daily trading volume, which limits a person's ability to quickly accumulate or quickly divest themselves of large blocks of our stock. In 14 Table of Contents addition, a low average trading volume can lead to significant price swings even when a relatively few number of shares are being traded.
Cybersecurity attacks across industries, including ours, are increasing in sophistication and frequency and may range from uncoordinated individual attempts to measures targeted specifically at us.
Cybersecurity incidents across industries, including ours, are increasing in sophistication and frequency and may range from uncoordinated individual attempts to measures targeted specifically at us.
Cybersecurity failures may be caused by employee error, malfeasance, system errors or 17 Table of Contents vulnerabilities, including vulnerabilities of our vendors, suppliers, and their products. We have been subject to cybersecurity attacks in the past. Based on information known to date, past attacks have not had a material impact on our financial condition or results of operations.
Cybersecurity failures may be caused by employee error, malfeasance, system errors or vulnerabilities, including vulnerabilities of our vendors, suppliers, and their products. We have been subject to cybersecurity incidents in the past. Based on information known to date, past incidents have not had a material impact on our financial condition or results of operations.
A sustained labor shortage, lack of skilled labor, increased turnover or labor cost inflation, caused by the ongoing COVID-19 pandemic or as a result of general macroeconomic factors, could lead to increased costs, such as increased overtime to meet demand and increased wage rates to attract and retain employees, which could negatively affect our ability to efficiently operate our manufacturing facilities and overall business and have other adverse effects on our results of operations and financial condition.
A sustained labor shortage, lack of skilled labor, increased turnover or labor cost inflation, as a result of general macroeconomic factors, could lead to increased costs, such as increased overtime to meet demand and increased wage rates to attract and retain employees, which could negatively affect our ability to efficiently operate our manufacturing facilities and overall business and have other adverse effects on our results of operations and financial condition.
Consistent with market conditions in the insurance industry, premiums and deductibles for some of our insurance policies have been increasing and may continue to increase in the future. In some instances, some types of insurance may become available only for reduced amounts of coverage, if at all.
Consistent with market conditions in the insurance industry, premiums and deductibles for some of our insurance policies have been increasing and may continue to increase in the future. In some instances, some types of insurance may become available only for reduced amounts of coverage, if at all. In addition, our insurers may challenge coverage for certain claims.
Work stoppages or other labor issues at our facilities or at our customers' facilities could adversely affect our operations. As of December 31, 2022, unions at our Columbus, Ohio, Matamoros and Escobedo, Mexico, and Cobourg, Canada facilities represented approximately 69.0% of our entire workforce. As a result, we are subject to the risk of work stoppages and other labor-relations matters.
Work stoppages or other labor issues at our facilities or at our customers' facilities could adversely affect our operations. As of December 31, 2023, unions at our Columbus, Ohio, Matamoros and Escobedo, Mexico, and Cobourg, Canada facilities represented approximately 67.3% of our entire workforce. As a result, we are subject to the risk of work stoppages and other labor-relations matters.
Risks Relating to our Business Our business has concentration risks associated with significant customers. Sales to five customers constituted approximately 64% of our 2022 total sales. No other customer accounted for more than 10% of our total sales for this period.
Risks Relating to our Business Our business has concentration risks associated with significant customers. Sales to five customers constituted approximately 68% of our 2023 total sales. No other customer accounted for more than 10% of our total sales for this period.
The North American heavy and medium-duty truck industry, on which the demand of our products is largely dependent, is highly cyclical. In 2022, approximately 45% of our product sales was in this industry.
The North American heavy and medium-duty truck industry, on which the demand of our products is largely dependent, is highly cyclical. In 2023, approximately 52% of our product sales was in this industry.
In addition, we may be exposed to obligations or involved from time to time in administrative or legal proceedings relating to environmental, health and safety or other regulatory matters, and may incur financial and other obligations relating to such matters.
In addition, we may be exposed to obligations or involved from time to time in 16 Table of Contents administrative or legal proceedings relating to environmental, health and safety or other regulatory matters, and may incur financial and other obligations relating to such matters.
We may experience such attacks in the future, potentially with more frequency or sophistication. In the conduct of our business, we collect, use, transmit and store data on information systems, which are vulnerable to disruption and an increasing threat of continually evolving cybersecurity risks.
We, or third parties who provide material services to us, may experience such incidents in the future, potentially with more frequency or sophistication. In the conduct of our business, we collect, use, transmit and store data on information systems, which are vulnerable to disruption and an increasing threat of continually evolving cybersecurity risks.
This could cause us to shut down production facilities relating to these products, which could have a material adverse effect on our business, results of operations, or financial condition. Our foreign operations in Mexico and Canada subject us to risks that could negatively affect our business. We operate manufacturing facilities in Matamoros and Escobedo, Mexico and Cobourg, Canada.
This could cause 12 Table of Contents us to shut down production facilities relating to these products, which could have a material adverse effect on our business, results of operations, or financial condition. Our foreign operations in Mexico and Canada subject us to risks that could negatively affect our business.
Any failure by us to reach a new agreement upon expiration of such union contracts may have a material adverse effect on our business, results of operations, or financial condition.
Any failure by us to reach a new agreement upon expiration of such union contracts may have a material adverse effect on our business, results of operations, or financial condition. The Company is currently negotiating an extension to the Escobedo, Mexico collective bargaining agreement.
In addition, our insurers may challenge 16 Table of Contents coverage for certain claims. If we were to incur a significant liability for which we were not fully insured or that our insurers disputed, it could have a material adverse effect on our financial position.
If we were to incur a significant liability for which we were not fully insured or that our insurers disputed, it could have a material adverse effect on our financial position.
Financial and Accounting Risks Fluctuations in foreign currency exchange rates could adversely affect our results of operations, cash flow, liquidity, or financial condition. Because of our international operations, we are exposed to risk associated with value changes in foreign currencies, which may adversely affect our business.
Because of our international operations, we are exposed to risk associated with value changes in foreign currencies, which may adversely affect our business. Historically, our reported net sales, earnings, cash flow, and financial condition have been subjected to fluctuations in foreign exchange rates.
Economic conditions and disruptions in the financial markets could have an adverse effect on our business, financial condition, and results of operations. Disruptions in the financial markets could have a material adverse effect on our liquidity and financial condition if our ability to borrow money were to be impaired.
Disruptions in the financial markets could have a material adverse effect on our liquidity and financial condition if our ability to borrow money were to be impaired. Disruptions in the financial markets may also have a material adverse impact on the availability and cost of credit in the future.
The Company is currently negotiating an extension to the Escobedo, Mexico collective bargaining agreement. 12 Table of Contents In addition, if any of our customers or suppliers experience a material work stoppage, that customer may halt or limit the purchase of our products or that supplier may interrupt supply of our necessary production components.
In addition, if any of our customers or suppliers experience a material work stoppage, that customer may halt or limit the purchase of our products or that supplier may interrupt supply of our necessary production components.
Shifting production, moving production lines, or opening new locations could result in significant costs required for capital investment, transfer expenses, and operating costs. 11 Table of Contents Additionally, OEMs have generally required component suppliers to provide more design engineering input at earlier stages of the product development process, the costs of which have, in some cases, been absorbed by the suppliers.
Additionally, OEMs have generally required component suppliers to provide more design engineering input at earlier 11 Table of Contents stages of the product development process, the costs of which have, in some cases, been absorbed by the suppliers.
If we are unsuccessful in developing ways to mitigate these raw material increases or are unable to offset the increase through price increases to our customers, our results of operations could be materially adversely impacted.
If we are unsuccessful in developing ways to mitigate these raw material increases or are unable to offset the increase through price increases to our customers, our results of operations could be materially adversely impacted. We rely upon a global supply chain to deliver the raw materials, components, systems and parts that we need to manufacture and service our products.
The occurrence of such events could have a material adverse effect on our business financial condition and results of operations.
The 17 Table of Contents occurrence of such events could have a material adverse effect on our business financial condition and results of operations. Risks Related to Economic Conditions Economic conditions and disruptions in the financial markets could have an adverse effect on our business, financial condition, and results of operations.
If we are unable to identify or compensate for any one of these changes it may have a material adverse effect on our business, results of operations, or financial condition. Difficulty in hiring, training, and retaining skilled labor could result in increased cost overruns, an inability to satisfy customer demands, and otherwise adversely affect our business.
If we are unable to identify or compensate for any one of these changes it may have a material adverse effect on our business, results of operations, or financial condition. Financial and Accounting Risks Fluctuations in foreign currency exchange rates could adversely affect our results of operations, cash flow, liquidity, or financial condition.
These decisions by OEMs could require us to shift production between our facilities, move production lines between our facilities, or open new facilities to remain competitive.
These decisions by OEMs could require us to shift production between our facilities, move production lines between our facilities, or open new facilities to remain competitive. Shifting production, moving production lines, or opening new locations could result in significant costs required for capital investment, transfer expenses, and operating costs.
The prices for purchased materials are affected by the prices of material feed stocks such as crude oil, natural gas, and downstream components, as well as processing capacity versus demand. We attempt to reduce our exposure to increases by working with suppliers, evaluating new suppliers, improving material efficiencies, and when necessary through sales price adjustments to customers.
The prices for purchased materials are affected by the prices of material feed stocks such as crude oil, natural gas, and downstream components, as well as processing capacity versus demand.
If a default of covenants were to occur, we may not be able to pay our debts or borrow sufficient funds, which could materially adversely affect our results of operations, financial condition, and cash flows. 15 Table of Contents Legal, Insurance, Tax and Cybersecurity Risks Changes in the legal, regulatory, and social responses to climate change, including any possible effect on energy prices, could adversely affect our business and reduce our profitability.
If a default of covenants were to occur, we may not be able to pay our debts or borrow sufficient funds, which could materially adversely affect our results of operations, financial condition, and cash flows.
We believe we may experience losses from foreign currency exchange rate fluctuations, and such losses could adversely affect our sales, earnings, cash flow, liquidity, or financial condition. 14 Table of Contents Our stock price can be volatile. Our stock price can fluctuate widely in response to a variety of factors.
Our primary exchange rate exposure is with the Canadian dollar and the Mexican peso against the U.S. dollar. We may experience losses from foreign currency exchange rate fluctuations, and such losses could adversely affect our sales, earnings, cash flow, liquidity, or financial condition. Our stock price can be volatile.
We manufacture and sell products globally and rely upon a global supply chain to deliver the raw materials, components, systems and parts that we need to manufacture and service our products. Any direct or indirect supply chain disruptions may have an adverse impact on our business, financial condition, results of operations or cash flows.
Any direct or indirect supply chain disruptions, including from the effects of any pandemics or epidemics, economic slowdowns, recessions, geopolitical events, inflation or rising interest rates, may have an adverse impact on our business, financial condition, results of operations or cash flows.
Removed
We are continuing to engage in efforts intended to strengthen and expand our relations with significant customers, as well as provide support for our entire customer base. We have supported our position with customers using direct and active contact through our sales, quality, engineering, and operational personnel.
Added
Beginning in the second half of 2024 and continuing through 2026, our business with Volvo, a significant customer accounting for approximately 16% of our 2023 total sales, will begin transitioning from existing production programs that the Company currently supplies to new programs that the Company does not support.
Removed
We depend on skilled labor in the manufacturing of our products. High demand for skilled manufacturing labor in the United States has resulted in difficulty hiring, training, and retaining labor in a tightening labor market.
Added
There is no assurance that we will be able to replace the loss of any revenue that we may experience from the expiration of our existing production programs with Volvo, or from the loss of any other significant customer whether due to unexpected loss or future expiration of production programs.
Removed
Difficulties in securing skilled labor could result in increased hiring and training costs, increased overtime to meet demand, increased wage rates to attract and retain operators, and higher scrap and rework costs due to inexperienced workers which would adversely affect our business.
Added
We operate manufacturing facilities in Matamoros and Escobedo, Mexico and Cobourg, Canada.
Removed
Historically, our reported net sales, earnings, cash flow, and financial condition have been subjected to fluctuations in foreign exchange rates. Our primary exchange rate exposure is with the Canadian dollar and the Mexican peso against the U.S. dollar.
Added
Our stock price can fluctuate widely in response to a variety of factors.
Removed
Risks Related to Economic Conditions The ongoing COVID-19 pandemic has adversely impacted our business and the COVID-19 pandemic or similar public health crises could, in the future, have a material adverse impact on our business, results of operation, financial condition and liquidity, the nature and extent of which is highly uncertain.
Added
Legal, Insurance, Tax and Cybersecurity Risks Changes in the legal, regulatory, and social responses to climate change, including any possible effect on energy prices, could adversely affect our business and reduce our profitability.
Removed
The COVID-19 pandemic has caused, and continues to cause volatility in the global economy, the automotive industry and our business, resulting in increased economic, demand and operational uncertainty.
Removed
We have global operations, customers and suppliers in countries impacted by COVID-19 where there are numerous uncertainties, including the duration and severity of the pandemic, the impact of the spread of new and existing variants of the virus, and the related macroeconomic impacts, including labor shortages, high inflation rates or other disruptions to our supply chain.
Removed
The increased demand for imported goods driven by a shift in consumer spending has also stressed the global supply chain, from factory production capacity to transportation availability.
Removed
Our suppliers could fail to deliver product in a timely manner as a result of disruption to the global supply chain due to the ongoing COVID-19 pandemic, which could materially interrupt our business operations and/or impact our liquidity.
Removed
Authorities around the world have taken a variety of measures to slow the spread of COVID-19, including travel bans or restrictions, increased border controls or closures, quarantines, shelter-in-place orders, business shutdowns and such authorities may impose additional restrictions.
Removed
We have also taken actions to protect our employees and to mitigate the spread of COVID-19, including embracing guidelines set by the World Health Organization and the Centers for Disease Control and Prevention on social distancing, good hygiene, restrictions on employee travel and in-person meetings, and changes to employee work arrangements including remote work arrangements where feasible.
Removed
The actions taken around the world to slow the spread of COVID-19 have also impacted our customers and suppliers, and future developments could cause further disruptions to the Company due to the interconnected nature of our business relationships.
Removed
The extent to which COVID-19, or any other similar public health crisis, will impact our ongoing business, results of operations, financial condition or liquidity is highly uncertain and will depend on future developments, including the control of the spread of the virus, spread of new strains of the virus, additional actions taken by governmental authorities, and the ability to vaccinate the general population.
Removed
Disruptions in the financial markets may also have an adverse effect on the U.S. and world economies, which would have a negative impact on demand for our products.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

3 edited+0 added−2 removed0 unchanged
Biggest changeAll stock was purchased to satisfy tax withholding obligations upon vesting of restricted stock awards.
Biggest changeWe repurchased 125,701 shares of our common stock during the year ended December 31, 2023. All stock was purchased to satisfy tax withholding obligations upon vesting and exercising of stock awards. There were no repurchases of our common stock during the three months ended December 31, 2023.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASE OF EQUITY SECURITIES The Company's common stock is traded on the NYSE American LLC under the symbol “CMT”. The Company's common stock was held by 331 holders of record on March 13, 2023.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASE OF EQUITY SECURITIES The Company's common stock is traded on the NYSE American LLC under the symbol “CMT”. The Company's common stock was held by 306 holders of record on March 11, 2024.
Details of the repurchases of our common stock during the three months ended December 31, 2022, are included in the following table: Period Total number of shares purchased Average price paid per share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number that May Yet be Purchased Under the Plans or Programs October 1 to 31, 2022 — $ — — — November 1 to 30, 2022 — — — — December 1 to 31, 2022 — — — — Total — $ — — — ITEM 6. [RESERVED] 20 Table of Contents
Period Total number of shares purchased Average price paid per share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number that May Yet be Purchased Under the Plans or Programs October 1 to 31, 2023 — $ — — — November 1 to 30, 2023 — — — — December 1 to 31, 2023 — — — — Total — $ — — — ITEM 6. [RESERVED] 20 Table of Contents
Removed
The table below sets forth the high and low sale prices of the Company stock for each full quarterly period within the two most recent fiscal years for which such stock was traded. Core Molding Technologies, Inc.
Removed
High Low Fourth Quarter 2022 $ 13.00 $ 8.74 Third Quarter 2022 13.60 8.50 Second Quarter 2022 11.36 8.89 First Quarter 2022 11.51 7.96 Fourth Quarter 2021 $ 12.00 $ 8.16 Third Quarter 2021 17.35 11.41 Second Quarter 2021 16.00 11.01 First Quarter 2021 14.92 11.08 We repurchased 48,285 shares of our common stock during the year ended December 31, 2022.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 6. [RESERVED] 20 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 29 Item 8. Financial Statements and Supplementary Data (PCAOB 173) 30 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 57 Item 9A. Controls and Procedures 58
Biggest changeItem 6. [RESERVED] 20 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 29 Item 8. Financial Statements and Supplementary Data (PCAOB 173) 30 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 58 Item 9A. Controls and Procedures 59

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

55 edited+11 added−12 removed56 unchanged
Biggest changeNet income of $12,203,000 positively impacted operating cash flows. Non-cash deductions included in net income from depreciation and amortization and share based compensation amounted to $11,884,000 and $2,329,000, respectively, positively impacted cash flows. Non-cash increases included in net income from deferred income taxes of $3,469,000 and an increase in working capital of $5,595,000 resulted in a decrease in cash.
Biggest changeCash provided by operating activities totaled $34,842,000 for the year ended December 31, 2023. Net income of $20,324,000 positively impacted operating cash flows. Non-cash deductions included in net income from depreciation and amortization, share based compensation, and deferred incomes taxes amounted to $12,912,000, $2,923,000 and $2,473,000 respectively, positively impacted cash flows.
Huntington Capex Loan Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured Capex loan (the “Huntington Capex Loan”) in the maximum aggregate principal amount of $25,000,000 (none of which was advanced to the Company on July 22, 2022 and through December 31, 2022).
Huntington Capex Loan Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company secured Capex loan (the “Huntington Capex Loan”) in the maximum aggregate principal amount of $25,000,000 (none of which was advanced to the Company on July 22, 2022 and through December 31, 2023).
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS DESCRIPTION OF THE COMPANY Core Molding Technologies and its subsidiaries operate in the engineered materials market as one operating segment as a molder of thermoplastic and thermoset structural products. During the year ended December 31, 2022 the Company's operating segment consisted of one component reporting unit.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS DESCRIPTION OF THE COMPANY Core Molding Technologies and its subsidiaries operate in the engineered materials market as one operating segment as a molder of thermoplastic and thermoset structural products. During the year ended December 31, 2023 the Company's operating segment consisted of one component reporting unit.
The Huntington Credit Agreement contains certain customary representations and warranties, conditions, affirmative and negative covenants and events of default. The Company is in compliance with such covenants as of December 31, 2022. Voluntary prepayments of amounts outstanding under the Huntington Loans are permitted at any time without premium or penalty.
The Huntington Credit Agreement contains certain customary representations and warranties, conditions, affirmative and negative covenants and events of default. The Company is in compliance with such covenants as of December 31, 2023. Voluntary prepayments of amounts outstanding under the Huntington Loans are permitted at any time without premium or penalty.
FGI Equipment Finance LLC Term Loan On December 31, 2021, the Company had a term loan (the "FGI Term Loan"), evidenced by a promissory note (the "FGI Note") with FGI, with a balance of $12,561,000. The Company’s term loan had a fixed interest rate of 8.25% at December 25 Table of Contents 31, 2021.
FGI Equipment Finance LLC Term Loan On December 31, 2021, the Company had a term loan (the "FGI Term Loan"), evidenced by a promissory note (the "FGI Note") with FGI, with a balance of $12,561,000. The Company’s term loan had a fixed interest rate of 8.25% at December 31, 2021.
Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the reporting unit’s fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the Company.
Under a qualitative and quantitative approach, the impairment test for goodwill consists of an assessment of whether it is more-likely-than-not that the reporting unit’s fair value is less than its carrying amount. As part of the qualitative assessment, the Company considers relevant events and circumstances that affect the fair value or carrying amount of the 27 Table of Contents Company.
The Company's largest market, North American truck, which is highly cyclical, accounted for 45%, 41%, and 43% of the Company’s product revenue for the years ended December 31, 2022, 2021, and 2020, respectively. Operating performance is dependent on the Company’s ability to manage changes in input costs for items such as raw materials, labor, and overhead operating costs.
The Company's largest market, North American truck, which is highly cyclical, accounted for 52%, 45%, and 41% of the Company’s product revenue for the years ended December 31, 2023, 2022, and 2021, respectively. Operating performance is dependent on the Company’s ability to manage changes in input costs for items such as raw materials, labor, and overhead operating costs.
Primary cash requirements are for operating expenses, capital expenditures, repayments of debt, and acquisitions. 23 Table of Contents The Company from time to time will enter into foreign exchange contracts and interest rate swaps to mitigate risk of foreign exchange and interest rate volatility.
Primary cash requirements are for operating expenses, capital expenditures, repayments of debt, and acquisitions. The Company from time to time will enter into foreign exchange contracts and interest rate swaps to mitigate risk of foreign exchange and interest rate volatility.
The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at December 31, 2022 and December 31, 2021 of $889,000 and $916,000, respectively, included within the Other Current Liabilities on the Company's Consolidated Balance Sheets.
The Company has recorded an estimated liability for self-insured medical, dental and vision claims incurred but not reported and worker’s compensation claims incurred but not reported at December 31, 2023 and December 31, 2022 of $988,000 and $889,000, respectively, included within the Other Current Liabilities on the Company's Consolidated Balance Sheets.
The preparation of these consolidated financial statements requires management to make estimates 26 Table of Contents and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $502,000 at December 31, 2022 and $222,000 at December 31, 2021.
Management also records estimates for customer returns and deductions, discounts offered to customers, and for price adjustments. Should customer returns and deductions, discounts, and price adjustments fluctuate from the estimated amounts, additional allowances may be required. The Company had an allowance for estimated chargebacks of $138,000 at December 31, 2023 and $502,000 at December 31, 2022.
Huntington Revolving Loan Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a revolving loan commitment (the “Huntington Revolving Loan”) of $25,000,000 ($13,689,000 of which was advanced to the Company on July 22, 2022). The Company has $25,000,000 of available revolving loans of which $1,864,000 is outstanding as of December 31, 2022.
Huntington Revolving Loan Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a revolving loan commitment (the “Huntington Revolving Loan”) of $25,000,000 ($13,689,000 of which was advanced to the Company on July 22, 2022). The Company has $25,000,000 of available revolving loans of which none is outstanding as of December 31, 2023.
Under this agreement, the Company will pay a fixed SOFR rate of 2.95% to the swap counterparty in exchange for the Term Loans daily variable SOFR. The fair value of the interest rate swap was an asset of $765,000 at December 31, 2022.
Under this agreement, the Company will pay a fixed SOFR rate of 2.95% to the swap counterparty in exchange for the Term Loans daily variable SOFR. The fair value of the interest rate swap was an asset of $524,000 at December 31, 2023.
As of December 31, 2022 and 2021, the Company had no significant off-balance sheet arrangements. CRITICAL ACCOUNTING POLICIES AND ESTIMATES Management’s Discussion and Analysis of Financial Condition and Results of Operations discuss the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
As of December 31, 2023 and 2022, the Company had no significant off-balance sheet arrangements. 26 Table of Contents CRITICAL ACCOUNTING POLICIES AND ESTIMATES Management’s Discussion and Analysis of Financial Condition and Results of Operations discuss the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. 24 Table of Contents Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website, and (b) 0.00%.
Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website, and (b) 0.00%.
The Company believes that the deferred tax assets associated 28 Table of Contents with the Canadian and Mexican tax jurisdictions are more-likely-than-not to be realizable based on estimates of future taxable income. Management recognizes the financial statement effects of a tax position when it is more likely than not the position will be sustained upon examination.
The Company believes that the deferred tax assets associated with the Mexican tax jurisdictions are more-likely-than-not to be realizable based on estimates of future taxable income. Management recognizes the financial statement effects of a tax position when it is more likely than not the position will be sustained upon examination.
Proceeds of the Huntington Capex Loan will be used to finance the ongoing capital expenditure needs of the Company.
Proceeds of the Huntington Capex Loan would be used to finance the ongoing capital expenditure needs of the Company.
Interest Rate Swap Agreement The Company entered into an interest rate swap agreement that became effective July 22, 2022 and continues through July 2027, which was designed as a cash flow hedge for an initial aggregate amount of $25,000,000 of the Huntington Term Loan.
The interest rate for the Huntington Term Loan was 7.11% as of December 31, 2023. Interest Rate Swap Agreement The Company entered into an interest rate swap agreement that became effective July 22, 2022 and continues through July 2027, which was designed as a cash flow hedge for an initial aggregate amount of $25,000,000 of the Huntington Term Loan.
The effect of a change in healthcare costs is described in Note 12 - Post Retirement Benefits . Core Molding Technologies had a liability for post retirement healthcare benefits based on actuarially computed estimates of $6,625,000 at December 31, 2022 and $9,080,000 at December 31, 2021.
The effect of a change in healthcare costs is described in Note 12 - Post Retirement Benefits . Core Molding Technologies had a liability for post retirement healthcare benefits based on actuarially computed estimates of $3,116,000 at December 31, 2023 and $6,625,000 at December 31, 2022.
Shelf Registration On December 11, 2020 the Company filed a universal shelf Registration Statement on Form S-3 (the “Registration Statement”) with the SEC in accordance with the Securities Act of 1933, as amended, which became effective on December 16, 2020. The Registration Statement replaces an existing shelf Registration Statement which expired on November 14, 2020.
Shelf Registration On December 22, 2023 the Company filed a universal shelf Registration Statement on Form S-3 (the “Registration Statement”) with the SEC in accordance with the Securities Act of 1933, as amended, which became effective on January 8, 2024. The Registration Statement replaces an existing shelf Registration Statement which expired on December 16, 2023.
If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company has determined that a no allowance for doubtful accounts is needed at December 31, 2022 and $90,000 at December 31, 2021.
If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. The Company determined that no allowance for doubtful accounts was needed at December 31, 2023 or December 31, 2022, respectively.
ABR is the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 0.50% per annum and (c) Daily Simple SOFR for such day (taking into account any floor set forth in the definition of “Daily Simple SOFR”) plus 1.00% per annum; provided, that if the ABR shall be less than 0.00%, then ABR shall be deemed to be 0.00%.
ABR is the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 0.50% per annum and (c) Daily Simple SOFR for such day (taking into account any floor set forth in the definition of “Daily Simple SOFR”) plus 1.00% per annum; provided, that if the ABR shall be less than 0.00%, then ABR shall be deemed to be 0.00%. 24 Table of Contents SOFR Loans bear interest at a per annum rate equal to Daily Simple SOFR plus a margin of 180 to 230 basis points determined based on the Company’s leverage ratio.
Included in total sales were tooling project sales of $23,458,000 and $11,776,000 for the years ended December 31, 2021 and 2020, respectively. These sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis.
Included in total sales were tooling project sales of $10,363,000 and $18,675,000 for the years ended December 31, 2023 and 2022, respectively. These sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-to-period basis.
The gross margin percentage decrease was due to net changes in selling price and raw material cost of 4.8% offset by favorable product mix and production efficiencies of 0.5% and higher fixed cost leverage of 2.3%.
The gross margin percentage increase was due to net changes in selling price and raw material cost of 5.3% and favorable product mix and production efficiencies of 0.6%, offset by lower fixed cost leverage of 1.2% and unfavorable foreign currency impact of 0.6%.
Cash used in investing activities totaled $16,588,000 for the year ended December 31, 2022, primarily related to purchases of property, plant and equipment for additional capacity, automation, new programs and equipment improvements at the Company’s production facilities. Included in the $16,588,000 is approximately $8,800,000 of capacity expansion and automation investment.
Cash used in investing activities totaled $9,100,000 for the year ended December 31, 2023, primarily related to purchases of property, plant and equipment for additional capacity, automation, new programs and equipment improvements at the Company’s production facilities.
At December 31, 2022, the Company had $4,183,000 of cash on hand, an available revolving line of credit of $23,136,000 and capex line of credit of $25,000,000.
At December 31, 2023, the Company had $24,104,000 of cash on hand, an available revolving line of credit of $25,000,000 and capex line of credit of $25,000,000.
The decrease in cash from working capital was primarily related to net changes in accounts receivable and other accrued expenses, offset by net changes in accounts payable and inventory.
An increase in working capital of $3,812,000 resulted in a decrease in cash. The decrease in cash from working capital was primarily related to net changes in prepaid assets and accounts payable, offset by net changes in other accrued expenses, accounts receivable and inventory.
The Company anticipates spending approximately $13,000,000 on property, plant and equipment purchases for all of the Company's operations for the year ended December 31, 2023. The Company plans on using cash from operations and its revolving line of credit and revolving capex line of credit to finance capital expenditures.
The Company anticipates spending approximately $13,000,000 on property, plant and equipment purchases for all of the Company's operations for the year ended December 31, 2024. The Company plans on using cash on hand and cash from operations to finance capital expenditures. At December 31, 2023, purchase commitments for capital expenditures in progress were approximately $1,100,000.
The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment at the reporting unit level.
Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill. The Company accounts for goodwill in accordance with FASB ASC Topic 350, Intangibles - Goodwill and Other. FASB ASC Topic 350 prohibits the amortization of goodwill and requires these assets be reviewed for impairment at the reporting unit level.
Management reviews all available evidence, both positive and negative, to assess the long-term earnings potential of the Company using a number of alternatives to evaluate financial results in economic cycles at various industry volume conditions. The projected availability of taxable income to realize the tax benefits from the reversal of temporary differences before expiration of these benefits are also considered.
Management reviews all available evidence, both positive and negative, to assess the long-term earnings potential of the Company using a number of alternatives to evaluate financial results in economic cycles at various industry volume conditions.
Wells Fargo Loan On December 31, 2021, the Company had term loans (the "WF Term Loans") and a revolving loan (the "WF Revolving loan") with Wells Fargo Bank, National Association, with balances of $13,992,000 and $4,424,000, respectively. The Company’s term and revolving loans had variable interest rates on December 31, 2021 of 3.77% and 4.25%, respectively.
The parties agreed to a fixed interest rate of 5.50% and a term of 60 months. 25 Table of Contents Wells Fargo Loan On December 31, 2021, the Company had term loans (the "WF Term Loans") and a revolving loan (the "WF Revolving loan") with Wells Fargo Bank, National Association, with balances of $13,992,000 and $4,424,000, respectively.
Leaf Capital Funding On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment. The parties agreed to a fixed interest rate of 5.50% and a term of 60 months.
Leaf Capital Funding On April 24, 2020 the Company entered into a finance agreement with Leaf Capital Funding of $175,000 for equipment.
On July 22, 2022, all existing outstanding indebtedness of the Company owed to Wells Fargo Bank, National Association was repaid in full as part of the Huntington Credit Agreement.
The Company’s term and revolving loans had variable interest rates on December 31, 2021 of 3.77% and 4.25%, respectively. On July 22, 2022, all existing outstanding indebtedness of the Company owed to Wells Fargo Bank, National Association was repaid in full as part of the Huntington Credit Agreement.
The decrease was primarily related to a decrease in net income of $3,494,000 and a net decrease in hedging activities of $191,000. LIQUIDITY AND CAPITAL RESOURCES Cash Flow The Company’s primary sources of funds have been cash generated from operating activities and borrowings from third parties.
The increase was primarily related to an increase in net income of $7,532,000 and a net increase in post retirement benefit plan adjustments of $1,732,000. 23 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Cash Flow The Company’s primary sources of funds have been cash generated from operating activities and borrowings from third parties.
If the Company elects to bypass the qualitative assessment for the reporting unit, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of the reporting unit exceeds its fair value, the Company proceeds to a quantitative approach. 27 Table of Contents The Company performed a qualitative analysis for the years end December 31, 2022, 2021 and 2020, and determined there was no impairment of the Company’s goodwill.
If the Company elects to bypass the qualitative assessment for the reporting unit, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of the reporting unit exceeds its fair value, the Company proceeds to a quantitative approach.
As of December 31, 2022, the Company had outstanding foreign exchange contracts and interest rate swaps with notional amounts totaling $13,851,000 and $24,479,000, respectively. At December 31, 2021, the Company had no outstanding foreign exchange contracts and no outstanding interest rate swaps. Cash provided by operating activities totaled $18,982,000 for the year ended December 31, 2022.
As of December 31, 2023, the Company had outstanding foreign exchange contracts and interest rate swaps with notional amounts totaling $9,195,000 and $23,229,000, respectively. At December 31, 2022, the Company had outstanding foreign exchange contracts and interest rate swaps with notional amounts totaling $13,851,000 and $24,479,000, respectively.
During 2022, the Company recorded a valuation allowance of $1,154,000 against the entire state and local net loss carryforward and a portion of the interest limitation carryforward, due to cumulative losses in the United States over the last three years and uncertainty related to the Company’s ability to realize the deferred assets.
As of December 31, 2023, the Company had a valuation allowance of $1,530,000 against the deferred tax asset related to local tax positions in the United States, due to cumulative losses over the last three years and uncertainty related to the Company’s ability to realize the deferred assets.
We will adopt this ASU on its effective date of January 1, 2023. We do not expect the adoption of this ASU to have a material impact on our consolidated financial position, results of operations, cash flows, or presentation thereof.
We have adopted this ASU as of January 1, 2023 with no material impact on our consolidated financial position, results of operations, cash flows, or presentation thereof.
There have been no material changes in the methodology of these calculations. Inventories Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs.
Inventories Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or net realizable value. The inventories are accounted for using the first-in, first-out (FIFO) method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage.
The interest rate for the Huntington Revolving Loan and Huntington Term Loan was 6.12% and 6.10% as of December 31, 2022, respectively. In connection with the credit agreement, the Company incurred debt origination fees of $402,000 related to the Huntington Credit Agreement, which is being amortized over the life of the Credit Agreement.
In connection with the credit agreement, the Company incurred debt origination fees of $402,000 related to the Huntington Credit Agreement, which is being amortized over the life of the Credit Agreement. The aggregate unamortized deferred financing fees as of December 31, 2023 totaled $291,000.
The Huntington Credit Agreement makes available to the Company a revolving commitment in the maximum amount of $25,000,000 at the Company’s option at any time during the five-year period following the closing. The revolving loan commitment terminates, and all outstanding borrowings thereunder must be repaid on July 22, 2027.
The interest rate for the Huntington Revolving Loan was 7.11% as of December 31, 2023. The Huntington Credit Agreement makes available to the Company a revolving commitment in the maximum amount of $25,000,000 at the Company’s option at any time during the five-year period following the closing.
The aggregate unamortized deferred financing fees as of December 31, 2022 totaled $370,000. Huntington Term Loan Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a Term Loan commitment (the “Huntington Term Loan”) of $25,000,000 ($25,000,000 of which was advanced to the Company on July 22, 2022).
The revolving loan commitment terminates, and all outstanding borrowings thereunder must be repaid on July 22, 2027. Huntington Term Loan Pursuant to the terms of the Huntington Credit Agreement, Huntington made available to the Company a Term Loan commitment (the “Huntington Term Loan”) of $25,000,000 ($25,000,000 of which was advanced to the Company on July 22, 2022).
The following table provides aggregated information about the maturities of contractual obligations and other long-term liabilities as of December 31, 2022: 2023 2024 2025 2026 2027 and after Total Long-term debt $ 1,286,000 $ 1,549,000 $ 1,885,000 $ 2,135,000 $ 17,709,000 $ 24,564,000 Interest (A) 1,134,000 1,066,000 980,000 891,000 596,000 4,667,000 Operating lease obligations 1,716,000 1,722,000 1,065,000 979,000 189,000 5,671,000 Contractual commitments for capital expenditures 2,812,000 — — — — 2,812,000 Post retirement benefits 1,434,000 413,000 421,000 436,000 3,921,000 6,625,000 Total $ 8,382,000 $ 4,750,000 $ 4,351,000 $ 4,441,000 $ 22,415,000 $ 44,339,000 (A) Estimated future interest payments based on the effective interest rate as of December 31, 2022.
The following table provides aggregated information about the maturities of contractual obligations and other long-term liabilities as of December 31, 2023: 2024 2025 2026 2027 2028 and after Total Long-term debt $ 1,549,000 $ 1,885,000 $ 2,135,000 $ 17,709,000 $ — $ 23,278,000 Interest (A) 1,066,000 980,000 891,000 596,000 — 3,533,000 Operating lease obligations 2,137,000 1,122,000 594,000 189,000 — 4,042,000 Contractual commitments for capital expenditures 1,100,000 — — — — 1,100,000 Post retirement benefits 156,000 152,000 159,000 144,000 2,505,000 3,116,000 Total $ 6,008,000 $ 4,139,000 $ 3,779,000 $ 18,638,000 $ 2,505,000 $ 35,069,000 (A) Estimated future interest payments based on the effective interest rate as of December 31, 2023.
Goodwill The purchase consideration of acquired businesses have been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates. Based on these values, the excess purchase consideration over the fair value of the net assets acquired was allocated to goodwill.
There was no impairment of the Company's long-lived assets for the years ended December 31, 2023, 2022, and 2021. Goodwill The purchase consideration of acquired businesses have been allocated to the assets and liabilities acquired based on the estimated fair values on the respective acquisition dates.
The increase was primarily related to an increase in net income of $7,532,000 and a net increase in post retirement benefit plan adjustments of $1,732,000. 22 Table of Contents 2021 Compared to 2020 Net sales for the years ended December 31, 2021 and 2020 totaled $307,483,000 and $222,356,000, respectively.
Comprehensive income totaled $22,572,000 in 2023, compared with comprehensive income of $14,181,000 in 2022. The increase was primarily related to an increase in net income of $8,121,000. 22 Table of Contents 2022 Compared to 2021 Net sales for the years ended December 31, 2022 and 2021 totaled $377,376,000 and $307,483,000, respectively.
The Company’s income tax expense for the year ended December 31, 2021 includes statutory foreign tax expense from foreign taxable income offset by tax benefits, net of valuation allowances, for tax losses in the United States.
Income tax expense was approximately $5,422,000, or 21.3% of total income before income taxes for the year ended December 31, 2023. Income tax expense for the year ended December 31, 2022 was $2,382,000 and includes statutory foreign tax expense from foreign taxable income offset by tax benefits from tax losses in the United States.
Long-Lived Assets Long-lived assets consist primarily of property, plant and equipment and finite-lived intangibles. The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment.
The recoverability of long-lived assets is evaluated by an analysis of operating results and consideration of other significant events or changes in the business environment. The Company evaluates, whether impairment exists for long-lived assets on the basis of undiscounted expected future cash flows from operations before interest.
The Company's product sales for the year ended December 31, 2021 compared to the same period of 2020 by market are as follows (in thousands): 2021 2020 Medium and heavy-duty truck $ 114,805 $ 91,078 Power sports 60,230 35,226 Building products 44,981 41,026 Industrial and utilities 27,227 16,400 All other 36,782 26,850 Net product revenue $ 284,025 $ 210,580 Gross margin was approximately 13.4% of sales for the year ended December 31, 2021, compared with 15.5% for the year ended December 31, 2020.
The Company's product sales for the year ended December 31, 2023 compared to the same period of 2022 by market are as follows (in thousands): 2023 2022 Medium and heavy-duty truck $ 181,376 158,649 Power sports $ 84,688 84,727 Building products $ 28,743 41,038 Industrial and utilities $ 23,658 27,988 All other $ 28,910 46,299 Net product revenue $ 347,375 $ 358,701 Gross margin was approximately 18.0% of sales for the year ended December 31, 2023, compared with 13.9% for the year ended December 31, 2022.
As a result of restructuring of the Company's debt in 2020, the Company has lower average outstanding debt balance and lower interest rates during the year ended 2021, when compared to 2020. Income tax expense was approximately $4,248,000 of total income before income taxes for the year ended December 31, 2021.
The decrease in net interest expense was due to lower average senior debt balance for the year ended December 31, 2023, when compared to the same period in 2022. The Company also recognized $346,000 of interest income during the year ended December 31, 2023.
Business Outlook Looking forward, based on industry analyst projections, customers' forecasts, price changes and anticipated new program launches offset by programs reaching end of life, the Company expects revenues for 2023 to be flat to slightly higher than 2022.
Business Outlook Looking forward, based on industry analyst projections, customer forecasts, anticipated price changes, as well as anticipated new program launches, offset by current programs that we expect to begin to ramp down in the second half of 2024 as further described below, the Company expects revenues for calendar year 2024 to decrease by approximately 10 to 15 percent as compared to 2023.
Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage. The Company has recorded an allowance for slow moving and obsolete inventory of $433,000 at December 31, 2022 and $362,000 at December 31, 2021.
The Company has recorded an allowance for slow moving and obsolete inventory of $671,000 at December 31, 2023 and $433,000 at December 31, 2022. Long-Lived Assets Long-lived assets consist primarily of property, plant and equipment and finite-lived intangibles.
The Company evaluates provisions and deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available evidence. As of December 31, 2022 the Company had a net deferred tax asset of $3,462,000 consisting of $163,000, $893,000 and $2,406,000 related to tax positions in Canada, Mexico and the United States, respectively.
As of December 31, 2023 the Company had a net deferred tax asset of $370,000 consisting of net deferred tax asset of $1,595,000 related to tax positions in Mexico, offset by deferred tax liabilities of $1,182,000 and $43,000 related to tax positions in the United States and Canada.
The most significant impact to changes in revenues in 2023 compared to 2022 are expected from projected increases in medium and heavy-duty truck due to full year impact of 2022 program launches and price increases partially offset by expected decreases in the building products market.
The decrease in sales is primarily the result of lower demand from customers in building products and industrial and utilities industries, offset by higher demand from customers in the heavy-duty truck industry, full year impact of price increases related to the recoupment of raw material inflation costs, and revenues from new program launches.
The Company evaluates, whether impairment exists for long-lived assets on the basis of undiscounted expected future cash flows from operations before interest. There was no impairment of the Company's long-lived assets for the years ended December 31, 2022, 2021, and 2020.
The Company performed a qualitative analysis for the years end December 31, 2023, 2022 and 2021, and determined there was no impairment of the Company’s goodwill.
Product sales, excluding tooling project sales, for the year ended December 31, 2021 were $284,025,000 compared to $210,580,000 for the same period in 2020. The increase in sales is primarily the result of higher demand from the heavy-duty truck, power sports, and consumer product markets and the recoupment of raw material inflation costs.
Product sales, excluding tooling project sales, for the year ended December 31, 2023 were $347,375,000 compared to $358,701,000 for the same period in 2022.
Removed
The Company will continue to monitor customer projections for impacts of ongoing monetary tightening conditions in North America. The Company experienced raw material price stabilization in the later part of 2022 for most of the Company's significant raw materials and anticipates raw material prices to remain stable in 2023 at elevated levels above historic raw material cost levels.
Added
Additional factors contributing to our anticipated 2024 revenue outlook include an expected cyclical demand slowdown, decreased customer inventory builds due to stabilizing inventory levels as well as a consumer demand environment that is more consistent with pre-pandemic levels.
Removed
The Company experienced lower commodity resin prices in 2022 as compared to 2021, but those costs have stabilized and the Company anticipates those costs will remain flat for 2023. Labor markets in Company locations have stabilized although wage rates remain elevated and pressure on wage rates is expected to continue in 2023.
Added
Beginning in the second half of 2024 and continuing through 2026, the Company’s business with Volvo will begin transitioning from existing programs that the Company currently supplies to new programs that the Company does not support.
Removed
If labor costs continue to increase, the Company will continue to pursue customer price increases, where such increases will not have a significant negative impact on demand. 21 Table of Contents 2022 compared to 2021 Net sales for the years ended December 31, 2022 and 2021 totaled $377,376,000 and $307,483,000, respectively.
Added
Notwithstanding this transition and the completion of existing programs with Volvo, the Company continues to actively bid for new Volvo business, which we believe we will continue to secure outside of the current programs.
Removed
Included in selling, general and administrative (“SG&A”) for the year ended December 31, 2021 are closure costs of $2,027,000 related to the manufacturing facility in Batavia, Ohio. Excluding closing costs, remaining SG&A costs for the year ended December 31, 2021 totaled $28,249,000, compared to $24,084,000 in 2020.
Added
Going forward we remain focused on continuing to replace phased out business from existing programs with new programs from Volvo or other customers. 21 Table of Contents The Company’s raw material supply chains remain stable, and the Company anticipates raw material pricing in 2024 to remain flat or slightly higher as compared to 2023.
Removed
The increase in SG&A expense primarily resulted from higher labor and benefit costs of $1,355,000, insurance costs of $505,000 and higher travel costs of $233,000. SG&A expenses for the year ended December 31, 2020 were favorably impacted from COVID-19 related government subsidies of $1,416,000, which the Company did not receive in 2021.
Added
Labor markets have also stabilized, although at higher cost levels over the past several years. The Company does not anticipate challenges in hiring hourly labor, although management believes wage pressure will continue, especially in Mexico. 2023 compared to 2022 Net sales for the years ended December 31, 2023 and 2022 totaled $357,738,000 and $377,376,000, respectively.
Removed
Interest expense totaled $2,311,000 for the year ended December 31, 2021, compared to interest expense of $5,923,000 for the year ended December 31, 2020.
Added
Selling, general and administrative expense ("SG&A") totaled $37,983,000 for the year ended December 31, 2023, compared to $34,399,000 in 2022. The increase in SG&A expense primarily resulted from higher labor and benefit costs of $2,150,000, higher bonus of $907,000 and higher professional fees of $627,000.
Removed
The decrease in interest expense was primarily due to incurring for the year ended December 31, 2020 a loss on termination of interest rate swaps of $1,253,000 and a one-time expense related to the deferred loan costs for the debt refinancing of $583,000.
Added
In connection with the decrease in sales, the Company has recognized a one-time severance expense totaling $570,000. During the year ended December 31, 2022, the Company refinanced its existing credit facility.
Removed
Income tax benefit for the year ended December 31, 2020 was $3,618,000 and includes net valuation allowance change of $2,074,000 and a rate benefit of $3,205,000 based on losses being carried back to years where the Company paid tax at 34% compared to the valuation of the losses being recorded at the 21% current U.S. statutory tax rate.
Added
As a result, the Company recorded one-time losses of $1,234,000 from writing off outstanding deferred loan costs and $348,000 from prepayment fees associated with the repayment of the FGI Term Loan. Interest expense totaled $1,011,000 for the year ended December 31, 2023, compared to interest expense of $1,960,000 for the year ended December 31, 2022.
Removed
The Company recorded net income for 2021 of $4,671,000 or $0.55 per basic and diluted share, compared with net income of $8,165,000 or $0.98 per basic and diluted share for 2020. Comprehensive income totaled $4,371,000 in 2021, compared to a comprehensive income of $8,170,000 in 2020.
Added
Income tax expense for the year ended December 31, 2022, also includes a valuation allowance reversal of $2,363,000 related to deferred tax assets related to the federal jurisdiction in the United States. The Company recorded net income for 2023 of $20,324,000 or $2.31 per diluted share, compared with net income of $12,203,000 or $1.44 per diluted share for 2022.
Removed
At December 31, 2022, purchase commitments for capital expenditures in progress were approximately $2,812,000. Cash used in financing activities totaled $4,357,000 for the year ended December 31, 2022.
Added
Cash used in financing activities totaled $5,821,000 for the year ended December 31, 2023. Cash activity primarily consisted of the purchase of treasury stock of $2,669,000 in exchange for payment of taxes related to net share settlements of equity awards, net repayments of revolving loans of $1,864,000 and repayments of principal on outstanding term loans of $1,288,000.
Removed
Cash activity primarily consisted of repayments of principal on outstanding term loans of $25,913,000 and net repayments of revolving loans of $2,560,000, offset by proceeds from the Company's new credit facility with Huntington National Bank of $25,000,000. The Company's deposit with FGI of $1,200,000 was utilized to repay long-term debt.
Added
The projected availability of taxable income to realize the tax benefits from the reversal of temporary differences before expiration of 28 Table of Contents these benefits are also considered. The Company evaluates provisions and deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available evidence.
Removed
SOFR Loans bear interest at a per annum rate equal to Daily Simple SOFR plus a margin of 180 to 230 basis points determined based on the Company’s leverage ratio.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeCore Molding Technologies has the following three items that are sensitive to market risks at December 31, 2022: (1) Term Loans and Revolving Loan which bear a variable interest rate; (2) foreign currency purchases in which the Company purchases Mexican Pesos or Canadian Dollars with United States dollars to meet certain obligations that arise due to operations at the facilities located in Mexico or Canada; and (3) raw material purchases in which Core Molding Technologies purchases various resins and fiberglass for use in production.
Biggest changeCore Molding Technologies has the following three items that are sensitive to market risks at December 31, 2023: (1) Term Loans and Revolving Loan which bear a variable interest rate; (2) foreign currency purchases in which the Company purchases Mexican Pesos or Canadian Dollars with United States dollars to meet certain obligations that arise due to operations at the facilities located in Mexico or Canada; and (3) raw material purchases in which Core Molding Technologies purchases various resins and fiberglass for use in production.

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