Company Quick10K Filing
Alamo Group
10-Q 2021-09-30 Filed 2021-11-03
10-Q 2021-06-30 Filed 2021-08-04
10-Q 2021-03-31 Filed 2021-05-06
10-K 2020-12-31 Filed 2021-02-26
10-Q 2020-09-30 Filed 2020-10-28
10-Q 2020-06-30 Filed 2020-07-30
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-28
10-Q 2019-09-30 Filed 2019-10-31
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-05-01
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-10-31
10-Q 2018-06-30 Filed 2018-08-01
10-Q 2018-03-31 Filed 2018-05-03
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-10-31
10-Q 2017-06-30 Filed 2017-08-02
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-03-07
10-Q 2016-09-30 Filed 2016-11-04
10-Q 2016-06-30 Filed 2016-08-05
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-03-04
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-03-06
10-Q 2014-09-30 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-03-11
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-05
10-Q 2013-03-31 Filed 2013-05-03
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-07
10-K 2011-12-31 Filed 2012-03-12
10-Q 2011-09-30 Filed 2011-11-04
10-Q 2011-06-30 Filed 2011-08-05
10-Q 2011-03-31 Filed 2011-05-06
10-K 2010-12-31 Filed 2011-03-15
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-06
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-03-15
8-K 2020-12-10
8-K 2020-10-28
8-K 2020-07-29
8-K 2020-05-11
8-K 2020-05-06
8-K 2020-04-07
8-K 2020-03-30
8-K 2020-03-26
8-K 2020-03-19
8-K 2020-03-10
8-K 2020-02-27
8-K 2019-12-13
8-K 2019-11-04
8-K 2019-10-30
8-K 2019-10-29
8-K 2019-09-11
8-K 2019-09-11
8-K 2019-07-31
8-K 2019-05-02
8-K 2019-05-02
8-K 2019-05-01
8-K 2019-03-06
8-K 2019-02-28
8-K 2018-10-31
8-K 2018-08-01
8-K 2018-05-03
8-K 2018-05-03
8-K 2018-04-06
8-K 2018-03-12
8-K 2018-03-01

ALG 10Q Quarterly Report

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risks
Item 4. Controls and Procedures
Part II. Other Information
Item 1. - Legal Proceedings
Item 1A. - Risk Factors
Item 2. - Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. - Defaults Upon Senior Securities
Item 4. - Mine Safety Disclosures
Item 5. - Other Information
Item 6. - Exhibits
EX-18.1 lifopreferabilityletter-ex.htm
EX-31.1 a2021930-ex311.htm
EX-31.2 a2021930-ex312.htm
EX-32.1 a2021930-ex321.htm
EX-32.2 a2021930-ex322.htm

Alamo Group Earnings 2021-09-30

Balance SheetIncome StatementCash Flow

alg-20210930
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE TRANSITION PERIOD FROM ____ TO ____

Commission file number 0-21220
ALAMO GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware
74-1621248
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)

 1627 East Walnut, Seguin, Texas  78155
(Address of principal executive offices, including zip code)
 
830-379-1480
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value
$.10 per share
ALGNew York Stock Exchange

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

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

At October 29, 2021, 11,923,746 shares of common stock, $.10 par value, of the registrant were outstanding.


1


Alamo Group Inc. and Subsidiaries
 
INDEX
 
                                                                                                                                                                              
PART I.
FINANCIAL INFORMATION
PAGE
Item 1.
Interim Condensed Consolidated Financial Statements  (Unaudited)
September 30, 2021 and December 31, 2020
Three and Nine Months Ended September 30, 2021 and September 30, 2020
Three and Nine Months Ended September 30, 2021 and September 30, 2020
Three and Nine Months Ended September 30, 2021 and September 30, 2020
Nine Months Ended September 30, 2021 and September 30, 2020
Item 2.
Item 3.
Item 4.
PART II.
Item 1.
Legal Proceedings
Item 1A.
Risk Factors
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.
Defaults Upon Senior Securities
Item 4.
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits

2


Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Balance Sheets
(Unaudited) 
 
(in thousands, except share amounts)
September 30, 2021December 31, 2020
As Adjusted
ASSETS
Current assets:
Cash and cash equivalents
$89,189 $50,195 
Accounts receivable, net
245,517 209,276 
Inventories, net
294,270 242,501 
Prepaid expenses and other current assets
6,741 7,382 
Income tax receivable
66 6,186 
Total current assets
635,783 515,540 
Rental equipment, net
36,244 42,266 
Property, plant and equipment
316,347 312,362 
Less:  Accumulated depreciation
(168,557)(156,928)
Total property, plant and equipment, net
147,790 155,434 
Goodwill
193,572 195,132 
Intangible assets, net
181,516 193,172 
Deferred income taxes
2,004 1,203 
Other non-current assets
20,869 19,112 
Total assets
$1,217,778 $1,121,859 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable
$107,059 $75,317 
Income taxes payable
6,425 2,278 
Accrued liabilities
67,183 64,634 
Current maturities of long-term debt and finance lease obligations
15,059 15,066 
Total current liabilities
195,726 157,295 
Long-term debt and finance lease obligations, net of current maturities
279,215 270,320 
Long-term tax liability
4,408 3,954 
Deferred pension liability
963 1,731 
Other long-term liabilities
28,095 30,744 
Deferred income taxes
17,709 22,812 
Stockholders’ equity:
Common stock, $0.10 par value, 20,000,000 shares authorized; 11,870,513 and 11,809,926 outstanding at September 30, 2021 and December 31, 2020, respectively
1,187 1,181 
Additional paid-in-capital
123,446 118,528 
Treasury stock, at cost; 82,600 shares at September 30, 2021 and December 31, 2020, respectively
(4,566)(4,566)
Retained earnings
616,235 560,186 
Accumulated other comprehensive loss
(44,640)(40,326)
Total stockholders’ equity
691,662 635,003 
Total liabilities and stockholders’ equity
$1,217,778 $1,121,859 

See accompanying notes.
3


Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands, except per share amounts)2021202020212020
Net sales:
Industrial
$218,988 $196,241 $662,106 $608,473 
Agricultural
119,323 95,518 334,944 266,369 
Total net sales338,311 291,759 997,050 874,842 
Cost of sales252,015 213,123 746,188 649,441 
Gross profit86,296 78,636 250,862 225,401 
Selling, general and administrative expenses52,586 44,069 150,803 136,868 
Amortization expense3,667 3,644 10,988 11,093 
Income from operations
30,043 30,923 89,071 77,440 
Interest expense(2,660)(3,461)(8,127)(12,921)
Interest income296 306 877 968 
Other income (expense), net36 (333)2,659 720 
Income before income taxes
27,715 27,435 84,480 66,207 
Provision for income taxes10,196 7,402 23,462 17,657 
Net Income
$17,519 $20,033 $61,018 $48,550 
Net income per common share:
Basic
$1.48 $1.70 $5.16 $4.12 
Diluted
$1.47 $1.69 $5.13 $4.10 
Average common shares:
Basic
11,842 11,788 11,835 11,776 
Diluted
11,900 11,851 11,895 11,840 
Dividends declared$0.14 $0.13 $0.42 $0.39 
 
 See accompanying notes.
 
4


Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2021202020212020
Net income$17,519 $20,033 $61,018 $48,550 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax expense of $(321) and zero, and $(436) and zero, respectively
(9,216)8,606 (8,660)(6,244)
Recognition of deferred pension and other post-retirement benefits, net of tax expense of $(67) and $(51), and $(201) and $(155), respectively
251 194 754 582 
Unrealized income (loss) on derivative instruments, net of tax (expense) benefit of $(354) and $205, and $(955) and $1,586, respectively
1,331 (986)3,592 (6,520)
Other comprehensive income (loss), net of tax
(7,634)7,814 (4,314)(12,182)
Comprehensive income$9,885 $27,847 $56,704 $36,368 

See accompanying notes.


5



Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Stockholders’ Equity
 (Unaudited)

For nine months ended September 30, 2021
Common Stock
Additional
Paid-in Capital
Treasury StockRetained Earnings
Accumulated
Other
Comprehensive Loss
Total Stock-
holders’ Equity
(in thousands)
SharesAmount
Balance at December 31, 202011,727 $1,181 $118,528 $(4,566)$560,186 $(40,326)$635,003 
Other comprehensive income
— — — — 17,462 (1,586)15,876 
Stock-based compensation expense
— — 1,240 — — — 1,240 
Stock-based compensation transactions
29 3 773 — — — 776 
Dividends paid ($0.14 per share)
— — — — (1,654)— (1,654)
Balance at March 31, 202111,756 $1,184 $120,541 $(4,566)$575,994 $(41,912)$651,241 
Other comprehensive income— — — — 26,037 4,906 30,943 
Stock-based compensation expense
— — 1,316 — — — 1,316 
Stock-based compensation transactions
23 2 (604)— — — (602)
Dividends paid ($0.14 per share)
— — — — (1,657)— (1,657)
Balance at June 30, 202111,779 $1,186 $121,253 $(4,566)$600,374 $(37,006)$681,241 
Other comprehensive income— — — — 17,519 (7,634)9,885 
Stock-based compensation expense
— — 2,840 — — — 2,840 
Stock-based compensation transactions
9 1 (647)— — — (646)
Dividends paid ($0.14 per share)
— — — — (1,658)— (1,658)
Balance at September 30, 202111,788 $1,187 $123,446 $(4,566)$616,235 $(44,640)$691,662 


6


For nine months ended September 30, 2020
Common Stock
Additional Paid-in Capital
Treasury StockRetained Earnings
Accumulated
Other
Comprehensive Loss
Total Stock-
holders’ Equity
(in thousands)SharesAmount
Balance at December 31, 201911,670 $1,175 $113,666 $(4,566)$500,320 $(40,838)$569,757 
Other comprehensive income
— — — — 15,528 (24,650)(9,122)
Stock-based compensation expense
— — 933 — — — 933 
Stock-based compensation transactions
9 1 368 — — — 369 
  Dividends paid ($0.13 per share)
— — — — (1,528)— (1,528)
Balance at March 31, 202011,679 $1,176 $114,967 $(4,566)$514,320 $(65,488)$560,409 
Other comprehensive income— — — — 12,989 4,654 17,643 
Stock-based compensation expense
— — 1,103 — — — 1,103 
Stock-based compensation transactions
25 3 (476)— — — (473)
Dividends paid ($0.13 per share)
— — — — (1,531)— (1,531)
Balance at June 30, 202011,704 $1,179 $115,594 $(4,566)$525,778 $(60,834)$577,151 
Other comprehensive income— — — — 20,033 7,814 27,847 
Stock-based compensation expense
— — 1,079 — — — 1,079 
Stock-based compensation transactions
16 1 666 — — — 667 
Dividends paid ($0.13 per share)
— — — — (1,531)— (1,531)
Balance at September 30, 202011,720 $1,180 $117,339 $(4,566)$544,280 $(53,020)$605,213 


See accompanying notes.

7


Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(in thousands)20212020
Operating Activities
Net income$61,018 $48,550 
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts
133 541 
Depreciation - Property, plant and equipment
15,798 14,237 
Depreciation - Rental equipment
6,562 7,504 
Amortization of intangibles
10,988 11,093 
Amortization of debt issuance
500 500 
Stock-based compensation expense
5,396 3,115 
Provision for deferred income tax (benefit)(6,705)(4,548)
Gain on sale of property, plant and equipment
(4,162)(1,037)
Changes in operating assets and liabilities:
Accounts receivable
(38,106)17,612 
Inventories
(54,408)22,893 
Rental equipment
(540)4,189 
Prepaid expenses and other assets
(1,668)5,765 
Trade accounts payable and accrued liabilities
36,331 (2,422)
Income taxes payable
10,266 8,432 
Long-term tax payable454 (654)
Other assets and long-term liabilities, net
1,530 205 
Net cash provided by operating activities
43,387 135,975 
Investing Activities
Purchase of property, plant and equipment(14,584)(14,962)
Proceeds from sale of property, plant and equipment9,287 3,433 
Purchase of patents(44) 
Net cash used in investing activities(5,341)(11,529)
Financing Activities
Borrowings on bank revolving credit facility128,000 98,000 
Repayments on bank revolving credit facility(108,000)(153,000)
Principal payments on long-term debt and finance leases(11,308)(15,094)
Dividends paid(4,969)(4,590)
Proceeds from exercise of stock options1,485 1,272 
Common stock repurchased(1,957)(710)
Net cash provided (used) by financing activities3,251 (74,122)
Effect of exchange rate changes on cash and cash equivalents(2,303)880 
Net change in cash and cash equivalents38,994 51,204 
Cash and cash equivalents at beginning of the year50,195 42,311 
Cash and cash equivalents at end of the period$89,189 $93,515 
Cash paid during the period for:
Interest
$7,839 $14,149 
Income taxes
20,151 13,309 
See accompanying notes.
8


Alamo Group Inc. and Subsidiaries
Notes to Interim Condensed Consolidated Financial Statements - (Unaudited)
September 30, 2021
 
1.  Basis of Financial Statement Presentation

General

The accompanying unaudited interim condensed consolidated financial statements of Alamo Group Inc. and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.  The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2020 (the "2020 10-K").

Effective July 1, 2021, the Company changed its method of accounting for its U.S. inventories currently accounted for under last-in, first-out ("LIFO") method to the first-in, first-out ("FIFO") method. The Company applied this change retrospectively for all prior periods presented and is discussed in further detail in Note 2.

Accounting Pronouncements Adopted on January 1, 2021

In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” to simplify the accounting for income taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance became effective for us on January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. This Topic provides accounting relief for the transition away from LIBOR and certain other reference rates. The amendments for this update are effective through December 31, 2022. The Company is evaluating the impact the adoption of this standard will have on our financial statements.

2. Accounting Policies

Inventory Valuation

Inventories are stated at the lower of cost or net realizable value. Effective July 1, 2021, the Company changed its method of accounting for its U.S. inventories currently accounted for under the LIFO method to the FIFO method. Total U.S. inventories that utilized the LIFO cost method represented 41% of the Company's total inventory as of December 31, 2020 prior to this change in method. The Company believes the FIFO method is preferable because it: (i) more accurately matches cost of sales with the related revenues as the FIFO method more accurately resembles the physical flow of inventory and; (ii) conforms all of the Company’s consolidated inventory to a single method of accounting. The Company also notes that the revised policy improves comparability with many of the Company's peers.

The Company applied this change retrospectively to all periods presented. There was an immaterial impact to the Company’s Consolidated Income Statement and Consolidated Statement of Cash Flows for the three and nine
months ended September 30, 2020 and 2021. The following financial statement line items in the Company's Consolidated Balance Sheet as of December 31, 2020 was adjusted as follows:
9



Consolidated Balance Sheets
(in thousands)
December 31, 2020
As Originally ReportedEffect of ChangeAs Adjusted
Inventories, net
$229,971 $12,530 $242,501 
Deferred income taxes (liability)
19,642 3,170 22,812 
Retained earnings550,826 9,360 560,186 
3.  Accounts Receivable

Accounts receivable is shown net of sales discounts and the allowance for credit losses.

At September 30, 2021 the Company had $10.5 million in reserves for sales discounts compared to $13.5 million at December 31, 2020 related to products shipped to our customers under various promotional programs.
 
4.  Inventories
 
Net inventories consist of the following:
(in thousands)
September 30, 2021December 31, 2020
As Adjusted
Finished goods
$253,430 $208,656 
Work in process
23,876 21,225 
Raw materials
16,964 12,620 
Inventories, net$294,270 $242,501 
 
Inventory obsolescence reserves were $10.7 million at September 30, 2021 and $12.0 million at December 31, 2020.

5. Rental Equipment

Rental equipment is shown net of accumulated depreciation of $20.8 million and $18.0 million at September 30, 2021 and December 31, 2020, respectively. The Company recognized depreciation expense of $2.1 million and $2.3 million for the three months ended September 30, 2021 and 2020, respectively and $6.6 million and $7.5 million for the nine months ended September 30, 2021 and 2020, respectively.

6.  Fair Value Measurements
 
The carrying values of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximate their fair value because of the short-term nature of these items. The carrying value of our debt approximates the fair value as of September 30, 2021 and December 31, 2020, as the floating rates on our outstanding balances approximate current market rates. This conclusion was made based on Level 2 inputs.

10


7. Goodwill and Intangible Assets

The following is the summary of changes to the Company's Goodwill for the nine months ended September 30, 2021:
IndustrialAgriculturalConsolidated
(in thousands)
Balance at December 31, 2020$181,338 $13,794 $195,132 
Translation adjustment(1,244)(316)(1,560)
Balance at September 30, 2021$180,094 $13,478 $193,572 

The following is a summary of the Company's definite and indefinite-lived intangible assets net of the accumulated amortization:
(in thousands)
Estimated Useful Lives
September 30, 2021December 31, 2020
Definite:
Trade names and trademarks
15-25 years
$67,264 $67,770 
Customer and dealer relationships
8-15 years
122,350 122,470 
Patents and drawings
3-12 years
28,593 28,764 
Favorable leasehold interests
7 years
4,200 4,200 
Total at cost222,407 223,204 
Less accumulated amortization(46,391)(35,532)
Total net176,016 187,672 
Indefinite:
Trade names and trademarks5,500 5,500 
Total Intangible Assets$181,516 $193,172 

The Company recognized amortization expense of $3.7 million and $3.6 million for the three months ended September 30, 2021 and 2020, respectively, and $11.0 million and $11.1 million for the nine months ended September 30, 2021 and 2020, respectively.

8.  Leases

The Company leases office space and equipment under various operating and finance leases, which generally are expected to be renewed or replaced by other leases. The finance leases currently held are considered immaterial. The components of lease cost were as follows:
Components of Lease Cost
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2021202020212020
Finance lease cost:
     Amortization of right-of-use assets$17 $22 $51 $70 
     Interest on lease liabilities1 1 3 5 
Operating lease cost1,464 1,216 3,985 3,624 
Short-term lease cost365 150 822 608 
Variable lease cost87 120 300 364 
Total lease cost$1,934 $1,509 $5,161 $4,671 

Rent expense for the three and nine months ended September 30, 2021 and 2020 was immaterial.

11


Maturities of operating lease liabilities were as follows:
Future Minimum Lease Payments
(in thousands)September 30, 2021December 31, 2020
2021$1,391 *$4,072 
20224,797 3,063 
20233,440 2,089 
20242,329 1,465 
20251,704 1,244 
Thereafter4,182 3,622 
Total minimum lease payments$17,843 $15,555 
Less imputed interest(1,278)(1,310)
Total operating lease liabilities$16,565 $14,245 
*Period ended September 30, 2021 represents the remaining three months of 2021.
Future Lease Commencements

As of September 30, 2021, there are additional operating leases, primarily for buildings, that have not yet commenced in the amount of $1.2 million. These operating leases will commence in fiscal year 2021 with lease terms of 2 to 5 years.

Supplemental balance sheet information related to leases was as follows:
Operating Leases
(in thousands)September 30, 2021December 31, 2020
Other non-current assets
$16,400 $14,144 
Accrued liabilities4,742 3,680 
Other long-term liabilities11,823 10,565 
    Total operating lease liabilities$16,565 $14,245 
Weighted Average Remaining Lease Term5.14 years5.83 years
Weighted Average Discount Rate2.85 %3.04 %

Supplemental Cash Flow information related to leases was as follows:
Nine Months Ended
September 30,
(in thousands)20212020
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$3,603 $3,362 

12


9. Debt

The components of long-term debt are as follows:
 
(in thousands)
September 30, 2021December 31, 2020
Current Maturities:
    Finance lease obligations$59 $66 
    Term debt15,000 15,000 
15,059 15,066 
Long-term debt:
     Finance lease obligations
33 87 
Term debt, net254,182 265,233 
     Bank revolving credit facility25,000 5,000 
         Total Long-term debt279,215 270,320 
Total debt$294,274 $285,386 

As of September 30, 2021, $2.4 million of the revolver capacity was committed to irrevocable standby letters of credit issued in the ordinary course of business as required by vendors' contracts, resulting in $191.6 million in available borrowings.

10.  Common Stock and Dividends
 
Dividends declared and paid on a per share basis were as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Dividends declared
$0.14 $0.13 $0.42 $0.39 
Dividends paid
$0.14 $0.13 $0.42 $0.39 

On October 1, 2021, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.14 per share, which was paid on October 28, 2021, to shareholders of record at the close of business on October 15, 2021.
 
11.  Earnings Per Share

The following table sets forth the reconciliation from basic to diluted average common shares and the calculations of net income per common share.  Net income for basic and diluted calculations do not differ.
Three Months Ended
September 30,
Nine Months Ended
September 30,
(In thousands, except per share)
2021202020212020
Net Income
$17,519 $20,033 $61,018 $48,550 
Average Common Shares:
Basic (weighted-average outstanding shares)
11,842 11,788 11,835 11,776 
Dilutive potential common shares from stock options
58 63 60 64 
Diluted (weighted-average outstanding shares)
11,900 11,851 11,895 11,840 
Basic earnings per share
$1.48 $1.70 $5.16 $4.12 
Diluted earnings per share
$1.47 $1.69 $5.13 $4.10 

13


12.  Revenue and Segment Information

Revenues from Contracts with Customers

Disaggregation of revenue is presented in the tables below by product type and by geographical location. Management has determined that this level of disaggregation would be beneficial to users of the financial statements.
Revenue by Product Type
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2021202020212020
Net Sales
Wholegoods
$251,712 $212,918