CORE MOLDING TECHNOLOGIES INC - Interim / Quarterly Report 2020

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM10-Q

☑QUARTERLYREPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

OF1934

For the quarterly period ended September30, 2020

☐TRANSITION REPORTPURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

OF 1934

for the transition period fromTo

Commission File Number001-12505

CORE MOLDING TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

Delaware31-1481870 (State or other jurisdiction(I.R.S. Employer Identification No.)
incorporation or organization)

800 Manor Park Drive,Columbus,Ohio43228-0183 (Address of principal executive office)(Zip Code)
Registrant’s telephone number, including area code (614)870-5000 N/A _________ Former name, former address and former fiscal year, if changed since last report.
Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12months (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 90days.Yes☑No☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule405 of RegulationS-T (§232.405 of this chapter) during the preceding 12months (or for such shorter period that the registrant was required to submit such files).Yes☑No☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer,” “large accelerated filer,” and “smaller reporting company,” in Rule12b- 2 of the Exchange Act.
Large accelerated filer☐Accelerated filer☐Non-accelerated filer☐Smaller reporting company☑ (Do not check if a 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 Rule12b-2 of the Exchange Act. Yes☐No☑

Securities registered pursuant to Section 12(b) of the Act:

Title of each className of each exchange on which registeredTrading Symbol Common Stock, par value $0.01NYSE American LLCCMT

As of November 6, 2020, the latest practicable date,8,496,655shares of the registrant’s common stock were issued, which includes524,782shares of unvested restricted common stock.

Table of Contents| Notes to Consolidated Financial Statements | 9 |
| --- | --- |
| Item2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 27 |
| Item3. Quantitative and Qualitative Disclosures About Market Risk | 34 |
| Item4. Controls and Procedures | 35 |
| Part II — Other Information | |
| Item1. Legal Proceedings | 36 |
| Item1A. Risk Factors | 36 |
| Item2. Unregistered Sales of Equity Securities and Use of Proceeds | 36 |
| Item3. Defaults Upon Senior Securities | 36 |
| Item4. Mine Safety Disclosures | 37 |
| Item5. Other Information | 37 |
| Item6. Exhibits | 37 |
| Signatures | 38 |
| Index to Exhibits | 39 |

Table of Contents

Item 1. Financial Statements

Part I — Financial Information

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Income (Loss)

(Unaudited)| | | September 30, | | | September 30, | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2020 | | 2019 | 2020 | | 2019 |
| Net sales | $59,873,000 | $ | 74,655,000 | $161,705,000 | $ | 228,168,000 |

Cost of sales49,035,00068,171,000137,192,000210,043,000

Gross margin10,838,0006,484,00024,513,00018,125,000| Selling, general and administrative expense | 6,517,000 | 7,041,000 | 17,136,000 | 21,431,000 |
| --- | --- | --- | --- | --- |
| Goodwill impairment | — | 4,100,000 | — | 4,100,000 |
| Total expenses | 6,517,000 | 11,141,000 | 17,136,000 | 25,531,000 |

Operating income (loss)4,321,000( 4,657,000 )7,377,000( 7,406,000 )| Other income and expense | | | | |
| --- | --- | --- | --- | --- |
| Interest expense | 966,000 | 1,113,000 | 3,338,000 | 2,878,000 |
| Net periodic post-retirement benefit | ( 20,000 ) | ( 23,000 ) | ( 60,000 ) | ( 71,000 ) |
| Total other expense | 946,000 | 1,090,000 | 3,278,000 | 2,807,000 |

Income (loss) before taxes3,375,000( 5,747,000 )4,099,000( 10,213,000 )

Income tax expense (benefit)32,000378,000( 4,933,000 )( 452,000 )

Net income (loss)$3,343,000$( 6,125,000 )$9,032,000$( 9,761,000 )| Net income (loss) per common share: | | | | | |
| --- | --- | --- | --- | --- | --- |
| Basic | $ | 0.39$ | ( 0.78 )$ | 1.07$ | ( 1.25 ) |
| Diluted | $ | 0.39$ | ( 0.78 )$ | 1.07$ | ( 1.25 ) |

See notes to unaudited consolidated financial statements.

Table of Contents

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)| | | September 30, | | | September 30, | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2020 | | 2019 | 2020 | | 2019 |
| Net income (loss) | $3,343,000 | $ | ( 6,125,000 ) | $9,032,000 | $ | ( 9,761,000 ) |

Other comprehensive income (loss):| Foreign currency hedging derivatives: | | | | |
| --- | --- | --- | --- | --- |
| Unrealized hedge gain (loss) | 415,000 | ( 254,000 ) | ( 456,000 ) | 539,000 |
| Income tax benefit (expense) | ( 88,000 ) | 58,000 | 98,000 | ( 144,000 ) |

Interest rate swaps:
Unrealized hedge gain (loss)	172,000	( 87,000 )	( 550,000 )	( 809,000 )
Income tax benefit (expense)	( 39,000 )	20,000	125,000	184,000

Post retirement benefit plan adjustments:
Net actuarial gain	46,000	28,000	136,000	88,000
Prior service costs	( 124,000 )	( 122,000 )	( 372,000 )	( 372,000 )
Income tax benefit	17,000	20,000	50,000	60,000

Comprehensive income (loss)$3,742,000$( 6,462,000 )$8,063,000$( 10,215,000 )

See notes to unaudited consolidated financial statements.

Table of Contents

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

September 30,

December 31,| Current assets: | | |
| --- | --- | --- |
| Cash and cash equivalents | $14,809,000 | $1,856,000 |
| Accounts receivable, net | 26,306,000 | 32,424,000 |
| Inventories, net | 15,233,000 | 21,682,000 |
| Income tax receivable | 2,657,000 | 652,000 |
| Prepaid expenses and other current assets | 3,688,000 | 4,611,000 |
| Total current assets | 62,693,000 | 61,225,000 |

Right of use asset	3,506,000	4,484,000
Property, plant and equipment, net	75,207,000	79,206,000
Goodwill	17,376,000	17,376,000
Intangibles, net	12,003,000	13,464,000
Other non-current assets	3,215,000	3,551,000
Total Assets	$174,000,000	$179,306,000

Current liabilities:
Current portion of long-term debt	$2,753,000	$49,451,000
Accounts payable	17,949,000	19,910,000
Contract liabilities	2,745,000	3,698,000
Compensation and related benefits	6,450,000	5,515,000
Accrued other liabilities	7,101,000	5,260,000
Total current liabilities	36,998,000	83,834,000

Long-term debt	31,537,000		—
Other non-current liabilities	3,962,000		3,119,000
Post retirement benefits liability	7,974,000		7,927,000
Total Liabilities	$80,471,000	$	94,880,000
Commitments and Contingencies		—	—

Preferred stock — $0.01 par value, authorized shares — 10,000,000; no shares outstanding at
September 30, 2020 and December 31, 2019		—	—
Common stock — $0.01 par value, authorized shares – 20,000,000; outstanding shares: 7,971,873 at
September 30, 2020 and 7,877,945 at December 31, 2019	80,000		79,000
Paid-in capital	35,831,000		34,772,000
Accumulated other comprehensive income (loss), net of income taxes	401,000		1,370,000
Treasury stock - at cost, 3,810,929 at September 30, 2020 and 3,806,355 at December 31, 2019	( 28,521,000 )	( 28,501,000 )
Retained earnings	85,738,000		76,706,000
Total Stockholders’ Equity	93,529,000		84,426,000
Total Liabilities and Stockholders’ Equity	$174,000,000	$179,306,000

See notes to unaudited consolidated financial statements.

Table of Contents

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statement of Stockholders’ Equity

(Unaudited) For the three months ended September30, 2019:

Accumulated

Common Stock

OtherTotal

Outstanding

Paid-InComprehensiveTreasuryRetainedStockholders'

SharesAmountCapitalIncomeStockEarningsEquity
Balance at June 30, 20197,854,736$79,000$34,074,000$2,001,000$( 28,463,000 )$88,293,000$95,984,000
Net loss( 6,125,000 )( 6,125,000 )| benefits, net of tax benefit | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| of $20,000 | | | | ( 75,000 ) | | | ( 75,000 ) |
| Unrealized foreign currency | | | | | | | |
| hedge loss, net of tax | | | | | | | |
| benefit of $58,000 | | | | ( 196,000 ) | | | (196,000) |
| Change in interest rate | | | | | | | |
| swaps, net of tax benefit | | | | | | | |
| of $20,000 | | | | ( 67,000 ) | | | ( 67,000 ) |
| Share-based compensation | | | 398,000 | | | | 398,000 |
| Balance at September 30, | | | | | | | |
| 2019 | 7,854,736 | $79,000 | $34,472,000 | $1,663,000 | $( 28,463,000 ) | $82,168,000 | $89,919,000 |

For the nine months ended September30, 2019:

Accumulated

Common Stock

OtherTotal

Outstanding

Paid-InComprehensiveTreasuryRetainedStockholders'

SharesAmountCapitalIncomeStockEarningsEquity

Balance at December 31, 7,776,164$78,000$33,208,000$2,117,000$( 28,403,000 )$91,929,000$98,929,000

2018

Net loss( 9,761,000 )( 9,761,000 )

Change in post retirement benefits, net of tax benefit of $60,000( 225,000 )( 225,000 )| hedge gain, net of tax of | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| $144,000 | | | | 396,000 | | | 396,000 |
| Change in interest rate | | | | | | | |
| swaps, net of tax benefit | | | | | | | |
| of $184,000 | | | | ( 625,000 ) | | | ( 625,000 ) |
| Purchase of treasury stock | ( 7,744 ) | | | | ( 60,000 ) | | ( 60,000 ) |
| Restricted stock vested | 86,316 | 1,000 | | | | | 1,000 |
| Share-based compensation | | | 1,264,000 | | | | 1,264,000 |
| Balance at September 30, | | | | | | | |
| 2019 | 7,854,736 | $79,000 | $34,472,000 | $1,663,000 | $( 28,463,000 ) | $82,168,000 | $89,919,000 |

Table of Contents

For the three months ended September30, 2020:

Accumulated

Common Stock

OtherTotal

Outstanding

Paid-InComprehensiveTreasuryRetainedStockholders'

SharesAmountCapitalIncomeStockEarningsEquity
Balance at June 30, 20207,965,289$80,000$35,476,000$2,000$(28,501,000)$82,395,000$89,452,000
Net income3,343,0003,343,000| benefits, net of tax | | | | | |
| --- | --- | --- | --- | --- | --- |
| benefit of $17,000 | | | ( 61,000 ) | | (61,000) |
| Unrealized foreign currency | | | | | |
| hedge gain, net of tax | | | | | |
| of $88,000 | | | 327,000 | | 327,000 |
| Change in interest rate | | | | | |
| swaps, net of tax | | | | | |
| of $39,000 | | | 133,000 | | 133,000 |
| Purchase of treasury stock | ( 4,574 ) | | | (20,000) | (20,000) |
| Restricted stock vested | 11,158 | | | | |
| Share-based compensation | | 355,000 | | | 355,000 |

Balance at September 30, 20207,971,873$80,000$35,831,000$401,000$(28,521,000)$85,738,000$93,529,000

For the nine months ended September30, 2020:

Accumulated

Common Stock

OtherTotal

Outstanding

Paid-InComprehensiveTreasuryRetainedStockholders'

SharesAmountCapitalIncomeStockEarningsEquity

Balance at December 31, 20197,877,945$79,000$34,772,000$1,370,000$(28,501,000)$76,706,000$84,426,000

Net income9,032,0009,032,000| benefits, net of tax | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| benefit of $50,000 | | | | ( 186,000 ) | | | (187,000) | |
| Unrealized foreign currency | | | | | | | | |
| hedge loss, net of tax | | | | | | | | |
| benefit of $98,000 | | | | (358,000) | | | (358,000) | |
| Change in interest rate | | | | | | | | |
| swaps, net of tax benefit | | | | | | | | |
| of $125,000 | | | | (425,000) | | | (424,000) | |
| Purchase of treasury stock | ( 4,574 ) | | | | (20,000) | | | (20,000) |
| Restricted stock vested | 98,502 | 1,000 | | | | | | 1,000 |
| Share-based compensation | | | 1,059,000 | | | | 1,059,000 | |
| Balance at September 30, | | | | | | | | |
| 2020 | 7,971,873 | $80,000 | $35,831,000 | $401,000 | $(28,521,000) | $85,738,000 | $93,529,000 | |

See notes to unaudited consolidated financial statements.

Table of Contents

Core Molding Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Nine Months Ended

September 30,

20202019| Cash flows from operating activities: | | | | |
| --- | --- | --- | --- | --- |
| Net income (loss) | $9,032,000 | | $( 9,761,000 ) | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | |
| Depreciation and amortization | 8,425,000 | | 7,700,000 | |
| Deferred income tax | | 517,000 | ( 632,000 ) | |
| Goodwill impairment | | — | 4,100,000 | |
| Share-based compensation | 1,059,000 | | 1,264,000 | |
| Losses (gains) on foreign currency translation | | 203,000 | | ( 22,000 ) |
| Change in operating assets and liabilities: | | | | |
| Accounts receivable | 6,118,000 | | ( 378,000 ) | |
| Inventories | 6,449,000 | | 2,352,000 | |
| Prepaid and other assets | ( 747,000 ) | | 1,900,000 | |
| Accounts payable | ( 2,053,000 ) | | ( 2,505,000 ) | |
| Accrued and other liabilities | 2,238,000 | | 253,000 | |
| Post retirement benefits liability | ( 189,000 ) | | ( 298,000 ) | |
| Net cash provided by operating activities | 31,052,000 | | 3,973,000 | |

Cash flows from investing activities:
Purchase of property, plant and equipment	( 2,716,000 )	( 6,280,000 )
Net cash used in investing activities	( 2,716,000 )	( 6,280,000 )

Cash flows from financing activities:
Gross repayments on revolving line of credit	( 59,356,000 )	( 148,679,000 )
Gross borrowings on revolving line of credit	47,349,000	152,121,000
Proceeds from term loan	175,000		—
Payment of principal on term loans	( 3,391,000 )	( 2,532,000 )
Payment of deferred loan costs	( 140,000 )	( 434,000 )
Payments related to the purchase of treasury stock	( 20,000 )	( 60,000 )
Net cash provided by (used in) financing activities	( 15,383,000 )	416,000

Net change in cash and cash equivalents12,953,000( 1,891,000 )

Cash and cash equivalents at beginning of period1,856,0001,891,000

Cash and cash equivalents at end of period$14,809,000$—| Cash paid for: | | | |
| --- | --- | --- | --- |
| Interest | $3,523,000 | | $2,706,000 |
| Income taxes | $ | 467,000 | $1,160,000 |
| Non-cash investing activities: | | | |
| Fixed asset purchases in accounts payable | $ | 146,000 | $429,000 |

See notes to unaudited consolidated financial statements.

Table of Contents

Core Molding Technologies, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited) 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States of America for interim reporting, which are less than those required for annual reporting. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (all of which are normal and recurring in nature) necessary to present fairly the financial position of Core Molding Technologies, Inc. and its subsidiaries (“Core Molding Technologies” or the “Company”) at September 30, 2020, and the results of operations and cash flows for the nine months ended September 30, 2020. The Company has reclassified certain prior-year amounts to conform to the current-year's presentation. The “Notes to Consolidated Financial Statements” contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, should be read in conjunction with these consolidated financial statements.

Core Molding Technologies and its subsidiaries operate in the composites market as one operating segment as a molder of thermoplastic and thermoset structural products. The Company's operating segment consists of two component reporting units, Core Traditional and Horizon Plastics. The Company produces and sells molded products for varied markets, including medium and heavy-duty trucks, automobiles, marine, construction and other commercial markets. The Company offers customers a wide range of manufacturing processes to fit various program volume and investment requirements. These processes include compression molding of sheet molding compound ("SMC"), bulk molding compounds ("BMC"), resin transfer molding ("RTM"), liquid molding of dicyclopentadiene ("DCPD"), spray-up and hand-lay-up, glass mat thermoplastics ("GMT"), direct long-fiber thermoplastics ("D-LFT") and structural foam and structural web injection molding ("SIM"). Core Molding Technologies has its headquarters in Columbus, Ohio, and operates seven production facilities in Columbus and Batavia, Ohio; Gaffney, South Carolina; Winona, Minnesota; Matamoros and Escobedo, Mexico; and Cobourg, Ontario, Canada. All production facilities produce structural composite products.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenues and expenses during the reporting period. On an on -going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates, due to the uncertainty around the magnitude and duration of the COVID- 19 pandemic, as well as other factors. Management believes the following critical accounting policies, among others, affect its more significant judgments and estimates used in the preparation of its consolidated financial statements. Going Concern: Under FASB ASU 2014-15, “Presentation of Financial Statements - Going Concern,” management is required to evaluate conditions or events as related to uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern and to provide related financial disclosures, as applicable. As of September 30, 2020, the Company was in default under the Company's Amended and Restated Credit Agreement, dated January 16, 2018 (the “A/R Credit Agreement”), with KeyBank National Association as the administrative agent (the "Administrative Agent") and various other financial institutions thereto as lenders (the "Lenders") as discussed in Note 11, “Debt”. As a result of the default, the Lenders requested that the Company seek alternative financing, which caused uncertainty about the Company’s future liquidity and raised substantial doubt about the Company’s ability to continue as a going concern.

Table of Contents

On October 27, 2020, the Company entered into a credit agreement and a master security agreement (the “Refinancing Agreements”) with Wells Fargo Bank, National Association and FGI Equipment Finance LLC, respectively, as discussed in Note 16, “Subsequent Events”, and repaid all of its obligations under the A/R Credit Agreement. Management believes that the Refinancing Agreements will provide sufficient liquidity to sustain the Company’s needs for the next 12 months. The closing of the Refinancing Agreements alleviated the substantial doubt about the Company’s ability to continue as a going concern prior to the filing date of our Form 10-Q, see Note 16, “Subsequent Events”. Revenue Recognition: The Company recognizes revenue from two streams, product revenue and tooling revenue. Product revenue is earned from the manufacture and sale of sheet molding compound and thermoset and thermoplastic products. Revenue from product sales is generally recognized as products are shipped, as the Company transfers title and risk of ownership to the customer and is entitled to payment. In limited circumstances, the Company recognizes revenue from product sales when products are produced and the customer takes title and risk of ownership at the Company's production facility. Tooling revenue is earned from manufacturing tools, molds and assembly equipment as part of a tooling program for a customer. Given that the Company is providing a significant service of producing highly interdependent component parts of the tooling program, each tooling program consists of a single performance obligation to provide the customer the capability to produce a single product. Based on the arrangement with the customer, the Company recognizes revenue either at a point in time or over time. When the Company does not have an enforceable right to payment, the Company recognizes tooling revenue at a point in time. In such cases, the Company recognizes revenue upon customer acceptance, which is when the customer has legal title to the tools. Certain tooling programs include an enforceable right to payment. In those cases, the Company recognizes revenue over time based on the extent of progress towards completion of its performance obligation. The Company uses a cost-to -cost measure of progress for such contracts because it best depicts the transfer of value to the customer and also correlates with the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer. Under the cost-to-cost measure of progress, progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Accounts Receivable Allowances: Management maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. 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 recorded an allowance for doubtful accounts of $ 130,000 and $ 50,000 at September 30, 2020 and December 31, 2019, respectively. Management also records an allowance for estimated customer chargebacks for returns, price discounts and adjustments, premium freight and expediting costs and customer production line disruption costs resulting from late deliveries. At times, customers have asserted a right to significant production line disruption charges to recover damages as a result of late delivery. The Company typically works with its customers to minimize disruption charges, validate damages and negotiate resolution. The Company records accruals for customer chargebacks when a valid charge is probable and the amount of the charge can be reasonably estimated. Should customer chargebacks fluctuate from the estimated amounts, additional allowances may be necessary. The Company reduced accounts receivable for chargebacks by $ 105,000 at September 30, 2020 and $ 476,000 at December 31, 2019. 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 Company has recorded an allowance for slow moving and obsolete inventory of $ 726,000 at September 30, 2020 and $ 898,000 at December 31, 2019.

Table of Contents

Contract Assets/Liabilities: Contract assets and liabilities represent the net cumulative customer billings, vendor payments and revenue recognized for tooling programs. For tooling programs where net revenue recognized and vendor payments exceed customer billings, the Company recognizes a contract asset. For tooling programs where net customer billings exceed revenue recognized and vendor payments, the Company recognizes a contract liability. Customer payment terms vary by contract and can range from progress payments based on work performed or one single payment once the contract is completed. The Company has recorded contract assets of $ 343,000 at September 30, 2020, and $ 888,000 at December 31, 2019. Contract assets are generally classified as current within prepaid expenses and other current assets on the Consolidated Balance Sheets. For the nine months ended September 30, 2020, the Company recognized no impairments on contract assets. For the nine months ended September 30, 2020, the Company recognized $ 5,710,000 amount of revenue from contract liabilities related to open jobs outstanding as of December 31, 2019. Income Taxes: The Company’s Consolidated Balance Sheets include a net non-current deferred tax asset of $ 2,026,000 for the Canadian and Mexican tax jurisdictions and a net non-current deferred tax liability of $ 517,000 for the U.S. tax jurisdiction at September 30, 2020. The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more likely than not to realize deferred tax benefits through the generation of future taxable income. For more information, refer to Note 12, "Income Taxes", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. Derivative Instruments: Derivative instruments are utilized to manage exposure to fluctuations in foreign currency exchange rates and interest rates on long term debt obligations. All derivative instruments are formally documented as cash flow hedges and are recorded at fair value at each reporting period. Gains and losses related to currency forward contracts and interest rate swaps are deferred and recorded as a component of Accumulated Other Comprehensive Income (Loss) in the Consolidated Statement of Stockholders' Equity and then subsequently recognized in the Consolidated Statement of Income (Loss) when the hedged item affects net income. The ineffective portion of the change in fair value of a hedge, if any, is recognized in income. For additional information on derivative instruments, see Note 14, "Fair Value of Financial Instruments". Long-Lived Assets: Long-lived assets consist primarily of property, plant and equipment and definite-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 Company evaluates whether impairment exists for property, plant and equipment 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 nine months ended September 30, 2020 or September 30, 2019. Goodwill and Other Intangibles: The Company evaluates goodwill annually on December 31 to determine whether impairment exists, or at interim periods if an indicator of possible impairment exists. As a result of the Horizon Plastics acquisition on January 16, 2018 and the status of its integration, the Company established two reporting units, Core Traditional and Horizon Plastics. The annual impairment tests of goodwill may be completed through qualitative assessments, however the Company may elect to bypass the qualitative assessment and proceed directly to a quantitative impairment test for any reporting unit in any period. The Company may resume the qualitative assessment for any reporting unit in any subsequent period. Due to the Company's financial performance and continued depressed stock price, the Company performed a quantitative analysis for both of its reporting units at September 30, 2019. During 2019, the Company incurred a loss of margin in its Horizon Plastics reporting unit caused by selling price decreases that the Company has not been able to fully offset with material cost reductions. As a result of the quantitative analysis, the Company concluded that the carrying value of Horizon Plastics was greater than the fair value, which resulted in a goodwill impairment charge of $ 4,100,000 at September 30, 2019 representing 19 % of the goodwill related to the Horizon Plastics reporting unit. There were no indicators of impairment for the nine months ended September 30, 2020 that would trigger additional analysis; however, should the Company experience a prolonged suspension of operations due to COVID-19, the Company may incur goodwill and intangible impairment charges in the future.

Table of Contents

Self-Insurance: The Company is self-insured with respect to its Columbus and Batavia, Ohio, Gaffney, South Carolina, Winona, Minnesota and Brownsville, Texas medical, dental and vision claims and Columbus and Batavia, Ohio workers’ compensation claims, all of which are subject to stop-loss insurance thresholds. The Company is also self -insured for dental and vision with respect to its Cobourg, Canada location. The Company has recorded an estimated liability for self-insured medical, dental, vision and worker’s compensation claims incurred but not reported at September 30, 2020 and December 31, 2019 of $ 807,000 and $ 1,203,000 respectively. Post-retirement Benefits: Management records an accrual for post-retirement costs associated with the health care plan sponsored by Core Molding Technologies. Should actual results differ from the assumptions used to determine the reserves, additional provisions may be required. In particular, increases in future healthcare costs above the assumptions could have an adverse effect on Core Molding Technologies’ operations. The effect of a change in healthcare costs is described in Note 13, "Post Retirement Benefits", of the Notes to Consolidated Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. Core Molding Technologies had a liability for post retirement healthcare benefits based on actuarially computed estimates of $ 9,207,000 at September 30, 2020 and $ 9,160,000 at December 31, 2019. Government Subsidies : The Company received $ 25,000 and $ 1,416,000 in government subsidies during the three and nine months ended September 30, 2020. The Company accounted for government subsidies in accordance with International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance. The Company recorded the assistance in selling, general and administrative expenses and determined that there is reasonable assurance all conditions attached to the assistance were met and the grants would be received. The government subsidies consisted of the Canadian Emergency Wage Subsidy, Employee Retention Credit under the Cares Act and the Shared Work Programs of Ohio, South Carolina and Minnesota.

RECENT ACCOUNTING PRONOUNCEMENTS Current expected credit loss (CECL) In June 2016, the FASB issued ASU 2016-13, “Financial Instruments -Credit Losses,” which changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Subsequent to issuing ASU 2016 -13, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses,” for the purpose of clarifying certain aspects of ASU 2016 -13. ASU 2018- 19 has the same effective date and transition requirements as ASU 2016 -13. In April 2019, the FASB issued ASU 2019 -04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, ” which is effective with the adoption of ASU 2016-13. In May 2019, the FASB issued ASU 2019- 05, “Financial Instruments - Credit Losses (Topic 326),” which is also effective with the adoption of ASU 2016-13. In November 2019, the FASB voted to delay the implementation date for certain companies, including those that qualify as a smaller reporting company under SEC rules, until fiscal years beginning after December 15, 2022. 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. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes. This guidance is intended to simplify various aspects of income tax accounting including the elimination of certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The Company adopted the new standard effective January 1, 2020 during the third quarter with no material impact

Table of Contents

on our consolidated financial statements. Adoption of this guidance requires certain changes to primarily be made prospectively, with some changes to be made retrospectively. Facilitation of the Effects of Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The ASU provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate (e.g., LIBOR) reform if certain criteria are met, for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The ASU is effective as of March 12, 2020 through December 31, 2022. We will evaluate transactions or contract modifications occurring as a result of reference rate reform and determine whether to apply the optional guidance on an ongoing basis.

NET INCOME (LOSS) PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to the Company's common shares. The Company uses the two-class method to calculate basic and diluted earnings per share as a result of outstanding participating securities in the form of restricted stock awards.

Three months ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net income (loss) $ 3,343,000 $ (6,125,000) $ 9,032,000 $ (9,761,000) Less: net income allocated to participating securities 206,000 — 558,000 — Net income (loss) available to common shareholders $ 3,137,000 $ (6,125,000) $ 8,474,000 $ (9,761,000) Weighted average common shares outstanding — basic 7,969,000 7,851,000 7,922,000 7,804,000 Effect of dilutive securities — — — — Weighted average common and potentially issuable common shares outstanding — diluted 7,969,000 7,851,000 7,922,000 7,804,000 Basic net income (loss) per common share $ 0.39 $ (0.78) $ 1.07 $ (1.25) Diluted net income (loss) per common share $ 0.39 $ (0.78) $ 1.07 $ (1.25)

Table of Contents

MAJOR CUSTOMERS The Company had five major customers during the nine months ended September 30, 2020, Universal Forest Products, Inc. (“UFP”), Navistar, Inc. (“Navistar ”), PACCAR, Inc. (“PACCAR”), Volvo Group North America, LLC (“Volvo”), and BRP, Inc. (“BRP”). Major customers are defined as customers whose sales individually consist of more than ten percent of total sales during any annual or interim reporting period in the current year. The loss of a significant portion of sales to these customers would have a material adverse effect on the business of the Company. The following table presents sales revenue for the above -mentioned customers for the three and nine months ended September 30, 2020 and 2019:| | | September 30, | | | September 30, | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2020 | | 2019 | 2020 | | 2019 |
| UFP product sales | $12,188,000 | $ | 6,751,000 | $30,659,000 | $ | 22,076,000 |
| UFP tooling sales | | — | — | | — | — |
| Total UFP sales | 12,188,000 | | 6,751,000 | 30,659,000 | | 22,076,000 |

Navistar product sales	8,065,000	15,115,000	25,231,000	46,411,000
Navistar tooling sales	5,198,000	145,000	6,384,000	927,000
Total Navistar sales	13,263,000	15,260,000	31,615,000	47,338,000

PACCAR product sales	8,268,000	11,532,000	19,383,000	35,779,000
PACCAR tooling sales	179,000	165,000	386,000	1,325,000
Total PACCAR sales	8,447,000	11,697,000	19,769,000	37,104,000

Volvo product sales	4,907,000	11,117,000	14,647,000	40,213,000
Volvo tooling sales	38,000	61,000	2,186,000	200,000
Total Volvo sales	4,945,000	11,178,000	16,833,000	40,413,000

BRP product sales	4,240,000	3,116,000	13,693,000	11,287,000
BRP tooling sales	175,000	2,502,000	508,000	3,358,000
Total BRP sales	4,415,000	5,618,000	14,201,000	14,645,000

Other product sales	16,572,000	19,880,000	48,406,000	58,637,000
Other tooling sales	43,000	4,271,000	222,000	7,955,000
Total other sales	16,615,000	24,151,000	48,628,000	66,592,000

Total product sales	54,240,000	67,511,000	152,019,000	214,403,000
Total tooling sales	5,633,000	7,144,000	9,686,000	13,765,000
Total sales	$59,873,000	$74,655,000	$161,705,000	$228,168,000

6. INVENTORY

Inventories, net consisted of the following:| | September 30, 2020 | | December 31, 2019 | |
| --- | --- | --- | --- | --- |
| Raw materials | $ | 9,871,000 | $ | 13,041,000 |
| Work in process | | 1,536,000 | | 1,818,000 |
| Finished goods | | 3,826,000 | | 6,823,000 |
| Total | $ | 15,233,000 | $ | 21,682,000 |

Table of Contents

Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based on historical and anticipated usage.

LEASES The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to four years , some of which include options to extend the lease for five years . Operating leases are included in operating lease right -of-use ("ROU") assets, accrued other liabilities and other non-current liabilities in the Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The Company used the applicable incremental borrowing rate at implementation date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company ’s secured borrowing rate. At each reporting period when there is a new lease initiated, the Company will utilize its incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities. The components of lease expense were as follows:

Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Operating lease cost $ 357,000 $ 358,000 $ 1,072,000 $ 1,073,000 Total net lease cost $ 357,000 $ 358,000 $ 1,072,000 $ 1,073,000

Other supplemental balance sheet information related to leases was as follows:

September 30, 2020 December 31, 2019 Operating leases: Operating lease right of use assets $ 3,506,000 $ 4,484,000 Total operating lease right of use assets $ 3,506,000 $ 4,484,000 Current operating lease liabilities (A) $ 843,000 $ 1,304,000 Noncurrent operating lease liabilities (B) 2,602,000 3,119,000 Total operating lease liabilities $ 3,445,000 $ 4,423,000 Weighted average remaining lease term (in years): Operating leases 3.5 4.0 Weighted average discount rate: Operating leases 5.0 % 4.9 %

Table of Contents

Current operating lease liabilities are included in accrued other liabilities on the Consolidated Balance Sheets. (B) Noncurrent operating lease liabilities are included in other non-current liabilities on the Consolidated Balance Sheets. Other information related to leases were as follows:(A)

Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases (C) $ 1,072,000 $ 1,073,000

(C) Cash flow from operating lease included in prepaid and other assets on the Consolidated Statements of Cash Flows. As of September 30, 2020, maturities of lease liabilities were as follows:

Operating Leases 2020 (remainder of year) $ 358,000 2021 1,174,000 2022 1,102,000 2023 1,000,000 2024 530,000 Total lease payments 4,164,000 Less: imputed interest ( 719,000 ) Total lease obligations 3,445,000 Less: current obligations ( 843,000 ) Long-term lease obligations $ 2,602,000

As of December 31, 2019, maturities of lease liabilities were as follows:

Operating Leases 2020 $ 1,433,000 2021 1,174,000 2022 1,102,000 2023 1,000,000 2024 530,000 Total lease payments 5,239,000 Less: imputed interest ( 816,000 ) Total lease obligations 4,423,000 Less: current obligations ( 1,304,000 ) Long-term lease obligations $ 3,119,000

Table of Contents

8. PROPERTY, PLANT & EQUIPMENT

Property, plant and equipment, net consisted of the following for the periods specified:| | September 30, 2020 | | December 31, 2019 | |
| --- | --- | --- | --- | --- |
| Property, plant and equipment | $ | 173,644,000 | $ | 170,881,000 |
| Accumulated depreciation | | ( 98,437,000 ) | | ( 91,675,000 ) |
| Property, plant and equipment — net | $ | 75,207,000 | $ | 79,206,000 |

Property, plant, and equipment are recorded at cost, unless obtained through acquisition, then assets are recorded at estimated fair value at the date of acquisition. Depreciation is provided on a straight -line method over the estimated useful lives of the assets.
The carrying amount of long-lived assets is evaluated annually to determine if an adjustment to the depreciation period or to the unamortized balance is warranted. Depreciation expense for the three months ended September 30, 2020 and 2019 was $2,273,000 and $1,977,000, respectively. Depreciation expense for the nine months ended September 30, 2020 and 2019 was $6,764,000 and $5,115,000, respectively. Amounts invested in capital additions in progress were $1,858,000 and $1,615,000 at September 30, 2020 and December 31, 2019, respectively. At September 30, 2020 and December 31, 2019, purchase commitments for capital expenditures in progress were $338,000 and $336,000, respectively.

9. GOODWILL AND INTANGIBLES

Goodwill activity for the nine months ended September30, 2020 consisted of the following:

Balance at December 31, 2019$17,376,000 Additions— Impairment— Balance at September 30, 2020$17,376,000

Intangibles, net at September30, 2020 were comprised of the following:| | | Gross Carrying | Accumulated | | Net Carrying |
| --- | --- | --- | --- | --- | --- |
| Definite-lived Intangible Assets | Amortization Period | Amount | Amortization | | Amount |
| Trade name | 25 Years | $250,000 | $ | (56,000) | $194,000 |
| Trademarks | 10 Years | 1,610,000 | (435,000) | | 1,175,000 |
| Non-competition agreement | 5 Years | 1,810,000 | (981,000) | | 829,000 |
| Developed technology | 7 Years | 4,420,000 | (1,709,000) | | 2,711,000 |
| Customer relationships | 10-12 Years | 9,330,000 | (2,236,000) | | 7,094,000 |
| Total | | $17,420,000 | $(5,417,000) | | $12,003,000 |

The aggregate intangible asset amortization expense was $487,000 for the three months ended September 30, 2020 and 2019.
The aggregate intangible asset amortization expense was $1,461,000 for the nine months ended September 30, 2020 and 2019.

Intangibles, net at December31, 2019 were comprised of the following:

Table of Contents| | | Gross Carrying | Accumulated | | Net Carrying |
| --- | --- | --- | --- | --- | --- |
| Definite-lived Intangible Assets | Amortization Period | Amount | Amortization | | Amount |
| Trade name | 25 Years | $250,000 | $ | (48,000) | $202,000 |
| Trademarks | 10 Years | 1,610,000 | (315,000) | | 1,295,000 |
| Non-competition agreement | 5 Years | 1,810,000 | (709,000) | | 1,101,000 |
| Developed technology | 7 Years | 4,420,000 | (1,237,000) | | 3,183,000 |
| Customer relationships | 10-12 Years | 9,330,000 | (1,647,000) | | 7,683,000 |
| Total | | $17,420,000 | $(3,956,000) | | $13,464,000 |

10. POST RETIREMENT BENEFITS

The components of expense for the Company’s post-retirement benefit plans for the three and nine months ended September30, 2020 and 2019 are as follows:| | September 30, | | | September 30, | |
| --- | --- | --- | --- | --- | --- |
| | 2020 | 2019 | 2020 | | 2019 |
| Pension expense: | | | | | |
| Multi-employer plan | $157,000 | $270,000 | $549,000 | $ | 732,000 |
| Defined contribution plan | 258,000 | 364,000 | 766,000 | | 950,000 |
| Total pension expense | 415,000 | 634,000 | 1,315,000 | | 1,682,000 |

Health and life insurance:
Interest cost	59,000	72,000	177,000	216,000
Amortization of prior service costs	( 124,000 )	( 125,000 )	( 372,000 )	( 375,000 )
Amortization of net loss	45,000	30,000	135,000	88,000
Net periodic benefit cost	(20,000)	(23,000)	(60,000)	(71,000)

Total post retirement benefits expense$395,000$611,000$1,255,000$1,611,000

The Company made payments of $1,518,000 to pension plans and $131,000 for post-retirement healthcare and life insurance during the nine months ended September 30, 2020. For the remainder of 2020, the Company expects to make approximately $276,000 of pension plan payments, of which $98,000 was accrued at September 30, 2020. The Company also expects to make approximately $1,102,000 of post-retirement healthcare and life insurance payments for the remainder of 2020, all of which were accrued at September 30, 2020.

Table of Contents

11. DEBT Debt consists of the following:

September 30,December 31,

20202019| December 31, 2019) with monthly payments of interest and quarterly payments of | | | | |
| --- | --- | --- | --- | --- |
| principal through January 2023 | $34,875,000 | $ | 38,250,000 | |
| Revolving loans, interest at a variable rate (8.0% at September 30, 2020 and 6.04% at | | | | |
| December 31, 2019) | | — | 12,008,000 | |
| Term loan, interest at a fixed rate (5.5% at September 30, 2020) with monthly payments | | | | |
| of interest and principal through April 2025 | 160,000 | | | — |
| Total | 35,035,000 | | 50,258,000 | |
| Less deferred loan costs | ( 745,000 ) | | ( 807,000 ) | |
| Less current portion | (2,753,000) | | (49,451,000) | |
| Long-term debt | $31,537,000 | $ | | — |

Credit Agreement

On January 16, 2018, the Company entered into an Amended and Restated Credit Agreement (the "A/R Credit Agreement") with KeyBank National Association as administrative agent and various financial institutions party thereto as lenders (the "Lenders").
Pursuant to the terms of the A/R Credit Agreement (i) the Company may borrow revolving loans in the aggregate principal amount of up to $40,000,000 (the “ US Revolving Loans”) from the Lenders and term loans in the aggregate principal amount of up to $32,000,000 from the Lenders, (ii) the Company's wholly-owned subsidiary, Horizon Plastics International, Inc., (the "Subsidiary") may borrow revolving loans in an aggregate principal amount of up to $10,000,000 from the Lenders (which revolving loans shall reduce the availability of the US Revolving Loans to the Company on a dollar-for-dollar basis) and term loans in an aggregate principal amount of up to $13,000,000 from the Lenders, (iii) the Company obtained a Letter of Credit Commitment of $250,000, of which $160,000 has been issued and (iv) the Company repaid the outstanding term loan balance of $6,750,000. The A/R Credit Agreement is secured by a guarantee of each U.S. and Canadian subsidiary of the Company, and by a lien on substantially all of the present and future assets of the Company and its U.S. and Canadian subsidiaries, except that only 65% of the stock issued by Corecomposites de Mexico, S. de R.L. de C.V. has been pledged.

Concurrent with the closing of the A/R Credit Agreement the Company borrowed the $32,000,000 term loan and $2,000,000 from the U.S. Revolving Loan and the Subsidiary borrowed the $13,000,000 term loan and $2,500,000 from revolving loans to provide $49,500,000 of funding for the acquisition of Horizon Plastics. Interest is payable monthly at one month LIBOR plus a basis point margin of 700 basis points with a LIBOR floor of 100 basis points.

During 2019, the Company and the Lenders acknowledged and confirmed that an event of default occurred under the A/R Credit Agreement resulting from the Borrowers failure to maintain the required Fixed Charge Coverage Ratio (as defined in the A/R Credit Agreement). On November 22, 2019, the Company and the Lenders entered into a forbearance agreement (the "Forbearance Agreement"), which was amended twice, first on March 13, 2020 (the "Amended Forbearance Agreement") and then on May 29, 2020 (the “Second Amended Forbearance Agreement”).

Table of Contents

EBITDA determined based on consolidated EBITDA, (3) a change of interest rate to LIBOR rate plus 700 basis points with a LIBOR floor of 100 basis points, (4) on or before July 15, 2020 the Borrowers shall have obtained executed term sheets from involved parties and/or lenders, (5) on or before September 30, 2020, the Borrowers shall have closed on a new capital structure, (6) forbearing compliance with the leverage covenant and fixed charge covenant through September 30, 2020, and (7)
implementation of a capital expenditure spend limit of $3,000,000 for the nine months ended September 30, 2020.

The Company has unblocked maximum availability of $20,000,000 of variable rate revolving loans of which $0 is outstanding as of September 30, 2020.

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 5.5% and a term of 60 months. The amount outstanding at September 30, 2020 was $160,000 of which, $127,000 was classified as long term debt.

On October 27, 2020, the Company entered into the Refinancing Agreements, as defined in Note 2, “Critical Accounting Policies and Estimates ”, and repaid all of its obligations under the A/R Credit Agreement. Management believes that the Refinancing Agreements will provide sufficient liquidity to sustain the Company’s needs for the next 12 months. The closing of the Refinancing Agreements alleviated the substantial doubt about the Company’s ability to continue as a going concern prior to the filing date of our Form 10 -Q, see Note 16, “Subsequent Event”. The Company, therefore, classified its debt between short -term and long-term in accordance with the A/R Credit Agreement.

Interest Rate Swaps

The Company entered into two interest rate swap agreements that became effective January 18, 2018 and continue through January 2023, one of which was designated as a cash flow hedge for $25,000,000 of the $32,000,000 term loan to the Company mentioned above and the other designated as a cash flow hedge for $10,000,000 of the $13,000,000 term loan to the Subsidiary mentioned above. Under these agreements, the Company will pay a fixed rate of approximately 2.49% to the counterparty and receives 30 day LIBOR for both cash flow hedges. The fair value of the interest rate swap was a liability of $1,255,000 and $706,000 at September 30, 2020 and December 31, 2019, respectively. On October 27, 2020, concurrent with the Company entering into the Refinancing Agreements, both interest rate swap agreement were terminated, see Note 16, “Subsequent Events”.

12. INCOME TAXES

The Company’s Consolidated Balance Sheets include a net non-current deferred tax asset of $2,026,000 for the Canadian and Mexican tax jurisdictions and a net non -current deferred tax liability of $517,000 for the U.S. tax jurisdiction at September 30, 2020. The Company evaluates the balance of deferred tax assets that will be realized based on the premise that the Company is more likely than not to realize deferred tax benefits through the generation of future taxable income. As of September 30, 2020 and December 31, 2019, the Company had no liability for unrecognized tax benefits. The Company does not anticipate that unrecognized tax benefits will significantly change within the next twelve months.

Income tax benefit for the nine months ended September 30, 2020 is estimated to be $4,933,000, approximately 120.3% of income before income taxes. The effective tax rate for 2020 reflects recording net operating losses in U.S. jurisdictions at the tax rate, 34%, which will be applied when the Company carries 2020 losses back to previous years.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was enacted in response to the COVID-19 pandemic, and among other things, provides tax relief to businesses. Tax provisions of the CARES Act include the deferral of certain payroll taxes, relief for retaining employees, and other provisions, including allowing net operating losses to be carried back five years versus an indefinite carryforward. The Company has filed with the Internal Revenue Service to carry back net operating losses incurred in 2018 and 2019 under this new law, resulting in an income tax refund of $6,155,000 of which all has been collected as of September 30, 2020. An income tax benefit of $5,638,000 was realized in the first quarter of 2020.
The income tax benefit consists of the reversal of the full valuation allowance against net deferred tax assets in the United States for approximately $3,267,000. The income tax benefit also consists of a rate benefit of $2,371,000 based on the losses being 20

Table of Contents

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.

The Company files income tax returns in the U.S., Mexico, Canada and various state jurisdictions. The Company is not subject to U.S. federal and state income tax examinations by tax authorities for years prior to 2016, not subject to Mexican income tax examinations by Mexican authorities for years prior to 2014 and not subject to Canadian tax examinations by Canadian authorities for years prior to 2018.

13. STOCK BASED COMPENSATION

The Company has a Long Term Equity Incentive Plan (the “2006 Plan”), as approved by the Company’s stockholders in May 2006 and as amended in May 2015. The 2006 Plan allows for grants to directors and employees of non -qualified stock options, incentive stock options, stock appreciation rights, restricted stock, performance shares, performance units and other incentive awards (“Stock Awards”) up to an aggregate of 3,000,000 awards, each representing a right to buy a share of Core Molding Technologies common stock. Stock Awards can be granted under the 2006 Plan through the earlier of December 31, 2025, or the date the maximum number of available awards under the 2006 Plan have been granted.

Restricted Stock

The Company grants shares of its common stock to certain directors, officers, key managers and employees in the form of unvested stock and units (“Restricted Stock”). These awards are recorded at the market value of the Company's common stock on the date of issuance and amortized ratably as compensation expense over the applicable vesting period, which is typically three years. The Company adjusts compensation expense for actual forfeitures, as they occur.

The following summarizes the status of Restricted Stock and changes during the nine months ended September 30, 2020:| | Shares | Fair Value | |
| --- | --- | --- | --- |
| Unvested balance at December 31, 2019 | 343,919 | $ | 9.37 |
| Granted | 287,750 | | 4.62 |
| Vested | ( 98,502 ) | | 10.37 |
| Forfeited | ( 8,385 ) | | 13.72 |
| Unvested balance at September 30, 2020 | 524,782 | $ | 6.46 |

At September 30, 2020 and 2019, there was $1,928,000 and $2,377,000, respectively, of total unrecognized compensation expense, related to Restricted Stock granted under the 2006 Plan. That cost is expected to be recognized over the weightedaverage period of 2.3 years. Total compensation cost related to restricted stock grants for the three months ended Septe mber 30, 2020 and 2019 was $319,000 and $350,000, respectively, all of which was recorded to selling, general and administrative expense.
Total compensation cost related to restricted stock grants for the nine months ended September 30, 2020 and 2019 was $968,000 and $1,121,000, respectively, all of which was recorded to selling, general and administrative expense

During the nine months ended September 30, 2020 and 2019, employees surrendered 4,574 shares and 7,744 shares of the Company's common stock to satisfy income tax withholding obligations in connection with the vesting of restricted awards.

Stock Appreciation Rights

As part of the Company's 2019 annual grant, Stock Appreciation Rights ("SARs") were granted with a grant price of $10. These awards have a contractual term of five years and vest ratably over a period of three years or immediately vest if the recipient is over 65 years of age. These awards are valued using the Black-Scholes option pricing model.

A summary of the Company's stock appreciation rights activity for the nine months ended September 30, 2020 is as follows:
21

Table of Contents| | Shares | | Fair Value | |
| --- | --- | --- | --- | --- |
| Outstanding as of December 31, 2019 | 222,112 | $ | | 2.57 |
| Granted | | — | | — |
| Exercised | | — | | — |
| Forfeited | ( 27,266 ) | | | 2.57 |
| Outstanding at end of the period ended September 30, 2020 | 194,846 | $ | | 2.57 |
| Exercisable at end of the period ended September 30, 2020 | 84,300 | $ | | 2.57 |

The average remaining contractual term for those SARs outstanding at September 30, 2020 is 3.6 years, with no aggregate intrinsic value. At September 30, 2020 and 2019, there was $225 ,000 and $435,000, respectively, of total unrecognized compensation expense, net of estimated forfeitures, related to SARs. Total compensation cost related to SARs for the three months ended September 30 , 2020 and 2019 was $36,000 and $42,000, respectively, all of which was recorded to selling, general and administrative expense. Total compensation cost related to SARs for the nine months ended September 30 , 2020 and 2019 was $91,000 and $145,000, respectively, all of which was recorded to selling, general and administrative expense. That cost is expected to be recognized over the weighted- average period of 1.6 years.

14. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants as of the measurement date. Fair value is measured using the fair value hierarchy and related valuation methodologies as defined in the authoritative literature. This guidance provides a fair value framework that requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities.
Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.

The three levels are defined as follows:

Level 1 -Quoted prices in active markets for identical assets and liabilities.
Level 2 -Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in

markets that are not active and model-derived valuations, in which all significant inputs are observable in active markets.
Level 3 -Significant unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability.

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, debt, interest rate swaps and foreign currency derivatives. Cash and cash equivalents, accounts receivable and accounts payable carrying values as of September 30, 2020 and December 31, 2019 approximate fair value due to the short -term maturities of these financial instruments. The carrying amounts of long-term debt and the revolving line of credit approximate fair value as of September 30, 2020 and December 31, 2019 due to the short term nature of the underlying variable rate LIBOR agreements. The Company had Level 2 fair value measurements at September 30, 2020 and December 31, 2019 relating to the Company’s interest rate swaps and foreign currency derivatives.

Derivative and hedging activities

Foreign Currency Derivatives

The Company conducted business in foreign countries and paid certain expenses in foreign currencies; therefore, the Company was exposed to foreign currency exchange risk between the U.S. Dollar and foreign currencies, which could impact the

Table of Contents

Company’s operating income and cash flows. To mitigate risk associated with foreign currency exchange, the Company entered into forward contracts to exchange a fixed amount of U.S. Dollars for a fixed amount of foreign currency, which will be used to fund future foreign currency cash flows. At inception, all forward contracts are formally documented as cash flow hedges and are measured at fair value each reporting period.

Derivatives are formally assessed both at inception and at least quarterly thereafter, to ensure that derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of the hedged item. If it is determined that a derivative ceases to be a highly effective hedge, or if the anticipated transaction is no longer probable of occurring, hedge accounting is discontinued, and any future mark-to-market adjustments are recognized in earnings. The effective portion of gain or loss is reported in other comprehensive income and the ineffective portion is reported in earnings. The impacts of these contracts were largely offset by gains and losses resulting from the impact of changes in exchange rates on transactions denominated in the foreign currency. As of September30, 2020, the Company had no ineffective portion related to the cash flow hedges.

Interest Rate Swaps

The Company entered into interest rate swap contracts to fix the interest rate on an initial aggregate amount of $35,000,000 thereby reducing exposure to interest rate changes. The interest rate swap pays a fixed rate of 2.49% to the counterparty and receives 30 day LIBOR for both cash flow hedges. At inception, all interest rate swaps were formally documented as cash flow hedges and are measured at fair value each reporting period. See Note 11, "Debt", for additional information.

Financial statements impacts

The following tables detail amounts related to our derivatives designated as hedging instruments:

Fair Value of Derivative Instruments

September 30, 2020

Asset DerivativesLiability Derivatives Balance Sheet LocationFair ValueBalance Sheet LocationFair Value

Foreign exchange contractsPrepaid expenses other current assets$—Accrued other liabilities$4,000 Notional contract values$—$51,000

Interest rate swapsPrepaid expenses other current assets$—Accrued other liabilities$1,255,000 Notional swap values$—$27,125,000

December 31, 2019

Asset DerivativesLiability Derivatives Balance Sheet LocationFair ValueBalance Sheet LocationFair Value

Foreign exchange contractsPrepaid expenses other current assets$452,000Accrued other liabilities$— Notional contract values$15,358,000$—

Interest rate swapsPrepaid expenses other current assets$—Accrued other liabilities$706,000 Notional swap values$—$29,750,000

Table of Contents

The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income (Loss) ("AOCI") for the three months ended September 30, 2020 and 2019:

Amount of Unrealized Derivatives inGain (Loss) RecognizedLocation of Gain (Loss)Amount of Realized Gain subtopic 815-20in Accumulated OtherReclassified from(Loss) Reclassified from Cash Flow HedgingComprehensive Income (Loss) onAccumulated OtherAccumulated Other RelationshipDerivativeComprehensive Income (Loss)(A)Comprehensive Income (Loss)

2020201920202019| Foreign exchange | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| contracts | $668,000 | $ | (192,000) | Cost of goods sold | $(219,000) | $55,000 | |
| | | | | Selling, general and | | | |
| | | | | administrative expense | $(33,000) | $ | 8,000 |
| Interest rate swaps | $321,000 | $ | (101,000) | Interest expense | $(149,000) | $(14,000) | |

(A)The foreign currency derivative activity reclassified from Accumulated Other Comprehensive Income (Loss) is allocated to cost of goods sold and selling, general and administrative expense based on the percentage of foreign currency spend.

The following tables summarize the amount of unrealized and realized gain (loss) recognized in Accumulated Other Comprehensive Income (Loss) ("AOCI") for the nine months ended September 30, 2020 and 2019:

Amount of Unrealized Derivatives inGain (Loss) RecognizedLocation of Gain (Loss)Amount of Realized Gain subtopic 815-20in Accumulated OtherReclassified fromor (Loss) Reclassified from Cash Flow HedgingComprehensive Income (Loss)Accumulated OtherAccumulated Other RelationshipDerivativeonComprehensive Income (Loss)(A)Comprehensive Income (Loss)

2020201920202019

Foreign exchange contracts$135,000$649,000Cost of goods sold$(525,000)$110,000 Selling, general and administrative expense$(67,000)$— Interest rate swaps$(206,000)$(823,000)Interest expense$(343,000)$(13,000)

Table of Contents

15. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents changes in Accumulated Other Comprehensive Income (Loss), net of tax, for the nine months ended September30, 2020 and 2019:

Accumulated

DerivativePost RetirementOther

HedgingBenefit PlanComprehensive

2019:ActivitiesItems(A)Income (Loss) Balance at December 31, 2018$(612,000)$2,729,000$2,117,000| Other comprehensive loss before | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| reclassifications | | (174,000) | | — | | (174,000) |
| Amounts reclassified from accumulated | | | | | | |
| other comprehensive income (loss) | | (96,000) | | (284,000) | | (380,000) |
| Income tax benefit | | 40,000 | | 60,000 | | 100,000 |
| Balance at September 30, 2019 | $ | (842,000) | $ | 2,505,000 | $ | 1,663,000 |

2020: Balance at December 31, 2019$(191,000)$1,561,000$1,370,000| Other comprehensive loss before | | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| reclassifications | | (71,000) | | — | | (71,000) |
| Amounts reclassified from accumulated | | | | | | |
| other comprehensive income (loss) | | (935,000) | | (236,000) | (1,171,000) | |
| Income tax benefit | | 223,000 | | 50,000 | | 273,000 |
| Balance at September 30, 2020 | $ | (974,000) | $ | 1,375,000 | $ | 401,000 |

(A)The effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income (Loss) is included in

other income and expense on the Consolidated Statements of Income (Loss). These Accumulated Other Comprehensive Income (Loss) components are included in the computation of net periodic benefit cost (see Note 10, "Post Retirement Benefits" for additional details). The tax effect of post-retirement benefit items reclassified from Accumulated Other Comprehensive Income (Loss) is included in income tax expense on the Consolidated Statements of Income (Loss).

SUBSEQUENT EVENTS

Table of Contents

Credit Refinancing On October 27, 2020 , the Company entered into a Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, lead arranger and book runner, and the lenders party thereto (the “Lenders”). Pursuant to the terms of the Credit Agreement, the Lenders made available to the Company secured loans (the “ Wells Fargo Loans ”) in the maximum aggregate principal amount of $ 43,500,000 , consisting of (i) a revolving loan commitment of $ 25,000,000 (approximately $ 8,745,000 of which was advanced to the Company on October 28, 2020) and (ii) term loan commitments of $ 18,500,000 ($ 16,790,000 of which was advanced to the Company on October 28, 2020). Such revolving loan commitment terminates, and all outstanding borrowings thereunder must be repaid, on October 27, 2024 , and such term loans are to be repaid in monthly installments with the remaining outstanding balance due on October 27, 2024 , in each case subject to certain optional and mandatory repayment terms. The Company’s obligations under the Credit Agreement and the Loans are unconditionally guaranteed by each of the Company’s U.S. and Canadian subsidiaries, with such obligations of the Company and such subsidiaries being secured by a lien on substantially all of their U.S. and Canadian assets. Interest is payable monthly and is based on either LIBOR Rate or Base Rate, as defined by the Credit Agreement, at the discretion of the Company. As of October 28, 2020, the revolving loan was based on the Base Rate resulting in a rate of 4.75 % and the term loan was based on the LIBOR Rate resulting in a rate of 3.75 %. In connection with the funding of the Wells Fargo Loans, FGI Equipment Finance LLC advanced to the Company, pursuant to a Master Security Agreement, dated as of October 27, 2020 (the “Security Agreement”), among FGI Equipment Finance LLC, the Company as debtor, and each of Core Composites Corporation and CC HPM, S. de R.L. de C.V. as a guarantor, a term loan in the principal amount of $ 13,200,000 (the “FGIEF Loan”), which loan is secured by certain assets of the Company and the guarantors located in Mexico. Interest is payable monthly at a fixed rate of 8.25 %. The proceeds of the Wells Fargo Loans and the FGIEF Loans were used in part to repay all existing outstanding indebtedness of the Company owing to KeyBank National Association, and to pay certain fees and expenses associated with the transactions contemplated by the Credit Agreement and the Security Agreement, and will be used to finance the ongoing general corporate needs of the Company. Concurrent with the closing of the Credit Agreement and the Master Security Agreement, the Company settled both outstanding interest rate swaps, which resulted in a loss and cash outflow of $ 1,253,000 , recorded in interest expense and operating activities, respectively. The Company also recorded losses of $ 605,000 from writing off outstanding deferred loan costs related to the Amended A/R Credit Agreement. Facility Closure On November 5, 2020 the Company announced it will close the manufacturing facility located in Batavia, Ohio in 2021. The Company has begun working with customers to relocate the business into other Core locations or to third parties. Revenue from the facility accounts for less than 5 % of the Company's total revenues and the Company anticipates approximately half of those revenues will transition to other Core locations. The Company anticipates shutdown costs to consist of severance cost, moving and production testing and recertification costs and asset impairment charges. Management has determined the costs related to the closure of the manufacturing facility located in Batavia, Ohio to be immaterial to the Company’s consolidated financial statements.

Table of Contents

Part I — Financial Information

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements within the meaning of the federal securities laws. As a general matter, forward-looking statements are those focused upon future plans, objectives or performance as opposed to historical items and include statements of anticipated events or trends and expectations and beliefs relating to matters not historical in nature. Such forward-looking statements involve known and unknown risks and are subject to uncertainties and factors relating to Core Molding Technologies' operations and business environment, all of which are difficult to predict and many of which are beyond Core Molding Technologies' control. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expect,” “intend,” “plans,” “projects,” “believes,” “estimates,” “encouraged,” “confident” and similar expressions are used to identify these forward-looking statements. These uncertainties and factors could cause Core Molding Technologies' actual results to differ materially from those matters expressed in or implied by such forward-looking statements.

Core Molding Technologies believes that the following factors, among others, could affect its future performance and cause actual results to differ materially from those expressed or implied by forward-looking statements made in this report: business conditions in the plastics, transportation, marine and commercial product industries (including changes in demand for truck production);
federal and state regulations (including engine emission regulations); general economic, social, regulatory (including foreign trade policy) and political environments in the countries in which Core Molding Technologies operates; the adverse impact of coronavirus (COVID-19) global pandemic on our business, results of operations, financial position, liquidity or cash flow, as well as impact on customers and supply chains; safety and security conditions in Mexico and Canada; dependence upon certain major customers as the primary source of Core Molding Technologies’ sales revenues; efforts of Core Molding Technologies to expand its customer base; the ability to develop new and innovative products and to diversify markets, materials and processes and increase operational enhancements; the actions of competitors, customers, and suppliers; failure of Core Molding Technologies’ suppliers to perform their obligations; the availability of raw materials; inflationary pressures; new technologies; regulatory matters; labor relations; labor availability; the loss or inability of Core Molding Technologies to attract and retain key personnel;
the Company's ability to successfully identify, evaluate and manage potential acquisitions and to benefit from and properly integrate any completed acquisitions; federal, state and local environmental laws and regulations; the availability of capital;
the ability of Core Molding Technologies to provide on-time delivery to customers, which may require additional shipping expenses to ensure on-time delivery or otherwise result in late fees and other customer char ges; risk of cancellation or rescheduling of orders; management’s decision to pursue new products or businesses which involve additional costs, risks or capital expenditures; inadequate insurance coverage to protect against potential hazards; equipment and machinery failure;
product liability and warranty claims; and other risks identified from time to time in Core Molding Technologies’ other public documents on file with the Securities and Exchange Commission, including those described in Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2019.

Table of Contents

Description of the Company

Core Molding Technologies and its subsidiaries operate in the composites market as one operating segment as a molder of thermoplastic and thermoset structural products. The Company's operating segment consists of two component reporting units, Core Traditional and Horizon Plastics. The Company offers customers a wide range of manufacturing processes to fit various program volume and investment requirements. These processes include compression molding of sheet molding compound ("SMC"), bulk molding compounds ("BMC"), resin transfer molding ("RTM"), liquid molding of dicyclopentadiene ("DCPD"), spray-up and hand-lay-up, glass mat thermoplastics ("GMT"), direct long-fiber thermoplastics ("D-LFT") and structural foam and structural web injection molding ("SIM"). Core Molding Technologies serves a wide variety of markets, including the medium and heavy-duty truck, marine, automotive, agriculture, construction, and other commercial products. The demand for Core Molding Technologies’ products is affected by economic conditions in the United States, Mexico, and Canada. Core Molding Technologies’ manufacturing operations have a significant fixed cost component. Accordingly, during periods of changing demand, the profitability of Core Molding Technologies’ operations may change proportionately more than revenues from operations.

In 1996, Core Molding Technologies acquired substantially all of the assets and assumed certain liabilities of Columbus Plastics, a wholly owned operating unit of Navistar’s truck manufacturing division since its formation in late 1980. Columbus Plastics, located in Columbus, Ohio, was a compounder and compression molder of SMC. In 1998, Core Molding Technologies began operations at its second facility in Gaffney, South Carolina, and in 2001, Core Molding Technologies added a production facility in Matamoros, Mexico by acquiring certain assets of Airshield Corporation. As a result of this acquisition, Core Molding Technologies expanded its fiberglass molding capabilities to include the spray up, hand-lay-up open mold processes and RTM closed molding. In 2005, Core Molding Technologies acquired certain assets of the Cincinnati Fiberglass Division of Diversified Glass, Inc., a Batavia, Ohio-based, privately held manufacturer and distributor of fiberglass reinforced plastic components supplied primarily to the heavy-duty truck market. In 2009, the Company completed construction of a new production facility in Matamoros, Mexico that replaced its leased facility. In March 2015, the Company acquired substantially all of the assets of CPI Binani, Inc., a wholly owned subsidiary of Binani Industries Limited, located in Winona, Minnesota ("CPI"), which expanded the Company's process capabilities to include D-LFT and diversified the customer base. In January 2018, the Company acquired substantially all the assets of Horizon Plastics, which has manufacturing operations in Cobourg, Ontario and Escobedo, Mexico. This acquisition expanded the Company's customer base, geographic footprint, and process capabilities to include structural foam and structural web molding.

Business Overview

General

The Company’s business and operating results are directly affected by changes in overall customer demand, operational costs and performance and leverage of our fixed cost and selling, general and administrative ("SG&A") infrastructure.

Product sales fluctuate in response to several factors including many that are beyond the Company’s control, such as general economic conditions, interest rates, government regulations, consumer spending, labor availability, and our customers’ production rates and inventory levels. Product sales consist of demand from customers in many different markets with different levels of cyclicality and seasonality. Product sales from the Company's largest market, the North American truck market, which is highly cyclical, accounted for 42% and 60% of the Company’s product revenue for the nine months ended September 30, 2020 and 2019, 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. Performance is also affected by manufacturing efficiencies, including items such as on time delivery, quality, scrap, and productivity. Market factors of supply and demand can impact operating costs. In periods of rapid increases or decreases in customer demand, the Company is required to ramp operations activity up or down quickly which may impact manufacturing efficiencies more than in periods of steady demand.

Operating performance is also dependent on the Company’s ability to effectively launch new customer programs, which are typically extremely complex in nature. The start of production of a new program is the result of a process of developing new molds and assembly equipment, validation testing, manufacturing process design, development and testing, along with training and often hiring employees. Meeting the targeted levels of manufacturing efficiency for new programs usually occurs over time as the 28

Table of Contents

Company gains experience with new tools and processes. Therefore, during a new program launch period, start-up costs and inefficiencies can affect operating results.

Nine Months Ended September30, 2020

Product sales for the nine months ended September 30, 2020 decreased 29% compared to the same period in 2019. Operating income increased from a loss of $7,406,000 to income of $7, 377,000 for the nine months ended September 30, 2020 compared to the same period a year ago. Lower demand from our customers as a result of a cyclical downturn in the truck market and the negative effect of COVID-19 on most customer demand were the primary drivers of the sales decrease. The increase in operating income was largely due to improved manufacturing efficiencies and cost savings at several of the Company's facilities.
The Company also incurred lower operating and SG&A cost s.

For the nine months ended September 30, 2020, product sales to truck customers decreased by 45% compared to the same period in 2019, as a result of a cyclical downturn in the truck market and demand deterioration related to COVID-19. According to ACT Research, North American heavy-duty truck production decreased approximately 47% for the nine months ended September 30, 2020 compared to the same period in 2019.

For the nine months ended September 30, 2020, the Company recorded net income of $9,032 ,000 or $1.07 per basic and diluted share, compared with net loss of $9,761,000, or ($1.25) per basic and diluted share for the nine months ended September 30, 2019. Net income in 2020 was favorably impacted by $5,638,000, or $0.69 per share, as a result of a tax valuation allowance reversal and a tax rate benefit due to tax law changes that allow the Company to carryback net operating losses to offset taxable income in 2013 through 2015 and the tax rate change of 21% to 34% .

Looking forward, the Company anticipates lower product sales for 2020 when compared to 2019, due to the negative impact of customer shutdowns as a result of COVID-19 and lower demand from truck customers. Based on customer forecasts, the Company anticipates product sales demand to be down slightly for the three months ended December 31, 2020 when compared to the same period ended December 31, 2019

Results of Operations

Three Months Ended September30, 2020, as Compared to Three Months Ended September30, 2019

Net sales for the three months ended September 30, 2020 and 2019 totaled $59,873,000 and $74,655,000, respectively. Included in net sales were tooling project sales of $5,663,000 and $7,144,000 for the three months ended September 30, 2020 and 2019, respectively. These sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period -to-period basis.
Product sales, excluding tooling project sales, for the three months ended September 30, 2020 were $54,240,000 compared to $67,511,000 for the same period in 2019. This decrease in sales is primarily the result of lower demand from truck and marine customers partially offset by higher demand from customers in the construction and all-terrain vehicle market.

Gross margin was approximately 18.1 % of sales for the three months ended September 30, 2020, compared with 8.7% for the three months ended September 30, 2019. The gross margin percentage increase was due to a favorable net change in product mix and productivity efficiency of 11.9%, offset by an increase in sales return of 2.0% and lower leverage of fixed costs of 1.0%.

Selling, general and administrative expense (“SG&A”) was $6,517,000 for the three months ended September 30, 2020, compared to $7,041,000 for the three months ended September 30, 2019. Decreased SG&A expenses resulted primarily from lower professional and outside service expenses of $272,000 and travel expenses of $157,000.

The Company incurred a goodwill impairment of $4,100,000 associated with its Horizon Plastics reporting unit during the three months ended September 30, 2019. The Company incurred lower profit margins in its Horizon Plastics reporting unit caused by selling price decreases that the Company had not been able to fully offset with material cost reductions.

Table of Contents

Interest expense totaled $966,000 for the three months ended September 30, 2020, compared to interest expense of $1,113,000 for the three months ended September 30, 2019. The decrease in interest expense was due to a lower average outstanding debt balance, offset by higher interest rates during the three months ended September 30, 2020, when compared to the same period in 2019.

Income tax expense for the three months ended September 30, 2020 was 1.0% of income before income taxes, and income tax for the three months ended September 30, 2019 was 6.6% of loss before income taxes. The Company’s effective tax rates reflect the effects of taxable income and taxable losses being generated in tax jurisdictions with different tax rates. The effective tax rate for 2020 reflects recording net operating losses in US jurisdictions at the tax rate which will be applied when the Company carries 2020 losses back to previous tax years.

The Company recorded net income for the three months ended September 30, 2020 of $3,343,000 or $0.39 per basic and diluted share, compared with a net loss of $6,125,000, or $0.78 per basic and diluted share, for the three months ended September 30, 2019.

Comprehensive income totaled$3,742,000 for the three months ended September 30, 2020, compared tocomprehensive losses of $6,462,000for the same period ended September 30, 2019. The increase was primarily related to an increase in net income of $9,468,000 and a change in unrealized foreign currency hedges of $ 523,000, net of tax.

Nine Months Ended September30, 2020, as Compared to Nine Months Ended September30, 2019

Net sales for the nine months ended September 30, 2020 and 2019 totaled $161,705,000 and $228,168,000, respectively.
Included in total sales were tooling project sales of $9,686,000 and $13,765,000 for the nine months ended September 30, 2020 and 2019, respectively. These sales are sporadic in nature and fluctuate in regard to scope and related revenue on a period-toperiod basis. Product sales, excluding tooling project sales, for the nine months ended September 30, 2020 were $152,019,000 compared to $214,403,000 for the same period in 2019. This decrease in sales is primarily the result of lower cyclical demand from truck customers as well as lower demand from most all customers as a result of COVID -19.

Gross margin was approximately 15 .2% of sales for the nine months ended September 30, 2020, compared with 7.9% for the nine months ended September 30, 2019. The gross margin percentage increase was due to favorable net change in product mix and manufacturing efficiency of 8.9% and a favorable net change in selling price and material costs of 1.1%, offset by lower leverage of fixed costs of 2.1% and higher sales returns of 0.9%.

Selling, gener al and administrative expense (“SG&A”) was $17,136,000 for the nine months ended September 30, 2020, compared to $21,431,000 for the nine months ended September 30, 2019. The decrease in SG&A expense primarily resulted from lower professional and outside services of $1,417,000, government subsides enacted as a result of COVID-19 of $1,416,000 and lower travel expenses of $619,000.

The Company incurred a goodwill impairment of $4,100,000 associated with its Horizon Plastics reporting unit during the nine months ended September 30, 2019. The Company incurred lower profit margins in its Horizon Plastics reporting unit caused by selling price decreases that the Company had not been able to fully offset with material cost reductions.

Interest expense totaled $3,338,000 for the nine months ended September 30, 2020, compared to interest expense of $2,878,000 for the nine months ended September 30, 2019. The increase in interest expense was due to higher interest rates during the nine months ended September 30, 2020, when compared to the same period in 2019.

Income tax benefit for the nine months ended September 30, 2020 was 120.3% of the income before income taxes, and income tax benefit for the nine months ended September 30, 2019 was 4.4% of the loss before income taxes. The Company’s effective tax rates reflect the effects of taxable income and taxable losses being generated in tax jurisdictions with different tax rates.

Table of Contents

The Company recorded a net income for the nine months ended September 30, 2020 of $9,032,000, or $1.07 per basic and diluted share, compared with a net loss of $9.761,000 or $1.25 per basic and diluted share, for the nine months ended September 30, 2019.

Comprehensive income totaled$8,063,000 for the nine months ended September 30, 2020, compared tocomprehensive losses of $10,215,000for the same period ended September 30, 2019. The increase was primarily related to higher net income of $18,793,000 and a change in unrealized foreign currency hedges of $753,000, net of tax, for the nine months ended September 30, 2020.

Liquidity and Capital Resources

Historically, the Company ’s primary sources of funds have been cash generated from operating activities and borrowings from third parties. Primary cash requirements are for operating expenses, increases in working capital, capital expenditures, repayment of long-term debt and business 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. As of September 30, 2020, the Company had outstanding foreign exchange contracts with notional amounts totaling $51,000, compared to $15,358,000 outstanding as of December 31, 2019. As of September 30, 2020, the Company also had outstanding interest rate swaps with notional amounts totaling $27,125,000, compared to $29,750,000 outstanding as of December 31, 2019.

Cash provided by operating activities for the nine months ended September 30, 2020 totaled $31,052,000. Net income of $9,032,000 positively impacted operating cash flows. Non-cash deductions of depreciation and amortization included in net income amounted to $8,425,000. Changes in working capital increased cash provided by operating activities by $11,816,000, which primarily related to changes in accounts receivable, inventory and other accrued liabilities, offset by accounts payable.

At September 30, 2020, the Company had $14,809,000 cash on hand, and an available balance on the revolving line of credit of $20,000,000. If a material adverse change in the financial position of the Company should occur, or if actual sales or expenses are substantially different than what has been forecasted, the Company's liquidity and ability to obtain further financing to fund future operating and capital requirements could be negatively impacted.

Cash used in investing activities for the nine months ended September 30, 2020 was $2,716,000, which related to purchases of property, plant and equipment. The Company anticipates spending up to $2,000,000 during the remainder of 2020 on property, plant and equipment purchases for all of the Company's operations.

At September 30, 2020, purchase commitments for capital expenditures in progress were $338,000. The Company anticipates using cash from operations and its available revolving line of credit to fund capital investments.

Cash used in financing activities for the nine months ended September 30, 2020 totaled $15,383,000, which primarily consisted of net revolving loan payments of $12,007,000 and net scheduled repayments of principal on outstanding term loans of $3,391,000. The Company was able to make the repayments primarily due to the cash provided by operating activities of the $15,399,000 for the nine months ended of September 30, 2020.

Table of Contents

loans in an aggregate principal amount of up to $13,000,000 from the Lenders, (iii) the Company obtained a Letter of Credit Commitment of $250,000, of which $160,000 has been issued and (iv) the Company repaid the outstanding term loan balance of $6,750,000. The A/R Credit Agreement is secured by a guarantee of each U.S. and Canadian subsidiary of the Company, and by a lien on substantially all of the present and future assets of the Company and its U.S. and Canadian subsidiaries, except that only 65% of the stock issued by Corecomposites de Mexico, S. de R.L. de C.V. has been pledged.

During 2019, the Company and the Lenders acknowledged and confirmed that an event of default occurred under the A/R Credit Agreement resulting from the Borrowers failure to maintain the required Fixed Charge Coverage Ratio (as defined in the A/R Credit Agreement). On November 22, 2019, the Company and the Lenders entered into a forbearance agreement (the "Forbearance Agreement"), which was amended twice, first on March 13, 2020 agreement (the "Amended Forbearance Agreement") and then on May 29, 2020 (the “Second Amended Forbearance Agreement”).

The Second Amended Forbearance Agreement provided that the Company and the Lenders agreed to modify certain terms of the Amended Forbearance Agreement and extend the Forbearance Agreement through September 30, 2020. The modifications include (1) that the Company will maintain liquidity of not less than $5,000,000, to be measured twice monthly, on every second and fourth Friday of each month during the forbearance period, (2) the Company shall maintain minimum year-to-date earnings before income tax, depreciation and amortization (“YTD-EBITDA”) of not less than $5,000,000, measured upon delivery of Company’s July 2020 financial statements and also upon delivery of Company’s August 2020 financial statements, with YTD- EBITDA determined based on consolidated EBITDA, (3) a change of interest rate to LIBOR rate plus 700 basis points with a LIBOR floor of 100 basis points, (4) on or before July 15, 2020 the Borrowers shall have obtained executed term sheets from involved parties and/or lenders, (5) on or before September 30, 2020, the Borrowers shall have closed on a new capital structure, (6) forbearing compliance with the leverage covenant and fixed charge covenant through September 30, 2020, and (7)
implementation of a capital expenditure spend limit of $3,000,000 for the nine months ended September 30, 2020.

The Company has unblocked maximum availability of $20,000,000 of variable rate revolving loans of which $0 is outstanding as of September 30, 2020.

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 550 basis point and a term of 60 months. The amount outstanding at September 30, 2020 was $160,000 of which, $127,000 was classified as long term debt.

On October 27, 2020, the Company entered into the Refinancing Agreements, as defined in Note 2, “Critical Accounting Policies and Estimates”, and repaid all of its obligations under the A/R Credit Agreement. Management believes that existing cash, cash flow from operating activities and available borrowings under the Refinancing Agreements will be sufficient to meet the Company’s liquidity needs for the next 12 months. Based on the Company ’s forecasts, which are based on industry analysts’ estimates of heavy and medium-duty truck production volumes, customers' forecasts, as well as other assumptions, management believes that the Company will be able to maintain compliance with its financial covenants for the next 12 months. If a material adverse change in the financial position of the Company should occur, or if actual sales or expenses are substantially different than what has been forecasted, the Company’s liquidity and ability to obtain further financing to fund future operating and capital requirements could be negatively impacted.

Off-Balance Sheet Arrangements

The Company did not have any significant off-balance sheet arrangements as of September 30, 2020 or December 31, 2019.

Table of Contents

The Company did not have or experience any material changes outside the ordinary course of business as to contractual obligations, including long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations or other long- term liabilities reflected on the Company’s balance sheet under GAAP, as of September 30, 2020 or December 31, 2019.

Critical Accounting Policies and Estimates

For information on critical accounting policies and estimates, see Note 2, "Critical Accounting Policies and Estimates," to the consolidated financial statements included herein.

Recent Accounting Pronouncements

For information on the impact of recently issued accounting pronouncements, see Note 3, "Recent Accounting Pronouncements," to the consolidated financial statements included here

Table of Contents

Part I — Financial Information

Item 3.Quantitative and Qualitative Disclosures About Market Risk

Core Molding Technologies ’ primary market risk results from changes in the price of commodities used in its manufacturing operations. Core Molding Technologies is also exposed to fluctuations in interest rates and foreign currency fluctuations associated with the Mexican peso and Canadian Dollar. Core Molding Technologies does not hold any material market risk sensitive instruments for trading purposes. The Company may use derivative financial instruments to hedge exposure to fluctuations in foreign exchange rates and interest rates.

Core Molding Technologies has the following three items that are sensitive to market risks: (1)Revolving Loans and Term Loans

under the Amended and Restated Credit Agreement, some of which bear a variable interest rate; (2) foreign currency purchases in which the Company purchases Mexican pesos and Canadian dollars with United States dollars to meet certain obligations; and (3) raw material purchases in which Core Molding Technologies purchases various resins, fiberglass, and metal components for use in production. The prices and availability of these materials are affected by the prices of crude oil, natural gas and other feedstocks, tariffs, as well as processing capacity versus demand.

Assuming a hypothetical 10% change in short-term interest rates, interest paid on the Term Loan would have been impacted, as the interest rate on these loans is based upon LIBOR. It would not, however, have a material effect on earnings before tax.

Assuming a hypothetical 10% decrease in the United States dollar to Mexican peso and Canadian dollar exchange rate, the Company would be impacted by an increase in operating costs, which would have an adverse effect on operating margins.

Assuming a hypothetical 10% increase in commodity prices, Core Molding Technologies would be impacted by an increase in raw material costs, which would have an adverse effect on operating margins.

Table of Contents

Part I — Financial Information

Item 4.Controls and Procedures

As of the end of the period covered by this report, the Company has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and its Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule13a-15(e) of the Exchange Act). Based upon

this evaluation, the Company’s management, including its Chief Executive Officer and its Chief Financial Officer, concluded that the Company ’s disclosure controls and procedures were (i) effective to ensure that information required to be disclosed in the Company ’s reports filed or submitted under the Exchange Act was accumulated and communicated to the Company ’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure, and (ii)effective to ensure that information required to be disclosed in the Company ’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission ’s rules and forms.There were no changes in internal controls over financial reporting (as such term is defined in Exchange Act Rule13a-15(f)) that occurred in the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

Table of Contents

Part II — Other Information

Legal Proceedings

From time to time, the Company is involved in litigation incidental to the conduct of its business. The Company is presently not involved in any legal proceedings which in the opinion of management are likely to have a material adverse effect on the Company's consolidated financial position or results of operations.

Risk Factors

The following risk factor supplements the “Risk Factors” section in Part 1, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (our “Form 10-K"). The following risk factor disclosure should be read in conjunction with the other risk factors set out in our Form 10-K.

The Recent Coronavirus (COVID-19) Outbreak Has Adversely Impacted our Business and 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

The global outbreak of the coronavirus (COVID-19) has significantly increased economic, demand and operational uncertainty.
We have global operations, customers and suppliers, including in countries most impacted by COVID-19. 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 and business shutdowns and such authorities may impose additional restrictions. 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. 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.

The impact of COVID-19 on the global economy and our customers has negatively impacted demand for our products and could continue to do so in the future. Its effects could also result in further disruptions to our manufacturing operations, including higher rates of employee absenteeism, and supply chain disruption, which could continue to negatively impact our ability to meet customer demand. Additionally, the potential deterioration and volatility of credit and financial markets could limit our ability to obtain external financing. The extent to which COVID-19 will impact our business, results of operations, financial condition or liquidity is highly uncertain and will depend on future developments, including the spread and duration of the virus, potential actions taken by governmental authorities, and how quickly economic conditions stabilize and recover.

Unregistered Sales of Equity Securities and Use of Proceeds

Total Number of SharesMaximum Number that Purchased as Part ofMay Yet be Purchased Total Number ofAverage PricePublicly AnnouncedUnder the Plans or PeriodShares PurchasedPaid per SharePlans or ProgramsPrograms July 1 to 30, 20203,7884.61—— August 1 to 31, 2020———— September 1 to 30, 2020————

Defaults Upon Senior Securities

None.

Table of Contents

Mine Safety Disclosures

None.

Other Information

None.

Item 6.Exhibits

See Index to Exhibits.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CORE MOLDING TECHNOLOGIES, INC.
Date:November6, 2020By:/s/ David L. Duvall David L. Duvall President, Chief Executive Officer, and Director

Date:November6, 2020By:/s/ John P. Zimmer John P. Zimmer Executive Vice President, Secretary, Treasurer and Chief Financial Officer

Table of Contents

INDEX TO EXHIBIT

Exhibit No.DescriptionLocation

2(a)(1)Asset Purchase Agreement dated as of September12,Incorporated by reference to Exhibit2-A to 1996, as amended October31, 1996, between NavistarRegistration Statement on FormS-4 (Registration No.
and RYMAC Mortgage Investment Corporation1333-15809)

2(a)(2)Second Amendment to Asset Purchase AgreementIncorporated by reference to Exhibit2(a)(2) to Annual dated December16, 19961Report on Form10-K for the year-ended December31, 2001

2(b)(1)Agreement and Plan of Merger dated as ofIncorporated by reference to Exhibit2-B to November1, 1996, between Core MoldingRegistration Statement on FormS-4 (Registration No.
Technologies, Inc. and RYMAC Mortgage Investment333-15809)
Corporation

2(b)(2)First Amendment to Agreement and Plan of MergerIncorporated by reference to Exhibit2(b)(2) to Annual dated as of December27, 1996 between Core MoldingReport on Form10-K for the year ended December31, Technologies, Inc. and RYMAC Mortgage Investment2002 Corporation

2(c)Asset Purchase Agreement dated as of October10,Incorporated by reference to Exhibit1 to Current 2001, between Core Molding Technologies, Inc. andReport on Form8-K filed October31, 2001 Airshield Corporation

2(d)Asset Purchase Agreement dated as of March20,Incorporated by reference to Exhibit2.1 to Current 2015, between Core Molding Technologies, Inc andReport on Form8-K filed March23, 2015 CPI Binani, Inc.

2(e)Asset Purchase Agreement dated as of January16,Incorporate by reference to Exhibit 2.1 to Current 2018 between 1137952 B.C. Ltd., Horizon PlasticsReport on Form 8-K filed January19, 2018

International, Inc., 1541689 Ontario Inc., 2551024 Ontario Inc., Horizon Plastics de Mexico, S.A. de C.V., and Brian Read

3(a)(1)Certificate of Incorporation of Core MoldingIncorporated by reference to Exhibit4(a) to Technologies, Inc. as filed with the Secretary of StateRegistration Statement on FormS-8 (Registration No.
of Delaware on October8, 1996333-29203)

3(a)(2)Certificate of Amendment of Certificate ofIncorporated by reference to Exhibit4(b) to Incorporation of Core Molding Technologies, Inc. asRegistration Statement on FormS-8 (Registration No.
filed with the Secretary of State of Delaware on333-29203)
November6, 1996

3(a)(3)Certificate of Amendment of Certificate ofIncorporated by reference to Exhibit3(a)(4) to Incorporation as filed with the Secretary of State ofQuarterly Report on Form 10-Q for the quarter ended Delaware on August28, 2002September30, 2002

3(a)(4)Certificate of Designation, Preferences and Rights ofIncorporated by reference to Exhibit3.1 to Current SeriesA Junior Participating Preferred Stock as filedReport on Form8-K filed July19, 2007 with the Secretary of State of Delaware on July18, 2007

3(a)(5)Certificate of Elimination of Series A JuniorIncorporated by reference to Exhibit3(a)(5) to Current Participating Preferred Stock, as filed with theReport on Form8-K filed April2, 2015 Secretary of State of the State of Delaware on April2, 2015.

3(b)Amended and Restated By-Laws of Core MoldingIncorporated by reference to Exhibit3.1 to Current Technologies, Inc.Report on Form8-K filed January4, 2008

3(b)(1)Amendment No. 1 to the Amended and Restated By-Incorporated by reference to Exhibit3.1 to Current Laws of Core Molding Technologies, Inc.Report on Form8-K filed December17, 2013

4(a)(1)Certificate of Incorporation of Core MoldingIncorporated by reference to Exhibit4(a) to Technologies, Inc. as filed with the Secretary of StateRegistration Statement on Form S-8 (Registration of Delaware on October8, 1996No.333-29203)

Table of Contents

Exhibit No.DescriptionLocation 4(a)(2)Certificate of Amendment of Certificate ofIncorporated by reference to Exhibit4(b) to Incorporation of Core Molding Technologies, Inc. asRegistration Statement on Form S-8 (Registration filed with the Secretary of State of Delaware onNo.333-29203)
November6, 1996

4(a)(3)Certificate of Amendment of Certificate ofIncorporated by reference to Exhibit3(a)(4) to Incorporation as filed with the Secretary of State ofQuarterly Report on Form10-Q for the quarter ended Delaware on August28, 2002September30, 2002

4(a)(4)Certificate of Designation, Preferences and Rights ofIncorporated by reference to Exhibit3.1 to Current Series A Junior Participating Preferred Stock as filedReport on Form 8-K filed July19, 2007 with the Secretary of State of Delaware on July18, 2007

4(a)(5)Certificate of Elimination of Series A JuniorIncorporated by reference to Exhibit3(a)(5) to Current Participating Preferred Stock, as filed with theReport on Form 8-K filed April2, 2015 Secretary of State of the State of Delaware on April2, 2015 4 (a) (6)Certificate of Designation, Preferences and Rights ofIncorporated by reference to Exhibit 3.1 to Current Series B Junior Participating Preferred Stock, as filedReport on Form 8-K filed April 22, 2020

with the Secretary of State of the State of Delaware on April 21, 2020 4(a)(7)Rights Agreement, dated as of April 21, 2020, by andIncorporated by reference to Exhibit 4.1 to Current between Core Molding Technologies, Inc. andReport on Form 8-K filed April 22, 2020 American Stock Transfer & Trust Company, as Rights Agent

11Computation of Net Income per ShareExhibit11 omitted because the required information is Included in Notes to Financial Statement

31(a)Section302 Certification by David L. Duvall,Filed Herein President, Chief Executive Officer, and Director

31(b)Section302 Certification by John P. Zimmer, ViceFiled Herein President, Secretary, Treasurer, and Chief Financial Officer

32(a)Certification of David L. Duvall, Chief ExecutiveFiled Herein Officer of Core Molding Technologies, Inc., dated November6, 2020, pursuant to 18 U.S.C. Section1350

32(b)Certification of John P. Zimmer, Chief FinancialFiled Herein Officer of Core Molding Technologies, Inc., dated November6, 2020, pursuant to 18 U.S.C. Section1350

101.INSXBRL Instance DocumentFiled Herein

101.SCHXBRL Taxonomy Extension Schema DocumentFiled Herein

101.CALXBRL Taxonomy Extension Calculation LinkbaseFiled Herein

101.LABXBRL Taxonomy Extension Label LinkbaseFiled Herein

101.PREXBRL Taxonomy Extension Presentation LinkbaseFiled Herein

101.DEFXBRL Taxonomy Extension Definition LinkbaseFiled Herein

The Asset Purchase Agreement, as filed with the Securities and Exchange Commission as Exhibit2-A to Registration Statement on Form S-4 (Registration No.333-15809), omits the exhibits (including the Buyer Note, Special Warranty Deed, Supply

Agreement, Registration Rights Agreement and Transition Services Agreement identified in the Asset Purchase Agreement) and schedules (including those identified in Sections1, 3, 4, 5, 6, 8 and 30 of the Asset Purchase Agreement). Core Molding Technologies, Inc. will provide any omitted exhibit or schedule to the Securities and Exchange Commission upon request.

AI assistant

CORE MOLDING TECHNOLOGIES INC Interim / Quarterly Report 2020

33766_10-q_2020-11-09_95606a22-43b9-4845-96f8-9dfcc25453ad.zip

AI assistant

CORE MOLDING TECHNOLOGIES INC — Interim / Quarterly Report 2020

33766_10-q_2020-11-09_95606a22-43b9-4845-96f8-9dfcc25453ad.zip

More from CORE MOLDING TECHNOLOGIES INC

CORE MOLDING TECHNOLOGIES INC Interim / Quarterly Report 2020