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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
  þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2006
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
 For the transition period from  to
 Commission file number 001-12505
 CORE MOLDING TECHNOLOGIES, INC.
  Delaware
    
    31-1481870(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)800 Manor Park Drive, P.O. Box 28183, Columbus, Ohio
    
    43228 - 0183(Address of principal executive offices)
    
    (Zip Code)
   Title of each class
    
    Name of each exchange on which registeredCommon Stock, par value $.01
    
    American Stock Exchange
 
 o þ
 o þ
 þ o
 o
  o o þ
 o þ




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CONTENTS
 PageNo.Defined TermsPart IItem 1. Business
    
    
    3Item 1A. Risk Factors
    
    
    10Item 1B. Unresolved Staff Comments
    
    
    13Item 2. Properties
    
    
    14Item 3. Legal Proceedings
    
    
    15Item 4. Submission of Matters to a Vote of Security Holders
    
    
    15Part IIItem 5. Market for the Registrants Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
    
    
    16Item 6. Selected Financial Data
    
    
    17Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    18Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 8. Financial Statements and Supplementary Data
    
    
    25Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
    
    
    46Item 9A. Controls and Procedures
    
    
    46Item 9B. Other Information
    
    
    46Part IIIItem 10. Directors, Executive Officers, and Corporate Governance
    
    
    47Item 11. Executive Compensation
    
    
    47Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    47Item 13. Certain Relationships, Related Transactions, and Director Independence
    
    
    47Item 14. Principal Accountant Fees and Services
    
    
    47Part IVItem 15. Exhibits and Financial Statement Schedules
    
    
    48Signatures
    
    
    49Exhibit IndexEX-10(B)EX-23EX-24EX-31(A)EX-31(B)EX-32(A)EX-32(B)
  2




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PART I
 
 ITEM 1. BUSINESS
 HISTORICAL DEVELOPMENT OF BUSINESS OF CORE MOLDING TECHNOLOGIES, INC.
       3




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DESCRIPTION OF BUSINESS OF CORE MOLDING TECHNOLOGIES, INC.
 Certain statements under this caption of this Annual Report on Form 10-K constitute
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. 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, watercraft, and commercial product industries; general economic conditions in the
markets in which Core Molding Technologies operates; dependence upon three major customers as the
primary source of Core Molding Technologies sales revenues; recent efforts of Core Molding
Technologies to expand its customer base; failure of Core Molding Technologies suppliers to
perform their contractual obligations; the availability of raw materials; inflationary pressures;
new technologies; competitive and regulatory matters; labor relations; the loss or inability of
Core Molding Technologies to attract key personnel; 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; risk of cancellation
or rescheduling of orders; managements decision to pursue new products or businesses which involve
additional costs, risks, or capital expenditures; 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 this Annual Report on Form 10-K .
   
    
    heat resistance
    
    corrosion resistance
    
    lighter weight
    
    lower cost
    
    greater flexibility in product design
    
    part consolidation for multiple piece assemblies
    
    lower initial tooling costs for lower volume applications
    
    high strength-to-weight ratio
    
    dent-resistance in comparison to steel or aluminum.
  4




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MAJOR COMPETITORS
  MAJOR CUSTOMERS
  Relationship with International
    Relationship with PACCAR
   5




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Relationship with Freightliner
   OTHER CUSTOMERS
  EXPORT SALES
  FOREIGN OPERATIONS
   PRODUCTS
 SMC Compound
   
    
    Control information during various production processes; and
    
    Data for statistical batch controls.
  SMC PoundsProducedYear
    
    (Millions)2006
    
    
    312005
    
    
    312004
    
    
    32
 6




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Glass Mat Thermoplastic (GMT)
  Closed Molded Products
  Compression Molding 
    Resin
Transfer Molding (RTM) 
 Open Molded Products
  Hand-Lay-Up 
 Spray-Up 
 7




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Assembly,
Machining, and Paint Products
   RAW MATERIALS
  BACKLOG
  CAPACITY CONSTRAINTS
    8




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CAPITAL EXPENDITURES AND RESEARCH AND DEVELOPMENT
    ENVIRONMENTAL COMPLIANCE
   EMPLOYEES
  PATENTS,
TRADE NAMES, AND TRADEMARKS
  SEASONALITY & BUSINESS CYCLE
  9




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ITEM 1A. RISK FACTORS
  We are dependent on sales to a small number of our major customers.
    Our business is affected by the cyclical nature of the industries and markets that we serve.
  Price increases in raw materials and availability of raw materials could adversely affect our
operating results and financial condition.
  Cost reduction and quality improvement initiatives by original equipment manufacturers could have a
material adverse effect on our business, results of operations, or financial condition.
  10




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We operate in highly competitive markets.
  We may be subject to additional shipping expense or late fees if we are not able to meet our
customers on-time demand for our products.
  If we fail to retain key personnel our business could be harmed.
  Work stoppages or other labor issues at our facilities or at our customers facilities could
adversely affect our operations.
   Increases in energy prices will increase our operating costs and likely reduce our profitability.
  Our business is subject to risks associated with manufacturing processes.
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Our insurance coverage may be inadequate to protect against the potential hazards incident to our
business.
  We have made acquisitions and may make acquisitions in the future. We may not realize the improved
operating results that we anticipate from these acquisitions or from acquisitions we may make in
the future, and we may experience difficulties in integrating the acquired businesses or may
inherit significant liabilities related to such businesses.
   If we are unable to meet future capital requirements, our business may be adversely affected.
  Our products may be rendered obsolete or less attractive if there are changes in technology,
regulatory requirements, or competitive processes.
  12




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Our stock price can be volatile.
  We are subject to environmental rules and regulations that may require us to make substantial
expenditures.
  Although we do not presently anticipate terminating any senior management employees, certain senior
management employees have entered into potentially costly severance arrangements with us if
terminated after a change in control.
  Our stock price may be adversely affected as a result of shares eligible for future sale by
International.
  Our foreign operations subject us to risks that could negatively affect our business.
  
 ITEM 1B. UNRESOLVED STAFF COMMENTS
  13




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ITEM 2. PROPERTIES
    ApproximateSquare FeetManufacturing/Warehouse
    
    
    315,409Office
    
    
    16,149331,558
   ApproximateSquare FeetManufacturing/Warehouse
    
    
    105,700Office
    
    
    5,200110,900
   ApproximateSquare FeetManufacturing/Warehouse
    
    
    103,976Office
    
    
    3,764107,740
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ApproximateSquare FeetManufacturing/Warehouse
    
    
    309,400Office
    
    
    3,600313,000
  
 ITEM 3. LEGAL PROCEEDINGS
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 .
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PART II
 
 ITEM 5.
    
    MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER
MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
   High
    
    
    LowCore Molding
Technologies, Inc.Fourth Quarter
    
    
    2006
    
    
    $
    11.22
    
    
    $
    6.59Third Quarter
    
    
    2006
    
    
    
    7.10
    
    
    
    5.25Second Quarter
    
    
    2006
    
    
    
    7.90
    
    
    
    5.02First Quarter
    
    
    2006
    
    
    
    8.99
    
    
    
    5.05Fourth Quarter
    
    
    2005
    
    
    $
    9.40
    
    
    $
    4.20Third Quarter
    
    
    2005
    
    
    
    11.79
    
    
    
    5.25Second Quarter
    
    
    2005
    
    
    
    13.00
    
    
    
    4.50First Quarter
    
    
    2005
    
    
    
    5.59
    
    
    
    2.65
   Equity Compensation Plan Information
  Number of Shares
    
    Weightedto be Issued Upon
    
    Average
    
    Number ofExercise of
    
    Exercise Price of
    
    SharesOutstanding
    
    Outstanding
    
    RemainingOptions or Vesting
    
    Options or
    
    Available forof Restricted
    
    Restricted
    
    FuturePlan Category
    
    Grants
    
    Grants
    
    IssuanceEquity compensation plans approved by
stockholders
    
    
    647,361
    
    
    
    3.49
    
    
    
    2,003,719Equity compensation plans not approved by
stockholders (1)
    
    
    188,900
    
    
    
    3.21
    
    
    
    
 
 (1)
    
    On August 4, 2003, the Company issued 261,250 options that were not covered under the Plan
at $3.21 to its Directors. 16




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COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
 
 
 *
    
    $100 invested on 12/31/01 in stock or index-including reinvestment of dividends. Fiscal year ending December 31.  
 ITEM 6. SELECTED FINANCIAL DATA
  Years Ended December 31,(In thousands,except per share data)
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002Operating Data:Product sales
    
    $
    150,174
    
    
    $
    124,910
    
    
    $
    103,733
    
    
    $
    81,295
    
    
    $
    81,305Tooling sales
    
    
    12,156
    
    
    
    5,633
    
    
    
    8,112
    
    
    
    11,488
    
    
    
    12,784Net sales
    
    
    162,330
    
    
    
    130,543
    
    
    
    111,845
    
    
    
    92,783
    
    
    
    94,089Gross margin
    
    
    29,869
    
    
    
    23,275
    
    
    
    17,113
    
    
    
    13,898
    
    
    
    13,511Income before interest and
taxes
    
    
    15,856
    
    
    
    10,394
    
    
    
    6,572
    
    
    
    4,403
    
    
    
    4,775Net income
    
    
    10,411
    
    
    
    6,286
    
    
    
    5,135
    
    
    
    1,665
    
    
    
    1,813Earnings Per Share Data:Net income per common share:Basic
    
    
    1.03
    
    
    
    .63
    
    
    
    .53
    
    
    
    .17
    
    
    
    .19Diluted
    
    
    1.00
    
    
    
    .60
    
    
    
    .52
    
    
    
    .17
    
    
    
    .19Balance Sheet Data:Total assets
    
    
    89,506
    
    
    
    74,221
    
    
    
    68,960
    
    
    
    56,152
    
    
    
    64,076Working capital
    
    
    27,575
    
    
    
    22,766
    
    
    
    13,530
    
    
    
    8,544
    
    
    
    15,717Long-term debt
    
    
    7,779
    
    
    
    9,595
    
    
    
    11,371
    
    
    
    12,999
    
    
    
    23,764Stockholders equity
    
    
    42,694
    
    
    
    34,141
    
    
    
    26,277
    
    
    
    20,854
    
    
    
    19,081Return on Equity
    
    
    24
    %
    
    
    18
    %
    
    
    20
    %
    
    
    8
    %
    
    
    10
    %
 17




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ITEM 7.
    
    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. 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, watercraft and commercial product industries; general economic conditions in the
markets sometimes driven by federal and state regulations(including engine emission regulations)
which Core Molding Technologies operates; dependence upon three major customers as the primary
source of Core Molding Technologies sales revenues; recent efforts of Core Molding Technologies to
expand its customer base; failure of Core Molding Technologies suppliers to perform their
contractual obligations; the availability of raw materials; inflationary pressures; new
technologies; competitive and regulatory matters; labor relations; the loss or inability of Core
Molding Technologies to attract key personnel; compliance changes to 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; risk of cancellation or
rescheduling of orders; managements decision to pursue new products or businesses which involve
additional costs, risks or capital expenditures; 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 this Annual Report on Form 10-K .
 OVERVIEW
    18




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RESULTS OF OPERATIONS
 2006 COMPARED WITH 2005
        2005 COMPARED WITH 2004
  19




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LIQUIDITY AND CAPITAL RESOURCES
   20




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CONTRACTUAL OBLIGATIONS AND OFF-BALANCE SHEET TRANSACTIONS
   2007
    
    
    2008 - 2009
    
    
    2010 - 2011
    
    
    2012 and after
    
    
    TotalDebt
    
    $
    1,816,000
    
    
    $
    3,772,000
    
    
    $
    2,798,000
    
    
    $
    1,209,000
    
    
    $
    9,595,000Interest
    
    
    467,000
    
    
    
    628,000
    
    
    
    233,000
    
    
    
    43,000
    
    
    
    1,371,000Operating lease obligations
    
    
    1,384,000
    
    
    
    1,659,000
    
    
    
    349,000
    
    
    
    
    
    
    
    3,392,000Contractual commitments for
capital expenditures
    
    
    682,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    682,000Postretirement benefits
    
    
    247,000
    
    
    
    708,000
    
    
    
    1,043,000
    
    
    
    14,110,000
    
    
    
    16,108,000Total
    
    $
    4,596,000
    
    
    $
    6,767,000
    
    
    $
    4,423,000
    
    
    $
    15,362,000
    
    
    $
    31,148,000
   21




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CRITICAL ACCOUNTING POLICIES AND ESTIMATES
   Accounts Receivable Allowances
  Inventories
  Goodwill and Long-Lived Assets
  Self-Insurance
  Post Retirement Benefits
 Employers Accounting for
Defined Benefit Pension and Other Postretirement Plans  An Amendment of FASB Statement No. 87, 88,
106, and 123R
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Revenue Recognition
  Income Taxes.
    INFLATION
  RECENT ACCOUNTING PRONOUNCEMENTS
 Accounting for Uncertainty in
Income Taxes, Accounting for Income Taxes
 Fair Value Measurements.
 Establishing the Fair Value Option for Financial Assets and Liabilities, Fair Value Measurements.
 23




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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
     24




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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
    Share-Based Payment Employers Accounting for
Defined Benefit Pension and Other Postretirement Plans
 /s/ Deloitte & Touche LLPDeloitte & Touche LLPColumbus, OhioMarch 28, 2007
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Core Molding Technologies, Inc. and Subsidiaries
Consolidated Statements of Income
 Years Ended December 31,2006
    
    
    2005
    
    
    2004Net sales:Products
    
    $
    150,173,598
    
    
    $
    124,909,485
    
    
    $
    103,733,524Tooling
    
    
    12,156,392
    
    
    
    5,633,379
    
    
    
    8,111,752Total sales
    
    
    162,329,990
    
    
    
    130,542,864
    
    
    
    111,845,276Cost of sales
    
    
    130,093,453
    
    
    
    105,054,151
    
    
    
    92,986,587Postretirement benefits expense
    
    
    2,367,602
    
    
    
    2,213,622
    
    
    
    1,745,611Total cost of sales
    
    
    132,461,055
    
    
    
    107,267,773
    
    
    
    94,732,198Gross margin
    
    
    29,868,935
    
    
    
    23,275,091
    
    
    
    17,113,078Selling, general, and administrative expense
    
    
    13,488,297
    
    
    
    12,353,191
    
    
    
    10,203,739Postretirement benefits expense
    
    
    524,889
    
    
    
    528,147
    
    
    
    337,690Total selling, general, and administrative expense
    
    
    14,013,186
    
    
    
    12,881,338
    
    
    
    10,541,429Income before interest and income taxes
    
    
    15,855,749
    
    
    
    10,393,753
    
    
    
    6,571,649Interest income
    
    
    645,120
    
    
    
    226,202
    
    
    
    6,584Interest expense
    
    
    (488,310
    )
    
    
    (750,763
    )
    
    
    (872,296
    )Income before income taxes
    
    
    16,012,559
    
    
    
    9,869,192
    
    
    
    5,705,937Income taxes:Current
    
    
    3,956,972
    
    
    
    828,012
    
    
    
    602,188Deferred
    
    
    1,644,940
    
    
    
    2,755,124
    
    
    
    (30,901
    )Total income taxes
    
    
    5,601,912
    
    
    
    3,583,136
    
    
    
    571,287Net income
    
    $
    10,410,647
    
    
    $
    6,286,056
    
    
    $
    5,134,650Net income per common share:Basic
    
    $
    1.03
    
    
    $
    0.63
    
    
    $
    0.53Diluted
    
    $
    1.00
    
    
    $
    0.60
    
    
    $
    0.52Weighted average common shares outstanding:Basic
    
    
    10,078,800
    
    
    
    9,913,209
    
    
    
    9,778,680Diluted
    
    
    10,387,122
    
    
    
    10,412,774
    
    
    
    9,820,946
  26




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Core Molding Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
 December 31,2006
    
    
    2005AssetsCurrent assets:Cash
    
    $
    16,096,223
    
    
    $
    9,413,994Accounts receivable (less allowance for doubtful
accounts: 2006 - $262,000 and 2005 - $214,000)
    
    
    22,456,177
    
    
    
    22,279,588Inventories:Finished and work in process goods
    
    
    2,793,993
    
    
    
    2,075,094Stores
    
    
    4,598,983
    
    
    
    5,219,927Total inventories
    
    
    7,392,976
    
    
    
    7,295,021Deferred tax asset
    
    
    1,529,592
    
    
    
    2,208,567Foreign sales tax receivable
    
    
    1,032,058
    
    
    
    756,723Income tax receivable
    
    
    1,432,324
    
    
    
    Prepaid expenses and other current assets
    
    
    730,109
    
    
    
    947,937Total current assets
    
    
    50,669,459
    
    
    
    42,901,830Property, plant, and equipment
    
    
    56,927,053
    
    
    
    47,939,881Accumulated depreciation
    
    
    (26,389,062
    )
    
    
    (24,269,524
    )Property, plant, and equipment  net
    
    
    30,537,991
    
    
    
    23,670,357Deferred tax asset
    
    
    6,916,348
    
    
    
    6,164,317Goodwill
    
    
    1,097,433
    
    
    
    1,097,433Customer List/ Non-compete
    
    
    138,814
    
    
    
    189,860Other assets
    
    
    145,668
    
    
    
    197,605Total
    
    $
    89,505,713
    
    
    $
    74,221,402Liabilities and Stockholders EquityLiabilities:Current liabilities:Current portion long-term debt
    
    $
    1,815,716
    
    
    $
    1,775,716Current portion graduated lease payments and deferred gain
    
    
    70,373
    
    
    
    567,369Current portion of postretirement benefit liability
    
    
    247,000
    
    
    
    85,000Accounts payable
    
    
    10,735,295
    
    
    
    10,224,296Tooling in progress
    
    
    1,179,684
    
    
    
    1,148,104Accrued liabilities:Compensation and related benefits
    
    
    7,111,475
    
    
    
    5,264,515Taxes
    
    
    
    
    
    
    130,820Other
    
    
    1,935,035
    
    
    
    940,281Total current liabilities
    
    
    23,094,578
    
    
    
    20,136,101Long-term debt
    
    
    7,779,279
    
    
    
    9,594,995Interest rate swaps
    
    
    35,848
    
    
    
    100,965Graduated lease payments and deferred gain
    
    
    41,050
    
    
    
    567,030Postretirement benefits liability
    
    
    15,860,558
    
    
    
    9,681,544Commitments and ContingenciesStockholders Equity:Preferred stock - $0.01 par value, authorized shares  10,000,000;
outstanding shares: 2006 and 2005  0
    
    
    
    
    
    
    Common stock - $0.01 par value, authorized shares  20,000,000;
outstanding shares: 2006  10,204,607 and 2005  10,040,080
    
    
    102,046
    
    
    
    100,401Paid-in capital
    
    
    21,872,723
    
    
    
    20,770,958Accumulated other comprehensive loss, net of income tax benefit
    
    
    (3,019,315
    )
    
    
    (58,891
    )Retained earnings
    
    
    23,738,946
    
    
    
    13,328,299Total stockholders equity
    
    
    42,694,400
    
    
    
    34,140,767Total
    
    $
    89,505,713
    
    
    $
    74,221,402
  27




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
Consolidated Statements of Stockholders Equity
for the Years Ended December 31, 2006, 2005, and 2004
 AccumulatedCommon Stock
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    TotalOutstanding
    
    
    Paid-In
    
    
    Comprehensive
    
    
    Retained
    
    
    StockholdersShares
    
    
    Amount
    
    
    Capital
    
    
    Income (Loss)
    
    
    Earnings
    
    
    EquityBalance at January 1, 2004
    
    
    9,780,067
    
    
    $
    97,801
    
    
    $
    19,251,378
    
    
    $
    (402,694
    )
    
    $
    1,907,593
    
    
    $
    20,854,078Net Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,134,650
    
    
    
    5,134,650Forgiveness of related party debt
    
    
    
    
    
    
    
    
    
    
    200,000
    
    
    
    
    
    
    
    
    
    
    
    200,000Hedge accounting effect of the interest
rate swap, net of deferred income tax
expense of $45,415
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    88,158
    
    
    
    
    
    
    
    88,158Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,422,808Balance at December 31, 2004
    
    
    9,780,067
    
    
    
    97,801
    
    
    
    19,451,378
    
    
    
    (314,536
    )
    
    
    7,042,243
    
    
    
    26,276,886Net Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,286,056
    
    
    
    6,286,056Common shares issued from exercise of
stock options
    
    
    261,400
    
    
    
    2,614
    
    
    
    805,747
    
    
    
    
    
    
    
    
    
    
    
    808,361Tax effect from exercise of stock options
    
    
    
    
    
    
    
    
    
    
    513,819
    
    
    
    
    
    
    
    
    
    
    
    513,819Hedge accounting effect of the interest
rate swap, net of deferred income tax
expense of $125,794
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    255,645
    
    
    
    
    
    
    
    255,645Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,863,881Balance at December 31, 2005
    
    
    10,041,467
    
    
    
    100,415
    
    
    
    20,770,944
    
    
    
    (58,891
    )
    
    
    13,328,299
    
    
    
    34,140,767Net Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,410,647
    
    
    
    10,410,647Common shares issued from exercise of
stock options
    
    
    152,270
    
    
    
    1,522
    
    
    
    483,495
    
    
    
    
    
    
    
    
    
    
    
    485,017Tax effect from exercise of stock options
    
    
    
    
    
    
    
    
    
    
    279,505
    
    
    
    
    
    
    
    
    
    
    
    279,505Share-based compensation
    
    
    
    
    
    
    
    
    
    
    248,958
    
    
    
    
    
    
    
    
    
    
    
    248,958Hedge accounting effect of the interest
rate swap, net of deferred income tax
expense of $25,541
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39,576
    
    
    
    
    
    
    
    39,576Restricted Stock Issued
    
    
    10,870
    
    
    
    109
    
    
    
    89,821
    
    
    
    
    
    
    
    
    
    
    
    89,930Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,553,633Adoption of SFAS 158, net of deferred
income tax benefit of $1,740,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,000,000
    )
    
    
    
    
    
    
    (3,000,000
    )Balance at December 31, 2006
    
    
    10,204,607
    
    
    $
    102,046
    
    
    $
    21,872,723
    
    
    $
    (3,019,315
    )
    
    $
    23,738,946
    
    
    $
    42,694,400
  28




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
 Years Ended December 31,2006
    
    
    2005
    
    
    2004Cash flows from operating activities:Net income
    
    $
    10,410,647
    
    
    $
    6,286,056
    
    
    $
    5,134,650Adjustments to reconcile net income to net cash provided by operating
activities:Depreciation and amortization
    
    
    2,715,517
    
    
    
    2,255,702
    
    
    
    2,102,102Deferred income taxes
    
    
    1,644,804
    
    
    
    2,755,124
    
    
    
    (30,901
    )Interest expense (income) related to ineffectiveness of swap
    
    
    (3,401
    )
    
    
    7,746
    
    
    
    Loss on disposal of assets
    
    
    49,049
    
    
    
    14,701
    
    
    
    16,600Share-based compensation
    
    
    338,888
    
    
    
    
    
    
    
    Amortization of gain on sale/leaseback transactions
    
    
    (648,054
    )
    
    
    (453,554
    )
    
    
    (453,554
    )Loss (gain) on translation of foreign currency financial statements
    
    
    27,814
    
    
    
    (19,506
    )
    
    
    975Change in operating assets and liabilities (net of effects from
acquisitions):Accounts receivable
    
    
    (176,589
    )
    
    
    (3,112,488
    )
    
    
    (6,300,066
    )Inventories
    
    
    (97,955
    )
    
    
    (81,663
    )
    
    
    (1,548,401
    )Prepaid expenses and other assets
    
    
    (57,507
    )
    
    
    568,315
    
    
    
    (115,104
    )Accounts payable
    
    
    169,719
    
    
    
    (2,697,636
    )
    
    
    7,366,659Accrued and other liabilities
    
    
    935,226
    
    
    
    794,198
    
    
    
    1,114,903Postretirement benefits liability
    
    
    1,601,014
    
    
    
    1,731,770
    
    
    
    1,185,239Net cash provided by operating activities
    
    
    16,909,172
    
    
    
    8,048,765
    
    
    
    8,473,102Cash flows from investing activities:Purchase of property, plant, and equipment
    
    
    (9,226,312
    )
    
    
    (3,044,643
    )
    
    
    (1,319,758
    )Proceeds from sale of property and equipment
    
    
    10,563
    
    
    
    65,000
    
    
    
    Acquisition of Cincinnati Fiberglass, Inc.
    
    
    
    
    
    
    (688,077
    )
    
    
    Acquisition of Keystone Restyling
    
    
    
    
    
    
    
    
    
    
    (544,150
    )Proceeds from maturities on mortgage-backed security investment
    
    
    
    
    
    
    88,239
    
    
    
    1,434Net cash used in investing activities
    
    
    (9,215,749
    )
    
    
    (3,579,481
    )
    
    
    (1,862,474
    )Cash flows from financing activities:Proceeds from issuance of common stock
    
    
    485,017
    
    
    
    808,361
    
    
    
    Tax effect from exercise of stock options
    
    
    279,505
    
    
    
    513,819
    
    
    
    Payment of principal on bank note
    
    
    (1,285,716
    )
    
    
    (1,285,716
    )
    
    
    (1,178,573
    )Payment of principal on industrial revenue bond
    
    
    (490,000
    )
    
    
    (450,000
    )
    
    
    (420,000
    )Net cash used in financing activities
    
    
    (1,011,194
    )
    
    
    (413,536
    )
    
    
    (1,598,573
    )Net increase in cash and cash equivalents
    
    
    6,682,229
    
    
    
    4,055,748
    
    
    
    5,012,055Cash and cash equivalents at beginning of year
    
    
    9,413,994
    
    
    
    5,358,246
    
    
    
    346,191Cash and cash equivalents at end of year
    
    $
    16,096,223
    
    
    $
    9,413,994
    
    
    $
    5,358,246Cash paid for:Interest (net of amounts capitalized)
    
    $
    578,300
    
    
    $
    668,709
    
    
    $
    771,640Income taxes
    
    $
    5,054,371
    
    
    $
    526,918
    
    
    $
    361,100Non-cash transactions:Note payable  International Truck & Engine Corporation
    
    
    
    
    
    
    
    
    
    $
    (200,000
    )
  29




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements
 1. Business Formation and Nature of Operations
   2. Summary of Significant Accounting Policies
 Principles of Consolidation 
 Use of Estimates
 Revenue Recognition
 Cash and Cash Equivalents 
 Inventories
 30




---



##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
 Property, Plant, and Equipment
  Land improvements
    

    

    20
    yearsBuilding and improvements
    



    

    20-40
    yearsMachinery and equipment
    


    

    3-15
    yearsTools, dies and patterns
    


    

    3-5
    years
  Long-Lived Assets st
 Self-insurance 
 Fair Value of Financial Instruments
 Concentration of Credit Risk
 Earnings Per Common Share
 31




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
  Years Ended December 31,2006
    
    
    2005
    
    
    2004Net income
    
    $
    10,410,647
    
    
    $
    6,286,056
    
    
    $
    5,134,650Weighted average common shares outstanding
    
    
    10,078,800
    
    
    
    9,913,209
    
    
    
    9,778,680Plus: dilutive options assumed exercised
    
    
    748,956
    
    
    
    1,027,700
    
    
    
    146,680Plus: weighted average non-vested restricted stock
    
    
    15,616
    
    
    
    
    
    
    
    Less: shares assumed repurchased with proceeds
from exercise
    
    
    456,250
    
    
    
    528,135
    
    
    
    104,414Weighted average common and potentially issuable
common shares outstanding
    
    
    10,387,122
    
    
    
    10,412,774
    
    
    
    9,820,946Basic earnings per common share
    
    $
    1.03
    
    
    $
    0.63
    
    
    $
    0.53Diluted earnings per common share
    
    $
    1.00
    
    
    $
    0.60
    
    
    $
    0.52
  Research and Development
 Deferred Gain
 Recent Accounting Pronouncements  Share-Based Payment. Accounting for Stock-Based
Compensation Accounting for Stock Issued to Employees
 Accounting for Uncertainty in
Income Taxes, Accounting for Income Taxes
 32




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
 Fair Value Measurements.
 Employers Accounting for Defined
Benefits Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106,
and 132(R)
  Establishing the Fair Value Option for
Financial Assets and Liabilities Fair Value Measurements.
 Foreign Currency Adjustments
 3. Major Customers
   2006
    
    
    2005
    
    
    2004International
    
    $
    81,222,843
    
    
    $
    66,381,923
    
    
    $
    60,166,811PACCAR
    
    
    36,222,340
    
    
    
    15,512,084
    
    
    
    4,138,163Freightliner
    
    
    17,158,019
    
    
    
    17,034,411
    
    
    
    13,777,832Subtotal
    
    
    134,603,202
    
    
    
    98,928,418
    
    
    
    78,082,806Other
    
    
    27,726,788
    
    
    
    31,614,446
    
    
    
    33,762,470Total
    
    $
    162,329,990
    
    
    $
    130,542,864
    
    
    $
    111,845,276
 33




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
 4. Acquisitions
    Inventories
    
    $
    668,862Property and Equipment
    
    
    95,000Non-compete agreement
    
    
    5,000Tooling accounts receivable
    
    
    36,265Total assets purchased
    
    
    805,127Accrued vacation assumed
    
    
    (117,050
    )Net purchase price
    
    $
    688,077
  Years ended December 31,2005
    
    
    2004Net Sales (pro forma)
    
    $
    144,666,738
    
    
    $
    129,002,103Net Income (pro forma)
    
    $
    6,964,936
    
    
    $
    5,311,665Net Income Per Share (pro
forma)Basic
    
    $
    0.70
    
    
    $
    0.54Diluted
    
    $
    0.67
    
    
    $
    0.54
    34




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
  Inventories
    
    $
    145,110Property and equipment
    
    
    151,450Customer list
    
    
    247,590Total purchase price
    
    $
    544,150
  5. Foreign Operations
  6. Property, Plant, and Equipment
  2006
    
    
    2005Land and land improvements
    
    $
    2,311,507
    
    
    $
    2,311,507Buildings
    
    
    20,140,860
    
    
    
    17,979,078Machinery and equipment
    
    
    32,360,557
    
    
    
    25,306,686Tools, dies, and patterns
    
    
    733,160
    
    
    
    694,319Additions in progress
    
    
    1,380,969
    
    
    
    1,648,291Total
    
    
    56,927,053
    
    
    
    47,939,881Less accumulated depreciation
    
    
    (26,389,062
    )
    
    
    (24,269,524
    )Property, plant, and equipment  net
    
    $
    30,537,991
    
    
    $
    23,670,357
  35




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
 7. Debt and Leases
 December, 312006
    
    
    2005Note Payable to bank, interest at a
variable rate with monthly payments of
interest and principal over a seven-year
period through December 2010,
collateralized by a security interest in
all the Companys assets.
    
    $
    5,249,995
    
    
    $
    6,535,711Industrial Revenue Bond, interest
adjustable weekly (2006 average 3.60%;
2005 average 2.60%), payable quarterly,
principal due in variable quarterly
installments through April, 2013, secured
by a bank letter of credit with a balance
of $4,476,000 as of December 31, 2006.
    
    
    4,345,000
    
    
    
    4,835,000Total
    
    
    9,594,995
    
    
    
    11,370,711Less current portion
    
    
    (1,815,716
    )
    
    
    (1,775,716
    )Long-term debt
    
    $
    7,779,279
    
    
    $
    9,594,995
 Note Payable  Bank
  Industrial Revenue Bond
   Note Payable  International
  Annual maturities of long-term debt are as follows:
 2007
    
    $
    1,816,0002008
    
    
    1,866,0002009
    
    
    1,906,0002010
    
    
    1,961,0002011
    
    
    837,000Thereafter
    
    
    1,209,000Total
    
    $
    9,595,000
 36




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
 Line of Credit
  Interest Rate Swaps
    Bank Covenants
  Leases
    37




---



##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
   2007
    
    $
    1,384,0002008
    
    
    1,056,0002009
    
    
    603,0002010
    
    
    338,0002011
    
    
    11,000Thereafter
    
    
    Total minimum lease payments
    
    $
    3,392,000
 8. Equity
 Anti-takeover Measures
  Restrictions on Transfer
  9. Stock Based Compensation
   38




---



##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
   Years Ended December 31,2005
    
    
    2004Net income, as reported
    
    $
    6,286,056
    
    
    $
    5,134,650Deduct: Total stock-based employee
compensation expense determined under fair
value based method for all awards, net of
related tax effects
    
    
    (264,813
    )
    
    
    (204,089
    )Pro forma net income
    
    $
    6,021,243
    
    
    $
    4,930,561Earnings per share:Basic  as reported
    
    $
    0.63
    
    
    $
    0.53Basic  pro forma
    
    $
    0.61
    
    
    $
    0.50Diluted  as reported
    
    $
    0.60
    
    
    $
    0.52Diluted  pro forma
    
    $
    0.58
    
    
    $
    0.50
 Stock Options
   39




---



##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
   2006
    
    
    2005
    
    
    2004Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedNumber
    
    
    Average
    
    
    Number
    
    
    Average
    
    
    Number
    
    
    Averageof
    
    
    Exercise
    
    
    of
    
    
    Exercise
    
    
    of
    
    
    ExerciseOptions
    
    
    Price
    
    
    Options
    
    
    Price
    
    
    Options
    
    
    PriceOutstanding - beginning of
year
    
    
    1,032,700
    
    
    
    3.33
    
    
    
    1,203,900
    
    
    $
    3.12
    
    
    
    214,000
    
    
    $
    2.93Granted
    
    
    
    
    
    
    
    
    
    
    123,000
    
    
    
    4.95
    
    
    
    1,043,550
    
    
    
    3.13Exercised
    
    
    (152,270
    )
    
    
    3.19
    
    
    
    (261,400
    )
    
    
    3.09
    
    
    
    
    
    
    
    Forfeited
    
    
    (80,474
    )
    
    
    3.45
    
    
    
    (32,800
    )
    
    
    2.80
    
    
    
    (53,650
    )
    
    
    2.93Outstanding - end of year
    
    
    799,956
    
    
    
    3.35
    
    
    
    1,032,700
    
    
    $
    3.33
    
    
    
    1,203,900
    
    
    $
    3.12Exercisable at December 31
    
    
    493,176
    
    
    
    3.23
    
    
    
    514,625
    
    
    $
    3.18
    
    
    
    615,006
    
    
    $
    3.16
  WeightedAverageNumber
    
    
    Weighted
    
    
    Remaining
    
    
    Aggregateof
    
    
    Average
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    Exercise Price
    
    
    Term
    
    
    ValueOutstanding at December 31, 2005
    
    
    1,032,700
    
    
    $
    3.33Exercised
    
    
    (152,270
    )
    
    
    3.19
    
    
    
    
    
    
    $
    896,000Granted
    
    
    
    
    
    
    Forfeited
    
    
    (80,474
    )
    
    
    3.45Outstanding at December 31, 2006
    
    
    799,956
    
    
    $
    3.35
    
    
    
    7.27
    
    
    $
    5,041,000Exercisable at December 31, 2006
    
    
    493,176
    
    
    $
    3.23
    
    
    
    6.99
    
    
    $
    3,167,000Vested or expected to vest at
December 31, 2006
    
    
    790,753
    
    
    $
    3.35
    
    
    
    7.26
    
    
    $
    4,985,000
  WeightedNumber
    
    
    AverageOf
    
    
    Grant DateShares
    
    
    Fair ValueUnvested at December 31, 2005
    
    
    518,072
    
    
    $
    3.49Granted
    
    
    
    
    
    
    Vested
    
    
    (130,818
    )
    
    
    3.39Forfeited
    
    
    (80,474
    )
    
    
    3.45Unvested at December 31, 2006
    
    
    306,780
    
    
    $
    3.54
  40




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
  Options Outstanding
    
    
    Options ExercisableWeightedWeighted
    
    
    Average
    
    
    
    
    
    
    WeightedRange of
    
    Number of
    
    
    Average
    
    
    Contractual Life
    
    
    Number of
    
    
    AverageExercise Prices
    
    Options
    
    
    Exercise Price
    
    
    In Years
    
    
    Options
    
    
    Exercise Price$2.75
    
    
    152,600
    
    
    $
    2.75
    
    
    
    7.1
    
    
    
    38,100
    
    
    $
    2.75$3.21
    
    
    499,356
    
    
    
    3.21
    
    
    
    7.1
    
    
    
    413,476
    
    
    
    3.21$3.28 to $3.50
    
    
    97,000
    
    
    
    3.31
    
    
    
    7.6
    
    
    
    35,000
    
    
    
    3.33$6.40 to $7.98
    
    
    51,000
    
    
    
    6.55
    
    
    
    8.9
    
    
    
    6,600
    
    
    
    6.64799,956
    
    
    $
    3.35
    
    
    
    
    
    
    
    493,176
    
    
    $
    3.23
 Restricted Stock
   Weighted AverageNumber of
    
    
    Grant DateShares
    
    
    Fair ValueUnvested balance at December 31, 2005
    
    
    
    
    
    $
    Granted
    
    
    36,305
    
    
    
    6.70Vested
    
    
    (10,870
    )
    
    
    6.70Forfeited
    
    
    (2,463
    )
    
    
    6.70Unvested at December 31, 2006
    
    
    22,972
    
    
    $
    6.70Vested and expected to vest at December
31, 2006
    
    
    32,675
    
    
    $
    6.70
  10. Income Taxes
  2006
    
    
    2005
    
    
    2004Current:Federal  US
    
    $
    3,284,000
    
    
    $
    494,000
    
    
    $
    107,000Federal  Foreign
    
    
    104,000
    
    
    
    107,000
    
    
    
    137,000State and local
    
    
    569,000
    
    
    
    227,000
    
    
    
    358,0003,957,000
    
    
    
    828,000
    
    
    
    602,000Deferred:Federal
    
    
    1,655,000
    
    
    
    2,065,000
    
    
    
    1,453,000State and local
    
    
    (10,000
    )
    
    
    690,000
    
    
    
    (59,000
    )Decrease in valuation allowance
for net operating loss
carryforward
    
    
    
    
    
    
    
    
    
    
    (1,425,000
    )1,645,000
    
    
    
    2,755,000
    
    
    
    (31,000
    )Provision for income taxes
    
    $
    5,602,000
    
    
    $
    3,583,000
    
    
    $
    571,000
 41




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
  2006
    
    
    2005
    
    
    2004Provision at federal statutory rate  US
    
    $
    5,444,000
    
    
    $
    3,356,000
    
    
    $
    1,940,000Effect of foreign taxes
    
    
    (81,000
    )
    
    
    (71,000
    )
    
    
    (62,000
    )State and local tax expense, net of federal benefit
    
    
    407,000
    
    
    
    285,000
    
    
    
    197,000Federal Manufacturing Deduction
    
    
    (106,000
    )Reduction of state deferred tax asset due to
changes in state tax law
    
    
    
    
    
    
    214,000
    
    
    
    Reversal of prior year accrued taxes
    
    
    
    
    
    
    (227,000
    )
    
    
    Other
    
    
    (62,000
    )
    
    
    26,000
    
    
    
    (79,000
    )Decrease in valuation allowance for net operating
loss carryforward
    
    
    
    
    
    
    
    
    
    
    (1,425,000
    )Provision for income taxes
    
    $
    5,602,000
    
    
    $
    3,583,000
    
    
    $
    571,000
     2006
    
    
    2005Current Asset:Accrued liabilities
    
    $
    736,000
    
    
    $
    1,747,000Accounts Receivable
    
    
    572,000
    
    
    
    325,000Other, net
    
    
    221,000
    
    
    
    137,000Total current asset
    
    
    1,529,000
    
    
    
    2,209,000Non-current asset (liability):Property, plant, and equipment
    
    
    1,295,000
    
    
    
    2,070,000Postretirement benefits
    
    
    5,907,000
    
    
    
    3,700,000Interest rate swap
    
    
    12,000
    
    
    
    34,000Alternative minimum tax credit
    
    
    
    
    
    
    500,000Other, net
    
    
    (298,000
    )
    
    
    (140,000
    )Total non-current asset
    
    
    6,916,000
    
    
    
    6,164,000Total deferred tax asset  net
    
    $
    8,445,000
    
    
    $
    8,373,000
  42




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
  11. Postretirement Benefits
    Postretirement Benefits2006
    
    
    2005Change in benefit obligationBenefit obligation at beginning of year
    
    $
    15,081,000
    
    
    $
    11,252,000Service cost
    
    
    797,000
    
    
    
    901,000Interest cost
    
    
    862,000
    
    
    
    737,000Unrecognized (gain)/loss
    
    
    (519,000
    )
    
    
    2,335,000Benefits paid
    
    
    (114,000
    )
    
    
    (144,000
    )Benefit obligation at end of year
    
    $
    16,107,000
    
    
    $
    15,081,000Unfunded status
    
    $
    (16,107,000
    )
    
    $
    (15,081,000
    )Unrecognized net loss
    
    
    
    
    
    
    5,558,000Net liability
    
    $
    (16,107,000
    )
    
    $
    (9,523,000
    )Plan Assets
    
    
    
    
    
    
    Weighted-average assumptions as
of December 31:Discount rate
    
    
    5.60
    %
    
    
    5.75
    %
 43




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued )
  2006
    
    
    2005
    
    
    2004Pension Expense:Multi-employer plan
contributions
    
    $
    423,000
    
    
    $
    382,000
    
    
    $
    280,000Defined contribution plan
contributions
    
    
    510,000
    
    
    
    483,000
    
    
    
    396,000Total Pension Expense
    
    
    933,000
    
    
    
    865,000
    
    
    
    676,000Health and Life Insurance:Service cost
    
    
    797,000
    
    
    
    901,000
    
    
    
    642,000Interest cost
    
    
    862,000
    
    
    
    737,000
    
    
    
    602,000Amortization of net loss
    
    
    300,000
    
    
    
    238,000
    
    
    
    163,000Net periodic benefit cost
    
    
    1,959,000
    
    
    
    1,876,000
    
    
    
    1,407,000Total postretirement benefits
expense
    
    $
    2,892,000
    
    
    $
    2,741,000
    
    
    $
    2,083,000
  Before
    
    SFAS No.
    
    AfterApplication of
    
    158 Adoption
    
    Application ofSFAS No. 158
    
    Adjustment
    
    SFAS No. 158Postretirement benefit liability
    
    $
    11,367,558
    
    
    $
    4,740,000
    
    
    $
    16,107,558Accumulated other comprehensive
loss, net of tax
    
    
    19,315
    
    
    
    3,000,000
    
    
    
    3,019,315Deferred Tax Asset
    
    $
    6,705,940
    
    
    $
    1,740,000
    
    
    $
    8,445,940
    1- Percentage
    
    1-PercentagePoint Increase
    
    Point DecreaseEffect on total of service and interest cost components
    
    $
    329,000
    
    
    $
    (304,000
    )Effect on postretirement benefit obligation
    
    
    2,856,000
    
    
    
    (2,736,000
    )
  Fiscal 2007
    
    $
    247,000Fiscal 2008
    
    
    325,000Fiscal 2009
    
    
    383,000Fiscal 2010
    
    
    467,000Fiscal 2011
    
    
    576,000Fiscal 2012  2016
    
    
    4,477,000
 44




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Notes to Consolidated Financial Statements  (Continued)
 12. Related Party Transactions
   13. Labor Concentration
  14. Commitments and Contingencies
  15. Quarterly Results of Operations (Unaudited)
  1st Quarter
    
    
    2nd Quarter
    
    
    3rd Quarter
    
    
    4th Quarter
    
    
    Total Year2006:Product sales
    
    $
    35,354,658
    
    
    $
    38,425,961
    
    
    $
    38,854,393
    
    
    $
    37,538,586
    
    
    $
    150,173,598Tooling sales
    
    
    1,147,656
    
    
    
    1,084,696
    
    
    
    9,223,766
    
    
    
    700,274
    
    
    
    12,156,392Net sales
    
    
    36,502,314
    
    
    
    39,510,657
    
    
    
    48,078,159
    
    
    
    38,238,860
    
    
    
    162,329,990Gross margin
    
    
    6,828,571
    
    
    
    7,846,899
    
    
    
    8,292,674
    
    
    
    6,900,791
    
    
    
    29,868,935Income before interest and taxes
    
    
    3,652,100
    
    
    
    3,946,030
    
    
    
    4,547,151
    
    
    
    3,710,468
    
    
    
    15,855,749Net income
    
    
    2,281,906
    
    
    
    2,503,027
    
    
    
    2,937,775
    
    
    
    2,687,939
    
    
    
    10,410,647Net income per common share:Basic
    
    $
    0.23
    
    
    $
    0.25
    
    
    $
    0.29
    
    
    $
    0.26
    
    
    $
    1.03Diluted (1)
    
    $
    0.22
    
    
    $
    0.24
    
    
    $
    0.28
    
    
    $
    0.25
    
    
    $
    1.002005:Product sales
    
    $
    30,217,999
    
    
    $
    31,998,569
    
    
    
    31,045,446
    
    
    
    31,647,471
    
    
    
    124,909,485Tooling sales
    
    
    2,298,958
    
    
    
    1,660,268
    
    
    
    568,525
    
    
    
    1,105,628
    
    
    
    5,633,379Net sales
    
    
    32,516,957
    
    
    
    33,658,837
    
    
    
    31,613,971
    
    
    
    32,753,099
    
    
    
    130,542,864Gross margin
    
    
    6,349,576
    
    
    
    6,689,262
    
    
    
    5,434,541
    
    
    
    4,801,712
    
    
    
    23,275,091Income before interest and taxes
    
    
    3,315,434
    
    
    
    3,238,997
    
    
    
    2,486,738
    
    
    
    1,352,584
    
    
    
    10,393,753Net income
    
    
    1,955,750
    
    
    
    1,734,988
    
    
    
    1,511,180
    
    
    
    1,084,138
    
    
    
    6,286,056Net income per common share:Basic (1)
    
    $
    0.20
    
    
    $
    0.18
    
    
    $
    0.15
    
    
    $
    0.11
    
    
    $
    0.63Diluted (1)
    
    $
    0.20
    
    
    $
    0.17
    
    
    $
    0.14
    
    
    $
    0.10
    
    
    $
    0.60
 
 (1)
    
    Sum of the quarters do not sum to total year due to rounding. 45




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##### Table of Contents



ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
  
 ITEM 9A. CONTROLS AND PROCEDURES
 Disclosure Controls and Procedures
  Changes In Internal Controls
  
 ITEM 9B. OTHER INFORMATION
  46




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##### Table of Contents



PART III
 
 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
  
 ITEM 11. EXECUTIVE COMPENSATION
  
 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS
  
 ITEM 13. CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
  
 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
  47




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##### Table of Contents



PART IV
 
 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 (a)
    
    Documents filed as Part of this Report:
 (1)
    
    Financial StatementsThe following consolidated financial statements are included in Part II, Item 8 of this
Annual Report on Form 10-K:
 Report of Independent Registered Public Accounting FirmConsolidated Statements of Income for the Years Ended December 31, 2006, 2005,
and 2004Consolidated Balance Sheets as of December 31, 2006 and 2005Consolidated Statements of Stockholders Equity for the Years Ended December
31, 2006, 2005, and 2004Consolidated Statements of Cash Flows for the Years Ended December 31, 2006,
2005, and 2004Notes to Consolidated Financial Statements
 (2)
    
    Financial Statement SchedulesThe following consolidated financial statement schedules are filed with this
Annual Report on Form10-K:
 Schedule II  Valuation and Qualifying Accounts and Reserves for the
years ended December 31, 2006, 2005, and 2004All other schedules are omitted because of the absence of the conditions
under which they are required.
 (3)
    
    ExhibitsSee Index to Exhibits filed with this Annual Report on Form 10-K.
 48




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##### Table of Contents



SIGNATURES
 Pursuant to the requirements of Section 13 or 15(d) 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.By
    
    /s/ Kevin L. BarnettKevin L. BarnettPresident and Chief Executive Officer
  Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the registrant and in the capacities and on the
dates indicated:
 /s/ Kevin L. Barnett
    
    President, Chief Executive Officer,
    
    March 28, 2007Kevin L. Barnett
    
    and Director/s/ Herman F. Dick, Jr.
    
    Vice President, Secretary, Treasurer,
    
    March 28, 2007Herman F. Dick, Jr.
    
    and Chief Financial Officer*

Thomas R. Cellitti
    
    Director
    
    March 28, 2007*

James F. Crowley
    
    Director
    
    March 28, 2007*

Ralph O. Hellmold
    
    Director
    
    March 28, 2007*

Malcolm M. Prine
    
    Director
    
    March 28, 2007*By   Herman F. Dick, Jr.

Herman F. Dick, Jr.
    
    Attorney-In-Fact
    
    March 28, 2007
 49




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##### Table of Contents



Core Molding Technologies, Inc. and Subsidiaries
 Schedule II
   AdditionsBalance at
    
    Charged to
    
    Charged toBeginning
    
    Costs &
    
    Other
    
    Deductions
    
    Balance Atof Year
    
    Expenses
    
    Accounts
    
    (A)
    
    End of YearYear Ended December 31, 2006
    
    $
    214,000
    
    
    $
    120,000
    
    
    
    
    
    
    $
    72,000
    
    
    $
    262,000Year Ended December 31, 2005
    
    $
    235,000
    
    
    $
    93,000
    
    
    
    
    
    
    $
    114,000
    
    
    $
    214,000Year Ended December 31, 2004
    
    $
    379,000
    
    
    $
    83,000
    
    
    
    
    
    
    $
    227,000
    
    
    $
    235,000
 
   AdditionsBalance at
    
    Charged to
    
    Charged toBeginning
    
    Costs &
    
    Other
    
    
    
    
    
    Balance Atof Year
    
    Expenses
    
    Accounts
    
    Deductions
    
    End of YearYear Ended December 31,2006
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Year Ended December 31, 2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Year Ended December 31, 2004
    
    $
    1,425,000
    
    
    
    
    
    
    
    
    
    
    
    ($1,425,000
    )
    
    
    
 50




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##### Table of Contents



INDEX TO EXHIBITS
 Exhibit No.
    
    Description
    
    Location2(a)(1)
    
    Asset Purchase Agreement
dated as of September 12, 1996,
as amended October 31, 1996,
between Navistar and RYMAC1
    
    Incorporated by
reference to Exhibit
2-A to Registration
Statement on Form S-4
(Registration
No. 333-15809)2(a)(2)
    
    Second Amendment to Asset Purchase
Agreement dated December 16, 19961
    
    Incorporated by
reference to Exhibit 2(a)(2) to Annual Report on
Form 10-K for the year
ended December 31, 20012(b)(1)
    
    Agreement and Plan of Merger
dated as of November 1, 1996,
between Core Molding and
RYMAC
    
    Incorporated by
reference to Exhibit
2-B to Registration
Statement on Form
S-4 (Registration
No. 333-15809)2(b)(2)
    
    First Amendment to Agreement and
Plan of Merger dated as of
December 27, 1996 between
Core Molding and RYMAC
    
    Incorporated by reference to
Exhibit 2(b)(2) to Annual Report
on Form 10-K for the year
ended December 31, 20022(c)(1)
    
    Asset Purchase Agreement dated as
of October 10, 2001, between
Core Molding Technologies, Inc. and
Airshield Corporation
    
    Incorporated by
reference to Exhibit 1 to
Form 8-K filed
October 31, 20013(a)(1)
    
    Certificate of Incorporation of
Core Molding Technologies, Inc.
as filed with the Secretary of State
of Delaware on October 8, 1996
    
    Incorporated by
reference to Exhibit
4(a) to Registration
Statement on Form
S-8, (Registration
No. 333-29203)3(a)(2)
    
    Certificate of Amendment of
Certificate of Incorporation
of Core Molding Technologies, Inc.
as filed with the Secretary of State
of Delaware on November 6, 1996
    
    Incorporated by
reference to Exhibit
4(b) to Registration
Statement on Form
S-8 (Registration
No. 333-29203)
 51




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##### Table of Contents



Exhibit No.
    
    Description
    
    Location3(a)(3)
    
    Certificate of Incorporation of Core
Molding Technologies Inc., reflecting
amendments through November 6,
1996 [for purposes of compliance
with Securities and Exchange
Commission filing requirements only]
    
    Incorporated by
reference to Exhibit 4(c)
to Registration
Statement on Form S-8
(Registration No.
333-29203)3(a)(4)
    
    Certificate of Amendment of Certificate
of Incorporation as filed with the Secretary
of State of Delaware on August 28, 2002
    
    Incorporated by
reference to Exhibit 3(a)(4)
to Quarterly Report on
Form 10-Q for the quarter
ended September 30, 20023(b)
    
    By-Laws of Core Molding
Technologies, Inc.
    
    Incorporated by
reference to Exhibit
3-C to Registration
Statement on Form
S-4 (Registration
No. 333-15809)4(a)(1)
    
    Certificate of Incorporation of
Core Molding Technologies, Inc.
as filed with the Secretary of State
of Delaware on October 8, 1996
    
    Incorporated by
reference to Exhibit
4(a) to Registration
Statement on Form
S-8 (Registration
No. 333-29203)4(a)(2)
    
    Certificate of Amendment of
Certificate of Incorporation
of Core Molding Technologies, Inc.
as filed with the Secretary of State
of Delaware on November 6, 1996
    
    Incorporated by
reference to Exhibit
4(b) to Registration
Statement on Form
S-8 (Registration
No. 333-29203)4(a)(3)
    
    Certificate of Incorporation of Core
Molding Technologies, Inc., reflecting
amendments through November 6,
1996 [for purposes of compliance
with Securities and Exchange
Commission filing requirements only]
    
    Incorporated by
reference to
Exhibit 4(c) to
Registration Statement
on Form S-8
(Registration
No. 333-29203)4(a)(4)
    
    Certificate of Amendment of Certificate
of Incorporation as filed with the Secretary
of State of Delaware on August 28, 2002
    
    Incorporated by
reference to Exhibit
3(a)(4) to Quarterly
Report on Form 10-Q for the
quarter ended September 30, 20024(b)
    
    By-Laws of Core Molding
Technologies, Inc.
    
    Incorporated by
reference to Exhibit
3-C to Registration
Statement on Form
S-4 (Registration
No. 333-15809)
 52




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##### Table of Contents



Exhibit No.
    
    Description
    
    Location10(a)
    
    Amendment No. 1 to Unsecured
Promissory Note, dated January 30, 2004
to International Truck and Engine Corp.
    
    Incorporated by
reference to Exhibit
10(p) to Quarterly
Report on Form 10-Q
for the quarter ended
March 31, 200510(b)
    
    Supply Agreement, dated
October 31, 2006
between Core Molding Technologies, Inc.
and Core Composites Corporation and
International Truck and Engine Corp.5
    
    Filed Herein10(c)
    
    Registration Rights Agreement, dated
December 31, 1996, by and between
Navistar International Transportation
Corp. and various other persons who
become parties pursuant to the agreement
    
    Incorporated by
reference to Exhibit
10(d) to Annual
Report on Form 10-K
for the year ended
December 31, 200110(d)
    
    Loan Agreement, dated December 3,
1997, by and between Core Molding
Technologies, Inc. and Key Bank National
Association
    
    Incorporated by reference
to Exhibit 10(e) to Annual
Report on Form 10-K for the
year ended December 31, 200210(e)(1)
    
    Amendment, dated March 29, 2001, to the
Loan Agreement dated December 3, 1997
by and between Core Molding Technologies,
Inc. and Key Bank National Association
    
    Incorporated by reference
to Exhibit 10(e)(1) to Annual
Report on Form 10-K for the
year ended December 31, 200210(e)(2)
    
    Amendment, dated December 12, 2002, to
the Loan Agreement dated December 3, 1997
by and between Core Molding Technologies,
Inc. and Key Bank National Association
    
    Incorporated by reference to
Exhibit 10(e)(2) to Annual
Report on Form 10-K for the
year ended December 31, 200210(e)(3)
    
    Loan Agreement, dated December 30, 2003,
by and between Core Molding Technologies,
Inc. and Key Bank National Association2
    
    Incorporated by reference to
Exhibit 10(e)(3) to Annual
Report on Form 10-K for the
year ended December 31, 200310(f)
    
    Master Equipment Lease Agreement3
by and between KeyCorp Leasing,
a division of Key Corporate
Capital, Inc. and Core Molding
Technologies, Inc.
    
    Incorporated by reference to
Exhibit 10(f) to Annual Report
on Form 10-K for the year
ended December 31, 200210(f)(1)
    
    Amendment, dated March 26, 2001, to
Master Equipment Lease
Agreement3 by
and between KeyCorp Leasing,
a division of Key Corporate
Capital, Inc. and Core Molding
Technologies, Inc.
    
    Incorporated by reference
to Exhibit 10(f)(1) to
Annual Report on Form
10-K for the year ended
December 31, 2000
 53




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##### Table of Contents



Exhibit No.
    
    Description
    
    Location10(g)
    
    Loan Agreement, dated April 1,
1998, by and between South Carolina
Jobs  Economic Development Authority
and Core Molding Technologies, Inc.
    
    Incorporated by reference to
Exhibit 10(g) to Annual
Report on Form 10-K for the
year ended December 31, 200310(h)
    
    Reimbursement Agreement, dated
April 1, 1998, by and between Core
Molding Technologies, Inc. and Key Bank
National Association
    
    Incorporated by reference to
Exhibit 10(h) to Annual
Report on Form 10-K for the
year ended December 31, 200310(h)(1)
    
    Amendment, dated March 29, 2001, to
Reimbursement Agreement, dated
April 1, 1998, by and between Core
Molding Technologies, Inc. and Key Bank
National Association
    
    Incorporated by reference
to Exhibit 10(h)(1) to
Annual Report on Form
10-K for the year ended
December 31, 200010(i)
    
    Core Molding Technologies, Inc.
Employee Stock Purchase Plan4
    
    Incorporated by
reference to Exhibit
4(e) to Registration
Statement on Form S-8
(Registration No. 333-60909)10(i)(1)
    
    2002 Core Molding Technologies, Inc.
Employee Stock Purchase Plan (as amended
May 17, 2006)4
    
    Incorporated by
reference to Exhibit
10.3 to Current Report on Form
8-K dated May 23, 200610(j)
    
    Letter Agreement Regarding Terms and
Conditions of Interest Rate Swap
Agreement between KeyBank National
Association and Core Molding Technologies, Inc.
    
    Incorporated by reference to
Exhibit 10(j) to Annual Report
on Form 10-K for the year ended
December 31, 200310(k)
    
    Long Term Equity Incentive Plan4
    
    Incorporated by
reference to Exhibit
4(e) to Registration
Statement on Form
S-8 (Registration
No. 333-29203)10(l)
    
    1995 Stock Option Plan4
    
    Incorporated by
reference to Exhibit
10(l) to Annual Report
on Form 10-K for the
year ended December 31, 200110(m)
    
    Informal Cash
Profit Sharing Plan4
    
    Incorporated by reference to
Exhibit 10(m) to Annual Report
On Form 10-K for the year ended
December 31, 200210(m)(1)
    
    Core Molding Technologies, Inc.
Cash Profit Sharing Plan, as amended
December 16, 20044
    
    Incorporated by reference to
Exhibit 10.1 to Form 8-K
filed December 22, 2004
 54




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Exhibit No.
    
    Description
    
    Location10(n)
    
    Compensation Agreement with
Malcolm M. Prine4
    
    Incorporated by reference
to Exhibit 10(o) to Annual
Report on Form 10-K for
the year ended December 31,
200010(o)
    
    Phantom stock agreement with James
L. Simonton, President and Chief
Executive Officer
    
    Incorporated by reference
Exhibit 10(p) to Quarterly Report
on Form 10-Q for the quarter ended
March 31, 200510(p)
    
    2006 Core Molding Technologies, Inc.
Long Term Equity Incentive Plan4
    
    Incorporated by reference to
Exhibit 10.1 to Current Report
on Form 8-K dated May 23, 200610(q)
    
    Form of Executive Severance Agreement
between Core Molding Technologies, Inc.
and certain executive officers4
    
    Incorporated by reference to
Exhibit 10.4 to Current Report
on Form 8-K dated May 23, 200610(r)
    
    Form of Restricted Stock Agreement
between Core Molding Technologies, Inc.
and certain executive officers4
    
    Incorporated by reference to
Exhibit 10.2 to Current Report
on Form 8-K dated May 23, 200611
    
    Computation of Net Income per Share
    
    Exhibit 11 is omitted
because the required
information is included
in the Notes to Financial
Statements in Part II,
Item 8 of this Annual
Report on Form 10-K14
    
    Code of Conduct and Business Ethics
    
    Incorporated by reference to
Exhibit 14 to Annual Report
on Form 10-K for the year
ended December 31, 200323
    
    Consent of Deloitte & Touche LLP
    
    Filed Herein24
    
    Powers of Attorney
    
    Filed Herein31(a)
    
    Section 302 Certification by Kevin L.
Barnett, President and Chief Executive
Officer
    
    Filed Herein31(b)
    
    Section 302 Certification by Herman F.
Dick, Jr., Vice President, Secretary,
Treasurer, and Chief Financial Officer
    
    Filed Herein32(a)
    
    Certification of Kevin L. Barnett,
Chief Executive Officer of Core Molding
Technologies, Inc., dated March 28, 2007,
pursuant to 18 U.S.C. Section 1350
    
    Filed Herein32(b)
    
    Certification of Herman F. Dick, Jr.,
Vice President, Treasurer, Secretary, and
Chief Financial Officer of Core Molding
Technologies, Inc., dated March 28, 2007,
pursuant to 18 U.S.C. Section 1350
    
    Filed Herein
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1
    
    The Asset Purchase Agreement, as filed with the SEC at Exhibit 2-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 Sections 1, 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 SEC upon request.2
    
    The Loan Agreement filed with this Annual Report on Form 10-K, omits the exhibits
(including Revolving Credit Note, Term Note, Security Agreement, Ohio Mortgage, South Carolina
Mortgage, and Guaranty) and schedules. Core Molding Technologies, Inc. will provide any omitted
exhibit to the SEC upon request.3
    
    The Master Equipment Lease, incorporated by reference in the Exhibits to this Annual
Report on Form 10-K, omits certain schedules (including addendum to the schedules) which separately
identify equipment subject to the Master Equipment Lease and certain additional terms applicable to
the lease of such equipment. New schedules may be added under the terms of the Master Equipment
Lease from time to time and existing schedules may change. Core Molding Technologies, Inc. will
provide any omitted schedule to the SEC upon request.4
    
    Indicates management contracts or compensatory plans that are required to be filed as
an exhibit to this Annual Report on Form 10-K.5
    
    Certain portions of this Exhibit have been omitted intentionally subject to a
confidentiality treatment request. A complete version of the Exhibit has been filed separately
with the Securities and Exchange Commission. 56