Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 30, 2022 | Feb. 03, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000100378 | |
Entity Registrant Name | TWIN DISC INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-7635 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0667110 | |
Entity Address, Address Line One | 1328 Racine Street | |
Entity Address, City or Town | Racine | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53403 | |
City Area Code | 262 | |
Local Phone Number | 638-4000 | |
Title of 12(b) Security | Common Stock (No Par Value) | |
Trading Symbol | TWIN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,815,707 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Dec. 30, 2022 | Jun. 30, 2022 |
Current assets: | ||
Cash | $ 13,528 | $ 12,521 |
Trade accounts receivable, net | 39,392 | 45,452 |
Inventories | 136,810 | 127,109 |
Assets held for sale | 2,968 | 2,968 |
Prepaid expenses | 10,871 | 7,756 |
Other | 7,228 | 8,646 |
Total current assets | 210,797 | 204,452 |
Property, plant and equipment, net | 39,683 | 41,615 |
Right-of-use assets operating leases | 12,807 | 12,685 |
Intangible assets, net | 11,798 | 13,010 |
Deferred income taxes | 2,403 | 2,178 |
Other assets | 2,766 | 2,583 |
Total assets | 280,254 | 276,523 |
Current liabilities: | ||
Current maturities of long-term debt | 2,000 | 2,000 |
Accounts payable | 28,906 | 28,536 |
Accrued liabilities | 55,939 | 50,542 |
Total current liabilities | 86,845 | 81,078 |
Long-term debt, less current maturities | 29,927 | 34,543 |
Lease obligations | 10,278 | 10,575 |
Accrued retirement benefits | 10,587 | 9,974 |
Deferred income taxes | 3,506 | 3,802 |
Other long-term liabilities | 5,346 | 5,363 |
Total liabilities | 146,489 | 145,335 |
Commitments and contingencies (Note D) | ||
Twin Disc shareholders' equity: | ||
Preferred shares authorized: 200,000; issued: none; no par value | 0 | 0 |
Common shares authorized: 30,000,000; issued: 14,632,802; no par value | 41,444 | 42,551 |
Retained earnings | 134,141 | 135,031 |
Accumulated other comprehensive loss | (29,880) | (32,086) |
Equity before treasury stock | 145,705 | 145,496 |
Less treasury stock, at cost (819,398 and 960,459 shares, respectively) | 12,562 | 14,720 |
Total Twin Disc shareholders' equity | 133,143 | 130,776 |
Noncontrolling interest | 622 | 412 |
Total equity | 133,765 | 131,188 |
Total liabilities and equity | $ 280,254 | $ 276,523 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Dec. 30, 2022 | Jun. 30, 2022 |
Preferred Shares, Authorized (in shares) | 200,000 | 200,000 |
Preferred Shares, Issued (in shares) | 0 | 0 |
Preferred Shares, No Par Value (in dollars per share) | $ 0 | $ 0 |
Common shares, authorized (in shares) | 30,000,000 | 30,000,000 |
Common shares, shares issued (in shares) | 14,632,802 | 14,632,802 |
Common shares, no par value (in dollars per share) | $ 0 | $ 0 |
Treasury Stock, Shares (in shares) | 819,398 | 960,459 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Net sales | $ 63,351 | $ 59,889 | $ 119,264 | $ 107,650 |
Cost of goods sold | 46,328 | 46,407 | 88,944 | 80,721 |
Gross profit | 17,023 | 13,482 | 30,320 | 26,929 |
Marketing, engineering and administrative expenses | 15,983 | 15,267 | 31,063 | 28,357 |
Restructuring expenses | 164 | 1,190 | 174 | 1,238 |
Other operating (income) expense | (4,150) | 45 | (4,150) | (2,894) |
Income (loss) from operations | 5,026 | (3,020) | 3,233 | 228 |
Interest expense | 594 | 574 | 1,160 | 1,104 |
Other expense (income), net | 789 | (466) | 1,049 | (110) |
Non-operating income (expense) | 1,383 | 108 | 2,209 | 994 |
Income (loss) before income taxes and noncontrolling interest | 3,643 | (3,128) | 1,024 | (766) |
Income tax expense | 2,489 | 622 | 1,801 | 1,004 |
Net income (loss) | 1,154 | (3,750) | (777) | (1,770) |
Less: Net earnings attributable to noncontrolling interest, net of tax | (15) | (86) | (112) | (144) |
Net income (loss) attributable to Twin Disc | $ 1,139 | $ (3,836) | $ (889) | $ (1,914) |
Income (loss) per share data: | ||||
Basic income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.08 | $ (0.29) | $ (0.07) | $ (0.14) |
Diluted income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.08 | $ (0.29) | $ (0.07) | $ (0.14) |
Weighted average shares outstanding data: | ||||
Basic shares outstanding (in shares) | 13,460 | 13,296 | 13,434 | 13,288 |
Diluted shares outstanding (in shares) | 13,699 | 13,296 | 13,434 | 13,288 |
Comprehensive income (loss) | ||||
Net income (loss) | $ 1,154 | $ (3,750) | $ (777) | $ (1,770) |
Benefit plan adjustments, net of income taxes of $1, $(115), $3 and $2, respectively | (515) | 623 | 3 | 1,007 |
Translation adjustment during the quarter | 8,392 | (1,701) | 2,064 | (3,639) |
Unrealized gain on cash flow hedge, net of income taxes of $0, $(63), $0 and $0, respectively | (595) | 735 | 197 | 939 |
Comprehensive income (loss) | 8,436 | (4,093) | 1,487 | (3,463) |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 74 | (61) | 210 | (197) |
Comprehensive income (loss) attributable to Twin Disc | $ 8,510 | $ (4,154) | $ 1,697 | $ (3,660) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Benefit plan adjustments, income taxes | $ 1 | $ (115) | $ 3 | $ 2 |
Unrealized loss on cash flow hedge, income taxes | $ 0 | $ (63) | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (777) | $ (1,770) |
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 4,266 | 5,011 |
Gain on sale of assets | (4,203) | (2,939) |
Restructuring expenses | (1) | (111) |
Provision for deferred income taxes | (1,105) | (1,156) |
Stock compensation expense and other non-cash changes, net | 1,564 | 1,848 |
Net change in operating assets and liabilities | 288 | (1,932) |
Net cash provided (used) by operating activities | 32 | (1,049) |
Cash flows from investing activities: | ||
Acquisitions of property, plant and equipment | (4,734) | (1,750) |
Proceeds from sale of fixed assets | 7,152 | 9,152 |
Proceeds on note receivable | 0 | 500 |
Other, net | 385 | 140 |
Net cash provided by investing activities | 2,803 | 8,042 |
Cash flows from financing activities: | ||
Borrowings under revolving loan arrangements | 42,898 | 51,410 |
Repayments of revolving loan arrangements | (46,628) | (55,552) |
Repayments of other long term debt | (839) | (2,541) |
Payments of withholding taxes on stock compensation | (463) | (487) |
Net cash used by financing activities | (5,032) | (7,170) |
Effect of exchange rate changes on cash | 3,204 | (1,040) |
Net change in cash | 1,007 | (1,217) |
Cash: | ||
Beginning of period | 12,521 | 12,340 |
End of period | $ 13,528 | $ 11,123 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | A. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared by Twin Disc, Incorporated (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of the Company, include adjustments, consisting primarily of normal recurring items, necessary for a fair statement of results for each period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not 10 - June 30, 2022. not The Company's reporting period ends on the last Friday of the quarterly calendar period. The Company's fiscal year ends on June 30 , June 30 New Accounting Releases In June 2016, 2016 13 2018 19, 2019 04, 2019 05 2019 10 326 326 December 15, 2019, December 15, 2022 ( 2024 326 In March 2020 January 2021, 2020 04 2021 01, March 12, 2020, may December 31, 2022. not Special Note Regarding Smaller Reporting Company Status Under SEC Release 33 10513; 34 83550, |
Note B - Inventories
Note B - Inventories | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | B. Inventories The major classes of inventories were as follows: December 30, 2022 June 30, 2022 Inventories: Finished parts $ 70,515 $ 65,789 Work in process 25,674 19,801 Raw materials 40,621 41,519 $ 136,810 $ 127,109 |
Note C - Warranty
Note C - Warranty | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | C. Warranty The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its suppliers. However, its warranty obligation is affected by product failure rates, the number of units affected by the failure and the expense involved in satisfactorily addressing the situation. The warranty reserve is established based on our best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. When evaluating the adequacy of the reserve for warranty costs, management takes into consideration the term of the warranty coverage, historical claim rates and costs of repair, knowledge of the type and volume of new products and economic trends. While we believe the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable in the future could differ materially from what actually transpires. The following is a listing of the activity in the warranty reserve for the quarters ended December 30, 2022 December 31, 2021: For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Reserve balance, beginning of period $ 3,804 $ 3,560 $ 3,329 $ 4,369 Current period expense and adjustments 770 585 1,678 319 Payments or credits to customers (503 ) (638 ) (869 ) (1,169 ) Translation 74 (24 ) 7 (36 ) Reserve balance, end of period $ 4,145 $ 3,483 $ 4,145 $ 3,483 Included in expense in the two December 30, 2022 December 31, 2021 The current portion of the warranty accrual ($3,552 and $2,930 as of December 30, 2022 December 31, 2021, December 30, 2022 December 31, 2021, |
Note D - Contingencies
Note D - Contingencies | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | D. Contingencies The Company is involved in litigation of which the ultimate outcome and liability to the Company, if any, is not not |
Note E - Business Segments
Note E - Business Segments | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | E. Business Segments The Company and its subsidiaries are engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. Principal products include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. The Company sells to both domestic and foreign customers in a variety of market areas, principally pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company's worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network. The Company has two Information about the Company’s segments is summarized as follows: For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Net sales Manufacturing segment sales $ 56,678 $ 49,298 $ 105,675 $ 90,893 Distribution segment sales 25,584 28,291 49,892 48,825 Inter/Intra segment elimination – manufacturing (14,198 ) (13,200 ) (27,842 ) (24,143 ) Inter/Intra segment elimination – distribution (4,713 ) (4,500 ) (8,461 ) (7,925 ) $ 63,351 $ 59,889 $ 119,264 $ 107,650 Net income (loss) attributable to Twin Disc Manufacturing segment net income (loss) $ 3,832 $ (1,601 ) $ 5,627 $ 3,231 Distribution segment net income 1,403 1,496 2,359 1,979 Corporate and eliminations (4,096 ) (3,731 ) (8,875 ) (7,124 ) $ 1,139 $ (3,836 ) $ (889 ) $ (1,914 ) December 30, 2022 June 30, 2022 Assets Manufacturing segment assets $ 371,442 $ 364,174 Distribution segment assets 56,834 50,958 Corporate assets and elimination of intercompany assets (148,022 ) (138,609 ) $ 280,254 $ 276,523 Disaggregated revenue: The following table presents details deemed most relevant to the users of the financial statements for the quarters and two December 30, 2022 December 31, 2021. Net sales by product group for the quarter ended December 30, 2022 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 6,963 $ 1,726 $ (1,177 ) $ 7,512 Land-based transmissions 15,256 3,445 (4,030 ) 14,671 Marine and propulsion systems 34,262 15,427 (13,223 ) 36,466 Other 197 4,986 (481 ) 4,702 Total $ 56,678 $ 25,584 $ (18,911 ) $ 63,351 Net sales by product group for the quarter ended December 31, 2021 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 7,085 $ 1,809 $ (1,188 ) $ 7,706 Land-based transmissions 12,326 6,497 (5,505 ) 13,318 Marine and propulsion systems 29,861 16,659 (11,000 ) 35,520 Other 26 3,326 (7 ) 3,345 Total $ 49,298 $ 28,291 $ (17,700 ) $ 59,889 Net sales by product group for the two December 30, 2022 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 13,656 $ 2,774 $ (1,886 ) $ 14,544 Land-based transmissions 31,543 8,051 (8,985 ) 30,609 Marine and propulsion systems 60,077 29,971 (24,246 ) 65,802 Other 399 9,096 (1,186 ) 8,309 Total $ 105,675 $ 49,892 $ (36,303 ) $ 119,264 Net sales by product group for the two December 31, 2021 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 12,992 $ 2,927 $ (2,081 ) $ 13,838 Land-based transmissions 23,710 11,602 (9,752 ) 25,560 Marine and propulsion systems 54,148 28,222 (20,216 ) 62,154 Other 43 6,074 (19 ) 6,098 Total $ 90,893 $ 48,825 $ (32,068 ) $ 107,650 |
Note F - Stock-based Compensati
Note F - Stock-based Compensation | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | F. Stock-Based Compensation Performance Stock Awards ( PSA ) During the first two 2023 2022, 2023 three June 30, 2025. The PSAs granted in fiscal 2022 three June 30, 2024. There were 438.9 and 440.9 unvested PSAs outstanding at December 30, 2022 December 31, 2021, December 30, 2022 December 31, 2021, two December 30, 2022 December 31, 2021, December 30, 2022 December 30, 2022, 2023, 2022 2021 December 30, 2022 December 31, 2021 Restricted Stock Awards ( RS ) The Company has unvested RS awards outstanding that will vest if certain service conditions are fulfilled. The fair value of the RS grants is recorded as compensation expense over the vesting period, which is generally 1 to 3 years. During the first two 2023 2022, December 30, 2022 December 31, 2021, two December 30, 2022 December 31, 2021, December 30, 2022 December 31, 2021, two December 30, 2022 December 31, 2021, December 30, 2022 December 31, 2021 December 30, 2022, three Restricted Stock Unit Awards ( RSU ) Under the 2021 three first two 2023 2022, December 30, 2022 December 31, 2021, December 30, 2022 December 31, 2021, two December 30, 2022 December 31, 2021, December 30, 2022 December 31, 2021 December 30, 2022 December 30, 2022, two |
Note G - Pension and Other Post
Note G - Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | G. Pension and Other Postretirement Benefit Plans The Company has non-contributory, qualified defined benefit plans covering substantially all domestic employees hired prior to October 1, 2003 For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Pension Benefits: Service cost $ 102 $ 130 $ 203 $ 269 Prior service cost 8 10 17 20 Interest cost 868 681 1,736 1,347 Expected return on plan assets (1,060 ) (1,255 ) (2,120 ) (2,514 ) Amortization of transition obligation 9 9 18 18 Amortization of prior service cost 9 (4 ) 18 (8 ) Amortization of actuarial net loss 617 562 1,235 1,124 Net periodic benefit cost $ 553 $ 133 $ 1,107 $ 256 Postretirement Benefits: Service cost $ 2 $ 4 $ 5 $ 8 Interest cost 53 35 106 70 Amortization of prior service cost (69 ) (69 ) (137 ) (138 ) Amortization of actuarial net loss (10 ) - (19 ) - Net periodic benefit gain $ (24 ) $ (30 ) $ (45 ) $ (60 ) The service cost component is included in cost of goods sold and marketing, engineering and administrative expenses. All other components of net periodic benefit cost are included in other expense (income), net. The Company expects to contribute approximately $576 to its pension plans in fiscal 2023. two December 30, 2022, The Company had changes in benefit plan adjustments totaling ($515) (net of $1 in taxes) from accumulated other comprehensive loss during the quarter ended December 30, 2022, December 31, 2021. two December 30, 2022, two December 31, 2021. December 30, 2022. |
Note H - Income Taxes
Note H - Income Taxes | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | H. Income Taxes Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with the estimated Annual Effective Tax Rate (AETR). Under this effective tax rate methodology, the Company applies an estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. To calculate its AETR, an entity must estimate its ordinary income or loss and the related tax expense or benefit for its full fiscal year. In situations in which an entity is in a loss position and recognizes a full valuation allowance, the guidance in ASC 740 270 25 9 may 740 10 For the six December 30, 2022 December 31, 2021 In the post pandemic era, the Company continues to monitor for any revisions enacted under the Tax Cuts and Job Act (TCJA), Coronavirus Aid, Relief and Economic Security (CARES) Act and the American Rescue Plan (ARPA). On August 16, 2022, not The Company maintains valuation allowances when it is more likely than not not no The Company has approximately $783 of unrecognized tax benefits, which include $53 of related interest and penalties, as of December 30, 2022, no December 30, 2022. twelve Annually, the Company files income tax returns in various taxing jurisdictions inside and outside the United States. In general, the tax years that remain subject to examination in foreign jurisdictions are 2014 2021. 2019. 2017. 2023. |
Note I - Intangible Assets
Note I - Intangible Assets | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | I. Intangible Assets As of December 30, 2022, Net Book Value Rollforward Net Book Value By Asset Type Gross Carrying Amount Accumulated Amortization / Impairment Net Book Value Customer Relationships Technology Know-how Trade Name Other Balance at June 30, 2022 $ 39,845 $ (26,835 ) $ 13,010 $ 7,636 $ 3,238 $ 972 $ 1,164 Addition 9 - 9 - - - 9 Reduction (10,506 ) 10,506 - - - - - Amortization - (1,402 ) (1,402 ) (650 ) (562 ) (39 ) (151 ) Translation adjustment 181 - 181 125 320 (265 ) 1 Balance at December 30, 2022 $ 29,529 $ (17,731 ) $ 11,798 $ 7,111 $ 2,996 $ 668 $ 1,023 Other intangibles consist mainly of computer software. Amortization is recorded on the basis of straight-line or accelerated, as appropriate, over the estimated useful lives of the assets. The weighted average remaining useful life of the intangible assets included in the table above is approximately 7 years. Intangible amortization expense was $704 and $804 for the quarters ended December 30, 2022, December 31, 2021, two December 30, 2022, December 31, 2021, 2023 five Fiscal Year 2023 $ 1,448 2024 2,796 2025 2,641 2026 1,738 2027 1,073 2028 1,046 Thereafter 1,056 |
Note J - Long-term Debt
Note J - Long-term Debt | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | J. Long-term Debt Long-term debt at December 30, 2022 June 30, 2022 December 30, 2022 June 30, 2022 Credit Agreement Debt Revolving loans (expire June 2025) $ 19,381 $ 22,968 Term loan (due March 2026) 12,500 13,500 Other 46 75 Subtotal 31,927 36,543 Less: current maturities (2,000 ) (2,000 ) Total long-term debt $ 29,927 $ 34,543 Credit Agreement Debt: June 29, 2018 ( On June 30, 2022, No. 9 June 29, 2018, Pursuant to the Credit Agreement, as in effect prior to the Ninth Amendment, the Bank made a Term Loan to the Company in the principal amount of $20 million, and the Company may, not The Ninth Amendment extended the Credit Agreement through June 30, 2025. June 30, 2023. The Ninth Amendment also formally terminated the January 27, 2021 not three December 25, 2020. The Ninth Amendment also replaced LIBOR-based interest rates with different benchmark rates based on the secured overnight financing rate (“SOFR”) or the euro interbank offered rate (the “EURIBO Rate”). Loans under the Credit Agreement are designated either as “SOFR Loans,” which accrue interest at an Adjusted Term SOFR plus an Applicable Margin, or “Eurodollar Loans,” which accrue interest at the EURIBO Rate plus an Applicable Margin. Amounts drawn on a Letter of Credit that are not The Ninth Amendment also reduced the Applicable Margins from the rates that had been in effect during the period of the Forbearance Agreement. During the period covered by the Forbearance Agreement, the Applicable Margins for Revolving Loans, Term Loans, and the Unused Revolving Credit Commitment were 3.25%, 3.875%, and .20%, respectively. Under the Ninth Amendment, the Applicable Margins are between 1.25% and 2.75% for Revolving Loans and Letters of Credit; 1.375% and 2.875% for Term Loans; and .10% and .15% for the Unused Revolving Credit Commitment (each depending on the Company’s Total Funded Debt to EBITDA ratio). The Ninth Amendment also revised the Company’s financial covenants under the Credit Agreement. The Company’s Total Funded Debt to EBITDA ratio (for which the Bank provided relief during period covered by the Forbearance Agreement) may not 1.00, may not 1.00. may not 50% June 30, 2023. The Company remains in compliance with its liquidity and other covenants. The Credit Agreement, including its amendments, is more fully described in the Company’s Annual Report filed on Form 10 June 30, 2022, 2 As of December 30, 2022, Other: three five During the quarter ended December 30, 2022, As of December 30, 2022, The Company’s borrowings described above approximate fair value at December 30, 2022 June 30, 2022. 2 The Company is party to an interest rate swap arrangement with Bank of Montreal, with an initial notional amount of $20,000 and a maturity date of March 4, 2026 December 30, 2022, 815, During the fourth 2021, |
Note K - Shareholders' Equity
Note K - Shareholders' Equity | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | K. Shareholders Equity The Company, from time to time, makes open market purchases of its common stock under authorizations given to it by the Board of Directors, of which 315.0 shares as of December 30, 2022 not December 30, 2022 December 31, 2021. The following is a reconciliation of the Company’s equity balances for the first two 2023 2022: Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income Stock Interest Equity Balance, June 30, 2022 $ 42,551 $ 135,031 $ (32,086 ) $ (14,720 ) $ 412 $ 131,188 Net (loss) income (2,029 ) 98 $ (1,931 ) Translation adjustments (6,328 ) 38 $ (6,290 ) Benefit plan adjustments, net of tax 518 $ 518 Unrealized gain on cash flow hedge, net of tax 793 $ 793 Compensation expense 658 $ 658 Shares (acquired) issued, net (1,924 ) 1,756 $ (168 ) Balance, September 30, 2022 41,285 133,002 (37,103 ) (12,964 ) 548 124,768 Net (loss) income 1,139 15 1,154 Translation adjustments 8,333 59 8,392 Benefit plan adjustments, net of tax (515 ) (515 ) Unrealized gain on cash flow hedge, net of tax (595 ) (595 ) Compensation expense 856 856 Shares (acquired) issued, net (697 ) 402 (295 ) Balance, December 30, 2022 $ 41,444 $ 134,141 $ (29,880 ) $ (12,562 ) $ 622 $ 133,765 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2021 $ 40,972 $ 126,936 $ (22,615 ) $ (15,083 ) $ 450 $ 130,660 Net income 1,920 60 1,980 Translation adjustments (2,014 ) 76 (1,938 ) Benefit plan adjustments, net of tax 384 384 Unrealized gain on cash flow hedge, net of tax 204 204 Compensation expense 625 625 Shares (acquired) issued, net (432 ) 141 (291 ) Balance, September 24, 2021 41,165 128,856 (24,041 ) (14,942 ) 586 131,624 Net (loss) income (3,836 ) 86 (3,750 ) Translation adjustments (1,676 ) (25 ) (1,701 ) Benefit plan adjustments, net of tax 623 623 Unrealized gain on cash flow hedge, net of tax 735 735 Compensation expense 595 595 Shares (acquired) issued, net (169 ) (26 ) (195 ) Balance, December 31, 2021 $ 41,591 $ 125,020 $ (24,359 ) $ (14,968 ) $ 647 $ 127,931 Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended December 30, 2022 December 31, 2021 Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance at June 30, 2022 $ (2,266 ) $ (31,726 ) $ 355 $ 1,551 Translation adjustment during the quarter (6,328 ) - - - Amounts reclassified from accumulated other comprehensive income (loss) - 518 349 444 Net current period other comprehensive (loss) income (6,328 ) 518 349 444 Balance at September 30, 2022 $ (8,594 ) $ (31,208 ) $ 704 $ 1,995 Translation adjustment during the quarter 8,333 - - - Amounts reclassified from accumulated other comprehensive income - 600 (10 ) (585 ) Plan merger remeasurement adjustment - (1,115 ) - - Net current period other comprehensive (loss) income 8,333 (515 ) (10 ) (585 ) Balance at December 30, 2022 (261 ) (31,723 ) 694 1,410 Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance at June 30, 2021 $ 9,192 $ (31,463 ) $ (678 ) $ 334 Translation adjustment during the quarter (2,014 ) - - - Amounts reclassified from accumulated other comprehensive income - 384 68 136 Net current period other comprehensive (loss) income (2,014 ) 384 68 136 Balance at September 24, 2021 $ 7,178 $ (31,079 ) $ (610 ) $ 470 Translation adjustment during the quarter (1,676 ) - - - Amounts reclassified from accumulated other comprehensive income - 623 232 503 Net current period other comprehensive (loss) income (1,676 ) 623 232 503 Balance at December 31, 2021 5,502 (30,456 ) (378 ) 973 Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended December 30, 2022 Quarter Ended Two Quarters Ended December 30, 2022 December 30, 2022 Changes in benefit plan items Actuarial losses $ 608 (a) $ 1,215 (a) Transition asset and prior service benefit (51 ) (a) (102 ) (a) Translation 42 2 Total amortization 599 1,115 Plan merger remeasurement adjustment (1,115 ) (1,115 ) Income tax expense 1 3 Total changes, net of tax $ (515 ) $ 3 Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended December 31, 2021 Quarter Ended Two Quarters Ended December 31, 2021 December 31, 2021 Changes in benefit plan items Actuarial losses $ 562 (a) $ 1,124 (a) Transition asset and prior service benefit (64 ) (a) (128 ) (a) Translation 10 13 Total amortization 508 1,009 Income tax expense (115 ) 2 Total changes, net of tax $ 623 $ 1,007 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G, "Pension and Other Postretirement Benefit Plans" for further details). |
Note L - Restructuring of Opera
Note L - Restructuring of Operations | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | L. Restructuring of Operations Restructuring expenses The Company has implemented various restructuring programs in response to unfavorable macroeconomic trends in certain of the Company’s markets since the fourth 2015. fourth 2021, With regard to its Belgian operations, on June 30, 2021, 18 June 2023. In the second 2022, second 2022. Total restructuring charges relating to streamlining operations totaled $164 and $1,190 in the quarters ending December 30, 2022 December 31, 2021, two December 30, 2022 December 31, 2021, June 2015 December 30, 2022 The following is a roll-forward of restructuring activity: Accrued restructuring liability, June 30, 2022 $ 1,024 Additions 174 Payments, adjustments and write-offs during the year (175 ) Accrued restructuring liability, December 30, 2022 $ 1,023 Assets held for sale To improve its fixed cost structure and monetize some of its under-utilized assets, the Company commenced the active marketing of several of its real estate properties, namely, its corporate headquarters in Racine, its propeller machining plant and office in Switzerland, and a spare warehouse in Italy during the fourth 2021 . 3 fourth 2021. In the first 2022, fourth 2022 , In the first 2023, 3 In the second 2023, two |
Note M - Earnings Per Share
Note M - Earnings Per Share | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | M. Earnings Per Share The Company calculates basic earnings per share based upon the weighted average number of common shares outstanding during the period, while the calculation of diluted earnings per share includes the dilutive effect of potential common shares outstanding during the period. The calculation of diluted earnings per share excludes all potential common shares if their inclusion would have an anti-dilutive effect. Certain restricted stock award recipients have a non-forfeitable right to receive dividends declared by the Company and are therefore included in computing earnings per share pursuant to the two The components of basic and diluted earnings per share were as follows: For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Basic: Net income (loss) $ 1,154 $ (3,750 ) $ (777 ) $ (1,770 ) Less: Net earnings attributable to noncontrolling interest (15 ) (86 ) (112 ) (144 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income (loss) attributable to Twin Disc 1,139 (3,836 ) (889 ) (1,914 ) Weighted average shares outstanding - basic 13,460 13,296 13,434 13,288 Basic Loss Per Share: Net earnings (loss) per share - basic $ 0.08 $ (0.29 ) $ (0.07 ) $ (0.14 ) Diluted: Net income (loss) $ 1,154 $ (3,750 ) $ (777 ) $ (1,770 ) Less: Net earnings attributable to noncontrolling interest (15 ) (86 ) (112 ) (144 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income (loss) attributable to Twin Disc 1,139 (3,836 ) (889 ) (1,914 ) Weighted average shares outstanding - basic 13,460 13,296 13,434 13,288 Effect of dilutive stock awards 239 - - - Weighted average shares outstanding - diluted 13,699 13,296 13,434 13,288 Diluted Income (Loss) Per Share: Net earnings (loss) per share - diluted $ 0.08 $ (0.29 ) $ (0.07 ) $ (0.14 ) The following potential common shares were excluded from diluted EPS for the two December 31, 2022 The following potential common shares were excluded from diluted EPS for the quarter and two December 31, 2021 |
Note N - Lease Obligations
Note N - Lease Obligations | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | N. Lease Liabilities The Company leases certain office and warehouse space, as well as production and office equipment. The Company determines if an arrangement is a lease at contract inception. The lease term begins upon lease commencement, which is when the Company takes possession of the asset and may not The components of lease expense were as follows: For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Finance lease cost: Amortization of right-of-use assets $ 156 $ 168 $ 311 $ 331 Interest on lease liabilities 67 71 132 142 Operating lease cost 686 698 1,397 1,391 Short-term lease cost (10 ) 37 3 40 Variable lease cost 67 42 108 81 Total lease cost 966 1,016 1,952 1,985 Less: Sublease income (18 ) (19 ) (35 ) (39 ) Net lease cost $ 948 $ 997 $ 1,917 $ 1,946 Other information related to leases was as follows: For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 777 $ 737 $ 1,473 $ 1,479 Operating cash flows from finance leases 215 211 420 416 Financing cash flows from finance leases 67 71 132 142 Right-of-use-assets obtained in exchange for lease obligations: Operating leases 990 232 1,518 396 Finance leases 269 133 320 307 Weighted average remaining lease term (years): Operating leases 8.3 9.3 Finance lease 10.8 11.5 Weighted average discount rate: Operating leases 7.2 % 7.2 % Finance leases 5.2 % 5.2 % Approximate future minimum rental commitments under non-cancellable leases as of December 30, 2022 Operating Leases Finance Leases 2023 $ 1,507 $ 877 2024 2,517 875 2025 1,619 644 2026 1,434 578 2027 1,428 519 Thereafter 7,636 4,448 Total future lease payments 16,142 7,940 Less: Amount representing interest (3,321 ) (2,899 ) Present value of future payments $ 12,821 $ 5,041 The following table provides a summary of leases recorded on the condensed consolidated balance sheet. Balance Sheet Location December 30, 2022 June 30, 2022 Lease Assets Operating lease right-of-use assets Right-of-use assets operating leases $ 12,807 $ 12,685 Finance lease right-of-use assets Property, plant and equipment, net 4,563 4,805 Lease Liabilities Operating lease liabilities Accrued liabilities $ 2,543 $ 2,127 Operating lease liabilities Lease obligations 10,278 10,575 Finance lease liabilities Accrued liabilities 615 576 Finance lease liabilities Other long-term liabilities 4,426 4,440 |
Note O - Derivative Financial I
Note O - Derivative Financial Instruments | 6 Months Ended |
Dec. 30, 2022 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | O. Derivative Financial Instruments From time to time, the Company enters into derivative instruments to manage risks relating to interest rate and foreign exchange rate volatility. The Company does not no The Company reports all derivative instruments on its consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of transactions entered into for hedging purposes. Interest Rate Swap Contracts The Company has one December 30, 2022, 815, The primary purpose of the Company’s cash flow hedging activities is to manage the potential changes in value associated with interest payments on the Company’s SOFR-based indebtedness. The Company records gains and losses on interest rate swap contracts qualifying as cash flow hedges in accumulated other comprehensive loss to the extent that these hedges are effective and until the Company recognizes the underlying transactions in net earnings, at which time these gains and losses are recognized in interest expense on its consolidated statements of operations and comprehensive income (loss). Cash flows from derivative financial instruments are classified as cash flows from financing activities on the consolidated statements of cash flows. These contracts generally have original maturities of greater than twelve Net unrealized after-tax losses related to cash flow hedging activities that were included in accumulated other comprehensive loss were ($694) and ($355) as of December 30, 2022, June 30, 2022, The Company estimates that $273 of net unrealized losses related to cash flow hedging activities included in accumulated other comprehensive income (loss) will be reclassified into earnings within the next twelve Derivatives Designated as Net Investment Hedges The Company is exposed to foreign currency exchange risk related to its investment in net assets in foreign countries. As discussed in Note J, Long-term Debt, during the fourth 2021, €6,500, December 30, 2022 June 30, 2022, Fair Value of Derivative Instruments The fair value of derivative instruments included in the condensed consolidated balance sheets were as follows: Balance Sheet Location December 30, 2022 June 30, 2022 Derivative designated as hedge: Interest rate swap Other current assets $ 273 $ 68 Interest rate swap Other noncurrent assets 211 77 The impact of the Company’s derivative instruments on the condensed consolidated statements of operations and comprehensive (loss) income for the quarters and two December 30, 2022 December 31, 2021, Statement of Comprehensive For the Quarter Ended For the Two Quarters Ended (Loss) Income Location December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Derivative designated as hedge: Interest rate swap Interest expense $ 79 $ 98 $ 162 $ 187 Interest rate swap Unrealized (loss) gain on cash flow hedge (338 ) 232 (1 ) 300 Net investment hedge Unrealized (loss) gain on hedges (585 ) 503 (141 ) 639 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 30, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Releases In June 2016, 2016 13 2018 19, 2019 04, 2019 05 2019 10 326 326 December 15, 2019, December 15, 2022 ( 2024 326 In March 2020 January 2021, 2020 04 2021 01, March 12, 2020, may December 31, 2022. not |
Reporting Status [Policy Text Block] | Special Note Regarding Smaller Reporting Company Status Under SEC Release 33 10513; 34 83550, |
Note B - Inventories (Tables)
Note B - Inventories (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 30, 2022 June 30, 2022 Inventories: Finished parts $ 70,515 $ 65,789 Work in process 25,674 19,801 Raw materials 40,621 41,519 $ 136,810 $ 127,109 |
Note C - Warranty (Tables)
Note C - Warranty (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Reserve balance, beginning of period $ 3,804 $ 3,560 $ 3,329 $ 4,369 Current period expense and adjustments 770 585 1,678 319 Payments or credits to customers (503 ) (638 ) (869 ) (1,169 ) Translation 74 (24 ) 7 (36 ) Reserve balance, end of period $ 4,145 $ 3,483 $ 4,145 $ 3,483 |
Note E - Business Segments (Tab
Note E - Business Segments (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Net sales Manufacturing segment sales $ 56,678 $ 49,298 $ 105,675 $ 90,893 Distribution segment sales 25,584 28,291 49,892 48,825 Inter/Intra segment elimination – manufacturing (14,198 ) (13,200 ) (27,842 ) (24,143 ) Inter/Intra segment elimination – distribution (4,713 ) (4,500 ) (8,461 ) (7,925 ) $ 63,351 $ 59,889 $ 119,264 $ 107,650 Net income (loss) attributable to Twin Disc Manufacturing segment net income (loss) $ 3,832 $ (1,601 ) $ 5,627 $ 3,231 Distribution segment net income 1,403 1,496 2,359 1,979 Corporate and eliminations (4,096 ) (3,731 ) (8,875 ) (7,124 ) $ 1,139 $ (3,836 ) $ (889 ) $ (1,914 ) |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | December 30, 2022 June 30, 2022 Assets Manufacturing segment assets $ 371,442 $ 364,174 Distribution segment assets 56,834 50,958 Corporate assets and elimination of intercompany assets (148,022 ) (138,609 ) $ 280,254 $ 276,523 |
Revenue from External Customers by Products and Services [Table Text Block] | Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 6,963 $ 1,726 $ (1,177 ) $ 7,512 Land-based transmissions 15,256 3,445 (4,030 ) 14,671 Marine and propulsion systems 34,262 15,427 (13,223 ) 36,466 Other 197 4,986 (481 ) 4,702 Total $ 56,678 $ 25,584 $ (18,911 ) $ 63,351 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 7,085 $ 1,809 $ (1,188 ) $ 7,706 Land-based transmissions 12,326 6,497 (5,505 ) 13,318 Marine and propulsion systems 29,861 16,659 (11,000 ) 35,520 Other 26 3,326 (7 ) 3,345 Total $ 49,298 $ 28,291 $ (17,700 ) $ 59,889 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 13,656 $ 2,774 $ (1,886 ) $ 14,544 Land-based transmissions 31,543 8,051 (8,985 ) 30,609 Marine and propulsion systems 60,077 29,971 (24,246 ) 65,802 Other 399 9,096 (1,186 ) 8,309 Total $ 105,675 $ 49,892 $ (36,303 ) $ 119,264 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 12,992 $ 2,927 $ (2,081 ) $ 13,838 Land-based transmissions 23,710 11,602 (9,752 ) 25,560 Marine and propulsion systems 54,148 28,222 (20,216 ) 62,154 Other 43 6,074 (19 ) 6,098 Total $ 90,893 $ 48,825 $ (32,068 ) $ 107,650 |
Note G - Pension and Other Po_2
Note G - Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Pension Benefits: Service cost $ 102 $ 130 $ 203 $ 269 Prior service cost 8 10 17 20 Interest cost 868 681 1,736 1,347 Expected return on plan assets (1,060 ) (1,255 ) (2,120 ) (2,514 ) Amortization of transition obligation 9 9 18 18 Amortization of prior service cost 9 (4 ) 18 (8 ) Amortization of actuarial net loss 617 562 1,235 1,124 Net periodic benefit cost $ 553 $ 133 $ 1,107 $ 256 Postretirement Benefits: Service cost $ 2 $ 4 $ 5 $ 8 Interest cost 53 35 106 70 Amortization of prior service cost (69 ) (69 ) (137 ) (138 ) Amortization of actuarial net loss (10 ) - (19 ) - Net periodic benefit gain $ (24 ) $ (30 ) $ (45 ) $ (60 ) |
Note I - Intangible Assets (Tab
Note I - Intangible Assets (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Net Book Value Rollforward Net Book Value By Asset Type Gross Carrying Amount Accumulated Amortization / Impairment Net Book Value Customer Relationships Technology Know-how Trade Name Other Balance at June 30, 2022 $ 39,845 $ (26,835 ) $ 13,010 $ 7,636 $ 3,238 $ 972 $ 1,164 Addition 9 - 9 - - - 9 Reduction (10,506 ) 10,506 - - - - - Amortization - (1,402 ) (1,402 ) (650 ) (562 ) (39 ) (151 ) Translation adjustment 181 - 181 125 320 (265 ) 1 Balance at December 30, 2022 $ 29,529 $ (17,731 ) $ 11,798 $ 7,111 $ 2,996 $ 668 $ 1,023 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year 2023 $ 1,448 2024 2,796 2025 2,641 2026 1,738 2027 1,073 2028 1,046 Thereafter 1,056 |
Note J - Long-term Debt (Tables
Note J - Long-term Debt (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 30, 2022 June 30, 2022 Credit Agreement Debt Revolving loans (expire June 2025) $ 19,381 $ 22,968 Term loan (due March 2026) 12,500 13,500 Other 46 75 Subtotal 31,927 36,543 Less: current maturities (2,000 ) (2,000 ) Total long-term debt $ 29,927 $ 34,543 |
Note K - Shareholders' Equity (
Note K - Shareholders' Equity (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income Stock Interest Equity Balance, June 30, 2022 $ 42,551 $ 135,031 $ (32,086 ) $ (14,720 ) $ 412 $ 131,188 Net (loss) income (2,029 ) 98 $ (1,931 ) Translation adjustments (6,328 ) 38 $ (6,290 ) Benefit plan adjustments, net of tax 518 $ 518 Unrealized gain on cash flow hedge, net of tax 793 $ 793 Compensation expense 658 $ 658 Shares (acquired) issued, net (1,924 ) 1,756 $ (168 ) Balance, September 30, 2022 41,285 133,002 (37,103 ) (12,964 ) 548 124,768 Net (loss) income 1,139 15 1,154 Translation adjustments 8,333 59 8,392 Benefit plan adjustments, net of tax (515 ) (515 ) Unrealized gain on cash flow hedge, net of tax (595 ) (595 ) Compensation expense 856 856 Shares (acquired) issued, net (697 ) 402 (295 ) Balance, December 30, 2022 $ 41,444 $ 134,141 $ (29,880 ) $ (12,562 ) $ 622 $ 133,765 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2021 $ 40,972 $ 126,936 $ (22,615 ) $ (15,083 ) $ 450 $ 130,660 Net income 1,920 60 1,980 Translation adjustments (2,014 ) 76 (1,938 ) Benefit plan adjustments, net of tax 384 384 Unrealized gain on cash flow hedge, net of tax 204 204 Compensation expense 625 625 Shares (acquired) issued, net (432 ) 141 (291 ) Balance, September 24, 2021 41,165 128,856 (24,041 ) (14,942 ) 586 131,624 Net (loss) income (3,836 ) 86 (3,750 ) Translation adjustments (1,676 ) (25 ) (1,701 ) Benefit plan adjustments, net of tax 623 623 Unrealized gain on cash flow hedge, net of tax 735 735 Compensation expense 595 595 Shares (acquired) issued, net (169 ) (26 ) (195 ) Balance, December 31, 2021 $ 41,591 $ 125,020 $ (24,359 ) $ (14,968 ) $ 647 $ 127,931 |
Reconciliation For The Changes In Accumulated Other Comprehensive Income Loss Net Of Tax By Component [Table Text Block] | Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance at June 30, 2022 $ (2,266 ) $ (31,726 ) $ 355 $ 1,551 Translation adjustment during the quarter (6,328 ) - - - Amounts reclassified from accumulated other comprehensive income (loss) - 518 349 444 Net current period other comprehensive (loss) income (6,328 ) 518 349 444 Balance at September 30, 2022 $ (8,594 ) $ (31,208 ) $ 704 $ 1,995 Translation adjustment during the quarter 8,333 - - - Amounts reclassified from accumulated other comprehensive income - 600 (10 ) (585 ) Plan merger remeasurement adjustment - (1,115 ) - - Net current period other comprehensive (loss) income 8,333 (515 ) (10 ) (585 ) Balance at December 30, 2022 (261 ) (31,723 ) 694 1,410 Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance at June 30, 2021 $ 9,192 $ (31,463 ) $ (678 ) $ 334 Translation adjustment during the quarter (2,014 ) - - - Amounts reclassified from accumulated other comprehensive income - 384 68 136 Net current period other comprehensive (loss) income (2,014 ) 384 68 136 Balance at September 24, 2021 $ 7,178 $ (31,079 ) $ (610 ) $ 470 Translation adjustment during the quarter (1,676 ) - - - Amounts reclassified from accumulated other comprehensive income - 623 232 503 Net current period other comprehensive (loss) income (1,676 ) 623 232 503 Balance at December 31, 2021 5,502 (30,456 ) (378 ) 973 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Quarter Ended Two Quarters Ended December 30, 2022 December 30, 2022 Changes in benefit plan items Actuarial losses $ 608 (a) $ 1,215 (a) Transition asset and prior service benefit (51 ) (a) (102 ) (a) Translation 42 2 Total amortization 599 1,115 Plan merger remeasurement adjustment (1,115 ) (1,115 ) Income tax expense 1 3 Total changes, net of tax $ (515 ) $ 3 Quarter Ended Two Quarters Ended December 31, 2021 December 31, 2021 Changes in benefit plan items Actuarial losses $ 562 (a) $ 1,124 (a) Transition asset and prior service benefit (64 ) (a) (128 ) (a) Translation 10 13 Total amortization 508 1,009 Income tax expense (115 ) 2 Total changes, net of tax $ 623 $ 1,007 |
Note L - Restructuring of Ope_2
Note L - Restructuring of Operations (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Accrued restructuring liability, June 30, 2022 $ 1,024 Additions 174 Payments, adjustments and write-offs during the year (175 ) Accrued restructuring liability, December 30, 2022 $ 1,023 |
Note M - Earnings Per Share (Ta
Note M - Earnings Per Share (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Basic: Net income (loss) $ 1,154 $ (3,750 ) $ (777 ) $ (1,770 ) Less: Net earnings attributable to noncontrolling interest (15 ) (86 ) (112 ) (144 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income (loss) attributable to Twin Disc 1,139 (3,836 ) (889 ) (1,914 ) Weighted average shares outstanding - basic 13,460 13,296 13,434 13,288 Basic Loss Per Share: Net earnings (loss) per share - basic $ 0.08 $ (0.29 ) $ (0.07 ) $ (0.14 ) Diluted: Net income (loss) $ 1,154 $ (3,750 ) $ (777 ) $ (1,770 ) Less: Net earnings attributable to noncontrolling interest (15 ) (86 ) (112 ) (144 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income (loss) attributable to Twin Disc 1,139 (3,836 ) (889 ) (1,914 ) Weighted average shares outstanding - basic 13,460 13,296 13,434 13,288 Effect of dilutive stock awards 239 - - - Weighted average shares outstanding - diluted 13,699 13,296 13,434 13,288 Diluted Income (Loss) Per Share: Net earnings (loss) per share - diluted $ 0.08 $ (0.29 ) $ (0.07 ) $ (0.14 ) |
Note N - Lease Obligations (Tab
Note N - Lease Obligations (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Finance lease cost: Amortization of right-of-use assets $ 156 $ 168 $ 311 $ 331 Interest on lease liabilities 67 71 132 142 Operating lease cost 686 698 1,397 1,391 Short-term lease cost (10 ) 37 3 40 Variable lease cost 67 42 108 81 Total lease cost 966 1,016 1,952 1,985 Less: Sublease income (18 ) (19 ) (35 ) (39 ) Net lease cost $ 948 $ 997 $ 1,917 $ 1,946 |
Operating and Finance Leases, Other Disclosures [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 777 $ 737 $ 1,473 $ 1,479 Operating cash flows from finance leases 215 211 420 416 Financing cash flows from finance leases 67 71 132 142 Right-of-use-assets obtained in exchange for lease obligations: Operating leases 990 232 1,518 396 Finance leases 269 133 320 307 Weighted average remaining lease term (years): Operating leases 8.3 9.3 Finance lease 10.8 11.5 Weighted average discount rate: Operating leases 7.2 % 7.2 % Finance leases 5.2 % 5.2 % |
Schedule of Future Minimum Rental Payments for Operating Leases and Finance Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases 2023 $ 1,507 $ 877 2024 2,517 875 2025 1,619 644 2026 1,434 578 2027 1,428 519 Thereafter 7,636 4,448 Total future lease payments 16,142 7,940 Less: Amount representing interest (3,321 ) (2,899 ) Present value of future payments $ 12,821 $ 5,041 |
Assets and Liabilities, Lessee [Table Text Block] | Balance Sheet Location December 30, 2022 June 30, 2022 Lease Assets Operating lease right-of-use assets Right-of-use assets operating leases $ 12,807 $ 12,685 Finance lease right-of-use assets Property, plant and equipment, net 4,563 4,805 Lease Liabilities Operating lease liabilities Accrued liabilities $ 2,543 $ 2,127 Operating lease liabilities Lease obligations 10,278 10,575 Finance lease liabilities Accrued liabilities 615 576 Finance lease liabilities Other long-term liabilities 4,426 4,440 |
Note O - Derivative Financial_2
Note O - Derivative Financial Instruments (Tables) | 6 Months Ended |
Dec. 30, 2022 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Balance Sheet Location December 30, 2022 June 30, 2022 Derivative designated as hedge: Interest rate swap Other current assets $ 273 $ 68 Interest rate swap Other noncurrent assets 211 77 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Statement of Comprehensive For the Quarter Ended For the Two Quarters Ended (Loss) Income Location December 30, 2022 December 31, 2021 December 30, 2022 December 31, 2021 Derivative designated as hedge: Interest rate swap Interest expense $ 79 $ 98 $ 162 $ 187 Interest rate swap Unrealized (loss) gain on cash flow hedge (338 ) 232 (1 ) 300 Net investment hedge Unrealized (loss) gain on hedges (585 ) 503 (141 ) 639 |
Note B - Inventories - Inventor
Note B - Inventories - Inventories (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Jun. 30, 2022 |
Finished parts | $ 70,515 | $ 65,789 |
Work in process | 25,674 | 19,801 |
Raw materials | 40,621 | 41,519 |
Total inventories | $ 136,810 | $ 127,109 |
Note C - Warranty (Details Text
Note C - Warranty (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Product Warranty Expense | $ 0 | $ 0 |
Product Warranty Accrual, Current | 3,552 | 2,930 |
Product Warranty Accrual, Noncurrent | $ 594 | $ 553 |
Note C - Warranty - Warranty (D
Note C - Warranty - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Reserve balance, beginning of period | $ 3,804 | $ 3,560 | $ 3,329 | $ 4,369 |
Current period expense and adjustments | 770 | 585 | 1,678 | 319 |
Payments or credits to customers | (503) | (638) | (869) | (1,169) |
Translation | 74 | (24) | 7 | (36) |
Reserve balance, end of period | $ 4,145 | $ 3,483 | $ 4,145 | $ 3,483 |
Note E - Business Segments (Det
Note E - Business Segments (Details Textual) | 6 Months Ended |
Dec. 30, 2022 | |
Number of Reportable Segments | 2 |
Note E - Business Segments - Re
Note E - Business Segments - Revenues by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Net sales | $ 63,351 | $ 59,889 | $ 119,264 | $ 107,650 |
Manufacturing segment net income (loss) | 1,139 | (3,836) | (889) | (1,914) |
Intersegment Eliminations [Member] | ||||
Net sales | (18,911) | (17,700) | (36,303) | (32,068) |
Corporate, Non-Segment [Member] | ||||
Manufacturing segment net income (loss) | (4,096) | (3,731) | (8,875) | (7,124) |
Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net sales | 56,678 | 49,298 | 105,675 | 90,893 |
Manufacturing segment net income (loss) | 3,832 | (1,601) | 5,627 | 3,231 |
Manufacturing Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | (14,198) | (13,200) | (27,842) | (24,143) |
Distribution Segment [Member] | Operating Segments [Member] | ||||
Net sales | 25,584 | 28,291 | 49,892 | 48,825 |
Manufacturing segment net income (loss) | 1,403 | 1,496 | 2,359 | 1,979 |
Distribution Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | $ (4,713) | $ (4,500) | $ (8,461) | $ (7,925) |
Note E - Business Segments - As
Note E - Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Jun. 30, 2022 |
Segment Assets | $ 280,254 | $ 276,523 |
Operating Segments [Member] | Manufacturing Segment [Member] | ||
Segment Assets | 371,442 | 364,174 |
Operating Segments [Member] | Distribution Segment [Member] | ||
Segment Assets | 56,834 | 50,958 |
Corporate, Non-Segment [Member] | ||
Segment Assets | $ (148,022) | $ (138,609) |
Note E - Business Segments - Ne
Note E - Business Segments - Net Sales by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Net Sales | $ 63,351 | $ 59,889 | $ 119,264 | $ 107,650 |
Operating Segments [Member] | Manufacturing Segment [Member] | ||||
Net Sales | 56,678 | 49,298 | 105,675 | 90,893 |
Operating Segments [Member] | Distribution Segment [Member] | ||||
Net Sales | 25,584 | 28,291 | 49,892 | 48,825 |
Intersegment Eliminations [Member] | ||||
Net Sales | (18,911) | (17,700) | (36,303) | (32,068) |
Intersegment Eliminations [Member] | Manufacturing Segment [Member] | ||||
Net Sales | (14,198) | (13,200) | (27,842) | (24,143) |
Intersegment Eliminations [Member] | Distribution Segment [Member] | ||||
Net Sales | (4,713) | (4,500) | (8,461) | (7,925) |
Industrial [Member] | ||||
Net Sales | 7,512 | 7,706 | 14,544 | 13,838 |
Industrial [Member] | Operating Segments [Member] | Manufacturing Segment [Member] | ||||
Net Sales | 6,963 | 7,085 | 13,656 | 12,992 |
Industrial [Member] | Operating Segments [Member] | Distribution Segment [Member] | ||||
Net Sales | 1,726 | 1,809 | 2,774 | 2,927 |
Industrial [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (1,177) | (1,188) | (1,886) | (2,081) |
Land Based Transmissions [Member] | ||||
Net Sales | 14,671 | 13,318 | 30,609 | 25,560 |
Land Based Transmissions [Member] | Operating Segments [Member] | Manufacturing Segment [Member] | ||||
Net Sales | 15,256 | 12,326 | 31,543 | 23,710 |
Land Based Transmissions [Member] | Operating Segments [Member] | Distribution Segment [Member] | ||||
Net Sales | 3,445 | 6,497 | 8,051 | 11,602 |
Land Based Transmissions [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (4,030) | (5,505) | (8,985) | (9,752) |
Marine and Propulsion Systems [Member] | ||||
Net Sales | 36,466 | 35,520 | 65,802 | 62,154 |
Marine and Propulsion Systems [Member] | Operating Segments [Member] | Manufacturing Segment [Member] | ||||
Net Sales | 34,262 | 29,861 | 60,077 | 54,148 |
Marine and Propulsion Systems [Member] | Operating Segments [Member] | Distribution Segment [Member] | ||||
Net Sales | 15,427 | 16,659 | 29,971 | 28,222 |
Marine and Propulsion Systems [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (13,223) | (11,000) | (24,246) | (20,216) |
Other [Member] | ||||
Net Sales | 4,702 | 3,345 | 8,309 | 6,098 |
Other [Member] | Operating Segments [Member] | Manufacturing Segment [Member] | ||||
Net Sales | 197 | 26 | 399 | 43 |
Other [Member] | Operating Segments [Member] | Distribution Segment [Member] | ||||
Net Sales | 4,986 | 3,326 | 9,096 | 6,074 |
Other [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | $ (481) | $ (7) | $ (1,186) | $ (19) |
Note F - Stock-based Compensa_2
Note F - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2022 | Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Performance Stock Awards [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 118,100 | 103,600 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 236,300 | 236,300 | 146,600 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 438,900 | 440,900 | 438,900 | 440,900 | |||
Share-Based Payment Arrangement, Expense | $ 366 | $ 219 | $ 596 | $ 435 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 8.38 | $ 8.38 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,718 | $ 1,718 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | ||||||
Restricted Stock [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 177,700 | 44,100 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 309.2 | 262.7 | 309.2 | 262.7 | |||
Share-Based Payment Arrangement, Expense | $ 334 | $ 285 | $ 694 | $ 619 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,648 | 1,648 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 1,669 | $ 1,679 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares) | 0 | 29,800 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years | ||||||
Restricted Stock [Member] | Minimum [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 1 year | ||||||
Restricted Stock [Member] | Maximum [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 72,400 | 67,400 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance (in shares) | 130,900 | 67,400 | 130,900 | 67,400 | |||
Share-Based Payment Arrangement, Expense | $ 132 | $ 92 | $ 224 | $ 92 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 10.94 | $ 10.94 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 951 | $ 951 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 40 | $ 475 |
Note G - Pension and Other Po_3
Note G - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | $ 515 | $ 623 | $ 3 | $ 1,007 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | $ 1 | $ (115) | 3 | $ 2 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Benefit Plan Merger Remeasurement, Reclassification Adjustment from AOCI, after Tax | (1,115) | ||||
Pension Plan [Member] | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 576 | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 387 |
Note G - Pension and Other Po_4
Note G - Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Amortization of actuarial net loss | $ (10) | $ 0 | $ (19) | $ 0 |
Pension Plan [Member] | ||||
Service cost | 102 | 130 | 203 | 269 |
Prior service cost | 8 | 10 | 17 | 20 |
Interest cost | 868 | 681 | 1,736 | 1,347 |
Expected return on plan assets | (1,060) | (1,255) | (2,120) | (2,514) |
Amortization of transition obligation | 9 | 9 | 18 | 18 |
Amortization of prior service cost | 9 | (4) | 18 | (8) |
Amortization of actuarial net loss | 617 | 562 | 1,235 | 1,124 |
Net periodic benefit cost | 553 | 133 | 1,107 | 256 |
Service cost | 102 | 130 | 203 | 269 |
Interest cost | 868 | 681 | 1,736 | 1,347 |
Other Postretirement Benefits Plan [Member] | ||||
Service cost | 2 | 4 | 5 | 8 |
Interest cost | 53 | 35 | 106 | 70 |
Amortization of prior service cost | (69) | (69) | (137) | (138) |
Net periodic benefit cost | (24) | (30) | (45) | (60) |
Service cost | 2 | 4 | 5 | 8 |
Interest cost | $ 53 | $ 35 | $ 106 | $ 70 |
Note H - Income Taxes (Details
Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 175.90% | 131.10% |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 783 | |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 53 | |
Foreign Tax Authority [Member] | ||
Open Tax Year | 2014 2015 2016 2017 2018 2019 2020 2021 | |
Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member] | ||
Open Tax Year | 2019 | |
Domestic Tax Authority [Member] | ||
Open Tax Year | 2017 2018 2019 2020 2021 2022 |
Note I - Intangible Assets (Det
Note I - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year) | 7 years | ||||
Amortization of Intangible Assets | $ 704 | $ 804 | $ 1,402 | $ 1,630 |
Note I - Intangible Assets - In
Note I - Intangible Assets - Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Balance, Definite Intangible Assets Gross Carrying Amount | $ 39,845,000 | |||
Balance, Definite Intangible Assets Accumulated Amortization/Impairment | (26,835,000) | |||
Balance at June 30, Definite Intangible Assets Net Book Value | 13,010,000 | |||
Addition, Definite Intangible Assets Gross Carrying Amount | 9,000 | |||
Addition, Definite Intangible Assets Net Book Value | 9,000 | |||
Reduction, Definite Intangible Assets Gross Carrying Amount | (10,506) | |||
Reduction, Definite Intangible Assets Accumulated Amortization/Impairment | 10,506 | |||
Amortization, Intangible Asset | $ (704,000) | $ (804,000) | (1,402,000) | $ (1,630,000) |
Translation adjustment, Definite Intangible Assets Gross Carrying Amount | 181,000 | |||
Translation adjustment, Definite Intangible Assets Net Book Value | 181,000 | |||
Balance, Definite Intangible Assets Gross Carrying Amount | 29,529,000 | 29,529,000 | ||
Balance, Definite Intangible Assets Accumulated Amortization/Impairment | (17,731,000) | (17,731,000) | ||
Balance at June 30, Definite Intangible Assets Net Book Value | 11,798,000 | 11,798,000 | ||
Customer Relationships [Member] | ||||
Balance at June 30, Definite Intangible Assets Net Book Value | 7,636,000 | |||
Addition, Definite Intangible Assets Net Book Value | 0 | |||
Amortization, Intangible Asset | (650,000) | |||
Translation adjustment, Definite Intangible Assets Net Book Value | 125,000 | |||
Balance at June 30, Definite Intangible Assets Net Book Value | 7,111,000 | 7,111,000 | ||
Technology-Based Intangible Assets [Member] | ||||
Balance at June 30, Definite Intangible Assets Net Book Value | 3,238,000 | |||
Addition, Definite Intangible Assets Net Book Value | 0 | |||
Amortization, Intangible Asset | (562,000) | |||
Translation adjustment, Definite Intangible Assets Net Book Value | 320,000 | |||
Balance at June 30, Definite Intangible Assets Net Book Value | 2,996,000 | 2,996,000 | ||
Trade Names [Member] | ||||
Balance at June 30, Definite Intangible Assets Net Book Value | 972,000 | |||
Addition, Definite Intangible Assets Net Book Value | 0 | |||
Amortization, Intangible Asset | (39,000) | |||
Translation adjustment, Definite Intangible Assets Net Book Value | (265,000) | |||
Balance at June 30, Definite Intangible Assets Net Book Value | 668,000 | 668,000 | ||
Other Intangible Assets [Member] | ||||
Balance at June 30, Definite Intangible Assets Net Book Value | 1,164,000 | |||
Addition, Definite Intangible Assets Net Book Value | 9,000 | |||
Amortization, Intangible Asset | (151,000) | |||
Translation adjustment, Definite Intangible Assets Net Book Value | 1,000 | |||
Balance at June 30, Definite Intangible Assets Net Book Value | $ 1,023,000 | $ 1,023,000 |
Note I - Intangible Assets - Es
Note I - Intangible Assets - Estimated Intangibles Amortization Expense (Details) $ in Thousands | Dec. 30, 2022 USD ($) |
2023 | $ 1,448 |
2024 | 2,796 |
2025 | 2,641 |
2026 | 1,738 |
2027 | 1,073 |
2028 | 1,046 |
Thereafter | $ 1,056 |
Note J - Long-term Debt (Detail
Note J - Long-term Debt (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) | Jan. 27, 2021 | Dec. 30, 2022 USD ($) | Dec. 25, 2020 USD ($) | Jun. 30, 2019 | Jun. 29, 2018 USD ($) | |
Long-Term Debt, Current Maturities, Total | $ 2,000 | $ 2,000 | ||||
Principal Paid on Sale Leaseback Liabilities | 28 | |||||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Bank of Montreal [Member] | ||||||
Derivative, Notional Amount | $ 12,500 | $ 20,000 | ||||
Minimum [Member] | ||||||
Sale Leaseback Transactions, Implied Interest Rate | 7% | |||||
Maximum [Member] | ||||||
Sale Leaseback Transactions, Term (Year) | 5 years | |||||
Sale Leaseback Transactions, Implied Interest Rate | 25% | |||||
The Ninth Amendment [Member] | BMO [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000 | |||||
The Ninth Amendment [Member] | BMO [Member] | Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||
The Ninth Amendment [Member] | BMO [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Total Funded Debt To EBITDA Allowable Ratio | 3.50 | |||||
Fixed Charge Coverage Ratio | 1.10 | |||||
The Ninth Amendment [Member] | BMO [Member] | Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||
Forbearance Agreement [Member] | BMO [Member] | Minimum [Member] | ||||||
EBITDA | $ 2,500 | |||||
Forbearance Agreement [Member] | BMO [Member] | Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |||||
The 2018 Credit Agreement [Member] | BMO [Member] | ||||||
Long-Term Debt, Current Maturities, Total | $ 2,000 | |||||
The 2018 Credit Agreement [Member] | BMO [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument, Interest Rate During Period | 4.73% | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 39,477 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 20,096 | |||||
Term Loan [Member] | The Ninth Amendment [Member] | ||||||
Debt Agreement, Maximum Borrowing Capacity | $ 20,000 | |||||
Term Loan [Member] | The Ninth Amendment [Member] | BMO [Member] | ||||||
Debt Instrument, Covenant, Minimum Tangible Net Worth Plus Half of Net Income | $ 100,000 | |||||
Term Loan [Member] | The Ninth Amendment [Member] | BMO [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | |||||
Term Loan [Member] | The Ninth Amendment [Member] | BMO [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.875% | 3.875% | ||||
Term Loan [Member] | The 2018 Credit Agreement [Member] | BMO [Member] | ||||||
Debt Instrument, Interest Rate During Period | 5.68% | |||||
Unused Revolving Credit Commitment [Member] | The Ninth Amendment [Member] | BMO [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 10% | |||||
Unused Revolving Credit Commitment [Member] | The Ninth Amendment [Member] | BMO [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 15% | |||||
Unused Revolving Credit Commitment [Member] | Forbearance Agreement [Member] | BMO [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 20% |
Note J - Long-term Debt - Long-
Note J - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Jun. 30, 2022 |
Long-term debt | $ 31,927 | $ 36,543 |
Less: current maturities | (2,000) | (2,000) |
Total long-term debt | 29,927 | 34,543 |
Revolving Loan [Member] | ||
Long-term debt | 19,381 | 22,968 |
Term Loan [Member] | ||
Long-term debt | 12,500 | 13,500 |
Other Long-Term Debt [Member] | ||
Long-term debt | $ 46 | $ 75 |
Note K - Shareholders' Equity_2
Note K - Shareholders' Equity (Details Textual) - shares shares in Thousands | 3 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares) | 315 | |
Treasury Stock, Shares, Acquired (in shares) | 0 | 0 |
Note K - Shareholders' Equity -
Note K - Shareholders' Equity - Shareholders' Equity Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 24, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Balance | $ 124,768 | $ 131,188 | $ 131,624 | $ 130,660 | $ 131,188 | $ 130,660 |
Net income (loss) | 1,154 | (1,931) | (3,750) | 1,980 | (777) | (1,770) |
Translation adjustments | 8,392 | (6,290) | (1,701) | (1,938) | 2,064 | (3,639) |
Benefit plan adjustments, net of tax | (515) | 518 | 623 | 384 | 3 | 1,007 |
Unrealized gain (loss) on hedges | (595) | 793 | 735 | 204 | 197 | 939 |
Compensation expense | 856 | 658 | 595 | 625 | ||
Shares (acquired) issued, net | (295) | (168) | (195) | (291) | ||
Balance | 133,765 | 124,768 | 127,931 | 131,624 | 133,765 | 127,931 |
Common Stock [Member] | ||||||
Balance | 41,285 | 42,551 | 41,165 | 40,972 | 42,551 | 40,972 |
Net income (loss) | ||||||
Compensation expense | 856 | 658 | 595 | 625 | ||
Shares (acquired) issued, net | (697) | (1,924) | (169) | (432) | ||
Balance | 41,444 | 41,285 | 41,591 | 41,165 | 41,444 | 41,591 |
Retained Earnings [Member] | ||||||
Balance | 133,002 | 135,031 | 128,856 | 126,936 | 135,031 | 126,936 |
Net income (loss) | 1,139 | (2,029) | (3,836) | 1,920 | ||
Balance | 134,141 | 133,002 | 125,020 | 128,856 | 134,141 | 125,020 |
AOCI Attributable to Parent [Member] | ||||||
Balance | (37,103) | (32,086) | (24,041) | (22,615) | (32,086) | (22,615) |
Translation adjustments | 8,333 | (6,328) | (1,676) | (2,014) | ||
Benefit plan adjustments, net of tax | (515) | 518 | 623 | 384 | ||
Unrealized gain (loss) on hedges | (595) | 793 | 735 | 204 | ||
Balance | (29,880) | (37,103) | (24,359) | (24,041) | (29,880) | (24,359) |
Treasury Stock [Member] | ||||||
Balance | (12,964) | (14,720) | (14,942) | (15,083) | (14,720) | (15,083) |
Shares (acquired) issued, net | 402 | 1,756 | (26) | 141 | ||
Balance | (12,562) | (12,964) | (14,968) | (14,942) | (12,562) | (14,968) |
Noncontrolling Interest [Member] | ||||||
Balance | 548 | 412 | 586 | 450 | 412 | 450 |
Net income (loss) | 15 | 98 | 86 | 60 | ||
Translation adjustments | 59 | 38 | (25) | 76 | ||
Balance | $ 622 | $ 548 | $ 647 | $ 586 | $ 622 | $ 647 |
Note K - Stockholders' Equity -
Note K - Stockholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 24, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Balance | $ 124,768 | $ 131,188 | $ 131,624 | $ 130,660 | $ 131,188 | $ 130,660 |
Translation adjustment during the quarter | 8,392 | (6,290) | (1,701) | (1,938) | 2,064 | (3,639) |
Plan merger remeasurement adjustment | 1,115 | |||||
Balance | 133,765 | 124,768 | 127,931 | 131,624 | 133,765 | 127,931 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Balance | (8,594) | (2,266) | 7,178 | 9,192 | (2,266) | 9,192 |
Translation adjustment during the quarter | 8,333 | (6,328) | (1,676) | (2,014) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Net current period other comprehensive (loss) income | 8,333 | (6,328) | (1,676) | (2,014) | ||
Plan merger remeasurement adjustment | 0 | |||||
Balance | (261) | (8,594) | 5,502 | 7,178 | (261) | 5,502 |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Balance | (31,208) | (31,726) | (31,079) | (31,463) | (31,726) | (31,463) |
Translation adjustment during the quarter | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 600 | 518 | 623 | 384 | ||
Net current period other comprehensive (loss) income | (515) | 518 | 623 | 384 | ||
Plan merger remeasurement adjustment | (1,115) | |||||
Balance | (31,723) | (31,208) | (30,456) | (31,079) | (31,723) | (30,456) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||
Balance | 704 | 355 | (610) | (678) | 355 | (678) |
Translation adjustment during the quarter | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (10) | 349 | 232 | 68 | ||
Net current period other comprehensive (loss) income | (10) | 349 | 232 | 68 | ||
Plan merger remeasurement adjustment | 0 | |||||
Balance | 694 | 704 | (378) | (610) | 694 | (378) |
Accumulated Gain (Loss), Net, Net Investment Hedge [Member] | ||||||
Balance | 1,995 | 1,551 | 470 | 334 | 1,551 | 334 |
Translation adjustment during the quarter | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (585) | 444 | 503 | 136 | ||
Net current period other comprehensive (loss) income | (585) | 444 | 503 | 136 | ||
Plan merger remeasurement adjustment | 0 | |||||
Balance | $ 1,410 | $ 1,995 | $ 973 | $ 470 | $ 1,410 | $ 973 |
Note K - Stockholders' Equity_2
Note K - Stockholders' Equity - Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Dec. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | Sep. 24, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |||
Total amortization | $ 3,643 | $ (3,128) | $ 1,024 | $ (766) | |||||
Plan merger remeasurement adjustment | 1,115 | ||||||||
Income tax expense | 2,489 | 622 | 1,801 | 1,004 | |||||
Net income (loss) | 1,154 | $ (1,931) | (3,750) | $ 1,980 | (777) | (1,770) | |||
Net loss | 1,154 | $ (1,931) | $ (3,750) | $ 1,980 | (777) | (1,770) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||||
Actuarial losses | 608 | [1] | $ 562 | [1] | 1,215 | 1,124 | |||
Transition asset and prior service benefit | (51) | [1] | (64) | [1] | (102) | (128) | |||
Translation | 42 | 10 | 2 | 13 | |||||
Total amortization | 599 | 508 | 1,115 | 1,009 | |||||
Plan merger remeasurement adjustment | (1,115) | (1,115) | |||||||
Income tax expense | 1 | (115) | 3 | 2 | |||||
Net income (loss) | (515) | 623 | 3 | 1,007 | |||||
Net loss | $ (515) | $ 623 | $ 3 | $ 1,007 | |||||
[1]These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G, "Pension and Other Postretirement Benefit Plans" for further details). |
Note L - Restructuring of Ope_3
Note L - Restructuring of Operations (Details Textual) Pure in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 91 Months Ended | ||||||
Dec. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 25, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Restructuring Reserve, Ending Balance | $ 1,023 | $ 1,024 | $ 1,023 | $ 1,023 | |||||
Restructuring Charges, Total | 164 | $ 1,190 | 174 | $ 1,238 | |||||
Proceeds from Sale of Property, Plant, and Equipment, Total | 7,152 | 9,152 | |||||||
Gain (Loss) on Disposition of Assets, Total | 4,203 | 2,939 | |||||||
Property, Plant, and Equipment Reclassified to Assets Held for Sale [Member] | |||||||||
Gain (Loss) on Disposition of Assets, Total | 4,161 | ||||||||
Increase (Decrease) in Assets Held-for-sale | $ 2,801 | ||||||||
Propeller Machining Plant and Office in Switzerland [Member] | |||||||||
Proceeds from Sale of Property, Plant, and Equipment, Total | 7,150 | $ 305 | 9,138 | ||||||
Propeller Machining Plant and Office in Switzerland [Member] | Other Operating Income (Expense) [Member] | |||||||||
Gain (Loss) on Disposition of Assets, Total | 2,939 | ||||||||
Employee Severance [Member] | |||||||||
Restructuring Reserve, Ending Balance | $ 2,200 | ||||||||
Restructuring Reserve, Settled without Cash | 3,200 | ||||||||
Restructuring Charges Additional | 1,000 | 1,000 | 1,000 | ||||||
Restructuring Charges, Total | $ 164 | $ 1,190 | $ 174 | $ 1,238 | $ 16,383 | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 254 | ||||||||
Impairment of Long-Lived Assets to be Disposed of | $ 4,267 |
Note L - Restructuring of Ope_4
Note L - Restructuring of Operations - Roll-forward of Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Accrued restructuring liability | $ 1,024 | |||
Additions | $ 164 | $ 1,190 | 174 | $ 1,238 |
Payments, adjustments and write-offs during the year | (175) | |||
Accrued restructuring liability | $ 1,023 | $ 1,023 |
Note M - Earnings Per Share (De
Note M - Earnings Per Share (Details Textual) - shares | 6 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 438,900 | 440,900 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 309,200 | 262,700 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 130,900 | 67,400 |
Note M - Earnings Per Share - C
Note M - Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 24, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Net loss | $ 1,154 | $ (1,931) | $ (3,750) | $ 1,980 | $ (777) | $ (1,770) |
Less: Net earnings attributable to noncontrolling interest | (15) | (86) | (112) | (144) | ||
Less: Undistributed earnings attributable to unvested shares | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Twin Disc | $ 1,139 | $ (3,836) | $ (889) | $ (1,914) | ||
Weighted average shares outstanding - basic (in shares) | 13,460 | 13,296 | 13,434 | 13,288 | ||
Basic income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.08 | $ (0.29) | $ (0.07) | $ (0.14) | ||
Effect of dilutive stock awards (in shares) | 239 | 0 | 0 | 0 | ||
Weighted average shares outstanding - diluted (in shares) | 13,699 | 13,296 | 13,434 | 13,288 | ||
Diluted income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.08 | $ (0.29) | $ (0.07) | $ (0.14) |
Note N - Lease Obligations - Co
Note N - Lease Obligations - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Amortization of right-of-use assets | $ 156 | $ 168 | $ 311 | $ 331 |
Interest on lease liabilities | 67 | 71 | 132 | 142 |
Operating lease cost | 686 | 698 | 1,397 | 1,391 |
Short-term lease cost | (10) | 37 | 3 | 40 |
Variable lease cost | 67 | 42 | 108 | 81 |
Total lease cost | 966 | 1,016 | 1,952 | 1,985 |
Less: Sublease income | (18) | (19) | (35) | (39) |
Net lease cost | $ 948 | $ 997 | $ 1,917 | $ 1,946 |
Note N - Lease Obligations - Ot
Note N - Lease Obligations - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Operating cash flows from operating leases | $ 777 | $ 737 | $ 1,473 | $ 1,479 |
Operating cash flows from finance leases | 215 | 211 | 420 | 416 |
Financing cash flows from finance leases | 67 | 71 | 132 | 142 |
Right-of-use-assets obtained in exchange for lease obligations: Operating leases | 990 | 232 | 1,518 | 396 |
Right-of-use-assets obtained in exchange for lease obligations: Finance leases | $ 269 | $ 133 | $ 320 | $ 307 |
Weighted average remaining lease term (years): Operating leases (Year) | 8 years 3 months 18 days | 9 years 3 months 18 days | 8 years 3 months 18 days | 9 years 3 months 18 days |
Weighted average remaining lease term (years): Finance lease (Year) | 10 years 9 months 18 days | 11 years 6 months | 10 years 9 months 18 days | 11 years 6 months |
Weighted average discount rate: Operating leases | 7.20% | 7.20% | 7.20% | 7.20% |
Weighted average discount rate: Finance leases | 5.20% | 5.20% | 5.20% | 5.20% |
Note N - Lease Obligations - Fu
Note N - Lease Obligations - Future Minimum Rental Commitments Under Noncancelable Leases (Details) $ in Thousands | Dec. 30, 2022 USD ($) |
2023, Operating Leases | $ 1,507 |
2023, Finance Leases | 877 |
2024, Operating Leases | 2,517 |
2024, Finance Leases | 875 |
2025, Operating Leases | 1,619 |
2025, Finance Leases | 644 |
2026, Operating Leases | 1,434 |
2026, Finance Leases | 578 |
2027, Operating Leases | 1,428 |
2027, Finance Leases | 519 |
Thereafter, Operating Leases | 7,636 |
Thereafter, Finance Leases | 4,448 |
Total future lease payments, Operating Leases | 16,142 |
Total future lease payments, Finance Leases | 7,940 |
Less: Amount representing interest, Operating Leases | (3,321) |
Less: Amount representing interest, Finance Leases | (2,899) |
Present value of future payments, Operating Leases | 12,821 |
Present value of future payments, Finance Leases | $ 5,041 |
Note N - Lease Obligations - _2
Note N - Lease Obligations - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 30, 2022 | Jun. 30, 2022 |
Operating lease right-of-use assets | $ 12,807 | $ 12,685 |
Operating lease liabilities | 10,278 | 10,575 |
Property, Plant and Equipment, Net [Member] | ||
Finance lease right-of-use assets | 4,563 | 4,805 |
Accrued Liabilities [Member] | ||
Operating lease liabilities | 2,543 | 2,127 |
Finance lease liabilities | 615 | 576 |
Lease Obligation [Member] | ||
Operating lease liabilities | 10,278 | 10,575 |
Other Noncurrent Liabilities [Member] | ||
Finance lease liabilities | $ 4,426 | $ 4,440 |
Note O - Derivative Financial_3
Note O - Derivative Financial Instruments (Details Textual) $ in Thousands, € in Millions | 6 Months Ended | 12 Months Ended | ||||||
Dec. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 24, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2021 EUR (€) | Jun. 29, 2018 USD ($) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 133,765 | $ 131,188 | $ 124,768 | $ 127,931 | $ 131,624 | $ 130,660 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within 12 Months | 273 | |||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 694 | 355 | $ 704 | $ (378) | $ (610) | $ (678) | ||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 694 | 355 | ||||||
Interest Rate Swap [Member] | ||||||||
Derivative, Number of Instruments Held, Total | 1 | |||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Bank of Montreal [Member] | ||||||||
Derivative, Notional Amount | $ 12,500 | $ 20,000 | ||||||
Euro Denominated Revolving Loan [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative, Notional Amount | € | € 6.5 | |||||||
Derivative, Gain (Loss) on Derivative, Net, Total | $ (1,410) | $ (1,551) |
Note O - Derivative Financial_4
Note O - Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 30, 2022 | Jun. 30, 2022 |
Accounts Payable and Accrued Liabilities [Member] | ||
Derivative Liabilities, Current | $ 273 | $ 68 |
Other Noncurrent Liabilities [Member] | ||
Derivative Liabilities, Noncurrent | $ 211 | $ 77 |
Note O - Derivative Financial_5
Note O - Derivative Financial Instruments - Impact of the Company's Derivative Instruments on the Consolidated Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 24, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | |
Unrealized gain (loss) on hedges | $ (595) | $ 793 | $ 735 | $ 204 | $ 197 | $ 939 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Unrealized Gain (Loss) on Hedges [Member] | Cash Flow Hedging [Member] | ||||||
Unrealized gain (loss) on hedges | (338) | 232 | (1) | 300 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | ||||||
Gain (loss) on derivative instruments | 79 | 98 | 162 | 187 | ||
Euro Denominated Revolving Loan [Member] | Designated as Hedging Instrument [Member] | Unrealized Gain (Loss) on Hedges [Member] | Net Investment Hedging [Member] | ||||||
Unrealized gain (loss) on hedges | $ (585) | $ 503 | $ (141) | $ 639 |