Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 29, 2024 | Apr. 23, 2024 | |
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 | Q3 | |
Document Fiscal Year Focus | 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 29, 2024 | |
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 | 222 East Erie Street, Suite 400 | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53202 | |
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 | 13,996,503 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 29, 2023 | Sep. 29, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Jun. 30, 2022 |
Current assets: | ||||||||
Cash | $ 23,843 | $ 13,263 | $ 14,024 | |||||
Trade accounts receivable, net | 40,950 | 54,760 | 44,438 | |||||
Inventories | 129,845 | 131,930 | 136,153 | |||||
Assets held for sale | 2,968 | 2,968 | 2,968 | |||||
Prepaid expenses | 10,471 | 8,459 | 10,025 | |||||
Other | 10,451 | 8,326 | 8,341 | |||||
Total current assets | 218,528 | 219,706 | 215,949 | |||||
Property, plant and equipment, net | 40,606 | 38,650 | 40,700 | |||||
Right-of-use assets operating leases | 14,498 | 13,133 | 12,415 | |||||
Intangible assets, net | 10,157 | 12,637 | 11,239 | |||||
Deferred income taxes | 2,210 | 2,244 | 2,542 | |||||
Other assets | 2,755 | 2,811 | 2,668 | |||||
Total assets | 288,754 | 289,181 | 285,513 | |||||
Current liabilities: | ||||||||
Current maturities of long-term debt | 2,000 | 2,010 | 2,000 | |||||
Accounts payable | 33,230 | 36,499 | 29,726 | |||||
Accrued liabilities | 63,406 | 61,586 | 56,886 | |||||
Total current liabilities | 98,636 | 100,095 | 88,612 | |||||
Long-term debt | 15,042 | 16,617 | 29,276 | |||||
Lease obligations | 12,638 | 10,811 | 9,897 | |||||
Accrued retirement benefits | 6,707 | 7,608 | 10,315 | |||||
Deferred income taxes | 2,965 | 3,280 | 3,391 | |||||
Other long-term liabilities | 5,822 | 5,253 | 5,403 | |||||
Total liabilities | 141,810 | 143,664 | 146,894 | |||||
Twin Disc shareholders' equity: | ||||||||
Preferred shares authorized: 200,000; issued: none; no par value | 0 | 0 | 0 | |||||
Common shares authorized: 30,000,000; issued: 14,632,802; no par value | 40,428 | 42,855 | 42,145 | |||||
Retained earnings | 122,759 | 120,299 | 113,524 | |||||
Accumulated other comprehensive loss | (7,094) | (5,570) | (5,212) | |||||
Equity before treasury stock | 156,093 | 157,584 | 150,457 | |||||
Less treasury stock, at cost (638,712 and 814,734 shares, respectively) | 9,797 | 12,491 | 12,527 | |||||
Total Twin Disc shareholders' equity | 146,296 | 145,093 | 137,930 | |||||
Noncontrolling interest | 648 | 424 | 689 | |||||
Total equity | 146,944 | $ 145,910 | $ 140,175 | 145,517 | 138,619 | $ 133,765 | $ 124,768 | $ 131,188 |
Total liabilities and equity | $ 288,754 | $ 289,181 | $ 285,513 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Mar. 29, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Preferred Shares, Authorized (in shares) | 200,000 | 200,000 | 200,000 |
Preferred Shares, Issued (in shares) | 0 | 0 | 0 |
Preferred Shares, No Par Value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common shares, authorized (in shares) | 30,000,000 | 30,000,000 | 30,000,000 |
Common shares, shares issued (in shares) | 14,632,802 | 14,632,802 | 14,632,802 |
Common shares, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Treasury Stock, Common, Shares (in shares) | 638,712 | 814,734 | 819,398 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Net sales | $ 74,161 | $ 73,772 | $ 210,709 | $ 193,036 |
Gross profit | 20,940 | 19,265 | 58,233 | 49,585 |
Marketing, engineering and administrative expenses | 17,199 | 14,626 | 51,268 | 45,688 |
Restructuring expenses | 139 | 33 | 207 | 208 |
Other operating expense (income) | 0 | 1 | 0 | (4,149) |
Income from operations | 3,602 | 4,605 | 6,758 | 7,838 |
Interest expense | 263 | 522 | 1,049 | 1,682 |
Other (income) expense, net | (959) | 178 | (649) | 13 |
Non-operating income (expense) | (696) | 700 | 400 | 1,695 |
Income before income taxes and noncontrolling interest | 4,298 | 3,905 | 6,358 | 6,143 |
Income tax expense | 398 | 548 | 2,606 | 2,350 |
Net income | 3,900 | 3,357 | 3,752 | 3,793 |
Less: Net earnings attributable to noncontrolling interest, net of tax | (78) | (76) | (173) | (188) |
Net income attributable to Twin Disc | $ 3,822 | $ 3,281 | $ 3,579 | $ 3,605 |
Dividends per share (in dollars per share) | $ 0.04 | $ 0 | $ 0.08 | $ 0 |
Income per share data: | ||||
Basic income per share attributable to Twin Disc common shareholders (in dollars per share) | 0.28 | 0.24 | 0.26 | 0.27 |
Diluted income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.27 | $ 0.24 | $ 0.26 | $ 0.26 |
Weighted average shares outstanding data: | ||||
Basic shares outstanding (in shares) | 13,742 | 13,504 | 13,663 | 13,455 |
Diluted shares outstanding (in shares) | 13,904 | 13,662 | 13,852 | 13,608 |
Comprehensive income | ||||
Net income | $ 3,900 | $ 3,357 | $ 3,752 | $ 3,793 |
Benefit plan adjustments, net of income taxes of $10, $(1), $2 and $(5), respectively | (191) | (29) | (470) | (1,240) |
Translation adjustment during the quarter | (3,084) | 1,014 | (930) | 3,116 |
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 196 | (224) | (73) | (26) |
Comprehensive income | 821 | 4,118 | 2,279 | 5,643 |
Less: Comprehensive income attributable to noncontrolling interest | 34 | 67 | 224 | 277 |
Comprehensive income attributable to Twin Disc | 787 | 4,051 | 2,055 | 5,366 |
Service Excluding Boat Management System Product Line [Member] | ||||
Cost of goods sold | 53,221 | 54,507 | 149,377 | 143,451 |
Boat Management System Product Line [Member] | ||||
Cost of goods sold | $ 0 | $ 0 | $ 3,099 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Benefit plan adjustments, income taxes | $ 10 | $ (1) | $ 2 | $ (5) |
Unrealized loss on cash flow hedge, income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,752 | $ 3,793 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,497 | 6,936 |
Gain on sale of assets | (87) | (4,237) |
Provision for deferred income taxes | 239 | (1,462) |
Stock compensation expense and other non-cash changes, net | 2,242 | 2,355 |
Net change in operating assets and liabilities | 5,531 | (526) |
Net cash provided by operating activities | 22,273 | 6,859 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property, plant, and equipment | (7,598) | (6,783) |
Proceeds from sale of fixed assets | 0 | 7,177 |
Other, net | (167) | 199 |
Net cash (used) provided by investing activities | (7,765) | 593 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under revolving loan arrangements | 66,661 | 65,862 |
Repayments of revolving loan arrangements | (66,661) | (69,823) |
Repayments of other long-term debt | (1,510) | (1,534) |
Dividends paid to shareholders | (1,119) | 0 |
Payments of finance lease obligations | (663) | (231) |
Payments of withholding taxes on stock compensation | (1,791) | (463) |
Net cash used by financing activities | (5,083) | (6,189) |
Effect of exchange rate changes on cash | 1,155 | 240 |
Net change in cash | 10,580 | 1,503 |
Cash: | ||
Beginning of period | 13,263 | 12,521 |
End of period | 23,843 | 14,024 |
Boat Management System Product Line [Member] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss on sale of boat management product line and related inventory | $ 3,099 | $ 0 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 9 Months Ended |
Mar. 29, 2024 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | TWIN DISC, INCORPORATED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) 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, 2023. 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 Change in Accounting Method During the fourth 2023, not 10% second 20% fourth 2023, 2023, 10 Under the new accounting method, actuarial gains and losses are recognized in net periodic benefit cost through a modified mark-to-market (expense) benefit upon annual remeasurement in the fourth not 20% 10% 20% See Notes G, K, M and P for further information regarding the impact of the Accounting change on the Company’s current and prior consolidated financial statements. Recently Issued Not In December 2023, 2023 09, Improvements to Income Tax Disclosures 2023 09” five 2023 09 December 15, 2024. Recently Adopted Accounting Standards In June 2016, 2016 13 2018 19, 2019 04, 2019 05, 2019 10 326 326 December 15, 2019, December 15, 2022 ( 2024 326 not Special Note Regarding Smaller Reporting Company Status Under SEC Release 33 10513; 34 83550, |
Note B - Inventories
Note B - Inventories | 9 Months Ended |
Mar. 29, 2024 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | B. Inventories The major classes of inventories were as follows: March 29, 2024 June 30, 2023 Inventories: Finished parts $ 64,191 $ 66,956 Work in process 24,698 23,374 Raw materials 40,956 41,600 $ 129,845 $ 131,930 In the first 2024, one not second 2024. |
Note C - Warranty
Note C - Warranty | 9 Months Ended |
Mar. 29, 2024 | |
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 March 29, 2024 March 31, 2023: For the Quarter Ended For the Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Reserve balance, beginning of period $ 4,488 $ 4,145 $ 3,476 $ 3,329 Current period expense and adjustments 1,656 371 4,377 2,052 Payments or credits to customers (1,236 ) (510 ) (2,948 ) (1,381 ) Translation (13 ) 12 (10 ) 18 Reserve balance, end of period $ 4,895 $ 4,018 $ 4,895 $ 4,018 The current portion of the warranty accrual ($4,052 and $3,503 as of March 29, 2024 March 31, 2023, March 29, 2024 March 31, 2023, |
Note D - Contingencies
Note D - Contingencies | 9 Months Ended |
Mar. 29, 2024 | |
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 | 9 Months Ended |
Mar. 29, 2024 | |
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 Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Net sales Manufacturing segment sales $ 62,640 $ 64,353 $ 175,545 $ 169,607 Distribution segment sales 37,022 33,839 107,117 83,732 Inter/Intra segment elimination – manufacturing (19,929 ) (18,531 ) (58,908 ) (46,373 ) Inter/Intra segment elimination – distribution (5,572 ) (5,889 ) (13,045 ) (13,930 ) $ 74,161 $ 73,772 $ 210,709 $ 193,036 Net income attributable to Twin Disc Manufacturing segment net income $ 5,662 $ 6,480 $ 9,298 $ 13,321 Distribution segment net income 3,248 2,053 7,427 4,412 Corporate and eliminations (5,088 ) (5,252 ) (13,146 ) (14,128 ) $ 3,822 $ 3,281 $ 3,579 $ 3,605 Assets March 29, 2024 June 30, 2023 Manufacturing segment assets $ 385,832 $ 381,668 Distribution segment assets 73,586 69,213 Corporate assets and elimination of intercompany assets (170,664 ) (161,700 ) $ 288,754 $ 289,181 Disaggregated revenue: The following tables presents details deemed most relevant to the users of the financial statements for the quarters ended March 29, 2024 March 31, 2023. Net sales by product group for the quarter ended March 29, 2024 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 5,779 $ 1,084 $ (631 ) $ 6,232 Land-based transmissions 16,701 9,286 (6,898 ) 19,089 Marine and propulsion systems 40,160 23,052 (17,968 ) 45,244 Other - 3,600 (4 ) 3,596 Total $ 62,640 $ 37,022 $ (25,501 ) $ 74,161 Net sales by product group for the quarter ended March 31, 2023 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 7,076 $ 1,548 $ (1,321 ) $ 7,303 Land-based transmissions 16,785 8,692 (5,902 ) 19,575 Marine and propulsion systems 40,492 19,867 (16,505 ) 43,854 Other - 3,732 (692 ) 3,040 Total $ 64,353 $ 33,839 $ (24,420 ) $ 73,772 Net Sales by product group for the three March 29, 2024 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 16,773 $ 3,670 $ (1,994 ) $ 18,449 Land-based transmissions 46,385 29,910 (22,765 ) 53,530 Marine and propulsion systems 112,387 63,430 (47,166 ) 128,651 Other - 10,107 (28 ) 10,079 Total $ 175,545 $ 107,117 $ (71,953 ) $ 210,709 Net Sales by product group for the three March 31, 2023 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 20,732 $ 4,322 $ (3,208 ) $ 21,846 Land-based transmissions 48,329 16,743 (14,888 ) 50,184 Marine and propulsion systems 100,546 49,838 (40,751 ) 109,633 Other - 12,829 (1,456 ) 11,373 Total $ 169,607 $ 83,732 $ (60,303 ) $ 193,036 |
Note F - Stock-based Compensati
Note F - Stock-based Compensation | 9 Months Ended |
Mar. 29, 2024 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | F. Stock-Based Compensation Performance Stock Awards ( PSA ) During the first three 2024 2023, 2024 three June 30, 2026. The fiscal 2023 three June 30, 2025. There were 329.9 and 437.9 unvested PSAs outstanding at March 29, 2024 March 31, 2023, March 29, 2024 March 31, 2023, three March 29, 2024 March 31, 2023, March 29, 2024 March 29, 2024, 2024 2023 March 29, 2024 March 31, 2023 Performance Stock Unit Awards ( PSUA ) The PSUAs entitle an individual to shares of common stock of the Company or cash in lieu of shares of Company common stock if specific terms and conditions or restrictions are met through a specified date. During the first three 2024 2023 2024 three June 30, 2026. There were 10.5 and 0 unvested PSUAs outstanding at March 29, 2024 March 31, 2023, March 29, 2024 March 31, 2023, three March 29, 2024 March 31, 2023, March 29, 2024 March 29, 2024, 2024 March 29, 2024 March 31, 2023 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 3 first three 2024 2023, March 29, 2024 March 31, 2023, three March 29, 2024 March 31, 2023, March 29, 2024 March 31, 2023, three March 29, 2024 March 31, 2023, March 29, 2024 March 31, 2023 March 29, 2024, three Restricted Stock Unit Awards ( RSU ) The RSUs entitles an individual to shares of common stock of the Company or cash in lieu of shares of Company common stock if specific terms and conditions or restrictions are met through a specified date, generally three first three 2024 2023, March 29, 2024 March 31, 2023, March 29, 2024 March 31, 2023, three March 29, 2024 March 31, 2023, March 29, 2024 March 31, 2023 March 29, 2024 March 29, 2024, three |
Note G - Pension and Other Post
Note G - Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Mar. 29, 2024 | |
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 As discussed in Note A, during the fourth 2023, fourth The components of the net periodic benefit cost for the defined benefit pension plans and the other postretirement benefit plan are as follows: For the Quarter Ended For the Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Pension Benefits: Service cost $ 95 $ 106 $ 283 $ 309 Prior service cost - 8 - 25 Interest cost 896 912 2,688 2,648 Expected return on plan assets (1,049 ) (1,053 ) (3,145 ) (3,173 ) Amortization of transition obligation 10 9 29 27 Amortization of prior service cost 9 9 26 27 Amortization of actuarial net loss 15 639 47 1,873 Net periodic benefit (gain) cost $ (24 ) $ 630 $ (72 ) $ 1,736 Postretirement Benefits: Service cost $ 2 $ 2 $ 6 $ 7 Interest cost 48 53 143 159 Amortization of prior service cost (22 ) (69 ) (66 ) (206 ) Amortization of actuarial net loss (155 ) (10 ) (465 ) (29 ) Net periodic benefit gain $ (127 ) $ (24 ) $ (382 ) $ (69 ) 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 (income) expense, net. The Company expects to contribute approximately $662 to its pension plans in fiscal 2024. March 29, 2024, The Company has reclassified ($191) (net of $10 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended March 29, 2024, March 31, 2023. three March 29, 2024, three March 31, 2023. |
Note H - Income Taxes
Note H - Income Taxes | 9 Months Ended |
Mar. 29, 2024 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | H. Income Taxes The Company computes its effective tax rate each quarter consistent with the requirements of ASC 740 270 25. no may 740 270 30 30. The Company recorded an overall effective tax rate of 9.3% and 14.0% for the quarters ended March 29, 2024 March 31, 2023, three March 29, 2024 March 31, 2023. March 29, 2024 March 31, 2023. March 29, 2024 $834 Year-to-date domestic earnings were ($8,557) and ($2,063), with corresponding income tax expense of $7 and $47 for the three March 29, 2024 March 31, 2023. |
Note I - Intangible Assets
Note I - Intangible Assets | 9 Months Ended |
Mar. 29, 2024 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | I. Intangible Assets As of March 29, 2024, 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, 2023 $ 31,925 $ (19,288 ) $ 12,637 $ 6,553 $ 2,422 $ 668 $ 2,994 Addition 89 - 89 - - - 89 Reduction (631 ) 631 - - - - - Amortization - (2,458 ) (2,458 ) (935 ) (923 ) (39 ) (561 ) Translation adjustment (111 ) - (111 ) (66 ) (135 ) 105 (15 ) Balance at March 29, 2024 $ 31,272 $ (21,115 ) $ 10,157 $ 5,552 $ 1,364 $ 734 $ 2,507 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 5 Intangible amortization expense was $822 and $738 for the quarters ended March 29, 2024, March 31, 2023, three March 29, 2024, March 31, 2023, 2024 five Fiscal Year 2024 $ 945 2025 3,274 2026 2,290 2027 1,531 2028 1,382 2029 735 Total $ 10,157 |
Note J - Long-term Debt and Sub
Note J - Long-term Debt and Subsequent Event | 9 Months Ended |
Mar. 29, 2024 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | J. Long-Term Debt and Subsequent Event Long-term debt at March 29, 2024 June 30, 2023 March 29, 2024 June 30, 2023 Credit Agreement Debt Revolving loans (expire April 2027) $ 7,019 $ 7,094 Term loan (due April 2027) 10,000 11,500 Other 23 33 Subtotal 17,042 18,627 Less: current maturities (2,000 ) (2,010 ) Total long-term debt $ 15,042 $ 16,617 Credit Agreement Debt: June 29, 2018, “2016 not may, not April 1, 2027, may not April 1, 2027. Under the Credit Agreement as amended, interest rates are based on either the secured overnight financing rate (“SOFR”) or the euro interbank offered rate (the “EURIBO Rate”). Loans 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 Credit Agreement, as amended, requires the Company to meet certain financial covenants. Specifically, the Company’s Total Funded Debt to EBITDA ratio may not 1.00, may not 1.00. may not 50% June 30, 2023. Borrowings under the Credit Agreement are secured by substantially all of the Company’s personal property, including accounts receivable, inventory, machinery and equipment, and intellectual property. The Company has also pledged 100% of its equity interests in certain domestic subsidiaries and 65% of its equity interests in certain foreign subsidiaries. The Company also entered into a Collateral Assignment of Rights under Purchase Agreement for its acquisition of Veth Propulsion. To effect these security interests, the Company entered into various amendment and assignment agreements that consent to the assignment of certain agreements previously entered into between the Company and the Bank of Montreal in connection with the 2016 not The Company has also entered into a Deposit Account Control Agreement with the Bank, reflecting the Bank’s security interest in deposit accounts the Company maintains with the Bank. The Bank may not Upon the occurrence of an Event of Default, BMO may 1 2 3 may three On April 1, 2024, No. 10 first 2026 third 2025 first 2026 The Company intends to use the increased borrowing capacity under the Credit Agreement to help finance its previously announced proposed acquisition of Katsa Oy by TD Finland Holding Oy, a wholly-owned subsidiary of the Company. The Tenth Amendment specifically permits the Company to use Revolving Loans for the Katsa Oy acquisition. In addition, in determining whether the Company is in compliance with its Total Funded Debt/EBITDA Ratio, the Company’s EBITDA will include transaction expenses of up to $0.6 million for the Katsa Oy acquisition, as well as pro-forma EBITDA of Katsa Oy as permitted by the Bank. The Tenth Amendment also extended the Credit Agreement through April 1, 2027 April 1, 2027. June 30, 2025, March 4, 2026. The Tenth Amendment also increased the Applicable Margins under the Credit Agreement for purposes of determining interest rates on Revolving Loans, Letters of Credit, Term Loans, and the Unused Revolving Credit Commitment. Prior to the Tenth Amendment, the Applicable Margins were between 1.25% and 2.75% for Revolving Loans and Letters of Credit; 1.375% and 2.875% for Term Loans; and .10% .15% .15% .3% The Tenth Amendment also increased the amount of Restricted Payments that the Company may The Company remains in compliance with its liquidity and other covenants. As of March 29, 2024, Other: three five During the quarters ended March 29, 2024, As of March 29, 2024, The Company’s borrowings described above approximate fair value at March 29, 2024 June 30, 2023. 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 March 29, 2024, 815, During the fourth 2021, |
Note K - Shareholders' Equity
Note K - Shareholders' Equity | 9 Months Ended |
Mar. 29, 2024 | |
Notes to Financial Statements | |
Equity [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 March 29, 2024 not March 29, 2024 March 31, 2023. As of July 1, 2022, See Notes A, G, M, and P for further information regarding the impact of the Accounting change on the Company’s prior year consolidated financial statements. The following is a reconciliation of the Company’s equity balances for the three 2024 2023: Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Loss Stock Interest Equity Balance, June 30, 2023 $ 42,855 $ 120,299 $ (5,570 ) $ (12,491 ) $ 424 $ 145,517 Net (loss) income (1,173 ) 90 (1,083 ) Translation adjustments (3,096 ) 60 (3,036 ) Benefit plan adjustments, net of tax (171 ) (171 ) Unrealized gain on hedges, net of tax 216 216 Compensation expense 495 495 Shares (acquired) issued, net (3,911 ) 2,148 (1,763 ) Balance, September 29, 2023 39,439 119,126 (8,621 ) (10,343 ) 574 140,175 Net income 930 5 935 Dividends paid to shareholders (560 ) (560 ) Translation adjustments 5,155 35 5,190 Benefit plan adjustments, net of tax (108 ) (108 ) Unrealized loss on hedges, net of tax (485 ) (485 ) Compensation expense 772 772 Shares (acquired) issued, net (550 ) 541 (9 ) Balance, December 29, 2023 39,661 119,496 (4,059 ) (9,802 ) 614 145,910 Net income 3,822 78 3,900 Dividends paid to shareholders (559 ) (559 ) Translation adjustments (3,040 ) (44 ) (3,084 ) Benefit plan adjustments, net of tax (191 ) (191 ) Unrealized gain on cash flow hedge, net of tax 196 196 Compensation expense 791 791 Shares (acquired) issued, net (24 ) 5 (19 ) Balance, March 29, 2024 $ 40,428 $ 122,759 $ (7,094 ) $ (9,797 ) $ 648 $ 146,944 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Loss Stock Interest Equity Balance, June 30, 2022 $ 42,551 $ 109,919 $ (6,974 ) $ (14,720 ) $ 412 $ 131,188 Net (loss) income (1,422 ) 98 (1,324 ) Translation adjustments (6,328 ) 38 (6,290 ) Benefit plan adjustments, net of tax (89 ) (89 ) Unrealized gain on hedges, net of tax 793 793 Compensation expense 658 658 Shares (acquired) issued, net (1,924 ) 1,756 (168 ) Balance, September 30, 2022 41,285 108,497 (12,598 ) (12,964 ) 548 124,768 Net income 1,746 15 1,761 Translation adjustments 8,333 59 8,392 Benefit plan adjustments, net of tax (1,122 ) (1,122 ) Unrealized loss on hedges, net of tax (595 ) (595 ) Compensation expense 856 856 Shares (acquired) issued, net (697 ) 402 (295 ) Balance, December 30, 2022 41,444 110,243 (5,982 ) (12,562 ) 622 133,765 Net income 3,281 76 3,357 Translation adjustments 1,023 (9 ) 1,014 Benefit plan adjustments, net of tax (29 ) (29 ) Unrealized loss on cash flow hedge, net of tax (224 ) (224 ) Compensation expense 736 736 Shares (acquired) issued, net (35 ) 35 - Balance, March 31, 2023 $ 42,145 $ 113,524 $ (5,212 ) $ (12,527 ) $ 689 $ 138,619 Reconciliations for the changes in accumulated other comprehensive loss, net of tax, by component for the quarters ended March 29, 2024 March 31, 2023 Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance, June 30, 2023 $ (1,582 ) $ (5,948 ) $ 688 $ 1,272 Translation adjustment during the quarter (3,096 ) - - - Amounts reclassified from accumulated other comprehensive loss - (171 ) (6 ) 222 Net current period other comprehensive (loss) income (3,096 ) (171 ) (6 ) 222 Balance, September 29, 2023 (4,678 ) (6,119 ) 682 1,494 Translation adjustment during the quarter 5,155 - - - Amounts reclassified from accumulated other comprehensive loss - (108 ) (183 ) (302 ) Net current period other comprehensive income (loss) 5,155 (108 ) (183 ) (302 ) Balance at December 29, 2023 477 (6,227 ) 499 1,192 Translation adjustment during the quarter (3,040 ) - - - Amounts reclassified from accumulated other comprehensive loss - (191 ) 40 156 Net current period other comprehensive (loss) income (3,040 ) (191 ) 40 156 Balance at March 29, 2024 $ (2,563 ) $ (6,418 ) $ 539 $ 1,348 Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance, June 30, 2022 $ (2,266 ) $ (6,614 ) $ 356 $ 1,550 Translation adjustment during the quarter (6,328 ) - - - Amounts reclassified from accumulated other comprehensive loss - (89 ) 657 136 Net current period other comprehensive (loss) income (6,328 ) (89 ) 657 136 Balance, September 30, 2022 (8,594 ) (6,703 ) 1,013 1,686 Translation adjustment during the quarter 8,333 - - - Amounts reclassified from accumulated other comprehensive loss - (7 ) (10 ) (585 ) Plan merger adjustment - (1,115 ) - - Net current period other comprehensive income (loss) 8,333 (1,122 ) (10 ) (585 ) Balance at December 30, 2022 (261 ) (7,825 ) 1,003 1,101 Translation adjustment during the quarter 1,023 - - - Amounts reclassified from accumulated other comprehensive loss - (29 ) (133 ) (91 ) Net current period other comprehensive income (loss) 1,023 (29 ) (133 ) (91 ) Balance at March 31, 2023 $ 762 $ (7,854 ) $ 870 $ 1,010 Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended March 29, 2024 Amount Reclassified Amount Reclassified Quarter Ended Three Quarters Ended March 29, 2024 March 29, 2024 Changes in benefit plan items Actuarial losses $ (198 ) (a) $ (461 ) (a) Transition asset and prior service benefit (3 ) (a) (11 ) (a) Total amortization (201 ) (472 ) Income tax expense 10 2 Total reclassification net of tax $ (191 ) $ (470 ) Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended March 31, 2023 Amount Reclassified Amount Reclassified Quarter Ended Three Quarters Ended March 31, 2023 March 31, 2023 Changes in benefit plan items Actuarial gains $ 630 (a) $ 1,853 (a) Transition asset and prior service benefit (51 ) (a) (152 ) (a) Mark-to-market adjustment (607 ) (1,821 ) Plan merger remeasurement adjustment - (1,115 ) Total amortization (28 ) (1,235 ) Income taxes (1 ) (5 ) Total reclassification net of tax $ (29 ) $ (1,240 ) (a) These accumulated other comprehensive loss 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 - Assets Held for Sale
Note L - Assets Held for Sale | 9 Months Ended |
Mar. 29, 2024 | |
Notes to Financial Statements | |
Assets Held-for-Sale [Text Block] | L. 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. Such actions required the Company to reclassify these assets from Property, Plant and Equipment to Assets Held for Sale, at fair value less costs to sell, or net book value, whichever is lower. Fair value was determined using real estate broker estimates and would be classified as Level 3 fourth 2021. In the first 2023, 3 In the second 2023, In the first 2024, $2.1 October 30, 2023. |
Note M - Earnings Per Share
Note M - Earnings Per Share | 9 Months Ended |
Mar. 29, 2024 | |
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 As discussed in Note A, during the fourth 2023, fourth The components of basic and diluted earnings per share were as follows: For the Quarter Ended For the Three Quarters Ended As Adjusted As Adjusted March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Basic: Net income $ 3,900 $ 3,357 $ 3,752 $ 3,793 Less: Net earnings attributable to noncontrolling interest (78 ) (76 ) (173 ) (188 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income attributable to Twin Disc 3,822 3,281 3,579 3,605 Weighted average shares outstanding - basic 13,742 13,504 13,663 13,455 Basic Income Per Share: Net earnings per share - basic $ 0.28 $ 0.24 $ 0.26 $ 0.27 Diluted: Net income $ 3,900 $ 3,357 $ 3,752 $ 3,793 Less: Net earnings attributable to noncontrolling interest (78 ) (76 ) (173 ) (188 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income attributable to Twin Disc 3,822 3,281 3,579 3,605 Weighted average shares outstanding - basic 13,742 13,504 13,663 13,455 Effect of dilutive stock awards 162 158 189 153 Weighted average shares outstanding - diluted 13,904 13,662 13,852 13,608 Diluted Income Per Share: Net earnings per share - diluted $ 0.27 $ 0.24 $ 0.26 $ 0.26 The following potential common shares were excluded from diluted EPS for the three March 29, 2024 The following potential common shares were excluded from diluted EPS for the three March 31, 2023 |
Note N - Lease Liabilities
Note N - Lease Liabilities | 9 Months Ended |
Mar. 29, 2024 | |
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 following table provides a summary of leases recorded on the condensed consolidated balance sheet. Balance Sheet Location March 29, 2024 June 30, 2023 Lease Assets Operating lease right-of-use assets Right-of-use assets operating leases $ 14,498 $ 13,133 Finance lease right-of-use assets Property, plant and equipment, net 4,845 4,427 Lease Liabilities Operating lease liabilities Accrued liabilities $ 1,957 $ 2,343 Operating lease liabilities Lease obligations 12,638 10,811 Finance lease liabilities Accrued liabilities 628 643 Finance lease liabilities Other long-term liabilities 4,542 4,314 The components of lease expense were as follows: For the Quarter Ended For the Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Finance lease cost: Amortization of right-of-use assets $ 206 $ 187 $ 603 $ 498 Interest on lease liabilities 76 87 227 219 Operating lease cost 941 852 2,716 2,250 Short-term lease cost 1 2 9 5 Variable lease cost 101 94 301 202 Total lease cost 1,325 1,222 3,856 3,174 Less: Sublease income (20 ) (18 ) (61 ) (53 ) Net lease cost $ 1,305 $ 1,204 $ 3,795 $ 3,121 Other information related to leases was as follows: For the Quarter Ended For the Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 951 $ 873 $ 2,822 $ 2,268 Operating cash flows from finance leases 76 138 225 270 Financing cash flows from finance leases 192 73 663 231 Right-of-use-assets obtained in exchange for lease obligations: Operating leases 3,551 218 3,739 1,736 Finance leases 227 47 883 367 Weighted average remaining lease term (years): Operating leases 9.3 8.8 Finance lease 9.3 11.3 Weighted average discount rate: Operating leases 8.2 % 7.2 % Finance leases 5.9 % 5.2 % Approximate future minimum rental commitments under non-cancellable leases as of March 29, 2024 Operating Leases Finance Leases 2024 $ 766 $ 248 2025 2,828 877 2026 2,288 828 2027 2,023 775 2028 1,972 695 2029 1,965 513 Thereafter 9,844 2,674 Total future lease payments 21,686 6,610 Less: Amount representing interest (7,091 ) (1,440 ) Present value of future payments $ 14,595 $ 5,170 |
Note O - Derivative Financial I
Note O - Derivative Financial Instruments | 9 Months Ended |
Mar. 29, 2024 | |
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 volatility arising from risks relating to interest rates and foreign currency exchange rates. The Company does not no The Company reports all derivative instruments on its condensed 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 March 29, 2024, 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 condensed consolidated statements of operations and comprehensive income. 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 gains related to cash flow hedging activities that were included in accumulated other comprehensive loss were $539 and $688 as of March 29, 2024, June 30, 2023, The Company estimates that $230 of net unrealized losses related to cash flow hedging activities included in accumulated other comprehensive loss will be reclassified into earnings within the next twelve Derivatives Designated as Net Investment Hedges The Company is exposed to foreign currency exchange rate risk related to its investment in net assets in foreign countries. During the fourth 2021, €13,000, March 29, 2024 June 30, 2023, Fair Value of Derivative Instruments The fair value of derivative instruments included in the condensed consolidated balance sheets were as follows: Balance Sheet Location March 29, 2024 June 30, 2023 Derivative designated as hedge: Interest rate swap Other current assets $ 217 $ 292 Interest rate swap Other noncurrent assets 112 187 The impact of the Company’s derivative instruments on the condensed consolidated statements of operations and comprehensive income for the quarters ended March 29, 2024 March 31, 2023, Statement of Comprehensive For the Quarter Ended For the Three Quarters Ended Income Location March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Derivative designated as hedge: Interest rate swap Interest expense $ 62 $ 76 $ 200 $ 238 Interest rate swap Unrealized gain (loss) on hedges 40 (133 ) (148 ) 206 Net investment hedge Unrealized gain (loss) on hedges 156 (91 ) 75 (232 ) |
Note P - Impact of Accounting M
Note P - Impact of Accounting Method Change | 9 Months Ended |
Mar. 29, 2024 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | P. IMPACT OF ACCOUNTING METHOD CHANGE The following tables summarize the effects of the Accounting change described in Note A on the Company’s condensed consolidated statement of operations and comprehensive income, statement of cash flows and statement of changes in equity for the quarter ended and the three March 31, 2023 March 31, 2023. CONDENSED CONSOLIDATED STATEMENT OF OPERATION AND COMPREHENSIVE INCOME For the Quarter Ended For the Three Quarters Ended March 31, 2023 March 31, 2023 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method Net sales $ 73,772 $ - $ 73,772 $ 193,036 $ - $ 193,036 Cost of goods sold 54,507 - 54,507 143,451 - 143,451 Gross profit 19,265 - 19,265 49,585 - 49,585 Marketing, engineering and administrative expenses 14,626 - 14,626 45,688 - 45,688 Restructuring expenses 33 - 33 208 - 208 Other operating expense (income) 1 - 1 (4,149 ) - (4,149 ) Income from operations 4,605 - 4,605 7,838 - 7,838 Other expense (income): Interest expense 522 - 522 1,682 - 1,682 Other expense (income), net 785 (607 ) 178 1,834 (1,821 ) 13 1,307 (607 ) 700 3,516 (1,821 ) 1,695 Income before income taxes and noncontrolling interest 3,298 607 3,905 4,322 1,821 6,143 Income tax expense 548 - 548 2,350 - 2,350 Net income 2,750 607 3,357 1,972 1,821 3,793 Less: Net earnings attributable to noncontrolling interest, net of tax (76 ) - (76 ) (188 ) - (188 ) Net income attributable to Twin Disc $ 2,674 $ 607 $ 3,281 $ 1,784 $ 1,821 $ 3,605 Income per share data: Basic income per share attributable to Twin Disc common shareholders $ 0.20 $ 0.04 $ 0.24 $ 0.13 $ 0.14 $ 0.27 Diluted income per share attributable to Twin Disc common shareholders $ 0.20 $ 0.04 $ 0.24 $ 0.13 $ 0.13 $ 0.26 Weighted average shares outstanding data: Basic shares outstanding 13,504 - 13,504 13,455 - 13,455 Diluted shares outstanding 13,662 - 13,662 13,608 - 13,608 Comprehensive income Net income $ 2,750 $ 607 $ 3,357 $ 1,972 $ 1,821 $ 3,793 Benefit plan adjustments, net of income taxes of $ 1 5 1 5 578 (607 ) (29 ) 581 (1,821 ) (1,240 ) Foreign currency translation adjustment 1,014 - 1,014 3,116 - 3,116 Unrealized loss on hedges, net of income taxes of $ 0 0 (224 ) - (224 ) (26 ) - (26 ) Comprehensive income 4,118 - 4,118 5,643 - 5,643 Less: Comprehensive income attributable to noncontrolling interest 67 - 67 277 - 277 Comprehensive income attributable to Twin Disc $ 4,051 $ - $ 4,051 $ 5,366 $ - $ 5,366 CONDENSED CONSOLIDATED CONDENSED BALANCE SHEET March 31, 2023 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method ASSETS Current assets: Cash $ 14,024 $ - $ 14,024 Trade accounts receivable, net 44,438 - 44,438 Inventories 136,153 - 136,153 Assets held for sale 2,968 - 2,968 Prepaid expenses 10,025 - 10,025 Other 8,341 - 8,341 Total current assets 215,949 - 215,949 Property, plant and equipment, net 40,700 - 40,700 Right-of-use assets operating leases 12,415 - 12,415 Intangible assets, net 11,239 - 11,239 Deferred income taxes 2,542 - 2,542 Other assets 2,668 - 2,668 Total assets $ 285,513 $ - $ 285,513 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 2,000 $ - $ 2,000 Accounts payable 29,726 - 29,726 Accrued liabilities 56,886 - 56,886 Total current liabilities 88,612 - 88,612 Long-term debt 29,276 - 29,276 Lease obligations 9,897 - 9,897 Accrued retirement benefits 10,315 - 10,315 Deferred income taxes 3,391 - 3,391 Other long-term liabilities 5,403 - 5,403 Total liabilities 146,894 - 146,894 Twin Disc shareholders' equity: Preferred shares authorized: 200,000 none no - - - Common shares authorized: 30,000,000 14,632,802 no 42,145 - 42,145 Retained earnings 136,815 (23,291 ) 113,524 Accumulated other comprehensive (loss) income (28,503 ) 23,291 (5,212 ) 150,457 - 150,457 Less treasury stock, at cost ( 819,398 12,527 - 12,527 Total Twin Disc shareholders' equity 137,930 - 137,930 Noncontrolling interest 689 - 689 Total equity 138,619 - 138,619 Total liabilities and equity $ 285,513 $ - $ 285,513 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the Three Quarters Ended March 31, 2023 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,972 $ 1,821 $ 3,793 Adjustments to reconcile net income to net cash provided by activities: Depreciation and amortization 6,936 - 6,936 Gain on sale of assets (4,237 ) - (4,237 ) Provision for deferred income taxes (1,462 ) - (1,462 ) Stock compensation expense 2,355 - 2,355 Net change in operating assets and liabilities 1,295 (1,821 ) (526 ) Net cash provided by operating activities 6,859 - 6,859 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property, plant, and equipment (6,783 ) - (6,783 ) Proceeds from sale of fixed assets 7,177 - 7,177 Proceeds on note receivable - - - Other, net 199 - 199 Net cash provided by investing activities 593 - 593 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings under revolving loan arrangements 65,862 - 65,862 Repayments of revolving loan arrangements (69,823 ) - (69,823 ) Repayments of other long-term debt (1,534 ) - (1,534 ) Payments of finance lease obligations (231 ) - (231 ) Payments of withholding taxes on stock compensation (463 ) - (463 ) Net cash used by financing activities (6,189 ) - (6,189 ) Effect of exchange rate changes on cash 240 - 240 Net change in cash 1,503 - 1,503 Cash: Beginning of period 12,521 - 12,521 End of period $ 14,024 $ - $ 14,024 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the Three Quarters Ended March 31, 2023 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method Retained earnings Balance at June 30, 2022 135,031 (25,112 ) 109,919 Net income attributable to Twin Disc 1,784 1,821 3,605 Balance at March 31, 2023 $ 136,815 $ (23,291 ) $ 113,524 Accumulated other comprehensive (loss) income Balance at June 30, 2022 (32,086 ) 25,112 (6,974 ) Translation adjustments 3,028 - 3,028 Benefit plan adjustments, net of tax 581 (1,821 ) (1,240 ) Unrealized loss on hedges, net of tax (26 ) - (26 ) Balance at March 31, 2023 $ (28,503 ) $ 23,291 $ (5,212 ) |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Mar. 29, 2024 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | Item 5. Other Information None. |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Note B - Inventories (Tables)
Note B - Inventories (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 29, 2024 June 30, 2023 Inventories: Finished parts $ 64,191 $ 66,956 Work in process 24,698 23,374 Raw materials 40,956 41,600 $ 129,845 $ 131,930 |
Note C - Warranty (Tables)
Note C - Warranty (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Reserve balance, beginning of period $ 4,488 $ 4,145 $ 3,476 $ 3,329 Current period expense and adjustments 1,656 371 4,377 2,052 Payments or credits to customers (1,236 ) (510 ) (2,948 ) (1,381 ) Translation (13 ) 12 (10 ) 18 Reserve balance, end of period $ 4,895 $ 4,018 $ 4,895 $ 4,018 |
Note E - Business Segments (Tab
Note E - Business Segments (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Net sales Manufacturing segment sales $ 62,640 $ 64,353 $ 175,545 $ 169,607 Distribution segment sales 37,022 33,839 107,117 83,732 Inter/Intra segment elimination – manufacturing (19,929 ) (18,531 ) (58,908 ) (46,373 ) Inter/Intra segment elimination – distribution (5,572 ) (5,889 ) (13,045 ) (13,930 ) $ 74,161 $ 73,772 $ 210,709 $ 193,036 Net income attributable to Twin Disc Manufacturing segment net income $ 5,662 $ 6,480 $ 9,298 $ 13,321 Distribution segment net income 3,248 2,053 7,427 4,412 Corporate and eliminations (5,088 ) (5,252 ) (13,146 ) (14,128 ) $ 3,822 $ 3,281 $ 3,579 $ 3,605 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Assets March 29, 2024 June 30, 2023 Manufacturing segment assets $ 385,832 $ 381,668 Distribution segment assets 73,586 69,213 Corporate assets and elimination of intercompany assets (170,664 ) (161,700 ) $ 288,754 $ 289,181 |
Revenue from External Customers by Products and Services [Table Text Block] | Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 5,779 $ 1,084 $ (631 ) $ 6,232 Land-based transmissions 16,701 9,286 (6,898 ) 19,089 Marine and propulsion systems 40,160 23,052 (17,968 ) 45,244 Other - 3,600 (4 ) 3,596 Total $ 62,640 $ 37,022 $ (25,501 ) $ 74,161 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 7,076 $ 1,548 $ (1,321 ) $ 7,303 Land-based transmissions 16,785 8,692 (5,902 ) 19,575 Marine and propulsion systems 40,492 19,867 (16,505 ) 43,854 Other - 3,732 (692 ) 3,040 Total $ 64,353 $ 33,839 $ (24,420 ) $ 73,772 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 16,773 $ 3,670 $ (1,994 ) $ 18,449 Land-based transmissions 46,385 29,910 (22,765 ) 53,530 Marine and propulsion systems 112,387 63,430 (47,166 ) 128,651 Other - 10,107 (28 ) 10,079 Total $ 175,545 $ 107,117 $ (71,953 ) $ 210,709 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 20,732 $ 4,322 $ (3,208 ) $ 21,846 Land-based transmissions 48,329 16,743 (14,888 ) 50,184 Marine and propulsion systems 100,546 49,838 (40,751 ) 109,633 Other - 12,829 (1,456 ) 11,373 Total $ 169,607 $ 83,732 $ (60,303 ) $ 193,036 |
Note G - Pension and Other Po_2
Note G - Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Pension Benefits: Service cost $ 95 $ 106 $ 283 $ 309 Prior service cost - 8 - 25 Interest cost 896 912 2,688 2,648 Expected return on plan assets (1,049 ) (1,053 ) (3,145 ) (3,173 ) Amortization of transition obligation 10 9 29 27 Amortization of prior service cost 9 9 26 27 Amortization of actuarial net loss 15 639 47 1,873 Net periodic benefit (gain) cost $ (24 ) $ 630 $ (72 ) $ 1,736 Postretirement Benefits: Service cost $ 2 $ 2 $ 6 $ 7 Interest cost 48 53 143 159 Amortization of prior service cost (22 ) (69 ) (66 ) (206 ) Amortization of actuarial net loss (155 ) (10 ) (465 ) (29 ) Net periodic benefit gain $ (127 ) $ (24 ) $ (382 ) $ (69 ) |
Note I - Intangible Assets (Tab
Note I - Intangible Assets (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
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, 2023 $ 31,925 $ (19,288 ) $ 12,637 $ 6,553 $ 2,422 $ 668 $ 2,994 Addition 89 - 89 - - - 89 Reduction (631 ) 631 - - - - - Amortization - (2,458 ) (2,458 ) (935 ) (923 ) (39 ) (561 ) Translation adjustment (111 ) - (111 ) (66 ) (135 ) 105 (15 ) Balance at March 29, 2024 $ 31,272 $ (21,115 ) $ 10,157 $ 5,552 $ 1,364 $ 734 $ 2,507 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year 2024 $ 945 2025 3,274 2026 2,290 2027 1,531 2028 1,382 2029 735 Total $ 10,157 |
Note J - Long-term Debt and S_2
Note J - Long-term Debt and Subsequent Event (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | March 29, 2024 June 30, 2023 Credit Agreement Debt Revolving loans (expire April 2027) $ 7,019 $ 7,094 Term loan (due April 2027) 10,000 11,500 Other 23 33 Subtotal 17,042 18,627 Less: current maturities (2,000 ) (2,010 ) Total long-term debt $ 15,042 $ 16,617 |
Note K - Shareholders' Equity (
Note K - Shareholders' Equity (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
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 Loss Stock Interest Equity Balance, June 30, 2023 $ 42,855 $ 120,299 $ (5,570 ) $ (12,491 ) $ 424 $ 145,517 Net (loss) income (1,173 ) 90 (1,083 ) Translation adjustments (3,096 ) 60 (3,036 ) Benefit plan adjustments, net of tax (171 ) (171 ) Unrealized gain on hedges, net of tax 216 216 Compensation expense 495 495 Shares (acquired) issued, net (3,911 ) 2,148 (1,763 ) Balance, September 29, 2023 39,439 119,126 (8,621 ) (10,343 ) 574 140,175 Net income 930 5 935 Dividends paid to shareholders (560 ) (560 ) Translation adjustments 5,155 35 5,190 Benefit plan adjustments, net of tax (108 ) (108 ) Unrealized loss on hedges, net of tax (485 ) (485 ) Compensation expense 772 772 Shares (acquired) issued, net (550 ) 541 (9 ) Balance, December 29, 2023 39,661 119,496 (4,059 ) (9,802 ) 614 145,910 Net income 3,822 78 3,900 Dividends paid to shareholders (559 ) (559 ) Translation adjustments (3,040 ) (44 ) (3,084 ) Benefit plan adjustments, net of tax (191 ) (191 ) Unrealized gain on cash flow hedge, net of tax 196 196 Compensation expense 791 791 Shares (acquired) issued, net (24 ) 5 (19 ) Balance, March 29, 2024 $ 40,428 $ 122,759 $ (7,094 ) $ (9,797 ) $ 648 $ 146,944 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Loss Stock Interest Equity Balance, June 30, 2022 $ 42,551 $ 109,919 $ (6,974 ) $ (14,720 ) $ 412 $ 131,188 Net (loss) income (1,422 ) 98 (1,324 ) Translation adjustments (6,328 ) 38 (6,290 ) Benefit plan adjustments, net of tax (89 ) (89 ) Unrealized gain on hedges, net of tax 793 793 Compensation expense 658 658 Shares (acquired) issued, net (1,924 ) 1,756 (168 ) Balance, September 30, 2022 41,285 108,497 (12,598 ) (12,964 ) 548 124,768 Net income 1,746 15 1,761 Translation adjustments 8,333 59 8,392 Benefit plan adjustments, net of tax (1,122 ) (1,122 ) Unrealized loss on hedges, net of tax (595 ) (595 ) Compensation expense 856 856 Shares (acquired) issued, net (697 ) 402 (295 ) Balance, December 30, 2022 41,444 110,243 (5,982 ) (12,562 ) 622 133,765 Net income 3,281 76 3,357 Translation adjustments 1,023 (9 ) 1,014 Benefit plan adjustments, net of tax (29 ) (29 ) Unrealized loss on cash flow hedge, net of tax (224 ) (224 ) Compensation expense 736 736 Shares (acquired) issued, net (35 ) 35 - Balance, March 31, 2023 $ 42,145 $ 113,524 $ (5,212 ) $ (12,527 ) $ 689 $ 138,619 |
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, June 30, 2023 $ (1,582 ) $ (5,948 ) $ 688 $ 1,272 Translation adjustment during the quarter (3,096 ) - - - Amounts reclassified from accumulated other comprehensive loss - (171 ) (6 ) 222 Net current period other comprehensive (loss) income (3,096 ) (171 ) (6 ) 222 Balance, September 29, 2023 (4,678 ) (6,119 ) 682 1,494 Translation adjustment during the quarter 5,155 - - - Amounts reclassified from accumulated other comprehensive loss - (108 ) (183 ) (302 ) Net current period other comprehensive income (loss) 5,155 (108 ) (183 ) (302 ) Balance at December 29, 2023 477 (6,227 ) 499 1,192 Translation adjustment during the quarter (3,040 ) - - - Amounts reclassified from accumulated other comprehensive loss - (191 ) 40 156 Net current period other comprehensive (loss) income (3,040 ) (191 ) 40 156 Balance at March 29, 2024 $ (2,563 ) $ (6,418 ) $ 539 $ 1,348 Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance, June 30, 2022 $ (2,266 ) $ (6,614 ) $ 356 $ 1,550 Translation adjustment during the quarter (6,328 ) - - - Amounts reclassified from accumulated other comprehensive loss - (89 ) 657 136 Net current period other comprehensive (loss) income (6,328 ) (89 ) 657 136 Balance, September 30, 2022 (8,594 ) (6,703 ) 1,013 1,686 Translation adjustment during the quarter 8,333 - - - Amounts reclassified from accumulated other comprehensive loss - (7 ) (10 ) (585 ) Plan merger adjustment - (1,115 ) - - Net current period other comprehensive income (loss) 8,333 (1,122 ) (10 ) (585 ) Balance at December 30, 2022 (261 ) (7,825 ) 1,003 1,101 Translation adjustment during the quarter 1,023 - - - Amounts reclassified from accumulated other comprehensive loss - (29 ) (133 ) (91 ) Net current period other comprehensive income (loss) 1,023 (29 ) (133 ) (91 ) Balance at March 31, 2023 $ 762 $ (7,854 ) $ 870 $ 1,010 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified Amount Reclassified Quarter Ended Three Quarters Ended March 29, 2024 March 29, 2024 Changes in benefit plan items Actuarial losses $ (198 ) (a) $ (461 ) (a) Transition asset and prior service benefit (3 ) (a) (11 ) (a) Total amortization (201 ) (472 ) Income tax expense 10 2 Total reclassification net of tax $ (191 ) $ (470 ) Amount Reclassified Amount Reclassified Quarter Ended Three Quarters Ended March 31, 2023 March 31, 2023 Changes in benefit plan items Actuarial gains $ 630 (a) $ 1,853 (a) Transition asset and prior service benefit (51 ) (a) (152 ) (a) Mark-to-market adjustment (607 ) (1,821 ) Plan merger remeasurement adjustment - (1,115 ) Total amortization (28 ) (1,235 ) Income taxes (1 ) (5 ) Total reclassification net of tax $ (29 ) $ (1,240 ) |
Note M - Earnings Per Share (Ta
Note M - Earnings Per Share (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Quarter Ended For the Three Quarters Ended As Adjusted As Adjusted March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Basic: Net income $ 3,900 $ 3,357 $ 3,752 $ 3,793 Less: Net earnings attributable to noncontrolling interest (78 ) (76 ) (173 ) (188 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income attributable to Twin Disc 3,822 3,281 3,579 3,605 Weighted average shares outstanding - basic 13,742 13,504 13,663 13,455 Basic Income Per Share: Net earnings per share - basic $ 0.28 $ 0.24 $ 0.26 $ 0.27 Diluted: Net income $ 3,900 $ 3,357 $ 3,752 $ 3,793 Less: Net earnings attributable to noncontrolling interest (78 ) (76 ) (173 ) (188 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income attributable to Twin Disc 3,822 3,281 3,579 3,605 Weighted average shares outstanding - basic 13,742 13,504 13,663 13,455 Effect of dilutive stock awards 162 158 189 153 Weighted average shares outstanding - diluted 13,904 13,662 13,852 13,608 Diluted Income Per Share: Net earnings per share - diluted $ 0.27 $ 0.24 $ 0.26 $ 0.26 |
Note N - Lease Liabilities (Tab
Note N - Lease Liabilities (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
Notes Tables | |
Assets and Liabilities, Lessee [Table Text Block] | Balance Sheet Location March 29, 2024 June 30, 2023 Lease Assets Operating lease right-of-use assets Right-of-use assets operating leases $ 14,498 $ 13,133 Finance lease right-of-use assets Property, plant and equipment, net 4,845 4,427 Lease Liabilities Operating lease liabilities Accrued liabilities $ 1,957 $ 2,343 Operating lease liabilities Lease obligations 12,638 10,811 Finance lease liabilities Accrued liabilities 628 643 Finance lease liabilities Other long-term liabilities 4,542 4,314 |
Lease, Cost [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Finance lease cost: Amortization of right-of-use assets $ 206 $ 187 $ 603 $ 498 Interest on lease liabilities 76 87 227 219 Operating lease cost 941 852 2,716 2,250 Short-term lease cost 1 2 9 5 Variable lease cost 101 94 301 202 Total lease cost 1,325 1,222 3,856 3,174 Less: Sublease income (20 ) (18 ) (61 ) (53 ) Net lease cost $ 1,305 $ 1,204 $ 3,795 $ 3,121 |
Operating and Finance Leases, Other Disclosures [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 951 $ 873 $ 2,822 $ 2,268 Operating cash flows from finance leases 76 138 225 270 Financing cash flows from finance leases 192 73 663 231 Right-of-use-assets obtained in exchange for lease obligations: Operating leases 3,551 218 3,739 1,736 Finance leases 227 47 883 367 Weighted average remaining lease term (years): Operating leases 9.3 8.8 Finance lease 9.3 11.3 Weighted average discount rate: Operating leases 8.2 % 7.2 % Finance leases 5.9 % 5.2 % |
Schedule of Future Minimum Rental Payments for Operating Leases and Finance Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases 2024 $ 766 $ 248 2025 2,828 877 2026 2,288 828 2027 2,023 775 2028 1,972 695 2029 1,965 513 Thereafter 9,844 2,674 Total future lease payments 21,686 6,610 Less: Amount representing interest (7,091 ) (1,440 ) Present value of future payments $ 14,595 $ 5,170 |
Note O - Derivative Financial_2
Note O - Derivative Financial Instruments (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Balance Sheet Location March 29, 2024 June 30, 2023 Derivative designated as hedge: Interest rate swap Other current assets $ 217 $ 292 Interest rate swap Other noncurrent assets 112 187 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Statement of Comprehensive For the Quarter Ended For the Three Quarters Ended Income Location March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Derivative designated as hedge: Interest rate swap Interest expense $ 62 $ 76 $ 200 $ 238 Interest rate swap Unrealized gain (loss) on hedges 40 (133 ) (148 ) 206 Net investment hedge Unrealized gain (loss) on hedges 156 (91 ) 75 (232 ) |
Note P - Impact of Accounting_2
Note P - Impact of Accounting Method Change (Tables) | 9 Months Ended |
Mar. 29, 2024 | |
Notes Tables | |
Accounting Standards Update and Change in Accounting Principle [Table Text Block] | For the Quarter Ended For the Three Quarters Ended March 31, 2023 March 31, 2023 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method Net sales $ 73,772 $ - $ 73,772 $ 193,036 $ - $ 193,036 Cost of goods sold 54,507 - 54,507 143,451 - 143,451 Gross profit 19,265 - 19,265 49,585 - 49,585 Marketing, engineering and administrative expenses 14,626 - 14,626 45,688 - 45,688 Restructuring expenses 33 - 33 208 - 208 Other operating expense (income) 1 - 1 (4,149 ) - (4,149 ) Income from operations 4,605 - 4,605 7,838 - 7,838 Other expense (income): Interest expense 522 - 522 1,682 - 1,682 Other expense (income), net 785 (607 ) 178 1,834 (1,821 ) 13 1,307 (607 ) 700 3,516 (1,821 ) 1,695 Income before income taxes and noncontrolling interest 3,298 607 3,905 4,322 1,821 6,143 Income tax expense 548 - 548 2,350 - 2,350 Net income 2,750 607 3,357 1,972 1,821 3,793 Less: Net earnings attributable to noncontrolling interest, net of tax (76 ) - (76 ) (188 ) - (188 ) Net income attributable to Twin Disc $ 2,674 $ 607 $ 3,281 $ 1,784 $ 1,821 $ 3,605 Income per share data: Basic income per share attributable to Twin Disc common shareholders $ 0.20 $ 0.04 $ 0.24 $ 0.13 $ 0.14 $ 0.27 Diluted income per share attributable to Twin Disc common shareholders $ 0.20 $ 0.04 $ 0.24 $ 0.13 $ 0.13 $ 0.26 Weighted average shares outstanding data: Basic shares outstanding 13,504 - 13,504 13,455 - 13,455 Diluted shares outstanding 13,662 - 13,662 13,608 - 13,608 Comprehensive income Net income $ 2,750 $ 607 $ 3,357 $ 1,972 $ 1,821 $ 3,793 Benefit plan adjustments, net of income taxes of $ 1 5 1 5 578 (607 ) (29 ) 581 (1,821 ) (1,240 ) Foreign currency translation adjustment 1,014 - 1,014 3,116 - 3,116 Unrealized loss on hedges, net of income taxes of $ 0 0 (224 ) - (224 ) (26 ) - (26 ) Comprehensive income 4,118 - 4,118 5,643 - 5,643 Less: Comprehensive income attributable to noncontrolling interest 67 - 67 277 - 277 Comprehensive income attributable to Twin Disc $ 4,051 $ - $ 4,051 $ 5,366 $ - $ 5,366 March 31, 2023 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method ASSETS Current assets: Cash $ 14,024 $ - $ 14,024 Trade accounts receivable, net 44,438 - 44,438 Inventories 136,153 - 136,153 Assets held for sale 2,968 - 2,968 Prepaid expenses 10,025 - 10,025 Other 8,341 - 8,341 Total current assets 215,949 - 215,949 Property, plant and equipment, net 40,700 - 40,700 Right-of-use assets operating leases 12,415 - 12,415 Intangible assets, net 11,239 - 11,239 Deferred income taxes 2,542 - 2,542 Other assets 2,668 - 2,668 Total assets $ 285,513 $ - $ 285,513 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 2,000 $ - $ 2,000 Accounts payable 29,726 - 29,726 Accrued liabilities 56,886 - 56,886 Total current liabilities 88,612 - 88,612 Long-term debt 29,276 - 29,276 Lease obligations 9,897 - 9,897 Accrued retirement benefits 10,315 - 10,315 Deferred income taxes 3,391 - 3,391 Other long-term liabilities 5,403 - 5,403 Total liabilities 146,894 - 146,894 Twin Disc shareholders' equity: Preferred shares authorized: 200,000 none no - - - Common shares authorized: 30,000,000 14,632,802 no 42,145 - 42,145 Retained earnings 136,815 (23,291 ) 113,524 Accumulated other comprehensive (loss) income (28,503 ) 23,291 (5,212 ) 150,457 - 150,457 Less treasury stock, at cost ( 819,398 12,527 - 12,527 Total Twin Disc shareholders' equity 137,930 - 137,930 Noncontrolling interest 689 - 689 Total equity 138,619 - 138,619 Total liabilities and equity $ 285,513 $ - $ 285,513 For the Three Quarters Ended March 31, 2023 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,972 $ 1,821 $ 3,793 Adjustments to reconcile net income to net cash provided by activities: Depreciation and amortization 6,936 - 6,936 Gain on sale of assets (4,237 ) - (4,237 ) Provision for deferred income taxes (1,462 ) - (1,462 ) Stock compensation expense 2,355 - 2,355 Net change in operating assets and liabilities 1,295 (1,821 ) (526 ) Net cash provided by operating activities 6,859 - 6,859 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property, plant, and equipment (6,783 ) - (6,783 ) Proceeds from sale of fixed assets 7,177 - 7,177 Proceeds on note receivable - - - Other, net 199 - 199 Net cash provided by investing activities 593 - 593 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings under revolving loan arrangements 65,862 - 65,862 Repayments of revolving loan arrangements (69,823 ) - (69,823 ) Repayments of other long-term debt (1,534 ) - (1,534 ) Payments of finance lease obligations (231 ) - (231 ) Payments of withholding taxes on stock compensation (463 ) - (463 ) Net cash used by financing activities (6,189 ) - (6,189 ) Effect of exchange rate changes on cash 240 - 240 Net change in cash 1,503 - 1,503 Cash: Beginning of period 12,521 - 12,521 End of period $ 14,024 $ - $ 14,024 For the Three Quarters Ended March 31, 2023 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method Retained earnings Balance at June 30, 2022 135,031 (25,112 ) 109,919 Net income attributable to Twin Disc 1,784 1,821 3,605 Balance at March 31, 2023 $ 136,815 $ (23,291 ) $ 113,524 Accumulated other comprehensive (loss) income Balance at June 30, 2022 (32,086 ) 25,112 (6,974 ) Translation adjustments 3,028 - 3,028 Benefit plan adjustments, net of tax 581 (1,821 ) (1,240 ) Unrealized loss on hedges, net of tax (26 ) - (26 ) Balance at March 31, 2023 $ (28,503 ) $ 23,291 $ (5,212 ) |
Note B - Inventories (Details T
Note B - Inventories (Details Textual) - Boat Management System Product Line [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 29, 2024 | Dec. 29, 2023 | Sep. 29, 2023 | |
Inventory Write-down | $ 2.1 | $ 2.1 | |
UNITED STATES | |||
Inventory Write-down | $ 1.6 |
Note B - Inventories - Inventor
Note B - Inventories - Inventories (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Finished parts | $ 64,191 | $ 66,956 | |
Work in process | 24,698 | 23,374 | |
Raw materials | 40,956 | 41,600 | |
Total inventories | $ 129,845 | $ 131,930 | $ 136,153 |
Note C - Warranty (Details Text
Note C - Warranty (Details Textual) - USD ($) $ in Thousands | Mar. 29, 2024 | Mar. 31, 2023 |
Product Warranty Accrual, Current | $ 4,052 | $ 3,503 |
Product Warranty Accrual, Noncurrent | $ 843 | $ 515 |
Note C - Warranty - Warranty (D
Note C - Warranty - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Reserve balance, beginning of period | $ 4,488 | $ 4,145 | $ 3,476 | $ 3,329 |
Current period expense and adjustments | 1,656 | 371 | 4,377 | 2,052 |
Payments or credits to customers | (1,236) | (510) | (2,948) | (1,381) |
Translation | (13) | 12 | (10) | 18 |
Reserve balance, end of period | $ 4,895 | $ 4,018 | $ 4,895 | $ 4,018 |
Note E - Business Segments (Det
Note E - Business Segments (Details Textual) | 3 Months Ended |
Mar. 29, 2024 | |
Number of Reportable Segments | 2 |
Note E - Business Segments - Re
Note E - Business Segments - Revenues by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Net sales | $ 74,161 | $ 73,772 | $ 210,709 | $ 193,036 |
Manufacturing segment net income | 3,822 | 3,281 | 3,579 | 3,605 |
Intersegment Eliminations [Member] | ||||
Net sales | (25,501) | (24,420) | (71,953) | (60,303) |
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member] | ||||
Manufacturing segment net income | (5,088) | (5,252) | (13,146) | (14,128) |
Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net sales | 62,640 | 64,353 | 175,545 | 169,607 |
Manufacturing segment net income | 5,662 | 6,480 | 9,298 | 13,321 |
Manufacturing Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | (19,929) | (18,531) | (58,908) | (46,373) |
Distribution Segment [Member] | Operating Segments [Member] | ||||
Net sales | 37,022 | 33,839 | 107,117 | 83,732 |
Manufacturing segment net income | 3,248 | 2,053 | 7,427 | 4,412 |
Distribution Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | $ (5,572) | $ (5,889) | $ (13,045) | $ (13,930) |
Note E - Business Segments - As
Note E - Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Segment Assets | $ 288,754 | $ 289,181 | $ 285,513 |
Operating Segments [Member] | Manufacturing Segment [Member] | |||
Segment Assets | 385,832 | 381,668 | |
Operating Segments [Member] | Distribution Segment [Member] | |||
Segment Assets | 73,586 | 69,213 | |
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member] | |||
Segment Assets | $ (170,664) | $ (161,700) |
Note E - Business Segments - Ne
Note E - Business Segments - Net Sales by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Net Sales | $ 74,161 | $ 73,772 | $ 210,709 | $ 193,036 |
Intersegment Eliminations [Member] | ||||
Net Sales | (25,501) | (24,420) | (71,953) | (60,303) |
Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 62,640 | 64,353 | 175,545 | 169,607 |
Manufacturing Segment [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (19,929) | (18,531) | (58,908) | (46,373) |
Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 37,022 | 33,839 | 107,117 | 83,732 |
Distribution Segment [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (5,572) | (5,889) | (13,045) | (13,930) |
Industrial [Member] | ||||
Net Sales | 6,232 | 7,303 | 18,449 | 21,846 |
Industrial [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (631) | (1,321) | (1,994) | (3,208) |
Industrial [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 5,779 | 7,076 | 16,773 | 20,732 |
Industrial [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 1,084 | 1,548 | 3,670 | 4,322 |
Land Based Transmissions [Member] | ||||
Net Sales | 19,089 | 19,575 | 53,530 | 50,184 |
Land Based Transmissions [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (6,898) | (5,902) | (22,765) | (14,888) |
Land Based Transmissions [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 16,701 | 16,785 | 46,385 | 48,329 |
Land Based Transmissions [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 9,286 | 8,692 | 29,910 | 16,743 |
Marine and Propulsion Systems [Member] | ||||
Net Sales | 45,244 | 43,854 | 128,651 | 109,633 |
Marine and Propulsion Systems [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (17,968) | (16,505) | (47,166) | (40,751) |
Marine and Propulsion Systems [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 40,160 | 40,492 | 112,387 | 100,546 |
Marine and Propulsion Systems [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 23,052 | 19,867 | 63,430 | 49,838 |
Other [Member] | ||||
Net Sales | 3,596 | 3,040 | 10,079 | 11,373 |
Other [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (4) | (692) | (28) | (1,456) |
Other [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Other [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | $ 3,600 | $ 3,732 | $ 10,107 | $ 12,829 |
Note F - Stock-based Compensa_2
Note F - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 29, 2023 | |
Performance Stock Awards [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 119,300 | 118,100 | ||||
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) | 238,700 | 238,700 | 234,200 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 329,900 | 437,900 | 329,900 | 437,900 | ||
Share-Based Payment Arrangement, Expense | $ 326 | $ 307 | $ 704 | $ 903 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 11.48 | $ 11.48 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 1,652 | $ 1,652 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | $ 0 | ||||
Performance Stock Unit Awards [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 10,500 | 0 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 20,900 | 20,900 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 10,500 | 0 | 10,500 | 0 | ||
Share-Based Payment Arrangement, Expense | $ 11 | $ 0 | $ 29 | $ 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 12.15 | $ 12.15 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 98 | $ 98 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | 0 | ||||
Restricted Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 117,200 | 180,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 246,600 | 246,600 | 308,600 | |||
Share-Based Payment Arrangement, Expense | $ 330 | 313 | $ 953 | $ 1,007 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 1,568 | $ 1,568 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 2,196 | $ 1,699 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares) | 2,400 | 0 | ||||
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) | 7,100 | 72,400 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 135,000 | 130,200 | 135,000 | 130,200 | ||
Share-Based Payment Arrangement, Expense | $ 124 | $ 116 | $ 372 | $ 340 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 10.97 | $ 10.97 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 412 | $ 412 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 25 | $ 40 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years |
Note G - Pension and Other Po_3
Note G - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | $ 191 | $ 29 | $ 470 | $ 1,240 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | 10 | $ (1) | 2 | $ (5) |
Pension Plan [Member] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 662 | 662 | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 634 |
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 | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Pension Plan [Member] | ||||
Service cost | $ 95 | $ 106 | $ 283 | $ 309 |
Prior service cost | 0 | 8 | 0 | 25 |
Interest cost | 896 | 912 | 2,688 | 2,648 |
Expected return on plan assets | (1,049) | (1,053) | (3,145) | (3,173) |
Amortization of transition obligation | 10 | 9 | 29 | 27 |
Amortization of prior service cost | 9 | 9 | 26 | 27 |
Amortization of actuarial net loss | 15 | 639 | 47 | 1,873 |
Net periodic benefit (gain) cost | (24) | 630 | (72) | 1,736 |
Other Postretirement Benefits Plan [Member] | ||||
Service cost | 2 | 2 | 6 | 7 |
Interest cost | 48 | 53 | 143 | 159 |
Amortization of prior service cost | (22) | (69) | (66) | (206) |
Amortization of actuarial net loss | (155) | (10) | (465) | (29) |
Net periodic benefit (gain) cost | $ (127) | $ (24) | $ (382) | $ (69) |
Note H - Income Taxes (Details
Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Effective Income Tax Rate Reconciliation, Percent | 9.30% | 14% | 41% | 38.20% |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 14,916 | $ 8,207 | ||
Income Tax Expense (Benefit) | $ 398 | $ 548 | 2,606 | 2,350 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | (8,557) | (2,063) | ||
Tax and Customs Administration, Netherlands [Member] | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | $ 786 | |||
Foreign Tax Jurisdiction [Member] | ||||
Income Tax Expense (Benefit) | 2,599 | 2,303 | ||
Domestic Tax Jurisdiction [Member] | ||||
Income Tax Expense (Benefit) | $ 7 | $ 47 |
Note I - Intangible Assets (Det
Note I - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Amortization of Intangible Assets | $ 822 | $ 738 | $ 2,458 | $ 2,140 |
Note I - Intangible Assets - In
Note I - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Jul. 01, 2023 | |
Balance, Definite Intangible Assets Gross Carrying Amount | $ 31,272 | $ 31,272 | $ 31,925 | |||
Balance, Definite Intangible Assets Accumulated Amortization/Impairment | (21,115) | (21,115) | (19,288) | |||
Balance at June 30, Definite Intangible Assets Net Book Value | 10,157 | 10,157 | $ 10,157 | 12,637 | ||
Addition, Definite Intangible Assets Gross Carrying Amount | 89 | |||||
Addition, Definite Intangible Assets Net Book Value | 89 | |||||
Reduction, Definite Intangible Assets Gross Carrying Amount | (631) | |||||
Reduction, Definite Intangible Assets Accumulated Amortization/Impairment | 631 | |||||
Amortization, Intangible Asset | (822) | $ (738) | (2,458) | $ (2,140) | ||
Translation adjustment, Definite Intangible Assets Gross Carrying Amount | (111) | |||||
Translation adjustment, Definite Intangible Assets Net Book Value | (111) | |||||
Customer Relationships [Member] | ||||||
Balance at June 30, Definite Intangible Assets Net Book Value | 5,552 | 5,552 | 6,553 | |||
Addition, Definite Intangible Assets Net Book Value | 0 | |||||
Amortization, Intangible Asset | (935) | |||||
Translation adjustment, Definite Intangible Assets Net Book Value | (66) | |||||
Technology-Based Intangible Assets [Member] | ||||||
Balance at June 30, Definite Intangible Assets Net Book Value | 1,364 | 1,364 | 2,422 | |||
Addition, Definite Intangible Assets Net Book Value | 0 | |||||
Amortization, Intangible Asset | (923) | |||||
Translation adjustment, Definite Intangible Assets Net Book Value | (135) | |||||
Trade Names [Member] | ||||||
Balance at June 30, Definite Intangible Assets Net Book Value | 734 | 734 | 668 | |||
Addition, Definite Intangible Assets Net Book Value | 0 | |||||
Amortization, Intangible Asset | (39) | |||||
Translation adjustment, Definite Intangible Assets Net Book Value | 105 | |||||
Other Intangible Assets [Member] | ||||||
Balance at June 30, Definite Intangible Assets Net Book Value | $ 2,507 | 2,507 | $ 2,994 | |||
Addition, Definite Intangible Assets Net Book Value | 89 | |||||
Amortization, Intangible Asset | (561) | |||||
Translation adjustment, Definite Intangible Assets Net Book Value | $ (15) |
Note I - Intangible Assets - Es
Note I - Intangible Assets - Estimated Intangibles Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 29, 2024 | Jul. 01, 2023 |
2024 | $ 945 | ||
2025 | 3,274 | ||
2026 | 2,290 | ||
2027 | 1,531 | ||
2028 | 1,382 | ||
2029 | 735 | ||
Total | $ 10,157 | $ 10,157 | $ 12,637 |
Note J - Long-term Debt and S_3
Note J - Long-term Debt and Subsequent Event (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Apr. 01, 2024 USD ($) | Mar. 29, 2024 USD ($) | Mar. 29, 2024 USD ($) | Jul. 01, 2025 USD ($) | Jan. 01, 2025 | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 29, 2018 USD ($) | |
Long-Term Debt, Current Maturities | $ 2,000 | $ 2,000 | $ 2,010 | $ 2,000 | ||||
Principal Paid on Sale Leaseback Liabilities | 10 | |||||||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Bank of Montreal [Member] | ||||||||
Derivative, Notional Amount | 10,000 | 10,000 | $ 20,000 | |||||
Katsa Oy [Member] | ||||||||
Business Acquisition, Transaction Costs | $ 600 | $ 600 | ||||||
Maximum [Member] | ||||||||
Sale Leaseback Transactions, Term (Year) | 5 years | |||||||
Sale Leaseback Transactions, Implied Interest Rate | 25% | 25% | ||||||
Minimum [Member] | ||||||||
Sale Leaseback Transactions, Term (Year) | 3 years | |||||||
Sale Leaseback Transactions, Implied Interest Rate | 7% | 7% | ||||||
Subsequent Event [Member] | Maximum [Member] | Katsa Oy [Member] | ||||||||
Business Combination, Acquisition Related Costs | $ 600 | |||||||
BMO [Member] | The 2018 Credit Agreement [Member] | ||||||||
Debt Instrument, Percentage of Equity Interest in Domestic Subsidiaries Pledged | 100% | 100% | ||||||
Debt Instrument, Percentage of Equity Interest in Foreign Subsidiaries Pledged | 65% | 65% | ||||||
Debt Instrument, Debt Default, Percentage of Letter of Credit Obligations Required to Cash Collateralize | 105% | 105% | ||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 20,000 | $ 20,000 | ||||||
Debt Instrument, Periodic Payment, Total | $ 500 | |||||||
Debt Instrument, Interest Rate During Period | 6.83% | |||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 35,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||||||
Debt Instrument, Interest Rate During Period | 5.12% | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 37,016 | 37,016 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | 29,694 | 29,694 | ||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||
Debt Instrument, Covenant, Maximum Cash Dividends | 5,000 | 5,000 | ||||||
BMO [Member] | The Tenth Amendment [Member] | ||||||||
Long-Term Debt, Current Maturities | 2,000 | 2,000 | ||||||
BMO [Member] | The Tenth Amendment [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument, Covenant, Maximum Cash Dividends | $ 5,000 | |||||||
BMO [Member] | The Tenth Amendment [Member] | Term Loan [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.625% | |||||||
BMO [Member] | The Tenth Amendment [Member] | Term Loan [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | |||||||
BMO [Member] | The Tenth Amendment [Member] | Unused Revolving Credit Commitment [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.30% | |||||||
BMO [Member] | The Tenth Amendment [Member] | Unused Revolving Credit Commitment [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.15% | |||||||
BMO [Member] | The Tenth Amendment [Member] | Revolving Credit Facility [Member] | Forecast [Member] | ||||||||
Debt Instrument, Borrowing Base Two | $ 32,500 | |||||||
Debt Instrument, Borrowing Base, Percentage of Receivables Two | 50% | 55% | ||||||
BMO [Member] | The Tenth Amendment [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 45,000 | |||||||
Debt Instrument, Borrowing Base, Percentage of Receivables | 85% | |||||||
Debt Instrument, Borrowing Base Two | $ 35,000 | |||||||
Debt Instrument, Borrowing Base, Percentage of Receivables Two | 60% | |||||||
BMO [Member] | The Tenth Amendment [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||||
BMO [Member] | The Tenth Amendment [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||||||
Debt Instrument, Borrowing Base, Percentage of Receivables | 50% | |||||||
Debt Instrument, Borrowing Base | $ 30,000 | |||||||
BMO [Member] | The Ninth Amendment [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument, Covenant, Maximum Cash Dividends | $ 3,000 | |||||||
BMO [Member] | The Ninth Amendment [Member] | Term Loan [Member] | ||||||||
Debt Instrument, Covenant, Minimum Tangible Net Worth Plus Half of Net Income | $ 100,000 | 100,000 | ||||||
BMO [Member] | The Ninth Amendment [Member] | Term Loan [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.625% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Term Loan [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Term Loan [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.875% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Term Loan [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Unused Revolving Credit Commitment [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.30% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Unused Revolving Credit Commitment [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.15% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Unused Revolving Credit Commitment [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.15% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Unused Revolving Credit Commitment [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000 | $ 40,000 | ||||||
BMO [Member] | The Ninth Amendment [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |||||||
Fixed Charge Coverage Ratio | 1.1 | 1.1 | ||||||
BMO [Member] | The Ninth Amendment [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||||||
Total Funded Debt To EBITDA Allowable Ratio | 3.5 | 3.5 | ||||||
BMO [Member] | The Ninth Amendment [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Note J - Long-term Debt and S_4
Note J - Long-term Debt and Subsequent Event - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Long-term debt | $ 17,042 | $ 18,627 | |
Less: current maturities | (2,000) | (2,010) | $ (2,000) |
Total long-term debt | 15,042 | 16,617 | $ 29,276 |
Revolving Loan [Member] | |||
Long-term debt | 7,019 | 7,094 | |
Term Loan [Member] | |||
Long-term debt | 10,000 | 11,500 | |
Other Long-Term Debt [Member] | |||
Long-term debt | $ 23 | $ 33 |
Note K - Shareholders' Equity_2
Note K - Shareholders' Equity (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 29, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Jul. 01, 2022 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares) | 315 | |||
Treasury Stock, Shares, Acquired (in shares) | 0 | 0 | ||
Retained Earnings (Accumulated Deficit) | $ 122,759 | $ 113,524 | $ 120,299 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (7,094) | (5,212) | $ (5,570) | |
Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | ||||
Retained Earnings (Accumulated Deficit) | (23,291) | $ (25,100) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 23,291 | 25,100 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Tax | 0 | |||
Deferred Tax Assets, Gross | 7,900 | |||
Deferred Tax Assets, Valuation Allowance | $ 7,900 |
Note K - Shareholders' Equity -
Note K - Shareholders' Equity - Shareholders' Equity Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 29, 2024 | Dec. 29, 2023 | Sep. 29, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Mar. 29, 2024 | Mar. 31, 2023 | |
Balance | $ 145,910 | $ 140,175 | $ 145,517 | $ 133,765 | $ 124,768 | $ 131,188 | $ 145,517 | $ 131,188 |
Net income | 3,900 | 935 | (1,083) | 3,357 | 1,761 | (1,324) | 3,752 | 3,793 |
Translation adjustments | (3,084) | 5,190 | (3,036) | 1,014 | 8,392 | (6,290) | (930) | 3,116 |
Benefit plan adjustments, net of tax | (191) | (108) | (171) | (29) | (1,122) | (89) | (470) | (1,240) |
Unrealized gain (loss) on hedges | 196 | (485) | 216 | (224) | (595) | 793 | (73) | (26) |
Compensation expense | 791 | 772 | 495 | 736 | 856 | 658 | ||
Shares (acquired) issued, net | (19) | (9) | (1,763) | (295) | (168) | |||
Dividends paid to shareholders | (559) | (560) | ||||||
Translation adjustments | (3,084) | 5,190 | (3,036) | 1,014 | 8,392 | (6,290) | (930) | 3,116 |
Balance | 146,944 | 145,910 | 140,175 | 138,619 | 133,765 | 124,768 | 146,944 | 138,619 |
Common Stock [Member] | ||||||||
Balance | 39,661 | 39,439 | 42,855 | 41,444 | 41,285 | 42,551 | 42,855 | 42,551 |
Compensation expense | 791 | 772 | 495 | 736 | 856 | 658 | ||
Shares (acquired) issued, net | (24) | (550) | (3,911) | (35) | (697) | (1,924) | ||
Balance | 40,428 | 39,661 | 39,439 | 42,145 | 41,444 | 41,285 | 40,428 | 42,145 |
Retained Earnings [Member] | ||||||||
Balance | 119,496 | 119,126 | 120,299 | 110,243 | 108,497 | 109,919 | 120,299 | 109,919 |
Net income | 3,822 | 930 | (1,173) | 3,281 | 1,746 | (1,422) | ||
Dividends paid to shareholders | (559) | (560) | ||||||
Balance | 122,759 | 119,496 | 119,126 | 113,524 | 110,243 | 108,497 | 122,759 | 113,524 |
AOCI Attributable to Parent [Member] | ||||||||
Balance | (4,059) | (8,621) | (5,570) | (5,982) | (12,598) | (6,974) | (5,570) | (6,974) |
Translation adjustments | (3,040) | 5,155 | (3,096) | 1,023 | 8,333 | (6,328) | 3,028 | |
Benefit plan adjustments, net of tax | (191) | (108) | (171) | (29) | (1,122) | (89) | ||
Unrealized gain (loss) on hedges | 196 | (485) | 216 | (224) | (595) | 793 | (26) | |
Translation adjustments | (3,040) | 5,155 | (3,096) | 1,023 | 8,333 | (6,328) | 3,028 | |
Balance | (7,094) | (4,059) | (8,621) | (5,212) | (5,982) | (12,598) | (7,094) | (5,212) |
Treasury Stock, Common [Member] | ||||||||
Balance | (9,802) | (10,343) | (12,491) | (12,562) | (12,964) | (14,720) | (12,491) | (14,720) |
Shares (acquired) issued, net | 5 | 541 | 2,148 | 35 | 402 | 1,756 | ||
Balance | (9,797) | (9,802) | (10,343) | (12,527) | (12,562) | (12,964) | (9,797) | (12,527) |
Noncontrolling Interest [Member] | ||||||||
Balance | 614 | 574 | 424 | 622 | 548 | 412 | 424 | 412 |
Net income | 78 | 5 | 90 | 76 | 15 | 98 | ||
Translation adjustments | (44) | 35 | 60 | (9) | 59 | 38 | ||
Translation adjustments | (44) | 35 | 60 | (9) | 59 | 38 | ||
Balance | $ 648 | $ 614 | $ 574 | $ 689 | $ 622 | $ 548 | $ 648 | $ 689 |
Note K - Shareholders' Equity_3
Note K - Shareholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 29, 2024 | Dec. 29, 2023 | Sep. 29, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Mar. 29, 2024 | Mar. 31, 2023 | |
Balance | $ 145,910 | $ 140,175 | $ 145,517 | $ 133,765 | $ 124,768 | $ 131,188 | $ 145,517 | $ 131,188 |
Translation adjustment during the quarter | (3,084) | 5,190 | (3,036) | 1,014 | 8,392 | (6,290) | (930) | 3,116 |
Balance | 146,944 | 145,910 | 140,175 | 138,619 | 133,765 | 124,768 | 146,944 | 138,619 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||
Balance | 477 | (4,678) | (1,582) | (261) | (8,594) | (2,266) | (1,582) | (2,266) |
Translation adjustment during the quarter | (3,040) | 5,155 | (3,096) | 1,023 | 8,333 | (6,328) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | 0 | |||
Net current period other comprehensive (loss) income | 3,040 | (5,155) | 3,096 | (1,023) | (8,333) | 6,328 | ||
Net current period other comprehensive income (loss) | (3,040) | 5,155 | (3,096) | 1,023 | 8,333 | (6,328) | ||
Balance | (2,563) | 477 | (4,678) | 762 | (261) | (8,594) | (2,563) | 762 |
Plan merger adjustment | 0 | |||||||
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||||||
Balance | (6,227) | (6,119) | (5,948) | (7,825) | (6,703) | (6,614) | (5,948) | (6,614) |
Translation adjustment during the quarter | 0 | 0 | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | (191) | (108) | (171) | (29) | (7) | (89) | ||
Net current period other comprehensive (loss) income | 191 | 108 | 171 | 29 | 1,122 | 89 | ||
Net current period other comprehensive income (loss) | (191) | (108) | (171) | (29) | (1,122) | (89) | ||
Balance | (6,418) | (6,227) | (6,119) | (7,854) | (7,825) | (6,703) | (6,418) | (7,854) |
Plan merger adjustment | (1,115) | |||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||||
Balance | 499 | 682 | 688 | 1,003 | 1,013 | 356 | 688 | 356 |
Translation adjustment during the quarter | 0 | 0 | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 40 | (183) | (6) | (133) | (10) | 657 | ||
Net current period other comprehensive (loss) income | (40) | 183 | 6 | 133 | 10 | (657) | ||
Net current period other comprehensive income (loss) | 40 | (183) | (6) | (133) | (10) | 657 | ||
Balance | 539 | 499 | 682 | 870 | 1,003 | 1,013 | 539 | 870 |
Plan merger adjustment | 0 | |||||||
Accumulated Gain (Loss), Net, Net Investment Hedge [Member] | ||||||||
Balance | 1,192 | 1,494 | 1,272 | 1,101 | 1,686 | 1,550 | 1,272 | 1,550 |
Translation adjustment during the quarter | 0 | 0 | 0 | 0 | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 156 | (302) | 222 | (91) | (585) | 136 | ||
Net current period other comprehensive (loss) income | (156) | 302 | (222) | 91 | 585 | (136) | ||
Net current period other comprehensive income (loss) | 156 | (302) | 222 | (91) | (585) | 136 | ||
Balance | $ 1,348 | $ 1,192 | $ 1,494 | $ 1,010 | 1,101 | $ 1,686 | $ 1,348 | $ 1,010 |
Plan merger adjustment | $ 0 |
Note K - Shareholders' Equity_4
Note K - Shareholders' Equity - Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Mar. 29, 2024 | Dec. 29, 2023 | Sep. 29, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Mar. 29, 2024 | Mar. 31, 2023 | ||
Total amortization | $ 4,298 | $ 3,905 | $ 6,358 | $ 6,143 | |||||
Income tax expense | 398 | 548 | 2,606 | 2,350 | |||||
Net income | 3,900 | $ 935 | $ (1,083) | 3,357 | $ 1,761 | $ (1,324) | 3,752 | 3,793 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||||
Actuarial losses | [1] | (198) | 630 | (461) | 1,853 | ||||
Transition asset and prior service benefit | [1] | 3 | (51) | 11 | (152) | ||||
Total amortization | (201) | (28) | (472) | (1,235) | |||||
Income tax expense | 10 | (1) | 2 | (5) | |||||
Net income | (191) | (29) | (470) | (1,240) | |||||
Actuarial gains | [1] | $ (198) | 630 | $ (461) | 1,853 | ||||
Mark-to-market adjustment | (607) | (1,821) | |||||||
Plan merger adjustment | $ 0 | $ 1,115 | |||||||
[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 - Assets Held for Sale (
Note L - Assets Held for Sale (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 29, 2024 | Sep. 29, 2023 | Mar. 25, 2022 | Mar. 29, 2024 | Mar. 31, 2023 | |
Proceeds from Sale of Property, Plant, and Equipment | $ 0 | $ 7,177 | |||
Gain (Loss) on Disposition of Assets | $ 87 | $ 4,237 | |||
Boat Management System Product Line [Member] | |||||
Inventory Write-down | $ 2,100 | $ 2,100 | |||
Property, Plant, and Equipment Reclassified to Assets Held for Sale [Member] | |||||
Increase (Decrease) in Asset, Held-for-Sale | 2,801 | ||||
Propeller Machining Plant and Office in Switzerland [Member] | |||||
Proceeds from Sale of Property, Plant, and Equipment | 7,150 | ||||
Gain (Loss) on Disposition of Assets | $ 4,161 | ||||
Employee Severance [Member] | |||||
Impairment of Long-Lived Assets to be Disposed of | $ 4,267 |
Note M - Earnings Per Share (De
Note M - Earnings Per Share (Details Textual) - shares | 9 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 224,600 | 355,500 |
PSAU Award [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 10,500 | |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 153,900 | 191,600 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 51,000 | 59,500 |
Note M - Earnings Per Share - C
Note M - Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 29, 2024 | Dec. 29, 2023 | Sep. 29, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Mar. 29, 2024 | Mar. 31, 2023 | |
Net income | $ 3,900 | $ 935 | $ (1,083) | $ 3,357 | $ 1,761 | $ (1,324) | $ 3,752 | $ 3,793 |
Less: Net earnings attributable to noncontrolling interest | (78) | (76) | (173) | (188) | ||||
Less: Undistributed earnings attributable to unvested shares | 0 | 0 | 0 | 0 | ||||
Net income attributable to Twin Disc | $ 3,822 | $ 3,281 | $ 3,579 | $ 3,605 | ||||
Weighted average shares outstanding - basic (in shares) | 13,742 | 13,504 | 13,663 | 13,455 | ||||
Basic income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.28 | $ 0.24 | $ 0.26 | $ 0.27 | ||||
Effect of dilutive stock awards (in shares) | 162 | 158 | 189 | 153 | ||||
Weighted average shares outstanding - diluted (in shares) | 13,904 | 13,662 | 13,852 | 13,608 | ||||
Diluted income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.27 | $ 0.24 | $ 0.26 | $ 0.26 |
Note N - Lease Obligations - Co
Note N - Lease Obligations - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Assets [Abstract] | |||
Property, plant and equipment, net | $ 40,606 | $ 38,650 | $ 40,700 |
Current liabilities: | |||
Accrued Liabilities, Current | 63,406 | 61,586 | 56,886 |
Liabilities, Noncurrent [Abstract] | |||
Other long-term liabilities | 5,822 | 5,253 | 5,403 |
Operating lease right-of-use assets | $ 14,498 | 13,133 | 12,415 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | ||
Finance lease right-of-use assets | $ 4,845 | 4,427 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | ||
Operating lease liabilities | $ 1,957 | 2,343 | |
Operating lease liabilities | $ 12,638 | 10,811 | $ 9,897 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | ||
Finance lease liabilities | $ 628 | 643 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | ||
Finance lease liabilities | $ 4,542 | $ 4,314 |
Note N - Lease Obligations - _2
Note N - Lease Obligations - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Amortization of right-of-use assets | $ 206 | $ 187 | $ 603 | $ 498 |
Interest on lease liabilities | 76 | 87 | 227 | 219 |
Operating lease cost | 941 | 852 | 2,716 | 2,250 |
Short-term lease cost | 1 | 2 | 9 | 5 |
Variable lease cost | 101 | 94 | 301 | 202 |
Total lease cost | 1,325 | 1,222 | 3,856 | 3,174 |
Less: Sublease income | (20) | (18) | (61) | (53) |
Net lease cost | $ 1,305 | $ 1,204 | $ 3,795 | $ 3,121 |
Note N - Lease Obligations - Ot
Note N - Lease Obligations - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Operating cash flows from operating leases | $ 951 | $ 873 | $ 2,822 | $ 2,268 |
Operating cash flows from finance leases | 76 | 138 | 225 | 270 |
Financing cash flows from finance leases | 192 | 73 | 663 | 231 |
Right-of-use-assets obtained in exchange for lease obligations: Operating leases | 3,551 | 218 | 3,739 | 1,736 |
Right-of-use-assets obtained in exchange for lease obligations: Finance leases | $ 227 | $ 47 | $ 883 | $ 367 |
Weighted average remaining lease term (years): Operating leases (Year) | 9 years 3 months 18 days | 8 years 9 months 18 days | 9 years 3 months 18 days | 8 years 9 months 18 days |
Weighted average remaining lease term (years): Finance lease (Year) | 9 years 3 months 18 days | 11 years 3 months 18 days | 9 years 3 months 18 days | 11 years 3 months 18 days |
Weighted average discount rate: Operating leases | 8.20% | 7.20% | 8.20% | 7.20% |
Weighted average discount rate: Finance leases | 5.90% | 5.20% | 5.90% | 5.20% |
Note N - Lease Obligations - Fu
Note N - Lease Obligations - Future Minimum Rental Commitments Under Noncancelable Leases (Details) $ in Thousands | Mar. 29, 2024 USD ($) |
2024, Operating Leases | $ 766 |
2024, Finance Leases | 248 |
2025, Operating Leases | 2,828 |
2025, Finance Leases | 877 |
2026, Operating Leases | 2,288 |
2026, Finance Leases | 828 |
2027, Operating Leases | 2,023 |
2027, Finance Leases | 775 |
2028, Operating Leases | 1,972 |
2028, Finance Leases | 695 |
2029, Operating Leases | 1,965 |
2029, Finance Leases | 513 |
Thereafter, Operating Leases | 9,844 |
Thereafter, Finance Leases | 2,674 |
Total future lease payments, Operating Leases | 21,686 |
Total future lease payments, Finance Leases | 6,610 |
Less: Amount representing interest, Operating Leases | (7,091) |
Less: Amount representing interest, Finance Leases | (1,440) |
Present value of future payments, Operating Leases | 14,595 |
Present value of future payments, Finance Leases | $ 5,170 |
Note O - Derivative Financial_3
Note O - Derivative Financial Instruments (Details Textual) $ in Thousands, € in Millions | 3 Months Ended | ||||||||
Mar. 29, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 29, 2023 USD ($) | Sep. 29, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 EUR (€) | |
Equity, Including Portion Attributable to Noncontrolling Interest | $ 146,944 | $ 145,517 | $ 145,910 | $ 140,175 | $ 138,619 | $ 133,765 | $ 124,768 | $ 131,188 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within 12 Months | $ 230 | ||||||||
Interest Rate Swap [Member] | |||||||||
Derivative, Number of Instruments Held | 1 | ||||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Bank of Montreal [Member] | |||||||||
Derivative, Notional Amount | $ 10,000 | 20,000 | |||||||
Equity, Including Portion Attributable to Noncontrolling Interest | 539 | 688 | |||||||
Euro Denominated Revolving Loan [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | |||||||||
Derivative, Notional Amount | € | € 13 | ||||||||
Derivative, Gain (Loss) on Derivative, Net | $ (1,348) | $ (1,272) |
Note O - Derivative Financial_4
Note O - Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Current assets: | |||
Other Assets, Current | $ 10,451 | $ 8,326 | $ 8,341 |
Assets, Noncurrent [Abstract] | |||
Other assets | $ 2,755 | 2,811 | $ 2,668 |
Interest rate swap | Other Assets, Current | ||
Interest rate swap | Other assets | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||
Interest rate swap | $ 217 | 292 | |
Interest rate swap | $ 112 | $ 187 |
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 | 9 Months Ended | ||||||
Mar. 29, 2024 | Dec. 29, 2023 | Sep. 29, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Mar. 29, 2024 | Mar. 31, 2023 | |
Unrealized gain (loss) on hedges | $ 196 | $ (485) | $ 216 | $ (224) | $ (595) | $ 793 | $ (73) | $ (26) |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Unrealized Gain (Loss) on Hedges [Member] | Cash Flow Hedging [Member] | ||||||||
Unrealized gain (loss) on hedges | 40 | (133) | (148) | 206 | ||||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | ||||||||
Gain (loss) on derivative instruments | 62 | 76 | 200 | 238 | ||||
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 | $ 156 | $ (91) | $ 75 | $ (232) |
Note P - Impact of Accounting_3
Note P - Impact of Accounting Method Change - Adjustment to Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Mar. 29, 2024 | Dec. 29, 2023 | Sep. 29, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Mar. 29, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Jul. 01, 2022 | |
Net sales | $ 74,161 | $ 73,772 | $ 210,709 | $ 193,036 | ||||||
Gross profit | 20,940 | 19,265 | 58,233 | 49,585 | ||||||
Marketing, engineering and administrative expenses | 17,199 | 14,626 | 51,268 | 45,688 | ||||||
Restructuring expenses | 139 | 33 | 207 | 208 | ||||||
Other operating expense (income) | 0 | 1 | 0 | (4,149) | ||||||
Income from operations | 3,602 | 4,605 | 6,758 | 7,838 | ||||||
Interest expense | 263 | 522 | 1,049 | 1,682 | ||||||
Other (income) expense, net | (959) | 178 | (649) | 13 | ||||||
Interest Income (Expense), Nonoperating | (696) | 700 | 400 | 1,695 | ||||||
Income before income taxes and noncontrolling interest | 4,298 | 3,905 | 6,358 | 6,143 | ||||||
Income tax expense | 398 | 548 | 2,606 | 2,350 | ||||||
Net income | 3,900 | $ 935 | $ (1,083) | 3,357 | $ 1,761 | $ (1,324) | 3,752 | 3,793 | ||
Less: Net earnings attributable to noncontrolling interest, net of tax | (78) | (76) | (173) | (188) | ||||||
Net income attributable to Twin Disc | $ 3,822 | $ 3,281 | $ 3,579 | $ 3,605 | ||||||
Basic income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.28 | $ 0.24 | $ 0.26 | $ 0.27 | ||||||
Diluted income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.27 | $ 0.24 | $ 0.26 | $ 0.26 | ||||||
Basic shares outstanding (in shares) | 13,742 | 13,504 | 13,663 | 13,455 | ||||||
Diluted shares outstanding (in shares) | 13,904 | 13,662 | 13,852 | 13,608 | ||||||
Benefit plan adjustments, net of income taxes of $10, $(1), $2 and $(5), respectively | $ (191) | (108) | (171) | $ (29) | (1,122) | (89) | $ (470) | $ (1,240) | ||
Translation adjustment during the quarter | (3,084) | 5,190 | (3,036) | 1,014 | 8,392 | (6,290) | (930) | 3,116 | ||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 196 | (485) | 216 | (224) | (595) | 793 | (73) | (26) | ||
Comprehensive income (loss) | 821 | 4,118 | 2,279 | 5,643 | ||||||
Less: Comprehensive income attributable to noncontrolling interest | 34 | 67 | 224 | 277 | ||||||
Comprehensive income attributable to Twin Disc | 787 | 4,051 | 2,055 | 5,366 | ||||||
Current assets: | ||||||||||
Cash | 23,843 | 14,024 | 23,843 | 14,024 | $ 13,263 | |||||
Trade accounts receivable, net | 40,950 | 44,438 | 40,950 | 44,438 | 54,760 | |||||
Inventories | 129,845 | 136,153 | 129,845 | 136,153 | 131,930 | |||||
Assets held for sale | 2,968 | 2,968 | 2,968 | 2,968 | 2,968 | |||||
Prepaid expenses | 10,471 | 10,025 | 10,471 | 10,025 | 8,459 | |||||
Other | 10,451 | 8,341 | 10,451 | 8,341 | 8,326 | |||||
Total current assets | 218,528 | 215,949 | 218,528 | 215,949 | 219,706 | |||||
Property, plant and equipment, net | 40,606 | 40,700 | 40,606 | 40,700 | 38,650 | |||||
Right-of-use assets operating leases | 14,498 | 12,415 | 14,498 | 12,415 | 13,133 | |||||
Intangible assets, net | 10,157 | 11,239 | 10,157 | 11,239 | 12,637 | |||||
Deferred income taxes | 2,210 | 2,542 | 2,210 | 2,542 | 2,244 | |||||
Other assets | 2,755 | 2,668 | 2,755 | 2,668 | 2,811 | |||||
Total assets | 288,754 | 285,513 | 288,754 | 285,513 | 289,181 | |||||
Current liabilities: | ||||||||||
Current maturities of long-term debt | 2,000 | 2,000 | 2,000 | 2,000 | 2,010 | |||||
Accounts payable | 33,230 | 29,726 | 33,230 | 29,726 | 36,499 | |||||
Accrued liabilities | 63,406 | 56,886 | 63,406 | 56,886 | 61,586 | |||||
Total current liabilities | 98,636 | 88,612 | 98,636 | 88,612 | 100,095 | |||||
Long-term debt | 15,042 | 29,276 | 15,042 | 29,276 | 16,617 | |||||
Lease obligations | 12,638 | 9,897 | 12,638 | 9,897 | 10,811 | |||||
Accrued retirement benefits | 6,707 | 10,315 | 6,707 | 10,315 | 7,608 | |||||
Deferred income taxes | 2,965 | 3,391 | 2,965 | 3,391 | 3,280 | |||||
Other long-term liabilities | 5,822 | 5,403 | 5,822 | 5,403 | 5,253 | |||||
Total liabilities | 141,810 | 146,894 | 141,810 | 146,894 | 143,664 | |||||
Twin Disc shareholders' equity: | ||||||||||
Preferred shares authorized: 200,000; issued: none; no par value | 0 | 0 | 0 | 0 | 0 | |||||
Common shares authorized: 30,000,000; issued: 14,632,802; no par value | 40,428 | 42,145 | 40,428 | 42,145 | 42,855 | |||||
Retained earnings | 122,759 | 113,524 | 122,759 | 113,524 | 120,299 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (7,094) | (5,212) | (7,094) | (5,212) | (5,570) | |||||
Equity before treasury stock | 156,093 | 150,457 | 156,093 | 150,457 | 157,584 | |||||
Less treasury stock, at cost (638,712 and 814,734 shares, respectively) | 9,797 | 12,527 | 9,797 | 12,527 | 12,491 | |||||
Total Twin Disc shareholders' equity | 146,296 | 137,930 | 146,296 | 137,930 | 145,093 | |||||
Noncontrolling interest | 648 | 689 | 648 | 689 | 424 | |||||
Total equity | 146,944 | 145,910 | 140,175 | 138,619 | 133,765 | 124,768 | 146,944 | 138,619 | 145,517 | |
Total liabilities and equity | 288,754 | 285,513 | 288,754 | 285,513 | 289,181 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | 3,900 | 935 | (1,083) | 3,357 | 1,761 | (1,324) | 3,752 | 3,793 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 7,497 | 6,936 | ||||||||
Gain on sale of assets | (87) | (4,237) | ||||||||
Provision for deferred income taxes | 239 | (1,462) | ||||||||
Stock compensation expense and other non-cash changes, net | 2,242 | 2,355 | ||||||||
Net change in operating assets and liabilities | 5,531 | (526) | ||||||||
Net cash provided by operating activities | 22,273 | 6,859 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Acquisition of property, plant, and equipment | (7,598) | (6,783) | ||||||||
Proceeds from sale of fixed assets | 0 | 7,177 | ||||||||
Proceeds on note receivable | 0 | |||||||||
Other, net | (167) | 199 | ||||||||
Net cash (used) provided by investing activities | (7,765) | 593 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Borrowings under revolving loan arrangements | 66,661 | 65,862 | ||||||||
Repayments of revolving loan arrangements | (66,661) | (69,823) | ||||||||
Repayments of other long-term debt | (1,510) | (1,534) | ||||||||
Payments of finance lease obligations | (192) | (73) | (663) | (231) | ||||||
Payments of withholding taxes on stock compensation | (1,791) | (463) | ||||||||
Net cash used by financing activities | (5,083) | (6,189) | ||||||||
Effect of exchange rate changes on cash | 1,155 | 240 | ||||||||
Net change in cash | 10,580 | 1,503 | ||||||||
Cash: | ||||||||||
Beginning of period | 13,263 | 12,521 | 13,263 | 12,521 | ||||||
End of period | 23,843 | 14,024 | 23,843 | 14,024 | ||||||
Balance | 145,910 | 140,175 | 145,517 | 133,765 | 124,768 | 131,188 | 145,517 | 131,188 | ||
Net income attributable to Twin Disc | 3,822 | 3,281 | 3,579 | 3,605 | ||||||
Balance | 146,944 | 145,910 | 140,175 | 138,619 | 133,765 | 124,768 | 146,944 | 138,619 | ||
Translation adjustment during the quarter | (3,084) | 5,190 | (3,036) | 1,014 | 8,392 | (6,290) | (930) | 3,116 | ||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 196 | (485) | 216 | (224) | (595) | 793 | (73) | (26) | ||
Retained Earnings [Member] | ||||||||||
Net income | 3,822 | 930 | (1,173) | 3,281 | 1,746 | (1,422) | ||||
Net income attributable to Twin Disc | 3,605 | |||||||||
Twin Disc shareholders' equity: | ||||||||||
Total equity | 122,759 | 119,496 | 119,126 | 113,524 | 110,243 | 108,497 | 122,759 | 113,524 | 120,299 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | 3,822 | 930 | (1,173) | 3,281 | 1,746 | (1,422) | ||||
Cash: | ||||||||||
Balance | 119,496 | 119,126 | 120,299 | 110,243 | 108,497 | 109,919 | 120,299 | 109,919 | ||
Net income attributable to Twin Disc | 3,605 | |||||||||
Balance | 122,759 | 119,496 | 119,126 | 113,524 | 110,243 | 108,497 | 122,759 | 113,524 | ||
AOCI Attributable to Parent [Member] | ||||||||||
Benefit plan adjustments, net of income taxes of $10, $(1), $2 and $(5), respectively | (191) | (108) | (171) | (29) | (1,122) | (89) | ||||
Translation adjustment during the quarter | (3,040) | 5,155 | (3,096) | 1,023 | 8,333 | (6,328) | 3,028 | |||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 196 | (485) | 216 | (224) | (595) | 793 | (26) | |||
Twin Disc shareholders' equity: | ||||||||||
Total equity | (7,094) | (4,059) | (8,621) | (5,212) | (5,982) | (12,598) | (7,094) | (5,212) | $ (5,570) | |
Cash: | ||||||||||
Balance | (4,059) | (8,621) | (5,570) | (5,982) | (12,598) | (6,974) | (5,570) | (6,974) | ||
Balance | (7,094) | (4,059) | (8,621) | (5,212) | (5,982) | (12,598) | $ (7,094) | (5,212) | ||
Translation adjustment during the quarter | (3,040) | 5,155 | (3,096) | 1,023 | 8,333 | (6,328) | 3,028 | |||
Benefit plan adjustments, net of tax | (1,240) | |||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | $ 196 | $ (485) | $ 216 | (224) | $ (595) | 793 | (26) | |||
Previously Reported [Member] | ||||||||||
Net sales | 73,772 | 193,036 | ||||||||
Cost of goods sold | 54,507 | 143,451 | ||||||||
Gross profit | 19,265 | 49,585 | ||||||||
Marketing, engineering and administrative expenses | 14,626 | 45,688 | ||||||||
Restructuring expenses | 33 | 208 | ||||||||
Other operating expense (income) | 1 | (4,149) | ||||||||
Income from operations | 4,605 | 7,838 | ||||||||
Interest expense | 522 | 1,682 | ||||||||
Other (income) expense, net | 785 | 1,834 | ||||||||
Interest Income (Expense), Nonoperating | 1,307 | 3,516 | ||||||||
Income before income taxes and noncontrolling interest | 3,298 | 4,322 | ||||||||
Income tax expense | 548 | 2,350 | ||||||||
Net income | 2,750 | 1,972 | ||||||||
Less: Net earnings attributable to noncontrolling interest, net of tax | (76) | (188) | ||||||||
Net income attributable to Twin Disc | $ 2,674 | $ 1,784 | ||||||||
Basic income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.2 | $ 0.13 | ||||||||
Diluted income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.2 | $ 0.13 | ||||||||
Basic shares outstanding (in shares) | 13,504,000 | 13,455,000 | ||||||||
Diluted shares outstanding (in shares) | 13,662,000 | 13,608,000 | ||||||||
Benefit plan adjustments, net of income taxes of $10, $(1), $2 and $(5), respectively | $ 578 | $ 581 | ||||||||
Translation adjustment during the quarter | 1,014 | |||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (224) | (26) | ||||||||
Comprehensive income (loss) | 4,118 | 5,643 | ||||||||
Less: Comprehensive income attributable to noncontrolling interest | 67 | |||||||||
Comprehensive income attributable to Twin Disc | 4,051 | 5,366 | ||||||||
Current assets: | ||||||||||
Cash | 14,024 | 14,024 | ||||||||
Trade accounts receivable, net | 44,438 | 44,438 | ||||||||
Inventories | 136,153 | 136,153 | ||||||||
Assets held for sale | 2,968 | 2,968 | ||||||||
Prepaid expenses | 10,025 | 10,025 | ||||||||
Other | 8,341 | 8,341 | ||||||||
Total current assets | 215,949 | 215,949 | ||||||||
Property, plant and equipment, net | 40,700 | 40,700 | ||||||||
Right-of-use assets operating leases | 12,415 | 12,415 | ||||||||
Intangible assets, net | 11,239 | 11,239 | ||||||||
Deferred income taxes | 2,542 | 2,542 | ||||||||
Other assets | 2,668 | 2,668 | ||||||||
Total assets | 285,513 | 285,513 | ||||||||
Current liabilities: | ||||||||||
Current maturities of long-term debt | 2,000 | 2,000 | ||||||||
Accounts payable | 29,726 | 29,726 | ||||||||
Accrued liabilities | 56,886 | 56,886 | ||||||||
Total current liabilities | 88,612 | 88,612 | ||||||||
Long-term debt | 29,276 | 29,276 | ||||||||
Lease obligations | 9,897 | 9,897 | ||||||||
Accrued retirement benefits | 10,315 | 10,315 | ||||||||
Deferred income taxes | 3,391 | 3,391 | ||||||||
Other long-term liabilities | 5,403 | 5,403 | ||||||||
Total liabilities | 146,894 | 146,894 | ||||||||
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 | 42,145 | 42,145 | ||||||||
Retained earnings | 136,815 | 136,815 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (28,503) | (28,503) | ||||||||
Equity before treasury stock | 150,457 | 150,457 | ||||||||
Less treasury stock, at cost (638,712 and 814,734 shares, respectively) | 12,527 | 12,527 | ||||||||
Total Twin Disc shareholders' equity | 137,930 | 137,930 | ||||||||
Noncontrolling interest | 689 | 689 | ||||||||
Total equity | 138,619 | 138,619 | ||||||||
Total liabilities and equity | 285,513 | 285,513 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | 2,750 | 1,972 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 6,936 | |||||||||
Gain on sale of assets | (4,237) | |||||||||
Provision for deferred income taxes | (1,462) | |||||||||
Stock compensation expense and other non-cash changes, net | 2,355 | |||||||||
Net change in operating assets and liabilities | 1,295 | |||||||||
Net cash provided by operating activities | 6,859 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Acquisition of property, plant, and equipment | (6,783) | |||||||||
Proceeds from sale of fixed assets | 7,177 | |||||||||
Proceeds on note receivable | 0 | |||||||||
Other, net | 199 | |||||||||
Net cash (used) provided by investing activities | 593 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Borrowings under revolving loan arrangements | 65,862 | |||||||||
Repayments of revolving loan arrangements | (69,823) | |||||||||
Repayments of other long-term debt | (1,534) | |||||||||
Payments of finance lease obligations | (231) | |||||||||
Payments of withholding taxes on stock compensation | (463) | |||||||||
Net cash used by financing activities | (6,189) | |||||||||
Effect of exchange rate changes on cash | 240 | |||||||||
Net change in cash | 1,503 | |||||||||
Cash: | ||||||||||
Beginning of period | 12,521 | 12,521 | ||||||||
End of period | 14,024 | 14,024 | ||||||||
Net income attributable to Twin Disc | 2,674 | 1,784 | ||||||||
Balance | 138,619 | 138,619 | ||||||||
Translation adjustment during the quarter | 1,014 | |||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (224) | (26) | ||||||||
Previously Reported [Member] | Retained Earnings [Member] | ||||||||||
Net income attributable to Twin Disc | 1,784 | |||||||||
Twin Disc shareholders' equity: | ||||||||||
Total equity | 136,815 | 136,815 | ||||||||
Cash: | ||||||||||
Balance | 135,031 | 135,031 | ||||||||
Net income attributable to Twin Disc | 1,784 | |||||||||
Balance | 136,815 | 136,815 | ||||||||
Previously Reported [Member] | AOCI Attributable to Parent [Member] | ||||||||||
Translation adjustment during the quarter | 3,028 | |||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (26) | |||||||||
Twin Disc shareholders' equity: | ||||||||||
Total equity | (28,503) | (28,503) | ||||||||
Cash: | ||||||||||
Balance | (32,086) | (32,086) | ||||||||
Balance | (28,503) | (28,503) | ||||||||
Translation adjustment during the quarter | 3,028 | |||||||||
Benefit plan adjustments, net of tax | 581 | |||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (26) | |||||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | ||||||||||
Net sales | 0 | 0 | ||||||||
Cost of goods sold | 0 | 0 | ||||||||
Gross profit | 0 | 0 | ||||||||
Marketing, engineering and administrative expenses | 0 | 0 | ||||||||
Restructuring expenses | 0 | 0 | ||||||||
Other operating expense (income) | 0 | 0 | ||||||||
Income from operations | 0 | 0 | ||||||||
Interest expense | 0 | 0 | ||||||||
Other (income) expense, net | (607) | (1,821) | ||||||||
Interest Income (Expense), Nonoperating | (607) | (1,821) | ||||||||
Income before income taxes and noncontrolling interest | 607 | 1,821 | ||||||||
Income tax expense | 0 | 0 | ||||||||
Net income | 607 | 1,821 | ||||||||
Less: Net earnings attributable to noncontrolling interest, net of tax | 0 | 0 | ||||||||
Net income attributable to Twin Disc | $ 607 | $ 1,821 | ||||||||
Basic income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.04 | $ 0.14 | ||||||||
Diluted income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.04 | $ 0.13 | ||||||||
Basic shares outstanding (in shares) | 0 | 0 | ||||||||
Diluted shares outstanding (in shares) | 0 | 0 | ||||||||
Benefit plan adjustments, net of income taxes of $10, $(1), $2 and $(5), respectively | $ (607) | $ (1,821) | ||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 0 | 0 | ||||||||
Comprehensive income (loss) | 0 | 0 | ||||||||
Comprehensive income attributable to Twin Disc | 0 | 0 | ||||||||
Current assets: | ||||||||||
Cash | 0 | 0 | ||||||||
Trade accounts receivable, net | 0 | 0 | ||||||||
Inventories | 0 | 0 | ||||||||
Assets held for sale | 0 | 0 | ||||||||
Prepaid expenses | 0 | 0 | ||||||||
Other | 0 | 0 | ||||||||
Total current assets | 0 | 0 | ||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||
Right-of-use assets operating leases | 0 | 0 | ||||||||
Intangible assets, net | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | ||||||||
Other assets | 0 | 0 | ||||||||
Total assets | 0 | 0 | ||||||||
Current liabilities: | ||||||||||
Current maturities of long-term debt | 0 | 0 | ||||||||
Accounts payable | 0 | 0 | ||||||||
Accrued liabilities | 0 | 0 | ||||||||
Total current liabilities | 0 | 0 | ||||||||
Long-term debt | 0 | 0 | ||||||||
Lease obligations | 0 | 0 | ||||||||
Accrued retirement benefits | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | ||||||||
Other long-term liabilities | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | ||||||||
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 | 0 | 0 | ||||||||
Retained earnings | (23,291) | (23,291) | $ (25,100) | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 23,291 | 23,291 | $ 25,100 | |||||||
Equity before treasury stock | 0 | 0 | ||||||||
Less treasury stock, at cost (638,712 and 814,734 shares, respectively) | 0 | 0 | ||||||||
Total Twin Disc shareholders' equity | 0 | 0 | ||||||||
Noncontrolling interest | 0 | 0 | ||||||||
Total equity | 0 | 0 | ||||||||
Total liabilities and equity | 0 | 0 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | 607 | 1,821 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 0 | |||||||||
Gain on sale of assets | 0 | |||||||||
Provision for deferred income taxes | 0 | |||||||||
Stock compensation expense and other non-cash changes, net | 0 | |||||||||
Net change in operating assets and liabilities | (1,821) | |||||||||
Net cash provided by operating activities | 0 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Acquisition of property, plant, and equipment | 0 | |||||||||
Proceeds from sale of fixed assets | 0 | |||||||||
Proceeds on note receivable | 0 | |||||||||
Other, net | 0 | |||||||||
Net cash (used) provided by investing activities | 0 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Borrowings under revolving loan arrangements | 0 | |||||||||
Repayments of revolving loan arrangements | 0 | |||||||||
Repayments of other long-term debt | 0 | |||||||||
Payments of finance lease obligations | 0 | |||||||||
Payments of withholding taxes on stock compensation | 0 | |||||||||
Net cash used by financing activities | 0 | |||||||||
Effect of exchange rate changes on cash | 0 | |||||||||
Net change in cash | 0 | |||||||||
Cash: | ||||||||||
Beginning of period | 0 | 0 | ||||||||
End of period | 0 | 0 | ||||||||
Net income attributable to Twin Disc | 607 | 1,821 | ||||||||
Balance | 0 | 0 | ||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 0 | 0 | ||||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | Retained Earnings [Member] | ||||||||||
Net income attributable to Twin Disc | 1,821 | |||||||||
Twin Disc shareholders' equity: | ||||||||||
Total equity | (23,291) | (23,291) | ||||||||
Cash: | ||||||||||
Balance | (25,112) | (25,112) | ||||||||
Net income attributable to Twin Disc | 1,821 | |||||||||
Balance | (23,291) | (23,291) | ||||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | AOCI Attributable to Parent [Member] | ||||||||||
Translation adjustment during the quarter | 0 | |||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 0 | |||||||||
Twin Disc shareholders' equity: | ||||||||||
Total equity | 23,291 | 23,291 | ||||||||
Cash: | ||||||||||
Balance | $ 25,112 | 25,112 | ||||||||
Balance | 23,291 | 23,291 | ||||||||
Translation adjustment during the quarter | 0 | |||||||||
Benefit plan adjustments, net of tax | (1,821) | |||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 0 | |||||||||
As Reported Under New Method [Member] | ||||||||||
Net sales | 73,772 | 193,036 | ||||||||
Cost of goods sold | 54,507 | 143,451 | ||||||||
Gross profit | 19,265 | 49,585 | ||||||||
Marketing, engineering and administrative expenses | 14,626 | 45,688 | ||||||||
Restructuring expenses | 33 | 208 | ||||||||
Other operating expense (income) | 1 | (4,149) | ||||||||
Income from operations | 4,605 | 7,838 | ||||||||
Interest expense | 522 | 1,682 | ||||||||
Other (income) expense, net | 178 | 13 | ||||||||
Interest Income (Expense), Nonoperating | 700 | 1,695 | ||||||||
Income before income taxes and noncontrolling interest | 3,905 | 6,143 | ||||||||
Income tax expense | 548 | 2,350 | ||||||||
Net income | 3,357 | 3,793 | ||||||||
Less: Net earnings attributable to noncontrolling interest, net of tax | (76) | (188) | ||||||||
Net income attributable to Twin Disc | $ 3,281 | $ 3,605 | ||||||||
Basic income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.24 | $ 0.27 | ||||||||
Diluted income per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.24 | $ 0.26 | ||||||||
Basic shares outstanding (in shares) | 13,504,000 | 13,455,000 | ||||||||
Diluted shares outstanding (in shares) | 13,662,000 | 13,608,000 | ||||||||
Benefit plan adjustments, net of income taxes of $10, $(1), $2 and $(5), respectively | $ (29) | $ (1,240) | ||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (224) | (26) | ||||||||
Comprehensive income (loss) | 4,118 | 5,643 | ||||||||
Comprehensive income attributable to Twin Disc | 4,051 | 5,366 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net income | 3,357 | 3,793 | ||||||||
Cash: | ||||||||||
Net income attributable to Twin Disc | 3,281 | 3,605 | ||||||||
Unrealized gain (loss) on hedges, net of income taxes of $0, $0, $0 and $0, respectively | $ (224) | $ (26) |
Note P - Impact of Accounting_4
Note P - Impact of Accounting Method Change - Adjustment to Financial Statements (Details) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Benefit plan adjustments, income taxes | $ 10 | $ (1) | $ 2 | $ (5) | |
Unrealized loss on cash flow hedge, income taxes | $ 0 | $ 0 | $ 0 | $ 0 | |
Preferred Shares, Authorized (in shares) | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 |
Preferred Shares, Issued (in shares) | 0 | 0 | 0 | 0 | 0 |
Preferred Shares, No Par Value (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Common shares, authorized (in shares) | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 |
Common shares, shares issued (in shares) | 14,632,802 | 14,632,802 | 14,632,802 | 14,632,802 | 14,632,802 |
Common shares, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Treasury Stock, Common, Shares (in shares) | 638,712 | 819,398 | 638,712 | 819,398 | 814,734 |
Previously Reported [Member] | |||||
Benefit plan adjustments, income taxes | $ 1 | $ 1 | |||
As Reported Under New Method [Member] | |||||
Benefit plan adjustments, income taxes | $ 5 | $ 5 |