Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'LMI AEROSPACE INC | ' |
Entity Central Index Key | '0001059562 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 12,698,070 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $2,460 | $1,572 |
Accounts receivable, net | 64,739 | 72,853 |
Inventories | 111,099 | 113,178 |
Prepaid Expense and Other Assets, Current | 7,077 | 4,411 |
Deferred income taxes | 3,228 | 2,693 |
Total current assets | 188,603 | 194,707 |
Property, plant and equipment, net | 96,477 | 103,375 |
Goodwill | 113,223 | 113,223 |
Intangible assets, net | 52,072 | 55,465 |
Other assets | 13,851 | 13,281 |
Total assets | 464,226 | 480,051 |
Current liabilities: | ' | ' |
Accounts payable | 20,620 | 19,388 |
Accrued expenses | 23,793 | 19,082 |
Current installments of long-term debt and capital lease obligations | 3,142 | 5,242 |
Total current liabilities | 47,555 | 43,712 |
Long-term liabilities: | ' | ' |
Long-term debt and capital lease obligations, less current installments | 269,571 | 285,369 |
Other long-term liabilities | 2,997 | 3,915 |
Deferred income taxes | 3,944 | 2,911 |
Total long-term liabilities | 276,512 | 292,195 |
Shareholders’ equity: | ' | ' |
Common stock, $0.02 par value per share; authorized 28,000,000 shares; issued 13,089,600, and 12,873,208 shares at September 30, 2014 and December 31, 2013, respectively | 261 | 257 |
Preferred stock, $0.02 par value per share; authorized 2,000,000 shares; none issued at either date | 0 | 0 |
Additional paid-in capital | 94,941 | 92,692 |
Accumulated other comprehensive income (loss) | -89 | -507 |
Treasury stock, at cost, 32,162 and 22,321 shares at September 30, 2014 and December 31, 2013, respectively | -401 | -202 |
Retained earnings | 45,447 | 51,904 |
Total shareholders’ equity | 140,159 | 144,144 |
Total liabilities and shareholders' equity | $464,226 | $480,051 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Shareholders’ equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.02 | $0.02 |
Common stock, authorized shares (in shares) | 28,000,000 | 28,000,000 |
Common stock, shares issued (in shares) | 13,049,981 | 12,873,208 |
Preferred stock, par value (in dollars per share) | $0.02 | $0.02 |
Preferred stock, authorized shares (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock, at cost (in shares) | 37,291 | 22,321 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Sales and service revenue | ' | ' | ' | ' |
Product sales | $81,693 | $81,076 | $245,349 | $246,343 |
Service revenue | 15,642 | 23,580 | 53,674 | 69,844 |
Net sales | 97,335 | 104,656 | 299,023 | 316,187 |
Cost of sales and service revenue | ' | ' | ' | ' |
Cost of product sales | 61,535 | 63,579 | 195,170 | 192,309 |
Cost of service revenue | 13,757 | 20,659 | 45,215 | 61,565 |
Cost of sales | 75,292 | 84,238 | 240,385 | 253,874 |
Gross profit | 22,043 | 20,418 | 58,638 | 62,313 |
Selling, general and administrative expenses | 14,615 | 13,783 | 41,770 | 41,862 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 0 | 0 | 0 | -7,950 |
Asset Impairment Charges | 0 | 0 | 0 | 4,222 |
Restructuring expense | 765 | 0 | 2,288 | 0 |
Income from operations | 6,663 | 6,635 | 14,580 | 24,179 |
Other (expense) income: | ' | ' | ' | ' |
Interest expense | -5,946 | -4,328 | -23,800 | -12,485 |
Other, net | -75 | 49 | 205 | 449 |
Total other expense | -6,021 | -4,279 | -23,595 | -12,036 |
Income (loss) before income taxes | 642 | 2,356 | -9,015 | 12,143 |
(Benefit) provision for income taxes | -754 | 281 | -2,557 | 3,567 |
Net income (loss) | 1,396 | 2,075 | -6,458 | 8,576 |
Other comprehensive income (expense): | ' | ' | ' | ' |
Change in foreign currency translation adjustment | -112 | 118 | -18 | -19 |
Reclassification adjustment for losses on interest rate hedges included in net earnings, net of tax of $0, $0, $157 and $0 | 0 | 0 | 278 | 0 |
Unrealized gain/(loss) arising during period from interest rate hedges, net of tax of $0, ($89), $0 and ($93) | 0 | -153 | 0 | -163 |
Total comprehensive income (loss) | $1,284 | $2,040 | ($6,198) | $8,394 |
Amounts per common share: | ' | ' | ' | ' |
Net income (loss) per common share | $0.11 | $0.16 | ($0.51) | $0.68 |
Net income (loss) per common share assuming dilution | $0.11 | $0.16 | ($0.51) | $0.67 |
Weighted average common shares (in shares) | 12,740,034 | 12,617,121 | 12,704,568 | 12,604,033 |
Weighted average dilutive common shares outstanding (in shares) | 12,887,363 | 12,718,807 | 12,704,568 | 12,710,396 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $0 | ($89) | $0 | ($93) |
Reclassification adjustment for losses on interest rate hedges included in net earnings, net of tax of $0, $0, $157 and $0 | 0 | 0 | 278 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | $0 | $0 | $157 | $0 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities: | ' | ' |
Net (loss) income | ($6,458) | $8,576 |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ' | ' |
Depreciation and amortization | 17,002 | 15,230 |
Share-based Compensation | 1,442 | 1,204 |
Asset Impairment Charges | 0 | 4,222 |
Contingent consideration write-off | 0 | -7,950 |
Write off of Deferred Debt Issuance Cost | 8,464 | 0 |
Deferred Income Tax Expense (Benefit) | 147 | 3,091 |
payments for hedge, operating activities | -793 | 0 |
Other noncash items | -87 | -326 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 8,187 | -17,835 |
Inventories | 2,079 | -22,698 |
Prepaid expenses and other assets | 2,003 | 233 |
Current income taxes | -2,899 | -29 |
Accounts payable | 785 | -4,951 |
Accrued expenses | 6,144 | 2,637 |
Net cash provided (used) by operating activities | 36,016 | -18,596 |
Investing activities: | ' | ' |
Additions to property, plant and equipment | -10,302 | -21,230 |
Proceeds from sale of property, plant, and equipment | 981 | 1,942 |
Net cash used by investing activities | -9,321 | -19,288 |
Financing activities: | ' | ' |
Proceeds from issuance of debt | 250,000 | 6,160 |
Principal payments on long-term debt and notes payable | -231,898 | -4,766 |
Advances on revolving line of credit | 60,000 | 112,000 |
Payments on revolving line of credit | -96,000 | -78,000 |
Payments of Debt Issuance Costs | -7,881 | 0 |
Other, net | -28 | -304 |
Net cash (used) provided by financing activities | -25,807 | 35,090 |
Net increase (decrease) in cash and cash equivalents | 888 | -2,794 |
Cash and cash equivalents, beginning of period | 1,572 | 4,347 |
Cash and cash equivalents, end of period | 2,460 | 1,553 |
Supplemental disclosure of noncash transactions: | ' | ' |
Acquisition purchase price adjustment | 0 | 1,219 |
Defined contribution plan funding in Company stock | $848 | $901 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair representation have been included. Operating results for the nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in the Annual Report on Form 10-K of LMI Aerospace, Inc. (the "Company”) for the year ended December 31, 2013, as filed with the Securities and Exchange Commission on March 17, 2014. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from these estimates. | |
Reclassification | |
Certain reclassifications have been made to prior period data within the footnotes in order to conform to current period presentation. | |
Recent Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The standard is effective for reporting periods beginning after December 15, 2016 and early adoption is not permitted. The standard will supersede existing revenue recognition guidance, including industry-specific guidance, and will provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The standard requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The provisions of this new guidance are effective as of the beginning of the Company’s first quarter of 2017. The Company is currently evaluating the transition method to be used and the impact of adoption of this standard on its consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." The amendments in this update change the requirements for reporting discontinued operations. A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results and when the component or group of components meets the criteria to be classified as held for sale, is disposed by sale or is disposed of by other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). ASU 2014-8 is effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014. The Company has no present activity that would be impacted by this new standard. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under the new guidance, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter. This ASU is not expected to have an impact on our financial statements or disclosures. |
Accounts_Receivable_Net
Accounts Receivable, Net | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Receivables [Abstract] | ' | |||||||||||||
Accounts Receivable, Net | ' | |||||||||||||
Accounts Receivable, Net | ||||||||||||||
Accounts receivable, net consists of the following: | ||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||
Trade receivables | $ | 54,980 | $ | 66,292 | ||||||||||
Unbilled revenue | 7,368 | 4,671 | ||||||||||||
Other receivables | 2,636 | 2,070 | ||||||||||||
64,984 | 73,033 | |||||||||||||
Less: Allowance for doubtful accounts | (245 | ) | (180 | ) | ||||||||||
Accounts receivable, net | $ | 64,739 | $ | 72,853 | ||||||||||
Under contract accounting, unbilled revenues arise when the sales or revenues based on performance attainment, though appropriately recognized, cannot be billed yet under terms of the contract as of the balance sheet date. Included in unbilled revenue at September 30, 2014 and December 31, 2013 are $424 and $2,034, respectively, related to unpriced change orders or claims that are subject to negotiation. The final resolution of these unpriced items could result in a change in the revenue recognized to date on the associated contracts. | ||||||||||||||
Accounts receivable expected to be collected after one year is not material. | ||||||||||||||
The Company records changes in contract estimates using the cumulative catch-up method in accordance with the Revenue Recognition topic of the FASB Accounting Standards Codification. Cumulative catch-up adjustments had the following impacts to operating income for the periods presented: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Favorable adjustments | $ | 4,898 | $ | 397 | $ | 5,620 | $ | 106 | ||||||
Unfavorable adjustments | (545 | ) | (522 | ) | (727 | ) | (1,155 | ) | ||||||
Net favorable (unfavorable) operating income adjustments | $ | 4,353 | $ | (125 | ) | $ | 4,893 | $ | (1,049 | ) | ||||
The Company was engaged in a contract at December 31, 2013 where estimated costs exceeded total contract revenue. A change has been agreed to that resulted in the favorable settlement of an unpriced change order related to this contract. In addition, the Company secured more favorable future material pricing with respect to this contract as engineering changes to the related assemblies had stabilized. As a result, contract costs are no longer expected to exceed revenue and the remaining related loss reserve, which was originally recorded as an adjustment to goodwill on the Valent acquisition, was reversed in the quarter ended September 30, 2014, resulting in a favorable cumulative catch up adjustment. The impact of reversing the loss reserve was $4,602 and $5,267 for the three and nine months ended September 30, 2014 and was recorded in the cost of goods sold section of the Consolidated Statements of Comprehensive Income (Loss). |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist of the following: | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Raw materials | $ | 17,569 | $ | 17,099 | ||||
Work in progress | 21,729 | 21,605 | ||||||
Manufactured and purchased components | 22,323 | 21,675 | ||||||
Finished goods | 29,789 | 40,572 | ||||||
Product inventory | 91,410 | 100,951 | ||||||
Capitalized contract costs (1) | 19,689 | 12,227 | ||||||
Total inventories | $ | 111,099 | $ | 113,178 | ||||
(1) Net of a loss reserve on long-term production contracts of $0 and $2,057 as of September 30, 2014 and December 31, 2013 respectively. | ||||||||
Inventories include capitalized contract costs relating to programs and contracts with long-term production cycles, substantially all of which are not expected to be realized within one year. The Company believes these amounts will be fully recovered over the life of the contracts. Anticipated losses on contracts are recognized, when required, and reported as a reduction of related contract costs recorded in inventory and as additional cost of sales. The Company was engaged in a contract at December 31, 2013 where estimated costs exceeded the total contract revenue. At December 31, 2013, a provision for the remaining estimated loss on this contract of $5,222 was reported as a reduction to inventory of $2,057 and an increase in accrued expenses of $3,165 in the Condensed Consolidated Balance Sheet. As discussed in Note 2, this loss reserve was reversed in the quarter ended September 30, 2014. At September 30, 2014 the Company is no longer engaged in any contracts that would require it to record a loss reserve. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The following table summarizes the net carrying amount of goodwill by segment at September 30, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||||
Engineering | ||||||||||||||||||||||||
Aerostructures | Services | Total | ||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Balance at: | ||||||||||||||||||||||||
Gross Goodwill | $ | 141,953 | $ | 141,953 | $ | 50,741 | $ | 50,741 | $ | 192,694 | $ | 192,694 | ||||||||||||
Accumulated impairment loss | (79,471 | ) | (79,471 | ) | — | — | (79,471 | ) | (79,471 | ) | ||||||||||||||
Net Goodwill | $ | 62,482 | $ | 62,482 | $ | 50,741 | $ | 50,741 | $ | 113,223 | $ | 113,223 | ||||||||||||
The December 2012 acquisition of Valent Aerostructures, LLC ("Valent") accounted for $56,288 of the net goodwill balance at September 30, 2014 and December 31, 2013. A goodwill impairment charge of $73,528 was recorded in the fourth quarter of 2013 related to the Valent acquisition. The fair value for the remaining net goodwill in the Aerostructures segment of $6,194 exceeded its carrying value at December 31, 2013. Net goodwill at September 30, 2014 and December 31, 2013 also included an impairment charge of $5,943, for an acquisition that was fully impaired. | ||||||||||||||||||||||||
The fair value of the net goodwill in Engineering Services exceeded its carrying value at December 31, 2013. | ||||||||||||||||||||||||
The carrying value of goodwill is assessed at least annually, during the fourth quarter, unless a triggering event occurs, and an impairment charge is recorded if appropriate. In the quarter and nine months ended September 30, 2014, no triggering event occurred that would cause the Company to assess the carrying value of goodwill. | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
Intangible assets primarily consist of trademarks and customer intangibles. The carrying values were as follows: | ||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||
Trademarks | $ | 778 | $ | 778 | ||||||||||||||||||||
Customer intangible assets | 68,991 | 68,991 | ||||||||||||||||||||||
Other | 1,274 | 1,481 | ||||||||||||||||||||||
Accumulated amortization | (18,971 | ) | (15,785 | ) | ||||||||||||||||||||
Intangible assets, net | $ | 52,072 | $ | 55,465 | ||||||||||||||||||||
Intangibles amortization expense was $1,131 and $1,162 for the three months ended September 30, 2014 and 2013, respectively and $3,393 and $3,485 for the nine months ended September 30, 2014 and 2013, respectively. The accumulated amortization balances at September 30, 2014 and December 31, 2013, respectively, were $628 and $475 for trademarks, $17,675 and $14,555 for customer intangible assets, and $668 and $755 for other intangible assets. Valent intangible assets are amortized on the straight-line method as this approximates the pattern of economic benefit of each intangible asset. All other remaining intangible assets are not material. | ||||||||||||||||||||||||
The Company has experienced a slowdown in the demand for design engineering services over the past few quarters, which the Company believes is cyclical in nature. This cyclical demand has led to lower than originally expected revenue. Despite the reduction in revenue, this segment realized growth in profitability in the first two quarters of 2014 as the Company removed, and continues its efforts to remove, costs from the segment. The segment also generated significant cash flow during the first nine months of 2014. However, in the quarter ended September 30, 2014, the segment recognized significantly lower sales and gross margin when compared to each of the last four quarters. If the segment were to continue to recognize the revenues and margins experienced in the third quarter of 2014, it could lead to a triggering event and potential impairment for intangible assets and goodwill. | ||||||||||||||||||||||||
Further, our Valent acquisition has not achieved the sales and profitability we originally expected due, in substantial part, to delays in customer awards and longer ramp up times on new contracts as they migrate to full production. Although we believe this lower sales growth is temporary, continued lower sales growth could lead to a triggering event and potential additional impairment to intangible assets and goodwill. See Note 7 to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2013 for additional discussion on the goodwill impairment charge recorded in the fourth quarter of 2013. |
Other_Assets_Notes
Other Assets (Notes) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Other Assets Disclosure [Text Block] | ' | |||||||
Other assets consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Debt issuance cost, net (1) | $ | 8,929 | $ | 11,094 | ||||
Asset held for sale (2) | 2,925 | — | ||||||
Other | 1,997 | 2,187 | ||||||
Total other assets | $ | 13,851 | $ | 13,281 | ||||
(1) In the nine months ended September 30, 2014, the Company refinanced its texisting long term indebtedness, which resulted in the settlement and termination of its then existing credit agreement. As a result of this refinancing and other retirements of debt, unamortized debt issuance costs of $124 and $8,464 were written off and recognized as interest expense in the three and nine months ending September 30, 2014. As part of the refinancing, the Company issued second priority senior secured notes and concurrently modified its revolving credit agreement. Debt issuance costs of $7,954 were incurred as a result of these transactions and are being amortized over the term of the notes and revolving credit agreement, which is five years. | ||||||||
(2) Represents the fair value, less costs to sell, of the Company aircraft. The aircraft was recorded in property, plant, and equipment, net in prior periods. The carrying value of the aircraft was reduced to its net realizable value of $2,925 with a charge of $421 in the quarter ended September 30, 2014, which is reflected in selling, general, and administration expenses in the Condensed Consolidated Statement of Comprehensive Income (Loss). |
Longterm_Debt_and_Capital_Leas
Long-term Debt and Capital Lease Obligations | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt and Capital Lease Obligations | ' | |||||||
Long-term Debt and Capital Lease Obligations | ||||||||
Long-term debt and capital lease obligations consist of the following: | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Second priority senior secured notes at a fixed rate of 7.375% at September 30, 2014 | $ | 245,000 | $ | — | ||||
Term loan under credit agreement, variable | — | 222,750 | ||||||
Revolver under credit agreement, variable | — | 36,000 | ||||||
Missouri IRBs at fixed rate of 2.80% at September 30, 2014 and December 31, 2013 | 7,441 | 7,756 | ||||||
Capital leases, at fixed rates ranging from 2.04% to 7.73% at September 30, 2014 and December 31, 2013, respectively | 13,605 | 14,572 | ||||||
Notes payable, principal and interest payable monthly, at fixed rates up to 3.60% at September 30, 2014 and December 31, 2013, respectively (1) | 6,667 | 9,533 | ||||||
Total debt | $ | 272,713 | $ | 290,611 | ||||
Less current installments | 3,142 | 5,242 | ||||||
Total long-term debt and capital lease obligations | $ | 269,571 | $ | 285,369 | ||||
(1) During the quarter ended September 30, 2014, the Company settled a mortgage in cash in the amount of $2,109. | ||||||||
On June 19, 2014, the Company issued $250,000 in second-priority senior secured notes maturing on June 19, 2019. During the quarter ended September 30, 2014, the Company repurchased and retired $5,000 of the outstanding notes at a premium of 1.125%, plus accrued interest. Obligations under these notes are secured by substantially all of the Company’s assets and bear interest at 7.375%, paid semi-annually in January and July, with interest payments commencing in January of 2015. Also, on June 19, 2014, the Company used the proceeds from the issuance of these notes to settle and terminate its existing term loan and also modified its revolving credit agreement. | ||||||||
The modified revolving credit agreement provides for a revolving credit facility of up to $90,000. Under the agreement, the co-collateral agents may establish a reserve against the facility. At September 30, 2014, the reserve established was $15,000, which reduced the maximum availability to $75,000. Based on the amount of eligible assets at September 30, 2014, available borrowings were further reduced to $60,385. The maximum amount, less reserves, available for borrowing at levels below $30,000 are based on a sum of 45% of eligible receivables, 30% of eligible inventories and an additional amount of eligible equipment up to 20% of total borrowings under the facility. The maximum amount, less reserves, available for borrowing at levels above $30,000 are based on a sum of 75% of eligible receivables, 45% of eligible inventories and an additional amount of eligible equipment up to 20% of total borrowings under the facility. Borrowings under the facility are secured by a first lien on substantially all of the Company’s assets and bear interest at either the LIBOR rate plus a margin of 3.00% to 3.50% or the alternate base rate (“ABR”) which is the highest of the following plus a margin of 2.00% to 2.50%, respectively, with the applicable margins for the revolving credit facility subject to a grid based on the average availability ratio of the Company for the most recently completed quarter: | ||||||||
•Prime rate, | ||||||||
•Federal funds rate plus 0.5%, or, | ||||||||
•The adjusted Eurodollar rate for an interest period of one month plus 1%. | ||||||||
For the quarter ended September 30, 2014, the actual interest rate incurred for the revolving credit facility was 4.1%. | ||||||||
The Company is required to pay a commitment fee of between 0.375% and 0.5% per annum on the unused portion of the revolving credit facility, depending on the average revolver usage during the period as compared to the total available borrowings under the facility. At September 30, 2014, the commitment fee required was 0.5%. | ||||||||
The revolving credit loan facility matures on the earlier of the fifth year anniversary date of June 19, 2019 or the date that is 91 days prior to the maturity date of the senior secured notes unless the notes are repaid, refinanced or otherwise satisfied in full. The maturity dates are subject to acceleration upon occurrence of an event of default. An event of default under the revolving credit agreement includes, among other things, failure to pay any material indebtedness, acceleration of payments by any lender prior to scheduled maturity, or judgments rendered against the Company requiring payments at or above certain levels. | ||||||||
The credit agreement contains a covenant that requires us to comply with a maximum first priority debt to EBITDA ratio on a quarterly basis. In addition, the agreement also contains certain restrictive covenants that limit and in some circumstances prohibit, our ability to, among other things, incur additional debt, sell, lease or transfer our assets, make investments, guarantee debt or obligations, create liens, and enter into certain merger, consolidation or other reorganization transactions. These restrictive covenants prohibit the Company from paying dividends. These restrictions could limit our ability to obtain future financing, make acquisitions or needed capital expenditures, withstand the current or future downturns in our business or the economy in general, conduct operations or otherwise take advantage of business opportunities that may arise, any of which could place us at a competitive disadvantage relative to our competitors that have less debt and are not subject to such restrictions. | ||||||||
At September 30, 2014, the Company was in compliance with all of its covenants and expected to be in compliance with its covenants in future periods. If the Company fails to meet any covenants in the credit facility, the Company would not be in compliance with its credit agreement and the lenders would be entitled to exercise various rights, including causing the amounts outstanding under the revolving credit facility to become immediately due and payable. |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value | |||||||||||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below: | |||||||||||||||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2: | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
Level 3: | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. | |||||||||||||||||
There were no transfers between levels during the three months ended September 30, 2014 and the year ended December 31, 2013. | |||||||||||||||||
The Company terminated and settled its interest rate derivatives on June 19, 2014 in conjunction with the settlement of its then existing credit agreement, which had a variable interest rate. | |||||||||||||||||
At September 30, 2014, the Company aircraft was listed for sale. The fair value of the aircraft was recorded in other assets in the Condensed Consolidated Balance Sheet at September 30, 2014. | |||||||||||||||||
Assets/Liabilities at Fair Value as of September 30, 2014 | |||||||||||||||||
Recurring Fair Value Measurements: | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Asset: | |||||||||||||||||
Interest rate derivatives (1) | $ | — | $ | — | $ | — | $ | — | |||||||||
Asset held for sale (2) | $ | 2,925 | $ | — | $ | 2,925 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate derivatives (1) | $ | — | $ | — | $ | — | $ | — | |||||||||
Assets/Liabilities at Fair Value as of December 31, 2013 | |||||||||||||||||
Recurring Fair Value Measurements: | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Asset: | |||||||||||||||||
Interest rate derivatives (1) | $ | 18 | $ | — | $ | 18 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate derivatives (1) | $ | 392 | $ | — | $ | 392 | $ | — | |||||||||
-1 | The fair values of interest rate derivatives are the amount the Company would receive or pay to terminate the contracts, considering quoted market prices of comparable agreements. (Also see Note 8) | ||||||||||||||||
-2 | Represents the fair value, less costs to sell, of the Company aircraft. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Derivative Financial Instruments | ' | ||||||||||
Derivative Financial Instruments | |||||||||||
On June 19, 2014, the Company terminated and settled its interest rate derivatives in conjunction with the settlement of its then existing credit agreement, which had a variable interest rate. This settlement resulted in a charge of $793 to interest expense in the Condensed Consolidated Statements of Comprehensive Income (Loss) in the nine months ended September 30, 2014. Prior to this termination and in compliance with the credit agreement, the Company purchased option and swap derivative contracts to hedge against the potential impact on earnings from an increase in market interest rates associated with the interest payments on its variable rate term credit facility. The objective of the hedge transactions was to reduce the variability of cash flows due to changes in the designated benchmark interest rate on the term debt. The derivatives were recognized in the Condensed Consolidated Balance Sheet as current assets and liabilities at fair value as follows: | |||||||||||
Derivative Asset and Liability | Location in Condensed | September 30, | December 31, | ||||||||
Consolidated Balance Sheet | 2014 | 2013 | |||||||||
Derivative designated as hedging instrument: | |||||||||||
Interest rate purchased option fair value | Other current assets | $ | — | $ | 18 | ||||||
Derivative designated as hedging instrument: | |||||||||||
Interest rate swap fair value | Other long term liabilities | $ | — | $ | 392 | ||||||
The Company designated and accounted for these swaps and purchased options as cash flow hedges of interest rate risk. The Company reported the gain or loss, net of taxes, from the effective portion of the hedge as a component of Accumulated Other Comprehensive Income (“AOCI”) deferring it and reclassifying it into earnings in the same period or periods in which the hedged transaction affects earnings and in the same line item on the Condensed Consolidated Statements of Comprehensive Income (Loss) as the impact of the hedged transaction. The cumulative amounts reported in AOCI related to these derivatives were reclassified from AOCI to interest expense on the Condensed Consolidated Statements of Comprehensive Income (Loss) in the quarter ended June 30, 2014. The Company did not use these derivative instruments for trading or speculative purposes. | |||||||||||
The following amounts are included in OCI and earnings for the three and nine months ended September 30, 2014: | |||||||||||
Derivatives in Cash Flow Hedging Relationship | Amount of Gain (Loss) Recognized in AOCI, net of tax, on Derivative (Effective Portion) | Amount of | |||||||||
(Gain) Loss Reclassified | |||||||||||
from AOCI | |||||||||||
into | |||||||||||
Income (Effective Portion) | |||||||||||
Three Months Ended September 30, 2014 | |||||||||||
Interest rate derivatives | $ | — | $ | — | |||||||
Nine Months Ended September 30, 2014 | |||||||||||
Interest rate derivatives | $ | — | $ | 793 | |||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Common Share | ' | |||||||||||||||
Earnings Per Common Share | ||||||||||||||||
Basic net income per common share is based upon the weighted average number of common shares outstanding. Diluted net income per common share is based upon the weighted average number of common shares outstanding, including the dilutive effect of restricted stock, using the if-converted methods. The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerators | ||||||||||||||||
Net income (loss) | $ | 1,396 | $ | 2,075 | $ | (6,458 | ) | $ | 8,576 | |||||||
Denominators | ||||||||||||||||
Weighted average common shares - basic | 12,740,034 | 12,617,121 | 12,704,568 | 12,604,033 | ||||||||||||
Dilutive effect of restricted stock | 147,329 | 101,686 | — | 106,363 | ||||||||||||
Weighted average common shares - diluted | 12,887,363 | 12,718,807 | 12,704,568 | 12,710,396 | ||||||||||||
Basic earnings (loss) per share | $ | 0.11 | $ | 0.16 | $ | (0.51 | ) | $ | 0.68 | |||||||
Diluted earnings (loss) per share | $ | 0.11 | $ | 0.16 | $ | (0.51 | ) | $ | 0.67 | |||||||
For the nine months ended September 30, 2014, 145,710 shares are not included in the calculation of diluted earnings per share, as their inclusion would have been anti-dilutive. These securities could be dilutive in future periods. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Stock-Based Compensation | ' | |||||||
Stock-Based Compensation | ||||||||
On July 7, 2005, the Company’s shareholders approved the LMI Aerospace, Inc. 2005 Long-term Incentive Plan (the “Plan”). The Plan provides for the grant of non-qualified stock options, incentive stock options, shares of restricted stock, restricted stock units, stock appreciation rights, performance awards and other share-based grants and cash bonus awards to employees and directors. All share-based grants or awards are subject to a time-based vesting schedule. | ||||||||
A summary of the activity for non-vested restricted stock awards under the Plan is presented below: | ||||||||
Restricted Stock Awards | Shares | Weighted | ||||||
Average Grant Date Fair Value | ||||||||
Outstanding at January 1, 2014 | 219,751 | $ | 19.74 | |||||
Granted | 172,611 | 14.07 | ||||||
Vested | (69,046 | ) | 18.58 | |||||
Forfeited | (34,091 | ) | 17.95 | |||||
Outstanding at September 30, 2014 | 289,225 | $ | 16.85 | |||||
Common stock compensation expense related to restricted stock awards granted under the Plan was $765 and $451 for the three months ended September 30, 2014 and 2013, respectively, and $1,442 and $1,204 for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||
Total unrecognized compensation costs related to non-vested, share-based awards granted or awarded under the Plan were $2,560 and $1,857 at September 30, 2014 and December 31, 2013, respectively. These costs are expected to be recognized over a weighted average period of 1.7 years and 1.2 years, respectively. |
Business_Segment_Information
Business Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Business Segment Information | ' | |||||||||||||||
Business Segment Information | ||||||||||||||||
The Company is organized into two reportable segments: the Aerostructures segment and the Engineering Services segment. Through its Aerostructures segment, the Company primarily fabricates, machines, finishes, integrates, assembles and kits formed close tolerance aluminum, specialty alloy and composite components and higher level assemblies for use by the aerospace and defense industries. It manufactures more than 40,000 products for integration into a variety of aircraft platforms manufactured by leading original equipment manufacturers and Tier 1 aerospace suppliers. Through its Engineering Services segment, the Company provides a complete range of design, engineering and program management services, supporting aircraft product lifecycles from conceptual design, analysis and certification through production support, fleet support and service life extensions via a complete turnkey engineering solution. | ||||||||||||||||
Corporate assets, liabilities and expenses related to the Company's corporate offices, except for interest expense and income taxes, primarily support, and are recorded in, the Aerostructures segment. The table below presents information about reported segments on the same basis used internally to evaluate segment performance: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales: | ||||||||||||||||
Aerostructures | $ | 82,914 | $ | 85,075 | $ | 249,101 | $ | 252,844 | ||||||||
Engineering Services | 14,714 | 20,206 | 51,235 | 65,373 | ||||||||||||
Eliminations | (293 | ) | (625 | ) | (1,313 | ) | (2,030 | ) | ||||||||
$ | 97,335 | $ | 104,656 | $ | 299,023 | $ | 316,187 | |||||||||
Income from operations: | ||||||||||||||||
Aerostructures | $ | 7,888 | $ | 6,015 | $ | 14,010 | $ | 27,095 | ||||||||
Engineering Services | (1,216 | ) | 742 | 666 | (2,933 | ) | ||||||||||
Eliminations | (9 | ) | (122 | ) | (96 | ) | 17 | |||||||||
$ | 6,663 | $ | 6,635 | $ | 14,580 | $ | 24,179 | |||||||||
Customer_Concentration
Customer Concentration | 9 Months Ended |
Sep. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Customer Concentration | ' |
Customer Concentration | |
Direct sales, through both of the Company’s business segments, to our largest customer, Spirit Aerosystems (“Spirit”), accounted for 34.4% and 28.4% of the Company’s total revenues for the three months ended September 30, 2014 and 2013, respectively. Direct sales to Spirit accounted for 33.7% and 28.8% of the Company's total revenues for the nine months ended September 30, 2014 and 2013, respectively. Accounts receivable balances related to Spirit were 33.1% and 27.8% of the Company’s total accounts receivable balance at September 30, 2014 and December 31, 2013, respectively. | |
Direct sales, through both of the Company’s business segments, to our second largest customer, Gulfstream Aerospace Corporation, a General Dynamics company (“Gulfstream”), accounted for 14.3% and 10.9% of the Company’s total revenues for the three months ended September 30, 2014 and 2013, respectively. Direct sales to Gulfstream accounted for 15.3% and 14.8% of the Company's total revenues for the nine months ended September 30, 2014 and 2013, respectively. Accounts receivable balances related to Gulfstream were 11.6% and 8.5% of the Company’s total accounts receivable balance at September 30, 2014 and December 31, 2013, respectively. | |
Direct sales, through both of the Company’s business segments, to our third largest customer, The Boeing Company (“Boeing”), accounted for 10.0% and 12.8% of the Company’s total revenues for the three months ended September 30, 2014 and 2013, respectively. Direct sales to Boeing accounted for 10.9% and 15.2% of the Company's total revenues for the nine months ended September 30, 2014 and 2013, respectively. Accounts receivable balances resulting from direct sales to Boeing were 5.7% and 5.7% of the Company’s total accounts receivable balance at September 30, 2014 and December 31, 2013, respectively. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company recognized an income tax benefit, net for the three and nine months ended September 30, 2014 of $754 and $2,557, respectively. The Company recognized income tax expense for the three and nine months ended September 30, 2013 of $281 and $3,567, respectively. The Company's tax benefit in the three and nine months ended September 30, 2014 reflects the tax benefit of $295 and $2,877, respectively, anticipated with the decision to carry back the net operating loss recognized in 2013. The Company has established a valuation allowance on tax benefits generated in the current year, which is adjusted on a quarterly basis. The tax expense recorded in the current year periods reflects the taxes due in states where the Company generated taxable income and an increase in deferred tax liabilities related to an indefinite lived intangible asset. |
Restructuring
Restructuring | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring | ' | |||||||||||
Restructuring | ||||||||||||
During the fourth quarter of 2013, the Company committed to a restructuring plan that resulted in the closure of its Precise Machine facility located in Fort Worth, Texas. As a result, the Company recognized severance expense of $453 in the year ended December 31, 2013 related to the closure. A restructuring benefit of $18 and expense of $287 were recognized by the Company in the three and nine months ended September 30, 2014. These restructuring benefits and expenses were reflected in the selling, general, and administrative section on a separate line of the Condensed Consolidated Statements of Comprehensive Income (Loss). The Company completed this restructuring plan in the second quarter of 2014. | ||||||||||||
In addition, on January 23, 2014, the Company announced plans to relocate the work performed relative to machining operations at its Savannah, Georgia facility to other locations within the company. As a result, severance expense of $0 and $47 was recognized in the three and nine months ended September 30, 2014. These restructuring expenses were reflected in the selling, general, and administrative section on a separate line of the Consolidated Statements of Comprehensive Income (Loss). The Company completed this restructuring plan in the second quarter of 2014. | ||||||||||||
In the three and nine months ended September 30, 2014, the Company recognized additional severance expense of $783 and $1,954 relative to other employment separation activities. These activities are part of the Company's overall reorganization and cost reduction initiatives. These restructuring expenses were reflected in the selling, general, and administrative section on a separate line of the Consolidated Statements of Comprehensive Income (Loss). | ||||||||||||
Cash payments were made associated with these restructuring plans of $253 and $1,441 in the three and nine months ended September 30, 2014, respectively. | ||||||||||||
The following table summarizes the incurred and expected charges associated with these restructuring activities: | ||||||||||||
Expense | Remaining | Total Expense | ||||||||||
Incurred through | Expense to be | Expected to be | ||||||||||
30-Sep-14 | Incurred | Incurred | ||||||||||
(In Thousands) | ||||||||||||
Employee severance arrangement - Precise closure | $ | 615 | $ | — | $ | 615 | ||||||
Employee severance arrangement - Savannah | 47 | — | 47 | |||||||||
Other employee severance arrangements | 1,954 | — | 1,954 | |||||||||
Lease termination costs - Precise closure | 124 | — | 124 | |||||||||
Total | $ | 2,740 | $ | — | $ | 2,740 | ||||||
In addition to the restructuring expenses detailed in the table above, the Company incurred and recognized additional project expenses of approximately $364 as of September 30, 2014, associated with the integration of work previously performed at the Precise Machine facility. The Company also incurred and recognized approximately $500 in other project costs as of September 30, 2014, largely related to accelerated depreciation on property, plant and equipment at its Savannah facility. These expenses are recognized in the cost of sales and selling, general, and administrative expense in the Consolidated Statements of Comprehensive Income (Loss). | ||||||||||||
The following table summarizes restructuring activity related to the Precise Machine facility closure, the Savannah machining relocation, and other employee separation activities: | ||||||||||||
Employee | ||||||||||||
Severance | ||||||||||||
Accrued restructuring balance as of December 31, 2013 | $ | 422 | ||||||||||
Accrual additions | 2,281 | |||||||||||
Cash payments | (1,441 | ) | ||||||||||
Accrued restructuring balance as of September 30, 2014 | $ | 1,262 | ||||||||||
Accrued restructuring of $1,262 at September 30, 2014 is expected to be paid over the next three quarters. |
Legal_Contingencies
Legal Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Legal Contingencies | ' |
Legal Contingencies | |
The Company has been named as a defendant in certain pending lawsuits in the normal course of business (the “Pending Lawsuits”). It is the policy of management to disclose the amount or range of reasonably possible losses. In the opinion of management, after consulting with legal counsel, any losses resulting from Pending Lawsuits should not have a material effect on the Company’s financial position, cash flows or results of operations. | |
As of September 30, 2014, the Company is the subject of proceedings by the Environmental Protection Agency (“EPA”) and Department of Justice ("DoJ") as a result of allegations of low pH wastewater releases at the facility of Ozark Mountain Technologies ("OMT"), a subsidiary of the Company located in Cuba, Missouri, (the "Waste Water Allegations") and could become the subject of proceedings by the EPA as a result of the Voluntarily Disclosed Matters (as defined in the Company's 2013 Form 10-K, Part I, Item 1. Business, Governmental Regulations and Environmental Compliance) related to OMT. | |
On May 6, 2014, the Company first received information from DoJ that indicated DoJ is prepared to move forward with a one count indictment naming OMT as a defendant with respect to the Waste Water Allegations. DoJ also advised that the alleged violations may subject the Company to fines. The full extent of the actions to be taken by DoJ related to the Waste Water Allegations remains uncertain, but it is probable the Company will incur losses related to these issues. | |
Based on more recent discussions with the DoJ, the Company believes that an updated reasonable range for the fines, penalties and related legal fees associated with the Waste Water Allegations is from $761 to $1,000. However, there are still significant uncertainties related to the final outcome and therefore, the Company recognized the minimum value of the range of possible outcomes in the quarter ended September 30, 2014, and has established a loss contingency of $761. The Company is continuing to work with the DoJ to reach a resolution of this matter. The extent of the actions, if any, to be taken by the EPA with respect to the Voluntarily Disclosed Matters remain uncertain and the losses, if any, cannot be estimated. | |
As further disclosed in the Company's 2013 Form 10-K, Item 3 - Legal Proceedings, the Company believes a proceeding by the Missouri Attorney General is contemplated with respect to alleged violations of certain state environmental regulations by OMT. After consulting with legal counsel and based on the discussions the Company has had with the Missouri Attorney General’s office, the Company has established a loss contingency of $175 which represents management’s current estimate of the penalty the Missouri Attorney General is contemplating assessing on the Company. | |
Legal expenses, fines, and penalties recorded relative to the above matters were $462 and $996 for the three and nine months ended September 30, 2014, respectively. These expenses are reflected in selling, general, and administrative expenses in the Condensed Consolidated Statement of Comprehensive Income (Loss). | |
OMT became a subsidiary of the Company as a result of the Company’s acquisition of Valent in December 2012. The Company believes certain environmental representations set forth in the purchase agreement pursuant to which Valent acquired OMT, and the purchase agreement pursuant to which the Company acquired Valent, provide the Company with certain rights of indemnification with respect to the matters disclosed herein. The Company also has insurance policies that it believes covers various environmental issues at Valent and its subsidiaries, including OMT, and breaches by Valent and OMT of their respective environmental representations and warranties in each of the purchase agreements. As a result, the Company believes its rights of indemnification and insurance coverage may provide for a recovery of some of the costs associated with the matters disclosed herein. We cannot provide any assurance, however, that we will ultimately prevail in any claim for indemnification or secure insurance proceeds from our insurance policies. |
Subsequent_Events_Subsequent_E
Subsequent Events Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Subsequent Events | |
On November 5, 2014, the Company committed to a restructuring plan (the “Plan”) that will result in relocation of the St. Charles machine part operations to other facilities within the Company. As part of the Plan, the St. Charles machine part operations are expected to cease in the second quarter of 2015. Necessary equipment and assets used in these machining operations will be relocated to other facilities. | |
The Company estimates that it will incur aggregate pre-tax charges of between $900 and $1,100 to implement the Plan, which includes (i) anticipated expenditures of between $300 and $400 in employee severance and retention costs and (ii) approximately $600 to $700 in other shut-down related expenditures. The Company expects to pay these charges in cash. The Company will record charges starting in the fourth quarter of 2014 continuing into the second quarter of 2015. The Plan is expected to generate over $1,500 in recurring annual savings. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair representation have been included. Operating results for the nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in the Annual Report on Form 10-K of LMI Aerospace, Inc. (the "Company”) for the year ended December 31, 2013, as filed with the Securities and Exchange Commission on March 17, 2014. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from these estimates. | |
Recent Accounting Standards | ' |
Recent Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The standard is effective for reporting periods beginning after December 15, 2016 and early adoption is not permitted. The standard will supersede existing revenue recognition guidance, including industry-specific guidance, and will provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The standard requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The provisions of this new guidance are effective as of the beginning of the Company’s first quarter of 2017. The Company is currently evaluating the transition method to be used and the impact of adoption of this standard on its consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." The amendments in this update change the requirements for reporting discontinued operations. A discontinued operation may include a component of an entity or a group of components of an entity, or a business or nonprofit activity. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results and when the component or group of components meets the criteria to be classified as held for sale, is disposed by sale or is disposed of by other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). ASU 2014-8 is effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014. The Company has no present activity that would be impacted by this new standard. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under the new guidance, management will be required to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The provisions of this ASU are effective for annual periods beginning after December 15, 2016, and for annual and interim periods thereafter. This ASU is not expected to have an impact on our financial statements or disclosures. |
Accounts_Receivable_Net_Tables
Accounts Receivable, Net (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Receivables [Abstract] | ' | |||||||||||||
Schedule of accounts receivable, net | ' | |||||||||||||
Accounts receivable, net consists of the following: | ||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||
Trade receivables | $ | 54,980 | $ | 66,292 | ||||||||||
Unbilled revenue | 7,368 | 4,671 | ||||||||||||
Other receivables | 2,636 | 2,070 | ||||||||||||
64,984 | 73,033 | |||||||||||||
Less: Allowance for doubtful accounts | (245 | ) | (180 | ) | ||||||||||
Accounts receivable, net | $ | 64,739 | $ | 72,853 | ||||||||||
Impact of operating income | ' | |||||||||||||
Cumulative catch-up adjustments had the following impacts to operating income for the periods presented: | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Favorable adjustments | $ | 4,898 | $ | 397 | $ | 5,620 | $ | 106 | ||||||
Unfavorable adjustments | (545 | ) | (522 | ) | (727 | ) | (1,155 | ) | ||||||
Net favorable (unfavorable) operating income adjustments | $ | 4,353 | $ | (125 | ) | $ | 4,893 | $ | (1,049 | ) | ||||
The Company was engaged in a contract at December 31, 2013 where estimated costs exceeded total contract revenue. A change has been agreed to that resulted in the favorable settlement of an unpriced change order related to this contract. In addition, the Company secured more favorable future material pricing with respect to this contract as engineering changes to the related assemblies had stabilized. As a result, contract costs are no longer expected to exceed revenue and the remaining related loss reserve, which was originally recorded as an adjustment to goodwill on the Valent acquisition, was reversed in the quarter ended September 30, 2014, resulting in a favorable cumulative catch up adjustment. The impact of reversing the loss reserve was $4,602 and $5,267 for the three and nine months ended September 30, 2014 and was recorded in the cost of goods sold section of the Consolidated Statements of Comprehensive Income (Loss). |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consist of the following: | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Raw materials | $ | 17,569 | $ | 17,099 | ||||
Work in progress | 21,729 | 21,605 | ||||||
Manufactured and purchased components | 22,323 | 21,675 | ||||||
Finished goods | 29,789 | 40,572 | ||||||
Product inventory | 91,410 | 100,951 | ||||||
Capitalized contract costs (1) | 19,689 | 12,227 | ||||||
Total inventories | $ | 111,099 | $ | 113,178 | ||||
(1) Net of a loss reserve on long-term production contracts of $0 and $2,057 as of September 30, 2014 and December 31, 2013 respectively. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | |||||||||||||||||||||||
The following table summarizes the net carrying amount of goodwill by segment at September 30, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||||
Engineering | ||||||||||||||||||||||||
Aerostructures | Services | Total | ||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Balance at: | ||||||||||||||||||||||||
Gross Goodwill | $ | 141,953 | $ | 141,953 | $ | 50,741 | $ | 50,741 | $ | 192,694 | $ | 192,694 | ||||||||||||
Accumulated impairment loss | (79,471 | ) | (79,471 | ) | — | — | (79,471 | ) | (79,471 | ) | ||||||||||||||
Net Goodwill | $ | 62,482 | $ | 62,482 | $ | 50,741 | $ | 50,741 | $ | 113,223 | $ | 113,223 | ||||||||||||
Finite and infinite lived intangible assets | ' | |||||||||||||||||||||||
Intangible assets primarily consist of trademarks and customer intangibles. The carrying values were as follows: | ||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||
Trademarks | $ | 778 | $ | 778 | ||||||||||||||||||||
Customer intangible assets | 68,991 | 68,991 | ||||||||||||||||||||||
Other | 1,274 | 1,481 | ||||||||||||||||||||||
Accumulated amortization | (18,971 | ) | (15,785 | ) | ||||||||||||||||||||
Intangible assets, net | $ | 52,072 | $ | 55,465 | ||||||||||||||||||||
Other_Assets_Other_Assets_Tabl
Other Assets Other Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Schedule of Other Assets, Non current [Table Text Block] | ' | |||||||
Other assets consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Debt issuance cost, net (1) | $ | 8,929 | $ | 11,094 | ||||
Asset held for sale (2) | 2,925 | — | ||||||
Other | 1,997 | 2,187 | ||||||
Total other assets | $ | 13,851 | $ | 13,281 | ||||
(1) In the nine months ended September 30, 2014, the Company refinanced its texisting long term indebtedness, which resulted in the settlement and termination of its then existing credit agreement. As a result of this refinancing and other retirements of debt, unamortized debt issuance costs of $124 and $8,464 were written off and recognized as interest expense in the three and nine months ending September 30, 2014. As part of the refinancing, the Company issued second priority senior secured notes and concurrently modified its revolving credit agreement. Debt issuance costs of $7,954 were incurred as a result of these transactions and are being amortized over the term of the notes and revolving credit agreement, which is five years. | ||||||||
(2) Represents the fair value, less costs to sell, of the Company aircraft. The aircraft was recorded in property, plant, and equipment, net in prior periods. The carrying value of the aircraft was reduced to its net realizable value of $2,925 with a charge of $421 in the quarter ended September 30, 2014, which is reflected in selling, general, and administration expenses in the Condensed Consolidated Statement of Comprehensive Income (Loss). |
Longterm_Debt_and_Capital_Leas1
Long-term Debt and Capital Lease Obligations (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term debt | ' | |||||||
Long-term debt and capital lease obligations consist of the following: | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
Second priority senior secured notes at a fixed rate of 7.375% at September 30, 2014 | $ | 245,000 | $ | — | ||||
Term loan under credit agreement, variable | — | 222,750 | ||||||
Revolver under credit agreement, variable | — | 36,000 | ||||||
Missouri IRBs at fixed rate of 2.80% at September 30, 2014 and December 31, 2013 | 7,441 | 7,756 | ||||||
Capital leases, at fixed rates ranging from 2.04% to 7.73% at September 30, 2014 and December 31, 2013, respectively | 13,605 | 14,572 | ||||||
Notes payable, principal and interest payable monthly, at fixed rates up to 3.60% at September 30, 2014 and December 31, 2013, respectively (1) | 6,667 | 9,533 | ||||||
Total debt | $ | 272,713 | $ | 290,611 | ||||
Less current installments | 3,142 | 5,242 | ||||||
Total long-term debt and capital lease obligations | $ | 269,571 | $ | 285,369 | ||||
(1) During the quarter ended September 30, 2014, the Company settled a mortgage in cash in the amount of $2,109. |
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured at Fair Value (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||
Assets/Liabilities at Fair Value as of September 30, 2014 | |||||||||||||||||
Recurring Fair Value Measurements: | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Asset: | |||||||||||||||||
Interest rate derivatives (1) | $ | — | $ | — | $ | — | $ | — | |||||||||
Asset held for sale (2) | $ | 2,925 | $ | — | $ | 2,925 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate derivatives (1) | $ | — | $ | — | $ | — | $ | — | |||||||||
Assets/Liabilities at Fair Value as of December 31, 2013 | |||||||||||||||||
Recurring Fair Value Measurements: | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Asset: | |||||||||||||||||
Interest rate derivatives (1) | $ | 18 | $ | — | $ | 18 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate derivatives (1) | $ | 392 | $ | — | $ | 392 | $ | — | |||||||||
-1 | The fair values of interest rate derivatives are the amount the Company would receive or pay to terminate the contracts, considering quoted market prices of comparable agreements. (Also see Note 8) | ||||||||||||||||
-2 | Represents the fair value, less costs to sell, of the Company aircraft. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||
Derivatives Recognized in the Condensed Consolidated Balance Sheet | ' | ||||||||||
The derivatives were recognized in the Condensed Consolidated Balance Sheet as current assets and liabilities at fair value as follows: | |||||||||||
Derivative Asset and Liability | Location in Condensed | September 30, | December 31, | ||||||||
Consolidated Balance Sheet | 2014 | 2013 | |||||||||
Derivative designated as hedging instrument: | |||||||||||
Interest rate purchased option fair value | Other current assets | $ | — | $ | 18 | ||||||
Derivative designated as hedging instrument: | |||||||||||
Interest rate swap fair value | Other long term liabilities | $ | — | $ | 392 | ||||||
Derivatives Recognized in the AOCI and Earnings | ' | ||||||||||
The following amounts are included in OCI and earnings for the three and nine months ended September 30, 2014: | |||||||||||
Derivatives in Cash Flow Hedging Relationship | Amount of Gain (Loss) Recognized in AOCI, net of tax, on Derivative (Effective Portion) | Amount of | |||||||||
(Gain) Loss Reclassified | |||||||||||
from AOCI | |||||||||||
into | |||||||||||
Income (Effective Portion) | |||||||||||
Three Months Ended September 30, 2014 | |||||||||||
Interest rate derivatives | $ | — | $ | — | |||||||
Nine Months Ended September 30, 2014 | |||||||||||
Interest rate derivatives | $ | — | $ | 793 | |||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Calculation of basic and diluted earnings per share | ' | |||||||||||||||
The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerators | ||||||||||||||||
Net income (loss) | $ | 1,396 | $ | 2,075 | $ | (6,458 | ) | $ | 8,576 | |||||||
Denominators | ||||||||||||||||
Weighted average common shares - basic | 12,740,034 | 12,617,121 | 12,704,568 | 12,604,033 | ||||||||||||
Dilutive effect of restricted stock | 147,329 | 101,686 | — | 106,363 | ||||||||||||
Weighted average common shares - diluted | 12,887,363 | 12,718,807 | 12,704,568 | 12,710,396 | ||||||||||||
Basic earnings (loss) per share | $ | 0.11 | $ | 0.16 | $ | (0.51 | ) | $ | 0.68 | |||||||
Diluted earnings (loss) per share | $ | 0.11 | $ | 0.16 | $ | (0.51 | ) | $ | 0.67 | |||||||
For the nine months ended September 30, 2014, 145,710 shares are not included in the calculation of diluted earnings per share, as their inclusion would have been anti-dilutive. These securities could be dilutive in future periods. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Summary of the activity for non-vested restricted stock awards | ' | |||||||
A summary of the activity for non-vested restricted stock awards under the Plan is presented below: | ||||||||
Restricted Stock Awards | Shares | Weighted | ||||||
Average Grant Date Fair Value | ||||||||
Outstanding at January 1, 2014 | 219,751 | $ | 19.74 | |||||
Granted | 172,611 | 14.07 | ||||||
Vested | (69,046 | ) | 18.58 | |||||
Forfeited | (34,091 | ) | 17.95 | |||||
Outstanding at September 30, 2014 | 289,225 | $ | 16.85 | |||||
Business_Segment_Information_T
Business Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Information about reported segments on the basis used internally to evaluate segment performance | ' | |||||||||||||||
The table below presents information about reported segments on the same basis used internally to evaluate segment performance: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales: | ||||||||||||||||
Aerostructures | $ | 82,914 | $ | 85,075 | $ | 249,101 | $ | 252,844 | ||||||||
Engineering Services | 14,714 | 20,206 | 51,235 | 65,373 | ||||||||||||
Eliminations | (293 | ) | (625 | ) | (1,313 | ) | (2,030 | ) | ||||||||
$ | 97,335 | $ | 104,656 | $ | 299,023 | $ | 316,187 | |||||||||
Income from operations: | ||||||||||||||||
Aerostructures | $ | 7,888 | $ | 6,015 | $ | 14,010 | $ | 27,095 | ||||||||
Engineering Services | (1,216 | ) | 742 | 666 | (2,933 | ) | ||||||||||
Eliminations | (9 | ) | (122 | ) | (96 | ) | 17 | |||||||||
$ | 6,663 | $ | 6,635 | $ | 14,580 | $ | 24,179 | |||||||||
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Summary of incurred and expected restructuring charges | ' | |||||||||||
The following table summarizes the incurred and expected charges associated with these restructuring activities: | ||||||||||||
Expense | Remaining | Total Expense | ||||||||||
Incurred through | Expense to be | Expected to be | ||||||||||
30-Sep-14 | Incurred | Incurred | ||||||||||
(In Thousands) | ||||||||||||
Employee severance arrangement - Precise closure | $ | 615 | $ | — | $ | 615 | ||||||
Employee severance arrangement - Savannah | 47 | — | 47 | |||||||||
Other employee severance arrangements | 1,954 | — | 1,954 | |||||||||
Lease termination costs - Precise closure | 124 | — | 124 | |||||||||
Total | $ | 2,740 | $ | — | $ | 2,740 | ||||||
Schedule of restructuring activity | ' | |||||||||||
The following table summarizes restructuring activity related to the Precise Machine facility closure, the Savannah machining relocation, and other employee separation activities: | ||||||||||||
Employee | ||||||||||||
Severance | ||||||||||||
Accrued restructuring balance as of December 31, 2013 | $ | 422 | ||||||||||
Accrual additions | 2,281 | |||||||||||
Cash payments | (1,441 | ) | ||||||||||
Accrued restructuring balance as of September 30, 2014 | $ | 1,262 | ||||||||||
Accounts_Receivable_Net_Detail
Accounts Receivable, Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Receivables [Abstract] | ' | ' | ' | ' | ' |
Trade receivables | $54,980 | ' | $54,980 | ' | $66,292 |
Unbilled revenue | 7,368 | ' | 7,368 | ' | 4,671 |
Other receivables | 2,636 | ' | 2,636 | ' | 2,070 |
Accounts receivable, gross | 64,984 | ' | 64,984 | ' | 73,033 |
Less: Allowance for doubtful accounts | -245 | ' | -245 | ' | -180 |
Accounts receivable, net | 64,739 | ' | 64,739 | ' | 72,853 |
Inventory Amount, Unpriced Change Orders for Long-term Contracts or Programs | 424 | ' | 424 | ' | 2,034 |
Change in Accounting Estimate [Abstract] | ' | ' | ' | ' | ' |
Favorable adjustments | 4,898 | 397 | 5,620 | 106 | ' |
Unfavorable adjustments | -545 | -522 | -727 | -1,155 | ' |
Net operating income adjustments | 4,353 | -125 | 4,893 | -1,049 | ' |
Increase (Decrease) in Loss and Loss Adjustment Expense Reserve | $4,602 | ' | $5,267 | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 | ||
Inventories [Abstract] | ' | ' | ||
Raw materials | $17,099 | $17,569 | ||
Work in progress | 21,605 | 21,729 | ||
Manufactured and purchased components | 21,675 | 22,323 | ||
Finished goods | 40,572 | 29,789 | ||
Product inventory | 100,951 | 91,410 | ||
Capitalized contract costs | 12,227 | [1] | 19,689 | [1] |
Total inventories | 113,178 | 111,099 | ||
Valuation Allowances and Reserves, Balance | 2,057 | 0 | ||
Loss on Contracts | 5,222 | ' | ||
Billings in Excess of Cost | $3,165 | ' | ||
[1] | Net of a loss reserve on long-term production contracts of $0 and $2,057 as of September 30, 2014 and December 31, 2013 respectively |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Goodwill (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Valent Aerostructures, LLC [Member] | Engineering Services [Member] | Integrated Technologies, Inc. [Member] | TASS, Inc. [Member] | Tempco [Member] | Aerostructures [Member] | Aerostructures [Member] | Aerostructures [Member] | Aerostructures [Member] | Engineering Services [Member] | Engineering Services [Member] | ||
Valent Aerostructures, LLC [Member] | Valent Aerostructures, LLC [Member] | ||||||||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Gross | $192,694 | $192,694 | ' | ' | ' | ' | ' | $141,953 | $141,953 | ' | ' | $50,741 | $50,741 |
Goodwill, Impaired, Accumulated Impairment Loss | -79,471 | -79,471 | ' | ' | ' | ' | ' | -79,471 | -79,471 | ' | ' | 0 | 0 |
Goodwill acquired | 113,223 | 113,223 | ' | 50,741 | 6,194 | ' | ' | 62,482 | 62,482 | 56,288 | 56,288 | 50,741 | 50,741 |
Goodwill, Impairment Loss | ' | ' | $73,528 | ' | ' | ' | $5,943 | ' | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Trademarks | $778 | ' | $778 | ' | $778 |
Customer intangible assets | 68,991 | ' | 68,991 | ' | 68,991 |
Other | 1,274 | ' | 1,274 | ' | 1,481 |
Accumulated amortization | -18,971 | ' | -18,971 | ' | -15,785 |
Intangible assets, net | 52,072 | ' | 52,072 | ' | 55,465 |
Amortization expense on intangible assets | 1,131 | 1,162 | 3,393 | 3,485 | ' |
Trademarks [Member] | ' | ' | ' | ' | ' |
Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Accumulated amortization | -628 | ' | -628 | ' | -475 |
Customer Intangible Assets [Member] | ' | ' | ' | ' | ' |
Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Accumulated amortization | -17,675 | ' | -17,675 | ' | -14,555 |
Other [Member] | ' | ' | ' | ' | ' |
Intangible Assets [Abstract] | ' | ' | ' | ' | ' |
Accumulated amortization | ($668) | ' | ($668) | ' | ($755) |
Other_Assets_Details
Other Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Other Assets, Noncurrent [Abstract] | ' | ' | ' | ' | |||
Deferred Finance Costs, Noncurrent, Net | $8,929,000 | [1] | $8,929,000 | [1] | ' | $11,094,000 | [1] |
Other Assets Held-for-sale | 2,925,000 | [2] | 2,925,000 | [2] | ' | 0 | [2] |
Other Assets, Miscellaneous, Noncurrent | 1,997,000 | 1,997,000 | ' | 2,187,000 | |||
Other Assets, Noncurrent | 13,851,000 | 13,851,000 | ' | 13,281,000 | |||
Write off of Deferred Debt Issuance Cost | 124,000 | 8,464,000 | 0 | ' | |||
Debt Issuance Cost | ' | 7,954,000 | ' | ' | |||
Assets Held-for-sale, Other, Noncurrent | 2,925,000 | 2,925,000 | ' | ' | |||
Depreciation Expense on Reclassified Assets | $421 | ' | ' | ' | |||
[1] | In the nine months ended September 30, 2014, the Company refinanced its texisting long term indebtedness, which resulted in the settlement and termination of its then existing credit agreement. As a result of this refinancing and other retirements of debt, unamortized debt issuance costs of $124 and $8,464 were written off and recognized as interest expense in the three and nine months ending September 30, 2014. As part of the refinancing, the Company issued second priority senior secured notes and concurrently modified its revolving credit agreement. Debt issuance costs of $7,954 were incurred as a result of these transactions and are being amortized over the term of the notes and revolving credit agreement, which is five years. | ||||||
[2] | (2) Represents the fair value, less costs to sell, of the Company aircraft. The aircraft was recorded in property, plant, and equipment, net in prior periods. The carrying value of the aircraft was reduced to its net realizable value of $2,925 with a charge of $421 in the quarter ended September 30, 2014, which is reflected in selling, general, and administration expenses in the Condensed Consolidated Statement of Comprehensive Income (Loss). |
Longterm_Debt_and_Capital_Leas2
Long-term Debt and Capital Lease Obligations (Details) (USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 19, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||
Second Priority Senior Secured Notes [Member] | Second Priority Senior Secured Notes [Member] | Second Priority Senior Secured Notes [Member] | Term Loan Under Credit Agreement, Variable [Member] | Term Loan Under Credit Agreement, Variable [Member] | Revolver Under Credit Agreement, Variable [Member] | Revolver Under Credit Agreement, Variable [Member] | Missouri IRBs [Member] | Missouri IRBs [Member] | Capital Leases [Member] | Capital Leases [Member] | Capital Leases [Member] | Capital Leases [Member] | Capital Leases [Member] | Capital Leases [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | Notes Payable [Member] | ||||
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Long-term debt gross | $272,713,000 | $290,611,000 | $245,000,000 | $250,000,000 | $0 | $0 | $222,750,000 | $0 | $36,000,000 | $7,441,000 | $7,756,000 | $13,605,000 | $14,572,000 | ' | ' | ' | ' | $6,667,000 | [1] | $9,533,000 | ' | ' |
Less current installments | 3,142,000 | 5,242,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Long-term debt and capital lease obligations, less current installments | 269,571,000 | 285,369,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Fixed interest rate (in hundredths) | ' | ' | 7.38% | ' | ' | ' | ' | ' | ' | 2.80% | 2.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Fixed interest rate, minimum (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.04% | 2.04% | ' | ' | ' | ' | ' | ' | |
Fixed interest rate, maximum (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.73% | 7.73% | ' | ' | 3.60% | 3.60% | |
Debt Instrument, Repurchase Amount | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Premium Paid on Debt Repurchase | ' | ' | 1.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Repayments of Bank Debt | $2,109 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | (1) During the quarter ended September 30, 2014, the Company settled a mortgage in cash in the amount of $2,109. |
Longterm_Debt_and_Capital_Leas3
Long-term Debt and Capital Lease Obligations, Line of Credit Facility (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Line of Credit Facility [Line Items] | ' | ' |
Maximum borrowing capacity | $90,000,000 | $90,000,000 |
Reserve Against line of Credit | 15,000,000 | 15,000,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 75,000,000 | 75,000,000 |
Line of Credit Facility, Current Borrowing Capacity | $60,385,000 | $60,385,000 |
Line of Credit Facility, Borrowing Capacity, Description | 'The maximum amount, less reserves, available for borrowing at levels below $30,000 are based on a sum of 45% of eligible receivables, 30% of eligible inventories and an additional amount of eligible equipment up to 20% of total borrowings under the facility. The maximum amount, less reserves, available for borrowing at levels above $30,000 are based on a sum of 75% of eligible receivables, 45% of eligible inventories and an additional amount of eligible equipment up to 20% of total borrowings under the facility. | ' |
Line of Credit Facility, Interest Rate During Period | ' | 4.10% |
Commitment fee (in hundredths) | ' | 0.50% |
Federal funds rate [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Spread over reference rate (in hundredths) | ' | 0.50% |
One Month Eurodollar [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Spread over reference rate (in hundredths) | ' | 1.00% |
Minimum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Commitment fee (in hundredths) | ' | 0.38% |
Minimum [Member] | LIBOR [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Spread over reference rate (in hundredths) | ' | 3.00% |
Minimum [Member] | Alternate Base Rate [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Spread over reference rate (in hundredths) | ' | 2.00% |
Maximum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Commitment fee (in hundredths) | ' | 0.50% |
Maximum [Member] | LIBOR [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Spread over reference rate (in hundredths) | ' | 3.50% |
Maximum [Member] | Alternate Base Rate [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Spread over reference rate (in hundredths) | ' | 2.50% |
Assets_and_Liabilities_Measure2
Assets and Liabilities Measured at Fair Value (Details) (Recurring Fair Value Measurement [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Asset: | ' | ' | ||
Interest rate derivatives | $0 | [1] | $18 | [1] |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2,925 | [2] | ' | |
Liabilities: | ' | ' | ||
Interest rate derivatives | 0 | [1] | 392 | [1] |
Level 1 [Member] | ' | ' | ||
Asset: | ' | ' | ||
Interest rate derivatives | 0 | [1] | 0 | [1] |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | [2] | ' | |
Liabilities: | ' | ' | ||
Interest rate derivatives | 0 | [1] | 0 | [1] |
Level 2 [Member] | ' | ' | ||
Asset: | ' | ' | ||
Interest rate derivatives | 0 | [1] | 18 | [1] |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2,925 | [2] | ' | |
Liabilities: | ' | ' | ||
Interest rate derivatives | 0 | [1] | 392 | [1] |
Level 3 [Member] | ' | ' | ||
Asset: | ' | ' | ||
Interest rate derivatives | 0 | [1] | 0 | [1] |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | [2] | ' | |
Liabilities: | ' | ' | ||
Interest rate derivatives | $0 | [1] | $0 | [1] |
[1] | The fair values of interest rate derivatives are the amount the Company would receive or pay to terminate the contracts, considering quoted market prices of comparable agreements. (Also see Note 8) | |||
[2] | (2)Represents the fair value, less costs to sell, of the Company aircraft |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Derivative [Line Items] | ' |
Derivative, Loss on Derivative | $793 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments, Fair Value by Balance Sheet Location (Details) (Designated as Hedging Instrument [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Rate Contract [Member] | Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Interest rate purchased option fair value | $0 | $18 |
Interest Rate Swap [Member] | Other Noncurrent Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Interest rate swap fair value | $0 | $392 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments, Derivative Type (Details) (Interest Rate Swap [Member], Cash Flow Hedging [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount of Gain (Loss) Recognized in AOCI, net of tax, on Derivative (Effective Portion) | $0 | $0 |
Amount of (Gain) Loss Reclassified from AOCI into Income (Effective Portion) | $0 | $793 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerators [Abstract] | ' | ' | ' | ' |
Net (loss) income | $1,396 | $2,075 | ($6,458) | $8,576 |
Denominators [Abstract] | ' | ' | ' | ' |
Weighted average common shares - basic (in shares) | 12,740,034 | 12,617,121 | 12,704,568 | 12,604,033 |
Dilutive effect of restricted stock (in shares) | 147,329 | 101,686 | 0 | 106,363 |
Weighted average common shares - diluted (in shares) | 12,887,363 | 12,718,807 | 12,704,568 | 12,710,396 |
Basic earnings (loss) per share | $0.11 | $0.16 | ($0.51) | $0.68 |
Diluted earnings (loss) per share | $0.11 | $0.16 | ($0.51) | $0.67 |
Antidilutive securities excluded from computation of earnings per share (in shares) | ' | ' | 145,710 | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (Restricted Stock Awards [Member], USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Restricted Stock Awards [Member] | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' |
Outstanding beginning balance (in shares) | ' | ' | ' | 219,751 | ' |
Granted (in shares) | ' | ' | ' | 172,611 | ' |
Vested (in shares) | ' | ' | ' | -69,046 | ' |
Forfeited (in shares) | ' | ' | ' | -34,091 | ' |
Outstanding ending balance (in shares) | 289,225 | 219,751 | ' | 289,225 | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' |
Outstanding beginning balance (in dollars per share) | ' | ' | ' | $19.74 | ' |
Granted (in dollars per share) | ' | ' | ' | $14.07 | ' |
Vested (in dollars per share) | ' | ' | ' | $18.58 | ' |
Forfeited (in dollars per share) | ' | ' | ' | $17.95 | ' |
Outstanding ending balance (in dollars per share) | $16.85 | $19.74 | ' | $16.85 | ' |
Compensation expense | $765 | ' | $451 | $1,442 | $1,204 |
Unrecognized compensation costs | $2,560 | $1,857 | ' | $2,560 | ' |
Costs are expected to be recognized over a weighted average period | '1 year 8 months 0 days | '1 year 2 months 12 days | ' | ' | ' |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
segment | ||||
Segment Reporting [Abstract] | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' |
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | ' | ' | ' | ' |
Net sales | $97,335 | $104,656 | $299,023 | $316,187 |
Income from operations | 6,663 | 6,635 | 14,580 | 24,179 |
Aerostructures [Member] | ' | ' | ' | ' |
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | ' | ' | ' | ' |
Net sales | 82,914 | 85,075 | 249,101 | 252,844 |
Income from operations | 7,888 | 6,015 | 14,010 | 27,095 |
Engineering Services [Member] | ' | ' | ' | ' |
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | ' | ' | ' | ' |
Net sales | 14,714 | 20,206 | 51,235 | 65,373 |
Income from operations | -1,216 | 742 | 666 | -2,933 |
Eliminations [Member] | ' | ' | ' | ' |
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | ' | ' | ' | ' |
Net sales | -293 | -625 | -1,313 | -2,030 |
Income from operations | ($9) | ($122) | ($96) | $17 |
Customer_Concentration_Details
Customer Concentration (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
Spirit [Member] | Spirit [Member] | Spirit [Member] | Spirit [Member] | Spirit [Member] | Spirit [Member] | Gulfstream [Member] | Gulfstream [Member] | Gulfstream [Member] | Gulfstream [Member] | Gulfstream [Member] | Gulfstream [Member] | Boeing [Member] | Boeing [Member] | Boeing [Member] | Boeing [Member] | Boeing [Member] | Boeing [Member] | |
Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Revenue [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |
Revenue and Accounts Receivable, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage attributable to customer (in hundredths) | 34.40% | 28.40% | 33.70% | 28.80% | 33.10% | 27.80% | 14.30% | 10.90% | 15.30% | 14.80% | 8.50% | 11.60% | 10.00% | 12.80% | 10.90% | 15.20% | 5.70% | 5.70% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
(Benefit) provision for income taxes | ($754) | $281 | ($2,557) | $3,567 |
Carry back of income tax benefit | $295 | ' | $2,877 | ' |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and Related Cost, Expected Cost Remaining | ' | $0 | ' |
Restructuring activities, total expense to be incurred | ' | 2,740 | ' |
Precise Machine [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Integration expense resulting from reorganization activities | ' | 364 | ' |
Relocation of Machining Operations from Savannah Facility [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Integration expense resulting from reorganization activities | ' | 500 | ' |
Employee Severance [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Payments for Restructuring | 253 | 1,441 | ' |
Employee Severance [Member] | Precise Machine [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and Related Cost, Expected Cost Remaining | ' | 0 | ' |
Restructuring activities, total expense to be incurred | ' | 615 | ' |
Employee Severance [Member] | Relocation of Machining Operations from Savannah Facility [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and Related Cost, Expected Cost Remaining | ' | 0 | ' |
Restructuring activities, total expense to be incurred | ' | 47 | ' |
Employee Severance [Member] | Other Expense [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and Related Cost, Expected Cost Remaining | ' | 0 | ' |
Restructuring activities, total expense to be incurred | ' | 1,954 | ' |
Lease Termination [Member] | Precise Machine [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and Related Cost, Expected Cost Remaining | ' | 0 | ' |
Restructuring activities, total expense to be incurred | ' | 124 | ' |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | Precise Machine [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring related expenses | -18 | 287 | 453 |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | Relocation of Machining Operations from Savannah Facility [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring related expenses | 0 | 47 | ' |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | Other Expense [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring related expenses | $783 | $1,954 | ' |
Restructuring_Restructuring_Re
Restructuring - Restructuring Reserve (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | $2,740 | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Accrual additions | 765 | 0 | 2,288 | 0 |
Employee Severance [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Accrued restructuring balance as of December 31, 2013 | ' | ' | 422 | ' |
Accrual additions | ' | ' | 2,281 | ' |
Cash payments | -253 | ' | -1,441 | ' |
Accrued restructuring balance as of September 30, 2014 | 1,262 | ' | 1,262 | ' |
Precise Machine [Member] | Employee Severance [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | 615 | ' |
Precise Machine [Member] | Lease Termination [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | 124 | ' |
Relocation of Machining Operations from Savannah Facility [Member] | Employee Severance [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | 47 | ' |
Other Expense [Member] | Employee Severance [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | $1,954 | ' |
Legal_Contingencies_Details
Legal Contingencies (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Loss Contingencies [Line Items] | ' | ' |
Expense Recognized Related to Environmental Issues | $462 | $996 |
Environmental Protection Agency [Member] | Unfavorable Regulatory Action [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Reasonable minimum range fines penalties and legal fees | 761 | 761 |
Reasonable maximum range fines penalties and legal fees | 1,000 | 1,000 |
Loss contingency accrual | 761 | 761 |
Missouri Attorney General [Member] | Unfavorable Regulatory Action [Member] | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Loss contingency accrual | $175 | $175 |
Subsequent_Events_Details
Subsequent Events (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Restructuring and Related Activities, Description | 'The Company estimates that it will incur aggregate pre-tax charges of between $900 and $1,100 to implement the Plan, which includes (i) anticipated expenditures of between $300 and $400 in employee severance and retention costs and (ii) approximately $600 to $700 in other shut-down related expenditures. The Company expects to pay these charges in cash. The Company will record charges starting in the fourth quarter of 2014 continuing into the second quarter of 2015. The Plan is expected to generate over $1,500 in recurring annual savings. |