Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LMI AEROSPACE INC | |
Entity Central Index Key | 1059562 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,185,778 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $2,564 | $7,927 |
Accounts receivable, net | 60,884 | 58,234 |
Inventories | 121,746 | 114,279 |
Prepaid Expense and Other Assets, Current | 10,651 | 10,255 |
Deferred income taxes | 3,913 | 3,913 |
Total current assets | 199,758 | 194,608 |
Property, plant and equipment, net | 101,458 | 99,482 |
Goodwill | 86,784 | 86,784 |
Intangible assets, net | 49,851 | 50,940 |
Other assets | 10,162 | 10,622 |
Total assets | 448,013 | 442,436 |
Current liabilities: | ||
Accounts payable | 22,362 | 21,755 |
Accrued expenses | 20,586 | 26,072 |
Current installments of long-term debt and capital lease obligations | 3,511 | 3,424 |
Total current liabilities | 46,459 | 51,251 |
Long-term liabilities: | ||
Long-term debt and capital lease obligations, less current installments | 276,353 | 265,554 |
Other long-term liabilities | 3,231 | 3,289 |
Deferred income taxes | 4,294 | 4,207 |
Total long-term liabilities | 283,878 | 273,050 |
Shareholders’ equity: | ||
Common stock, $0.02 par value per share; authorized 28,000,000 shares; issued 13,212,669 and 13,089,003 shares at March 31, 2015 and December 31, 2014, respectively | 264 | 262 |
Preferred stock, $0.02 par value per share; authorized 2,000,000 shares; none issued at either date | 0 | 0 |
Additional paid-in capital | 96,528 | 95,460 |
Accumulated other comprehensive loss | -249 | -170 |
Treasury stock, at cost, 25,703 and 28,396 shares at March 31, 2015 and December 31, 2014, respectively | -344 | -359 |
Retained earnings | 21,477 | 22,942 |
Total shareholders’ equity | 117,676 | 118,135 |
Total liabilities and shareholders' equity | $448,013 | $442,436 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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) | 13,212,669 | 13,089,003 |
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) | 25,703 | 28,396 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Sales and service revenue | ||
Product sales | $78,457 | $76,484 |
Service revenue | 14,018 | 19,267 |
Net sales | 92,475 | 95,751 |
Cost of sales and service revenue | ||
Cost of product sales | 62,551 | 62,100 |
Cost of service revenue | 12,727 | 16,190 |
Cost of sales | 75,278 | 78,290 |
Gross profit | 17,197 | 17,461 |
Selling, general and administrative expenses | 12,609 | 13,344 |
Contingent consideration write-off | 0 | 0 |
Goodwill and intangible asset impairment | 0 | 0 |
Restructuring expense | 275 | 428 |
Income from operations | 4,313 | 3,689 |
Other (expense) income: | ||
Interest expense | -5,591 | -4,259 |
Other, net | 122 | 112 |
Total other expense | -5,469 | -4,147 |
Loss before income taxes | -1,156 | -458 |
Provision (benefit) for income taxes | 309 | -16 |
Net loss | -1,465 | -442 |
Other comprehensive income (expense): | ||
Change in foreign currency translation adjustment | -79 | 44 |
Reclassification adjustment for losses on interest rate hedges included in net earnings, net of tax of $0, $0, $157 and $0 | 0 | 0 |
Unrealized loss arising during period from interest rate hedges, net of tax of $0 for the three months ended March 31, 2014 | 0 | -129 |
Total comprehensive loss | ($1,544) | ($527) |
Amounts per common share: | ||
Net loss per common share | ($0.11) | ($0.03) |
Net loss per common share assuming dilution | ($0.11) | ($0.03) |
Weighted average common shares (in shares) | 12,794,766 | 12,663,818 |
Weighted average dilutive common shares outstanding (in shares) | 12,794,766 | 12,663,818 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $0 | ($129) |
Reclassification adjustment for losses on interest rate hedges included in net earnings, net of tax of $0, $0, $157 and $0 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | $0 | $0 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net loss | ($1,465) | ($442) |
Adjustments to reconcile net loss to net cash (used) provided by operating activities: | ||
Depreciation and amortization | 4,913 | 5,547 |
Share-based Compensation | 586 | 301 |
Goodwill and intangible asset impairment | 0 | 0 |
Deferred Income Tax Expense (Benefit) | 87 | 0 |
Other non cash items | -42 | -296 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -2,736 | 7,772 |
Inventories | -7,576 | -4,070 |
Prepaid expenses and other assets | -51 | 326 |
Current income taxes | 208 | 129 |
Accounts payable | 1,786 | 1,018 |
Accrued expenses | -4,986 | -270 |
Net cash (used) provided by operating activities | -9,276 | 10,015 |
Investing activities: | ||
Additions to property, plant and equipment | -6,879 | -4,869 |
Proceeds from sale of property, plant, and equipment | 0 | 899 |
Net cash used by investing activities | -6,879 | -3,970 |
Financing activities: | ||
Principal payments on long-term debt and notes payable | -614 | -1,294 |
Advances on revolving line of credit | 36,000 | 27,500 |
Payments on revolving line of credit | -24,500 | -31,500 |
Payments for debt issuance cost | -94 | 0 |
Other, net | 0 | -28 |
Net cash provided (used) by financing activities | 10,792 | -5,322 |
Net (decrease) increase in cash and cash equivalents | -5,363 | 723 |
Cash and cash equivalents, beginning of period | 7,927 | 1,572 |
Cash and cash equivalents, end of period | 2,564 | 2,295 |
Supplemental disclosure of noncash transactions: | ||
Defined contribution plan funding in Company stock | $710 | $848 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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 three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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, 2014, as filed with the Securities and Exchange Commission on March 16, 2015. | |
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 | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). On April 1, 2015 the FASB voted in favor of proposing a one year delay of the effective date and to permit companies to voluntarily adopt the new standard as of the original effective date. 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. | |
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under the new guidance, net debt issuance costs are to be presented in the Company's Condensed Consolidated Balance Sheets as a direct reduction from the carrying amount of the related debt liabilities, rather than as an asset. The guidance requires that the amortization of debt issuance costs continue to be reported as interest expense in the Condensed Consolidated Statement of Comprehensive Income (Loss). The recognition and measurement of debt issuance costs are not affected by this guidance. The provisions of this guidance are effective for reporting periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this guidance will not affect the Company’s results of operations, financial position or liquidity. |
Accounts_Receivable_Net
Accounts Receivable, Net | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable, Net | Accounts Receivable, Net | |||||||
Accounts receivable, net consists of the following: | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Trade receivables | $ | 53,469 | $ | 53,081 | ||||
Unbilled revenue | 5,882 | 4,036 | ||||||
Other receivables | 2,003 | 1,581 | ||||||
61,354 | 58,698 | |||||||
Less: Allowance for doubtful accounts | (470 | ) | (464 | ) | ||||
Accounts receivable, net | $ | 60,884 | $ | 58,234 | ||||
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 March 31, 2015 and December 31, 2014 are $1,409 and $549, respectively, related to unpriced change orders or claims that are subject to negotiation. The final resolution of these unpriced items could result in either a favorable or unfavorable 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 March 31, | ||||||||
2015 | 2014 | |||||||
Favorable adjustments | $ | 412 | $ | 271 | ||||
Unfavorable adjustments | (36 | ) | (306 | ) | ||||
Net favorable (unfavorable) operating income adjustments | $ | 376 | $ | (35 | ) | |||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consist of the following: | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Raw materials | $ | 16,777 | $ | 16,712 | ||||
Work in progress | 24,254 | 22,960 | ||||||
Manufactured and purchased components | 21,241 | 21,296 | ||||||
Finished goods | 31,848 | 32,403 | ||||||
Product inventory | 94,120 | 93,371 | ||||||
Capitalized contract costs | 27,626 | 20,908 | ||||||
Total inventories | $ | 121,746 | $ | 114,279 | ||||
Inventories include capitalized contract costs relating to programs and contracts with long-term production cycles. 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. At March 31, 2015 and December 31, 2014, the Company was not engaged in any contracts that would require it to record a loss reserve. | ||||||||
In January 2015, the Company signed an agreement with a key customer to form a strategically aligned partnership. This agreement extended the performance period of the statements of work for certain contracts with the customer and gives the Company preferred supplier status on certain future contracts. In accordance with the contract terms, the Company made a $4,800 cash payment of consideration in January 2015. The payment was recorded as an increase to inventory and is being amortized as a reduction to revenue over the life of the associated contracts. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014, respectively: | ||||||||||||||||||||||||
Engineering | ||||||||||||||||||||||||
Aerostructures | Services | Total | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Balance at: | ||||||||||||||||||||||||
Gross Goodwill | $ | 141,953 | $ | 141,953 | $ | 50,741 | $ | 50,741 | $ | 192,694 | $ | 192,694 | ||||||||||||
Accumulated impairment loss | (79,471 | ) | (79,471 | ) | (26,439 | ) | (26,439 | ) | (105,910 | ) | (105,910 | ) | ||||||||||||
Net Goodwill | $ | 62,482 | $ | 62,482 | $ | 24,302 | $ | 24,302 | $ | 86,784 | $ | 86,784 | ||||||||||||
A goodwill impairment charge of $26,439 was recorded in the fourth quarter of 2014 related to the Engineering Services reporting unit. The impairment charge resulted from a persistent decline in revenues and profitability in 2014. In the first quarter of 2015, the reporting unit generated positive cash flow and experienced improved operating results as compared to the fourth quarter of 2014, but did not meet expectations in terms of revenues, profits or cash flow. If the reporting unit were to continue to perform at levels lower than expected, it could lead to a triggering event and additional potential impairment for intangible assets and goodwill for the reporting unit. | ||||||||||||||||||||||||
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 three months ended March 31, 2015, 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: | ||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Trademarks | $ | 778 | $ | 778 | ||||||||||||||||||||
Customer intangible assets | 68,991 | 68,991 | ||||||||||||||||||||||
Other | 1,274 | 1,274 | ||||||||||||||||||||||
Accumulated amortization | (21,192 | ) | (20,103 | ) | ||||||||||||||||||||
Intangible assets, net | $ | 49,851 | $ | 50,940 | ||||||||||||||||||||
Intangibles amortization expense was $1,089 and $1,131 for the three months ended March 31, 2015 and March 31, 2014, respectively. The accumulated amortization balances at March 31, 2015 and December 31, 2014, respectively, were $704 and $679 for trademarks, $19,740 and $18,716 for customer intangible assets, and $748 and $708 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. |
Other_Assets_Notes
Other Assets (Notes) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Assets, Noncurrent [Abstract] | ||||||||
Other Assets Disclosure [Text Block] | Other assets consist of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Debt issuance cost, net | $ | 8,270 | $ | 8,600 | ||||
Other | 1,892 | 2,022 | ||||||
Total other assets | $ | 10,162 | $ | 10,622 | ||||
In connection with the financing of its long-term indebtedness, the Company incurred debt issuance costs of $9,928. Those costs are being amortized over the term of the indebtedness, which is five years. |
Longterm_Debt_and_Capital_Leas
Long-term Debt and Capital Lease Obligations | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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: | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Second priority senior secured notes at a fixed rate of 7.375% at March 31, 2015 | $ | 245,000 | $ | 245,000 | ||||
Revolver under credit agreement, variable | 11,500 | — | ||||||
Missouri IRBs at fixed rate of 2.80% at March 31, 2015 and December 31, 2014 | 7,228 | 7,334 | ||||||
Capital leases, at fixed rates ranging from 2.04% to 7.73% at March 31, 2015 and December 31, 2014 | 12,890 | 13,288 | ||||||
Notes payable, principal and interest payable monthly, at fixed rates up to 2.56% at March 31, 2015 and December 31, 2014, respectively | 3,246 | 3,356 | ||||||
Total debt | $ | 279,864 | $ | 268,978 | ||||
Less current installments | 3,511 | 3,424 | ||||||
Total long-term debt and capital lease obligations | $ | 276,353 | $ | 265,554 | ||||
At March 31, 2015, the Company has $245,000 in outstanding second-priority senior secured notes maturing on June 19, 2019. 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. | ||||||||
The Company's 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 March 31, 2015, the reserve established was $15,000, which reduced the maximum availability to $75,000. Based on the amount of eligible assets at March 31, 2015 and outstanding letters of credit of $1,323, available borrowings were further reduced to $56,728. 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 March 31, 2015, the actual interest rate incurred for the revolving credit facility was 5.1%. | ||||||||
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 March 31, 2015, 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 March 31, 2015, 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. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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. 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. As the derivatives were settled prior to March 31, 2015 and December 31, 2014, no assets or liabilities were recognized in the Condensed Consolidated Balance Sheet at either date. | |||||||||
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 months ended March 31, 2015 and March 31, 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 March 31, 2015 | |||||||||
Interest rate derivatives | $ | — | $ | — | |||||
Three Months Ended March 31, 2014 | |||||||||
Interest rate derivatives | $ | (129 | ) | $ | — | ||||
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerators | ||||||||
Net loss | $ | (1,465 | ) | $ | (442 | ) | ||
Denominators | ||||||||
Weighted average common shares - basic | 12,794,766 | 12,663,818 | ||||||
Dilutive effect of restricted stock | — | — | ||||||
Weighted average common shares - diluted | 12,794,766 | 12,663,818 | ||||||
Basic earnings (loss) per share | $ | (0.11 | ) | $ | (0.03 | ) | ||
Diluted earnings (loss) per share | $ | (0.11 | ) | $ | (0.03 | ) | ||
For the three months ended March 31, 2015, 163,643 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 | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2015 | 296,782 | $ | 16.58 | |||||
Granted | 81,867 | 14.31 | ||||||
Vested | (49,434 | ) | 19.55 | |||||
Forfeited | (3,401 | ) | 14 | |||||
Outstanding at March 31, 2015 | 325,814 | $ | 15.59 | |||||
Common stock compensation expense related to restricted stock awards granted under the Plan was $492 and $301 for the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Total unrecognized compensation costs related to non-vested, share-based awards granted or awarded under the Plan were $2,596 and $2,036 at March 31, 2015 and December 31, 2014, respectively. These costs are expected to be recognized over a weighted average period of 1.6 years and 1.2 years, at March 31, 2015 and December 31, 2014, respectively. |
Business_Segment_Information
Business Segment Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 March 31, | ||||||||
2015 | 2014 | |||||||
Net sales: | ||||||||
Aerostructures | $ | 79,245 | $ | 77,704 | ||||
Engineering Services | 13,504 | 18,706 | ||||||
Eliminations | (274 | ) | (659 | ) | ||||
$ | 92,475 | $ | 95,751 | |||||
Income from operations: | ||||||||
Aerostructures | $ | 5,055 | $ | 2,807 | ||||
Engineering Services | (764 | ) | 946 | |||||
Eliminations | 22 | (64 | ) | |||||
$ | 4,313 | $ | 3,689 | |||||
Customer_Concentration
Customer Concentration | 3 Months Ended |
Mar. 31, 2015 | |
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 35.0% and 33.6% of the Company’s total revenues for the three months ended March 31, 2015 and 2014, respectively. Accounts receivable balances related to Spirit were 34.9% and 33.3% of the Company’s total accounts receivable balance at March 31, 2015 and December 31, 2014, 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 14.0% and 14.1% of the Company’s total revenues for the three months ended March 31, 2015 and 2014, respectively. Accounts receivable balances related to Gulfstream were 15.0% and 6.1% of the Company’s total accounts receivable balance at March 31, 2015 and December 31, 2014, respectively. | |
Direct sales, through both of the Company’s business segments, to our third largest customer, Triumph Group, Inc, (“Triumph”), accounted for 10.1% and 4.1% of the Company’s total revenues for the three months ended March 31, 2015 and 2014, respectively. Accounts receivable balances resulting from direct sales to Triumph were 11.3% and 6.5% of the Company’s total accounts receivable balance at March 31, 2015 and December 31, 2014, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The Company records income tax expense or benefit each quarter based on its estimated full-year effective tax rate. Income tax expense of $309 and income tax benefit of $16 were recognized in the three months ended March 31, 2015 and March 31, 2014, respectively. Tax expense in the first quarter of 2015 includes $427 of adjustments related to temporary differences. The Company agreed to these adjustments as a result of an ongoing audit by the IRS related to the 2012 and 2013 tax years. The impact of these adjustments was offset by a current tax benefit of $118. The Company continues to carry a full valuation allowance on its net deferred tax assets, which totaled $12,676 at both March 31, 2015 and December 31, 2014. |
Restructuring
Restructuring | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring | Restructuring | |||||||||||
The Company committed to and implemented various restructuring plans in 2014 and 2015. Included in those plans were the closure of the Precise Machine facility in Fort Worth, Texas and the relocation of the machining operations in both Savannah, Georgia and St. Charles, Missouri to other facilities within the Company. Other employment separation activities were also implemented as part of the Company's overall reorganization and cost reduction initiatives. The expense associated with these plans was reflected in the selling, general, and administrative section on a separate line of the Condensed Consolidated Statements of Comprehensive Income (Loss). The following table summarizes the incurred charges associated with these restructuring activities: | ||||||||||||
Expense Recognized | Expense Recognized | |||||||||||
Quarter Ended March 31, 2015 | Quarter Ended March 31, 2014 | |||||||||||
(In Thousands) | ||||||||||||
Precise Machine facility closure | $ | — | $ | 93 | ||||||||
Savannah machining operations relocation | — | 41 | ||||||||||
St. Louis machine parts operations relocation | 171 | — | ||||||||||
Other employment separation activities | 104 | 294 | ||||||||||
Total | $ | 275 | $ | 428 | ||||||||
The Savannah, Georgia and the Precise plans were completed in the second quarter of 2014. The St. Louis plan is expected to be completed by the second quarter of 2015. | ||||||||||||
Cash payments were made associated with these restructuring plans of $328 and $134 in the three months ended March 31, 2015 and March 31, 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 | ||||||||||
31-Mar-15 | Incurred | Incurred | ||||||||||
(In Thousands) | ||||||||||||
Employee severance arrangement - Precise | $ | 615 | $ | — | $ | 615 | ||||||
Employee severance arrangement - Savannah | 47 | — | 47 | |||||||||
Employee severance arrangement - St. Charles | 349 | 45 | 394 | |||||||||
Other employee severance arrangements | 2,062 | — | 2,062 | |||||||||
Lease termination costs - Precise | 124 | — | 124 | |||||||||
Other restructuring expenses | 115 | — | 115 | |||||||||
Total | $ | 3,312 | $ | 45 | $ | 3,357 | ||||||
As of March 15, 2015, the Company also incurred and recognized approximately $67 in other project costs, largely related to integration expense and accelerated depreciation on property, plant and equipment at its St. Charles facility. These expenses are recognized in the cost of goods sold 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, St. Charles facility closure and other employee separation activities: | ||||||||||||
Employee | ||||||||||||
Severance | ||||||||||||
Accrued restructuring balance as of December 31, 2014 | $ | 739 | ||||||||||
Accrual additions | 275 | |||||||||||
Cash payments | (328 | ) | ||||||||||
Accrued restructuring balance as of March 31, 2015 | $ | 686 | ||||||||||
Accrued restructuring of $686 at March 31, 2015 is expected to be paid over the next two quarters. |
Legal_Contingencies
Legal Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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. The Company is also the subject of other proceedings as further described below. | |
In August 2013, the Environmental Protection Agency (“EPA”) and the U.S. Dept. of Justice (“DoJ”) commenced an investigation into allegations of low pH wastewater releases claimed to have occurred between 2009 and 2013 at Ozark Mountain Technologies ("OMT"), a subsidiary of LMI, (the “Waste Water Allegations”). In response to the EPA/DoJ investigation and to ensure OMT’s full compliance with both environmental and health and safety regulations, the Company initiated a voluntary, comprehensive internal audit of the facility, which was completed in October 2013 (the “OMT Audit”). The OMT Audit uncovered other possible instances of environmental non-compliance, which the Company voluntarily reported (the “Voluntarily Disclosed Matters”) to the EPA on December 3, 2013, as part of the EPA’s Audit Policy. The Company concurrently disclosed these matters to the Missouri Department of Natural Resources (“MDNR”). On April 24, 2015, the Company settled the Waste Water Allegations pursuant to a settlement agreement with DoJ (“Plea Agreement”). As part of the settlement, OMT plead guilty to one count of negligently violating the Federal Water Pollution Control Act (the “Clean Water Act”) and agreed to a fine of $694. This amount is consistent with the previously established loss contingency as disclosed in the Company's 2014 Form 10-K, Item 3 - Legal Proceedings. Further, in exchange for the Plea Agreement, DoJ agreed that no further federal criminal or civil prosecution will be brought against OMT relative to the Voluntarily Disclosed Matters. | |
In November, 2013, the Attorney General of the State of Missouri (the “Missouri AG”) contacted LMI regarding alleged violations of certain state environmental regulations involving the discharge of pollutants and water contaminants claimed to have occurred in 2011 by OMT (the “Missouri AG Matter”). On February 25, 2015, the Missouri AG filed a Petition against OMT alleging pollution of state waters, violation of pretreatment regulations and violation of water quality standards. The Company believes it is probable that the Missouri AG’s office will assess a penalty on OMT. In the opinion of management, after consulting with legal counsel and based on the discussions the Company has had with the Missouri AG, 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. | |
OMT became a subsidiary of LMI as a result of LMI’s acquisition of Valent Aerostructures, LLC (“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 LMI 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 are applicable to the 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 or all 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 any insurance proceeds from our insurance policies. | |
In December 2014, two of the former members of Valent, Tech Investments, LLC and Tech Investments II, LLC, which collectively own approximately 5.5% of the Company’s common stock, filed suit in the Circuit Court of St. Louis County against the Company seeking declaratory judgment (a) declaring that the Company is not entitled to indemnification on certain claims asserted against the former members of Valent, (b) ordering the release of the remaining escrow funds associated with the Company’s purchase of Valent, and (c) ordering that the Company is not entitled to exercise a right of redemption on 360,301 shares of the Company’s stock, currently held under a Lock Up Agreement pending resolution of the indemnification claims (the “Tech Lawsuit”). In February 2015, the Company filed its response moving to dismiss the Tech Lawsuit on the grounds that the declaratory judgment is not proper in this matter. On March 24, 2015, the Company’s motion was denied. On April 23, 2015, the Company filed its answer and counterclaims in the Tech Lawsuit, asserting its rights to indemnification. In the opinion of management, the losses, if any, resulting from the Tech Lawsuit should not have a material effect on the Company’s financial position, cash flows or results of operations. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements (Notes) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements | |||||||||||||||
LMI Aerospace, Inc. excluding its subsidiaries (“LMIA”) is the parent company, issuer and obligor of the second-priority senior notes due June 19, 2019 (the “Notes”). The payment obligations of LMIA under the Notes are guaranteed and secured by LMIA and all of its subsidiaries other than immaterial subsidiaries as further described below. | ||||||||||||||||
These notes are guaranteed on a second-priority senior secured basis, jointly and severally, by LMIA (“Guarantor Parent”) and all of its existing and future 100% owned subsidiaries (collectively, the “Guarantor Subsidiaries”) other than immaterial subsidiaries. Such guaranties are full and unconditional. LMIA conducts substantially all of its business through and derives virtually all of its income from its subsidiaries. Therefore, its ability to make required principal and interest payments with respect to its indebtedness depends on the earnings of subsidiaries and its ability to receive funds from its subsidiaries. | ||||||||||||||||
The notes are secured on a second-priority basis by liens on substantially all of LMIA’s and the Guarantor Subsidiaries’ assets, subject to certain exceptions and permitted liens. The liens securing the notes are contractually subordinated to the liens that secure indebtedness under the revolving credit facility as a result of the lien subordination provisions of the intercreditor agreement to the extent of the value of the collateral securing such indebtedness as well as being subordinated by other existing indebtedness, including industrial revenue bonds, capital leases and other notes payable, to the extent of the value of the collateral that secures such existing indebtedness. As a consequence of this lien subordination and existing indebtedness the notes and the guarantees are effectively subordinated to the extent of the value of the collateral that secures them. Decisions regarding the maintenance and release of the collateral secured by the collateral agreement are made by the lenders under the modified revolving credit facility, and neither the indenture trustee nor the holders of the Notes have control of decisions regarding the release of collateral. | ||||||||||||||||
We have not presented separate financial statements and separate disclosures have not been provided concerning the Guarantor Subsidiaries due to the presentation of condensed consolidating financial information set forth in this Note, consistent with the Securities and Exchange Commission (the “SEC”) interpretations governing reporting of subsidiary financial information. | ||||||||||||||||
Supplemental condensed consolidating financial information of the Company, including such information for the Guarantor Subsidiaries, is presented below. Investments in subsidiaries are presented using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries and inter-company balances and transactions. | ||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
31-Mar-15 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,986 | $ | 578 | $ | — | $ | 2,564 | ||||||||
Trade accounts receivable, net | 1,322 | 59,562 | — | 60,884 | ||||||||||||
Intercompany receivables | 154,383 | 138,443 | (292,826 | ) | — | |||||||||||
Inventories | — | 121,746 | — | 121,746 | ||||||||||||
Prepaid expenses and other current assets | 8,141 | 2,510 | — | 10,651 | ||||||||||||
Deferred income taxes | — | 4,031 | (118 | ) | 3,913 | |||||||||||
Total current assets | 165,832 | 326,870 | (292,944 | ) | 199,758 | |||||||||||
Property, plant and equipment, net | 3,108 | 98,350 | — | 101,458 | ||||||||||||
Investments in subsidiaries | 372,460 | — | (372,460 | ) | — | |||||||||||
Goodwill | — | 86,784 | — | 86,784 | ||||||||||||
Intangible assets, net | — | 49,851 | — | 49,851 | ||||||||||||
Deferred income taxes | 118 | — | (118 | ) | — | |||||||||||
Other assets | 8,345 | 1,817 | — | 10,162 | ||||||||||||
Total assets | $ | 549,863 | $ | 563,672 | $ | (665,522 | ) | $ | 448,013 | |||||||
Liabilities and shareholders’ equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 3,010 | $ | 19,352 | $ | — | $ | 22,362 | ||||||||
Accrued expenses | 7,223 | 13,363 | — | 20,586 | ||||||||||||
Intercompany Payables | 164,415 | 128,411 | (292,826 | ) | $ | — | ||||||||||
Deferred income taxes | 118 | — | (118 | ) | — | |||||||||||
Current installments of long-term debt and capital lease obligations | 273 | 3,238 | — | 3,511 | ||||||||||||
Total current liabilities | 175,039 | 164,364 | (292,944 | ) | 46,459 | |||||||||||
Long-term debt and capital lease obligations, less current installments | 256,653 | 19,700 | — | 276,353 | ||||||||||||
Other long-term liabilities | 495 | 2,736 | — | 3,231 | ||||||||||||
Deferred income taxes | — | 4,412 | (118 | ) | 4,294 | |||||||||||
Total long-term liabilities | 257,148 | 26,848 | (118 | ) | 283,878 | |||||||||||
Total shareholders’ equity | 117,676 | 372,460 | (372,460 | ) | 117,676 | |||||||||||
Total liabilities and shareholders’ equity | $ | 549,863 | $ | 563,672 | $ | (665,522 | ) | $ | 448,013 | |||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 7,058 | $ | 869 | $ | — | $ | 7,927 | ||||||||
Trade accounts receivable, net | 1,310 | 56,924 | — | 58,234 | ||||||||||||
Intercompany receivables | 145,980 | 145,223 | (291,203 | ) | $ | — | ||||||||||
Inventories | — | 114,279 | — | 114,279 | ||||||||||||
Prepaid expenses and other current assets | 8,325 | 1,930 | — | 10,255 | ||||||||||||
Deferred income taxes | — | 4,031 | (118 | ) | 3,913 | |||||||||||
Total current assets | 162,673 | 323,256 | (291,321 | ) | 194,608 | |||||||||||
Property, plant and equipment, net | 3,148 | 96,334 | — | 99,482 | ||||||||||||
Investments in subsidiaries | 368,587 | — | (368,587 | ) | — | |||||||||||
Goodwill | — | 86,784 | — | 86,784 | ||||||||||||
Intangible assets, net | — | 50,940 | — | 50,940 | ||||||||||||
Deferred income taxes | 118 | — | (118 | ) | — | |||||||||||
Other assets | 8,743 | 1,879 | — | 10,622 | ||||||||||||
Total assets | $ | 543,269 | $ | 559,193 | $ | (660,026 | ) | $ | 442,436 | |||||||
Liabilities and shareholders’ equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 1,339 | $ | 20,416 | $ | — | $ | 21,755 | ||||||||
Accrued expenses | 13,679 | 12,393 | — | 26,072 | ||||||||||||
Intercompany Payables | 164,158 | 127,045 | (291,203 | ) | $ | — | ||||||||||
Deferred income taxes | 118 | — | (118 | ) | — | |||||||||||
Current installments of long-term debt and capital lease obligations | 335 | 3,089 | — | 3,424 | ||||||||||||
Total current liabilities | 179,629 | 162,943 | (291,321 | ) | 51,251 | |||||||||||
Long-term debt and capital lease obligations, less current installments | 245,174 | 20,380 | — | 265,554 | ||||||||||||
Other long-term liabilities | 331 | 2,958 | — | 3,289 | ||||||||||||
Deferred income taxes | — | 4,325 | (118 | ) | 4,207 | |||||||||||
Total long-term liabilities | 245,505 | 27,663 | (118 | ) | 273,050 | |||||||||||
Total shareholders’ equity | 118,135 | 368,587 | (368,587 | ) | 118,135 | |||||||||||
Total liabilities and shareholders’ equity | $ | 543,269 | $ | 559,193 | $ | (660,026 | ) | $ | 442,436 | |||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
(Amounts in thousands, except share and per share data) | ||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||
Sales and service revenue | ||||||||||||||||
Product sales | $ | 18 | $ | 78,457 | $ | (18 | ) | $ | 78,457 | |||||||
Service revenues | 9,213 | 13,993 | (9,188 | ) | 14,018 | |||||||||||
Net sales | 9,231 | 92,450 | (9,206 | ) | 92,475 | |||||||||||
Cost of sales and service revenue | ||||||||||||||||
Cost of product sales | 16 | 62,553 | (18 | ) | 62,551 | |||||||||||
Cost of service revenues | 9,232 | 12,683 | (9,188 | ) | 12,727 | |||||||||||
Cost of sales | 9,248 | 75,236 | (9,206 | ) | 75,278 | |||||||||||
Gross profit | (17 | ) | 17,214 | — | 17,197 | |||||||||||
Selling, general and administrative expenses | 129 | 12,480 | — | 12,609 | ||||||||||||
Goodwill and intangible asset impairment | — | — | — | — | ||||||||||||
Contingent consideration write-off | — | — | — | — | ||||||||||||
Restructuring expense | 89 | 186 | — | 275 | ||||||||||||
Acquisitions expense | — | — | — | — | ||||||||||||
(Loss) income from operations | (235 | ) | 4,548 | — | 4,313 | |||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (5,319 | ) | (272 | ) | — | (5,591 | ) | |||||||||
Other, net | 2 | 120 | — | 122 | ||||||||||||
Income (loss) from equity investments in subsidiaries | 2,411 | — | (2,411 | ) | — | |||||||||||
Total other expense | (2,906 | ) | (152 | ) | (2,411 | ) | (5,469 | ) | ||||||||
(Loss) income before income taxes | (3,141 | ) | 4,396 | (2,411 | ) | (1,156 | ) | |||||||||
(Benefit) provision for income taxes | (1,676 | ) | 1,985 | — | 309 | |||||||||||
Net (loss) income | (1,465 | ) | 2,411 | (2,411 | ) | (1,465 | ) | |||||||||
Other comprehensive income (loss): | ||||||||||||||||
Change in foreign currency translation adjustment | — | (79 | ) | — | (79 | ) | ||||||||||
Reclassification adjustment for losses on interest rate hedges included in net earnings | — | — | — | — | ||||||||||||
Unrealized loss on interest rate hedges | — | — | — | — | ||||||||||||
Total comprehensive (loss) income | $ | (1,465 | ) | $ | 2,332 | $ | (2,411 | ) | $ | (1,544 | ) | |||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
(Amounts in thousands, except share and per share data) | ||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||
Sales and service revenue | ||||||||||||||||
Product sales | $ | 480 | $ | 76,484 | $ | (480 | ) | $ | 76,484 | |||||||
Service revenues | 10,149 | 19,279 | (10,161 | ) | 19,267 | |||||||||||
Net sales | 10,629 | 95,763 | (10,641 | ) | 95,751 | |||||||||||
Cost of sales and service revenue | ||||||||||||||||
Cost of product sales | 699 | 61,881 | (480 | ) | 62,100 | |||||||||||
Cost of service revenues | 9,600 | 16,751 | (10,161 | ) | 16,190 | |||||||||||
Cost of sales | 10,299 | 78,632 | (10,641 | ) | 78,290 | |||||||||||
Gross profit | 330 | 17,131 | — | 17,461 | ||||||||||||
Selling, general and administrative expenses | 22 | 13,322 | — | 13,344 | ||||||||||||
Goodwill and intangible asset impairment | — | — | — | — | ||||||||||||
Contingent consideration write-off | — | — | — | — | ||||||||||||
Restructuring expense | 294 | 134 | — | 428 | ||||||||||||
Acquisitions expense | — | — | — | — | ||||||||||||
(Loss) income from operations | 14 | 3,675 | — | 3,689 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (3,966 | ) | (293 | ) | — | (4,259 | ) | |||||||||
Other, net | 28 | 84 | — | 112 | ||||||||||||
Income (loss) from equity investments in subsidiaries | 2,196 | — | (2,196 | ) | — | |||||||||||
Total other expense | (1,742 | ) | (209 | ) | (2,196 | ) | (4,147 | ) | ||||||||
(Loss) income before income taxes | (1,728 | ) | 3,466 | (2,196 | ) | (458 | ) | |||||||||
(Benefit) provision for income taxes | (1,286 | ) | 1,270 | — | (16 | ) | ||||||||||
Net (loss) income | (442 | ) | 2,196 | (2,196 | ) | (442 | ) | |||||||||
Other comprehensive income (loss): | ||||||||||||||||
Change in foreign currency translation adjustment | — | 44 | — | 44 | ||||||||||||
Reclassification adjustment for losses on interest rate hedges included in net earnings | — | — | — | — | ||||||||||||
Unrealized loss on interest rate hedges | (129 | ) | — | — | (129 | ) | ||||||||||
Total comprehensive (loss) income | $ | (571 | ) | $ | 2,240 | $ | (2,196 | ) | $ | (527 | ) | |||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||
Operating activities: | ||||||||||||||||
Net (loss)/income | $ | (1,465 | ) | $ | 2,411 | $ | (2,411 | ) | $ | (1,465 | ) | |||||
Adjustments for non-cash items | (3,175 | ) | 6,308 | 2,411 | 5,544 | |||||||||||
Net changes in operating assets and liabilities, net of acquired businesses | (3,583 | ) | (9,772 | ) | — | (13,355 | ) | |||||||||
Intercompany activity | (8,147 | ) | 8,147 | — | — | |||||||||||
Net cash (used)/provided by operating activities | (16,370 | ) | 7,094 | — | (9,276 | ) | ||||||||||
Investing activities: | ||||||||||||||||
Additions to property, plant and equipment | (25 | ) | (6,854 | ) | — | (6,879 | ) | |||||||||
Acquisitions, net of cash acquired | — | — | — | — | ||||||||||||
Proceeds from sale of equipment | — | — | — | — | ||||||||||||
Net cash used by investing activities | (25 | ) | (6,854 | ) | — | (6,879 | ) | |||||||||
Financing activities: | ||||||||||||||||
Proceeds from issuance of debt | — | — | — | — | ||||||||||||
Principal payments on long-term debt and notes payable | (83 | ) | (531 | ) | — | (614 | ) | |||||||||
Advances on revolving line of credit | 36,000 | — | — | 36,000 | ||||||||||||
Payments on revolving line of credit | (24,500 | ) | — | — | (24,500 | ) | ||||||||||
Payments for debt issuance cost | (94 | ) | — | — | (94 | ) | ||||||||||
Other, net | — | — | — | — | ||||||||||||
Net cash provided (used) by financing activities | 11,323 | (531 | ) | — | 10,792 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (5,072 | ) | (291 | ) | — | (5,363 | ) | |||||||||
Cash and cash equivalents, beginning of year | 7,058 | 869 | — | 7,927 | ||||||||||||
Cash and cash equivalents, end of year | $ | 1,986 | $ | 578 | $ | — | $ | 2,564 | ||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||
Operating activities: | ||||||||||||||||
Net (loss)/income | $ | (442 | ) | $ | 2,196 | $ | (2,196 | ) | $ | (442 | ) | |||||
Adjustments for non-cash items | (1,779 | ) | 5,135 | 2,196 | 5,552 | |||||||||||
Net changes in operating assets and liabilities, net of acquired businesses | 13,121 | (8,216 | ) | — | 4,905 | |||||||||||
Intercompany activity | (5,508 | ) | 5,508 | — | — | |||||||||||
Net cash (used)/provided by operating activities | 5,392 | 4,623 | — | 10,015 | ||||||||||||
Investing activities: | ||||||||||||||||
Additions to property, plant and equipment | (108 | ) | (4,761 | ) | — | (4,869 | ) | |||||||||
Acquisitions, net of cash acquired | — | — | — | — | ||||||||||||
Proceeds from sale of equipment | 899 | — | 899 | |||||||||||||
Net cash used by investing activities | (108 | ) | (3,862 | ) | — | (3,970 | ) | |||||||||
Financing activities: | ||||||||||||||||
Proceeds from issuance of debt | — | — | — | — | ||||||||||||
Principal payments on long-term debt and notes payable | (703 | ) | (591 | ) | — | (1,294 | ) | |||||||||
Advances on revolving line of credit | 27,500 | — | — | 27,500 | ||||||||||||
Payments on revolving line of credit | (31,500 | ) | — | — | (31,500 | ) | ||||||||||
Payments for debt issuance cost | — | — | — | — | ||||||||||||
Other, net | (28 | ) | — | — | (28 | ) | ||||||||||
Net cash provided (used) by financing activities | (4,731 | ) | (591 | ) | — | (5,322 | ) | |||||||||
Net (decrease) increase in cash and cash equivalents | 553 | 170 | — | 723 | ||||||||||||
Cash and cash equivalents, beginning of year | 405 | 1,167 | — | 1,572 | ||||||||||||
Cash and cash equivalents, end of year | $ | 958 | $ | 1,337 | $ | — | $ | 2,295 | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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 three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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, 2014, as filed with the Securities and Exchange Commission on March 16, 2015. | |
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). On April 1, 2015 the FASB voted in favor of proposing a one year delay of the effective date and to permit companies to voluntarily adopt the new standard as of the original effective date. 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. | |
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. Under the new guidance, net debt issuance costs are to be presented in the Company's Condensed Consolidated Balance Sheets as a direct reduction from the carrying amount of the related debt liabilities, rather than as an asset. The guidance requires that the amortization of debt issuance costs continue to be reported as interest expense in the Condensed Consolidated Statement of Comprehensive Income (Loss). The recognition and measurement of debt issuance costs are not affected by this guidance. The provisions of this guidance are effective for reporting periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this guidance will not affect the Company’s results of operations, financial position or liquidity. |
Accounts_Receivable_Net_Tables
Accounts Receivable, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of accounts receivable, net | Accounts receivable, net consists of the following: | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Trade receivables | $ | 53,469 | $ | 53,081 | ||||
Unbilled revenue | 5,882 | 4,036 | ||||||
Other receivables | 2,003 | 1,581 | ||||||
61,354 | 58,698 | |||||||
Less: Allowance for doubtful accounts | (470 | ) | (464 | ) | ||||
Accounts receivable, net | $ | 60,884 | $ | 58,234 | ||||
Impact of operating income | Cumulative catch-up adjustments had the following impacts to operating income for the periods presented: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Favorable adjustments | $ | 412 | $ | 271 | ||||
Unfavorable adjustments | (36 | ) | (306 | ) | ||||
Net favorable (unfavorable) operating income adjustments | $ | 376 | $ | (35 | ) | |||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories consist of the following: | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Raw materials | $ | 16,777 | $ | 16,712 | ||||
Work in progress | 24,254 | 22,960 | ||||||
Manufactured and purchased components | 21,241 | 21,296 | ||||||
Finished goods | 31,848 | 32,403 | ||||||
Product inventory | 94,120 | 93,371 | ||||||
Capitalized contract costs | 27,626 | 20,908 | ||||||
Total inventories | $ | 121,746 | $ | 114,279 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014, respectively: | |||||||||||||||||||||||
Engineering | ||||||||||||||||||||||||
Aerostructures | Services | Total | ||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Balance at: | ||||||||||||||||||||||||
Gross Goodwill | $ | 141,953 | $ | 141,953 | $ | 50,741 | $ | 50,741 | $ | 192,694 | $ | 192,694 | ||||||||||||
Accumulated impairment loss | (79,471 | ) | (79,471 | ) | (26,439 | ) | (26,439 | ) | (105,910 | ) | (105,910 | ) | ||||||||||||
Net Goodwill | $ | 62,482 | $ | 62,482 | $ | 24,302 | $ | 24,302 | $ | 86,784 | $ | 86,784 | ||||||||||||
Finite and infinite lived intangible assets | Intangible assets primarily consist of trademarks and customer intangibles. The carrying values were as follows: | |||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Trademarks | $ | 778 | $ | 778 | ||||||||||||||||||||
Customer intangible assets | 68,991 | 68,991 | ||||||||||||||||||||||
Other | 1,274 | 1,274 | ||||||||||||||||||||||
Accumulated amortization | (21,192 | ) | (20,103 | ) | ||||||||||||||||||||
Intangible assets, net | $ | 49,851 | $ | 50,940 | ||||||||||||||||||||
Other_Assets_Other_Assets_Tabl
Other Assets Other Assets (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Assets, Noncurrent [Abstract] | ||||||||
Schedule of Other Assets, Non current [Table Text Block] | Other assets consist of the following: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Debt issuance cost, net | $ | 8,270 | $ | 8,600 | ||||
Other | 1,892 | 2,022 | ||||||
Total other assets | $ | 10,162 | $ | 10,622 | ||||
In connection with the financing of its long-term indebtedness, the Company incurred debt issuance costs of $9,928. Those costs are being amortized over the term of the indebtedness, which is five years. |
Longterm_Debt_and_Capital_Leas1
Long-term Debt and Capital Lease Obligations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-term debt | Long-term debt and capital lease obligations consist of the following: | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
Second priority senior secured notes at a fixed rate of 7.375% at March 31, 2015 | $ | 245,000 | $ | 245,000 | ||||
Revolver under credit agreement, variable | 11,500 | — | ||||||
Missouri IRBs at fixed rate of 2.80% at March 31, 2015 and December 31, 2014 | 7,228 | 7,334 | ||||||
Capital leases, at fixed rates ranging from 2.04% to 7.73% at March 31, 2015 and December 31, 2014 | 12,890 | 13,288 | ||||||
Notes payable, principal and interest payable monthly, at fixed rates up to 2.56% at March 31, 2015 and December 31, 2014, respectively | 3,246 | 3,356 | ||||||
Total debt | $ | 279,864 | $ | 268,978 | ||||
Less current installments | 3,511 | 3,424 | ||||||
Total long-term debt and capital lease obligations | $ | 276,353 | $ | 265,554 | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Derivatives Recognized in the AOCI and Earnings | The following amounts are included in OCI and earnings for the three months ended March 31, 2015 and March 31, 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 March 31, 2015 | |||||||||
Interest rate derivatives | $ | — | $ | — | |||||
Three Months Ended March 31, 2014 | |||||||||
Interest rate derivatives | $ | (129 | ) | $ | — | ||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerators | ||||||||
Net loss | $ | (1,465 | ) | $ | (442 | ) | ||
Denominators | ||||||||
Weighted average common shares - basic | 12,794,766 | 12,663,818 | ||||||
Dilutive effect of restricted stock | — | — | ||||||
Weighted average common shares - diluted | 12,794,766 | 12,663,818 | ||||||
Basic earnings (loss) per share | $ | (0.11 | ) | $ | (0.03 | ) | ||
Diluted earnings (loss) per share | $ | (0.11 | ) | $ | (0.03 | ) | ||
For the three months ended March 31, 2015, 163,643 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) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2015 | 296,782 | $ | 16.58 | |||||
Granted | 81,867 | 14.31 | ||||||
Vested | (49,434 | ) | 19.55 | |||||
Forfeited | (3,401 | ) | 14 | |||||
Outstanding at March 31, 2015 | 325,814 | $ | 15.59 | |||||
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 March 31, | ||||||||
2015 | 2014 | |||||||
Net sales: | ||||||||
Aerostructures | $ | 79,245 | $ | 77,704 | ||||
Engineering Services | 13,504 | 18,706 | ||||||
Eliminations | (274 | ) | (659 | ) | ||||
$ | 92,475 | $ | 95,751 | |||||
Income from operations: | ||||||||
Aerostructures | $ | 5,055 | $ | 2,807 | ||||
Engineering Services | (764 | ) | 946 | |||||
Eliminations | 22 | (64 | ) | |||||
$ | 4,313 | $ | 3,689 | |||||
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring Charges | The following table summarizes the incurred charges associated with these restructuring activities: | |||||||||||
Expense Recognized | Expense Recognized | |||||||||||
Quarter Ended March 31, 2015 | Quarter Ended March 31, 2014 | |||||||||||
(In Thousands) | ||||||||||||
Precise Machine facility closure | $ | — | $ | 93 | ||||||||
Savannah machining operations relocation | — | 41 | ||||||||||
St. Louis machine parts operations relocation | 171 | — | ||||||||||
Other employment separation activities | 104 | 294 | ||||||||||
Total | $ | 275 | $ | 428 | ||||||||
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 | ||||||||||
31-Mar-15 | Incurred | Incurred | ||||||||||
(In Thousands) | ||||||||||||
Employee severance arrangement - Precise | $ | 615 | $ | — | $ | 615 | ||||||
Employee severance arrangement - Savannah | 47 | — | 47 | |||||||||
Employee severance arrangement - St. Charles | 349 | 45 | 394 | |||||||||
Other employee severance arrangements | 2,062 | — | 2,062 | |||||||||
Lease termination costs - Precise | 124 | — | 124 | |||||||||
Other restructuring expenses | 115 | — | 115 | |||||||||
Total | $ | 3,312 | $ | 45 | $ | 3,357 | ||||||
Schedule of restructuring activity | The following table summarizes restructuring activity related to the Precise Machine facility closure, the Savannah machining relocation, St. Charles facility closure and other employee separation activities: | |||||||||||
Employee | ||||||||||||
Severance | ||||||||||||
Accrued restructuring balance as of December 31, 2014 | $ | 739 | ||||||||||
Accrual additions | 275 | |||||||||||
Cash payments | (328 | ) | ||||||||||
Accrued restructuring balance as of March 31, 2015 | $ | 686 | ||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | |||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,986 | $ | 578 | $ | — | $ | 2,564 | ||||||||||||||||||||||||
Trade accounts receivable, net | 1,322 | 59,562 | — | 60,884 | ||||||||||||||||||||||||||||
Intercompany receivables | 154,383 | 138,443 | (292,826 | ) | — | |||||||||||||||||||||||||||
Inventories | — | 121,746 | — | 121,746 | ||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 8,141 | 2,510 | — | 10,651 | ||||||||||||||||||||||||||||
Deferred income taxes | — | 4,031 | (118 | ) | 3,913 | |||||||||||||||||||||||||||
Total current assets | 165,832 | 326,870 | (292,944 | ) | 199,758 | |||||||||||||||||||||||||||
Property, plant and equipment, net | 3,108 | 98,350 | — | 101,458 | ||||||||||||||||||||||||||||
Investments in subsidiaries | 372,460 | — | (372,460 | ) | — | |||||||||||||||||||||||||||
Goodwill | — | 86,784 | — | 86,784 | ||||||||||||||||||||||||||||
Intangible assets, net | — | 49,851 | — | 49,851 | ||||||||||||||||||||||||||||
Deferred income taxes | 118 | — | (118 | ) | — | |||||||||||||||||||||||||||
Other assets | 8,345 | 1,817 | — | 10,162 | ||||||||||||||||||||||||||||
Total assets | $ | 549,863 | $ | 563,672 | $ | (665,522 | ) | $ | 448,013 | |||||||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||
Accounts payable | $ | 3,010 | $ | 19,352 | $ | — | $ | 22,362 | ||||||||||||||||||||||||
Accrued expenses | 7,223 | 13,363 | — | 20,586 | ||||||||||||||||||||||||||||
Intercompany Payables | 164,415 | 128,411 | (292,826 | ) | $ | — | ||||||||||||||||||||||||||
Deferred income taxes | 118 | — | (118 | ) | — | |||||||||||||||||||||||||||
Current installments of long-term debt and capital lease obligations | 273 | 3,238 | — | 3,511 | ||||||||||||||||||||||||||||
Total current liabilities | 175,039 | 164,364 | (292,944 | ) | 46,459 | |||||||||||||||||||||||||||
Long-term debt and capital lease obligations, less current installments | 256,653 | 19,700 | — | 276,353 | ||||||||||||||||||||||||||||
Other long-term liabilities | 495 | 2,736 | — | 3,231 | ||||||||||||||||||||||||||||
Deferred income taxes | — | 4,412 | (118 | ) | 4,294 | |||||||||||||||||||||||||||
Total long-term liabilities | 257,148 | 26,848 | (118 | ) | 283,878 | |||||||||||||||||||||||||||
Total shareholders’ equity | 117,676 | 372,460 | (372,460 | ) | 117,676 | |||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 549,863 | $ | 563,672 | $ | (665,522 | ) | $ | 448,013 | |||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 7,058 | $ | 869 | $ | — | $ | 7,927 | ||||||||||||||||||||||||
Trade accounts receivable, net | 1,310 | 56,924 | — | 58,234 | ||||||||||||||||||||||||||||
Intercompany receivables | 145,980 | 145,223 | (291,203 | ) | $ | — | ||||||||||||||||||||||||||
Inventories | — | 114,279 | — | 114,279 | ||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 8,325 | 1,930 | — | 10,255 | ||||||||||||||||||||||||||||
Deferred income taxes | — | 4,031 | (118 | ) | 3,913 | |||||||||||||||||||||||||||
Total current assets | 162,673 | 323,256 | (291,321 | ) | 194,608 | |||||||||||||||||||||||||||
Property, plant and equipment, net | 3,148 | 96,334 | — | 99,482 | ||||||||||||||||||||||||||||
Investments in subsidiaries | 368,587 | — | (368,587 | ) | — | |||||||||||||||||||||||||||
Goodwill | — | 86,784 | — | 86,784 | ||||||||||||||||||||||||||||
Intangible assets, net | — | 50,940 | — | 50,940 | ||||||||||||||||||||||||||||
Deferred income taxes | 118 | — | (118 | ) | — | |||||||||||||||||||||||||||
Other assets | 8,743 | 1,879 | — | 10,622 | ||||||||||||||||||||||||||||
Total assets | $ | 543,269 | $ | 559,193 | $ | (660,026 | ) | $ | 442,436 | |||||||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||||||
Accounts payable | $ | 1,339 | $ | 20,416 | $ | — | $ | 21,755 | ||||||||||||||||||||||||
Accrued expenses | 13,679 | 12,393 | — | 26,072 | ||||||||||||||||||||||||||||
Intercompany Payables | 164,158 | 127,045 | (291,203 | ) | $ | — | ||||||||||||||||||||||||||
Deferred income taxes | 118 | — | (118 | ) | — | |||||||||||||||||||||||||||
Current installments of long-term debt and capital lease obligations | 335 | 3,089 | — | 3,424 | ||||||||||||||||||||||||||||
Total current liabilities | 179,629 | 162,943 | (291,321 | ) | 51,251 | |||||||||||||||||||||||||||
Long-term debt and capital lease obligations, less current installments | 245,174 | 20,380 | — | 265,554 | ||||||||||||||||||||||||||||
Other long-term liabilities | 331 | 2,958 | — | 3,289 | ||||||||||||||||||||||||||||
Deferred income taxes | — | 4,325 | (118 | ) | 4,207 | |||||||||||||||||||||||||||
Total long-term liabilities | 245,505 | 27,663 | (118 | ) | 273,050 | |||||||||||||||||||||||||||
Total shareholders’ equity | 118,135 | 368,587 | (368,587 | ) | 118,135 | |||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 543,269 | $ | 559,193 | $ | (660,026 | ) | $ | 442,436 | |||||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||||||
(Amounts in thousands, except share and per share data) | ||||||||||||||||||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||||||||||||||||||
Sales and service revenue | ||||||||||||||||||||||||||||||||
Product sales | $ | 18 | $ | 78,457 | $ | (18 | ) | $ | 78,457 | |||||||||||||||||||||||
Service revenues | 9,213 | 13,993 | (9,188 | ) | 14,018 | |||||||||||||||||||||||||||
Net sales | 9,231 | 92,450 | (9,206 | ) | 92,475 | |||||||||||||||||||||||||||
Cost of sales and service revenue | ||||||||||||||||||||||||||||||||
Cost of product sales | 16 | 62,553 | (18 | ) | 62,551 | |||||||||||||||||||||||||||
Cost of service revenues | 9,232 | 12,683 | (9,188 | ) | 12,727 | |||||||||||||||||||||||||||
Cost of sales | 9,248 | 75,236 | (9,206 | ) | 75,278 | |||||||||||||||||||||||||||
Gross profit | (17 | ) | 17,214 | — | 17,197 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 129 | 12,480 | — | 12,609 | ||||||||||||||||||||||||||||
Goodwill and intangible asset impairment | — | — | — | — | ||||||||||||||||||||||||||||
Contingent consideration write-off | — | — | — | — | ||||||||||||||||||||||||||||
Restructuring expense | 89 | 186 | — | 275 | ||||||||||||||||||||||||||||
Acquisitions expense | — | — | — | — | ||||||||||||||||||||||||||||
(Loss) income from operations | (235 | ) | 4,548 | — | 4,313 | |||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Interest expense | (5,319 | ) | (272 | ) | — | (5,591 | ) | |||||||||||||||||||||||||
Other, net | 2 | 120 | — | 122 | ||||||||||||||||||||||||||||
Income (loss) from equity investments in subsidiaries | 2,411 | — | (2,411 | ) | — | |||||||||||||||||||||||||||
Total other expense | (2,906 | ) | (152 | ) | (2,411 | ) | (5,469 | ) | ||||||||||||||||||||||||
(Loss) income before income taxes | (3,141 | ) | 4,396 | (2,411 | ) | (1,156 | ) | |||||||||||||||||||||||||
(Benefit) provision for income taxes | (1,676 | ) | 1,985 | — | 309 | |||||||||||||||||||||||||||
Net (loss) income | (1,465 | ) | 2,411 | (2,411 | ) | (1,465 | ) | |||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Change in foreign currency translation adjustment | — | (79 | ) | — | (79 | ) | ||||||||||||||||||||||||||
Reclassification adjustment for losses on interest rate hedges included in net earnings | — | — | — | — | ||||||||||||||||||||||||||||
Unrealized loss on interest rate hedges | — | — | — | — | ||||||||||||||||||||||||||||
Total comprehensive (loss) income | $ | (1,465 | ) | $ | 2,332 | $ | (2,411 | ) | $ | (1,544 | ) | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||||||
(Amounts in thousands, except share and per share data) | ||||||||||||||||||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||||||||||||||||||
Sales and service revenue | ||||||||||||||||||||||||||||||||
Product sales | $ | 480 | $ | 76,484 | $ | (480 | ) | $ | 76,484 | |||||||||||||||||||||||
Service revenues | 10,149 | 19,279 | (10,161 | ) | 19,267 | |||||||||||||||||||||||||||
Net sales | 10,629 | 95,763 | (10,641 | ) | 95,751 | |||||||||||||||||||||||||||
Cost of sales and service revenue | ||||||||||||||||||||||||||||||||
Cost of product sales | 699 | 61,881 | (480 | ) | 62,100 | |||||||||||||||||||||||||||
Cost of service revenues | 9,600 | 16,751 | (10,161 | ) | 16,190 | |||||||||||||||||||||||||||
Cost of sales | 10,299 | 78,632 | (10,641 | ) | 78,290 | |||||||||||||||||||||||||||
Gross profit | 330 | 17,131 | — | 17,461 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses | 22 | 13,322 | — | 13,344 | ||||||||||||||||||||||||||||
Goodwill and intangible asset impairment | — | — | — | — | ||||||||||||||||||||||||||||
Contingent consideration write-off | — | — | — | — | ||||||||||||||||||||||||||||
Restructuring expense | 294 | 134 | — | 428 | ||||||||||||||||||||||||||||
Acquisitions expense | — | — | — | — | ||||||||||||||||||||||||||||
(Loss) income from operations | 14 | 3,675 | — | 3,689 | ||||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||
Interest expense | (3,966 | ) | (293 | ) | — | (4,259 | ) | |||||||||||||||||||||||||
Other, net | 28 | 84 | — | 112 | ||||||||||||||||||||||||||||
Income (loss) from equity investments in subsidiaries | 2,196 | — | (2,196 | ) | — | |||||||||||||||||||||||||||
Total other expense | (1,742 | ) | (209 | ) | (2,196 | ) | (4,147 | ) | ||||||||||||||||||||||||
(Loss) income before income taxes | (1,728 | ) | 3,466 | (2,196 | ) | (458 | ) | |||||||||||||||||||||||||
(Benefit) provision for income taxes | (1,286 | ) | 1,270 | — | (16 | ) | ||||||||||||||||||||||||||
Net (loss) income | (442 | ) | 2,196 | (2,196 | ) | (442 | ) | |||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Change in foreign currency translation adjustment | — | 44 | — | 44 | ||||||||||||||||||||||||||||
Reclassification adjustment for losses on interest rate hedges included in net earnings | — | — | — | — | ||||||||||||||||||||||||||||
Unrealized loss on interest rate hedges | (129 | ) | — | — | (129 | ) | ||||||||||||||||||||||||||
Total comprehensive (loss) income | $ | (571 | ) | $ | 2,240 | $ | (2,196 | ) | $ | (527 | ) | |||||||||||||||||||||
Condensed Consolidating Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||||||||||
Net (loss)/income | $ | (1,465 | ) | $ | 2,411 | $ | (2,411 | ) | $ | (1,465 | ) | |||||||||||||||||||||
Adjustments for non-cash items | (3,175 | ) | 6,308 | 2,411 | 5,544 | |||||||||||||||||||||||||||
Net changes in operating assets and liabilities, net of acquired businesses | (3,583 | ) | (9,772 | ) | — | (13,355 | ) | |||||||||||||||||||||||||
Intercompany activity | (8,147 | ) | 8,147 | — | — | |||||||||||||||||||||||||||
Net cash (used)/provided by operating activities | (16,370 | ) | 7,094 | — | (9,276 | ) | ||||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||
Additions to property, plant and equipment | (25 | ) | (6,854 | ) | — | (6,879 | ) | |||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | — | — | — | ||||||||||||||||||||||||||||
Proceeds from sale of equipment | — | — | — | — | ||||||||||||||||||||||||||||
Net cash used by investing activities | (25 | ) | (6,854 | ) | — | (6,879 | ) | |||||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||
Proceeds from issuance of debt | — | — | — | — | ||||||||||||||||||||||||||||
Principal payments on long-term debt and notes payable | (83 | ) | (531 | ) | — | (614 | ) | |||||||||||||||||||||||||
Advances on revolving line of credit | 36,000 | — | — | 36,000 | ||||||||||||||||||||||||||||
Payments on revolving line of credit | (24,500 | ) | — | — | (24,500 | ) | ||||||||||||||||||||||||||
Payments for debt issuance cost | (94 | ) | — | — | (94 | ) | ||||||||||||||||||||||||||
Other, net | — | — | — | — | ||||||||||||||||||||||||||||
Net cash provided (used) by financing activities | 11,323 | (531 | ) | — | 10,792 | |||||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (5,072 | ) | (291 | ) | — | (5,363 | ) | |||||||||||||||||||||||||
Cash and cash equivalents, beginning of year | 7,058 | 869 | — | 7,927 | ||||||||||||||||||||||||||||
Cash and cash equivalents, end of year | $ | 1,986 | $ | 578 | $ | — | $ | 2,564 | ||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||
LMIA(Guarantor Parent) | Guarantor Subsidiaries | Consolidating/Eliminating Entries | Consolidated | |||||||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||||||||||
Net (loss)/income | $ | (442 | ) | $ | 2,196 | $ | (2,196 | ) | $ | (442 | ) | |||||||||||||||||||||
Adjustments for non-cash items | (1,779 | ) | 5,135 | 2,196 | 5,552 | |||||||||||||||||||||||||||
Net changes in operating assets and liabilities, net of acquired businesses | 13,121 | (8,216 | ) | — | 4,905 | |||||||||||||||||||||||||||
Intercompany activity | (5,508 | ) | 5,508 | — | — | |||||||||||||||||||||||||||
Net cash (used)/provided by operating activities | 5,392 | 4,623 | — | 10,015 | ||||||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||
Additions to property, plant and equipment | (108 | ) | (4,761 | ) | — | (4,869 | ) | |||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | — | — | — | ||||||||||||||||||||||||||||
Proceeds from sale of equipment | 899 | — | 899 | |||||||||||||||||||||||||||||
Net cash used by investing activities | (108 | ) | (3,862 | ) | — | (3,970 | ) | |||||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||
Proceeds from issuance of debt | — | — | — | — | ||||||||||||||||||||||||||||
Principal payments on long-term debt and notes payable | (703 | ) | (591 | ) | — | (1,294 | ) | |||||||||||||||||||||||||
Advances on revolving line of credit | 27,500 | — | — | 27,500 | ||||||||||||||||||||||||||||
Payments on revolving line of credit | (31,500 | ) | — | — | (31,500 | ) | ||||||||||||||||||||||||||
Payments for debt issuance cost | — | — | — | — | ||||||||||||||||||||||||||||
Other, net | (28 | ) | — | — | (28 | ) | ||||||||||||||||||||||||||
Net cash provided (used) by financing activities | (4,731 | ) | (591 | ) | — | (5,322 | ) | |||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | 553 | 170 | — | 723 | ||||||||||||||||||||||||||||
Cash and cash equivalents, beginning of year | 405 | 1,167 | — | 1,572 | ||||||||||||||||||||||||||||
Cash and cash equivalents, end of year | $ | 958 | $ | 1,337 | $ | — | $ | 2,295 | ||||||||||||||||||||||||
Accounts_Receivable_Net_Detail
Accounts Receivable, Net (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Receivables [Abstract] | |||
Trade receivables | $53,469 | $53,081 | |
Unbilled revenue | 5,882 | 4,036 | |
Other receivables | 2,003 | 1,581 | |
Accounts receivable, gross | 61,354 | 58,698 | |
Less: Allowance for doubtful accounts | -470 | -464 | |
Accounts receivable, net | 60,884 | 58,234 | |
Unbilled change orders or claims | 1,409 | 549 | |
Change in Accounting Estimate [Abstract] | |||
Favorable adjustments | 412 | 271 | |
Unfavorable adjustments | -36 | -306 | |
Net operating income adjustments | $376 | ($35) |
Inventories_Details
Inventories (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials | $16,777 | $16,712 |
Work in progress | 24,254 | 22,960 |
Manufactured and purchased components | 21,241 | 21,296 |
Finished goods | 31,848 | 32,403 |
Product inventory | 94,120 | 93,371 |
Capitalized contract costs | 27,626 | 20,908 |
Total inventories | 121,746 | 114,279 |
Payments for Other Operating Activities | $4,800 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Goodwill (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 |
Goodwill [Line Items] | ||
Goodwill, Gross | $192,694 | $192,694 |
Goodwill, Impaired, Accumulated Impairment Loss | -105,910 | -105,910 |
Goodwill acquired | 86,784 | 86,784 |
Aerostructures [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 141,953 | 141,953 |
Goodwill, Impaired, Accumulated Impairment Loss | -79,471 | -79,471 |
Goodwill acquired | 62,482 | 62,482 |
Engineering Services [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Gross | 50,741 | 50,741 |
Goodwill, Impaired, Accumulated Impairment Loss | -26,439 | -26,439 |
Goodwill acquired | 24,302 | 24,302 |
Goodwill, Impairment Loss | $26,439 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Intangible Assets [Abstract] | |||
Trademarks | $778 | $778 | |
Customer intangible assets | 68,991 | 68,991 | |
Other | 1,274 | 1,274 | |
Accumulated amortization | -21,192 | -20,103 | |
Intangible assets, net | 49,851 | 50,940 | |
Amortization expense on intangible assets | 1,089 | 1,131 | |
Trademarks [Member] | |||
Intangible Assets [Abstract] | |||
Accumulated amortization | -704 | -679 | |
Customer Intangible Assets [Member] | |||
Intangible Assets [Abstract] | |||
Accumulated amortization | -19,740 | -18,716 | |
Other [Member] | |||
Intangible Assets [Abstract] | |||
Accumulated amortization | ($748) | ($708) |
Other_Assets_Details
Other Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 |
Other Assets, Noncurrent [Abstract] | ||
Deb issuance cost, net | $8,600 | $8,270 |
Other Noncurrent Assets | 2,022 | 1,892 |
Total Other Assets | 10,622 | 10,162 |
Debt Issuance Cost | $9,928 |
Longterm_Debt_and_Capital_Leas2
Long-term Debt and Capital Lease Obligations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 19, 2014 |
Debt Instrument [Line Items] | |||
Long-term debt gross | $279,864 | $268,978 | |
Less current installments | 3,511 | 3,424 | |
Long-term debt and capital lease obligations, less current installments | 276,353 | 265,554 | |
Second Priority Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt gross | 245,000 | 245,000 | 245,000 |
Fixed interest rate (in hundredths) | 7.38% | ||
Revolver Under Credit Agreement, Variable [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt gross | 11,500 | 0 | |
Missouri IRBs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt gross | 7,228 | 7,334 | |
Fixed interest rate (in hundredths) | 2.80% | 2.80% | |
Capital Leases [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt gross | 12,890 | 13,288 | |
Fixed interest rate, minimum (in hundredths) | 2.04% | 2.04% | |
Fixed interest rate, maximum (in hundredths) | 7.73% | 7.73% | |
Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt gross | $3,246 | $3,356 | |
Fixed interest rate, maximum (in hundredths) | 2.56% | 2.56% |
Longterm_Debt_and_Capital_Leas3
Long-term Debt and Capital Lease Obligations, Line of Credit Facility (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $90,000 |
Reserve Against line of Credit | 15,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 75,000 |
Letters of Credit Outstanding, Amount | 1,323 |
Line of Credit Facility, Current Borrowing Capacity | $56,728 |
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 | 5.10% |
Commitment fee (in hundredths) | 0.50% |
LIBOR [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Spread over reference rate (in hundredths) | 3.00% |
LIBOR [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Spread over reference rate (in hundredths) | 3.50% |
Alternate Base Rate [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Spread over reference rate (in hundredths) | 2.00% |
Alternate Base Rate [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Spread over reference rate (in hundredths) | 2.50% |
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% |
Commitments [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee (in hundredths) | 0.38% |
Commitments [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee (in hundredths) | 0.50% |
Derivative_Financial_Instrumen2
Derivative Financial Instruments, Derivative Type (Details) (Interest Rate Swap [Member], Cash Flow Hedging [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 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 | ($129) |
Amount of (Gain) Loss Reclassified from AOCI into Income (Effective Portion) | $0 | $0 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerators [Abstract] | ||
Net loss | ($1,465) | ($442) |
Denominators [Abstract] | ||
Weighted average common shares - basic (in shares) | 12,794,766 | 12,663,818 |
Dilutive effect of restricted stock (in shares) | 0 | 0 |
Weighted average common shares - diluted (in shares) | 12,794,766 | 12,663,818 |
Basic earnings (loss) per share | ($0.11) | ($0.03) |
Diluted earnings (loss) per share | ($0.11) | ($0.03) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 163,643 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (Restricted Stock Awards [Member], USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Restricted Stock Awards [Member] | |||
Shares | |||
Outstanding beginning balance (in shares) | 296,782 | ||
Granted (in shares) | 81,867 | ||
Vested (in shares) | -49,434 | ||
Forfeited (in shares) | -3,401 | ||
Outstanding ending balance (in shares) | 325,814 | 296,782 | |
Weighted Average Grant Date Fair Value | |||
Outstanding beginning balance (in dollars per share) | $16.58 | ||
Granted (in dollars per share) | $14.31 | ||
Vested (in dollars per share) | $19.55 | ||
Forfeited (in dollars per share) | $14 | ||
Outstanding ending balance (in dollars per share) | $15.59 | $16.58 | |
Compensation expense | $492 | $301 | |
Unrecognized compensation costs | $2,596 | $2,036 | |
Costs are expected to be recognized over a weighted average period | 1 year 7 months 0 days | 1 year 2 months 12 days |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
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 | $92,475 | $95,751 |
Income from operations | 4,313 | 3,689 |
Aerostructures [Member] | ||
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | ||
Net sales | 79,245 | 77,704 |
Income from operations | 5,055 | 2,807 |
Engineering Services [Member] | ||
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | ||
Net sales | 13,504 | 18,706 |
Income from operations | -764 | 946 |
Eliminations [Member] | ||
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | ||
Net sales | -274 | -659 |
Income from operations | $22 | ($64) |
Customer_Concentration_Details
Customer Concentration (Details) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Spirit [Member] | Revenue [Member] | |||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||
Percentage attributable to customer (in hundredths) | 35.00% | 33.60% | |
Spirit [Member] | Accounts Receivable [Member] | |||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||
Percentage attributable to customer (in hundredths) | 34.90% | 33.30% | |
Gulfstream [Member] | Revenue [Member] | |||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||
Percentage attributable to customer (in hundredths) | 14.00% | 14.10% | |
Gulfstream [Member] | Accounts Receivable [Member] | |||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||
Percentage attributable to customer (in hundredths) | 15.00% | 6.10% | |
Triumph Group [Member] | Revenue [Member] | |||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||
Percentage attributable to customer (in hundredths) | 10.10% | 4.10% | |
Triumph Group [Member] | Accounts Receivable [Member] | |||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||
Percentage attributable to customer (in hundredths) | 11.30% | 6.50% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $12,676 | |
Provision (benefit) for income taxes | 309 | -16 |
Tax Adjustments, Settlements, and Unusual Provisions | 427 | |
Current Income Tax Expense (Benefit) | $118 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expense | $275 | $428 |
Restructuring and Related Cost, Expected Cost Remaining | 45 | |
Restructuring activities, total expense to be incurred | 3,357 | |
Restructuring and Related Cost, Cost Incurred to Date | 3,312 | |
Relocation of Machining Operations from Savannah Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Integration expense resulting from reorganization activities | 67 | |
Other Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost Remaining | 0 | |
Restructuring activities, total expense to be incurred | 115 | |
Restructuring and Related Cost, Cost Incurred to Date | 115 | |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expense | 275 | |
Payments for Restructuring | 328 | 134 |
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 | |
Restructuring and Related Cost, Cost Incurred to Date | 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 | |
Restructuring and Related Cost, Cost Incurred to Date | 47 | |
Employee Severance [Member] | Relocation of Machining Parts Operations from St. Charles Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost Remaining | 45 | |
Restructuring activities, total expense to be incurred | 394 | |
Restructuring and Related Cost, Cost Incurred to Date | 349 | |
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 | 2,062 | |
Restructuring and Related Cost, Cost Incurred to Date | 2,062 | |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring related expenses | 275 | 428 |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | Precise Machine [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring related expenses | 0 | 93 |
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 | 41 |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | Relocation of Machining Parts Operations from St. Charles Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring related expenses | 171 | 0 |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | Other Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring related expenses | $104 | $294 |
Restructuring_Restructuring_Re
Restructuring - Restructuring Reserve (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | $3,357 | |
Restructuring and Related Cost, Cost Incurred to Date | 3,312 | |
Restructuring and Related Cost, Expected Cost Remaining | 45 | |
Restructuring Reserve [Roll Forward] | ||
Accrual additions | 275 | 428 |
Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Accrued restructuring balance as of December 31, 2014 | 739 | |
Accrual additions | 275 | |
Cash payments | -328 | -134 |
Accrued restructuring balance as of March 31, 2015 | 686 | |
Relocation of Machining Operations from Savannah Facility [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Integration expense resulting from reorganization activities | 67 | |
Relocation of Machining Operations from Savannah Facility [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | 47 | |
Restructuring and Related Cost, Cost Incurred to Date | 47 | |
Restructuring and Related Cost, Expected Cost Remaining | 0 | |
Precise Machine [Member] | Lease Termination [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | 124 | |
Restructuring and Related Cost, Cost Incurred to Date | 124 | |
Restructuring and Related Cost, Expected Cost Remaining | 0 | |
Precise Machine [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | 615 | |
Restructuring and Related Cost, Cost Incurred to Date | 615 | |
Restructuring and Related Cost, Expected Cost Remaining | 0 | |
Relocation of Machining Parts Operations from St. Charles Facility [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | 394 | |
Restructuring and Related Cost, Cost Incurred to Date | 349 | |
Restructuring and Related Cost, Expected Cost Remaining | 45 | |
Other Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | 115 | |
Restructuring and Related Cost, Cost Incurred to Date | 115 | |
Restructuring and Related Cost, Expected Cost Remaining | 0 | |
Other Expense [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | 2,062 | |
Restructuring and Related Cost, Cost Incurred to Date | 2,062 | |
Restructuring and Related Cost, Expected Cost Remaining | 0 | |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 275 | 428 |
Selling, General and Administrative Expenses [Member] | Relocation of Machining Operations from Savannah Facility [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0 | 41 |
Selling, General and Administrative Expenses [Member] | Precise Machine [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 0 | 93 |
Selling, General and Administrative Expenses [Member] | Relocation of Machining Parts Operations from St. Charles Facility [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | 171 | 0 |
Selling, General and Administrative Expenses [Member] | Other Expense [Member] | Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Incurred Cost | $104 | $294 |
Legal_Contingencies_Details
Legal Contingencies (Details) (USD $) | Mar. 31, 2015 |
In Thousands, except Share data, unless otherwise specified | |
Environmental Protection Agency [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency accrual | $694 |
Missouri Attorney General [Member] | |
Loss Contingencies [Line Items] | |
Loss contingency accrual | $175 |
Tech Investments LLC [Member] | |
Loss Contingencies [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.50% |
Common Stock, Other Shares, Outstanding | 360,301 |
Condensed_Consolidated_Balance2
Condensed Consolidated Balance Sheets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $2,564 | $7,927 | $2,295 | $1,572 |
Accounts receivable, net | 60,884 | 58,234 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 121,746 | 114,279 | ||
Prepaid expenses and other current assets | 10,651 | 10,255 | ||
Deferred income taxes | 3,913 | 3,913 | ||
Total current assets | 199,758 | 194,608 | ||
Property, plant and equipment, net | 101,458 | 99,482 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 86,784 | 86,784 | ||
Intangible assets, net | 49,851 | 50,940 | ||
Deferred income taxes | 0 | 0 | ||
Other assets | 10,162 | 10,622 | ||
Total assets | 448,013 | 442,436 | ||
Accounts payable | 22,362 | 21,755 | ||
Accrued expenses | 20,586 | 26,072 | ||
Intercompany Payables | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Current installments of long-term debt and capital lease obligations | 3,511 | 3,424 | ||
Total current liabilities | 46,459 | 51,251 | ||
Long-term debt and capital lease obligations, less current installments | 276,353 | 265,554 | ||
Other long-term liabilities | 3,231 | 3,289 | ||
Deferred income taxes | 4,294 | 4,207 | ||
Total long-term liabilities | 283,878 | 273,050 | ||
Total shareholders’ equity | 117,676 | 118,135 | ||
Total liabilities and shareholders' equity | 448,013 | 442,436 | ||
LMIA(Guarantor Parent) | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 1,986 | 7,058 | 958 | 405 |
Accounts receivable, net | 1,322 | 1,310 | ||
Intercompany receivables | 154,383 | 145,980 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 8,141 | 8,325 | ||
Deferred income taxes | 0 | 0 | ||
Total current assets | 165,832 | 162,673 | ||
Property, plant and equipment, net | 3,108 | 3,148 | ||
Investments in subsidiaries | 372,460 | 368,587 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Deferred income taxes | 118 | 118 | ||
Other assets | 8,345 | 8,743 | ||
Total assets | 549,863 | 543,269 | ||
Accounts payable | 3,010 | 1,339 | ||
Accrued expenses | 7,223 | 13,679 | ||
Intercompany Payables | 164,415 | 164,158 | ||
Deferred income taxes | 118 | 118 | ||
Current installments of long-term debt and capital lease obligations | 273 | 335 | ||
Total current liabilities | 175,039 | 179,629 | ||
Long-term debt and capital lease obligations, less current installments | 256,653 | 245,174 | ||
Other long-term liabilities | 495 | 331 | ||
Deferred income taxes | 0 | 0 | ||
Total long-term liabilities | 257,148 | 245,505 | ||
Total shareholders’ equity | 117,676 | 118,135 | ||
Total liabilities and shareholders' equity | 549,863 | 543,269 | ||
Guarantor Subsidiaries | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 578 | 869 | 1,337 | 1,167 |
Accounts receivable, net | 59,562 | 56,924 | ||
Intercompany receivables | 138,443 | 145,223 | ||
Inventories | 121,746 | 114,279 | ||
Prepaid expenses and other current assets | 2,510 | 1,930 | ||
Deferred income taxes | 4,031 | 4,031 | ||
Total current assets | 326,870 | 323,256 | ||
Property, plant and equipment, net | 98,350 | 96,334 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 86,784 | 86,784 | ||
Intangible assets, net | 49,851 | 50,940 | ||
Deferred income taxes | 0 | 0 | ||
Other assets | 1,817 | 1,879 | ||
Total assets | 563,672 | 559,193 | ||
Accounts payable | 19,352 | 20,416 | ||
Accrued expenses | 13,363 | 12,393 | ||
Intercompany Payables | 128,411 | 127,045 | ||
Deferred income taxes | 0 | 0 | ||
Current installments of long-term debt and capital lease obligations | 3,238 | 3,089 | ||
Total current liabilities | 164,364 | 162,943 | ||
Long-term debt and capital lease obligations, less current installments | 19,700 | 20,380 | ||
Other long-term liabilities | 2,736 | 2,958 | ||
Deferred income taxes | 4,412 | 4,325 | ||
Total long-term liabilities | 26,848 | 27,663 | ||
Total shareholders’ equity | 372,460 | 368,587 | ||
Total liabilities and shareholders' equity | 563,672 | 559,193 | ||
Consolidating/Eliminating Entries | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | -292,826 | -291,203 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Deferred income taxes | -118 | -118 | ||
Total current assets | -292,944 | -291,321 | ||
Property, plant and equipment, net | 0 | 0 | ||
Investments in subsidiaries | -372,460 | -368,587 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Deferred income taxes | -118 | -118 | ||
Other assets | 0 | 0 | ||
Total assets | -665,522 | -660,026 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Intercompany Payables | -292,826 | -291,203 | ||
Deferred income taxes | -118 | -118 | ||
Current installments of long-term debt and capital lease obligations | 0 | 0 | ||
Total current liabilities | -292,944 | -291,321 | ||
Long-term debt and capital lease obligations, less current installments | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Deferred income taxes | -118 | -118 | ||
Total long-term liabilities | -118 | -118 | ||
Total shareholders’ equity | -372,460 | -368,587 | ||
Total liabilities and shareholders' equity | ($665,522) | ($660,026) |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Income Statements, Captions [Line Items] | ||
Product sales | $78,457 | $76,484 |
Service revenue | 14,018 | 19,267 |
Net sales | 92,475 | 95,751 |
Cost of product sales | 62,551 | 62,100 |
Cost of service revenue | 12,727 | 16,190 |
Cost of sales | 75,278 | 78,290 |
Gross profit | 17,197 | 17,461 |
Selling, general and administrative expenses | 12,609 | 13,344 |
Goodwill and intangible asset impairment | 0 | 0 |
Contingent consideration write-off | 0 | 0 |
Restructuring expense | 275 | 428 |
Acquisitions expense | 0 | 0 |
Income from operations | 4,313 | 3,689 |
Interest expense | -5,591 | -4,259 |
Other, net | 122 | 112 |
Income (loss) from equity investments in subsidiaries | 0 | 0 |
Total other expense | -5,469 | -4,147 |
Loss before income taxes | -1,156 | -458 |
Provision (benefit) for income taxes | 309 | -16 |
Net loss | -1,465 | -442 |
Change in foreign currency translation adjustment | -79 | 44 |
Reclassification adjustment for losses on interest rate hedges included in net earnings | 0 | 0 |
Unrealized loss arising during period from interest rate hedges, net of tax of $0 for the three months ended March 31, 2014 | 0 | -129 |
Total comprehensive loss | -1,544 | -527 |
LMIA(Guarantor Parent) | ||
Condensed Income Statements, Captions [Line Items] | ||
Product sales | 18 | 480 |
Service revenue | 9,213 | 10,149 |
Net sales | 9,231 | 10,629 |
Cost of product sales | 16 | 699 |
Cost of service revenue | 9,232 | 9,600 |
Cost of sales | 9,248 | 10,299 |
Gross profit | -17 | 330 |
Selling, general and administrative expenses | 129 | 22 |
Goodwill and intangible asset impairment | 0 | 0 |
Contingent consideration write-off | 0 | 0 |
Restructuring expense | 89 | 294 |
Acquisitions expense | 0 | 0 |
Income from operations | -235 | 14 |
Interest expense | -5,319 | -3,966 |
Other, net | 2 | 28 |
Income (loss) from equity investments in subsidiaries | 2,411 | 2,196 |
Total other expense | -2,906 | -1,742 |
Loss before income taxes | -3,141 | -1,728 |
Provision (benefit) for income taxes | -1,676 | -1,286 |
Net loss | -1,465 | -442 |
Change in foreign currency translation adjustment | 0 | 0 |
Reclassification adjustment for losses on interest rate hedges included in net earnings | 0 | 0 |
Unrealized loss arising during period from interest rate hedges, net of tax of $0 for the three months ended March 31, 2014 | 0 | -129 |
Total comprehensive loss | -1,465 | -571 |
Guarantor Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
Product sales | 78,457 | 76,484 |
Service revenue | 13,993 | 19,279 |
Net sales | 92,450 | 95,763 |
Cost of product sales | 62,553 | 61,881 |
Cost of service revenue | 12,683 | 16,751 |
Cost of sales | 75,236 | 78,632 |
Gross profit | 17,214 | 17,131 |
Selling, general and administrative expenses | 12,480 | 13,322 |
Goodwill and intangible asset impairment | 0 | 0 |
Contingent consideration write-off | 0 | 0 |
Restructuring expense | 186 | 134 |
Acquisitions expense | 0 | 0 |
Income from operations | 4,548 | 3,675 |
Interest expense | -272 | -293 |
Other, net | 120 | 84 |
Income (loss) from equity investments in subsidiaries | 0 | 0 |
Total other expense | -152 | -209 |
Loss before income taxes | 4,396 | 3,466 |
Provision (benefit) for income taxes | 1,985 | 1,270 |
Net loss | 2,411 | 2,196 |
Change in foreign currency translation adjustment | -79 | 44 |
Reclassification adjustment for losses on interest rate hedges included in net earnings | 0 | 0 |
Unrealized loss arising during period from interest rate hedges, net of tax of $0 for the three months ended March 31, 2014 | 0 | 0 |
Total comprehensive loss | 2,332 | 2,240 |
Consolidating/Eliminating Entries | ||
Condensed Income Statements, Captions [Line Items] | ||
Product sales | -18 | -480 |
Service revenue | -9,188 | -10,161 |
Net sales | -9,206 | -10,641 |
Cost of product sales | -18 | -480 |
Cost of service revenue | -9,188 | -10,161 |
Cost of sales | -9,206 | -10,641 |
Gross profit | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
Goodwill and intangible asset impairment | 0 | 0 |
Contingent consideration write-off | 0 | 0 |
Restructuring expense | 0 | 0 |
Acquisitions expense | 0 | 0 |
Income from operations | 0 | 0 |
Interest expense | 0 | 0 |
Other, net | 0 | 0 |
Income (loss) from equity investments in subsidiaries | -2,411 | -2,196 |
Total other expense | -2,411 | -2,196 |
Loss before income taxes | -2,411 | -2,196 |
Provision (benefit) for income taxes | 0 | 0 |
Net loss | -2,411 | -2,196 |
Change in foreign currency translation adjustment | 0 | 0 |
Reclassification adjustment for losses on interest rate hedges included in net earnings | 0 | 0 |
Unrealized loss arising during period from interest rate hedges, net of tax of $0 for the three months ended March 31, 2014 | 0 | 0 |
Total comprehensive loss | ($2,411) | ($2,196) |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net loss | ($1,465) | ($442) |
Adjustments for non-cash items | 5,544 | 5,552 |
Net changes in operating assets and liabilities, net of acquired businesses | -13,355 | 4,905 |
Intercompany activity | 0 | 0 |
Net cash (used) provided by operating activities | -9,276 | 10,015 |
Additions to property, plant and equipment | -6,879 | -4,869 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of property, plant, and equipment | 0 | 899 |
Net cash used by investing activities | -6,879 | -3,970 |
Proceeds from issuance of debt | 0 | 0 |
Principal payments on long-term debt and notes payable | -614 | -1,294 |
Advances on revolving line of credit | 36,000 | 27,500 |
Payments on revolving line of credit | -24,500 | -31,500 |
Payments for debt issuance cost | -94 | 0 |
Other, net | 0 | -28 |
Net cash provided (used) by financing activities | 10,792 | -5,322 |
Net (decrease) increase in cash and cash equivalents | -5,363 | 723 |
Cash and cash equivalents, beginning of period | 7,927 | 1,572 |
Cash and cash equivalents, end of period | 2,564 | 2,295 |
LMIA(Guarantor Parent) | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net loss | -1,465 | -442 |
Adjustments for non-cash items | -3,175 | -1,779 |
Net changes in operating assets and liabilities, net of acquired businesses | -3,583 | 13,121 |
Intercompany activity | -8,147 | -5,508 |
Net cash (used) provided by operating activities | -16,370 | 5,392 |
Additions to property, plant and equipment | -25 | -108 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of property, plant, and equipment | 0 | |
Net cash used by investing activities | -25 | -108 |
Proceeds from issuance of debt | 0 | 0 |
Principal payments on long-term debt and notes payable | -83 | -703 |
Advances on revolving line of credit | 36,000 | 27,500 |
Payments on revolving line of credit | -24,500 | -31,500 |
Payments for debt issuance cost | -94 | 0 |
Other, net | 0 | -28 |
Net cash provided (used) by financing activities | 11,323 | -4,731 |
Net (decrease) increase in cash and cash equivalents | -5,072 | 553 |
Cash and cash equivalents, beginning of period | 7,058 | 405 |
Cash and cash equivalents, end of period | 1,986 | 958 |
Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net loss | 2,411 | 2,196 |
Adjustments for non-cash items | 6,308 | 5,135 |
Net changes in operating assets and liabilities, net of acquired businesses | -9,772 | -8,216 |
Intercompany activity | 8,147 | 5,508 |
Net cash (used) provided by operating activities | 7,094 | 4,623 |
Additions to property, plant and equipment | -6,854 | -4,761 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of property, plant, and equipment | 0 | 899 |
Net cash used by investing activities | -6,854 | -3,862 |
Proceeds from issuance of debt | 0 | 0 |
Principal payments on long-term debt and notes payable | -531 | -591 |
Advances on revolving line of credit | 0 | 0 |
Payments on revolving line of credit | 0 | 0 |
Payments for debt issuance cost | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided (used) by financing activities | -531 | -591 |
Net (decrease) increase in cash and cash equivalents | -291 | 170 |
Cash and cash equivalents, beginning of period | 869 | 1,167 |
Cash and cash equivalents, end of period | 578 | 1,337 |
Consolidating/Eliminating Entries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net loss | -2,411 | -2,196 |
Adjustments for non-cash items | 2,411 | 2,196 |
Net changes in operating assets and liabilities, net of acquired businesses | 0 | 0 |
Intercompany activity | 0 | 0 |
Net cash (used) provided by operating activities | 0 | 0 |
Additions to property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from sale of property, plant, and equipment | 0 | 0 |
Net cash used by investing activities | 0 | 0 |
Proceeds from issuance of debt | 0 | 0 |
Principal payments on long-term debt and notes payable | 0 | 0 |
Advances on revolving line of credit | 0 | 0 |
Payments on revolving line of credit | 0 | 0 |
Payments for debt issuance cost | 0 | 0 |
Other, net | 0 | 0 |
Net cash provided (used) by financing activities | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |