Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 03, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LMI AEROSPACE INC | |
Entity Central Index Key | 1,059,562 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,632,641 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,803 | $ 10,504 |
Accounts receivable, net | 54,815 | 48,491 |
Inventories | 123,779 | 114,775 |
Prepaid expenses and other current assets | 3,733 | 4,147 |
Total current assets | 184,130 | 177,917 |
Property, plant and equipment, net | 96,354 | 100,969 |
Goodwill | 62,482 | 86,784 |
Intangible assets, net | 39,648 | 46,582 |
Other assets | 2,824 | 3,728 |
Total assets | 385,438 | 415,980 |
Current liabilities: | ||
Accounts payable | 21,892 | 13,156 |
Accrued expenses | 21,122 | 30,015 |
Current installments of long-term debt and capital lease obligations | 2,587 | 2,362 |
Total current liabilities | 45,601 | 45,533 |
Long-term liabilities: | ||
Long-term debt and capital lease obligations, less current installments | 247,801 | 247,633 |
Other long-term liabilities | 3,179 | 4,322 |
Deferred income taxes | 0 | 536 |
Total long-term liabilities | 250,980 | 252,491 |
Shareholders’ equity: | ||
Common stock, $0.02 par value per share; authorized 28,000,000 shares; issued 13,632,641 and 13,287,688 shares at September 30, 2016 and December 31, 2015, respectively | 273 | 266 |
Preferred stock, $0.02 par value per share; authorized 2,000,000 shares; none issued at either date | 0 | 0 |
Additional paid-in capital | 99,563 | 97,617 |
Accumulated other comprehensive loss | (332) | (211) |
Treasury stock, at cost, 39,419 shares at December 31, 2015 | 0 | (418) |
Retained (deficit) earnings | (10,647) | 20,702 |
Total shareholders’ equity | 88,857 | 117,956 |
Total liabilities and shareholders' equity | $ 385,438 | $ 415,980 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
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) | 13,632,641 | 13,287,688 |
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) | 0 | 39,419 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Sales and service revenue | ||||
Product sales | $ 79,840 | $ 84,114 | $ 230,182 | $ 246,730 |
Service revenue | 9,833 | 11,519 | 30,815 | 38,928 |
Net sales | 89,673 | 95,633 | 260,997 | 285,658 |
Cost of sales and service revenue | ||||
Cost of product sales | 64,839 | 67,514 | 184,520 | 197,211 |
Cost of service revenue | 8,988 | 11,493 | 28,865 | 35,853 |
Cost of sales | 73,827 | 79,007 | 213,385 | 233,064 |
Gross profit | 15,846 | 16,626 | 47,612 | 52,594 |
Selling, general and administrative expenses | 10,143 | 8,979 | 33,764 | 33,980 |
Goodwill and Intangible Asset Impairment | 0 | 0 | 28,368 | 0 |
Restructuring expense | 3 | 1,575 | 1,190 | 2,368 |
Income (loss) from operations | 5,700 | 6,072 | (15,710) | 16,246 |
Other (expense) income: | ||||
Interest expense | (5,591) | (5,653) | (16,067) | (16,802) |
Other, net | 41 | (136) | (306) | (89) |
Total other expense | (5,550) | (5,789) | (16,373) | (16,891) |
(Loss) income before income taxes | 150 | 283 | (32,083) | (645) |
(Benefit) provision for income taxes | 159 | (249) | 734 | (408) |
Net income (loss) | 309 | 34 | (31,349) | (1,053) |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (33) | (32) | (121) | (31) |
Total comprehensive income (loss) | $ 276 | $ 2 | $ (31,470) | $ (1,084) |
Amounts per common share: | ||||
Net income (loss) per common share | $ 0.02 | $ 0 | $ (2.39) | $ (0.08) |
Net income (loss) per common share assuming dilution | $ 0.02 | $ 0 | $ (2.39) | $ (0.08) |
Weighted average common shares (in shares) | 13,176,538 | 12,907,938 | 13,092,869 | 12,851,456 |
Weighted average dilutive common shares outstanding (in shares) | 13,233,926 | 13,050,238 | 13,092,869 | 12,851,456 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net loss | $ (31,349) | $ (1,053) |
Adjustments to reconcile net loss to net cash (used) provided by operating activities: | ||
Depreciation and amortization | 14,536 | 15,018 |
Amortization of debt issuance cost | 1,432 | 1,479 |
Goodwill and Intangible Asset Impairment | 28,368 | 0 |
Stock based compensation | 1,089 | 1,424 |
Deferred taxes | (723) | (78) |
Other non-cash items | 31 | (94) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,514) | (3,238) |
Inventories | (9,472) | (4,993) |
Prepaid expenses and other assets | 831 | 435 |
Current income taxes | 180 | (75) |
Accounts payable | 9,032 | (1,754) |
Accrued expenses | (7,758) | (1,354) |
Net cash (used) provided by operating activities | (317) | 5,717 |
Investing activities: | ||
Additions to property, plant and equipment | (7,671) | (15,305) |
Proceeds from sale of property, plant and equipment | 27 | 260 |
Net cash used by investing activities | (7,644) | (15,045) |
Financing activities: | ||
Proceeds from issuance of debt | 1,465 | 0 |
Principal payments on long-term debt and notes payable | (12,108) | (1,814) |
Advances on revolving line of credit | 38,500 | 93,500 |
Payments on revolving line of credit | (28,500) | (89,500) |
Payments for debt issuance cost | (97) | (309) |
Net cash (used) provided by financing activities | (740) | 1,877 |
Net decrease in cash and cash equivalents | (8,701) | (7,451) |
Cash and cash equivalents, beginning of period | 10,504 | 7,927 |
Cash and cash equivalents, end of period | 1,803 | 476 |
Supplemental disclosure of non-cash transactions: | ||
Defined contribution plan funding in Company stock | $ 1,472 | $ 710 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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 recurring adjustments considered necessary for a fair statement have been included. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . 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, as amended, of LMI Aerospace, Inc. (the "Company”, "us", "we", "our") for the year ended December 31, 2015 , as filed with the Securities and Exchange Commission on March 17, 2016. 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 July 9, 2015 the FASB voted to approve 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 new standard is effective for reporting periods beginning after December 15, 2017. 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 2018. The Company has engaged external subject-matter experts and continues to evaluate the transition method to be used and the impact of adoption of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases." The standard requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The new standard also expands the required quantitative and qualitative disclosures surrounding leases. The provisions of this new guidance are effective as of the beginning of the Company’s first quarter of 2019. This new standard will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which amends Accounting Standards Codification (“ASC”) Topic 718, Compensation – Stock Compensation. The standard requires excess tax benefits or deficiencies for share-based payments be recorded in the period shares vest as income tax expense or benefit, rather than within Additional Paid-in Capital. Cash flows related to excess tax benefits will be included in operating activities and will no longer be separately classified as a financing activity. As the Company carries a full valuation allowance against its net deferred tax assets, we do not expect that this standard will have a material impact on our financial statements. The new standard is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. The Company plans to adopt the new standard effective January 1, 2017. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments." The guidance addresses the classification of cash flow related to (1) debt prepayment or extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance, including bank-owned life insurance, (6) distributions received from equity method investees and (7) beneficial interests in securitization transactions. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The guidance will generally be applied retrospectively and is effective for financial statements issued for annual reporting periods beginning after December 15, 2017. Early application is permitted. We are currently evaluating the impact of this standard on our consolidated statement of cash flows. All other issued but not yet effective accounting pronouncements are not expected to have a material impact on our Condensed Consolidated Financial Statements. |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | Assets and Liabilities Measured at Fair Value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the methodologies used at September 30, 2016 . There were no transfers between levels during 2016 and 2015. 2016 Assets and Liabilities at Fair Value Total as of September 30, 2016 Gains Total (Level 1) (Level 2) (Level 3) (Losses) Non-recurring Fair Value Measurements: Asset: Intangible assets, net (1) $ 39,648 $ — $ — $ 39,648 $ 4,066 Goodwill (1) $ 62,482 $ — $ — $ 62,482 $ 24,302 (1) The fair value of goodwill is tested at least annually for impairment. During the quarter ended June 30, 2016, a triggering event occurred that required the Company to perform an interim impairment analysis for the goodwill and intangible assets within the Engineering Services reporting unit. This analysis determined the related goodwill and intangible assets were impaired and a loss of $28,368 was recorded in the quarter. 2015 Assets and Liabilities at Fair Value Total as of December 31, 2015 Gains Total (Level 1) (Level 2) (Level 3) (Losses) Non-recurring Fair Value Measurements: Asset: Intangible assets, net $ 46,582 $ — $ — $ 46,582 $ — Goodwill (1) $ 86,784 $ — $ — $ 86,784 $ — (1) The Company performed its annual impairment analysis of goodwill during the fourth quarter of 2015 and determined no adjustments to the carrying value were necessary. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable, net consists of the following: September 30, 2016 December 31, 2015 Trade receivables $ 48,905 $ 42,307 Unbilled revenue 4,435 4,869 Other receivables 1,776 1,561 55,116 48,737 Less: Allowance for doubtful accounts (301 ) (246 ) Accounts receivable, net $ 54,815 $ 48,491 Under contract accounting, unbilled revenues arise when the sales or revenues based on performance attainment, though appropriately recognized, cannot be billed yet under terms of the contract as of the balance sheet date. Included in unbilled revenue at September 30, 2016 and December 31, 2015 are $872 and $858 , 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Favorable adjustments $ 436 $ 96 $ 726 $ 554 Unfavorable adjustments (377 ) (2,183 ) (590 ) (2,214 ) Net favorable operating income adjustments $ 59 $ (2,087 ) $ 136 $ (1,660 ) At September 30, 2016 and December 31, 2015 , the Company had recognized a loss reserve of $2,154 and $1,992 , respectively, on the Mitsubishi Regional Jet design-build program. Adjustments related to this program were recorded as a reduction to revenue in the Consolidated Statements of Comprehensive Income (Loss). |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, 2016 December 31, 2015 Raw materials $ 13,579 $ 12,513 Work in progress 25,528 22,681 Manufactured and purchased components 22,584 19,224 Finished goods 27,355 28,169 Product inventory 89,046 82,587 Capitalized contract costs 34,733 32,188 Total inventories $ 123,779 $ 114,775 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. In accordance with ASC 605-35-45-1&2, the provisions for anticipated losses on contracts are accounted for as additional contract cost and recognized as part of cost of sales. Provisions for losses are recorded as a reduction of related contract costs recorded in inventory. At September 30, 2016 and December 31, 2015, the Company had no contracts with loss reserves accounted for as a reduction of inventory. Capitalized contract costs at September 30, 2016 and December 31, 2015 include $5,522 and $5,970 respectively, related to an agreement the Company signed with Spirit Aerosystems ("Spirit".) This agreement extended the performance period of the statements of work for certain contracts with Spirit and gave the Company preferred supplier status on certain future contracts. This consideration is being amortized as a reduction to revenue over the life of the related contracts. The remaining capitalized contract costs relate primarily to four early-stage long-term contracts. The Company expects these costs will not be realized within one year but believes these amounts will be fully recovered over the life of the related contracts. The following table illustrates the market to which capitalized contract cost at September 30, 2016 and December 31, 2015 related: September 30, 2016 December 31, 2015 Large commercial aircraft $ 9,787 $ 11,528 Corporate and regional aircraft 20,368 16,721 Military 4,578 3,939 Total capitalized contract cost $ 34,733 $ 32,188 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table summarizes the net carrying amount of goodwill by segment at September 30, 2016 and December 31, 2015 , respectively: Engineering Aerostructures Services Total September 30, December 31, September 30, December 31, September 30, December 31, 2016 2015 2016 2015 2016 2015 Balance at: Gross Goodwill $ 141,953 $ 141,953 $ 50,741 $ 50,741 $ 192,694 $ 192,694 Accumulated impairment loss (79,471 ) (79,471 ) (50,741 ) (26,439 ) (130,212 ) (105,910 ) Net Goodwill $ 62,482 $ 62,482 $ — $ 24,302 $ 62,482 $ 86,784 The carrying value of goodwill is assessed annually, during the fourth quarter, unless a triggering event occurs. Following an assessment, an impairment charge is recorded if appropriate. A triggering event did not occur in the third quarter of 2016 that would require the Company to perform an impairment evaluation. In the second quarter of 2016, the Company significantly downgraded the full-year 2016 sales and operating income forecast for its Engineering Services business due to continued decline in demand. This downward adjustment to the forecast, combined with lower than expected operating results for the second quarter of 2016, was deemed to be a triggering event requiring an interim impairment evaluation for the Engineering Services reporting unit in accordance with ASC 350. The interim step one analysis performed, which used a combination of discounted cash flows and market value approaches to determine the fair value of the Engineering Services reporting unit, indicated the fair value was less than the carrying value of its net assets. The required step two valuation analysis, prepared as of June 30, 2016, indicated that the $24,302 of goodwill related to Engineering Services was fully impaired. The resulting impairment charge was recorded in the quarter ended June 30, 2016 and is reflected in the Engineering Services segment within the Goodwill and Intangible Asset Impairment line of the Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2016. Intangible Assets Intangible assets primarily consist of trademarks and customer intangibles. The carrying values were as follows: September 30, 2016 December 31, 2015 Trademarks $ 778 $ 778 Customer intangible assets 68,991 68,991 Other 1,274 1,274 Accumulated amortization and impairment (31,395 ) (24,461 ) Intangible assets, net $ 39,648 $ 46,582 Intangibles amortization expense was $796 and $1,089 for the three months ended September 30, 2016 and 2015 , respectively, and $2,868 and $3,269 for the nine months ended September 30, 2016 and 2015 , respectively. The accumulated amortization balances at September 30, 2016 and December 31, 2015 , respectively, were $778 and $778 for trademarks, $29,636 and $22,816 for customer intangible assets, and $981 and $867 for other intangible assets. In conjunction with the interim impairment analysis conducted during the current-year as discussed above, the Company also evaluated the recoverability of the customer intangible assets related to the Engineering Services reporting unit under ASC 360. As a result of this analysis, an impairment charge of $4,066 was recognized in the Engineering Services segment within the Goodwill and Intangible Asset Impairment line of the Condensed Consolidated Statements of Comprehensive Income (Loss) for the nine months ended September 30, 2016. Intangible assets related to the acquisition of Valent Aerostructures, LLC 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. |
Long-term Debt and Capital Leas
Long-term Debt and Capital Lease Obligations | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, 2016 December 31, 2015 Second priority senior secured notes at a fixed rate of 7.375% at September 30, 2016 $ 224,175 $ 234,175 Revolver under credit agreement, variable 10,000 — Industrial Revenue Bonds at fixed rates of 2.80% to 5.00% at September 30, 2016 and December 31, 2015 6,569 6,901 Capital leases, at fixed rates ranging from 3.00% to 4.50% and 3.00% to 7.73% at September 30, 2016 and December 31, 2015 10,657 11,708 Notes payable, principal and interest payable monthly, at fixed rates ranging from 2.45% to 2.56% at September 30, 2016 and December 31, 2015 2,491 1,750 Debt issuance cost (3,504 ) (4,539 ) Total debt $ 250,388 $ 249,995 Less current installments 2,587 2,362 Total long-term debt and capital lease obligations $ 247,801 $ 247,633 At September 30, 2016 , the Company had $224,175 in outstanding second-priority senior secured notes maturing on July 15, 2019. The Company records these notes at cost. The fair value of these notes, based on the last market price transaction in the quarter ended September 30, 2016 of 1.0075, was $225,856 . During the quarter ended September 30, 2016 , the Company repurchased and retired $10,000 of the outstanding notes at a premium of 1.01875 plus accrued interest. Obligations under these notes are secured by substantially all of the Company’s assets and bear interest at 7.375% , paid semi-annually in January and July. The Company's revolving credit agreement provides for a revolving credit facility of up to $90,000 . At September 30, 2016 , the Company had $10,000 in outstanding borrowings under the facility. Under the agreement, the co-collateral agents may establish a reserve against the facility. At September 30, 2016 , the reserve established was $15,000 , which reduced the maximum availability to $75,000 . Based on the amount of eligible assets at September 30, 2016 and outstanding letters of credit of $1,525 , available borrowings were further reduced to $44,291 . The maximum amount, less reserves, available for borrowing at levels below $30,000 is 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 is 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, 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 1.0% . For the nine months ended September 30, 2016 , the actual interest rate incurred for the revolving credit facility was 5.8% on average outstanding borrowings of $1,821 . The Company is required to pay a commitment fee of between 0.375% and 0.5% per annum on the unused portion of the revolving credit facility, depending on the average revolver usage during the period as compared to the total available borrowings under the facility. At September 30, 2016 , the commitment fee was 0.5% . The revolving credit facility matures on the earlier of July 15, 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 any current or future downturns in our business or the economy in general, conduct operations or otherwise take advantage of business opportunities that may arise, any of which could place us at a competitive disadvantage relative to our competitors that have less debt and are not subject to such restrictions. At September 30, 2016 , the Company was in compliance with all of its covenants and expects to be in compliance with its covenants in future periods. If the Company fails to meet any covenants in the credit agreement, the Company would not be in compliance with the 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. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
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 treasury stock method. The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerators Net income (loss) $ 309 $ 34 $ (31,349 ) $ (1,053 ) Denominators Weighted average common shares - basic 13,176,538 12,907,938 13,092,869 12,851,456 Dilutive effect of restricted stock 57,388 142,300 — — Weighted average common shares - diluted 13,233,926 13,050,238 13,092,869 12,851,456 Basic earnings (loss) per share $ 0.02 $ — $ (2.39 ) $ (0.08 ) Diluted earnings (loss) per share $ 0.02 $ — $ (2.39 ) $ (0.08 ) For the nine months ended September 30, 2016 , 81,734 restricted shares were 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. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
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 “ 2005 Plan”). The 2005 Plan provided 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 were subject to a time-based vesting schedule. All outstanding share-based grants under the 2005 Plan are in the form of restricted stock. A summary of the activity for non-vested restricted stock awards under the 2005 Plan is presented below: Restricted Stock Awards Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2016 253,434 $ 14.54 Granted — — Vested (53,846 ) 17.89 Forfeited (18,580 ) 14.21 Outstanding at September 30, 2016 181,008 $ 13.58 Common stock compensation expense related to restricted stock awards granted under the 2005 Plan was $58 and $224 for the three months ended September 30, 2016 and 2015 , respectively, and $401 and $1,154 for the nine months ended September 30, 2016 and 2015 , respectively. Total unrecognized compensation costs related to non-vested, share-based awards granted or awarded under the 2005 Plan were $1,254 and $1,762 at September 30, 2016 and December 31, 2015 , respectively. These costs are expected to be recognized over a weighted average period of 1.3 years and 1.6 years , at September 30, 2016 and December 31, 2015 , respectively. As of July 7, 2015 the Company was no longer able to grant new awards under the 2005 Plan. On June 24, 2015, the Company's shareholders approved the LMI Aerospace, Inc. 2015 Incentive Compensation Plan (the “2015 Plan”), which became effective on July 1, 2015. Under the 2015 Plan, the Company, through the Compensation Committee of the Board of Directors, may, at its discretion, grant stock options, restricted shares of common stock, and other various stock-based awards to directors, officers, employees and consultants. A total of 750,000 shares of the Company’s common stock have been reserved for issuance under the 2015 Plan. All outstanding share-based grants under the 2015 Plan are in the form of restricted stock. A summary of the activity for non-vested restricted stock awards under the 2015 Plan is presented below: Restricted Stock Awards Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2016 61,801 $ 9.79 Granted 269,875 8.51 Vested (1) (55,672 ) 9.79 Forfeited (6,899 ) 9.43 Outstanding at September 30, 2016 269,105 $ 8.52 (1) Excludes 6,129 shares for which service requirements are met that remain subject to deferral at September 30, 2016 pursuant to the LMI Aerospace, Inc. Non-Qualified Deferred Compensation Plan for Senior Executives and Outside Directors. Common stock compensation expense related to restricted stock awards granted under the 2015 Plan was $271 and $151 for the three months ended September 30, 2016 and 2015 , respectively, and $695 and $151 for the nine months ended September 30, 2016 and 2015 , respectively. Total unrecognized compensation costs related to non-vested, share-based awards granted or awarded under the 2015 Plan were $1,223 and $303 at September 30, 2016 and December 31, 2015 , respectively. These costs are expected to be recognized over a weighted average period of 1.9 years and 0.5 years at September 30, 2016 and December 31, 2015 , respectively. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
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. This segment manufactures more than 40,000 products for integration into a variety of aircraft platforms manufactured by leading original equipment manufacturers and Tier 1 aerospace suppliers. Through its Engineering Services segment, the Company provides a complete range of design, engineering and program management services, supporting aircraft product lifecycles from conceptual design, analysis and certification through production support, fleet support and service life extensions via a complete turnkey engineering solution. Corporate assets, liabilities and expenses related to the Company's corporate offices, except for interest expense and income taxes, primarily support, and are recorded in, the Aerostructures segment. The table below presents information about reported segments on the same basis used internally to evaluate segment performance: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Net sales: Aerostructures $ 80,433 $ 85,119 $ 232,846 $ 249,661 Engineering Services 9,474 10,826 29,239 36,818 Eliminations (234 ) (312 ) (1,088 ) (821 ) $ 89,673 $ 95,633 $ 260,997 $ 285,658 Income from operations: Aerostructures $ 5,667 $ 8,918 $ 13,193 $ 20,063 Engineering Services (1) 89 (2,805 ) (28,570 ) (3,803 ) Eliminations (56 ) (41 ) (333 ) (14 ) $ 5,700 $ 6,072 $ (15,710 ) $ 16,246 (1) The nine months ended September 30, 2016 include a charge of $23,402 related to goodwill impairment and a charge of $4,066 related to intangible asset impairment. (See Note 4, Goodwill and Intangible Assets, to the Condensed Consolidated Financial Statements) |
Customer Concentration
Customer Concentration | 9 Months Ended |
Sep. 30, 2016 | |
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 40.7% and 34.4% of the Company’s total revenues for the three months ended September 30, 2016 and 2015 , respectively. Direct sales to Spirit accounted for 38.6% and 34.8% of the Company’s total revenues for the nine months ended September 30, 2016 and 2015 , respectively. Accounts receivable balances related to Spirit were 33.9% and 28.6% of the Company’s total accounts receivable balance at September 30, 2016 and December 31, 2015 , 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 13.5% and 15.9% of the Company’s total revenues for the three months ended September 30, 2016 and 2015 , respectively. Direct sales to Gulfstream accounted for 11.6% and 14.3% of the Company’s total revenues for the nine months ended September 30, 2016 and 2015 , respectively. Accounts receivable balances resulting from direct sales to Gulfstream were 13.3% and 15.5% of the Company’s total accounts receivable balance at September 30, 2016 and December 31, 2015 , respectively. Direct sales, through both of the Company’s business segments, to our third largest customer, The Boeing Company, (“Boeing”), accounted for 12.1% and 12.6% of the Company’s total revenues for the three months ended September 30, 2016 and 2015 , respectively. Direct sales to Boeing accounted for 11.4% and 11.4% of the Company’s total revenues for the nine months ended September 30, 2016 and 2015 , respectively. Accounts receivable balances related to Boeing were 9.4% and 10.2% of the Company’s total accounts receivable balance at September 30, 2016 and December 31, 2015 , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
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 benefits of $159 and $734 were recognized in the three and nine months ended September 30, 2016 , respectively. Income tax expense of $249 and $408 were recognized in the three and nine months ended September 30, 2015 , respectively. The Company continues to carry a full valuation allowance on its net deferred tax assets, which totaled $20,273 and $14,461 at September 30, 2016 and December 31, 2015 , respectively. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company committed to and implemented various restructuring plans in 2015 and 2016. Included in those plans were the 2016 relocation of its sheet-metal fabrication operation in Wichita, Kansas and the 2015 relocation of its machining operations in St. Charles, Missouri to other facilities within the Company. In 2015, the Company also closed its Coweta, Oklahoma manufacturing facility in addition to Engineering offices in Greenville, South Carolina and Melbourne, Australia. In addition, the Company implemented other employment separation activities 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: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 St. Charles machine parts operations relocation $ — $ — $ — $ 378 Wichita, Kansas sheet-metal operations relocation 49 — 296 — Coweta machining facility closure — 64 — 64 Greenville office closure — 501 (26 ) 501 Australia office closure — 34 — 34 Other employment separation activities (46 ) 976 920 1,391 Total $ 3 $ 1,575 $ 1,190 $ 2,368 Expense incurred by segment: Aerostructures $ 3 $ 336 $ 1,216 $ 1,114 Engineering Services — 1,239 (26 ) 1,254 Total $ 3 $ 1,575 $ 1,190 $ 2,368 The Company expects to recognize an additional $22 of restructuring expenses in the fourth quarter of 2016 related to the Wichita, Kansas sheet-metal operations relocation. Cash payments were made associated with restructuring plans of $188 and $1,165 in the three months ended September 30, 2016 and 2015 , respectively, and $870 and $2,175 in the nine months ended September 30, 2016 and 2015 , respectively. The following table summarizes the Company's restructuring activities during the nine months ended September 30, 2016 : Employee Severance Other Total Accrued restructuring balance as of December 31, 2015 $ 162 $ 93 $ 255 Accrual additions 1,216 (26 ) 1,190 Cash payments (803 ) (67 ) (870 ) Accrued restructuring balance as of September 30, 2016 $ 575 $ — $ 575 Accrued restructuring of $575 at September 30, 2016 is expected to be paid over the next two quarters. |
Legal Contingencies
Legal Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | Legal Contingencies The Company is not named as a defendant in a lawsuit that is outside the normal course of business. In accordance with generally accepted accounting principles, management discloses the amount or range of reasonably possible losses in a lawsuit in which the Company is a named defendant. In the opinion of management, after consulting with legal counsel, any losses resulting from lawsuits in the normal course of business should not have a material effect on the Company’s financial position, cash flows or results of operations. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2016 | |
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 July 15, 2019 (the “Notes”). The payment obligations of LMIA under the Notes are guaranteed and secured by LMIA and all of its subsidiaries other than minor 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 minor 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”) rules governing reporting on guarantor 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 as of September 30, 2016 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Assets Current assets: Cash and cash equivalents $ 1,590 $ 213 $ — $ 1,803 Trade accounts receivable, net 631 54,184 — 54,815 Intercompany receivables 284,892 277,828 (562,720 ) — Inventories — 123,779 — 123,779 Prepaid expenses and other current assets 1,512 2,221 — 3,733 Total current assets 288,625 458,225 (562,720 ) 184,130 Property, plant and equipment, net 6,343 90,011 — 96,354 Investments in subsidiaries 370,244 — (370,244 ) — Goodwill — 62,482 — 62,482 Intangible assets, net — 39,648 — 39,648 Other assets 1,651 1,173 — 2,824 Total assets $ 666,863 $ 651,539 $ (932,964 ) $ 385,438 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 653 $ 21,239 $ — $ 21,892 Accrued expenses 8,572 12,550 — 21,122 Intercompany payables 336,966 225,754 (562,720 ) — Current installments of long-term debt and capital lease obligations 88 2,499 — 2,587 Total current liabilities 346,279 262,042 (562,720 ) 45,601 Long-term debt and capital lease obligations, less current installments 230,813 16,988 — 247,801 Other long-term liabilities 914 2,265 — 3,179 Deferred income taxes — — — — Total long-term liabilities 231,727 19,253 — 250,980 Total shareholders’ equity 88,857 370,244 (370,244 ) 88,857 Total liabilities and shareholders’ equity $ 666,863 $ 651,539 $ (932,964 ) $ 385,438 CONDENSED CONSOLIDATING BALANCE SHEET as of December 31, 2015 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Assets Current assets: Cash and cash equivalents $ 10,251 $ 253 $ — $ 10,504 Trade accounts receivable, net 1,220 47,271 — 48,491 Intercompany receivables 196,496 203,128 (399,624 ) $ — Inventories — 114,775 — 114,775 Prepaid expenses and other current assets 2,224 1,923 — 4,147 Total current assets 210,191 367,350 (399,624 ) 177,917 Property, plant and equipment, net 5,430 95,539 — 100,969 Investments in subsidiaries 387,868 — (387,868 ) — Goodwill — 86,784 — 86,784 Intangible assets, net — 46,582 — 46,582 Other assets 2,135 1,593 — 3,728 Total assets $ 605,624 $ 597,848 $ (787,492 ) $ 415,980 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 1,393 $ 11,763 $ — $ 13,156 Accrued expenses 17,009 13,006 — 30,015 Intercompany payables 237,548 162,076 (399,624 ) — Current installments of long-term debt and capital lease obligations 85 2,277 — 2,362 Total current liabilities 256,035 189,122 (399,624 ) 45,533 Long-term debt and capital lease obligations, less current installments 229,752 17,881 — 247,633 Other long-term liabilities 1,881 2,441 — 4,322 Deferred income taxes — 536 — 536 Total long-term liabilities 231,633 20,858 — 252,491 Total shareholders’ equity 117,956 387,868 (387,868 ) 117,956 Total liabilities and shareholders’ equity $ 605,624 $ 597,848 $ (787,492 ) $ 415,980 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2016 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Sales and service revenue Product sales $ (19 ) $ 79,841 $ 18 $ 79,840 Service revenues 9,767 9,831 (9,765 ) 9,833 Net sales 9,748 89,672 (9,747 ) 89,673 Cost of sales and service revenue Cost of product sales — 64,857 (18 ) 64,839 Cost of service revenues 9,492 9,054 (9,558 ) 8,988 Cost of sales 9,492 73,911 (9,576 ) 73,827 Gross profit 256 15,761 (171 ) 15,846 Selling, general and administrative expenses — 10,143 — 10,143 Goodwill and intangible — — — — Restructuring expense (47 ) 50 — 3 (Loss) income from operations 303 5,568 (171 ) 5,700 Other income (expense): Interest expense (5,369 ) (222 ) — (5,591 ) Other, net — 41 — 41 Income (loss) from equity investments in subsidiaries 5,513 — (5,513 ) — Total other expense 144 (181 ) (5,513 ) (5,550 ) (Loss) income before income taxes 447 5,387 (5,684 ) 150 (Benefit) provision for income taxes — (159 ) — (159 ) Net (loss) income 447 5,546 (5,684 ) 309 Other comprehensive income (expense): Change in foreign currency translation adjustment — (33 ) — (33 ) Total comprehensive (loss) income $ 447 $ 5,513 $ (5,684 ) $ 276 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2015 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Sales and service revenue Product sales $ 4 $ 84,099 $ 11 $ 84,114 Service revenues 7,640 11,545 (7,666 ) 11,519 Net sales 7,644 95,644 (7,655 ) 95,633 Cost of sales and service revenue Cost of product sales 27 67,476 11 67,514 Cost of service revenues 7,991 11,166 (7,664 ) 11,493 Cost of sales 8,018 78,642 (7,653 ) 79,007 Gross profit (374 ) 17,002 (2 ) 16,626 Selling, general and administrative expenses — 8,979 — 8,979 Restructuring expense — 1,575 — 1,575 (Loss) income from operations (374 ) 6,448 (2 ) 6,072 Other income (expense): Interest expense (5,389 ) (264 ) — (5,653 ) Other, net (1 ) (135 ) — (136 ) Income (loss) from equity investments in subsidiaries 3,541 — (3,541 ) — Total other expense (1,849 ) (399 ) (3,541 ) (5,789 ) (Loss) income before income taxes (2,223 ) 6,049 (3,543 ) 283 (Benefit) provision for income taxes (2,227 ) 2,476 — 249 Net (loss) income 4 3,573 (3,543 ) 34 Other comprehensive income (expense): Change in foreign currency translation adjustment — (32 ) — (32 ) Total comprehensive (loss) income $ 4 $ 3,541 $ (3,543 ) $ 2 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Nine Months Ended September 30, 2016 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Sales and service revenue Product sales $ 43 $ 230,153 $ (14 ) $ 230,182 Service revenues 31,952 30,836 (31,973 ) 30,815 Net sales 31,995 260,989 (31,987 ) 260,997 Cost of sales and service revenue Cost of product sales 80 184,426 14 184,520 Cost of service revenues 32,017 28,849 (32,001 ) 28,865 Cost of sales 32,097 213,275 (31,987 ) 213,385 Gross profit (102 ) 47,714 — 47,612 Selling, general and administrative expenses — 33,764 — 33,764 Goodwill and intangible asset impairment — 28,368 — 28,368 Restructuring expense 404 786 — 1,190 (Loss) income from operations (506 ) (15,204 ) — (15,710 ) Other income (expense): Interest expense (15,415 ) (652 ) — (16,067 ) Other, net 4 (310 ) — (306 ) Income (loss) from equity investments in subsidiaries (15,553 ) — 15,553 — Total other expense (30,964 ) (962 ) 15,553 (16,373 ) (Loss) income before income taxes (31,470 ) (16,166 ) 15,553 (32,083 ) (Benefit) provision for income taxes — (734 ) — (734 ) Net (loss) income (31,470 ) (15,432 ) 15,553 (31,349 ) Other comprehensive income (expense): Change in foreign currency translation adjustment — (121 ) — (121 ) Total comprehensive (loss) income $ (31,470 ) $ (15,553 ) $ 15,553 $ (31,470 ) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Nine Months Ended September 30, 2015 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Sales and service revenue Product sales $ 207 $ 246,699 $ (176 ) $ 246,730 Service revenues 26,729 38,942 (26,743 ) 38,928 Net sales 26,936 285,641 (26,919 ) 285,658 Cost of sales and service revenue Cost of product sales 214 197,173 (176 ) 197,211 Cost of service revenues 27,440 35,155 (26,742 ) 35,853 Cost of sales 27,654 232,328 (26,918 ) 233,064 Gross profit (718 ) 53,313 (1 ) 52,594 Selling, general and administrative expenses — 33,980 — 33,980 Restructuring expense 318 2,050 — 2,368 (Loss) income from operations (1,036 ) 17,283 (1 ) 16,246 Other income (expense): Interest expense (16,029 ) (773 ) — (16,802 ) Other, net (1 ) (88 ) — (89 ) Income (loss) from equity investments in subsidiaries 9,914 — (9,914 ) — Total other expense (6,116 ) (861 ) (9,914 ) (16,891 ) (Loss) income before income taxes (7,152 ) 16,422 (9,915 ) (645 ) (Benefit) provision for income taxes (6,069 ) 6,477 — 408 Net (loss) income (1,083 ) 9,945 (9,915 ) (1,053 ) Other comprehensive income (expense): Change in foreign currency translation adjustment — (31 ) — (31 ) Total comprehensive (loss) income $ (1,083 ) $ 9,914 $ (9,915 ) $ (1,084 ) CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2016 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Operating activities: Net (loss)/income $ (31,470 ) $ (15,432 ) $ 15,553 $ (31,349 ) Adjustments for non-cash items 21,104 39,181 (15,553 ) 44,732 Net changes in operating assets and liabilities, net of acquired businesses (7,466 ) (6,234 ) — (13,700 ) Intercompany activity 11,022 (11,022 ) — — Net cash (used)/provided by operating activities (6,810 ) 6,493 — (317 ) Investing activities: Additions to property, plant and equipment (1,790 ) (5,881 ) — (7,671 ) Proceeds from sale of equipment 3 24 — 27 Net cash used by investing activities (1,787 ) (5,857 ) — (7,644 ) Financing activities: Proceeds from issuance of debt — 1,465 — 1,465 Principal payments on long-term debt and notes payable (10,064 ) (2,044 ) — (12,108 ) Advances on revolving line of credit 38,500 — — 38,500 Payments on revolving line of credit (28,500 ) — — (28,500 ) Payments for debt issuance cost — (97 ) — (97 ) Net cash provided (used)/provided by financing activities (64 ) (676 ) — (740 ) Net (decrease) increase in cash and cash equivalents (8,661 ) (40 ) — (8,701 ) Cash and cash equivalents, beginning of period 10,251 253 — 10,504 Cash and cash equivalents, end of period $ 1,590 $ 213 $ — $ 1,803 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2015 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Operating activities: Net (loss)/income $ (1,083 ) $ 9,945 $ (9,915 ) $ (1,053 ) Adjustments for non-cash items (7,572 ) 13,927 9,915 16,270 Net changes in operating assets and liabilities, net of acquired businesses (1,616 ) (7,884 ) — (9,500 ) Intercompany activity 1,379 (1,379 ) — — Net cash (used)/provided by operating activities (8,892 ) 14,609 — 5,717 Investing activities: Additions to property, plant and equipment (1,606 ) (13,699 ) — (15,305 ) Proceeds from sale of equipment — 260 — 260 Net cash used by investing activities (1,606 ) (13,439 ) — (15,045 ) Financing activities: Principal payments on long-term debt and notes payable (251 ) (1,563 ) — (1,814 ) Advances on revolving line of credit 93,500 — — 93,500 Payments on revolving line of credit (89,500 ) — — (89,500 ) Payments for debt issuance cost (309 ) — — (309 ) Net cash provided (used) by financing activities 3,440 (1,563 ) — 1,877 Net (decrease) increase in cash and cash equivalents (7,058 ) (393 ) — (7,451 ) Cash and cash equivalents, beginning of period 7,058 869 — 7,927 Cash and cash equivalents, end of period $ — $ 476 $ — $ 476 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
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 recurring adjustments considered necessary for a fair statement have been included. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . 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, as amended, of LMI Aerospace, Inc. (the "Company”, "us", "we", "our") for the year ended December 31, 2015 , as filed with the Securities and Exchange Commission on March 17, 2016. |
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 July 9, 2015 the FASB voted to approve 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 new standard is effective for reporting periods beginning after December 15, 2017. 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 2018. The Company has engaged external subject-matter experts and continues to evaluate the transition method to be used and the impact of adoption of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases." The standard requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The new standard also expands the required quantitative and qualitative disclosures surrounding leases. The provisions of this new guidance are effective as of the beginning of the Company’s first quarter of 2019. This new standard will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which amends Accounting Standards Codification (“ASC”) Topic 718, Compensation – Stock Compensation. The standard requires excess tax benefits or deficiencies for share-based payments be recorded in the period shares vest as income tax expense or benefit, rather than within Additional Paid-in Capital. Cash flows related to excess tax benefits will be included in operating activities and will no longer be separately classified as a financing activity. As the Company carries a full valuation allowance against its net deferred tax assets, we do not expect that this standard will have a material impact on our financial statements. The new standard is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. The Company plans to adopt the new standard effective January 1, 2017. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments." The guidance addresses the classification of cash flow related to (1) debt prepayment or extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance, including bank-owned life insurance, (6) distributions received from equity method investees and (7) beneficial interests in securitization transactions. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The guidance will generally be applied retrospectively and is effective for financial statements issued for annual reporting periods beginning after December 15, 2017. Early application is permitted. We are currently evaluating the impact of this standard on our consolidated statement of cash flows. All other issued but not yet effective accounting pronouncements are not expected to have a material impact on our Condensed Consolidated Financial Statements. |
Assets and Liabilities Measur21
Assets and Liabilities Measured at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Non-recurring Fair Value Measurements | 2016 Assets and Liabilities at Fair Value Total as of September 30, 2016 Gains Total (Level 1) (Level 2) (Level 3) (Losses) Non-recurring Fair Value Measurements: Asset: Intangible assets, net (1) $ 39,648 $ — $ — $ 39,648 $ 4,066 Goodwill (1) $ 62,482 $ — $ — $ 62,482 $ 24,302 (1) The fair value of goodwill is tested at least annually for impairment. During the quarter ended June 30, 2016, a triggering event occurred that required the Company to perform an interim impairment analysis for the goodwill and intangible assets within the Engineering Services reporting unit. This analysis determined the related goodwill and intangible assets were impaired and a loss of $28,368 was recorded in the quarter. 2015 Assets and Liabilities at Fair Value Total as of December 31, 2015 Gains Total (Level 1) (Level 2) (Level 3) (Losses) Non-recurring Fair Value Measurements: Asset: Intangible assets, net $ 46,582 $ — $ — $ 46,582 $ — Goodwill (1) $ 86,784 $ — $ — $ 86,784 $ — (1) The Company performed its annual impairment analysis of goodwill during the fourth quarter of 2015 and determined no adjustments to the carrying value were necessary. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Change in Accounting Estimate [Table Text Block] | Cumulative catch-up adjustments had the following impacts to operating income for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Favorable adjustments $ 436 $ 96 $ 726 $ 554 Unfavorable adjustments (377 ) (2,183 ) (590 ) (2,214 ) Net favorable operating income adjustments $ 59 $ (2,087 ) $ 136 $ (1,660 ) |
Schedule of accounts receivable, net | Accounts receivable, net consists of the following: September 30, 2016 December 31, 2015 Trade receivables $ 48,905 $ 42,307 Unbilled revenue 4,435 4,869 Other receivables 1,776 1,561 55,116 48,737 Less: Allowance for doubtful accounts (301 ) (246 ) Accounts receivable, net $ 54,815 $ 48,491 |
Impact of operating income | Cumulative catch-up adjustments had the following impacts to operating income for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Favorable adjustments $ 436 $ 96 $ 726 $ 554 Unfavorable adjustments (377 ) (2,183 ) (590 ) (2,214 ) Net favorable operating income adjustments $ 59 $ (2,087 ) $ 136 $ (1,660 ) At September 30, 2016 and December 31, 2015 , the Company had recognized a loss reserve of $2,154 and $1,992 , respectively, on the Mitsubishi Regional Jet design-build program. Adjustments related to this program were recorded as a reduction to revenue in the Consolidated Statements of Comprehensive Income (Loss). |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Deferred Cost in Inventory by Market [Table Text Block] | The following table illustrates the market to which capitalized contract cost at September 30, 2016 and December 31, 2015 related: September 30, 2016 December 31, 2015 Large commercial aircraft $ 9,787 $ 11,528 Corporate and regional aircraft 20,368 16,721 Military 4,578 3,939 Total capitalized contract cost $ 34,733 $ 32,188 |
Inventories | Inventories consist of the following: September 30, 2016 December 31, 2015 Raw materials $ 13,579 $ 12,513 Work in progress 25,528 22,681 Manufactured and purchased components 22,584 19,224 Finished goods 27,355 28,169 Product inventory 89,046 82,587 Capitalized contract costs 34,733 32,188 Total inventories $ 123,779 $ 114,775 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the net carrying amount of goodwill by segment at September 30, 2016 and December 31, 2015 , respectively: Engineering Aerostructures Services Total September 30, December 31, September 30, December 31, September 30, December 31, 2016 2015 2016 2015 2016 2015 Balance at: Gross Goodwill $ 141,953 $ 141,953 $ 50,741 $ 50,741 $ 192,694 $ 192,694 Accumulated impairment loss (79,471 ) (79,471 ) (50,741 ) (26,439 ) (130,212 ) (105,910 ) Net Goodwill $ 62,482 $ 62,482 $ — $ 24,302 $ 62,482 $ 86,784 |
Finite and infinite lived intangible assets | Intangible assets primarily consist of trademarks and customer intangibles. The carrying values were as follows: September 30, 2016 December 31, 2015 Trademarks $ 778 $ 778 Customer intangible assets 68,991 68,991 Other 1,274 1,274 Accumulated amortization and impairment (31,395 ) (24,461 ) Intangible assets, net $ 39,648 $ 46,582 |
Long-term Debt and Capital Le25
Long-term Debt and Capital Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt and capital lease obligations consist of the following: September 30, 2016 December 31, 2015 Second priority senior secured notes at a fixed rate of 7.375% at September 30, 2016 $ 224,175 $ 234,175 Revolver under credit agreement, variable 10,000 — Industrial Revenue Bonds at fixed rates of 2.80% to 5.00% at September 30, 2016 and December 31, 2015 6,569 6,901 Capital leases, at fixed rates ranging from 3.00% to 4.50% and 3.00% to 7.73% at September 30, 2016 and December 31, 2015 10,657 11,708 Notes payable, principal and interest payable monthly, at fixed rates ranging from 2.45% to 2.56% at September 30, 2016 and December 31, 2015 2,491 1,750 Debt issuance cost (3,504 ) (4,539 ) Total debt $ 250,388 $ 249,995 Less current installments 2,587 2,362 Total long-term debt and capital lease obligations $ 247,801 $ 247,633 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted earnings per share | The following table shows a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share. Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerators Net income (loss) $ 309 $ 34 $ (31,349 ) $ (1,053 ) Denominators Weighted average common shares - basic 13,176,538 12,907,938 13,092,869 12,851,456 Dilutive effect of restricted stock 57,388 142,300 — — Weighted average common shares - diluted 13,233,926 13,050,238 13,092,869 12,851,456 Basic earnings (loss) per share $ 0.02 $ — $ (2.39 ) $ (0.08 ) Diluted earnings (loss) per share $ 0.02 $ — $ (2.39 ) $ (0.08 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
LMI Aerospace, Inc. 2005 Long-Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of the activity for non-vested restricted stock awards | A summary of the activity for non-vested restricted stock awards under the 2005 Plan is presented below: Restricted Stock Awards Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2016 253,434 $ 14.54 Granted — — Vested (53,846 ) 17.89 Forfeited (18,580 ) 14.21 Outstanding at September 30, 2016 181,008 $ 13.58 |
LMI Aerospace, Inc. 2015 Long-term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of the activity for non-vested restricted stock awards | A summary of the activity for non-vested restricted stock awards under the 2015 Plan is presented below: Restricted Stock Awards Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2016 61,801 $ 9.79 Granted 269,875 8.51 Vested (1) (55,672 ) 9.79 Forfeited (6,899 ) 9.43 Outstanding at September 30, 2016 269,105 $ 8.52 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Information about reported segments on the basis used internally to evaluate segment performance | The table below presents information about reported segments on the same basis used internally to evaluate segment performance: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Net sales: Aerostructures $ 80,433 $ 85,119 $ 232,846 $ 249,661 Engineering Services 9,474 10,826 29,239 36,818 Eliminations (234 ) (312 ) (1,088 ) (821 ) $ 89,673 $ 95,633 $ 260,997 $ 285,658 Income from operations: Aerostructures $ 5,667 $ 8,918 $ 13,193 $ 20,063 Engineering Services (1) 89 (2,805 ) (28,570 ) (3,803 ) Eliminations (56 ) (41 ) (333 ) (14 ) $ 5,700 $ 6,072 $ (15,710 ) $ 16,246 (1) The nine months ended September 30, 2016 include a charge of $23,402 related to goodwill impairment and a charge of $4,066 related to intangible asset impairment. (See Note 4, Goodwill and Intangible Assets, to the Condensed Consolidated Financial Statements) |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring costs | The following table summarizes the incurred charges associated with these restructuring activities: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 St. Charles machine parts operations relocation $ — $ — $ — $ 378 Wichita, Kansas sheet-metal operations relocation 49 — 296 — Coweta machining facility closure — 64 — 64 Greenville office closure — 501 (26 ) 501 Australia office closure — 34 — 34 Other employment separation activities (46 ) 976 920 1,391 Total $ 3 $ 1,575 $ 1,190 $ 2,368 Expense incurred by segment: Aerostructures $ 3 $ 336 $ 1,216 $ 1,114 Engineering Services — 1,239 (26 ) 1,254 Total $ 3 $ 1,575 $ 1,190 $ 2,368 |
Schedule of restructuring activity | The following table summarizes the Company's restructuring activities during the nine months ended September 30, 2016 : Employee Severance Other Total Accrued restructuring balance as of December 31, 2015 $ 162 $ 93 $ 255 Accrual additions 1,216 (26 ) 1,190 Cash payments (803 ) (67 ) (870 ) Accrued restructuring balance as of September 30, 2016 $ 575 $ — $ 575 |
Condensed Consolidating Finan30
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET as of September 30, 2016 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Assets Current assets: Cash and cash equivalents $ 1,590 $ 213 $ — $ 1,803 Trade accounts receivable, net 631 54,184 — 54,815 Intercompany receivables 284,892 277,828 (562,720 ) — Inventories — 123,779 — 123,779 Prepaid expenses and other current assets 1,512 2,221 — 3,733 Total current assets 288,625 458,225 (562,720 ) 184,130 Property, plant and equipment, net 6,343 90,011 — 96,354 Investments in subsidiaries 370,244 — (370,244 ) — Goodwill — 62,482 — 62,482 Intangible assets, net — 39,648 — 39,648 Other assets 1,651 1,173 — 2,824 Total assets $ 666,863 $ 651,539 $ (932,964 ) $ 385,438 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 653 $ 21,239 $ — $ 21,892 Accrued expenses 8,572 12,550 — 21,122 Intercompany payables 336,966 225,754 (562,720 ) — Current installments of long-term debt and capital lease obligations 88 2,499 — 2,587 Total current liabilities 346,279 262,042 (562,720 ) 45,601 Long-term debt and capital lease obligations, less current installments 230,813 16,988 — 247,801 Other long-term liabilities 914 2,265 — 3,179 Deferred income taxes — — — — Total long-term liabilities 231,727 19,253 — 250,980 Total shareholders’ equity 88,857 370,244 (370,244 ) 88,857 Total liabilities and shareholders’ equity $ 666,863 $ 651,539 $ (932,964 ) $ 385,438 | CONDENSED CONSOLIDATING BALANCE SHEET as of December 31, 2015 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Assets Current assets: Cash and cash equivalents $ 10,251 $ 253 $ — $ 10,504 Trade accounts receivable, net 1,220 47,271 — 48,491 Intercompany receivables 196,496 203,128 (399,624 ) $ — Inventories — 114,775 — 114,775 Prepaid expenses and other current assets 2,224 1,923 — 4,147 Total current assets 210,191 367,350 (399,624 ) 177,917 Property, plant and equipment, net 5,430 95,539 — 100,969 Investments in subsidiaries 387,868 — (387,868 ) — Goodwill — 86,784 — 86,784 Intangible assets, net — 46,582 — 46,582 Other assets 2,135 1,593 — 3,728 Total assets $ 605,624 $ 597,848 $ (787,492 ) $ 415,980 Liabilities and shareholders’ equity Current liabilities: Accounts payable $ 1,393 $ 11,763 $ — $ 13,156 Accrued expenses 17,009 13,006 — 30,015 Intercompany payables 237,548 162,076 (399,624 ) — Current installments of long-term debt and capital lease obligations 85 2,277 — 2,362 Total current liabilities 256,035 189,122 (399,624 ) 45,533 Long-term debt and capital lease obligations, less current installments 229,752 17,881 — 247,633 Other long-term liabilities 1,881 2,441 — 4,322 Deferred income taxes — 536 — 536 Total long-term liabilities 231,633 20,858 — 252,491 Total shareholders’ equity 117,956 387,868 (387,868 ) 117,956 Total liabilities and shareholders’ equity $ 605,624 $ 597,848 $ (787,492 ) $ 415,980 |
Condensed Consolidating Statements of Comprehensive Income (Loss) | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2016 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Sales and service revenue Product sales $ (19 ) $ 79,841 $ 18 $ 79,840 Service revenues 9,767 9,831 (9,765 ) 9,833 Net sales 9,748 89,672 (9,747 ) 89,673 Cost of sales and service revenue Cost of product sales — 64,857 (18 ) 64,839 Cost of service revenues 9,492 9,054 (9,558 ) 8,988 Cost of sales 9,492 73,911 (9,576 ) 73,827 Gross profit 256 15,761 (171 ) 15,846 Selling, general and administrative expenses — 10,143 — 10,143 Goodwill and intangible — — — — Restructuring expense (47 ) 50 — 3 (Loss) income from operations 303 5,568 (171 ) 5,700 Other income (expense): Interest expense (5,369 ) (222 ) — (5,591 ) Other, net — 41 — 41 Income (loss) from equity investments in subsidiaries 5,513 — (5,513 ) — Total other expense 144 (181 ) (5,513 ) (5,550 ) (Loss) income before income taxes 447 5,387 (5,684 ) 150 (Benefit) provision for income taxes — (159 ) — (159 ) Net (loss) income 447 5,546 (5,684 ) 309 Other comprehensive income (expense): Change in foreign currency translation adjustment — (33 ) — (33 ) Total comprehensive (loss) income $ 447 $ 5,513 $ (5,684 ) $ 276 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Nine Months Ended September 30, 2016 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Sales and service revenue Product sales $ 43 $ 230,153 $ (14 ) $ 230,182 Service revenues 31,952 30,836 (31,973 ) 30,815 Net sales 31,995 260,989 (31,987 ) 260,997 Cost of sales and service revenue Cost of product sales 80 184,426 14 184,520 Cost of service revenues 32,017 28,849 (32,001 ) 28,865 Cost of sales 32,097 213,275 (31,987 ) 213,385 Gross profit (102 ) 47,714 — 47,612 Selling, general and administrative expenses — 33,764 — 33,764 Goodwill and intangible asset impairment — 28,368 — 28,368 Restructuring expense 404 786 — 1,190 (Loss) income from operations (506 ) (15,204 ) — (15,710 ) Other income (expense): Interest expense (15,415 ) (652 ) — (16,067 ) Other, net 4 (310 ) — (306 ) Income (loss) from equity investments in subsidiaries (15,553 ) — 15,553 — Total other expense (30,964 ) (962 ) 15,553 (16,373 ) (Loss) income before income taxes (31,470 ) (16,166 ) 15,553 (32,083 ) (Benefit) provision for income taxes — (734 ) — (734 ) Net (loss) income (31,470 ) (15,432 ) 15,553 (31,349 ) Other comprehensive income (expense): Change in foreign currency translation adjustment — (121 ) — (121 ) Total comprehensive (loss) income $ (31,470 ) $ (15,553 ) $ 15,553 $ (31,470 ) | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Three Months Ended September 30, 2015 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Sales and service revenue Product sales $ 4 $ 84,099 $ 11 $ 84,114 Service revenues 7,640 11,545 (7,666 ) 11,519 Net sales 7,644 95,644 (7,655 ) 95,633 Cost of sales and service revenue Cost of product sales 27 67,476 11 67,514 Cost of service revenues 7,991 11,166 (7,664 ) 11,493 Cost of sales 8,018 78,642 (7,653 ) 79,007 Gross profit (374 ) 17,002 (2 ) 16,626 Selling, general and administrative expenses — 8,979 — 8,979 Restructuring expense — 1,575 — 1,575 (Loss) income from operations (374 ) 6,448 (2 ) 6,072 Other income (expense): Interest expense (5,389 ) (264 ) — (5,653 ) Other, net (1 ) (135 ) — (136 ) Income (loss) from equity investments in subsidiaries 3,541 — (3,541 ) — Total other expense (1,849 ) (399 ) (3,541 ) (5,789 ) (Loss) income before income taxes (2,223 ) 6,049 (3,543 ) 283 (Benefit) provision for income taxes (2,227 ) 2,476 — 249 Net (loss) income 4 3,573 (3,543 ) 34 Other comprehensive income (expense): Change in foreign currency translation adjustment — (32 ) — (32 ) Total comprehensive (loss) income $ 4 $ 3,541 $ (3,543 ) $ 2 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Nine Months Ended September 30, 2015 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Sales and service revenue Product sales $ 207 $ 246,699 $ (176 ) $ 246,730 Service revenues 26,729 38,942 (26,743 ) 38,928 Net sales 26,936 285,641 (26,919 ) 285,658 Cost of sales and service revenue Cost of product sales 214 197,173 (176 ) 197,211 Cost of service revenues 27,440 35,155 (26,742 ) 35,853 Cost of sales 27,654 232,328 (26,918 ) 233,064 Gross profit (718 ) 53,313 (1 ) 52,594 Selling, general and administrative expenses — 33,980 — 33,980 Restructuring expense 318 2,050 — 2,368 (Loss) income from operations (1,036 ) 17,283 (1 ) 16,246 Other income (expense): Interest expense (16,029 ) (773 ) — (16,802 ) Other, net (1 ) (88 ) — (89 ) Income (loss) from equity investments in subsidiaries 9,914 — (9,914 ) — Total other expense (6,116 ) (861 ) (9,914 ) (16,891 ) (Loss) income before income taxes (7,152 ) 16,422 (9,915 ) (645 ) (Benefit) provision for income taxes (6,069 ) 6,477 — 408 Net (loss) income (1,083 ) 9,945 (9,915 ) (1,053 ) Other comprehensive income (expense): Change in foreign currency translation adjustment — (31 ) — (31 ) Total comprehensive (loss) income $ (1,083 ) $ 9,914 $ (9,915 ) $ (1,084 ) |
Condensed Consolidating Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2016 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Operating activities: Net (loss)/income $ (31,470 ) $ (15,432 ) $ 15,553 $ (31,349 ) Adjustments for non-cash items 21,104 39,181 (15,553 ) 44,732 Net changes in operating assets and liabilities, net of acquired businesses (7,466 ) (6,234 ) — (13,700 ) Intercompany activity 11,022 (11,022 ) — — Net cash (used)/provided by operating activities (6,810 ) 6,493 — (317 ) Investing activities: Additions to property, plant and equipment (1,790 ) (5,881 ) — (7,671 ) Proceeds from sale of equipment 3 24 — 27 Net cash used by investing activities (1,787 ) (5,857 ) — (7,644 ) Financing activities: Proceeds from issuance of debt — 1,465 — 1,465 Principal payments on long-term debt and notes payable (10,064 ) (2,044 ) — (12,108 ) Advances on revolving line of credit 38,500 — — 38,500 Payments on revolving line of credit (28,500 ) — — (28,500 ) Payments for debt issuance cost — (97 ) — (97 ) Net cash provided (used)/provided by financing activities (64 ) (676 ) — (740 ) Net (decrease) increase in cash and cash equivalents (8,661 ) (40 ) — (8,701 ) Cash and cash equivalents, beginning of period 10,251 253 — 10,504 Cash and cash equivalents, end of period $ 1,590 $ 213 $ — $ 1,803 | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2015 LMIA(Guarantor Parent) Guarantor Subsidiaries Consolidating/Eliminating Entries Consolidated Operating activities: Net (loss)/income $ (1,083 ) $ 9,945 $ (9,915 ) $ (1,053 ) Adjustments for non-cash items (7,572 ) 13,927 9,915 16,270 Net changes in operating assets and liabilities, net of acquired businesses (1,616 ) (7,884 ) — (9,500 ) Intercompany activity 1,379 (1,379 ) — — Net cash (used)/provided by operating activities (8,892 ) 14,609 — 5,717 Investing activities: Additions to property, plant and equipment (1,606 ) (13,699 ) — (15,305 ) Proceeds from sale of equipment — 260 — 260 Net cash used by investing activities (1,606 ) (13,439 ) — (15,045 ) Financing activities: Principal payments on long-term debt and notes payable (251 ) (1,563 ) — (1,814 ) Advances on revolving line of credit 93,500 — — 93,500 Payments on revolving line of credit (89,500 ) — — (89,500 ) Payments for debt issuance cost (309 ) — — (309 ) Net cash provided (used) by financing activities 3,440 (1,563 ) — 1,877 Net (decrease) increase in cash and cash equivalents (7,058 ) (393 ) — (7,451 ) Cash and cash equivalents, beginning of period 7,058 869 — 7,927 Cash and cash equivalents, end of period $ — $ 476 $ — $ 476 |
Assets and Liabilities Measur31
Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Intangible assets, net | $ 39,648 | $ 39,648 | $ 46,582 | ||||
Goodwill | 62,482 | 62,482 | 86,784 | ||||
Goodwill and Intangible Asset Impairment | 0 | $ 0 | 28,368 | $ 0 | |||
Finite-Lived Intangible Assets [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Goodwill and Intangible Asset Impairment | 4,066 | [1] | 0 | ||||
Goodwill [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Goodwill and Intangible Asset Impairment | 24,302 | [1] | 0 | [2] | |||
Fair Value, Inputs, Level 1 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Intangible assets, net | 0 | 0 | 0 | ||||
Goodwill | 0 | 0 | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Intangible assets, net | 0 | 0 | 0 | ||||
Goodwill | 0 | 0 | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Intangible assets, net | 39,648 | 39,648 | 46,582 | ||||
Goodwill | $ 62,482 | $ 62,482 | $ 86,784 | ||||
[1] | The fair value of goodwill is tested at least annually for impairment. During the quarter ended June 30, 2016, a triggering event occurred that required the Company to perform an interim impairment analysis for the goodwill and intangible assets within the Engineering Services reporting unit. This analysis determined the related goodwill and intangible assets were impaired and a loss of $28,368 was recorded in the quarter. | ||||||
[2] | The Company performed its annual impairment analysis of goodwill during the fourth quarter of 2015 and determined no adjustments to the carrying value were necessary. |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Receivables [Abstract] | |||||
Loss reserve on long-term production contract | $ 2,154 | $ 2,154 | $ 1,992 | ||
Trade receivables | 48,905 | 48,905 | 42,307 | ||
Unbilled revenue | 4,435 | 4,435 | 4,869 | ||
Other receivables | 1,776 | 1,776 | 1,561 | ||
Accounts receivable, gross | 55,116 | 55,116 | 48,737 | ||
Less: Allowance for doubtful accounts | (301) | (301) | (246) | ||
Accounts receivable, net | 54,815 | 54,815 | 48,491 | ||
Inventory Amount, Unpriced Change Orders for Long-term Contracts or Programs | 872 | 872 | $ 858 | ||
Change in Accounting Estimate [Abstract] | |||||
Favorable adjustments | 436 | $ 96 | 726 | $ 554 | |
Unfavorable adjustments | (377) | (2,183) | (590) | (2,214) | |
Net operating income adjustments | $ 59 | $ (2,087) | $ 136 | $ (1,660) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Deferred Cost in Inventory by Market [Line Items] | ||
Other Inventory, Capitalized Costs, Net | $ 5,522 | $ 5,970 |
Deferred Cost in Inventory Long-Term Production Contracts | 34,733 | 32,188 |
Inventories [Abstract] | ||
Raw materials | 13,579 | 12,513 |
Work in progress | 25,528 | 22,681 |
Manufactured and purchased components | 22,584 | 19,224 |
Finished goods | 27,355 | 28,169 |
Product inventory | 89,046 | 82,587 |
Capitalized contract costs | 34,733 | 32,188 |
Total inventories | 123,779 | 114,775 |
Large Commercial Aircraft [Member] | ||
Schedule of Deferred Cost in Inventory by Market [Line Items] | ||
Deferred Cost in Inventory Long-Term Production Contracts | 9,787 | 11,528 |
Corporate and Regional Aircraft [Member] | ||
Schedule of Deferred Cost in Inventory by Market [Line Items] | ||
Deferred Cost in Inventory Long-Term Production Contracts | 20,368 | 16,721 |
Military [Member] | ||
Schedule of Deferred Cost in Inventory by Market [Line Items] | ||
Deferred Cost in Inventory Long-Term Production Contracts | $ 4,578 | $ 3,939 |
Inventories Capitalized Contrac
Inventories Capitalized Contract Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Other Inventory, Capitalized Costs, Net | $ 5,522 | $ 5,970 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | |||
Goodwill, Gross | $ 192,694 | $ 192,694 | $ 192,694 |
Goodwill, Impaired, Accumulated Impairment Loss | (130,212) | (130,212) | (105,910) |
Goodwill | 62,482 | 62,482 | 86,784 |
Aerostructures [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Gross | 141,953 | 141,953 | 141,953 |
Goodwill, Impaired, Accumulated Impairment Loss | (79,471) | (79,471) | (79,471) |
Goodwill | 62,482 | 62,482 | 62,482 |
Engineering Services [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Impairment Loss | 24,302 | 23,402 | |
Goodwill, Gross | 50,741 | 50,741 | 50,741 |
Goodwill, Impaired, Accumulated Impairment Loss | (50,741) | (50,741) | (26,439) |
Goodwill | $ 0 | $ 0 | $ 24,302 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Intangible Assets [Abstract] | |||||
Trademarks | $ 778 | $ 778 | $ 778 | ||
Customer intangible assets | 68,991 | 68,991 | 68,991 | ||
Other | 1,274 | 1,274 | 1,274 | ||
Accumulated amortization | (31,395) | (31,395) | (24,461) | ||
Intangible assets, net | 39,648 | 39,648 | 46,582 | ||
Amortization expense on intangible assets | 796 | $ 1,089 | 2,868 | $ 3,269 | |
Trademarks [Member] | |||||
Intangible Assets [Abstract] | |||||
Accumulated amortization | (778) | (778) | (778) | ||
Customer Intangible Assets [Member] | |||||
Intangible Assets [Abstract] | |||||
Accumulated amortization | (29,636) | (29,636) | (22,816) | ||
Other [Member] | |||||
Intangible Assets [Abstract] | |||||
Accumulated amortization | (981) | (981) | $ (867) | ||
Engineering Services [Member] | |||||
Intangible Assets [Abstract] | |||||
Impairment of Intangible Assets, Finite-lived | $ 4,066 | $ 4,066 |
Long-term Debt and Capital Le37
Long-term Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 1,525 | $ 1,525 | ||
Long-term debt gross | 250,388 | $ 249,995 | 250,388 | $ 249,995 |
Debt Issuance Costs, Net | (3,504) | (4,539) | (3,504) | (4,539) |
Less current installments | 2,587 | 2,362 | 2,587 | 2,362 |
Long-term debt and capital lease obligations, less current installments | 247,801 | 247,633 | 247,801 | 247,633 |
Line of Credit Facility, Fair Value of Amount Outstanding | 10,000 | 0 | 10,000 | 0 |
Second Priority Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt gross | 224,175 | 234,175 | 224,175 | 234,175 |
Long-term Debt, Fair Value | $ 225,856 | $ 225,856 | ||
Fixed interest rate (in hundredths) | 7.375% | 7.375% | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt gross | $ 10,000 | 0 | $ 10,000 | 0 |
Missouri IRBs [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt gross | $ 6,569 | $ 6,901 | $ 6,569 | $ 6,901 |
Missouri IRBs [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate (in hundredths) | 2.80% | 2.80% | 2.80% | 2.80% |
Missouri IRBs [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate (in hundredths) | 5.00% | 5.00% | 5.00% | 5.00% |
Capital Leases [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt gross | $ 10,657 | $ 11,708 | $ 10,657 | $ 11,708 |
Capital Leases [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 3.00% | 3.00% | ||
Capital Leases [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 4.50% | 7.73% | ||
Notes Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt gross | 2,491 | $ 1,750 | $ 2,491 | $ 1,750 |
Notes Payable [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 2.45% | 2.45% | ||
Notes Payable [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 2.56% | 2.56% | ||
Second Priority Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Extinguishment of Debt, Amount | $ 10,000 |
Long-term Debt and Capital Le38
Long-term Debt and Capital Lease Obligations, Line of Credit Facility (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 10,000,000 | $ 0 |
Maximum borrowing capacity | 90,000,000 | |
Debt and Capital Lease Obligations | 250,388,000 | 249,995,000 |
Reserve Against line of Credit | 15,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 75,000,000 | |
Letters of Credit Outstanding, Amount | 1,525,000 | |
Line of Credit Facility, Current Borrowing Capacity | $ 44,291,000 | |
Line of Credit Facility, Borrowing Capacity, Description | The maximum amount, less reserves, available for borrowing at levels below $30,000 is 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 is 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 | 5.80% | |
Line of Credit Facility, Average Outstanding Amount | $ 1,821,000 | |
Commitment fee (in hundredths) | 0.50% | |
Federal funds rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over reference rate (in hundredths) | 0.50% | |
One Month Eurodollar [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over reference rate (in hundredths) | 1.00% | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee (in hundredths) | 0.375% | |
Minimum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over reference rate (in hundredths) | 3.00% | |
Minimum [Member] | Alternate Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over reference rate (in hundredths) | 2.00% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee (in hundredths) | 0.50% | |
Maximum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over reference rate (in hundredths) | 3.50% | |
Maximum [Member] | Alternate Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Spread over reference rate (in hundredths) | 2.50% | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt and Capital Lease Obligations | $ 10,000,000 | $ 0 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerators [Abstract] | ||||
Net loss | $ 309 | $ 34 | $ (31,349) | $ (1,053) |
Denominators [Abstract] | ||||
Weighted average common shares - basic (in shares) | 13,176,538 | 12,907,938 | 13,092,869 | 12,851,456 |
Dilutive effect of restricted stock (in shares) | 57,388 | 142,300 | 0 | 0 |
Weighted average common shares - diluted (in shares) | 13,233,926 | 13,050,238 | 13,092,869 | 12,851,456 |
Basic earnings (loss) per share | $ 0.02 | $ 0 | $ (2.39) | $ (0.08) |
Diluted earnings (loss) per share | $ 0.02 | $ 0 | $ (2.39) | $ (0.08) |
Antidilutive securities excluded from computation of earnings per share (in shares) | 81,734 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
LMI Aerospace, Inc. 2005 Long-Term Incentive Plan [Member] | Restricted Stock Awards [Member] | |||||
Shares | |||||
Outstanding beginning balance (in shares) | 253,434 | ||||
Granted (in shares) | 0 | ||||
Vested (in shares) | (53,846) | ||||
Forfeited (in shares) | (18,580) | ||||
Outstanding ending balance (in shares) | 181,008 | 253,434 | 181,008 | ||
Weighted Average Grant Date Fair Value | |||||
Outstanding beginning balance (in dollars per share) | $ 14.54 | ||||
Granted (in dollars per share) | 0 | ||||
Vested (in dollars per share) | 17.89 | ||||
Forfeited (in dollars per share) | 14.21 | ||||
Outstanding ending balance (in dollars per share) | $ 13.58 | $ 14.54 | $ 13.58 | ||
Compensation expense | $ 58 | $ 224 | $ 401 | $ 1,154 | |
Unrecognized compensation costs | $ 1,254 | $ 1,762 | $ 1,254 | ||
Costs are expected to be recognized over a weighted average period | 1 year 3 months 26 days | 1 year 6 months 22 days | |||
LMI Aerospace, Inc. 2015 Long-term Incentive Plan [Member] | |||||
Weighted Average Grant Date Fair Value | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | 750,000 | |||
LMI Aerospace, Inc. 2015 Long-term Incentive Plan [Member] | Restricted Stock Awards [Member] | |||||
Shares | |||||
Outstanding beginning balance (in shares) | 61,801 | ||||
Granted (in shares) | 269,875 | ||||
Vested (in shares) | (55,672) | ||||
Forfeited (in shares) | (6,899) | ||||
Outstanding ending balance (in shares) | 269,105 | 61,801 | 269,105 | ||
Weighted Average Grant Date Fair Value | |||||
Outstanding beginning balance (in dollars per share) | $ 9.79 | ||||
Granted (in dollars per share) | 8.51 | ||||
Vested (in dollars per share) | 9.79 | ||||
Forfeited (in dollars per share) | 9.43 | ||||
Outstanding ending balance (in dollars per share) | $ 8.52 | $ 9.79 | $ 8.52 | ||
Compensation expense | $ 271 | $ 151 | $ 695 | $ 151 | |
Unrecognized compensation costs | $ 1,223 | $ 303 | $ 1,223 | ||
Costs are expected to be recognized over a weighted average period | 1 year 11 months 12 days | 6 months 4 days | |||
LMI Aerospace, Inc. 2015 Long-term Incentive Plan - Non Qualified Deferred Compensation Plan for Senior Executives and Outside Directors [Member] | Restricted Stock Awards [Member] | |||||
Shares | |||||
Outstanding ending balance (in shares) | 6,129 | 6,129 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)segment | Sep. 30, 2015USD ($) | ||
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 2 | ||||
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | |||||
Net sales | $ 89,673 | $ 95,633 | $ 260,997 | $ 285,658 | |
Income from operations | 5,700 | 6,072 | (15,710) | 16,246 | |
Aerostructures [Member] | |||||
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | |||||
Net sales | 80,433 | 85,119 | 232,846 | 249,661 | |
Income from operations | 5,667 | 8,918 | 13,193 | 20,063 | |
Engineering Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill, Impairment Loss | 24,302 | 23,402 | |||
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | |||||
Net sales | 9,474 | 10,826 | 29,239 | 36,818 | |
Income from operations | 89 | (2,805) | (28,570) | [1] | (3,803) |
Impairment of Intangible Assets, Finite-lived | 4,066 | 4,066 | |||
Eliminations [Member] | |||||
Information about reported segments on the basis used internally to evaluate segment performance [Abstract] | |||||
Net sales | (234) | (312) | (1,088) | (821) | |
Income from operations | $ (56) | $ (41) | $ (333) | $ (14) | |
[1] | The nine months ended September 30, 2016 include a charge of $23,402 related to goodwill impairment and a charge of $4,066 related to intangible asset impairment. (See Note 4, Goodwill and Intangible Assets, to the Condensed Consolidated Financial Statements) |
Customer Concentration (Details
Customer Concentration (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Spirit [Member] | Revenue [Member] | |||||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||||
Percentage attributable to customer (in hundredths) | 40.70% | 34.40% | 38.60% | 34.80% | |
Spirit [Member] | Accounts Receivable [Member] | |||||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||||
Percentage attributable to customer (in hundredths) | 33.90% | 28.60% | |||
The Boeing Company [Member] | Revenue [Member] | |||||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||||
Percentage attributable to customer (in hundredths) | 12.10% | 12.60% | 11.40% | 11.40% | |
The Boeing Company [Member] | Accounts Receivable [Member] | |||||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||||
Percentage attributable to customer (in hundredths) | 9.40% | 10.20% | |||
Gulfstream [Member] | Revenue [Member] | |||||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||||
Percentage attributable to customer (in hundredths) | 13.50% | 15.90% | 11.60% | 14.30% | |
Gulfstream [Member] | Accounts Receivable [Member] | |||||
Revenue and Accounts Receivable, Major Customer [Line Items] | |||||
Percentage attributable to customer (in hundredths) | 13.30% | 15.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Operating Loss Carryforwards, Valuation Allowance | $ 20,273 | $ 20,273 | $ 14,461 | ||
(Benefit) provision for income taxes | $ (159) | $ 249 | $ (734) | $ 408 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | $ 188 | $ 1,165 | $ 870 | $ 2,175 |
Relocation of Sheet Metal Operations from Wichita [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 22 | 22 | ||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | 803 | |||
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | 67 | |||
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related expenses | 3 | 1,575 | 1,190 | 2,368 |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related expenses | 3 | 1,575 | 1,190 | 2,368 |
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 | 0 | 0 | 0 | 378 |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | Relocation of Sheet Metal Operations from Wichita [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related expenses | 49 | 0 | 296 | 0 |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | Coweta Facility Closure [Member] [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related expenses | 0 | 64 | 0 | 64 |
Selling, General and Administrative Expenses [Member] | Employee Severance [Member] | Other Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related expenses | (46) | 976 | 920 | 1,391 |
Selling, General and Administrative Expenses [Member] | Other Restructuring [Member] | Greenville Facility Closure [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related expenses | 0 | 501 | (26) | 501 |
Selling, General and Administrative Expenses [Member] | Other Restructuring [Member] | Melbourne Australia Office Closure [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related expenses | 0 | 34 | 0 | 34 |
Aerostructures [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related expenses | 3 | 336 | 1,216 | 1,114 |
Engineering Services [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related expenses | $ 0 | $ 1,239 | $ (26) | $ 1,254 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Accrued restructuring balance as of December 31, 2015 | $ 255 | |||
Accrual additions | $ 3 | $ 1,575 | 1,190 | $ 2,368 |
Cash payments | (188) | $ (1,165) | (870) | $ (2,175) |
Accrued restructuring balance as of September 30, 2016 | 575 | 575 | ||
Employee Severance [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued restructuring balance as of December 31, 2015 | 162 | |||
Accrual additions | 1,216 | |||
Cash payments | (803) | |||
Accrued restructuring balance as of September 30, 2016 | 575 | 575 | ||
Other Restructuring [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued restructuring balance as of December 31, 2015 | 93 | |||
Accrual additions | (26) | |||
Cash payments | (67) | |||
Accrued restructuring balance as of September 30, 2016 | 0 | 0 | ||
Relocation of Sheet Metal Operations from Wichita [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | $ 22 | $ 22 |
Condensed Consolidated Balanc46
Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 1,803 | $ 10,504 | $ 476 | $ 7,927 |
Accounts receivable, net | 54,815 | 48,491 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 123,779 | 114,775 | ||
Inventories | 3,733 | 4,147 | ||
Total current assets | 184,130 | 177,917 | ||
Property, plant and equipment, net | 96,354 | 100,969 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 62,482 | 86,784 | ||
Intangible assets, net | 39,648 | 46,582 | ||
Other assets | 2,824 | 3,728 | ||
Total assets | 385,438 | 415,980 | ||
Accounts payable | 21,892 | 13,156 | ||
Accrued expenses | 21,122 | 30,015 | ||
Intercompany payables | 0 | 0 | ||
Current installments of long-term debt and capital lease obligations | 2,587 | 2,362 | ||
Total current liabilities | 45,601 | 45,533 | ||
Long-term debt and capital lease obligations, less current installments | 247,801 | 247,633 | ||
Other long-term liabilities | 3,179 | 4,322 | ||
Deferred income taxes | 0 | 536 | ||
Total long-term liabilities | 250,980 | 252,491 | ||
Total shareholders’ equity | 88,857 | 117,956 | ||
Total liabilities and shareholders' equity | 385,438 | 415,980 | ||
LMIA(Guarantor Parent) | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 1,590 | 10,251 | 0 | 7,058 |
Accounts receivable, net | 631 | 1,220 | ||
Intercompany receivables | 284,892 | 196,496 | ||
Inventories | 0 | 0 | ||
Inventories | 1,512 | 2,224 | ||
Total current assets | 288,625 | 210,191 | ||
Property, plant and equipment, net | 6,343 | 5,430 | ||
Investments in subsidiaries | 370,244 | 387,868 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 1,651 | 2,135 | ||
Total assets | 666,863 | 605,624 | ||
Accounts payable | 653 | 1,393 | ||
Accrued expenses | 8,572 | 17,009 | ||
Intercompany payables | 336,966 | 237,548 | ||
Current installments of long-term debt and capital lease obligations | 88 | 85 | ||
Total current liabilities | 346,279 | 256,035 | ||
Long-term debt and capital lease obligations, less current installments | 230,813 | 229,752 | ||
Other long-term liabilities | 914 | 1,881 | ||
Deferred income taxes | 0 | 0 | ||
Total long-term liabilities | 231,727 | 231,633 | ||
Total shareholders’ equity | 88,857 | 117,956 | ||
Total liabilities and shareholders' equity | 666,863 | 605,624 | ||
Guarantor Subsidiaries | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 213 | 253 | 476 | 869 |
Accounts receivable, net | 54,184 | 47,271 | ||
Intercompany receivables | 277,828 | 203,128 | ||
Inventories | 123,779 | 114,775 | ||
Inventories | 2,221 | 1,923 | ||
Total current assets | 458,225 | 367,350 | ||
Property, plant and equipment, net | 90,011 | 95,539 | ||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 62,482 | 86,784 | ||
Intangible assets, net | 39,648 | 46,582 | ||
Other assets | 1,173 | 1,593 | ||
Total assets | 651,539 | 597,848 | ||
Accounts payable | 21,239 | 11,763 | ||
Accrued expenses | 12,550 | 13,006 | ||
Intercompany payables | 225,754 | 162,076 | ||
Current installments of long-term debt and capital lease obligations | 2,499 | 2,277 | ||
Total current liabilities | 262,042 | 189,122 | ||
Long-term debt and capital lease obligations, less current installments | 16,988 | 17,881 | ||
Other long-term liabilities | 2,265 | 2,441 | ||
Deferred income taxes | 0 | 536 | ||
Total long-term liabilities | 19,253 | 20,858 | ||
Total shareholders’ equity | 370,244 | 387,868 | ||
Total liabilities and shareholders' equity | 651,539 | 597,848 | ||
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 | (562,720) | (399,624) | ||
Inventories | 0 | 0 | ||
Inventories | 0 | 0 | ||
Total current assets | (562,720) | (399,624) | ||
Property, plant and equipment, net | 0 | 0 | ||
Investments in subsidiaries | (370,244) | (387,868) | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (932,964) | (787,492) | ||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Intercompany payables | (562,720) | (399,624) | ||
Current installments of long-term debt and capital lease obligations | 0 | 0 | ||
Total current liabilities | (562,720) | (399,624) | ||
Long-term debt and capital lease obligations, less current installments | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Total long-term liabilities | 0 | 0 | ||
Total shareholders’ equity | (370,244) | (387,868) | ||
Total liabilities and shareholders' equity | $ (932,964) | $ (787,492) |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Income Statements, Captions [Line Items] | ||||
Product sales | $ 79,840 | $ 84,114 | $ 230,182 | $ 246,730 |
Service revenue | 9,833 | 11,519 | 30,815 | 38,928 |
Net sales | 89,673 | 95,633 | 260,997 | 285,658 |
Cost of product sales | 64,839 | 67,514 | 184,520 | 197,211 |
Cost of service revenue | 8,988 | 11,493 | 28,865 | 35,853 |
Cost of sales | 73,827 | 79,007 | 213,385 | 233,064 |
Gross profit | 15,846 | 16,626 | 47,612 | 52,594 |
Selling, general and administrative expenses | 10,143 | 8,979 | 33,764 | 33,980 |
Goodwill and Intangible Asset Impairment | 0 | 0 | 28,368 | 0 |
Restructuring expense | 3 | 1,575 | 1,190 | 2,368 |
Income (loss) from operations | 5,700 | 6,072 | (15,710) | 16,246 |
Interest expense | (5,591) | (5,653) | (16,067) | (16,802) |
Other, net | 41 | (136) | (306) | (89) |
Income (loss) from equity investments in subsidiaries | 0 | 0 | 0 | 0 |
Total other expense | (5,550) | (5,789) | (16,373) | (16,891) |
(Loss) income before income taxes | 150 | 283 | (32,083) | (645) |
(Benefit) provision for income taxes | (159) | 249 | (734) | 408 |
Net loss | 309 | 34 | (31,349) | (1,053) |
Change in foreign currency translation adjustment | (33) | (32) | (121) | (31) |
Total comprehensive income (loss) | 276 | 2 | (31,470) | (1,084) |
LMIA(Guarantor Parent) | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Product sales | (19) | 4 | 43 | 207 |
Service revenue | 9,767 | 7,640 | 31,952 | 26,729 |
Net sales | 9,748 | 7,644 | 31,995 | 26,936 |
Cost of product sales | 0 | 27 | 80 | 214 |
Cost of service revenue | 9,492 | 7,991 | 32,017 | 27,440 |
Cost of sales | 9,492 | 8,018 | 32,097 | 27,654 |
Gross profit | 256 | (374) | (102) | (718) |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Goodwill and Intangible Asset Impairment | 0 | 0 | ||
Restructuring expense | (47) | 0 | 404 | 318 |
Income (loss) from operations | 303 | (374) | (506) | (1,036) |
Interest expense | (5,369) | (5,389) | (15,415) | (16,029) |
Other, net | 0 | (1) | 4 | (1) |
Income (loss) from equity investments in subsidiaries | 5,513 | 3,541 | (15,553) | 9,914 |
Total other expense | 144 | (1,849) | (30,964) | (6,116) |
(Loss) income before income taxes | 447 | (2,223) | (31,470) | (7,152) |
(Benefit) provision for income taxes | 0 | (2,227) | 0 | (6,069) |
Net loss | 447 | 4 | (31,470) | (1,083) |
Change in foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) | 447 | 4 | (31,470) | (1,083) |
Guarantor Subsidiaries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Product sales | 79,841 | 84,099 | 230,153 | 246,699 |
Service revenue | 9,831 | 11,545 | 30,836 | 38,942 |
Net sales | 89,672 | 95,644 | 260,989 | 285,641 |
Cost of product sales | 64,857 | 67,476 | 184,426 | 197,173 |
Cost of service revenue | 9,054 | 11,166 | 28,849 | 35,155 |
Cost of sales | 73,911 | 78,642 | 213,275 | 232,328 |
Gross profit | 15,761 | 17,002 | 47,714 | 53,313 |
Selling, general and administrative expenses | 10,143 | 8,979 | 33,764 | 33,980 |
Goodwill and Intangible Asset Impairment | 0 | 28,368 | ||
Restructuring expense | 50 | 1,575 | 786 | 2,050 |
Income (loss) from operations | 5,568 | 6,448 | (15,204) | 17,283 |
Interest expense | (222) | (264) | (652) | (773) |
Other, net | 41 | (135) | (310) | (88) |
Income (loss) from equity investments in subsidiaries | 0 | 0 | 0 | 0 |
Total other expense | (181) | (399) | (962) | (861) |
(Loss) income before income taxes | 5,387 | 6,049 | (16,166) | 16,422 |
(Benefit) provision for income taxes | (159) | 2,476 | (734) | 6,477 |
Net loss | 5,546 | 3,573 | (15,432) | 9,945 |
Change in foreign currency translation adjustment | (33) | (32) | (121) | (31) |
Total comprehensive income (loss) | 5,513 | 3,541 | (15,553) | 9,914 |
Consolidating/Eliminating Entries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Product sales | 18 | 11 | (14) | (176) |
Service revenue | (9,765) | (7,666) | (31,973) | (26,743) |
Net sales | (9,747) | (7,655) | (31,987) | (26,919) |
Cost of product sales | (18) | 11 | 14 | (176) |
Cost of service revenue | (9,558) | (7,664) | (32,001) | (26,742) |
Cost of sales | (9,576) | (7,653) | (31,987) | (26,918) |
Gross profit | (171) | (2) | 0 | (1) |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Goodwill and Intangible Asset Impairment | 0 | 0 | ||
Restructuring expense | 0 | 0 | 0 | 0 |
Income (loss) from operations | (171) | (2) | 0 | (1) |
Interest expense | 0 | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 | 0 |
Income (loss) from equity investments in subsidiaries | (5,513) | (3,541) | 15,553 | (9,914) |
Total other expense | (5,513) | (3,541) | 15,553 | (9,914) |
(Loss) income before income taxes | (5,684) | (3,543) | 15,553 | (9,915) |
(Benefit) provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | (5,684) | (3,543) | 15,553 | (9,915) |
Change in foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) | $ (5,684) | $ (3,543) | $ 15,553 | $ (9,915) |
Condensed Consolidating State48
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net loss | $ 309 | $ 34 | $ (31,349) | $ (1,053) |
Adjustments for non-cash items | 44,732 | 16,270 | ||
Net changes in operating assets and liabilities, net of acquired businesses | (13,700) | (9,500) | ||
Intercompany activity | 0 | 0 | ||
Net cash (used) provided by operating activities | (317) | 5,717 | ||
Additions to property, plant and equipment | (7,671) | (15,305) | ||
Proceeds from sale of property, plant and equipment | 27 | 260 | ||
Net cash used by investing activities | (7,644) | (15,045) | ||
Proceeds from Issuance of Secured Debt | 1,465 | 0 | ||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | (12,108) | (1,814) | ||
Advances on revolving line of credit | 38,500 | 93,500 | ||
Repayments of Lines of Credit | (28,500) | (89,500) | ||
Payments of Debt Issuance Costs | 97 | 309 | ||
Net cash (used) provided by financing activities | (740) | 1,877 | ||
Net decrease in cash and cash equivalents | (8,701) | (7,451) | ||
Cash and cash equivalents, beginning of period | 10,504 | 7,927 | ||
Cash and cash equivalents, end of period | 1,803 | 476 | 1,803 | 476 |
LMIA(Guarantor Parent) | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net loss | 447 | 4 | (31,470) | (1,083) |
Adjustments for non-cash items | 21,104 | (7,572) | ||
Net changes in operating assets and liabilities, net of acquired businesses | (7,466) | (1,616) | ||
Intercompany activity | 11,022 | 1,379 | ||
Net cash (used) provided by operating activities | (6,810) | (8,892) | ||
Additions to property, plant and equipment | (1,790) | (1,606) | ||
Proceeds from sale of property, plant and equipment | 3 | 0 | ||
Net cash used by investing activities | (1,787) | (1,606) | ||
Proceeds from Issuance of Secured Debt | 0 | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | (10,064) | (251) | ||
Advances on revolving line of credit | 38,500 | 93,500 | ||
Repayments of Lines of Credit | (28,500) | (89,500) | ||
Payments of Debt Issuance Costs | 309 | |||
Net cash (used) provided by financing activities | (64) | 3,440 | ||
Net decrease in cash and cash equivalents | (8,661) | (7,058) | ||
Cash and cash equivalents, beginning of period | 10,251 | 7,058 | ||
Cash and cash equivalents, end of period | 1,590 | 0 | 1,590 | 0 |
Guarantor Subsidiaries | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net loss | 5,546 | 3,573 | (15,432) | 9,945 |
Adjustments for non-cash items | 39,181 | 13,927 | ||
Net changes in operating assets and liabilities, net of acquired businesses | (6,234) | (7,884) | ||
Intercompany activity | (11,022) | (1,379) | ||
Net cash (used) provided by operating activities | 6,493 | 14,609 | ||
Additions to property, plant and equipment | (5,881) | (13,699) | ||
Proceeds from sale of property, plant and equipment | 24 | 260 | ||
Net cash used by investing activities | (5,857) | (13,439) | ||
Proceeds from Issuance of Secured Debt | 1,465 | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | (2,044) | (1,563) | ||
Advances on revolving line of credit | 0 | 0 | ||
Repayments of Lines of Credit | 0 | 0 | ||
Payments of Debt Issuance Costs | 0 | |||
Net cash (used) provided by financing activities | (676) | (1,563) | ||
Net decrease in cash and cash equivalents | (40) | (393) | ||
Cash and cash equivalents, beginning of period | 253 | 869 | ||
Cash and cash equivalents, end of period | 213 | 476 | 213 | 476 |
Consolidating/Eliminating Entries | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net loss | (5,684) | (3,543) | 15,553 | (9,915) |
Adjustments for non-cash items | (15,553) | 9,915 | ||
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 | ||
Proceeds from sale of property, plant and equipment | 0 | 0 | ||
Net cash used by investing activities | 0 | 0 | ||
Proceeds from Issuance of Secured Debt | 0 | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | 0 | 0 | ||
Advances on revolving line of credit | 0 | 0 | ||
Repayments of Lines of Credit | 0 | 0 | ||
Payments of Debt Issuance Costs | 0 | |||
Net cash (used) provided by financing activities | 0 | 0 | ||
Net decrease 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 | $ 0 | $ 0 |