Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 28, 2013 | Jan. 31, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'COURIER Corp | ' |
Entity Central Index Key | '0000025212 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-27 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 11,548,122 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' |
Net sales | $72,796 | $64,756 |
Cost of sales | 54,904 | 48,756 |
Gross profit | 17,892 | 16,000 |
Selling and administrative expenses | 13,448 | 11,968 |
Operating income | 4,444 | 4,032 |
Interest expense, net | 175 | 190 |
Pretax income | 4,269 | 3,842 |
Income tax provision (Note C) | 1,622 | 1,422 |
Net income | 2,647 | 2,420 |
Net income per share (Note G): | ' | ' |
Basic (in dollars per share) | $0.23 | $0.21 |
Diluted (in dollars per share) | $0.23 | $0.21 |
Cash dividends declared per share (in dollars per share) | $0.21 | $0.21 |
Other comprehensive income, net of tax: | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 48 | ' |
Other comprehensive income | 48 | ' |
Comprehensive income | $2,695 | $2,420 |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $146 | $57 |
Investments | 960 | 1,012 |
Accounts receivable, less allowance for uncollectible accounts of $870 at December 28, 2013 and $940 at September 28, 2013 | 38,659 | 43,837 |
Inventories (Note B) | 34,791 | 35,086 |
Deferred income taxes | 4,133 | 3,954 |
Other current assets | 2,721 | 2,579 |
Total current assets | 81,410 | 86,525 |
Property, plant and equipment, less accumulated depreciation: $219,795 at December 28, 2013 and $214,671 at September 28, 2013 | 93,933 | 93,051 |
Goodwill (Note A) | 21,808 | 21,820 |
Other intangibles, net (Note A) | 3,802 | 4,033 |
Prepublication costs, net (Note A) | 6,522 | 6,717 |
Deferred income taxes | 2,882 | 2,827 |
Long-term investments (Note I) | 4,961 | 500 |
Other assets | 1,152 | 1,521 |
Total assets | 216,470 | 216,994 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 646 | 1,125 |
Current maturities of capital lease obligation (Note D) | 2,541 | ' |
Accounts payable | 11,386 | 13,699 |
Accrued payroll | 5,911 | 9,630 |
Accrued taxes | 2,099 | 3,117 |
Other current liabilities | 9,912 | 8,403 |
Total current liabilities | 32,495 | 35,974 |
Long-term debt (Note D) | 18,724 | 24,583 |
Capital lease obligation (Note D) | 7,610 | ' |
Contingent consideration (Note J) | 5,125 | 4,960 |
Other liabilities | 5,887 | 5,433 |
Total liabilities | 69,841 | 70,950 |
Stockholders' equity (Note F): | ' | ' |
Preferred stock, $1 par value - authorized 1,000,000 shares; none issued | ' | ' |
Common stock, $1 par value - authorized 18,000,000 shares; issued 11,508,000 at December 28, 2013 and 11,473,000 at September 28, 2013 | 11,508 | 11,473 |
Additional paid-in capital | 20,338 | 20,066 |
Retained earnings | 115,600 | 115,370 |
Accumulated other comprehensive loss | -817 | -865 |
Total stockholders' equity | 146,629 | 146,044 |
Total liabilities and stockholders' equity | $216,470 | $216,994 |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED CONDENSED BALANCE SHEETS | ' | ' |
Accounts receivable, allowance for uncollectible accounts | $870 | $940 |
Property, plant and equipment, accumulated depreciation | $219,795 | $214,671 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, authorized shares | 18,000,000 | 18,000,000 |
Common stock, issued shares | 11,508,000 | 11,473,000 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Operating Activities: | ' | ' |
Net income | $2,647 | $2,420 |
Adjustments to reconcile net income to cash provided from operating activities: | ' | ' |
Depreciation of property, plant and equipment | 5,213 | 4,711 |
Amortization of prepublication costs | 908 | 1,011 |
Amortization of intangible assets | 231 | 111 |
Stock-based compensation (Note F) | 358 | 341 |
Deferred income taxes | -234 | 165 |
Change in fair value of contingent consideration (Note J) | 165 | 15 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 5,178 | 3,215 |
Inventory | 295 | 349 |
Accounts payable | -2,313 | -474 |
Accrued and recoverable taxes | -1,018 | -2,168 |
Other elements of working capital | -2,052 | 367 |
Other long-term, net | 136 | -129 |
Cash provided from operating activities | 9,514 | 9,934 |
Investment Activities: | ' | ' |
Capital expenditures | -6,095 | -1,505 |
Prepublication costs | -713 | -743 |
Loan receivable and other investments | -4,409 | -1 |
Life insurance proceeds | 387 | ' |
Cash used for investment activities | -10,830 | -2,249 |
Financing Activities: | ' | ' |
Proceeds from capital lease financing, net of payments (Note D) | 10,152 | ' |
Other long-term debt repayments (Note D) | -6,339 | -5,181 |
Cash dividends | -2,416 | -2,421 |
Other | 8 | ' |
Cash provided by (used for) financing activities | 1,405 | -7,602 |
Increase in cash and cash equivalents | 89 | 83 |
Cash and cash equivalents at the beginning of the period | 57 | 64 |
Cash and cash equivalents at the end of the period | $146 | $147 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 28, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Unaudited Financial Statements | |
The consolidated condensed balance sheet as of December 28, 2013 and the consolidated condensed statements of comprehensive income and the statements of cash flows for the three-month periods ended December 28, 2013 and December 29, 2012 are unaudited. In the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation of such financial statements have been recorded. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”) have been condensed or omitted. The balance sheet data as of September 28, 2013 was derived from audited year-end financial statements, but does not include disclosures required by generally accepted accounting principles. It is suggested that these interim financial statements be read in conjunction with the Company’s most recent Annual Report on Form 10-K for the year ended September 28, 2013. | |
Goodwill and Other Intangibles | |
The Company evaluates possible impairment to goodwill and other intangible assets annually at the end of its fiscal year or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. There were no such events or changes in circumstances in the period ended December 28, 2013. In the third quarter of fiscal 2013, the Company acquired FastPencil, Inc. (“FastPencil”) and recorded goodwill of $5.9 million (see Note J). In addition, the Company recorded intangibles related to technology, trade name and other intangibles with this acquisition totaling $2.8 million, which are being amortized over periods ranging from three to fifteen years. “Other intangibles” also include trade names with indefinite lives which are not subject to amortization as well as customer lists and technology that are being amortized over five to ten-year periods. Total amortization expense for intangibles was approximately $231,000 and $100,000 in the first quarters of fiscal years 2014 and 2013, respectively. | |
Fair Value Measurements | |
Certain assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis, generally as a result of impairment charges. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Assets measured at fair value on a nonrecurring basis include long-lived assets and goodwill and other intangible assets. The three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: | |
Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. | |
Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |
Level 3—Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. | |
Fair Value of Financial Instruments | |
Financial instruments consist primarily of cash, investments in mutual funds (Level 1), investment in a convertible promissory note (Level 3), accounts receivable, accounts payable, debt obligations and contingent consideration (Level 3). At December 28, 2013 and September 28, 2013, the fair value of the Company’s cash, accounts receivable and accounts payable approximated their carrying values due to the short maturity of these instruments. The fair value of the Company’s revolving credit facility approximates its carrying value due to the variable interest rate and the Company’s current rate standing. | |
Prepublication Costs | |
Prepublication costs, associated with creating new titles in the publishing segment, are amortized to cost of sales using the straight-line method over estimated useful lives of two to four years. In the second quarter of fiscal 2013, the Company changed its presentation of depreciation and amortization on the Consolidated Condensed Statement of Cash Flows to separately disclose the components of depreciation and amortization related to prepublication costs and intangible assets. Accordingly, the prior year amounts have been changed to reflect this presentation. | |
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
B. INVENTORIES | ||||||||
Inventories are valued at the lower of cost or market. Cost is determined using the last-in, first-out (LIFO) method for approximately 55% of the Company’s inventories at both December 28, 2013 and September 28, 2013. Other inventories, primarily in the publishing segment, are determined on a first-in, first-out (FIFO) basis. Inventories consisted of the following: | ||||||||
(000’s Omitted) | ||||||||
December 28, | September 28, | |||||||
2013 | 2013 | |||||||
Raw materials | $ | 7,887 | $ | 6,750 | ||||
Work in process | 8,949 | 8,724 | ||||||
Finished goods | 17,955 | 19,612 | ||||||
Total | $ | 34,791 | $ | 35,086 | ||||
INCOME_TAXES
INCOME TAXES | 3 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
C. INCOME TAXES | ||||||||||||
In calculating the provision for income taxes on an interim basis, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances known and applies that rate to its ordinary year-to-date earnings or losses. The effect of discrete items, such as unusual or infrequently occurring events, is recognized in the interim period in which the discrete item occurs. | ||||||||||||
The provision for income taxes differs from that computed using the statutory federal income tax rates for the following reasons: | ||||||||||||
(000’s Omitted) | ||||||||||||
Three Months Ended | ||||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||
Federal taxes at statutory rates | $ | 1,494 | 35 | % | $ | 1,345 | 35 | % | ||||
State taxes, net of federal tax benefit | 164 | 3.8 | 158 | 4.1 | ||||||||
Federal manufacturer’s deduction | (159 | ) | (3.7 | ) | (104 | ) | (2.7 | ) | ||||
Change in fair value of contingent consideration | 73 | 1.7 | — | — | ||||||||
Transaction costs | 29 | 0.7 | — | — | ||||||||
Other | 21 | 0.5 | 23 | 0.6 | ||||||||
Total | $ | 1,622 | 38 | % | $ | 1,422 | 37 | % | ||||
LONGTERM_DEBT_AND_CAPITAL_LEAS
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATION | 3 Months Ended |
Dec. 28, 2013 | |
Long-term Debt and Capital Lease Obligations | ' |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATION | ' |
D. LONG-TERM DEBT AND CAPITAL LEASE OBLIGATION | |
In the first quarter of fiscal 2014, the Company entered into a $10.5 million master security lease agreement for printing and binding equipment in its Kendallville, Indiana digital print facility. The Company has accounted for this transaction as a capital lease obligation, which expires in October 2017. At December 28, 2013, $10.2 million of debt was outstanding under this arrangement and the implicit interest rate was 1.8%. Scheduled annual principal payments under this obligation are $2.5 million in the next 12 months and approximately $2.6 million in each of the three subsequent years. Total imputed interest under the agreement is approximately $0.4 million. Depreciation expense was calculated on a straight-line basis over the estimated useful life of the assets under the capital lease and such depreciation was approximately $200,000 in the first quarter of fiscal 2014. | |
The Company has a $100 million long-term revolving credit facility in place under which the Company can borrow at a rate not to exceed LIBOR plus 2.25%. The Company’s interest rate at December 28, 2013 was 1.4%. At December 28, 2013 and September 28, 2013, the Company had $18.7 million and $24.6 million, respectively, in borrowings outstanding under its long-term revolving credit facility, which matures in March 2016. | |
In fiscal 2010, the Company entered into a four-year term loan to finance the purchase of digital print assets and provided a lien on the assets acquired with the proceeds. At December 28, 2013, $0.7 million of debt was outstanding under this arrangement, with $0.3 million at a fixed annual interest rate of 3.9% and $0.4 million at a fixed annual interest rate of 3.6%, and was included in “Current maturities of long-term debt” in the accompanying consolidated balance sheet. | |
OPERATING_SEGMENTS
OPERATING SEGMENTS | 3 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
OPERATING SEGMENTS | ' | |||||||
OPERATING SEGMENTS | ' | |||||||
E. OPERATING SEGMENTS | ||||||||
The Company has two operating segments: book manufacturing and publishing. The book manufacturing segment offers a full range of services from production through storage and distribution for religious, educational and specialty trade book publishers. In April 2013, the Company acquired FastPencil, which has been included in the book manufacturing segment (see Note J). The publishing segment consists of Dover Publications, Inc., Federal Marketing Corporation, Inc., d/b/a Creative Homeowner, and Research & Education Association, Inc. (“REA”). | ||||||||
Segment performance is evaluated based on several factors, of which the primary financial measure is operating income. Operating income is defined as gross profit (sales less cost of sales) less selling and administrative expenses, and includes severance and other restructuring costs but excludes stock-based compensation. As such, segment performance is evaluated exclusive of interest, income taxes, stock-based compensation, intersegment profit, impairment charges, and other income. The elimination of intersegment sales and related profit represents sales from the book manufacturing segment to the publishing segment. | ||||||||
The following table provides segment information for the three-month periods ended December 28, 2013 and December 29, 2012. | ||||||||
(000’s Omitted) | ||||||||
Three Months Ended | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Net sales: | ||||||||
Book manufacturing | $ | 65,576 | $ | 57,481 | ||||
Publishing | 9,121 | 9,134 | ||||||
Elimination of intersegment sales | (1,901 | ) | (1,859 | ) | ||||
Total | $ | 72,796 | $ | 64,756 | ||||
Pretax income (loss): | ||||||||
Book manufacturing operating income | $ | 5,310 | $ | 5,499 | ||||
Publishing operating loss | (600 | ) | (1,136 | ) | ||||
Stock-based compensation | (358 | ) | (341 | ) | ||||
Elimination of intersegment profit | 92 | 10 | ||||||
Interest expense, net | (175 | ) | (190 | ) | ||||
Total | $ | 4,269 | $ | 3,842 | ||||
STOCK_ARRANGEMENTS
STOCK ARRANGEMENTS | 3 Months Ended | |||
Dec. 28, 2013 | ||||
STOCK ARRANGEMENTS | ' | |||
STOCK ARRANGEMENTS | ' | |||
F. STOCK ARRANGEMENTS | ||||
The Company records stock-based compensation expense for the cost of stock options and stock grants as well as shares issued under the Company’s 1999 Employee Stock Purchase Plan, as amended. The fair value of each option awarded is calculated on the date of grant using the Black-Scholes option-pricing model. Stock-based compensation recognized in selling and administrative expenses in the accompanying financial statements in the first quarters of fiscal 2014 and 2013 was $358,000 and $341,000, respectively. The related tax benefit recognized in the first quarters of fiscal 2014 and 2013 was $127,000 and $120,000, respectively. Unrecognized stock-based compensation cost at December 28, 2013 was $1.9 million, to be recognized over a weighted-average period of 2.1 years. | ||||
The Company annually issues a combination of stock options and stock grants to its key employees under the Courier Corporation 2011 Stock Option and Incentive Plan (the “2011 Plan”). Stock options and stock grants generally vest over three years. Options and grants relating to fiscal 2013 were awarded in November 2013; 22,738 stock options were awarded under the 2011 Plan with an exercise price of $17.56 per share, which was the stock price on the date of grant, and a weighted-average fair value of $4.83 per share. In addition, 34,161 stock grants were awarded in November 2013 with a weighted-average fair value of $17.56 per share. | ||||
The weighted average Black-Scholes fair value assumptions for stock options awarded under the 2011 Plan in the first quarter of fiscal 2014 were as follows: | ||||
Estimated life of options (years) | 10 | |||
Risk-free interest rate | 3 | % | ||
Expected volatility | 41.75 | % | ||
Expected dividend yield | 4.8 | % | ||
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 3 Months Ended | |||||
Dec. 28, 2013 | ||||||
NET INCOME PER SHARE | ' | |||||
NET INCOME PER SHARE | ' | |||||
G. NET INCOME PER SHARE | ||||||
The following is a reconciliation of the outstanding shares used in the calculation of basic and diluted net income per share. Potentially dilutive shares, calculated using the treasury stock method, consist of shares issued under the Company’s stock option plans. | ||||||
(000’s Omitted) | ||||||
Three Months Ended | ||||||
December 28, | December 29, | |||||
2013 | 2012 | |||||
Weighted average shares for basic | 11,285 | 11,321 | ||||
Effect of potentially dilutive shares | 230 | 103 | ||||
Weighted average shares for diluted | 11,515 | 11,424 | ||||
SHARE_REPURCHASE_PROGRAM
SHARE REPURCHASE PROGRAM | 3 Months Ended |
Dec. 28, 2013 | |
SHARE REPURCHASE PROGRAM | ' |
SHARE REPURCHASE PROGRAM | ' |
H. SHARE REPURCHASE PROGRAM | |
On November 21, 2013, the Company announced the approval by its Board of Directors for the repurchase of up to $10 million of the Company’s outstanding common stock from time to time on the open market or in privately negotiated transactions, including pursuant to a Rule 10b5-1 nondiscretionary trading plan. Through December 28, 2013, the Company had not repurchased any shares of common stock under this program. | |
In November 2012, the Company’s Board of Directors approved a similar program for the repurchase of up to $10 million of the Company’s outstanding common stock. In fiscal 2013, the Company repurchased 123,261 shares of common stock for approximately $1.6 million. This program expired on November 20, 2013. | |
LONGTERM_INVESTMENTS
LONG-TERM INVESTMENTS | 3 Months Ended |
Dec. 28, 2013 | |
LONG-TERM INVESTMENTS. | ' |
LONG-TERM INVESTMENTS | ' |
I. LONG-TERM INVESTMENTS | |
In October 2013, the Company announced plans to invest in the education market in Brazil, the largest such market in Latin America through two separate agreements. Under the first agreement, completed in January 2014, the Company has licensed its proprietary custom textbook platform to Santillana, the largest Spanish/Portuguese educational publisher in the world. In addition, on October 24, 2013, the Company entered into a definitive agreement with Digital Page Gráfica E Editora (“Digital Page”), a Sao Paulo-based digital printing firm, which has a long-term print agreement with Santillana. Under this agreement, the Company will invest a total of 20 million Brazilian reals, approximately $9 million, for a 40% equity interest. The founder of Digital Page will continue to own 60% of the business and actively manage the operations. During the first quarter of fiscal 2014, the Company funded two loans to Digital Page totaling approximately $4.5 million which are secured by a pledge of a 40% interest in Digital Page’s equity and bears interest at 1% per month. The transaction is expected to close by the end of the Company’s second quarter and the principal amount of the loans will be credited towards the purchase price of the Company’s ownership interest. The Company will include its equity percentage of Digital Page’s earnings in its consolidated financial statements from the date of closing. | |
Long-term investments also include a convertible promissory note for $0.5 million issued by Nomadic Learning Limited, a start up business focused on corporate and educational learning. | |
BUSINESS_ACQUISITION
BUSINESS ACQUISITION | 3 Months Ended | ||||
Dec. 28, 2013 | |||||
BUSINESS ACQUISITION | ' | ||||
BUSINESS ACQUISITION | ' | ||||
J. BUSINESS ACQUISITION | |||||
On April 30, 2013, the Company acquired all of the outstanding stock of FastPencil, Inc. (“FastPencil”), a California-based developer of end-to-end, cloud-based content management technologies. FastPencil’s products primarily serve traditional publishers and self-publishers. The acquisition complements the Company’s content management and customization for educational publishers and also brings a comparable offering to a broader market. The Company paid $5 million at the time of acquisition, with additional future “earn out” potential payments from $0 up to a maximum of $13 million (undiscounted) which may be paid out over the next four years based on achieving certain revenue targets. The future earn out potential payments were valued at acquisition at $4.7 million using a probability weighted, discounted cash flow model. The acquisition was accounted for as a purchase and, accordingly, FastPencil’s financial results are included in the book manufacturing segment in the consolidated financial statements from the date of acquisition. | |||||
The acquisition of FastPencil was recorded by allocating the fair value of the consideration paid to the identified assets acquired, including intangible assets and liabilities assumed, based on their estimated fair value at the acquisition date. The excess of the fair value of the consideration paid over the net amounts assigned to the fair value of the assets acquired and liabilities assumed was recorded as goodwill, which is not tax deductible. Based on these valuations, the purchase price allocation was as follows: | |||||
(000’s Omitted) | |||||
Cash paid | $ | 5,000 | |||
Fair value of contingent “earn out” consideration | 4,700 | ||||
Total | $ | 9,700 | |||
Accounts receivable | $ | 3 | |||
Inventories | 42 | ||||
Licensing contract receivable | 1,500 | ||||
Amortizable intangibles | 2,770 | ||||
Goodwill | 5,875 | ||||
Other assets | 32 | ||||
Accounts payable and accrued liabilities | (325 | ) | |||
Deferred tax liabilities, net | (197 | ) | |||
Total | $ | 9,700 | |||
A fair value assessment of the contingent earn out consideration payable was performed at December 28, 2103, resulting in recognition of $165,000 of expense in the first quarter. The balance at December 28, 2013 was $5.1 million and was included in “Other liabilities” in the accompanying consolidated balance sheet. | |||||
The Company expects to finalize the preliminary estimates of the fair value of the intangible assets in the next quarter. | |||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||
K. FAIR VALUE MEASUREMENTS | ||||||||||||
Certain assets and liabilities are required to be recorded at fair value on a recurring basis. The Company’s only assets and liabilities adjusted to fair value on a recurring basis are short-term investments in mutual funds, a long-term investment in a convertible promissory note and contingent consideration. In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities on a nonrecurring basis, generally as a result of acquisitions or the remeasurement of assets resulting in impairment charges. | ||||||||||||
The following table shows the assets and liabilities carried at fair value measured on a recurring basis as of December 28, 2013 and September 28, 2013 classified in one of the three levels as described in Note A: | ||||||||||||
(000’s Omitted) | ||||||||||||
Total | Quoted | Significant | Significant | |||||||||
Carrying | Prices in | Other | Unobservable | |||||||||
Value | Active | Observable | Inputs | |||||||||
Markets | Inputs | (Level 3) | ||||||||||
(Level 1) | (Level 2) | |||||||||||
As of December 28, 2013: | ||||||||||||
Short-term investments in mutual funds | $ | 960 | $ | 960 | — | — | ||||||
Investment in convertible promissory note | 500 | — | — | 500 | ||||||||
Contingent consideration liability (Note J) | (5,125 | ) | — | — | (5,125 | ) | ||||||
As of September 28, 2013: | ||||||||||||
Short-term investments in mutual funds | $ | 900 | $ | 900 | — | — | ||||||
Investment in convertible promissory note | 500 | — | — | 500 | ||||||||
Forward foreign exchange contract | 112 | — | 112 | — | ||||||||
Contingent consideration liability (Note J) | (4,960 | ) | — | — | (4,960 | ) | ||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3): | ||||||||||||
(000’s Omitted) | ||||||||||||
Convertible | ||||||||||||
Promissory | Contingent | |||||||||||
Note | Consideration | |||||||||||
Investment | Liabilities | |||||||||||
Balance as of September 28, 2013 | $ | 500 | $ | (4,960 | ) | |||||||
Change in fair value | — | (165 | ) | |||||||||
Amounts paid | — | — | ||||||||||
Balance at December 28, 2013 | $ | 500 | $ | (5,125 | ) | |||||||
Balance as of September 29, 2012 | $ | (385 | ) | |||||||||
Change in fair value | (15 | ) | ||||||||||
Amounts paid | — | |||||||||||
Balance at December 29, 2012 | $ | (400 | ) | |||||||||
RESTRUCTURING_COSTS
RESTRUCTURING COSTS | 3 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
RESTRUCTURING COSTS | ' | ||||||||||||
RESTRUCTURING COSTS | ' | ||||||||||||
L. RESTRUCTURING COSTS | |||||||||||||
In fiscal 2011, the Company recorded restructuring costs of $7.7 million associated with closing and consolidating its Stoughton, Massachusetts manufacturing facility due to the impact of technology and competitive pressures affecting the one-color paperback books in which the plant specialized. Restructuring costs included $2.3 million for employee severance and benefit costs, $2.1 million for an early withdrawal liability from a multi-employer pension plan, and $3.3 million for lease termination and other facility closure costs. Remaining payments of approximately $3.1 million will be made over periods ranging from 2 years for the building lease obligation to 18 years for the liability related to the multi-employer pension plan. At December 28, 2013, approximately $0.8 million of the restructuring payments were included in “Other current liabilities” and $2.5 million were included in “Other liabilities” in the accompanying consolidated balance sheet. | |||||||||||||
The following table depicts the remaining accrual balances for these restructuring costs. | |||||||||||||
(000’s omitted) | |||||||||||||
Accrual at | Charges | Costs | Accrual at | ||||||||||
September 28, | or | Paid or | December 28, | ||||||||||
2013 | Reversals | Settled | 2013 | ||||||||||
Employee severance, post-retirement and other benefit costs | $ | 308 | $ | (136 | ) | $ | 172 | ||||||
Early withdrawal from multi-employer pension plan | 2,001 | (19 | ) | 1,982 | |||||||||
Lease termination, facility closure and other costs | 1,241 | (87 | ) | 1,154 | |||||||||
Total | $ | 3,550 | — | $ | (242 | ) | $ | 3,308 | |||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 28, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Goodwill and Other Intangibles | ' |
Goodwill and Other Intangibles | |
The Company evaluates possible impairment to goodwill and other intangible assets annually at the end of its fiscal year or whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. There were no such events or changes in circumstances in the period ended December 28, 2013. In the third quarter of fiscal 2013, the Company acquired FastPencil, Inc. (“FastPencil”) and recorded goodwill of $5.9 million (see Note J). In addition, the Company recorded intangibles related to technology, trade name and other intangibles with this acquisition totaling $2.8 million, which are being amortized over periods ranging from three to fifteen years. “Other intangibles” also include trade names with indefinite lives which are not subject to amortization as well as customer lists and technology that are being amortized over five to ten-year periods. Total amortization expense for intangibles was approximately $231,000 and $100,000 in the first quarters of fiscal years 2014 and 2013, respectively. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
Certain assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis, generally as a result of impairment charges. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Assets measured at fair value on a nonrecurring basis include long-lived assets and goodwill and other intangible assets. The three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: | |
Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. | |
Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |
Level 3—Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Financial instruments consist primarily of cash, investments in mutual funds (Level 1), investment in a convertible promissory note (Level 3), accounts receivable, accounts payable, debt obligations and contingent consideration (Level 3). At December 28, 2013 and September 28, 2013, the fair value of the Company’s cash, accounts receivable and accounts payable approximated their carrying values due to the short maturity of these instruments. The fair value of the Company’s revolving credit facility approximates its carrying value due to the variable interest rate and the Company’s current rate standing. | |
Prepublication Costs | ' |
Prepublication Costs | |
Prepublication costs, associated with creating new titles in the publishing segment, are amortized to cost of sales using the straight-line method over estimated useful lives of two to four years. In the second quarter of fiscal 2013, the Company changed its presentation of depreciation and amortization on the Consolidated Condensed Statement of Cash Flows to separately disclose the components of depreciation and amortization related to prepublication costs and intangible assets. Accordingly, the prior year amounts have been changed to reflect this presentation. | |
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
INVENTORIES | ' | |||||||
Schedule of inventories | ' | |||||||
(000’s Omitted) | ||||||||
December 28, | September 28, | |||||||
2013 | 2013 | |||||||
Raw materials | $ | 7,887 | $ | 6,750 | ||||
Work in process | 8,949 | 8,724 | ||||||
Finished goods | 17,955 | 19,612 | ||||||
Total | $ | 34,791 | $ | 35,086 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 3 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
INCOME TAXES | ' | |||||||||||
Schedule of reasons for which provision for income taxes differs from that computed using the statutory federal income tax rates | ' | |||||||||||
(000’s Omitted) | ||||||||||||
Three Months Ended | ||||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||
Federal taxes at statutory rates | $ | 1,494 | 35 | % | $ | 1,345 | 35 | % | ||||
State taxes, net of federal tax benefit | 164 | 3.8 | 158 | 4.1 | ||||||||
Federal manufacturer’s deduction | (159 | ) | (3.7 | ) | (104 | ) | (2.7 | ) | ||||
Change in fair value of contingent consideration | 73 | 1.7 | — | — | ||||||||
Transaction costs | 29 | 0.7 | — | — | ||||||||
Other | 21 | 0.5 | 23 | 0.6 | ||||||||
Total | $ | 1,622 | 38 | % | $ | 1,422 | 37 | % |
OPERATING_SEGMENTS_Tables
OPERATING SEGMENTS (Tables) | 3 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
OPERATING SEGMENTS | ' | |||||||
Schedule of segment information | ' | |||||||
(000’s Omitted) | ||||||||
Three Months Ended | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Net sales: | ||||||||
Book manufacturing | $ | 65,576 | $ | 57,481 | ||||
Publishing | 9,121 | 9,134 | ||||||
Elimination of intersegment sales | (1,901 | ) | (1,859 | ) | ||||
Total | $ | 72,796 | $ | 64,756 | ||||
Pretax income (loss): | ||||||||
Book manufacturing operating income | $ | 5,310 | $ | 5,499 | ||||
Publishing operating loss | (600 | ) | (1,136 | ) | ||||
Stock-based compensation | (358 | ) | (341 | ) | ||||
Elimination of intersegment profit | 92 | 10 | ||||||
Interest expense, net | (175 | ) | (190 | ) | ||||
Total | $ | 4,269 | $ | 3,842 |
STOCK_ARRANGEMENTS_Tables
STOCK ARRANGEMENTS (Tables) | 3 Months Ended | |||
Dec. 28, 2013 | ||||
Stock arrangements | ' | |||
Schedule of the weighted average fair value assumptions of stock options granted based on the Black-Scholes option-pricing model | ' | |||
The weighted average Black-Scholes fair value assumptions for stock options awarded under the 2011 Plan in the first quarter of fiscal 2014 were as follows: | ||||
Estimated life of options (years) | 10 | |||
Risk-free interest rate | 3 | % | ||
Expected volatility | 41.75 | % | ||
Expected dividend yield | 4.8 | % |
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 3 Months Ended | |||||
Dec. 28, 2013 | ||||||
NET INCOME PER SHARE | ' | |||||
Schedule of average number of basic and diluted shares outstanding | ' | |||||
(000’s Omitted) | ||||||
Three Months Ended | ||||||
December 28, | December 29, | |||||
2013 | 2012 | |||||
Weighted average shares for basic | 11,285 | 11,321 | ||||
Effect of potentially dilutive shares | 230 | 103 | ||||
Weighted average shares for diluted | 11,515 | 11,424 |
BUSINESS_ACQUISITION_Tables
BUSINESS ACQUISITION (Tables) | 3 Months Ended | ||||
Dec. 28, 2013 | |||||
BUSINESS ACQUISITION | ' | ||||
Schedule of purchase price allocation | ' | ||||
(000’s Omitted) | |||||
Cash paid | $ | 5,000 | |||
Fair value of contingent “earn out” consideration | 4,700 | ||||
Total | $ | 9,700 | |||
Accounts receivable | $ | 3 | |||
Inventories | 42 | ||||
Licensing contract receivable | 1,500 | ||||
Amortizable intangibles | 2,770 | ||||
Goodwill | 5,875 | ||||
Other assets | 32 | ||||
Accounts payable and accrued liabilities | (325 | ) | |||
Deferred tax liabilities, net | (197 | ) | |||
Total | $ | 9,700 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||
Schedule of assets and liabilities carried at fair value measured on a recurring basis | ' | |||||||||||
(000’s Omitted) | ||||||||||||
Total | Quoted | Significant | Significant | |||||||||
Carrying | Prices in | Other | Unobservable | |||||||||
Value | Active | Observable | Inputs | |||||||||
Markets | Inputs | (Level 3) | ||||||||||
(Level 1) | (Level 2) | |||||||||||
As of December 28, 2013: | ||||||||||||
Short-term investments in mutual funds | $ | 960 | $ | 960 | — | — | ||||||
Investment in convertible promissory note | 500 | — | — | 500 | ||||||||
Contingent consideration liability (Note J) | (5,125 | ) | — | — | (5,125 | ) | ||||||
As of September 28, 2013: | ||||||||||||
Short-term investments in mutual funds | $ | 900 | $ | 900 | — | — | ||||||
Investment in convertible promissory note | 500 | — | — | 500 | ||||||||
Forward foreign exchange contract | 112 | — | 112 | — | ||||||||
Contingent consideration liability (Note J) | (4,960 | ) | — | — | (4,960 | ) | ||||||
Schedule of fair value measurements using significant unobservable inputs (level 3) | ' | |||||||||||
(000’s Omitted) | ||||||||||||
Convertible | ||||||||||||
Promissory | Contingent | |||||||||||
Note | Consideration | |||||||||||
Investment | Liabilities | |||||||||||
Balance as of September 28, 2013 | $ | 500 | $ | (4,960 | ) | |||||||
Change in fair value | — | (165 | ) | |||||||||
Amounts paid | — | — | ||||||||||
Balance at December 28, 2013 | $ | 500 | $ | (5,125 | ) | |||||||
Balance as of September 29, 2012 | $ | (385 | ) | |||||||||
Change in fair value | (15 | ) | ||||||||||
Amounts paid | — | |||||||||||
Balance at December 29, 2012 | $ | (400 | ) |
RESTRUCTURING_COSTS_Tables
RESTRUCTURING COSTS (Tables) | 3 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
RESTRUCTURING COSTS | ' | ||||||||||||
Schedule of accrual balances for restructuring costs | ' | ||||||||||||
(000’s omitted) | |||||||||||||
Accrual at | Charges | Costs | Accrual at | ||||||||||
September 28, | or | Paid or | December 28, | ||||||||||
2013 | Reversals | Settled | 2013 | ||||||||||
Employee severance, post-retirement and other benefit costs | $ | 308 | $ | (136 | ) | $ | 172 | ||||||
Early withdrawal from multi-employer pension plan | 2,001 | (19 | ) | 1,982 | |||||||||
Lease termination, facility closure and other costs | 1,241 | (87 | ) | 1,154 | |||||||||
Total | $ | 3,550 | — | $ | (242 | ) | $ | 3,308 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Jun. 29, 2013 | Apr. 30, 2013 | Jun. 29, 2013 | Jun. 29, 2013 |
Customer lists and technology | Customer lists and technology | FastPencil | FastPencil | FastPencil | FastPencil | ||||
Minimum | Maximum | Minimum | Maximum | ||||||
Other intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $21,808 | ' | $21,820 | ' | ' | $5,900 | $5,875 | ' | ' |
Amortizable intangibles | ' | ' | ' | ' | ' | 2,800 | 2,770 | ' | ' |
Amortization period | ' | ' | ' | '5 years | '10 years | ' | ' | '3 years | '15 years |
Amortization expense | $231 | $111 | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 3 Months Ended |
Dec. 28, 2013 | |
Minimum | ' |
Prepublication costs | ' |
Estimated useful life | '2 years |
Maximum | ' |
Prepublication costs | ' |
Estimated useful life | '4 years |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ' | ' |
Percentage of inventories whose cost is determined using the last-in, first-out (LIFO) method | 55.00% | 55.00% |
Raw materials | $7,887 | $6,750 |
Work in process | 8,949 | 8,724 |
Finished goods | 17,955 | 19,612 |
Total | $34,791 | $35,086 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Income tax provision as different from that computed using the statutory federal income tax rates | ' | ' |
Federal taxes at statutory rate | $1,494 | $1,345 |
State taxes, net of federal tax benefit | 164 | 158 |
Federal manufacturer's deduction | -159 | -104 |
Change in fair value of contingent consideration | 73 | ' |
Transaction costs | 29 | ' |
Other | 21 | 23 |
Total | $1,622 | $1,422 |
Reasons due to which the provision for income taxes differs from that computed using the statutory federal income tax rates | ' | ' |
Federal taxes at statutory rates (as a percent) | 35.00% | 35.00% |
State taxes, net of federal tax benefit (as a percent) | 3.80% | 4.10% |
Federal manufacturer's deduction (as a percent) | -3.70% | -2.70% |
Change in fair value of contingent consideration (as a percent) | 1.70% | ' |
Transaction costs (as a percent) | 0.70% | ' |
Other (as a percent) | 0.50% | 0.60% |
Total (as a percent) | 38.00% | 37.00% |
LONGTERM_DEBT_AND_CAPITAL_LEAS1
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATION (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 25, 2010 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | |
Assets under the capital lease | 1.8% loan | Revolving credit facility | Revolving credit facility | Revolving credit facility | Term loan | Term loan | 3.9% term loan | 3.6% term loan | ||||
item | Maximum | |||||||||||
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | $10,500,000 | $100,000,000 | ' | ' | ' | ' | ' | ' |
Amount of debt outstanding | ' | ' | ' | ' | 10,200,000 | ' | ' | ' | ' | ' | ' | ' |
Implicit interest rate (as a percent) | ' | ' | ' | ' | 1.80% | ' | ' | ' | ' | ' | ' | ' |
Scheduled annual principal payments in the next 12 months | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' |
Scheduled annual payment in year two | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' |
Scheduled annual payment in year three | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' |
Scheduled annual payment in year four | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' |
Number of subsequent years | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Imputed interest | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' |
Depreciation expense | 5,213,000 | 4,711,000 | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | 'LIBOR | ' | 'LIBOR | ' | ' | ' | ' |
Interest rate margin on variable rate basis (as a percent) | ' | ' | ' | ' | ' | ' | ' | 2.25% | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | 1.40% | ' | ' | ' | ' | ' | ' |
Outstanding amount | ' | ' | ' | ' | ' | 18,700,000 | 24,600,000 | ' | ' | ' | ' | ' |
Term of loan | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' |
Borrowings outstanding | $18,724,000 | ' | $24,583,000 | ' | ' | ' | ' | ' | ' | $700,000 | $300,000 | $400,000 |
Fixed annual interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.90% | 3.60% |
OPERATING_SEGMENTS_Details
OPERATING SEGMENTS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
item | ||
OPERATING SEGMENTS | ' | ' |
Number of operating segments | 2 | ' |
Segment information | ' | ' |
Net sales | $72,796 | $64,756 |
Operating income (loss) | 4,444 | 4,032 |
Stock-based compensation | -358 | -341 |
Interest expense, net | -175 | -190 |
Pretax income | 4,269 | 3,842 |
Operating segments | Book manufacturing | ' | ' |
Segment information | ' | ' |
Net sales | 65,576 | 57,481 |
Operating income (loss) | 5,310 | 5,499 |
Operating segments | Publishing | ' | ' |
Segment information | ' | ' |
Net sales | 9,121 | 9,134 |
Operating income (loss) | -600 | -1,136 |
Elimination of intersegment sales | ' | ' |
Segment information | ' | ' |
Net sales | -1,901 | -1,859 |
Operating income (loss) | $92 | $10 |
STOCK_ARRANGEMENTS_Details
STOCK ARRANGEMENTS (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Nov. 30, 2013 | Dec. 28, 2013 | Nov. 30, 2013 | |
Stock Incentive Plans | Stock Incentive Plans | Stock Incentive Plans | Stock Incentive Plans | |||
Stock options | Stock options | Stock awards | ||||
STOCK ARRANGEMENTS | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $358,000 | $341,000 | ' | ' | ' | ' |
Related tax benefit | 127,000 | 120,000 | ' | ' | ' | ' |
Unrecognized stock-based compensation cost | $1,900,000 | ' | ' | ' | ' | ' |
Weighted-average period over which unrecognized stock-based compensation cost is to be recognized | '2 years 1 month 6 days | ' | ' | ' | ' | ' |
Stock arrangements | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' | ' | ' |
Options | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | 22,738 | ' | ' |
Options weighted average exercise price | ' | ' | ' | ' | ' | ' |
Exercise Price of Shares Granted (in dollars per share) | ' | ' | ' | $17.56 | ' | ' |
Weighted-average grant date fair value (in dollars per share) | ' | ' | ' | $4.83 | ' | ' |
Stock awards | ' | ' | ' | ' | ' | ' |
Stock awards granted (in shares) | ' | ' | ' | ' | ' | 34,161 |
Weighted-average fair value | ' | ' | ' | ' | ' | ' |
Awarded (in dollars per share) | ' | ' | ' | ' | ' | $17.56 |
Weighted average fair value assumptions of stock options granted based on the Black-Scholes option-pricing model | ' | ' | ' | ' | ' | ' |
Estimated life of options | ' | ' | ' | ' | '10 years | ' |
Risk-free interest rate (as a percent) | ' | ' | ' | ' | 3.00% | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | 41.75% | ' |
Expected dividend yield (as a percent) | ' | ' | ' | ' | 4.80% | ' |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
NET INCOME PER SHARE | ' | ' |
Weighted average shares for basic | 11,285 | 11,321 |
Effect of potentially dilutive shares | 230 | 103 |
Weighted average shares for diluted | 11,515 | 11,424 |
SHARE_REPURCHASE_PROGRAM_Detai
SHARE REPURCHASE PROGRAM (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Nov. 21, 2013 | Nov. 30, 2012 | Sep. 28, 2013 |
SHARE REPURCHASE PROGRAM | ' | ' | ' |
Authorized share repurchase amount | $10 | $10 | ' |
Shares repurchased | ' | ' | 123,261 |
Value of shares repurchased | ' | ' | $1.60 |
LONGTERM_INVESTMENTS_Details
LONG-TERM INVESTMENTS (Details) | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Oct. 31, 2013 | Dec. 28, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 |
USD ($) | USD ($) | Convertible promissory note | Brazil | Brazil | Brazil | Brazil | Brazil | |
USD ($) | item | Digital Page | Digital Page | Digital Page | Digital Page | |||
USD ($) | USD ($) | BRL | Founder of Digital Page | |||||
item | ||||||||
Long-term investments | ' | ' | ' | ' | ' | ' | ' | ' |
Number of agreements | ' | ' | ' | 2 | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | ' | 40.00% | 40.00% | ' |
Founder's ownership interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | 60.00% |
Amount invested | ' | ' | ' | ' | ' | $9,000,000 | 20,000,000 | ' |
Number of loans | ' | ' | ' | ' | 2 | ' | ' | ' |
Long-term investments | $4,961,000 | $500,000 | $500,000 | ' | $4,500,000 | ' | ' | ' |
Loans which are secured by a pledge of equity (as a percent) | ' | ' | ' | ' | 40.00% | ' | ' | ' |
Interest rate per month (as a percent) | ' | ' | ' | ' | 0.01 | ' | ' | ' |
BUSINESS_ACQUISITION_Details
BUSINESS ACQUISITION (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Apr. 30, 2013 | Dec. 28, 2013 | Jun. 29, 2013 | |
FastPencil | FastPencil | FastPencil | ||||
Business acquisition | ' | ' | ' | ' | ' | ' |
Cash paid | ' | ' | ' | $5,000,000 | ' | ' |
Fair value of contingent "earn out" consideration | 5,125,000 | ' | 4,960,000 | 4,700,000 | 5,100,000 | ' |
Additional potential earn-out payments under acquisition, minimum | ' | ' | ' | 0 | ' | ' |
Additional potential earn-out payments under acquisition, maximum | ' | ' | ' | 13,000,000 | ' | ' |
Potential earn out period | ' | ' | ' | '4 years | ' | ' |
Purchase price allocation | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | 3,000 | ' | ' |
Inventories | ' | ' | ' | 42,000 | ' | ' |
Licensing contract receivable | ' | ' | ' | 1,500,000 | ' | ' |
Amortizable intangibles | ' | ' | ' | 2,770,000 | ' | 2,800,000 |
Goodwill | 21,808,000 | ' | 21,820,000 | 5,875,000 | ' | 5,900,000 |
Other assets | ' | ' | ' | 32,000 | ' | ' |
Accounts payable and accrued liabilities | ' | ' | ' | -325,000 | ' | ' |
Deferred tax liabilities, net | ' | ' | ' | -197,000 | ' | ' |
Total | ' | ' | ' | 9,700,000 | ' | ' |
Recognition of expense on fair value assessment of the contingent earn out consideration payable | $165,000 | $15,000 | ' | ' | $165,000 | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements | ' | ' |
Contingent consideration liability | ($5,125) | ($4,960) |
Recurring basis | Total Carrying Value | ' | ' |
Fair Value Measurements | ' | ' |
Short-term investments in mutual funds | 960 | 900 |
Forward foreign exchange contract | ' | 112 |
Contingent consideration liability | -5,125 | -4,960 |
Recurring basis | Total Carrying Value | Investment in convertible promissory note | ' | ' |
Fair Value Measurements | ' | ' |
Long-term investment | 500 | 500 |
Recurring basis | Quoted Prices in Active Markets (Level 1) | ' | ' |
Fair Value Measurements | ' | ' |
Short-term investments in mutual funds | 960 | 900 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value Measurements | ' | ' |
Forward foreign exchange contract | ' | 112 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value Measurements | ' | ' |
Contingent consideration liability | -5,125 | -4,960 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Investment in convertible promissory note | ' | ' |
Fair Value Measurements | ' | ' |
Long-term investment | $500 | $500 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (Recurring basis, USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Sep. 28, 2013 |
Convertible promissory note investment | Convertible promissory note investment | |||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), Contingent Consideration Liabilities | ' | ' | ' | ' |
Balance at the beginning of the period | ($4,960) | ($385) | ' | ' |
Change in fair value | -165 | -15 | ' | ' |
Balance at the end of the period | -5,125 | -400 | ' | ' |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 500 | 500 |
Balance at the end of the period | ' | ' | $500 | $500 |
RESTRUCTURING_COSTS_Details
RESTRUCTURING COSTS (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 28, 2013 | Sep. 24, 2011 | |
Restructuring costs | ' | ' |
Pre-tax charge | ' | $7,700,000 |
Expected payment | 3,100,000 | ' |
Restructuring payments included in Other current liabilities | 800,000 | ' |
Restructuring payments included in Other liabilities | 2,500,000 | ' |
Remaining accrual balances for restructuring costs | ' | ' |
Accrual at the beginning of the period | 3,550,000 | ' |
Costs Paid or Settled | -242,000 | ' |
Accrual at the end of the period | 3,308,000 | ' |
Employee severance, post-retirement and other benefit costs | ' | ' |
Restructuring costs | ' | ' |
Pre-tax charge | ' | 2,300,000 |
Remaining accrual balances for restructuring costs | ' | ' |
Accrual at the beginning of the period | 308,000 | ' |
Costs Paid or Settled | -136,000 | ' |
Accrual at the end of the period | 172,000 | ' |
Early withdrawal from multi-employer pension plan | ' | ' |
Restructuring costs | ' | ' |
Pre-tax charge | ' | 2,100,000 |
Period over which remaining payments for restructuring costs will be made | '18 years | ' |
Remaining accrual balances for restructuring costs | ' | ' |
Accrual at the beginning of the period | 2,001,000 | ' |
Costs Paid or Settled | -19,000 | ' |
Accrual at the end of the period | 1,982,000 | ' |
Lease termination, facility closure and other costs | ' | ' |
Restructuring costs | ' | ' |
Pre-tax charge | ' | 3,300,000 |
Period over which remaining payments for restructuring costs will be made | '2 years | ' |
Remaining accrual balances for restructuring costs | ' | ' |
Accrual at the beginning of the period | 1,241,000 | ' |
Costs Paid or Settled | -87,000 | ' |
Accrual at the end of the period | $1,154,000 | ' |