Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | May 11, 2017 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ESPEY MFG & ELECTRONICS CORP | |
Entity Central Index Key | 33,533 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 | |
Entity Common Stock, Shares Outstanding | 2,371,321 |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
ASSETS: | ||
Cash and cash equivalents | $ 9,386,048 | $ 10,031,644 |
Investment securities | 9,210,421 | 5,580,059 |
Trade accounts receivable, net of allowance of $3,000 | 3,374,256 | 4,957,464 |
Income tax receivable | 230,753 | 329,298 |
Inventories: | ||
Raw materials | 1,361,409 | 1,418,862 |
Work-in-process | 643,703 | 504,674 |
Costs related to contracts in process, net of advance payments of $16,692 and $18,313 at March 31, 2017 and June 30, 2016, respectively | 6,837,320 | 8,810,145 |
Total inventories | 8,842,432 | 10,733,681 |
Deferred tax assets | 201,944 | 252,558 |
Prepaid expenses and other current assets | 343,446 | 219,688 |
Total current assets | 31,589,300 | 32,104,392 |
Property, plant and equipment, net | 2,356,502 | 2,348,525 |
Total assets | 33,945,802 | 34,452,917 |
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
Accounts payable | 635,502 | 552,787 |
Accrued expenses: | ||
Salaries and wages | 98,963 | 357,910 |
Vacation | 721,635 | 704,761 |
ESOP payable | 274,585 | |
Other | 156,611 | 196,631 |
Payroll and other taxes withheld | 46,822 | 49,353 |
Total current liabilities | 1,934,118 | 1,861,442 |
Deferred tax liabilities | 201,959 | 203,237 |
Total liabilities | 2,136,077 | 2,064,679 |
Commitments and contingencies (see Note 5) | ||
Common stock, par value $.33-1/3 per share Authorized 10,000,000 shares; Issued 3,029,874 shares as of March 31, 2017 and June 30, 2016. Outstanding 2,371,321 and 2,364,684 as of March 31, 2017 and June 30, 2016, respectively (includes 49,167 and 61,667 Unearned ESOP shares, respectively) | 1,009,958 | 1,009,958 |
Capital in excess of par value | 17,437,877 | 17,253,072 |
Accumulated other comprehensive loss | (2,911) | (1,408) |
Retained earnings | 22,034,983 | 22,820,938 |
Total stockholders equity before ESOP | 40,479,907 | 41,082,560 |
Less: Unearned ESOP shares | (891,083) | (891,083) |
Cost of 658,553 and 665,190 shares of common stock in treasury as of March 31, 2017 and June 30, 2016, respectively | (7,779,099) | (7,803,239) |
Total stockholders' equity | 31,809,725 | 32,388,238 |
Total liabilities and stockholders' equity | $ 33,945,802 | $ 34,452,917 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance | $ 3,000 | $ 3,000 |
Advance payments of costs related to contracts in process | $ 16,692 | $ 18,313 |
Common stock, par value | $ 0.3333 | $ 0.3333 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,029,874 | 3,029,874 |
Common stock, shares outstanding | 2,371,321 | 2,364,684 |
Unearned ESOP, shares | 49,167 | 61,667 |
Treasury stock, shares | 658,553 | 665,190 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 5,324,104 | $ 7,217,922 | $ 17,060,411 | $ 20,739,378 |
Cost of sales | 4,195,599 | 5,069,699 | 13,508,014 | 15,034,792 |
Gross profit | 1,128,505 | 2,148,223 | 3,552,397 | 5,704,586 |
Selling, general and administrative expenses | 784,589 | 781,248 | 2,307,636 | 2,285,856 |
Operating income | 343,916 | 1,366,975 | 1,244,761 | 3,418,730 |
Other income | ||||
Interest income | 39,911 | 4,240 | 63,385 | 22,303 |
Other | 7,488 | 12,712 | 21,691 | 57,263 |
Total other income | 47,399 | 16,952 | 85,076 | 79,566 |
Income before provision for income taxes | 391,315 | 1,383,927 | 1,329,837 | 3,498,296 |
Provision for income taxes | 112,142 | 411,459 | 385,761 | 1,032,871 |
Net income | 279,173 | 972,468 | 944,076 | 2,465,425 |
Other comprehensive income, net of tax: | ||||
Unrealized (loss) gain on investment securities | (247) | 4,357 | (1,503) | 5,231 |
Total comprehensive income | $ 278,926 | $ 976,825 | $ 942,573 | $ 2,470,656 |
Net income per share: | ||||
Basic | $ 0.12 | $ 0.43 | $ 0.41 | $ 1.08 |
Diluted | $ 0.12 | $ 0.43 | $ 0.41 | $ 1.08 |
Weighted average number of shares outstanding: | ||||
Basic | 2,317,838 | 2,259,529 | 2,309,771 | 2,273,401 |
Diluted | 2,327,797 | 2,274,781 | 2,323,431 | 2,290,927 |
Dividends per share: | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 944,076 | $ 2,465,425 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Excess tax benefits from share-based compensation | (9,070) | (15,021) |
Stock-based compensation | 93,293 | 74,533 |
Depreciation | 323,710 | 324,745 |
ESOP compensation expense | 320,835 | 334,031 |
Loss on disposal of assets | 147 | |
Deferred income tax expense | 50,146 | 55,656 |
Changes in assets and liabilities: | ||
Decrease in trade receivable, net | 1,583,208 | 1,841,984 |
Decrease (increase) income taxes receivable | 107,615 | (172,459) |
Decrease in inventories, net | 1,891,249 | 185,130 |
Increase in prepaid expenses and other current assets | (123,758) | (48,825) |
Increase (decrease) in accounts payable | 82,715 | (303,595) |
Decrease in accrued salaries and wages | (258,947) | (26,110) |
Increase in vacation accrual | 16,874 | 42,273 |
Decrease in ESOP payable | (46,250) | (79,166) |
Decrease in other accrued expenses | (40,020) | (247,038) |
(Decrease) increase in payroll and other taxes withheld | (2,531) | 3,773 |
Increase in income taxes payable | 12,305 | |
Net cash provided by operating activities | 4,933,145 | 4,447,788 |
Cash Flows from Investing Activities: | ||
Additions to property, plant and equipment | (331,686) | (140,340) |
Purchase of investment securities | (7,606,900) | (3,575,584) |
Proceeds from sale/maturity of investment securities | 3,974,224 | 2,343,942 |
Net cash used in investing activities | (3,964,362) | (1,371,982) |
Cash Flows from Financing Activities: | ||
Dividends on common stock | (1,730,031) | (2,279,895) |
Purchase of treasury stock | (44,335) | (355,418) |
Proceeds from exercise of stock options | 150,917 | 232,882 |
Excess tax benefits from share-based compensation | 9,070 | 15,021 |
Net cash used in financing activities | (1,614,379) | (2,387,410) |
(Decrease) increase in cash and cash equivalents | (645,596) | 688,396 |
Cash and cash equivalents, beginning of period | 10,031,644 | 8,859,405 |
Cash and cash equivalents, end of period | 9,386,048 | 9,547,801 |
Supplemental Schedule of Cash Flow Information: | ||
Income taxes paid | $ 228,000 | $ 1,143,000 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation In the opinion of management the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the results for such periods. The results for any interim period are not necessarily indicative of the results to be expected for the full fiscal year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, inventories, income taxes, and stock-based compensation. Management bases its estimates on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. These financial statements should be read in conjunction with the Company's most recent audited financial statements included in its report on Form 10-K for the year ended June 30, 2016. Certain reclassifications may have been made to the prior year financial statements to conform to the current year presentation. |
Investment Securities and Fair
Investment Securities and Fair Value of Financial Instruments | 9 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities and Fair Value of Financial Instruments | Note 2. Investment Securities and Fair Value of Financial Investments ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: § Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. § Level 2: Significant other 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. § Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The carrying amounts of financial instruments, including cash and cash equivalents, short term investment securities, accounts receivable, accounts payable and accrued expenses, approximated fair value as of March 31, 2017 and June 30, 2016 because of the immediate or short-term maturity of these financial instruments. Investment securities at March 31, 2017 and June 30, 2016 consist of certificates of deposit and municipal bonds which are classified as available-for-sale securities and have been determined to be level 1 assets. The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities by major security type at March 31, 2017 and June 30, 2016 are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2017 Certificates of deposit $ 8,901,000 $ — $ — $ 8,901,000 Municipal bonds 310,268 53 (900 ) 309,421 Total investment securities $ 9,211,268 $ 53 $ (900 ) $ 9,210,421 June 30, 2016 Certificates of deposit $ 4,871,000 $ — $ — $ 4,871,000 Municipal bonds 707,593 1,466 — 709,059 Total investment securities $ 5,578,593 $ 1,466 $ — $ 5,580,059 The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments. At March 31, 2017, the Company did not have any investments in individual securities that have been in a continuous loss position considered to be other than temporary. As of March 31, 2017 and June 30, 2016, the contractual maturities of available-for-sale securities were as follows: Years to Maturity Less than One to One Year Five Years Total March 31, 2017 Available-for-sale $ 8,846,312 $ 364,109 $ 9,210,421 June 30, 2016 Available-for-sale $ 4,811,511 $ 768,548 $ 5,580,059 |
Net Income per Share
Net Income per Share | 9 Months Ended |
Mar. 31, 2017 | |
Net Income per Share [Abstract] | |
Net Income per Share | Note 3. Net Income per Share Basic net income per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company. The computation of weighted-average common shares outstanding, assuming dilution, excluded options to purchase 152,150 and 92,400 shares of our common stock for the three and nine months ended March 31, 2017 and 2016, respectively, as the effect of including them would be anti-dilutive. As Unearned ESOP shares are released or committed-to-be-released the shares become outstanding for earnings-per-share computations. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Note 4. Stock Based Compensation The Company follows ASC 718 in establishing standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services, as well as transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the financial statements based on the fair value of the share-based payment. ASC 718 establishes fair value as the measurement objective in accounting for share-based payment transactions with employees, except for equity instruments held by employee share ownership plans. Total stock-based compensation expense recognized in the statements of comprehensive income for the three-month periods ended March 31, 2017 and 2016 was $40,245 and $22,284, respectively, before income taxes. The related total deferred tax benefits were approximately $3,769 and $1,765 for the same periods. Total stock-based compensation expense recognized in the statements of comprehensive income for the nine-month periods ended March 31, 2017 and 2016, was $93,293 and $74,533, respectively. The related total deferred tax benefit was approximately $7,893 and $6,206 for the same periods. ASC 718 requires the tax benefits resulting from tax deductions in excess of the compensation cost recognized for those options to be classified and reported as both an operating cash outflow and a financing cash inflow. As of March 31, 2017, there was approximately $153,700 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the next 1.75 years. The total deferred tax benefit related to these awards is expected to be approximately $14,184. The Company has one employee stock option plan under which options may be granted, the 2007 Stock Option and Restricted Stock Plan (the "2007 Plan") approved by the Company’s shareholders at the Company’s Annual Meeting on November 30, 2007. The Board of Directors may grant options to acquire shares of common stock to employees of the Company at the fair market value of the common stock on the date of grant. Generally, options granted have a two-year vesting period based on two years of continuous service and have a ten-year contractual life. Option grants provide for accelerated vesting if there is a change in control. Shares issued upon the exercise of options are from those held in Treasury. Options covering 400,000 shares are authorized for issuance under the 2007 Plan, of which 278,300 have been granted and 199,650 are outstanding as of March 31, 2017. ASC 718 requires the use of a valuation model to calculate the fair value of stock-based awards. The Company has elected to use the Black-Scholes option valuation model, which incorporates various assumptions including those for volatility, expected life and interest rates. The table below outlines the weighted average assumptions that the Company used to calculate the fair value of the option award for the nine months ended March 31, 2017 and 2016, respectively. March 31, 2017 March 31, 2016 Dividend yield 3.85% 3.85% Expected stock price volatility 29.70% 28.09% Risk-free interest rate 1.84% 1.33% Expected option life (in years) 4.6 yrs 4.1 yrs Weighted average fair value per share $ 4.640 $ 4.149 of options granted during the period The Company declares dividends quarterly and paid cash dividends totaling $0.75 for the nine months ended March 31, 2017 and 2016. Our Board of Directors assesses the Company’s dividend policy periodically. There is no assurance that the Board of Directors will maintain the amount of the regular cash dividend. Expected stock price volatility is based on the historical volatility of the Company’s stock. The risk-free interest rate is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the expected life of the options. The expected option life (in years) represents the estimated period of time until exercise and is based on actual historical experience. The following table summarizes stock option activity during the nine months ended March 31, 2017: Employee Stock Options Plan Weighted Number of Weighted Average Shares Average Remaining Aggregate Subject Exercise Contractual Intrinsic To Options Price Term Value Balance at July 1, 2016 170,450 $ 23.84 5.73 Granted 41,150 $ 26.25 9.68 Exercised (8,300 ) $ 18.18 — Forfeited or expired (3,650 ) $ 23.12 — Outstanding at March 31, 2017 199,650 $ 24.59 6.13 $ 151,064 Vested or expected to vest at March 31, 2017 188,853 $ 24.50 5.96 $ 151,064 Exercisable at March 31, 2017 124,950 $ 23.66 4.39 $ 151,064 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing sale price of the Company’s common stock as reported on the NYSE MKT on March 31, 2017 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders if all option holders had exercised their options on March 31, 2017. This amount changes based on the fair market value of the Company’s common stock. The total intrinsic values of the options exercised during the nine months ended March 31, 2017 and 2016 were $20,769 and $36,374, respectively. The following table summarizes changes in non-vested stock options during the nine months ended March 31, 2017: Weighted Number Average Grant of Shares Date Fair Subject to Option Value (per Option) Non-vested at July 1, 2016 45,800 $ 4.564 Granted 41,150 $ 4.640 Vested (10,000 ) $ 4.296 Forfeited or expired (2,250 ) $ 4.694 Non-vested at March 31, 2017 74,700 $ 4.638 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5. Commitments and Contingencies The Company at certain times enters into standby letters of credit agreements with financial institutions primarily relating to the guarantee of future performance on certain contracts. Contingent liabilities on outstanding standby letters of credit agreements aggregated to zero at March 31, 2017 and June 30, 2016. The Company, as a U.S. Government contractor, is subject to audits, reviews, and investigations by the U.S. Government related to its negotiation and performance of government contracts and its accounting for such contracts. Failure to comply with applicable U.S. Government standards by a contractor may result in suspension from eligibility for award of any new government contract and a guilty plea or conviction may result in debarment from eligibility for awards. The government may, in certain cases, also terminate existing contracts, recover damages, and impose other sanctions and penalties. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Mar. 31, 2017 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Note 6. Recently Issued Accounting Standards In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” ASU No. 2015-11 requires inventory measured using any method other than last-in, first out or the retail inventory method to be subsequently measured at the lower of cost and net realizable value, rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price, less the estimated costs to complete, dispose, and transport such inventory. ASU No. 2015-11 will be effective for fiscal years and interim periods beginning after December 15, 2016. ASU No. 2015-11 is required to be applied prospectively and early adoption is permitted. The Company’s adoption of ASU No. 2015-11 is not expected to have a material impact on the Company’s financial position or results of operations. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers, ” In subsequent periods, the FASB issued additional ASUs intended to clarify specific aspects related to the interpretation and implementation of ASU No. 2014-09. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers – Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” to provide guidance on principal versus agent considerations by an entity as discussed in ASU No. 2014-09. ASU No. 2016-08 provides criteria to be assessed by an entity when determining whether it is the principal or agent in relation to the goods or services which the Company is contractually obligated to provide to the customer. Among these considerations are; identifying the unit of account at which the entity should assess whether it is a principal or an agent, identifying the nature of the good or service provided to the customer; applying the control principle to certain types of transactions; and, interaction of the control principle with the indicators provided to assist in the principle versus agent evaluation. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers – (Topic 606): Identifying Performance Obligations and Licensing” to provide implementation guidance related to the necessary judgements required in identifying performance obligations of a contract and guidance related to recognition of licensing revenues. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers – (Topic 606): Narrow-Scope Improvements and Practical Expedients” to provide guidance related to the implementation of ASU No. 2014-09 in the following areas; assessing collectability for contracts that do not meet Step 1 of revenue recognition, presentation of sales taxes, noncash consideration, contract modifications at transition, and completed contracts at transition. These standards are effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU No. 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is permitted for annual periods beginning after December 15, 2016 and interim periods therein. We are currently evaluating the impact of our pending adoption of ASU No. 2014-09 on our financial statements and have not yet determined the method by which we will adopt the standard in fiscal 2019 beginning July 1, 2018. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. The guidance requires the classification of deferred tax assets and liabilities as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a taxpaying component of an entity be offset and presented as a single amount is not affected by this update. ASU No. 2015-17 will be effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. ASU No. 2015-17 may be applied prospectively or retrospectively, and early adoption is permitted. Adoption of ASU No. 2015-17 would have the following impact on the Company’s financial statements at March 31, 2017: a decrease in current assets and a decrease in noncurrent liabilities of $201,944, resulting in a net noncurrent liability of $15. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. The amendments in this Update address certain aspects of recognition, measurement, presentation and disclosure of financial instruments (primarily equity securities) in order to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU No. 2016-01 will be effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company is evaluating the impact that ASU No. 2016-01 will have on the Company's financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Additionally, this ASU allows an entity to make an accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures as they occur. ASU No. 2016-09 will be effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. ASU No. 2016-09 may be applied prospectively or retrospectively, and early adoption is permitted. The Company is evaluating the impact that ASU No. 2016-09 will have on the Company's financial statements. In March 2017, the FASB issued ASU No. 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities”. The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. ASU No. 2017-08 will be effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Company is evaluating the impact that ASU No. 2017-08 will have on the Company's financial statements. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Mar. 31, 2017 | |
Employee Stock Ownership Plan [Abstract] | |
Employee Stock Ownership Plan | Note 7. Employee Stock Ownership Plan The Company sponsors a leveraged employee stock ownership plan (the "ESOP") that covers all non-union employees who work 1,000 or more hours per year and are employed on June 30. The Company makes annual contributions to the ESOP equal to the ESOP's debt service less dividends on unallocated shares received by the ESOP. All dividends on unallocated shares received by the ESOP are used to pay debt service. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. As the debt is repaid, shares are released and allocated to active employees, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with FASB ASC 718-40. Accordingly, the shares purchased by the ESOP are reported as Unearned ESOP shares in the statement of financial position. As shares are released or committed-to-be-released, the Company reports compensation expense equal to the current average market price of the shares, and the shares become outstanding for earnings-per-share (EPS) computations. ESOP compensation expense was $103,959 and $109,856 for the three-month periods ended March 31, 2017 and 2016, respectively. ESOP compensation expense was $320,835 and $334,031 for the nine-month periods ended March 31, 2017 and 2016, respectively. The ESOP shares as of March 31, 2017 and 2016 were as follows: March 31, 2017 March 31, 2016 Allocated shares 439,432 423,568 Committed-to-be-released shares 12,500 13,125 Unreleased shares 49,167 66,042 Total shares held by the ESOP 501,099 502,735 Fair value of unreleased shares $ 1,130,841 $ 1,624,633 During the three and nine months ended March 31, 2017 the Company repurchased 0 and 1,663 shares previously held in the ESOP for $0 and $44,336, respectively. During the three and nine months ended March 31, 2016 the Company repurchased 0 and 14,303 shares previously held in the ESOP for $0 and $355,418, respectively. |
Investment Securities and Fai13
Investment Securities and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-Sale Securities | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2017 Certificates of deposit $ 8,901,000 $ — $ — $ 8,901,000 Municipal bonds 310,268 53 (900 ) 309,421 Total investment securities $ 9,211,268 $ 53 $ (900 ) $ 9,210,421 June 30, 2016 Certificates of deposit $ 4,871,000 $ — $ — $ 4,871,000 Municipal bonds 707,593 1,466 — 709,059 Total investment securities $ 5,578,593 $ 1,466 $ — $ 5,580,059 |
Schedule of Contractual Maturities | Years to Maturity Less than One to One Year Five Years Total March 31, 2017 Available-for-sale $ 8,846,312 $ 364,109 $ 9,210,421 June 30, 2016 Available-for-sale $ 4,811,511 $ 768,548 $ 5,580,059 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Fair Value Assumptions | March 31, 2017 March 31, 2016 Dividend yield 3.85% 3.85% Expected stock price volatility 29.70% 28.09% Risk-free interest rate 1.84% 1.33% Expected option life (in years) 4.6 yrs 4.1 yrs Weighted average fair value per share $ 4.640 $ 4.149 of options granted during the period |
Schedule of Stock Option Activity | Employee Stock Options Plan Weighted Number of Weighted Average Shares Average Remaining Aggregate Subject Exercise Contractual Intrinsic To Options Price Term Value Balance at July 1, 2016 170,450 $ 23.84 5.73 Granted 41,150 $ 26.25 9.68 Exercised (8,300 ) $ 18.18 — Forfeited or expired (3,650 ) $ 23.12 — Outstanding at March 31, 2017 199,650 $ 24.59 6.13 $ 151,064 Vested or expected to vest at March 31, 2017 188,853 $ 24.50 5.96 $ 151,064 Exercisable at March 31, 2017 124,950 $ 23.66 4.39 $ 151,064 |
Schedule of Changes in Non-Vested Stock Options | Weighted Number Average Grant of Shares Date Fair Subject to Option Value (per Option) Non-vested at July 1, 2016 45,800 $ 4.564 Granted 41,150 $ 4.640 Vested (10,000 ) $ 4.296 Forfeited or expired (2,250 ) $ 4.694 Non-vested at March 31, 2017 74,700 $ 4.638 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Employee Stock Ownership Plan [Abstract] | |
Schedule of ESOP shares | March 31, 2017 March 31, 2016 Allocated shares 439,432 423,568 Committed-to-be-released shares 12,500 13,125 Unreleased shares 49,167 66,042 Total shares held by the ESOP 501,099 502,735 Fair value of unreleased shares $ 1,130,841 $ 1,624,633 |
Investment Securities and Fai16
Investment Securities and Fair Value of Financial Instruments (Schedule of Available-for-Sale Securities) (Details) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 9,211,268 | $ 5,578,593 |
Gross Unrealized Gains | 53 | 1,466 |
Gross Unrealized Losses | (900) | |
Fair Value | 9,210,421 | 5,580,059 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 310,268 | 707,593 |
Gross Unrealized Gains | 53 | 1,466 |
Gross Unrealized Losses | (900) | |
Fair Value | 309,421 | 709,059 |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,901,000 | 4,871,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 8,901,000 | $ 4,871,000 |
Investment Securities and Fai17
Investment Securities and Fair Value of Financial Instruments (Schedule of Contractual Maturities) (Details) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
Contractual maturities of available-for-sale securities | ||
Less than One Year | $ 8,846,312 | $ 4,811,511 |
One to Five Years | 364,109 | 768,548 |
Fair Value | $ 9,210,421 | $ 5,580,059 |
Net Income per Share (Details)
Net Income per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net Income per Share [Abstract] | ||||
Anti-dilutive securities | 152,150 | 92,400 | 152,150 | 92,400 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 112 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation expense | $ 40,245 | $ 22,284 | $ 93,293 | $ 74,533 | ||
Deferred tax benefit related to stock based compensation | 3,769 | $ 1,765 | 7,893 | $ 6,206 | ||
Unrecognized compensation costs | 153,700 | $ 153,700 | $ 153,700 | |||
Period in which compensation cost will be recognized | 1 year 9 months | |||||
Deferred tax benefit related to unrecognized compensation costs | $ 14,184 | $ 14,184 | $ 14,184 | |||
Granted | 41,150 | |||||
Outstanding | 199,650 | 199,650 | 199,650 | 170,450 | ||
Cash divided paid | $ 0.75 | $ 0.75 | ||||
Aggregate intrinsic value of options exercised | $ 20,769 | $ 36,374 | ||||
Stock Option Plans [Member] | 2007 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Expiration period | 10 years | |||||
Authorized shares under plan | 400,000 | 400,000 | 400,000 | |||
Granted | 278,300 | |||||
Outstanding | 199,650 | 199,650 | 199,650 |
Stock-based Compensation (Sched
Stock-based Compensation (Schedule of weighted average assumptions for option awards) (Details) - $ / shares | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Weighted Average Assumptions | ||
Dividend yield | 3.85% | 3.85% |
Expected stock price volatility | 29.70% | 28.09% |
Risk-free interest rate | 1.84% | 1.33% |
Expected option life (in years) | 4 years 7 months 6 days | 4 years 1 month 6 days |
Weighted average fair value per share of options granted during the period | $ 4.640 | $ 4.149 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Stock Option Activity) (Details) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | Jun. 30, 2016$ / sharesshares | |
Number of Shares Subject To Options | ||
Balance at July 1, 2016 | shares | 170,450 | |
Granted | shares | 41,150 | |
Exercised | shares | (8,300) | |
Forfeited or expired | shares | (3,650) | |
Outstanding at March 31, 2017 | shares | 199,650 | 170,450 |
Vested or expected to vest at March 31, 2017 | shares | 188,853 | |
Exercisable at March 31, 2017 | shares | 124,950 | |
Weighted Average Exercise Price | ||
Balance at July 1, 2016 | $ / shares | $ 23.84 | |
Granted | $ / shares | 26.25 | |
Exercised | $ / shares | 18.18 | |
Forfeited or expired | $ / shares | 23.12 | |
Outstanding at March 31, 2017 | $ / shares | 24.59 | $ 23.84 |
Vested or expected to vest at March 31, 2017 | $ / shares | 24.50 | |
Exercisable at March 31, 2017 | $ / shares | $ 23.66 | |
Weighted Average Remaining Contractual Term | ||
Outstanding | 6 years 1 month 17 days | 5 years 8 months 23 days |
Granted | 9 years 8 months 5 days | |
Vested or expected to vest at March 31, 2017 | 5 years 11 months 16 days | |
Exercisable at March 31, 2017 | 4 years 4 months 21 days | |
Aggregate Intrinsic Value | ||
Outstanding at March 31, 2017 | $ | $ 151,064 | |
Vested or expected to vest at March 31, 2017 | $ | 151,064 | |
Exercisable at March 31, 2017 | $ | $ 151,064 |
Stock Based Compensation (Sch22
Stock Based Compensation (Schedule of Changes in Non-Vested Stock Options) (Details) | 9 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Weighted Number of Shares Subject to Option | |
Non-vested at July 1, 2016 | shares | 45,800 |
Granted | shares | 41,150 |
Vested | shares | (10,000) |
Forfeited or expired | shares | (2,250) |
Non-vested at March 31, 2017 | shares | 74,700 |
Average Grant Date Fair Value | |
Non-vested at July 1, 2016 | $ / shares | $ 4.564 |
Granted | $ / shares | 4.640 |
Vested | $ / shares | 4.296 |
Forfeited or expired | $ / shares | 4.694 |
Non-vested at March 31, 2017 | $ / shares | $ 4.638 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
Standby Letters of Credit [Member] | ||
Contingent liabilities | $ 0 | $ 0 |
Recently Issued Accounting St24
Recently Issued Accounting Standards (Details) - Adjustments for New Accounting Pronouncement [Member] | 9 Months Ended |
Mar. 31, 2017USD ($) | |
Item Effected [Line Items] | |
Change in current assets | $ (201,944) |
Change in noncurrent liabilities | (201,944) |
Net noncurrent liability | $ 15 |
Employee Stock Ownership Plan25
Employee Stock Ownership Plan (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($)shares | Mar. 31, 2017USD ($)hshares | Mar. 31, 2016USD ($)shares | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
ESOP compensation expense | $ 103,959 | $ 109,856 | $ 320,835 | $ 334,031 |
Employee Stock Ownership Plan [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Number of hours worked per year to quality for the plan | h | 1,000 | |||
Shares repurchased | shares | 0 | 0 | 1,663 | 14,303 |
Value of shares repurchased | $ 0 | $ 0 | $ 44,336 | $ 355,418 |
Employee Stock Ownership Plan26
Employee Stock Ownership Plan (Schedule of ESOP shares) (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2016 |
Employee Stock Ownership Plan [Abstract] | ||
Allocated shares | 439,432 | 423,568 |
Committed-to-be-released shares | 12,500 | 13,125 |
Unreleased shares | 49,167 | 66,042 |
Total shares held by the ESOP | 501,099 | 502,735 |
Fair value of unreleased shares | $ 1,130,841 | $ 1,624,633 |