Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Nov. 13, 2019 | Mar. 29, 2019 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | IEC ELECTRONICS CORP | ||
Entity Central Index Key | 0000049728 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, $.01 par value | ||
Trading Symbol | IEC | ||
Entity Common Stock, Shares Outstanding | 10,499,047 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 61,931,836 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash | $ 0 | $ 0 |
Accounts receivable, net of allowance | 27,618 | 25,168 |
Unbilled contract revenue | 9,529 | |
Inventories | 44,267 | 34,126 |
Federal income tax receivable | 517 | 0 |
Other current assets | 1,454 | 1,747 |
Total current assets | 83,385 | 61,041 |
Property, plant and equipment, net | 19,433 | 20,110 |
Deferred income taxes | 7,154 | 8,855 |
Other long-term assets | 860 | 442 |
Total assets | 110,832 | 90,448 |
Current liabilities: | ||
Current portion of long-term debt | 1,371 | 1,449 |
Current portion of capital lease obligation | 338 | 306 |
Accounts payable | 23,690 | 28,689 |
Accrued payroll and related expenses | 3,174 | 1,796 |
Other accrued expenses | 668 | 458 |
Customer deposits | 13,229 | |
Contract with Customer, Liability | 13,229 | 7,595 |
Total current liabilities | 42,470 | 40,293 |
Long-term debt | 28,910 | 16,002 |
Long-term capital lease obligation | 6,685 | 7,027 |
Other long-term liabilities | 1,527 | 1,750 |
Total liabilities | 79,592 | 65,072 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.01 par value: 500,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value: Authorized 50,000,000 shares; Issued: 11,394,036 and 11,304,393 shares, respectively; Outstanding: 10,338,548 and 10,248905 shares, respectively | 103 | 102 |
Additional paid-in capital | 48,001 | 47,326 |
Accumulated deficit | (15,275) | (20,463) |
Treasury stock, at cost: 1,055,488 shares | (1,589) | (1,589) |
Total stockholders’ equity | 31,240 | 25,376 |
Total liabilities and stockholders’ equity | $ 110,832 | $ 90,448 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 11,394,036 | 11,304,393 |
Common stock, shares outstanding | 10,338,548 | 10,248,905 |
Treasury stock, shares | 1,055,488 | 1,055,488 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 156,981 | $ 116,922 |
Cost of sales | 135,337 | 102,765 |
Gross profit | 21,644 | 14,157 |
Selling and administrative expenses | 14,076 | 11,438 |
Operating profit | 7,568 | 2,719 |
Interest expense | 1,645 | 1,146 |
Income before income taxes | 5,923 | 1,573 |
Provision/(benefit) for income taxes | 1,176 | (8,837) |
Net income | $ 4,747 | $ 10,410 |
Net income per common share: | ||
Net earnings/loss (in dollars per share) | $ 0 | $ 0 |
Net earnings/loss (in dollars per share) | $ 0 | $ 0 |
Weighted average number of shares outstanding: | ||
Weighted Average Number of Shares Outstanding, Basic | 10,306,947 | 10,228,596 |
Diluted (in shares) | 10,518,126 | 10,320,203 |
CONSOLIDATED STATEMENTS of CHAN
CONSOLIDATED STATEMENTS of CHANGES in STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock, at cost |
Number of shares outstanding, beginning balance (shares) at Sep. 30, 2017 | 10,197,078 | ||||
Beginning Balance at Sep. 30, 2017 | $ 14,429 | $ 102 | $ 46,789 | $ (30,873) | $ (1,589) |
Net income | 10,410 | 10,410 | |||
Stock-based compensation | 489 | 489 | |||
Vested restricted stock and restricted stock units, net of shares withheld for payment of taxes (shares) | 38,364 | ||||
Vested restricted stock and restricted stock units, net of shares withheld for payment of taxes | $ (8) | $ 0 | (8) | ||
Exercise of stock options, net of shares surrendered (shares) | 1,400 | 1,400 | |||
Exercise of stock options, net of shares surrendered | $ 6 | 6 | |||
Employee stock plan purchases (shares) | 12,063 | ||||
Employee stock plan purchases | 50 | 50 | |||
Ending Balance at Sep. 30, 2018 | $ 25,376 | $ 102 | 47,326 | (20,463) | (1,589) |
Number of shares outstanding, ending balance (shares) at Sep. 30, 2018 | 10,248,905 | 10,248,905 | |||
Net income | $ 4,747 | 4,747 | |||
Stock-based compensation | 567 | 567 | |||
Vested restricted stock and restricted stock units, net of shares withheld for payment of taxes (shares) | 51,872 | ||||
Vested restricted stock and restricted stock units, net of shares withheld for payment of taxes | $ (52) | $ 1 | (53) | ||
Exercise of stock options, net of shares surrendered (shares) | 34,000 | 26,707 | |||
Exercise of stock options, net of shares surrendered | $ 101 | 101 | |||
Employee stock plan purchases (shares) | 11,064 | ||||
Employee stock plan purchases | 60 | 60 | |||
Ending Balance at Sep. 30, 2019 | $ 31,240 | $ 103 | $ 48,001 | $ (15,275) | $ (1,589) |
Number of shares outstanding, ending balance (shares) at Sep. 30, 2019 | 10,338,548 | 10,338,548 |
CONSOLIDATED STATEMENTS of CASH
CONSOLIDATED STATEMENTS of CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 4,747 | $ 10,410 |
Non-cash adjustments: | ||
Stock-based compensation | 567 | 489 |
Depreciation and amortization | 2,832 | 2,351 |
Change in reserve for doubtful accounts | (14) | 10 |
Change in excess/obsolete inventory reserve | (81) | 123 |
Deferred tax expense/(benefit) | 1,577 | (8,855) |
Amortization of deferred gain on sale of leaseback | (114) | (83) |
Amortization of deferred gain on sale of leaseback | ||
Accounts receivable | (2,436) | (7,291) |
Increase (Decrease) in Unbilled Receivables | (5,196) | 0 |
Inventories | (13,828) | (18,644) |
Increase (Decrease) in Income Taxes Receivable | (517) | 0 |
Other current assets | 293 | (729) |
Other long-term assets | (434) | (333) |
Accounts payable | (2,670) | 13,540 |
Change in book overdraft position | (2,329) | 2,103 |
Accrued expenses | 1,588 | 797 |
Customer deposits | 5,634 | 5,984 |
Accrued expenses | (75) | (75) |
Net cash flows used in operating activities | (10,456) | (203) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (2,118) | (3,934) |
Proceeds from disposal of property, plant and equipment | 20 | 5 |
Proceeds from sale-leaseback transaction | 0 | 1,947 |
Net cash flows used in investing activities | (2,098) | (1,982) |
Borrowings under other loan agreements | ||
Repayments under other loan agreements | 81,225 | 62,380 |
Principal repayments under capital lease | (67,575) | (58,153) |
Borrowings under other loan agreements | 391 | 1,150 |
Proceeds from exercise of stock options | (1,231) | (2,921) |
Principal repayments under capital lease | (310) | (244) |
Proceeds from employee stock plan purchases | (55) | (75) |
Cash paid for employee taxes upon vesting of restricted stock | 101 | 6 |
Restricted (non-vested) stock grants, net of forfeitures | 60 | 50 |
Cash paid for employee taxes upon vesting of restricted stock | (53) | (8) |
Restricted (non-vested) stock grants, net of forfeitures | 1 | 0 |
Net cash flows provided by financing activities | 12,554 | 2,185 |
Net cash decrease for the year | 0 | 0 |
Cash, beginning of year | 0 | 0 |
Cash, end of year | 0 | 0 |
Income taxes paid | ||
Interest paid | 1,623 | 1,151 |
Income taxes paid | 7 | 7 |
Property, plant and equipment additions financed through capital lease | $ 0 | $ 2,000 |
OUR BUSINESS AND SUMMARY OF SIG
OUR BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
OUR BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1—OUR BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our Business IEC Electronics Corp. (“IEC,” or the “Company”) provides electronic manufacturing services (“EMS”) to advanced technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. The Company specializes in delivering technical solutions for the custom manufacture of complex full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with a broad array of manufacturing services encompassing electronics, interconnect solutions, and precision metalworking. As a full service EMS provider, IEC holds all appropriate certifications for the market sectors it supports including ISO 9001:2008, AS9100D, and ISO 13485, and the Company is Nadcap accredited. IEC is headquartered in Newark, NY and also has operations in Rochester, NY and Albuquerque, NM. Additional information about IEC can be found on its website at www.iec-electronics.com . The contents of this website are not incorporated by reference into this annual report. Generally Accepted Accounting Principles IEC’s financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Fiscal Calendar The Company’s fiscal year ends on September 30th and the first three quarters generally end on the Friday closest to the last day of the calendar quarter. For the fiscal year ended September 30, 2019 (“fiscal 2019 ”), the fiscal quarters ended on December 28, 2018 , March 29, 2019 and June 28, 2019 . For the fiscal year ended September 30, 2018 (“fiscal 2018 ”), the fiscal quarters ended on December 29, 2017 , March 30, 2018 and June 29, 2018 . Consolidation The consolidated financial statements include the accounts of IEC and its wholly-owned subsidiaries: IEC Electronics Corp-Albuquerque (“Albuquerque”); IEC Analysis & Testing Laboratory, LLC (“ATL”); and IEC California Holdings, Inc., which was dissolved as of September 18, 2019. The Rochester unit operates as a division of IEC. All intercompany transactions and accounts are eliminated in consolidation. Reclassifications In fiscal 2018, certain customers as shown within Note 10—Market Sectors and Major Customers were classified into different sectors as compared to fiscal 2019. To create consistency, fiscal 2018 amounts were reclassified to the market sectors which align with fiscal 2019 reporting. Cash The Company’s cash represents deposit accounts with Manufacturers and Traders Trust Company (“M&T Bank”), a banking corporation headquartered in Buffalo, NY. The Company’s cash management system provides for the funding of the disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks in excess of the bank balance create a book overdraft. Book overdrafts are presented in accounts payable in the consolidated balance sheets. Book overdrafts were $0.3 million and $2.7 million as of September 30, 2019 and September 30, 2018 , respectively. Changes in the book overdrafts are presented within net cash flows used in operating activities within the consolidated statements of cash flows. Allowance for Doubtful Accounts The Company establishes an allowance for doubtful accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability. Accounts are written off after all reasonable collection efforts have been exhausted and management concludes that the likelihood of collection is remote. Inventory Valuation Inventories are stated at the lower of cost or net realizable value under the first-in, first-out method. The Company regularly assesses slow-moving, excess and obsolete inventory and maintains balance sheet reserves in amounts required to reduce the recorded value of inventory to the lower of cost or net realizable value. Property, Plant and Equipment Property, plant and equipment (“PP&E”) are stated at cost and are depreciated over various estimated useful lives using the straight-line method. Maintenance and repairs are charged to expense as incurred, while renewals and improvements are capitalized. At the time of retirement or other disposition of PP&E, cost and accumulated depreciation are removed from the accounts and any gain or loss is recorded in earnings. Depreciable lives generally used for PP&E are presented in the table below. Leasehold improvements are amortized over the shorter of the lease term or estimated useful life of the improvement. PP&E Lives Estimated (years) Land improvements 10 Buildings and improvements 5 to 40 Machinery and equipment 3 to 7 Furniture and fixtures 3 to 7 Software 3 to 10 Reviewing Long-Lived Assets for Potential Impairment ASC 360-10 (Property, Plant and Equipment) requires the Company to test long-lived assets (PP&E and definite lived assets) for recoverability whenever events or circumstances indicate that the carrying amount may not be recoverable. If carrying value exceeds undiscounted future cash flows attributable to an asset, it is considered impaired and the excess of carrying value over fair value must be charged to earnings. No impairment charges were recorded for long-lived assets during fiscal 2019 and 2018 . Leases At the inception of a lease covering equipment or real estate, the lease agreement is evaluated under criteria discussed in ASC 840 (Leases). Leases meeting one of four key criteria are accounted for as capital leases and all others are treated as operating leases. Under a capital lease, the discounted value of future lease payments becomes the basis for recognizing an asset and a borrowing, and lease payments are allocated between debt reduction and interest. For operating leases, payments are recorded as rent expense. Criteria for a capital lease include (i) transfer of ownership during the lease term; (ii) existence of a bargain purchase option under terms that make it likely to be exercised; (iii) a lease term equal to 75 percent or more of the economic life of the leased property; and (iv) minimum lease payments that equal or exceed 90 percent of the fair value of the property. Legal Contingencies When legal proceedings are brought or claims are made against the Company and the outcome is uncertain, ASC 450 (Contingencies) requires the Company to determine whether it is probable that an asset has been impaired or a liability has been incurred. If such impairment or liability is probable and the amount of loss can be reasonably estimated, the loss must be charged to earnings. When it is considered probable that a loss has been incurred but the amount of loss cannot be estimated, disclosure but not accrual of the probable loss is required. Disclosure of a loss contingency is also required when it is reasonably possible, but not probable, that a loss has been incurred. Legal Expense Accrual The Company records legal expenses as they are incurred, based on invoices received or estimates provided by legal counsel. Future estimated legal expenses are not recorded until incurred. Customer Deposits Customer deposits represent amounts invoiced to customers for which the revenue has not yet been earned and therefore represent a commitment for the Company to deliver goods or services in the future. Deposits are generally short-term in nature and are recognized as revenue when earned. Fair Value Measurements Under ASC 825 (Financial Instruments), the Company is required to disclose the fair value of financial instruments for which it is practicable to estimate value. The Company’s financial instruments consist of cash, accounts receivable, accounts payable, accrued liabilities and borrowings. IEC believes that recorded value approximates fair value for all cash, accounts receivable, accounts payable, accrued liabilities and borrowings. ASC 820 (Fair Value Measurements and Disclosures) defines fair value, establishes a framework for measurement, and prescribes related disclosures. ASC 820 defines fair value as the price that would be received upon sale of an asset or would be paid to transfer a liability in an orderly transaction. Inputs used to measure fair value are categorized under the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs are observable market data. Level 3: Model-derived valuations in which one or more significant inputs are unobservable. The Company deems a transfer between levels of the fair value hierarchy to have occurred at the beginning of the reporting period. There were no such transfers during fiscal 2019 or fiscal 2018 . Stock-Based Compensation ASC 718 (Stock Compensation) requires that compensation expense be recognized for equity awards based on fair value as of the date of grant. For stock options, the Company uses the Black-Scholes pricing model to estimate grant date fair value. Costs associated with stock awards are recorded over requisite service periods, generally the vesting period. If vesting is contingent on the achievement of performance objectives, fair value is accrued over the period the objectives are expected to be achieved only if it is considered probable that the objectives will be achieved. Income Taxes and Deferred Taxes ASC 740 (Income Taxes) requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns, but not in both. Deferred tax assets are also established for tax benefits associated with tax loss and tax credit carryforwards. Such deferred tax balances reflect tax rates that are scheduled to be in effect, based on currently enacted legislation, in the years the book/tax differences reverse and tax loss and tax credit carryforwards are expected to be realized. An allowance is established for any deferred tax asset for which realization is not likely. ASC 740 also prescribes the manner in which a company measures, recognizes, presents, and discloses in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the position will be sustained following examination by taxing authorities, based on technical merits of the position. The Company believes that it has no material uncertain tax positions. Any interest incurred is reported as interest expense. Any penalties incurred are reported as tax expense. The Company’s income tax filings are subject to audit by various tax jurisdictions and current open years are for fiscal year ended September 30, 2014 through fiscal 2018. Dividends IEC does not pay dividends on its common stock as it is the Company’s current policy to retain earnings for use in the business. Furthermore, the Company’s Fifth Amended and Restated Credit Facility Agreement, as amended, with M&T Bank includes certain restrictions on paying cash dividends, as more fully described in Note 6—Credit Facilities . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and the disclosure of contingent assets and liabilities. Significant items subject to such estimates include: excess and obsolete inventory reserve, warranty reserves, the valuation of deferred income tax assets and revenue recognition related to the accounts for over time contracts. Actual results may differ from management’s estimates. Statements of Cash Flows The Company presents operating cash flows using the indirect method of reporting under which non-cash income and expense items are removed from net income. Segments The Company’s results of operations for the fiscal years ended September 30, 2019 and 2018 represent a single operating and reporting segment, referred to as contract manufacturing within the EMS industry. The Company strategically directs production between its various manufacturing facilities based on a number of considerations to best meet its customers’ requirements. The Company shares resources for sales, marketing, engineering, supply chain, information services, human resources, payroll and corporate accounting functions. Consolidated financial information is available that is evaluated regularly by the chief operating decision maker in assessing performance and allocating resources. The Company’s operations as a whole reflect the level at which the business is managed and how the Company’s chief operating decision maker assesses performance internally. Recently Issued Accounting Standards Adopted FASB Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASC 606”) was issued in May 2014 and updated the principles for recognizing revenue. This ASU superseded most of the existing revenue recognition requirements in GAAP. Under the new standard, revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services. The standard creates a five-step model that generally requires companies to use more judgment and make more estimates than under previous guidance when considering the terms of contracts along with all relevant facts and circumstances. These include the identification of customer contracts and separating performance obligations, the determination of the transaction price that potentially includes an estimate of variable consideration, allocating the transaction price to each separate performance obligation, and recognizing revenue in line with the pattern of transfer. Additionally, disclosures required for revenue recognition include qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from costs to obtain or fulfill a contract. Such disclosures are more extensive than what was required under previous GAAP. The guidance was effective for the Company beginning with the first quarter of fiscal 2019. The Company assessed the impact of the new guidance, which resulted in a change of the Company’s revenue recognition model for a portion of the Company's electronics manufacturing services from “point in time” upon physical delivery to an “over time” model. The Company implemented ASC 606 using the modified retrospective approach with the cumulative effect on accumulated deficit on adoption of $0.4 million , net of taxes recognized on October 1, 2018. The implementation of ASC 606 is more fully described in Note 2—Revenue Recognition . Recently Issued Accounting Standards Not Yet Adopted FASB ASU 2016-02, “Leases” (“ASC 842”) was issued in February 2016. This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet as right-of-use (“ROU”) assets and leases liabilities. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. The Company will adopt ASC 842 in the year ending September 30, 2020 (“fiscal 2020”) using the modified retrospective transition approach whereby prior periods will not be restated, and therefore presented in accordance with the previous lease standard (ASC 840). The Company intends to utilize the transition practical expedients that are permitted with the new standard when elected as a package, which allows the Company to not reassess the lease classification of existing leases. The Company will also elect the practical expedient to not separate lease and non-lease components from the ROU asset and lease liability as well as the practical expedient to not record leases with an initial term of 12 months or less (short-term leases) on the balance sheet. The Company is currently updating existing lease policies and developing new controls and business processes to comply with the new standard. The Company expects the ROU assets and lease liabilities to be less than 5% of total assets. During the first quarter of fiscal 2020 the Company will finalize its accounting assessment and quantification of the impact on the Company’s financial statements and corresponding disclosures. Based on work completed to date, the Company expects to recognize upon adoption an initial ROU asset and lease liability on its consolidated balance sheet of approximately $0.3 million. FASB ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” was issued in June 2016. This guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This guidance also requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. The new guidance is effective for fiscal years beginning after December 15, 2019. The FASB has proposed delaying the implementation date for smaller reporting companies to fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 2—REVENUE RECOGNITION ASC 606: Revenue from Contracts with Customers General Description of the New Guidance Effective October 1, 2018, the Company applied the modified retrospective approach for its adoption of ASC 606. The primary impact of the new standard resulted in a change in the timing of the Company’s revenue recognition for some customer contracts for the Company's custom manufacturing services to recognizing revenue over time as products are manufactured, as opposed to the prior revenue recognition of point in time. The transitional adjustment resulted in the recognition of unbilled revenue with a corresponding reduction in finished goods and work-in-process inventory (“WIP inventory”). The Company recognized the cumulative effect of initially applying the new revenue standard, totaling $0.4 million , net of tax, as an adjustment to its opening accumulated deficit balance at October 1, 2018 included in stockholders’ equity. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Satisfaction of Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Many of the Company's contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. The Company primarily provides contract manufacturing services to its customers. The customer provides a design, the Company procures materials and manufactures to that design and ships the product to the customer. Revenue is derived primarily from the manufacturing of these electronics components that are built to customer specifications. The Company's performance obligations are satisfied at a point in time or over time as work progresses. Revenue from goods and services transferred to customers at a point in time accounted for 51.2% of the Company's revenue for the fiscal year ended September 30, 2019 . Revenue on these contracts is recognized when obligations under the terms of the customer contract are satisfied; generally this occurs with the transfer of control upon shipment. If there is no enforceable right to payment for work completed to date, or the Company does not recapture costs incurred plus an applicable margin, then the Company records revenue upon shipment to the customer. Revenue from goods and services transferred to customers over time accounted for 48.8% of the Company's revenue for the fiscal year ended September 30, 2019 . For revenue recognized over time, the Company uses an input measure to determine progress towards completion. Under this method, sales and gross profit are recognized as work is performed generally based on the relationship between the actual costs incurred and the total estimated costs at completion. If the Company has an enforceable right to payment for work completed to date, with a recapture of costs incurred plus an applicable margin, and the goods do not have an alternative future use once the manufacturing process has commenced, then the Company records an unbilled contract revenue associated with non-cancellable customer orders. The Company derives revenue from engineering and design services. Service revenue is generally recognized once the service has been rendered. For material management arrangements, revenue is generally recognized as services are rendered. Under such arrangements, some or all of the following services may be provided: design, bid, procurement, testing, storage or other activities relating to materials the customer expects to incorporate into products that it manufactures. Value-added support services revenue, including material management and repair work revenue, amounted to less than 3% of total revenue in each of the fiscal years ended September 30, 2019 and September 30, 2018 . Returns and Discounts The Company does not offer its customers a right of return. Rather, the Company warrants that each unit received by the customer will meet the agreed upon technical and quality specifications and requirements. Only when the delivered units do not meet these requirements can the customer return the non-compliant units as a corrective action under the warranty. The remedy offered to the customer is repair of the returned units or replacement if repair is not viable. Accordingly, the Company records a warranty reserve and any warranty activities are not considered to be a separate performance obligation. Historically, warranty reserves have not been material. Provisions for discounts, allowances, estimated returns and other adjustments are recorded in the period the related sales are recognized. Shipping and Handling Costs Amounts billed to customers for shipping and handling activities after the customer obtains control are treated as a promised service performance obligation and recorded in net sales in the accompanying consolidated statements of operations. Shipping and handling costs incurred by the Company for the delivery of goods to customers are considered a cost to fulfill the contract and are included in cost of sales in the accompanying consolidated statements of operations. Contract Assets Contract assets consist of unbilled contract revenues resulting from sales under contracts when the revenue recognized exceeds the amount billed to the customer. Practical Expedients and Exemptions The Company generally expenses incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. These costs primarily relate to sales commissions and are recorded in selling and administrative expense in the consolidated statements of operations. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Disaggregated Revenue The table below shows net sales from contracts with customers by market sector. See additional information regarding market sectors in Note 10—Market Sectors and Major Customers . Year Ended September 30, 2019 Point in Time Over Time Net Sales (in thousands) Aerospace & Defense $ 42,625 $ 51,564 $ 94,189 Medical 18,115 16,421 34,536 Industrial 19,597 8,659 28,256 $ 80,337 $ 76,644 $ 156,981 Impact of adoption of ASC 606 The following table presents the impacted financial statement line items in the consolidated balance sheet as of October 1, 2018: Impact of adoption of ASC 606 Balances Without Adoption of ASC 606 Effect of Change As Reported (in thousands) Assets: Unbilled contract revenue $ — $ 4,333 $ 4,333 Inventories 34,126 (3,768 ) 30,358 Deferred income taxes 8,855 (124 ) 8,731 Stockholders’ Equity: Accumulated deficit (20,463 ) 441 (20,022 ) The following table presents the impacted financial statement line items in the consolidated balance sheet as of September 30, 2019 : Balances Without Adoption of ASC 606 Effect of Change As Reported (in thousands) Assets: Unbilled contract revenue $ — $ 9,529 $ 9,529 Inventories 52,279 (8,012 ) 44,267 Deferred income taxes 7,909 (302 ) 7,154 Stockholders’ Equity: Accumulated deficit (16,445 ) 1,215 (15,275 ) The following table presents the impacted financial statement line items under ASC 605 "Revenue Recognition" and ASC 606 in the consolidated statements of operations for the fiscal year ended September 30, 2019 : Year Ended September 30, 2019 Balances Effect As Reported (in thousands) Net sales $ 151,785 $ 5,196 $ 156,981 Cost of sales 131,094 4,243 135,337 Gross profit 20,691 953 21,644 Income tax expense 986 190 1,176 Net income 3,984 763 4,747 Customer Deposits Customer deposits are recorded when cash payments are received or due in advance of revenue recognition from contracts with customers. The timing of revenue recognition may differ from the timing of billings to customers. The changes in customer deposits from the Company's custom manufacturing services is as follows: Year Ended Customer Deposits September 30, 2019 (in thousands) Beginning balance - September 30, 2018 $ 7,595 Recognition of deferred revenue (10,799 ) Deferral of revenue 16,433 Ending balance - September 30, 2019 $ 13,229 Sales Outside the United States For each of the fiscal years ended September 30, 2019 and September 30, 2018 , less than 1% of net sales were shipped to locations outside the United States. |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | A summary of activity in the allowance for doubtful accounts during the period follows: Years Ended Allowance for Doubtful Accounts September 30, September 30, (in thousands) Allowance, beginning of period $ 85 $ 75 Change in provision for doubtful accounts (14 ) 10 Write-offs — — Allowance, end of period $ 71 $ 85 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | A summary of inventory by category at period end follows: Inventories September 30, September 30, (in thousands) Raw materials $ 25,393 $ 21,323 Work-in-process 15,928 11,263 Finished goods 2,946 1,540 Total inventories $ 44,267 $ 34,126 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | A summary of property, plant and equipment and accumulated depreciation at period end follows: Property, Plant and Equipment September 30, September 30, (in thousands) Land and improvements $ 788 $ 788 Buildings and improvements 7,411 7,314 Building under capital lease 7,750 7,750 Machinery and equipment 31,708 30,969 Furniture and fixtures 8,047 7,877 Software 5,215 — Construction in progress 1,173 5,360 Total property, plant and equipment, at cost 62,092 60,058 Accumulated depreciation (42,659 ) (39,948 ) Property, plant and equipment, net $ 19,433 $ 20,110 Depreciation expense during the fiscal years ended September 30, 2019 and 2018 follows: Years Ended September 30, September 30, (in thousands) Depreciation expense $ 2,775 $ 2,358 |
CREDIT FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | A summary of borrowings at period end is as follows: Fixed/ September 30, 2019 September 30, 2018 Variable Maturity Interest Interest Debt Rate Date Balance Rate Balance Rate (in thousands) M&T credit facilities: Revolving Credit Facility v 5/5/2022 $ 26,646 4.31 % $ 12,996 5.26 % Term Loan B v 5/5/2022 2,779 4.59 3,636 5.36 Equipment Line Advances v 5/6/2019 — — 314 5.56 Equipment Line Term Note v Various 1,125 4.56 794 5.56 Total debt, gross 30,550 17,740 Unamortized debt issuance costs (269 ) (289 ) Total debt, net 30,281 17,451 Less: current portion (1,371 ) (1,449 ) Long-term debt $ 28,910 $ 16,002 M&T Bank Credit Facilities Effective as of July 8, 2019 , the Company and M&T Bank entered into the Ninth Amendment to the Fifth Amended and Restated Credit Facility Agreement, which amended the Fifth Amended and Restated Credit Facility Agreement dated as of December 14, 2015 , as amended by various amendments (collectively, the “Credit Facility, as amended”). The Credit Facility, as amended, is secured by a general security agreement covering the assets of the Company and its subsidiaries, a pledge of the Company’s equity interest in its subsidiaries, a negative pledge on the Company’s real property, and a guarantee by the Company’s subsidiaries, all of which restrict use of these assets to support other financial instruments. Individual debt facilities provided under the Credit Facility, as amended, are described below: a) Revolving Credit Facility (“Revolver”) : At September 30, 2019 , up to $35.0 million is available through May 5, 2022 . The maximum amount the Company may borrow is determined based on a borrowing base calculation described below. b) Term Loan B: $14.0 million was borrowed on January 18, 2013. Principal is being repaid in 120 equal monthly installments of $117 thousand . As part of an amendment to the Credit Facility, as amended, the principal was modified from $8.0 million to $6.0 million and principal is being repaid in equal monthly installments of $71 thousand plus a balloon payment of $0.6 million . The maturity date of the loan is May 5, 2022 . c) Equipment Line Advances : Up to $1.5 million is available through May 5, 2022 . Interest only is paid until maturity. Principal is due in three or six months after borrowing or can be converted to an Equipment Line Term Loan. d) Equipment Line Term Note : $0.8 million was converted from an Equipment Line Advance on July 26, 2018 and is being repaid in 36 equal monthly installments of $21 thousand and matures July 26, 2021 . On September 27, 2018 , $0.1 million was converted from an Equipment Line Advance, principal is being repaid in 36 equal monthly installments of $2 thousand and matures September 27, 2021 . On March 18, 2019 , $0.3 million was converted from an Equipment Line Advance, principal is being repaid in 36 equal monthly installments of $9 thousand and matures March 18, 2022 . On May 6, 2019 , $0.4 million was converted from an Equipment Line Advance, principal is being repaid in 36 equal monthly installments of $11 thousand and matures May 6, 2022 . Borrowing Base At September 30, 2019 , under the Credit Facility, as amended, the maximum amount the Company can borrow under the Revolver was the lesser of (i) 85% of eligible receivables plus a percentage of eligible inventories (up to a cap of $14.0 million ) or (ii) $ 35.0 million at September 30, 2019 . At September 30, 2018 , under the Credit Facility, as amended, the maximum amount the Company could borrow under the Revolver was the lesser of (i) 85% of eligible receivables plus a percentage of eligible inventories (up to a cap of $8.0 million ) or (ii) $22.0 million . At September 30, 2019 , the upper limit on Revolver borrowings was $35.0 million , and $8.4 million was available. At September 30, 2018 , the upper limit on Revolver borrowings was $22.0 million with $9.0 million available. Average Revolver balances amounted to $21.4 million and $12.5 million during the fiscal years ended September 30, 2019 and September 30, 2018 , respectively. Interest Rates Under the Credit Facility, as amended, variable rate debt accrues interest at LIBOR plus the applicable marginal interest rate that fluctuates based on the Company’s Fixed Charge Coverage Ratio, as defined below. At September 30, 2019 , the applicable marginal interest rate was 2.25% for the Revolver and 2.50% for Term Loan B and Equipment Line Advances . At September 30, 2018 , the applicable marginal interest rate was 3.00% for the Revolver and 3.25% for Term Loan B and Equipment Line Advances. Changes to applicable margins and unused fees resulting from the Fixed Charge Coverage Ratio, as defined below, generally become effective mid-way through the subsequent quarter. The Company incurs quarterly unused commitment fees ranging from 0.250% to 0.375% of the excess of $27.0 million over average borrowings under the Revolver. Fees incurred amounted to $20 thousand and $23 thousand during the fiscal years ended September 30, 2019 and September 30, 2018 , respectively. The fee percentage varies based on the Company’s Fixed Charge Coverage Ratio, as defined below. Financial Covenants The Credit Facility, as amended, contains various affirmative and negative covenants including financial covenants. As of September 30, 2019 , the Company had to maintain a minimum fixed charge coverage ratio (“Fixed Charge Coverage Ratio”). The Fixed Charge Coverage Ratio compares (i) EBITDAS minus unfinanced capital expenditures minus income tax expense, to (ii) the sum of interest expense, principal payments, payments on all capital lease obligations and dividends, if any (fixed charges). “EBITDAS” is defined as earnings before interest, income taxes, depreciation, amortization and non-cash stock compensation expense. The Fixed Charge Coverage Ratio was measured for a trailing twelve months ended September 30, 2019 as a minimum of 1.10 times . The Fixed Charge Coverage Ratio was the only covenant in effect at September 30, 2019 . The Credit Facility, as amended, also provides for customary events of default, subject in certain cases to customary cure periods, in which the outstanding balance and any unpaid interest would become due and payable. The Company was in compliance with the financial debt covenant at September 30, 2019 . Contractual Principal Payments A summary of contractual principal payments under IEC’s borrowings at September 30, 2019 for the next three years taking into consideration the Credit Facility, as amended, is as follows: Debt Repayment Schedule Contractual (in thousands) Twelve months ending September 30, 2020 $ 1,371 2021 1,329 2022 (1) 27,850 $ 30,550 (1) Includes Revolver balance of $26.6 million at September 30, 2019 , maturing on May 5, 2022. |
WARRANTY RESERVES
WARRANTY RESERVES | 12 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY RESERVES | IEC generally warrants its products and workmanship for up to twelve months from date of sale. As an offset to warranty claims, the Company is sometimes able to obtain reimbursement from suppliers for warranty-related costs or losses. Based on historical warranty claims experience and in consideration of sales trends, a reserve is maintained for estimated future warranty costs to be incurred on products and services sold through the balance sheet date. The warranty reserve is included in other accrued expenses on the consolidated balance sheets. A summary of additions to and charges against IEC’s warranty reserves during the period follows: Years Ended Warranty Reserves September 30, September 30, (in thousands) Reserve, beginning of period $ 173 $ 153 Provision 116 266 Warranty costs (124 ) (246 ) Reserve, end of period $ 165 $ 173 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | The 2019 Stock Incentive Plan (the “2019 Plan”) was approved by the Company’s stockholders at the March 2019 Annual Meeting. The 2019 Plan replaced the 2010 Omnibus Incentive Compensation Plan (“2010 Plan”) that was approved by the Company’s stockholders at the January 2011 Annual Meeting. The 2019 Plan, like the 2010 Plan, is administered by the Compensation Committee of the Board of Directors and provides for the following types of awards: incentive stock options, nonqualified options, stock appreciation rights, restricted shares, restricted stock units, performance compensation awards, cash incentive awards, director stock and other equity-based and equity-related awards. Awards are generally granted to certain members of management and employees, as well as directors. The Company also has an employee stock purchase plan (“ESPP”), adopted in 2011, that provides for the purchase of Company common stock at a discounted stock purchase price. Under the 2019 Plan, 840,360 shares of common stock, plus any shares that are subject to awards granted under the 2010 Plan that expire, are forfeited or canceled without the issuance of shares (other than shares used to pay the exercise price of a stock option under the 2010 Plan and shares used to cover the tax withholding of the award under the 2010 Plan) may be issued over a term of ten years . Under the ESPP, 150,000 shares of common stock may be issued over a term of ten years. Stock-based compensation expense totaled $0.6 million and $0.5 million for the fiscal years ended September 30, 2019 and 2018 , respectively. At September 30, 2019 , there were 726,775 shares of common stock remaining available to be issued under the 2019 Plan and 89,701 shares of common stock remaining available to be issued under the ESPP. Expenses relating to stock options that comply with certain U.S. income tax rules are neither deductible by the Company nor taxable to the employee. Further information regarding awards granted under the 2010 Plan, 2019 Plan and ESPP is provided below. Stock Options When options are granted, IEC estimates fair value using the Black-Scholes option pricing model and recognizes the computed value as compensation cost over the vesting period, which is typically four years. The contractual term of options granted under the 2010 Plan and 2019 Plan is generally seven years. The volatility rate is based on the historical volatility of IEC’s common stock. Assumptions used in the Black-Scholes model and the estimated value of options granted during the fiscal years ended September 30, 2019 and 2018 follows: Years Ended Valuation of Options September 30, September 30, Assumptions for Black-Scholes: Risk-free interest rate 1.64 % 2.84 % Expected term in years 5.5 5.5 Volatility 37 % 33 % Expected annual dividends none none Value of options granted: Number of options granted 70,000 120,000 Weighted average fair value per share $ 2.40 $ 1.84 Fair value of options granted (000s) $ 168 $ 221 A summary of stock option activity, together with other related data, follows: Years Ended September 30, 2019 September 30, 2018 Stock Options Number Wgtd. Avg. Exercise Price Number Wgtd. Avg. Exercise Price Outstanding, beginning of period 737,145 $ 4.33 743,045 $ 4.27 Granted 70,000 6.40 120,000 5.19 Exercised (34,000 ) 4.46 (1,400 ) 4.08 Forfeited (24,250 ) 3.70 (114,000 ) 4.78 Expired (5,750 ) 4.06 (10,500 ) 5.24 Outstanding, end of period 743,145 $ 4.54 737,145 $ 4.33 For options expected to vest Number expected to vest 733,068 $ 4.52 724,398 $ 4.32 Weighted average remaining life, in years 3.5 4.0 Intrinsic value (000s) $ 1,757 $ 733 For exercisable options Number exercisable 566,145 $ 4.22 426,358 $ 4.24 Weighted average remaining life, in years 2.5 3.3 Intrinsic value (000s) $ 1,521 $ 467 For non-exercisable options Expense not yet recognized (000s) $ 329 $ 343 Weighted average years to be recognized 3.3 2.8 For options exercised Intrinsic value (000s) $ 77 $ 2 Restricted (Non-vested) Stock Certain holders of IEC restricted stock have voting and dividend rights as of the date of grant, but until vested the shares may be forfeited and cannot be sold or otherwise transferred. At the end of the vesting period, which is typically four or five years ( three years in the case of directors), holders have all the rights and privileges of any other common stockholder of the Company. The fair value of a share of restricted stock is its market value on the date of grant, and that value is recognized as stock compensation expense over the vesting period. A summary of restricted stock activity, together with related data, follows: Years Ended September 30, 2019 September 30, 2018 Restricted (Non-vested) Stock Number of Non-vested Shares Wgtd. Avg. Grant Date Fair Value Number of Non-vested Shares Wgtd. Avg. Grant Date Fair Value Outstanding, beginning of period 103,233 $ 4.08 109,695 $ 4.01 Granted 32,385 7.09 44,878 4.29 Vested (51,511 ) 4.09 (41,850 ) 4.09 Forfeited (1,400 ) 4.13 (9,490 ) 4.20 Outstanding, end of period 82,707 $ 5.25 103,233 $ 4.08 For non-vested shares Expense not yet recognized (000s) $ 328 $ 315 Weighted average remaining years for vesting 2.0 1.7 For shares vested Aggregate fair value on vesting dates (000s) $ 346 $ 187 Stock Issued to Board Members In addition to annual grants of restricted stock, included in the table above, board members may elect to have their meeting fees paid in the form of shares of the Company’s common stock. The Company has not paid any meeting fees in stock since May 21, 2013. Restricted Stock Units Holders of IEC restricted stock units do not have voting and dividend rights as of the date of grant, and, until vested, the units may be forfeited and cannot be sold or otherwise transferred. At the end of the vesting period, which is typically three years, holders will receive shares of the Company’s common stock and have all the rights and privileges of any other common stockholder of the Company. The fair value of a restricted stock unit is the market value of the underlying shares of the Company’s stock on the date of grant and that value is recognized as stock compensation expense over the vesting period. A summary of restricted stock unit activity, together with related data, follows: Years Ended September 30, 2019 September 30, 2018 Restricted Stock Units Number of Non-vested Shares Wgtd. Avg. Grant Date Fair Value Number of Non-vested Shares Wgtd. Avg. Grant Date Fair Value Outstanding, beginning of period 170,492 $ 3.96 267,999 $ 4.03 Granted 63,011 7.09 102,864 4.28 Vested (12,258 ) 4.64 — — Forfeited (68,059 ) 3.58 (200,371 ) 4.22 Outstanding, end of period 153,186 $ 5.36 170,492 $ 3.96 For non-vested shares Expense not yet recognized (000s) $ 659 $ 352 Weighted average remaining years for vesting 2.2 2.3 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Provision/(benefit) for income taxes during the fiscal years ended September 30, 2019 and 2018 follows: Years Ended Income Tax Provision September 30, 2019 September 30, 2018 (in thousands) Current tax: State $ 116 $ 6 Federal (517 ) 12 Deferred tax: State 17 (103 ) Federal 1,471 5,088 Valuation allowance 89 (13,840 ) Provision/(benefit) for income taxes $ 1,176 $ (8,837 ) Differences between the federal statutory rate and IEC’s effective tax rates for fiscal 2019 and fiscal 2018 are explained by the following reconciliation. Years Ended Taxes as Percent of Pretax Income September 30, 2019 September 30, 2018 Federal statutory rate 21.0 % 24.2 % Increase/(decrease) in valuation allowance 1.5 (880.0 ) Deferred tax adjustment 0.5 (21.2 ) Decrease in state deferred tax rate — (6.6 ) State income taxes, net of federal benefit 1.8 0.4 Rate change due to Tax Reform — 316.6 Stock-based compensation 0.3 7.3 Increase in research and development credit (5.4 ) — Non-deductible expenses 0.2 0.6 Other — (3.2 ) Income tax provision as percent of pretax income 19.9 % (561.9 )% The following table displays deferred tax assets by category: As of Deferred Tax Assets September 30, September 30, (in thousands) Deferred tax assets: Federal and state net operating loss carryforward $ 4,945 $ 6,366 Alternative minimum tax credit carryforward 517 1,031 Depreciation and fixed assets 268 306 Amortization and impairment of intangibles — 27 New York State investment tax and other credits 1,396 1,308 Inventories 476 382 Deferred gain on sale-leaseback 452 431 Research and development credit 319 — Section 481(a) adjustment (96 ) — Other 273 312 Total before allowance 8,550 10,163 Valuation allowance (1,396 ) (1,308 ) Deferred tax assets, net $ 7,154 $ 8,855 On December 22, 2017 , the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly revised the future ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates and implementing a territorial tax system. As the Company has a September 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal tax rate of approximately 24.2% for fiscal 2018, and 21% for subsequent fiscal years. The Tax Act eliminated the domestic manufacturing deduction and moved to a territorial system. In addition, previously paid federal AMT are now refundable regardless of whether there is future income tax liability before AMT credits. The Company concluded that the Tax Act has caused the Company’s U.S. deferred tax assets and liabilities to be revalued. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are revalued and any change is adjusted through the provision for income tax expense in the reporting period of the enactment. As of September 30, 2018, the Company completed its analysis of the impact of the Tax Act under Staff Accounting Bulletin No. 118. For the year ended September 30, 2018, the impact of the Tax Act resulted in the Company recording a tax expense of approximately $4.7 million due to the change in the tax rate. This was offset by a corresponding decrease to the valuation allowance of approximately $5.8 million , resulting in a net tax benefit of approximately $1.0 million from the release of the valuation allowance on the Company’s AMT credits. As of September 30, 2019 , the Company’s deferred tax assets were primarily the result of U.S. federal net operating loss carryforwards (“NOLs”) and tax credit carryforwards. A valuation allowance of $1.4 million and $1.3 million was recorded against the Company's gross deferred tax asset balance as of September 30, 2019 , and 2018 , respectively. During the year ended September 30, 2018, management evaluated both positive and negative evidence to consider the reversal of the valuation allowance on the Company's net deferred income tax assets and determined in the fourth quarter of fiscal 2018 that there was sufficient positive evidence to conclude that it is more likely than not that the Company's deferred income tax assets are realizable. As a result, in the fourth quarter of fiscal 2018 the Company recorded a $7.8 million income tax benefit to release most of the valuation allowance against the Company's net deferred income tax assets. IEC has federal NOLs for income tax purposes of approximately $23.4 million at September 30, 2019 , expiring mainly in years 2023 through 2025 and 2031 through 2035. The Company also has additional state NOLs available in several jurisdictions in which it files. New York state corporate tax reform has resulted in the reduction of the business income base rate for qualified manufacturers in New York State to 0% beginning in fiscal 2016 for IEC. At September 30, 2019 , the Company has $1.4 million of New York State investment tax and other credit carryforwards, expiring in various years through 2032. The credits cannot be utilized unless the New York state tax rate is no longer 0%, and as such, the Company has recorded a valuation allowance against the full amount of these credit carryforwards (net of the federal benefit). |
MARKET SECTORS AND MAJOR CUSTOM
MARKET SECTORS AND MAJOR CUSTOMERS | 12 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
MARKET SECTORS AND MAJOR CUSTOMERS | NOTE 10—MARKET SECTORS AND MAJOR CUSTOMERS A summary of sales, according to the market sector within which IEC’s customers operate, follows: Years Ended Percent of Sales by Sector September 30, September 30, Aerospace and Defense 60% 57% Medical 22% 23% Industrial 18% 20% 100% 100% One individual customer represented 10% or more of sales for the year ended September 30, 2019 . That one customer was in the aerospace and defense sector and totaled 23% of sales. In the prior fiscal year, two individual customers represented 10% or more of sales, one customer in the aerospace and defense sector totaled 23% , while the other customer in the medical sector totaled 11% . Two individual customers represented 10% or more of receivables and accounted for 38% of outstanding balances at September 30, 2019 . At September 30, 2018 , three individual customers represented 10% or more of receivables and accounted for 55% of such outstanding balances. Credit risk associated with individual customers is periodically evaluated by analyzing the entity’s financial condition and payment history. Customers generally are not required to post collateral. |
LITIGATION
LITIGATION | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | Litigation From time to time, the Company may be involved in legal actions in the ordinary course of its business, but management does not believe that any such proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s consolidated financial statements. |
CAPITAL LEASE (Notes)
CAPITAL LEASE (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Capital Lease | NOTE 12—CAPITAL LEASES During the fiscal year ended September 30, 2017 and fiscal 2018, the Company completed sale-leaseback transactions associated with its manufacturing facilities in Albuquerque, New Mexico and Rochester, New York, respectively. The transactions resulted in a combined deferred gain of $1.8 million , which is recorded in other long-term liabilities in the consolidated balance sheets, and is being deferred over the initial lease terms of 15 years. As of September 30, 2019 and 2018 , the deferred gain balance was $1.5 million and $1.6 million , respectively. A summary of capital lease payments for the two properties for the next five years is as follows: Capital Lease Payment Schedule Contractual (in thousands) Twelve months ending September 30, 2020 $ 673 2021 686 2022 700 2023 714 2024 and thereafter 6,720 Total capital lease payments 9,493 Less: amounts representing interest (2,470 ) Present value of minimum lease payment $ 7,023 On December 10, 2018 , the Company, entered into a Lease (the “Lease”), with 1000 Silver Hill LV LLC, a New York limited liability company (the “Landlord”), for certain property located in Newark, New York, that will include the Company's new state-of-the art manufacturing facility and administrative offices having approximately 150,000 square feet (the “Property”). Pursuant to the Lease, the Company is leasing the Property for an initial term of 15 years with one renewal option of 10 years . The lease will not commence until the Company takes control of the building, which is anticipated to be during fiscal 2020. |
Earnings (Loss) Per Share (Note
Earnings (Loss) Per Share (Notes) | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Years Ended September 30, September 30, Anti-dilutive shares excluded 61,475 32,788 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | The accompanying unaudited financial information for the three month periods specified below have been prepared in accordance with GAAP for interim financial information. In the opinion of management, all adjustments required for a fair presentation of the information have been made. Note that quarterly amounts are rounded separately and as a result the sum of the quarterly amounts may not equal the computed amount for the full year. Net Sales Gross Profit Net Income/(Loss) Basic Earnings/ (Loss) Per Share Diluted Earnings/ (Loss) Per Share (Unaudited; in thousands, except per share data) Fiscal Quarters Fourth 2019 $ 43,922 $ 6,394 $ 1,794 $ 0.17 $ 0.17 Third 2019 40,324 5,605 1,211 0.12 0.11 Second 2019 37,294 4,586 670 0.06 0.06 First 2019 35,441 5,059 1,072 0.10 0.10 Fourth 2018 $ 34,216 $ 4,496 $ 9,121 (a) $ 0.89 $ 0.87 Third 2018 29,782 3,359 204 0.02 0.02 Second 2018 31,768 4,784 1,579 0.15 0.15 First 2018 21,156 1,518 (494 ) (0.05 ) (0.05 ) (a) Fourth quarter 2018 was impacted by a $7.8 million income tax benefit recorded to release the majority of the valuation allowance against the net deferred income tax assets. |
OUR BUSINESS AND SUMMARY OF S_2
OUR BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Generally Accepted Accounting Principles | Generally Accepted Accounting Principles IEC’s financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). |
Fiscal Calendar | Fiscal Calendar The Company’s fiscal year ends on September 30th and the first three quarters generally end on the Friday closest to the last day of the calendar quarter. For the fiscal year ended September 30, 2019 (“fiscal 2019 ”), the fiscal quarters ended on December 28, 2018 , March 29, 2019 and June 28, 2019 . For the fiscal year ended September 30, 2018 (“fiscal 2018 ”), the fiscal quarters ended on December 29, 2017 , March 30, 2018 and June 29, 2018 . |
Consolidation | Consolidation |
Cash and Cash Equivalents | Cash |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company establishes an allowance for doubtful accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability. Accounts are written off after all reasonable collection efforts have been exhausted and management concludes that the likelihood of collection is remote. |
Inventory Valuation | Inventory Valuation Inventories are stated at the lower of cost or net realizable value under the first-in, first-out method. The Company regularly assesses slow-moving, excess and obsolete inventory and maintains balance sheet reserves in amounts required to reduce the recorded value of inventory to the lower of cost or net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment (“PP&E”) are stated at cost and are depreciated over various estimated useful lives using the straight-line method. Maintenance and repairs are charged to expense as incurred, while renewals and improvements are capitalized. At the time of retirement or other disposition of PP&E, cost and accumulated depreciation are removed from the accounts and any gain or loss is recorded in earnings. Depreciable lives generally used for PP&E are presented in the table below. Leasehold improvements are amortized over the shorter of the lease term or estimated useful life of the improvement. PP&E Lives Estimated (years) Land improvements 10 Buildings and improvements 5 to 40 Machinery and equipment 3 to 7 Furniture and fixtures 3 to 7 Software 3 to 10 |
Reviewing Long-Lived Assets for Potential Impairment | Reviewing Long-Lived Assets for Potential Impairment |
Legal Contingencies | Legal Contingencies When legal proceedings are brought or claims are made against the Company and the outcome is uncertain, ASC 450 (Contingencies) requires the Company to determine whether it is probable that an asset has been impaired or a liability has been incurred. If such impairment or liability is probable and the amount of loss can be reasonably estimated, the loss must be charged to earnings. When it is considered probable that a loss has been incurred but the amount of loss cannot be estimated, disclosure but not accrual of the probable loss is required. Disclosure of a loss contingency is also required when it is reasonably possible, but not probable, that a loss has been incurred. |
Customer Deposits | Customer Deposits Customer deposits represent amounts invoiced to customers for which the revenue has not yet been earned and therefore represent a commitment for the Company to deliver goods or services in the future. Deposits are generally short-term in nature and are recognized as revenue when earned. |
Fair Value Measurements | Fair Value Measurements Under ASC 825 (Financial Instruments), the Company is required to disclose the fair value of financial instruments for which it is practicable to estimate value. The Company’s financial instruments consist of cash, accounts receivable, accounts payable, accrued liabilities and borrowings. IEC believes that recorded value approximates fair value for all cash, accounts receivable, accounts payable, accrued liabilities and borrowings. ASC 820 (Fair Value Measurements and Disclosures) defines fair value, establishes a framework for measurement, and prescribes related disclosures. ASC 820 defines fair value as the price that would be received upon sale of an asset or would be paid to transfer a liability in an orderly transaction. Inputs used to measure fair value are categorized under the following hierarchy: Level 1: Quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs are observable market data. Level 3: Model-derived valuations in which one or more significant inputs are unobservable. The Company deems a transfer between levels of the fair value hierarchy to have occurred at the beginning of the reporting period. |
Revenue Recognition | General Description of the New Guidance Effective October 1, 2018, the Company applied the modified retrospective approach for its adoption of ASC 606. The primary impact of the new standard resulted in a change in the timing of the Company’s revenue recognition for some customer contracts for the Company's custom manufacturing services to recognizing revenue over time as products are manufactured, as opposed to the prior revenue recognition of point in time. The transitional adjustment resulted in the recognition of unbilled revenue with a corresponding reduction in finished goods and work-in-process inventory (“WIP inventory”). The Company recognized the cumulative effect of initially applying the new revenue standard, totaling $0.4 million , net of tax, as an adjustment to its opening accumulated deficit balance at October 1, 2018 included in stockholders’ equity. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Satisfaction of Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Many of the Company's contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. The Company primarily provides contract manufacturing services to its customers. The customer provides a design, the Company procures materials and manufactures to that design and ships the product to the customer. Revenue is derived primarily from the manufacturing of these electronics components that are built to customer specifications. The Company's performance obligations are satisfied at a point in time or over time as work progresses. Revenue from goods and services transferred to customers at a point in time accounted for 51.2% of the Company's revenue for the fiscal year ended September 30, 2019 . Revenue on these contracts is recognized when obligations under the terms of the customer contract are satisfied; generally this occurs with the transfer of control upon shipment. If there is no enforceable right to payment for work completed to date, or the Company does not recapture costs incurred plus an applicable margin, then the Company records revenue upon shipment to the customer. Revenue from goods and services transferred to customers over time accounted for 48.8% of the Company's revenue for the fiscal year ended September 30, 2019 . For revenue recognized over time, the Company uses an input measure to determine progress towards completion. Under this method, sales and gross profit are recognized as work is performed generally based on the relationship between the actual costs incurred and the total estimated costs at completion. If the Company has an enforceable right to payment for work completed to date, with a recapture of costs incurred plus an applicable margin, and the goods do not have an alternative future use once the manufacturing process has commenced, then the Company records an unbilled contract revenue associated with non-cancellable customer orders. The Company derives revenue from engineering and design services. Service revenue is generally recognized once the service has been rendered. For material management arrangements, revenue is generally recognized as services are rendered. Under such arrangements, some or all of the following services may be provided: design, bid, procurement, testing, storage or other activities relating to materials the customer expects to incorporate into products that it manufactures. Value-added support services revenue, including material management and repair work revenue, amounted to less than 3% of total revenue in each of the fiscal years ended September 30, 2019 and September 30, 2018 . Returns and Discounts The Company does not offer its customers a right of return. Rather, the Company warrants that each unit received by the customer will meet the agreed upon technical and quality specifications and requirements. Only when the delivered units do not meet these requirements can the customer return the non-compliant units as a corrective action under the warranty. The remedy offered to the customer is repair of the returned units or replacement if repair is not viable. Accordingly, the Company records a warranty reserve and any warranty activities are not considered to be a separate performance obligation. Historically, warranty reserves have not been material. Provisions for discounts, allowances, estimated returns and other adjustments are recorded in the period the related sales are recognized. Shipping and Handling Costs Amounts billed to customers for shipping and handling activities after the customer obtains control are treated as a promised service performance obligation and recorded in net sales in the accompanying consolidated statements of operations. Shipping and handling costs incurred by the Company for the delivery of goods to customers are considered a cost to fulfill the contract and are included in cost of sales in the accompanying consolidated statements of operations. Contract Assets Contract assets consist of unbilled contract revenues resulting from sales under contracts when the revenue recognized exceeds the amount billed to the customer. Practical Expedients and Exemptions The Company generally expenses incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. These costs primarily relate to sales commissions and are recorded in selling and administrative expense in the consolidated statements of operations. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Stock-Based Compensation | Stock-Based Compensation ASC 718 (Stock Compensation) requires that compensation expense be recognized for equity awards based on fair value as of the date of grant. For stock options, the Company uses the Black-Scholes pricing model to estimate grant date fair value. Costs associated with stock awards are recorded over requisite service periods, generally the vesting period. If vesting is contingent on the achievement of performance objectives, fair value is accrued over the period the objectives are expected to be achieved only if it is considered probable that the objectives will be achieved. |
Legal Expense Accrual | Legal Expense Accrual The Company records legal expenses as they are incurred, based on invoices received or estimates provided by legal counsel. Future estimated legal expenses are not recorded until incurred. |
Income Taxes and Deferred Taxes | Income Taxes and Deferred Taxes ASC 740 (Income Taxes) requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns, but not in both. Deferred tax assets are also established for tax benefits associated with tax loss and tax credit carryforwards. Such deferred tax balances reflect tax rates that are scheduled to be in effect, based on currently enacted legislation, in the years the book/tax differences reverse and tax loss and tax credit carryforwards are expected to be realized. An allowance is established for any deferred tax asset for which realization is not likely. ASC 740 also prescribes the manner in which a company measures, recognizes, presents, and discloses in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the position will be sustained following examination by taxing authorities, based on technical merits of the position. The Company believes that it has no material uncertain tax positions. Any interest incurred is reported as interest expense. Any penalties incurred are reported as tax expense. The Company’s income tax filings are subject to audit by various tax jurisdictions and current open years are for fiscal year ended September 30, 2014 through fiscal 2018. |
Earnings Per Share | |
Dividends | Dividends IEC does not pay dividends on its common stock as it is the Company’s current policy to retain earnings for use in the business. Furthermore, the Company’s Fifth Amended and Restated Credit Facility Agreement, as amended, with M&T Bank includes certain restrictions on paying cash dividends, as more fully described in Note 6—Credit Facilities . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and the disclosure of contingent assets and liabilities. Significant items subject to such estimates include: excess and obsolete inventory reserve, warranty reserves, the valuation of deferred income tax assets and revenue recognition related to the accounts for over time contracts. Actual results may differ from management’s estimates. |
Statements of Cash Flows | tatements of Cash Flows The Company presents operating cash flows using the indirect method of reporting under which non-cash income and expense items are removed from net income. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Not Yet Adopted FASB ASU 2016-02, “Leases” (“ASC 842”) was issued in February 2016. This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet as right-of-use (“ROU”) assets and leases liabilities. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. The Company will adopt ASC 842 in the year ending September 30, 2020 (“fiscal 2020”) using the modified retrospective transition approach whereby prior periods will not be restated, and therefore presented in accordance with the previous lease standard (ASC 840). The Company intends to utilize the transition practical expedients that are permitted with the new standard when elected as a package, which allows the Company to not reassess the lease classification of existing leases. The Company will also elect the practical expedient to not separate lease and non-lease components from the ROU asset and lease liability as well as the practical expedient to not record leases with an initial term of 12 months or less (short-term leases) on the balance sheet. The Company is currently updating existing lease policies and developing new controls and business processes to comply with the new standard. The Company expects the ROU assets and lease liabilities to be less than 5% of total assets. During the first quarter of fiscal 2020 the Company will finalize its accounting assessment and quantification of the impact on the Company’s financial statements and corresponding disclosures. Based on work completed to date, the Company expects to recognize upon adoption an initial ROU asset and lease liability on its consolidated balance sheet of approximately $0.3 million. FASB ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” was issued in June 2016. This guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This guidance also requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. The new guidance is effective for fiscal years beginning after December 15, 2019. The FASB has proposed delaying the implementation date for smaller reporting companies to fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. |
Earnings (Loss) Per Share (Poli
Earnings (Loss) Per Share (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] |
OUR BUSINESS AND SUMMARY OF S_3
OUR BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Depreciable lives generally used for PP&E are presented in the table below. Leasehold improvements are amortized over the shorter of the lease term or estimated useful life of the improvement. PP&E Lives Estimated (years) Land improvements 10 Buildings and improvements 5 to 40 Machinery and equipment 3 to 7 Furniture and fixtures 3 to 7 Software 3 to 10 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below shows net sales from contracts with customers by market sector. See additional information regarding market sectors in Note 10—Market Sectors and Major Customers . Year Ended September 30, 2019 Point in Time Over Time Net Sales (in thousands) Aerospace & Defense $ 42,625 $ 51,564 $ 94,189 Medical 18,115 16,421 34,536 Industrial 19,597 8,659 28,256 $ 80,337 $ 76,644 $ 156,981 |
Schedule of Impact of New Accounting Pronouncements | The following table presents the impacted financial statement line items in the consolidated balance sheet as of October 1, 2018: Impact of adoption of ASC 606 Balances Without Adoption of ASC 606 Effect of Change As Reported (in thousands) Assets: Unbilled contract revenue $ — $ 4,333 $ 4,333 Inventories 34,126 (3,768 ) 30,358 Deferred income taxes 8,855 (124 ) 8,731 Stockholders’ Equity: Accumulated deficit (20,463 ) 441 (20,022 ) The following table presents the impacted financial statement line items in the consolidated balance sheet as of September 30, 2019 : Balances Without Adoption of ASC 606 Effect of Change As Reported (in thousands) Assets: Unbilled contract revenue $ — $ 9,529 $ 9,529 Inventories 52,279 (8,012 ) 44,267 Deferred income taxes 7,909 (302 ) 7,154 Stockholders’ Equity: Accumulated deficit (16,445 ) 1,215 (15,275 ) The following table presents the impacted financial statement line items under ASC 605 "Revenue Recognition" and ASC 606 in the consolidated statements of operations for the fiscal year ended September 30, 2019 : Year Ended September 30, 2019 Balances Effect As Reported (in thousands) Net sales $ 151,785 $ 5,196 $ 156,981 Cost of sales 131,094 4,243 135,337 Gross profit 20,691 953 21,644 Income tax expense 986 190 1,176 Net income 3,984 763 4,747 |
Schedule of Customer Material Deposits | The changes in customer deposits from the Company's custom manufacturing services is as follows: Year Ended Customer Deposits September 30, 2019 (in thousands) Beginning balance - September 30, 2018 $ 7,595 Recognition of deferred revenue (10,799 ) Deferral of revenue 16,433 Ending balance - September 30, 2019 $ 13,229 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Allowance for Credit Losses on Financing Receivables | A summary of activity in the allowance for doubtful accounts during the period follows: Years Ended Allowance for Doubtful Accounts September 30, September 30, (in thousands) Allowance, beginning of period $ 85 $ 75 Change in provision for doubtful accounts (14 ) 10 Write-offs — — Allowance, end of period $ 71 $ 85 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | A summary of inventory by category at period end follows: Inventories September 30, September 30, (in thousands) Raw materials $ 25,393 $ 21,323 Work-in-process 15,928 11,263 Finished goods 2,946 1,540 Total inventories $ 44,267 $ 34,126 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets Schedule And Accumulated Depreciation Disclosure | A summary of property, plant and equipment and accumulated depreciation at period end follows: Property, Plant and Equipment September 30, September 30, (in thousands) Land and improvements $ 788 $ 788 Buildings and improvements 7,411 7,314 Building under capital lease 7,750 7,750 Machinery and equipment 31,708 30,969 Furniture and fixtures 8,047 7,877 Software 5,215 — Construction in progress 1,173 5,360 Total property, plant and equipment, at cost 62,092 60,058 Accumulated depreciation (42,659 ) (39,948 ) Property, plant and equipment, net $ 19,433 $ 20,110 Depreciation expense during the fiscal years ended September 30, 2019 and 2018 follows: Years Ended September 30, September 30, (in thousands) Depreciation expense $ 2,775 $ 2,358 |
CREDIT FACILITIES (Tables)
CREDIT FACILITIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of borrowings at period end is as follows: Fixed/ September 30, 2019 September 30, 2018 Variable Maturity Interest Interest Debt Rate Date Balance Rate Balance Rate (in thousands) M&T credit facilities: Revolving Credit Facility v 5/5/2022 $ 26,646 4.31 % $ 12,996 5.26 % Term Loan B v 5/5/2022 2,779 4.59 3,636 5.36 Equipment Line Advances v 5/6/2019 — — 314 5.56 Equipment Line Term Note v Various 1,125 4.56 794 5.56 Total debt, gross 30,550 17,740 Unamortized debt issuance costs (269 ) (289 ) Total debt, net 30,281 17,451 Less: current portion (1,371 ) (1,449 ) Long-term debt $ 28,910 $ 16,002 |
Schedule of Debt Covenant | |
Schedule of Maturities of Long-term Debt | A summary of contractual principal payments under IEC’s borrowings at September 30, 2019 for the next three years taking into consideration the Credit Facility, as amended, is as follows: Debt Repayment Schedule Contractual (in thousands) Twelve months ending September 30, 2020 $ 1,371 2021 1,329 2022 (1) 27,850 $ 30,550 (1) Includes Revolver balance of $26.6 million at September 30, 2019 , maturing on May 5, 2022. |
WARRANTY RESERVES (Tables)
WARRANTY RESERVES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | Years Ended Warranty Reserves September 30, September 30, (in thousands) Reserve, beginning of period $ 173 $ 153 Provision 116 266 Warranty costs (124 ) (246 ) Reserve, end of period $ 165 $ 173 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Assumptions used in the Black-Scholes model and the estimated value of options granted during the fiscal years ended September 30, 2019 and 2018 follows: Years Ended Valuation of Options September 30, September 30, Assumptions for Black-Scholes: Risk-free interest rate 1.64 % 2.84 % Expected term in years 5.5 5.5 Volatility 37 % 33 % Expected annual dividends none none Value of options granted: Number of options granted 70,000 120,000 Weighted average fair value per share $ 2.40 $ 1.84 Fair value of options granted (000s) $ 168 $ 221 |
Changes in Number of Options Outstanding with Other Related Data | A summary of stock option activity, together with other related data, follows: Years Ended September 30, 2019 September 30, 2018 Stock Options Number Wgtd. Avg. Exercise Price Number Wgtd. Avg. Exercise Price Outstanding, beginning of period 737,145 $ 4.33 743,045 $ 4.27 Granted 70,000 6.40 120,000 5.19 Exercised (34,000 ) 4.46 (1,400 ) 4.08 Forfeited (24,250 ) 3.70 (114,000 ) 4.78 Expired (5,750 ) 4.06 (10,500 ) 5.24 Outstanding, end of period 743,145 $ 4.54 737,145 $ 4.33 For options expected to vest Number expected to vest 733,068 $ 4.52 724,398 $ 4.32 Weighted average remaining life, in years 3.5 4.0 Intrinsic value (000s) $ 1,757 $ 733 For exercisable options Number exercisable 566,145 $ 4.22 426,358 $ 4.24 Weighted average remaining life, in years 2.5 3.3 Intrinsic value (000s) $ 1,521 $ 467 For non-exercisable options Expense not yet recognized (000s) $ 329 $ 343 Weighted average years to be recognized 3.3 2.8 For options exercised Intrinsic value (000s) $ 77 $ 2 |
Changes in Number of Restricted Non-vested Stock Outstanding with Other Related Data | A summary of restricted stock activity, together with related data, follows: Years Ended September 30, 2019 September 30, 2018 Restricted (Non-vested) Stock Number of Non-vested Shares Wgtd. Avg. Grant Date Fair Value Number of Non-vested Shares Wgtd. Avg. Grant Date Fair Value Outstanding, beginning of period 103,233 $ 4.08 109,695 $ 4.01 Granted 32,385 7.09 44,878 4.29 Vested (51,511 ) 4.09 (41,850 ) 4.09 Forfeited (1,400 ) 4.13 (9,490 ) 4.20 Outstanding, end of period 82,707 $ 5.25 103,233 $ 4.08 For non-vested shares Expense not yet recognized (000s) $ 328 $ 315 Weighted average remaining years for vesting 2.0 1.7 For shares vested Aggregate fair value on vesting dates (000s) $ 346 $ 187 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | for income taxes during the fiscal years ended September 30, 2019 and 2018 follows: Years Ended Income Tax Provision September 30, 2019 September 30, 2018 (in thousands) Current tax: State $ 116 $ 6 Federal (517 ) 12 Deferred tax: State 17 (103 ) Federal 1,471 5,088 Valuation allowance 89 (13,840 ) Provision/(benefit) for income taxes $ 1,176 $ (8,837 ) |
Schedule of Effective Income Tax Rate Reconciliation | Differences between the federal statutory rate and IEC’s effective tax rates for fiscal 2019 and fiscal 2018 are explained by the following reconciliation. Years Ended Taxes as Percent of Pretax Income September 30, 2019 September 30, 2018 Federal statutory rate 21.0 % 24.2 % Increase/(decrease) in valuation allowance 1.5 (880.0 ) Deferred tax adjustment 0.5 (21.2 ) Decrease in state deferred tax rate — (6.6 ) State income taxes, net of federal benefit 1.8 0.4 Rate change due to Tax Reform — 316.6 Stock-based compensation 0.3 7.3 Increase in research and development credit (5.4 ) — Non-deductible expenses 0.2 0.6 Other — (3.2 ) Income tax provision as percent of pretax income 19.9 % (561.9 )% |
Schedule of Deferred Tax Assets by Category | The following table displays deferred tax assets by category: As of Deferred Tax Assets September 30, September 30, (in thousands) Deferred tax assets: Federal and state net operating loss carryforward $ 4,945 $ 6,366 Alternative minimum tax credit carryforward 517 1,031 Depreciation and fixed assets 268 306 Amortization and impairment of intangibles — 27 New York State investment tax and other credits 1,396 1,308 Inventories 476 382 Deferred gain on sale-leaseback 452 431 Research and development credit 319 — Section 481(a) adjustment (96 ) — Other 273 312 Total before allowance 8,550 10,163 Valuation allowance (1,396 ) (1,308 ) Deferred tax assets, net $ 7,154 $ 8,855 |
MARKET SECTORS AND MAJOR CUST_2
MARKET SECTORS AND MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | A summary of sales, according to the market sector within which IEC’s customers operate, follows: Years Ended Percent of Sales by Sector September 30, September 30, Aerospace and Defense 60% 57% Medical 22% 23% Industrial 18% 20% 100% 100% |
CAPITAL LEASE (Tables)
CAPITAL LEASE (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | A summary of capital lease payments for the two properties for the next five years is as follows: Capital Lease Payment Schedule Contractual (in thousands) Twelve months ending September 30, 2020 $ 673 2021 686 2022 700 2023 714 2024 and thereafter 6,720 Total capital lease payments 9,493 Less: amounts representing interest (2,470 ) Present value of minimum lease payment $ 7,023 On December 10, 2018 , the Company, entered into a Lease (the “Lease”), with 1000 Silver Hill LV LLC, a New York limited liability company (the “Landlord”), for certain property located in Newark, New York, that will include the Company's new state-of-the art manufacturing facility and administrative offices having approximately 150,000 square feet (the “Property”). Pursuant to the Lease, the Company is leasing the Property for an initial term of 15 years with one renewal option of 10 years . The lease will not commence until the Company takes control of the building, which is anticipated to be during fiscal 2020. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Years Ended Net Income Per Share September 30, September 30, Basic net income per share: Net income $ 4,747 $ 10,410 Less: Income attributable to non-vested shares 38 104 Net income available to common stockholders $ 4,709 $ 10,306 Weighted average common shares outstanding 10,306,947 10,228,596 Basic net income per share $ 0.46 $ 1.01 Diluted net income per share: Net income $ 4,747 $ 10,410 Shares used in computing basic net income per share 10,306,947 10,228,596 Dilutive effect of non-vested shares and options 211,179 91,607 Shares used in computing diluted net income per share 10,518,126 10,320,203 Diluted net income per share $ 0.45 $ 1.01 The diluted weighted average share calculations do not include the following securities, which are not dilutive to the net income per share calculations. Years Ended September 30, September 30, Anti-dilutive shares excluded 61,475 32,788 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Net Sales Gross Profit Net Income/(Loss) Basic Earnings/ (Loss) Per Share Diluted Earnings/ (Loss) Per Share (Unaudited; in thousands, except per share data) Fiscal Quarters Fourth 2019 $ 43,922 $ 6,394 $ 1,794 $ 0.17 $ 0.17 Third 2019 40,324 5,605 1,211 0.12 0.11 Second 2019 37,294 4,586 670 0.06 0.06 First 2019 35,441 5,059 1,072 0.10 0.10 Fourth 2018 $ 34,216 $ 4,496 $ 9,121 (a) $ 0.89 $ 0.87 Third 2018 29,782 3,359 204 0.02 0.02 Second 2018 31,768 4,784 1,579 0.15 0.15 First 2018 21,156 1,518 (494 ) (0.05 ) (0.05 ) |
OUR BUSINESS AND SUMMARY OF S_4
OUR BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Land improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 10 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 5 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 7 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Lives | 7 years |
OUR BUSINESS AND SUMMARY OF S_5
OUR BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 12 Months Ended | |
Sep. 30, 2019USD ($)criteria | Sep. 30, 2018 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Impairment charges | $ | $ 0 | |
Capital leases, number of key criteria | criteria | 4 | |
Capital lease criteria, lease term to economic life, ratio | 75.00% | |
Capital lease criteria, minimum lease payments to fair value, ratio | 90.00% | |
Material Management | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Maximum percentage of total revenue | 5.00% |
OUR BUSINESS AND SUMMARY OF S_6
OUR BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details) - shares | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Weighted Average Number of Shares Outstanding, Basic | 10,306,947 | 10,228,596 |
Diluted shares | 10,518,126 | 10,320,203 |
Anti-dilutive shares excluded | 61,475 | 32,788 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Oct. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Impact of adoption of ASC 606, net of taxes | $ 441 | |
Accumulated Deficit | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Impact of adoption of ASC 606, net of taxes | 441 | |
Revenue from Contract with Customer | Transferred at Point in Time | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Percentage of sales by sector (percent) | 51.20% | |
Revenue from Contract with Customer | Transferred over Time | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Percentage of sales by sector (percent) | 48.80% | |
Value-added Support Services | Revenue from Contract with Customer | Transferred over Time | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Percentage of sales by sector (percent) | 3.00% | |
Effect of Change | Accumulated Deficit | ASC 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Impact of adoption of ASC 606, net of taxes | $ 0 |
REVENUE RECOGNITION - DISAGGREG
REVENUE RECOGNITION - DISAGGREGATED REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 156,981 | $ 116,922 |
Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 76,644 | |
Transferred at Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 80,337 | |
Aerospace and Defense | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 94,189 | |
Aerospace and Defense | Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 51,564 | |
Aerospace and Defense | Transferred at Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 42,625 | |
Medical | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 34,536 | |
Medical | Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 16,421 | |
Medical | Transferred at Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 18,115 | |
Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 28,256 | |
Industrial | Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8,659 | |
Industrial | Transferred at Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 19,597 |
REVENUE RECOGNITION - CUSTOMER
REVENUE RECOGNITION - CUSTOMER MATERIAL DEPOSITS (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Beginning balance - September 30, 2018 | $ 7,595 |
Recognition of deferred revenue | (10,799) |
Deferral of revenue | 16,433 |
Ending balance - September 30, 2019 | $ 13,229 |
REVENUE RECOGNITION - IMPACT OF
REVENUE RECOGNITION - IMPACT OF ADOPTION OF ASC 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 30, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Unbilled contract revenue | $ 9,529 | $ 9,529 | $ 4,333 | ||||||||
Inventories | 44,267 | $ 34,126 | 44,267 | $ 34,126 | 30,358 | ||||||
Deferred income taxes | 7,154 | 8,855 | 7,154 | 8,855 | 8,731 | ||||||
Accumulated deficit | (15,275) | (20,463) | (15,275) | (20,463) | (20,022) | ||||||
Net sales | 156,981 | 116,922 | |||||||||
Cost of sales | 135,337 | 102,765 | |||||||||
Gross Profit | 6,394 | $ 5,605 | $ 4,586 | $ 5,059 | 4,496 | $ 3,359 | $ 4,784 | $ 1,518 | 21,644 | 14,157 | |
Provision/(benefit) for income taxes | (7,800) | 1,176 | (8,837) | ||||||||
Net income | 1,794 | $ 1,211 | $ 670 | $ 1,072 | $ 9,121 | $ 204 | $ 1,579 | $ (494) | 4,747 | 10,410 | |
Accumulated Deficit | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net income | 4,747 | $ 10,410 | |||||||||
Balances Without Adoption of ASC 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Unbilled contract revenue | 0 | 0 | |||||||||
Inventories | 52,279 | 52,279 | 34,126 | ||||||||
Deferred income taxes | 7,909 | 7,909 | 8,855 | ||||||||
Accumulated deficit | (16,445) | (16,445) | (20,463) | ||||||||
Net sales | 151,785 | ||||||||||
Cost of sales | 131,094 | ||||||||||
Gross Profit | 20,691 | ||||||||||
Provision/(benefit) for income taxes | 986 | ||||||||||
Balances Without Adoption of ASC 606 | Accumulated Deficit | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net income | 3,984 | ||||||||||
Effect of Change | ASC 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Unbilled contract revenue | 9,529 | 9,529 | 4,333 | ||||||||
Inventories | (8,012) | (8,012) | (3,768) | ||||||||
Deferred income taxes | (302) | (302) | (124) | ||||||||
Accumulated deficit | $ 1,215 | 1,215 | $ 441 | ||||||||
Net sales | 5,196 | ||||||||||
Cost of sales | 4,243 | ||||||||||
Gross Profit | 953 | ||||||||||
Provision/(benefit) for income taxes | 190 | ||||||||||
Effect of Change | Accumulated Deficit | ASC 606 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net income | $ 763 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Doubtful Accounts | ||
Allowance, beginning of period | $ 85 | $ 75 |
Change in provision for doubtful accounts | (14) | 10 |
Write-offs | 0 | 0 |
Allowance, end of period | $ 71 | $ 85 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Inventory Disclosure [Abstract] | |||
Inventory, Raw Materials, Net of Reserves | $ 25,393 | $ 21,323 | |
Work-in-process | 15,928 | 11,263 | |
Finished goods | 2,946 | 1,540 | |
Inventory, Net | $ 44,267 | $ 30,358 | $ 34,126 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 788 | $ 788 |
Buildings and improvements | 7,411 | 7,314 |
Building under capital lease | 7,750 | 7,750 |
Machinery and equipment | 31,708 | 30,969 |
Furniture and fixtures | 8,047 | 7,877 |
Software | 5,215 | 0 |
Construction in progress | 1,173 | 5,360 |
Total property, plant and equipment, at cost | 62,092 | 60,058 |
Accumulated depreciation | (42,659) | (39,948) |
Property, plant and equipment, net | $ 19,433 | $ 20,110 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Depreciation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,775 | $ 2,358 |
CREDIT FACILITIES - Schedule of
CREDIT FACILITIES - Schedule of Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Long-term Debt, Gross | $ 30,550 | $ 17,740 |
Unamortized debt issuance costs | (269) | (289) |
Total debt, net | 30,281 | 17,451 |
Less: current portion | (1,371) | (1,449) |
Long-term debt | $ 28,910 | $ 16,002 |
Term Loan A | ||
Interest rate terms | Fixed Interest Rate | |
Term Loan B | ||
Date | May 5, 2022 | |
Interest Rate | 4.589% | 5.36% |
Long-term Debt, Gross | $ 2,779 | $ 3,636 |
Interest rate terms | Variable Interest Rate | |
Equipment Line Advances [Member] | ||
Date | May 6, 2019 | |
Interest Rate | 0.00% | 5.56% |
Total debt, net | $ 0 | $ 314 |
Equipment Line Advances Term Note [Member] | ||
Interest Rate | 4.5625% | 5.56% |
Total debt, net | $ 1,125 | $ 794 |
Revolving Credit Facility | ||
Date | May 5, 2022 | |
Interest Rate | 4.3125% | 5.26% |
Long-term Debt, Gross | $ 26,646 | $ 12,996 |
Total debt, net | $ 26,600 | |
Interest rate terms | Variable Interest Rate |
CREDIT FACILITIES - Narrative (
CREDIT FACILITIES - Narrative (Details) - USD ($) | Jul. 08, 2019 | May 06, 2019 | Mar. 18, 2019 | Sep. 27, 2018 | Jan. 31, 2013 | Sep. 30, 2019 | Sep. 30, 2018 | Jul. 07, 2019 | Jul. 26, 2018 | Jan. 18, 2013 |
Debt Instrument [Line Items] | ||||||||||
Available borrowing capacity | $ 8,400,000 | $ 9,000,000 | ||||||||
Long-term debt | $ 30,281,000 | $ 17,451,000 | ||||||||
Credit Agreement 2013 | Term Loan B | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 6,000,000 | $ 8,000,000 | $ 14,000,000 | |||||||
Repayment monthly installments | 120 equal monthly installments | |||||||||
Line of credit facility, periodic payment, principal | 71,000 | $ 117,000 | ||||||||
Interest rate, effective percentage | 2.50% | 3.25% | ||||||||
Balloon payment | 600,000 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 35,000,000 | $ 22,000,000 | ||||||||
Maturity date | May 5, 2022 | |||||||||
Maximum borrowing capacity as percent of eligible receivables | 85.00% | |||||||||
Maximum borrowing capacity based on eligible inventory | $ 14,000,000 | 8,000,000 | ||||||||
Current borrowing capacity | 35,000,000 | 22,000,000 | ||||||||
Average borrowing capacity | 21,400,000 | $ 12,500,000 | ||||||||
Commitment fee amount | $ 27,000,000 | |||||||||
Interest rate, stated percentage | 4.3125% | 5.26% | ||||||||
Interest rate, effective percentage | 2.25% | 3.00% | ||||||||
Long-term debt | $ 26,600,000 | |||||||||
Revolving Credit Facility | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unused capacity, commitment fee percentage | 0.25% | |||||||||
Revolving Credit Facility | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unused capacity, commitment fee percentage | 0.375% | |||||||||
Revolving Credit Facility | Credit Agreement 2013 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee amount | $ 20,000 | $ 23,000 | ||||||||
Equipment Line Advances [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 1,500,000 | |||||||||
Maturity date | May 6, 2019 | |||||||||
Interest rate, stated percentage | 0.00% | 5.56% | ||||||||
Long-term debt | $ 0 | $ 314,000 | ||||||||
Term Loan B | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date | May 5, 2022 | |||||||||
Interest rate, stated percentage | 4.589% | 5.36% | ||||||||
Equipment Line Advances Term Note [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 400,000 | $ 300,000 | $ 100,000 | $ 800,000 | ||||||
Line of credit facility, periodic payment, principal | $ 11,000 | $ 9,000 | $ 2,000 | $ 21,000 | ||||||
Interest rate, stated percentage | 4.5625% | 5.56% | ||||||||
Long-term debt | $ 1,125,000 | $ 794,000 |
CREDIT FACILITIES - Contractual
CREDIT FACILITIES - Contractual Principal Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||
2020 | $ 1,371 | ||
2021 | 1,329 | ||
2022 | [1] | 27,850 | |
Long-term Debt, Gross | 30,550 | $ 17,740 | |
Long-term debt | 30,281 | 17,451 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 26,646 | $ 12,996 | |
Long-term debt | $ 26,600 | ||
[1] | Includes Revolver balance of $26.6 million at September 30, 2019, maturing on May 5, 2022. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Carrying Value | $ 30,281 | $ 17,451 |
WARRANTY RESERVES (Details)
WARRANTY RESERVES (Details) - Warranty Reserves - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Warranty Reserve | ||
Reserve, beginning of period | $ 173 | $ 153 |
Provision | 116 | 266 |
Warranty costs | (124) | (246) |
Reserve, end of period | $ 165 | $ 173 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) | 12 Months Ended |
Sep. 30, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available to be issued (in shares) | 89,701 |
Director | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
2010 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum number of common shares that may be issued | 840,360 |
Common shares, issuance term | 10 years |
Shares available to be issued (in shares) | 726,775 |
2010 Plan | Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award expiration period | 7 years |
Vesting One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Vesting Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 5 years |
STOCK-BASED COMPENSATION - Valu
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Assumptions for Black-Scholes: | ||
Risk-free interest rate | 1.64% | 2.84% |
Expected term in years | 5 years 6 months | 5 years 6 months |
Volatility | 37.00% | 33.00% |
Expected annual dividends | $ 0 | $ 0 |
Value of options granted: | ||
Number of options granted (in shares) | 70,000 | 120,000 |
Weighted average fair value per share (in dollars per share) | $ 2.40 | $ 1.84 |
Fair value of options granted (000s) | $ 168,000 | $ 221,000 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Number of Options | ||
Outstanding, beginning of period (in shares) | 737,145 | 743,045 |
Granted (in shares) | 70,000 | 120,000 |
Exercised (in shares) | (34,000) | (1,400) |
Forfeited (in shares) | (24,250) | (114,000) |
Expired (in shares) | (5,750) | (10,500) |
Outstanding, end of period (in shares) | 743,145 | 737,145 |
Wgtd. Avg. Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 4.33 | $ 4.27 |
Granted (in dollars per share) | 6.40 | 5.19 |
Exercised (in dollars per share) | 4.46 | 4.08 |
Forfeited (in dollars per share) | 3.70 | 4.78 |
Expired (in dollars per share) | 4.06 | 5.24 |
Outstanding, end of period (in dollars per share) | $ 4.54 | $ 4.33 |
For options expected to vest | ||
Number expected to vest (in shares) | 733,068 | 724,398 |
Number expected to vest (in dollars per share) | $ 4.52 | $ 4.32 |
Weighted average remaining term, in years | 3 years 6 months 7 days | 4 years 4 days |
Intrinsic value (000s) | $ 1,757 | $ 733 |
For exercisable options | ||
Number exercisable (in shares) | 566,145 | 426,358 |
Number exercisable (in dollars per share) | $ 4.22 | $ 4.24 |
Weighted average remaining term, in years | 2 years 6 months 14 days | 3 years 3 months 8 days |
Intrinsic value (000s) | $ 1,521 | $ 467 |
For non-exercisable options | ||
Expense not yet recognized (000s) | $ 329 | $ 343 |
Weighted average years to be recognized | 3 years 3 months 7 days | 2 years 9 months 29 days |
For options exercised, Intrinsic value (000s) | $ 77 | $ 2 |
STOCK-BASED COMPENSATION - Chan
STOCK-BASED COMPENSATION - Changes in Non-Vested Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Number of Options | |||
Granted (in shares) | 70,000 | 120,000 | |
Wgtd. Avg. Grant Date Fair Value | |||
Granted (in dollars per share) | $ 2.40 | $ 1.84 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 153,186 | 170,492 | |
Number of Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.09 | $ 4.28 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 63,011 | 102,864 | |
Wgtd. Avg. Grant Date Fair Value | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 5.36 | $ 3.96 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (12,258) | 0 | |
Vested (in dollars per share) | $ 4.64 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 3.58 | $ 4.22 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (68,059) | (200,371) | |
Non-vested | Restricted Stock Units (RSUs) [Member] | |||
Wgtd. Avg. Grant Date Fair Value | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 659 | $ 352 | |
Employee Service Share Based Compensation Non Vested Shares Total Compensation Not Yet Recognized Period For Recognition | 2 years 2 months 23 days | 2 years 3 months 22 days | |
Vested | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 170,492 | 267,999 | |
Wgtd. Avg. Grant Date Fair Value | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 3.96 | $ 4.03 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Wgtd. Avg. Grant Date Fair Value | ||
Granted (in shares) | 70,000 | 120,000 |
Restricted Stock Units (RSUs) [Member] | ||
Number of Non-vested Shares | ||
Outstanding, beginning of period (in shares) | 170,492 | |
Granted (in shares) | 63,011 | 102,864 |
Vested (in shares) | (12,258) | 0 |
Forfeited (in shares) | (68,059) | (200,371) |
Outstanding, end of period (in shares) | 153,186 | 170,492 |
Wgtd. Avg. Grant Date Fair Value | ||
Outstanding, beginning of period (in dollars per share) | $ 3.96 | |
Granted (in dollars per share) | 7.09 | $ 4.28 |
Vested (in dollars per share) | 4.64 | 0 |
Forfeited (in dollars per share) | 3.58 | 4.22 |
Outstanding, end of period (in dollars per share) | $ 5.36 | $ 3.96 |
Vested | Restricted Stock Units (RSUs) [Member] | ||
Number of Non-vested Shares | ||
Outstanding, beginning of period (in shares) | 170,492 | 267,999 |
Outstanding, end of period (in shares) | 170,492 | |
Wgtd. Avg. Grant Date Fair Value | ||
Outstanding, beginning of period (in dollars per share) | $ 3.96 | $ 4.03 |
Outstanding, end of period (in dollars per share) | $ 3.96 | |
Non-vested | Restricted Stock Units (RSUs) [Member] | ||
For non-vested shares | ||
Expense not yet recognized (000s) | $ 659 | $ 352 |
Weighted average remaining years for vesting | 2 years 2 months 23 days | 2 years 3 months 22 days |
Non-vested | Restricted Stock | ||
Number of Non-vested Shares | ||
Outstanding, beginning of period (in shares) | 103,233 | 109,695 |
Granted (in shares) | 32,385 | 44,878 |
Vested (in shares) | (51,511) | (41,850) |
Forfeited (in shares) | (1,400) | (9,490) |
Outstanding, end of period (in shares) | 82,707 | 103,233 |
Wgtd. Avg. Grant Date Fair Value | ||
Outstanding, beginning of period (in dollars per share) | $ 4.08 | $ 4.01 |
Granted (in dollars per share) | 7.09 | 4.29 |
Vested (in dollars per share) | 4.09 | 4.09 |
Forfeited (in dollars per share) | 4.13 | 4.20 |
Outstanding, end of period (in dollars per share) | $ 5.25 | $ 4.08 |
For non-vested shares | ||
Expense not yet recognized (000s) | $ 328 | $ 315 |
Weighted average remaining years for vesting | 2 years 7 days | 1 year 8 months 12 days |
For shares vested | ||
Aggregate fair value on vesting dates (000s) | $ 346 | $ 187 |
INCOME TAXES - Provision For_(B
INCOME TAXES - Provision For/(Benefit From) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current tax: | |||
State | $ 116 | $ 6 | |
Federal | (517) | 12 | |
Deferred tax: | |||
State | 17 | (103) | |
Federal | 1,471 | 5,088 | |
Deferred Tax Assets, Valuation Allowance | 89 | (13,840) | |
Valuation allowance | $ (7,800) | $ 1,176 | $ (8,837) |
INCOME TAXES - Effective Tax Ra
INCOME TAXES - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 21.00% | 24.20% |
Increase/(decrease) in valuation allowance | 1.50% | (880.00%) |
Deferred tax adjustment | 0.50% | (21.20%) |
Decrease in state deferred tax rate | 0.00% | (6.60%) |
State income taxes, net of federal benefit | 1.80% | 0.40% |
Rate change due to Tax Reform | 0.00% | 316.60% |
Stock-based compensation | 0.30% | 7.30% |
Increase in research and development credit | (5.40%) | (0.00%) |
Non-deductible expenses | 0.20% | 0.60% |
Other | 0.00% | (3.20%) |
Income tax provision as percent of pretax income | 19.90% | (561.90%) |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Federal and state net operating loss carryforward | $ 4,945 | $ 6,366 |
Alternative minimum tax credit carryforward | 517 | 1,031 |
Depreciation and fixed assets | 268 | 306 |
Amortization and impairment of intangibles | 0 | 27 |
New York State investment tax and other credits | 1,396 | 1,308 |
Inventories | 476 | 382 |
Deferred gain on sale-leaseback | 452 | 431 |
Research and development credit | 319 | 0 |
Section 481(a) adjustment | (96) | 0 |
Other | 273 | 312 |
Section 481(a) adjustment | 8,550 | 10,163 |
Other | (1,396) | (1,308) |
Total before allowance | $ 7,154 | $ 8,855 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Tax expense resulting from change in tax rate | $ 4,700 | ||
Decrease to valuation allowance | 5,800 | ||
Net tax benefit from release of valuation allowance on Company's AMT credits | 1,000 | ||
Valuation allowance | $ 1,308 | $ 1,396 | 1,308 |
Income tax benefit to release valuation allowance on deferred tax assets | 7,800 | (1,176) | 8,837 |
New York State investment tax and other credit carryforwards | $ 1,308 | 1,396 | $ 1,308 |
Internal Revenue Service (IRS) | |||
Operating loss carryforwards | $ 23,400 |
MARKET SECTORS AND MAJOR CUST_3
MARKET SECTORS AND MAJOR CUSTOMERS - Summary of Sales by Sector (Details) - Sales Revenue | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Concentration Risk [Line Items] | ||
Percentage of sales by sector (percent) | 100.00% | 100.00% |
Aerospace and Defense | ||
Concentration Risk [Line Items] | ||
Percentage of sales by sector (percent) | 60.00% | 57.00% |
Medical | ||
Concentration Risk [Line Items] | ||
Percentage of sales by sector (percent) | 22.00% | 23.00% |
Industrial | ||
Concentration Risk [Line Items] | ||
Percentage of sales by sector (percent) | 18.00% | 20.00% |
MARKET SECTORS AND MAJOR CUST_4
MARKET SECTORS AND MAJOR CUSTOMERS - Narrative (Details) - Customer Concentration Risk - customer | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Sales | ||
Concentration Risk [Line Items] | ||
Concentration risk, number of customers | 1 | 2 |
Sales | Medical | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.00% | |
Sales | Aerospace and Defense | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 23.00% | 23.00% |
Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, number of customers | 2 | 3 |
Concentration risk, percentage | 38.00% | 55.00% |
CAPITAL LEASE Additional Inform
CAPITAL LEASE Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Operating Leased Assets [Line Items] | ||
Sale Leaseback Transaction, Deferred Gain, Net | $ 1.5 | $ 1.6 |
Sale Leaseback Transaction, Deferred Gain, Gross | $ 1.8 |
CAPITAL LEASE - Summary of futu
CAPITAL LEASE - Summary of future capital lease payments (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $ 673 |
Capital Leases, Future Minimum Payments Due in Two Years | 686 |
Capital Leases, Future Minimum Payments Due in Three Years | 700 |
Capital Leases, Future Minimum Payments Due in Four Years | 714 |
Capital Leases, Future Minimum Payments Due in Year Five and Thereafter | 6,720 |
Capital Leases, Future Minimum Payments Due | 9,493 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | (2,470) |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | $ 7,023 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 30, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||
Net income | $ 1,794 | $ 1,211 | $ 670 | $ 1,072 | $ 9,121 | $ 204 | $ 1,579 | $ (494) | $ 4,747 | $ 10,410 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 38 | 104 | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 4,709 | $ 10,306 | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 10,306,947 | 10,228,596 | ||||||||
Incremental Common Shares Attributable to Dilutive Effect of Nonvested Shares with Forfeitable Dividends | 211,179 | 91,607 | ||||||||
Net earnings/loss (in dollars per share) | $ 0.17 | $ 0.12 | $ 0.06 | $ 0.10 | $ 0.89 | $ 0.02 | $ 0.15 | $ (0.05) | $ 0 | $ 0 |
Net Income (Loss) Attributable to Parent, Diluted | $ 4,747 | $ 10,410 | ||||||||
Diluted shares | 10,518,126 | 10,320,203 | ||||||||
Diluted Earnings/ (Loss) Per Share (in dollars per share) | $ 0.17 | $ 0.11 | $ 0.06 | $ 0.10 | $ 0.87 | $ 0.02 | $ 0.15 | $ (0.05) | $ 0 | $ 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 61,475 | 32,788 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 30, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenues | $ 43,922 | $ 40,324 | $ 37,294 | $ 35,441 | $ 34,216 | $ 29,782 | $ 31,768 | $ 21,156 | ||
Gross Profit | 6,394 | 5,605 | 4,586 | 5,059 | 4,496 | 3,359 | 4,784 | 1,518 | $ 21,644 | $ 14,157 |
Net income | $ 1,794 | $ 1,211 | $ 670 | $ 1,072 | $ 9,121 | $ 204 | $ 1,579 | $ (494) | $ 4,747 | $ 10,410 |
Basic earnings / (loss) per share (in dollars per share) | $ 0.17 | $ 0.12 | $ 0.06 | $ 0.10 | $ 0.89 | $ 0.02 | $ 0.15 | $ (0.05) | $ 0 | $ 0 |
Diluted earnings / (loss) per share (in dollars per share) | $ 0.17 | $ 0.11 | $ 0.06 | $ 0.10 | $ 0.87 | $ 0.02 | $ 0.15 | $ (0.05) | $ 0 | $ 0 |