Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 11, 2020 | Mar. 31, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | GENCOR INDUSTRIES INC | ||
Entity File Number | 001-11703 | ||
Entity Tax Identification Number | 59-0933147 | ||
Trading Symbol | GENC | ||
Entity Central Index Key | 0000064472 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Interactive Data Current | Yes | ||
City Area Code | 407 | ||
Local Phone Number | 290-6000 | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Address, Address Line One | 5201 North Orange Blossom Trail | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Address, State or Province | FL | ||
Entity Address, City or Town | Orlando | ||
Entity Address, Postal Zip Code | 32810 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Public Float | $ 109,937,000 | ||
ICFR Auditor Attestation Flag | false | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 12,287,337 | ||
Class B Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,318,857 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 35,584,000 | $ 10,302,000 |
Marketable securities at fair value (cost of $89,514,000 at September 30, 2020 and $104,176,000 at September 30, 2019) | 89,498,000 | 105,322,000 |
Accounts receivable, less allowance for doubtful accounts of $442,000 at September 30, 2020 and $459,000 at September 30, 2019 | 1,992,000 | 1,603,000 |
Costs and estimated earnings in excess of billings | 6,405,000 | 13,838,000 |
Inventories, net | 27,090,000 | 25,366,000 |
Prepaid expenses | 1,189,000 | 499,000 |
Total current assets | 161,758,000 | 156,930,000 |
Property and equipment, net | 8,341,000 | 8,389,000 |
Other long-term assets | 995,000 | 53,000 |
Total Assets | 171,094,000 | 165,372,000 |
Current liabilities: | ||
Accounts payable | 1,728,000 | 1,907,000 |
Customer deposits | 3,853,000 | 1,918,000 |
Accrued expenses | 2,605,000 | 2,660,000 |
Current operating lease liabilities | 328,000 | |
Total current liabilities | 8,514,000 | 6,485,000 |
Deferred and other income taxes | 746,000 | 3,372,000 |
Non-current operating lease liabilities | 614,000 | |
Total liabilities | 9,874,000 | 9,857,000 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, par value $.10 per share; 300,000 shares authorized; none issued | 0 | 0 |
Capital in excess of par value | 12,331,000 | 12,159,000 |
Retained earnings | 147,428,000 | 141,897,000 |
Total shareholders' equity | 161,220,000 | 155,515,000 |
Total Liabilities and Shareholders' Equity | 171,094,000 | 165,372,000 |
Common Stock [Member] | ||
Shareholders' equity: | ||
Common stock | 1,229,000 | 1,228,000 |
Total shareholders' equity | 1,229,000 | 1,228,000 |
Class B Stock [Member] | ||
Shareholders' equity: | ||
Common stock | 232,000 | 231,000 |
Total shareholders' equity | $ 232,000 | $ 231,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Marketable securities, cost | $ 89,514,000 | $ 104,176,000 |
Accounts receivable, allowance for doubtful accounts | $ 442,000 | $ 459,000 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 300,000 | 300,000 |
Preferred stock, shares issued | 0 | 0 |
Common Stock [Member] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 12,287,337 | 12,277,337 |
Common stock, shares outstanding | 12,287,337 | 12,277,337 |
Class B Stock [Member] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 6,000,000 | 6,000,000 |
Common stock, shares issued | 2,318,857 | 2,308,857 |
Common stock, shares outstanding | 2,318,857 | 2,308,857 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||
Net revenue | $ 77,420,000 | $ 81,329,000 |
Cost of goods sold | 58,467,000 | 58,917,000 |
Gross profit | 18,953,000 | 22,412,000 |
Operating expenses: | ||
Product engineering and development | 3,061,000 | 3,295,000 |
Selling, general and administrative | 10,356,000 | 9,647,000 |
Total operating expenses | 13,417,000 | 12,942,000 |
Operating income | 5,536,000 | 9,470,000 |
Other income (expense), net: | ||
Interest and dividend income, net of fees | 2,321,000 | 2,307,000 |
Realized and unrealized gains (losses) on marketable securities, net | (1,160,000) | 1,047,000 |
Other | (16,000) | |
Other income (expense),net | 1,145,000 | 3,354,000 |
Income before income tax expense | 6,681,000 | 12,824,000 |
Income tax expense | 1,150,000 | 2,628,000 |
Net income | $ 5,531,000 | $ 10,196,000 |
Basic earnings per common share | $ 0.38 | $ 0.70 |
Diluted earnings per common share | $ 0.38 | $ 0.69 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Total | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Common Stock [Member] | Class B Stock [Member] | |
Beginning balance at Sep. 30, 2018 | [1] | $ 145,017,000 | $ 11,862,000 | $ 131,701,000 | $ 1,225,000 | $ 229,000 |
Beginning balance, shares at Sep. 30, 2018 | [1] | 12,252,337 | 2,288,857 | |||
Net income | 10,196,000 | 10,196,000 | ||||
Stock-based compensation | 71,000 | 71,000 | ||||
Stock options exercised | $ 231,000 | 226,000 | $ 3,000 | $ 2,000 | ||
Stock options exercised, shares | 45,000 | 25,000 | 20,000 | |||
Ending balance at Sep. 30, 2019 | $ 155,515,000 | 12,159,000 | 141,897,000 | $ 1,228,000 | $ 231,000 | |
Ending balance, shares at Sep. 30, 2019 | 12,277,337 | 2,308,857 | ||||
Net income | 5,531,000 | 5,531,000 | ||||
Stock-based compensation | 71,000 | 71,000 | ||||
Stock options exercised | $ 103,000 | 101,000 | $ 1,000 | $ 1,000 | ||
Stock options exercised, shares | 20,000 | 10,000 | 10,000 | |||
Ending balance at Sep. 30, 2020 | $ 161,220,000 | $ 12,331,000 | $ 147,428,000 | $ 1,229,000 | $ 232,000 | |
Ending balance, shares at Sep. 30, 2020 | 12,287,337 | 2,318,857 | ||||
[1] | The balances as of September 30, 2018, have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 2 to the Consolidated Financial Statements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 5,531,000 | $ 10,196,000 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Purchase of marketable securities | (131,635,000) | (188,066,000) |
Proceeds from sale and maturity of marketable securities | 146,122,000 | 188,047,000 |
Change in value of marketable securities | 1,337,000 | (1,245,000) |
Deferred and other income taxes | (2,626,000) | 732,000 |
Depreciation and amortization | 1,643,000 | 1,600,000 |
Provision for doubtful accounts | 50,000 | 175,000 |
Loss on disposal of assets | 4,000 | |
Stock-based compensation | 71,000 | 71,000 |
Changes in assets and liabilities: | ||
Accounts receivable | (439,000) | (785,000) |
Costs and estimated earnings in excess of billings | 7,433,000 | (1,938,000) |
Inventories | (1,724,000) | (3,476,000) |
Prepaid expenses | (690,000) | 849,000 |
Accounts payable | (179,000) | 69,000 |
Customer deposits | 1,935,000 | (2,645,000) |
Accrued expenses | (55,000) | 575,000 |
Total adjustments | 21,243,000 | (6,033,000) |
Cash flows provided by operating activities | 26,774,000 | 4,163,000 |
Cash flows from investing activities: | ||
Capital expenditures | (1,595,000) | (2,104,000) |
Cash flows used in investing activities | (1,595,000) | (2,104,000) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 103,000 | 231,000 |
Cash flows provided by financing activities | 103,000 | 231,000 |
Net increase in cash and cash equivalents | 25,282,000 | 2,290,000 |
Cash and cash equivalents at: | ||
Beginning of year | 10,302,000 | 8,012,000 |
End of year | 35,584,000 | $ 10,302,000 |
Non-cash investing and financing activities: | ||
Operating lease right-of-use assets | 942,000 | |
Operating lease liabilities | $ 942,000 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Gencor Industries, Inc. and its subsidiaries (collectively, the “Company”) is a diversified, heavy machinery manufacturer for the production of highway construction materials and environmental control machinery and equipment. These consolidated financial statements include the accounts of Gencor Industries, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Accounting Pronouncements and Policies In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers 2014-09”), 2014-09 2014-09 In February 2016, the FASB issued ASU No. 2016-02, Leases 2016-02”). right-of-use 2016-02 The Company adopted ASU 2016-02 in the first quarter of fiscal 2020. The initial adoption of ASU 2016-02 did not have a significant impact on its consolidated financial statements. During the fourth quarter of fiscal 2020, the Company entered into a new operating lease which resulted in reporting a right-of-use (“ROU”) asset and related lease liabilities of approximately $970,000 (see Note 9 – Leases) . In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation Scope of Modification Accounting 2017-09”). 2017-09 2017-09 2017-09 No other accounting pronouncements recently issued or newly effective have had, or are expected to have, a material impact on the Company’s consolidated financial statements. Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Earnings per Share The consolidated financial statements include basic and diluted earnings per share (“EPS”) information. Basic EPS is based on the weighted-average number of shares outstanding. Diluted EPS is based on the sum of the weighted-average number of shares outstanding plus common stock equivalents. The weighted-average shares issuable upon the exercise of stock options included in the diluted EPS calculation at September 30, 2020 were 256,000, which equates to 125,000 dilutive common stock equivalents. For the year ended September 30, 2019, the weighted-average shares issuable upon the exercise of stock options included in the diluted EPS calculation were 307,000, which equates to 157,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options, which were not included in the diluted EPS calculation because they were anti-dilutive, were 7,000 in 2020 and zero in 2019. The following presents the calculation of the basic and diluted EPS for the years ended September 30, 2020 and 2019: 2020 2019 Net Income Shares EPS Net Income Shares EPS Basic EPS $ 5,531,000 14,595,000 $ 0.38 $ 10,196,000 14,551,000 $ 0.70 Common stock equivalents 125,000 157,000 Diluted EPS $ 5,531,000 14,720,000 $ 0.38 $ 10,196,000 14,708,000 $ 0.69 Cash Equivalents Cash equivalents consist of short-term certificates of deposit and deposits in money market accounts with original maturities of three months or less. Marketable Securities and Fair Value Measurements Marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value. Fair value is determined using the quoted closing or latest bid prices for Level 1 investments and market standard valuation methodologies for Level 2 investments. Realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the consolidated income statements. Net changes in unrealized gains and losses are reported in the consolidated income statements in the current period. Fair Value Measurements The fair value of financial instruments is presented based upon a hierarchy of levels that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The fair value of marketable equity securities (stocks), mutual funds, exchange-traded funds, government securities, and cash and money funds, are substantially based on quoted market prices (Level 1). Corporate bonds are valued using market standard valuation methodologies, including: discounted cash flow methodologies, and matrix pricing or other similar techniques. The inputs to these market standard valuation methodologies include, but are not limited to: interest rates, credit standing of the issuer or counterparty, industry sector of the issuer, coupon rate, call provisions, maturity, estimated duration and assumptions regarding liquidity and estimated future cash flows. In addition to bond characteristics, the valuation methodologies incorporate market data, such as actual trades completed, bids and actual dealer quotes, where such information is available. Accordingly, the estimated fair values are based on available market information and judgments about financial instruments (Level 2). Fair values of the Level 2 investments are provided by the Company’s professional investment management firms. From time to time the Company may transfer cash between its marketable securities portfolio and operating cash and cash equivalents. The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2020: Fair Value Measurements Level 1 Level 2 Level 3 Total Equities $ 11,949,000 $ — $ — $ 11,949,000 Mutual Funds 9,595,000 — — 9,595,000 Exchange-Traded Funds 10,344,000 — — 10,344,000 Corporate Bonds — 27,877,000 — 27,877,000 Government Securities 16,147,000 — — 16,147,000 Cash and Money Funds 13,586,000 — — 13,586,000 Total $ 61,621,000 $ 27,877,000 $ — $ 89,498,000 Net unrealized losses reported during fiscal 2020 on trading securities still held as of September 30, 2020, were $(1,091,000). There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2020. In the fourth quarter of fiscal 2020, the Company liquidated approximately $17.0 million of its investments. The cash was used to fund the acquisition of the Blaw-Knox paver business and associated assets, including inventory, fixed assets and related intellectual property, from Volvo CE (see Note 12 - Subsequent Events for additional information). The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2019: Fair Value Measurements Level 1 Level 2 Level 3 Total Equities $ 10,412,000 $ — $ — $ 10,412,000 Mutual Funds 3,987,000 — — 3,987,000 Exchange-Traded Funds 5,163,000 — — 5,163,000 Corporate Bonds — 38,690,000 — 38,690,000 Government Securities 45,171,000 — — 45,171,000 Cash and Money Funds 1,899,000 — — 1,899,000 Total $ 66,632,000 $ 38,690,000 $ — $ 105,322,000 Net unrealized gains reported during fiscal 2019 on trading securities still held as of September 30, 2019, were $737,000. There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2019. In fiscal 2019, the Company transferred a net $2.0 million from the marketable securities portfolio to operating cash and cash equivalents. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, customer deposits and accrued expenses approximate fair value because of the short-term nature of these items. Foreign Currency Transactions Gains and losses resulting from foreign currency transactions are included in income and were not significant during the years ended September 30, 2020 and 2019. Risk Management Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents, marketable securities, and accounts receivable. The Company maintains its cash accounts in various domestic financial institutions which may from time to time exceed federally insured limits. Operating cash is retained overnight in non-interest-bearing accounts which allow for offsets to treasury service charges. The marketable securities include investments in cash and money funds, mutual funds, exchange traded funds (“ETF’s”), corporate bonds, government securities and stocks through professional investment management firms. Investment securities are exposed to various risks, such as interest rate, market and credit risks. The Company’s customers are not concentrated in any specific geographic region, but are concentrated in the road and highway construction industry. The Company extends limited credit on parts sales to its customers based upon their credit-worthiness. Generally, the Company requires a significant up-front deposit before beginning manufacturing on complete asphalt plant and component orders, and requires full payment subject to hold-back provisions prior to shipment. The Company establishes an allowance for doubtful accounts based upon the credit risk of specific customers, historical trends and other pertinent information. Inventories Inventories are valued at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price of goods less reasonable costs of completion and delivery. During the fourth quarter of fiscal 2019, the Company changed its method for accounting for cost of inventories from the last-in, first-out first-in, first-out Appropriate consideration is given to obsolescence, excessive levels, deterioration, possible alternative uses and other factors in determining net realizable value. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead. The Company evaluates the need to record inventory adjustments on all inventories, including raw material, work in process, finished goods, spare parts and used equipment. Used equipment acquired by the Company on trade-in an allowance is established to reduce three four Changes in the allowance for slow-moving and obsolete inventories are as follows: 2020 2019 Balance, beginning of year $ 4,700,000 $ 4,543,000 Charged to cost of sales 401,000 304,000 Disposal of inventory, net of recoveries (484,000 ) (147,000 ) Balance, end of year $ 4,617,000 $ 4,700,000 Property and Equipment Property and equipment are stated at cost (see Note 4). Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets, as follows: Years Land improvements 15 Buildings & improvements 6-40 Equipment 2-10 Impairments Property and equipment, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. No such impairment losses were recorded during the years ended September 30, 2020 and 2019. Revenues and Expenses The Company adopted the provisions of ASU No. 2014-09 The following table disaggregates the Company’s net revenue by major source for the years ended September 30, 2020 and 2019: 2020 2019 Equipment sales recognized over time $ 35,579,000 $ 43,489,000 Equipment sales recognized at a point in time 23,642,000 19,987,000 Parts and component sales 13,896,000 13,356,000 Freight revenue 3,983,000 4,130,000 Other 320,000 367,000 Net revenue $ 77,420,000 $ 81,329,000 Revenues from contracts with customers for the design, manufacture and sale of custom equipment are recognized over time when the performance obligation is satisfied by transferring control of the equipment. Control of the equipment transfers over time, as the equipment is unique to the specific contract and thus does not create an asset with an alternative use to the Company. Revenues and costs are recognized in proportion to actual labor costs incurred, as compared with total estimated labor costs expected to be incurred, during the entire contract. All incremental costs related to obtaining a contract are expensed as incurred, as the amortization period is less than one year. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Contract assets (excluding accounts receivable) under contracts with customers represent revenue recognized in excess of amounts billed on equipment sales recognized over time. These contract assets were $6,405,000 and $13,838,000 at September 30, 2020 and 2019, respectively, and are included in current assets as costs and estimated earnings in excess of billings on the Company’s consolidated balance sheets. The Company anticipates that all of the contract assets at September 30, 2020, will be billed and collected within one year. Revenues from all other contracts for the design and manufacture of equipment, for service and for parts sales, net of any discounts and return allowances, are recorded at a point in time when control of the goods or services has been transferred. Control of the goods or service typically transfers at time of shipment or upon completion of the service. Payment for equipment under contract with customers is typically due prior to shipment. Payment for services under contract with customers is due as s Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized. Changes in the accrual for warranty and related costs are composed of the following: 2020 2019 Balance, beginning of year $ 277,000 $ 400,000 Warranties issued 375,000 140,000 Warranties settled (353,000 ) (263,000 ) Balance, end of year $ 299,000 $ 277,000 Provisions for estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. Returns and allowances, which reduce product revenue, are estimated using historical experience. Under certain contracts with customers, recognition of a portion of the consideration received may be deferred and recorded as a contract liability if the Company has to satisfy a future obligation, such as to provide installation assistance. There were no contract liabilities other than customer deposits at September 30, 2020 and September 30, 2019. Customer deposits related to contracts with customers were $3,853,000 and $1,918,000 at September 30, 2020 and 2019, respectively, and are included in current liabilities on the Company’s consolidated balance sheets. The Company records revenues earned for shipping and handling as freight revenue at the time of shipment, regardless of whether or not it is identified as a separate performance obligation. The cost of shipping and handling is classified as production costs concurrently with the revenue recognition. All product engineering and development costs, and selling, general and administrative expenses are charged to operations as incurred. Provision is made for any anticipated contract losses in the period that the loss becomes evident. The allowance for doubtful accounts is determined by performing a specific review of all account balances greater than 90 days past due and other higher risk amounts to determine collectability, and also adjusting for any known customer payment issues with account balances in the less-than-90-day Changes in the allowance for doubtful accounts are composed of the following: 2020 2019 Balance, beginning of year $ 459,000 $ 313,000 Provision for doubtful accounts 50,000 175,000 Provision for estimated returns and allowances 205,000 315,000 Uncollectible accounts written off (5,000 ) (71,000 ) Returns and allowances issued (267,000 ) (273,000 ) Balance, end of year $ 442,000 $ 459,000 Shipping and Handling Costs Shipping and handling costs are included in production costs in the consolidated income statements. Income Taxes Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and primarily consist of taxes currently due, plus deferred taxes (see Note 6 – Income Taxes). The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns using current tax rates. The Company and its domestic subsidiaries file a consolidated federal income tax return. Deferred tax assets and liabilities are measured using the rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse and the credits are expected to be used. The effect on deferred tax assets and liabilities of the change in tax rates is recognized in income in the period that includes the enactment date. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, the Company is more likely than not to realize the benefit of a deferred tax asset and whether a valuation allowance is needed for some portion or all of a deferred tax asset. No such valuation allowances were recorded as of September 30, 2020 and 2019. The Company’s income tax provision is based on management’s estimate of the effective tax rate for the full year. The tax provision in any period will be affected by, among other things, permanent, as well as temporary differences in the deductibility of certain items, in addition to changes in tax legislation. As a result, the Company may experience significant fluctuations in the effective book tax rate (that is, its tax expense divided by pre-tax Comprehensive Income For the years ended September 30, 2020 and 2019, other comprehensive income is equal to net income. Reporting Segments and Geographic Areas The Company has one reportable segment. For fiscal 2020 and 2019, total revenues of $77,420,000 and $81,329,000, and total long-term assets of $9,336,000 and $8,442,000, respectively, were attributed to the United States. Revenues are attributed to geographic areas based on the location of the assets producing the revenues. Customers with 10% (or greater) of Net Revenues No customer accounted for 10% or more of fiscal 2020 or 2019 net revenues. Subsequent Events Management has evaluated events occurring from September 30, 2020 through the date these consolidated financial statements were filed with the Securities and Exchange Commission for proper recording and disclosure herein. On October 1, 2020, the Company acquired the Blaw-Knox paver business and associated assets, including inventory, fixed assets and related intellectual property, (see Note 12 - Subsequent Events for additional information). |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 2 - INVENTORIES Inventories are valued at the lower of cost or net realizable value. During the fourth quarter of fiscal 2019, the Company changed its method for accounting for cost of inventories from the LIFO method to the FIFO method. The Company believes the FIFO method improves financial reporting by better reflecting the current value of inventory on the consolidated balance sheets, by more closely aligning the flow of physical inventory with the accounting for the inventory, and by providing better matching of revenues and ex p Net inventories consist of the following: September 30, 2020 2019 Raw materials $ 14,607,000 $ 14,158,000 Work in process 3,633,000 1,397,000 Finished goods 8,810,000 9,811,000 Used equipment 40,000 — Inventories, net $ 27,090,000 $ 25,366,000 Slow-moving and obsolete inventory reserves were $4,617,000 and $4,700,000 at September 30, 2020 and 2019, respectively. |
Costs and Estimated Earnings in
Costs and Estimated Earnings in Excess of Billings | 12 Months Ended |
Sep. 30, 2020 | |
Text Block [Abstract] | |
Costs and Estimated Earnings in Excess of Billings | NOTE 3 - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS Costs and estimated earnings in excess of billings on uncompleted contracts as of September 30, 2020 and 2019 consisted of the following: September 30, 2020 2019 Costs incurred on uncompleted contracts $ 10,390,000 $ 18,707,000 Estimated earnings 4,680,000 9,063,000 15,070,000 27,770,000 Billings to date 8,665,000 13,932,000 Costs and estimated earnings in excess of billings $ 6,405,000 $ 13,838,000 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment consist of the following as of September 30, 2020 and 2019: September 30, 2020 2019 Land and improvements $ 3,323,000 $ 3,323,000 Buildings and improvements 13,547,000 13,462,000 Equipment 16,305,000 14,809,000 33,175,000 31,594,000 Less: Accumulated depreciation and amortization (24,834,000 ) (23,205,000 ) Property and equipment, net $ 8,341,000 $ 8,389,000 Property and equipment includes approximately $14,300,000 and $12,866,000 of fully depreciated assets, which remained in service during fiscal 2020 and 2019, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | NOTE 5 - ACCRUED EXPENSES Accrued expenses consist of the following as of September 30, 2020 and 2019: September 30, 2020 2019 Payroll and related accruals $ 1,608,000 $ 1,759,000 Warranty and related accruals 299,000 277,000 Professional fees 247,000 205,000 Income tax accruals 225,000 175,000 Other 226,000 244,000 Accrued expenses $ 2,605,000 $ 2,660,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 6 - INCOME TAXES The provision for income tax expense consists of: Year Ended September 30, 2020 2019 Current: Federal $ 3,430,000 $ 2,297,000 State 346,000 148,000 Total current 3,776,000 2,445,000 Deferred: Federal (2,436,000 ) 52,000 State (190,000 ) 131,000 Total deferred (2,626,000 ) 183,000 Income tax expense $ 1,150,000 $ 2,628,000 A reconciliation of the federal statutory tax rate to the total tax provision is as follows: Year Ended September 30, 2020 2019 Federal income taxes computed at the statutory rate 21.0 % 21.0 % State income taxes, net of federal benefit 1.3 % 1.6 % Research & development tax refunds & credits (6.3 %) (1.9 %) Dividend received deduction (1.2 %) (0.6 %) 263A Section 481(a) adjustment 1.5 % — Other, net 0.9 % 0.4 % Effective income tax rate 17.2 % 20.5 % Deferred income tax assets and liabilities consist of the following: September 30, 2020 2019 Deferred Tax Assets: Accrued liabilities and reserves $ 340,000 $ 344,000 Allowance for doubtful accounts 98,000 104,000 Inventory 369,000 98,000 Stock-based compensation 81,000 82,000 Net operating losses carryforwards 5,000 7,000 Gross Deferred Income Tax Assets 893,000 635,000 Deferred and Other Tax Liabilities: Domestic international sales corporation (329,000 ) (464,000 ) Percentage of completion — (2,048,000 ) Property and equipment (1,158,000 ) (1,080,000 ) Unrealized gain on investments (2,000 ) (265,000 ) Unrecognized tax benefits (150,000 ) (150,000 ) Gross Deferred and Other Income Tax Liabilities (1,639,000 ) (4,007,000 ) Net Deferred and Other Income Tax Assets (Liabilities) $ (746,000 ) $ (3,372,000 ) Total income taxes paid in fiscal 2020 and 2019 were $3,850,000 and $1,150,000, respectively. The fiscal 2020 income taxes paid includes $2,050,000 of tax payments due on the filing of the Company’s Form 3115 with the Internal Revenue Service to reflect the revenue recognition method change to the percentage of completion method for tax purposes pursuant to Internal Revenue Code Sections 460 and 451(b). GAAP prescribes a comprehensive model for the financial recognition, measurement, classification, and disclosure of two-step Significant judgment is required in evaluating the Company’s uncertain tax position and determining the Company’s provision for taxes. Although the Company believes the reserves of unrecognized tax benefits (“UTB’s”) are reasonable, no assurance can be given that the final outcome of these matters will not be different from that which is reflected in the Company’s historical income tax provision and accruals. The Company adjusts these reserves in light of changing facts and circumstances. As of September 30, 2020 and 2019, the Company had UTB’s of $150,000. There were no additional accruals of UTB’s during fiscal years ended September 30, 2020 and 2019. The Company recognizes interest and penalties accrued related to UTB’s as a component of income tax expense. There were no additional accruals of interest expense nor penalties during fiscal years ended September 30, 2020 and 2019. It is reasonably possible that the amount of the UTB’s with respect to certain unrecognized tax positions will increase or decrease during the next 12 months. The Company does not expect the change to have a material effect on its results of operations or its financial position. The only expected potential reason for change would be the ultimate results stemming from any examinations by taxing authorities. If recognized, the entire amount of UTB’s would have an impact on the Company’s effective income tax rate. The effective income tax rate for fiscal 2020 was 17.2% versus 20.5% in fiscal 2019. In fiscal 2019, the Company generated $241,000 of federal research and development credits (“R&D Credits”), all of which were used. In fiscal 2020, the Company generated $421,000 of R&D Credits, all of which were used. There were no R&D Credits carryforwards as of September 30, 2020. As of September 30, 2018, the Company had $87,000 in Florida state research and development tax credits (“Florida R&D Credits”) carryforwards. The Company did not receive any additional Florida R&D Credits in fiscal 2020 or fiscal 2019. The Company used the $87,000 of Florida R&D Credits carryforwards from fiscal 2018 in fiscal 2019. There were no Florida R&D Credits carryforwards at September 30, 2020. The Company files U.S. federal income tax returns, as well as Florida and Iowa income tax returns. The Company’s U.S. federal income tax returns filed for tax years prior to fiscal year ended September 30, 2017 are generally no longer subject to examination by taxing authorities due to the expiration of the statute of limitations. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | NOTE 7 - RETIREMENT BENEFITS The Company has a voluntary 401(k) employee benefit plan, which covers all eligible, domestic employees. The Company makes discretionary matching contributions subject to a maximum level, in accordance with the terms of the plan. The Company charged approximately $290,000 and $282,000 to expense under the provisions of the plan during the years ended September 30, 2020 and 2019, respectively. |
Long-Term Debt and Arrangements
Long-Term Debt and Arrangements with Financial Institutions | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Arrangements with Financial Institutions | NOTE 8 - LONG-TERM DEBT AND ARRANGEMENTS WITH FINANCIAL INSTITUTIONS The Company had no long-term debt outstanding at September 30, 2020 or 2019. The Company does not currently require a credit facility. As of September 30, 2020, total cash deposits with insurance companies covering collateral needs were $85,000. In April 2020, a financial institution issued an irrevocable standby letter of credit (“letter of credit”) on behalf of the Company for the benefit of one of the Company’s insurance carriers. The maximum amount that can be drawn by the beneficiary under the letter of credit is $150,000. The letter of credit expires in April 2021, unless terminated earlier, and can be extended, as provided by the agreement. The Company intends to renew the letter of credit for as long as the Company does business with the beneficiary insurance carrier. The letter is collateralized by restricted cash of the same amount on any outstanding drawings. To date, no amounts have been drawn under the letter of credit. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | NOTE 9 - LEASES The Company leases certain equipment under non-cancelable operating leases. Future minimum rental payments under these leases at September 30, 2020 are immaterial. Total rental expense for the fiscal years ended September On August 28, 2020, the Company entered into a three ing paver business for additional information and related lease liabilities at inception. For the year ended September 30, 2020, operating lease cost was Other information concerning the Company’s operating lease accounted for under ASC 842 guidelines is as follows: As of September 30, 2020 Operating lease ROU asset included in other long-term assets $ 942,000 Current operating lease liability 328,000 Non-current operating lease liability 614,000 Weighted average remaining lease term (in years) 2.92 Weighted average discount rate used in calculating ROU 4.0 % Future annual minimum lease payments as of September 30, 2020 are as follows: Fiscal Year Annual Lease Payments 2021 $ 335,000 2022 343,000 2023 322,000 Total 1,000,000 Less interest (58,000 ) Present value of lease liabilities $ 942,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 - COMMITMENTS AND CONTINGENCIES Litigation The Company is involved in legal proceedings arising out of the normal course of business, none of which we believe will have a material adverse effect on our business, financial condition or results of operations. Claims made in the ordinary course of business may be covered in whole or in part by insurance. COVID-19 The Company continues to monitor and evaluate the risks to public health and the slowdown in overall business activity related to the novel coronavirus (“COVID-19”) COVID-19 COVID-19 the Company’s financi a COVID-19 COVID-19. |
Shareholders' Equity and Stock-
Shareholders' Equity and Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity and Stock-Based Compensation | NOTE 11 - SHAREHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Shareholders’ Equity Under the Company’s Certificate of Incorporation, as amended, certain rights of the holders of the Company’s common stock are modified by shares of Class B stock for as long as such shares shall remain outstanding. During that period, holders of common stock will have the right to elect approximately 25% of the Company’s Board of Directors, and conversely, holders of Class B stock will be entitled to elect approximately 75% of the Company’s Board of Directors. During the period when shares of common stock and Class B stock are outstanding, certain matters submitted to a vote of shareholders will also require approval of the holders of common stock and Class B stock, each voting separately as a class. Common stock and Class B shareholders have equal rights with respect to dividends, preferences, and rights, including rights in liquidation. Stock-Based Compensation On March 17, 2009, the shareholders of the Company approved the 2009 Incentive Compensation Plan (the “2009 Plan”). The 2009 Plan provides that the total number of shares of Company stock that may be subject to the granting of awards under the 2009 Plan (“Awards”) equals 800,000 shares of common stock and 160,000 shares of Class B stock , subject to adjustment pursuant to the terms of the 2009 Plan. Persons eligible to receive Awards under the 2009 Plan include employees, directors, consultants and other persons who provide services to the Company. The 2009 Plan imposes individual limitations on the amount of certain Awards, in part, to comply with Internal Revenue Code, Section 162(m). As of September 30, 2020 and 2019 issued under the 2009 Plan had been fully employees remain As of September 30, 2020 and 2019 issued under the 2009 Plan were fully vested and are exercisable through October 1, 2021 as long as the employee remains employed by the Company. In addition, 30,000 outstanding Class B stock options issued under the 2009 Plan were fully vested at September 30, 2020, and were 75% vested as of September 30, 2019, As of September 30, 2020, no options Th e 2009 Plan: Number of Average Options outstanding at September 30, 2018 317,492 $ 5.984 Options exercised during fiscal 2019 (45,000 ) $ 5.126 Options outstanding at September 30, 2019 272,492 $ 6.126 Options exercised during fiscal 2020 (20,000 ) $ 5.126 Options outstanding at September 30, 2020 252,492 $ 6.205 No options were granted, forfeited or cancelled during the years ended September 30, 2020 or September 30, 2019. The weighted average remaining contractual life on the options outstanding as of September 30, 2020 is |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 12 - SUBSEQUENT EVENTS O n . The acquisition was accounted for as a business combination under ASC 805, “Business Combinations.” The purchase price of approximately $14.4 million, which is subject to post-closing adjustments, was funded by cash on hand. Due to COVID-19 constraints, as well as limited time since the acquisition date, the Company is still in the process of completing the initial accounting for the business combination. As a result, the specific amounts for the major classes of assets acquired are not provided. There were no liabilities assumed. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Pronouncements and Policies | Accounting Pronouncements and Policies In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers 2014-09”), 2014-09 2014-09 In February 2016, the FASB issued ASU No. 2016-02, Leases 2016-02”). right-of-use 2016-02 The Company adopted ASU 2016-02 in the first quarter of fiscal 2020. The initial adoption of ASU 2016-02 did not have a significant impact on its consolidated financial statements. During the fourth quarter of fiscal 2020, the Company entered into a new operating lease which resulted in reporting a right-of-use (“ROU”) asset and related lease liabilities of approximately $970,000 (see Note 9 – Leases) . In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation Scope of Modification Accounting 2017-09”). 2017-09 2017-09 2017-09 No other accounting pronouncements recently issued or newly effective have had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Earnings per Share | Earnings per Share The consolidated financial statements include basic and diluted earnings per share (“EPS”) information. Basic EPS is based on the weighted-average number of shares outstanding. Diluted EPS is based on the sum of the weighted-average number of shares outstanding plus common stock equivalents. The weighted-average shares issuable upon the exercise of stock options included in the diluted EPS calculation at September 30, 2020 were 256,000, which equates to 125,000 dilutive common stock equivalents. For the year ended September 30, 2019, the weighted-average shares issuable upon the exercise of stock options included in the diluted EPS calculation were 307,000, which equates to 157,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options, which were not included in the diluted EPS calculation because they were anti-dilutive, were 7,000 in 2020 and zero in 2019. The following presents the calculation of the basic and diluted EPS for the years ended September 30, 2020 and 2019: 2020 2019 Net Income Shares EPS Net Income Shares EPS Basic EPS $ 5,531,000 14,595,000 $ 0.38 $ 10,196,000 14,551,000 $ 0.70 Common stock equivalents 125,000 157,000 Diluted EPS $ 5,531,000 14,720,000 $ 0.38 $ 10,196,000 14,708,000 $ 0.69 |
Cash Equivalents | Cash Equivalents Cash equivalents consist of short-term certificates of deposit and deposits in money market accounts with original maturities of three months or less. |
Marketable Securities and Fair Value Measurements | Marketable Securities and Fair Value Measurements Marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value. Fair value is determined using the quoted closing or latest bid prices for Level 1 investments and market standard valuation methodologies for Level 2 investments. Realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the consolidated income statements. Net changes in unrealized gains and losses are reported in the consolidated income statements in the current period. Fair Value Measurements The fair value of financial instruments is presented based upon a hierarchy of levels that prioritizes the inputs of valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The fair value of marketable equity securities (stocks), mutual funds, exchange-traded funds, government securities, and cash and money funds, are substantially based on quoted market prices (Level 1). Corporate bonds are valued using market standard valuation methodologies, including: discounted cash flow methodologies, and matrix pricing or other similar techniques. The inputs to these market standard valuation methodologies include, but are not limited to: interest rates, credit standing of the issuer or counterparty, industry sector of the issuer, coupon rate, call provisions, maturity, estimated duration and assumptions regarding liquidity and estimated future cash flows. In addition to bond characteristics, the valuation methodologies incorporate market data, such as actual trades completed, bids and actual dealer quotes, where such information is available. Accordingly, the estimated fair values are based on available market information and judgments about financial instruments (Level 2). Fair values of the Level 2 investments are provided by the Company’s professional investment management firms. From time to time the Company may transfer cash between its marketable securities portfolio and operating cash and cash equivalents. The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2020: Fair Value Measurements Level 1 Level 2 Level 3 Total Equities $ 11,949,000 $ — $ — $ 11,949,000 Mutual Funds 9,595,000 — — 9,595,000 Exchange-Traded Funds 10,344,000 — — 10,344,000 Corporate Bonds — 27,877,000 — 27,877,000 Government Securities 16,147,000 — — 16,147,000 Cash and Money Funds 13,586,000 — — 13,586,000 Total $ 61,621,000 $ 27,877,000 $ — $ 89,498,000 Net unrealized losses reported during fiscal 2020 on trading securities still held as of September 30, 2020, were $(1,091,000). There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2020. In the fourth quarter of fiscal 2020, the Company liquidated approximately $17.0 million of its investments. The cash was used to fund the acquisition of the Blaw-Knox paver business and associated assets, including inventory, fixed assets and related intellectual property, from Volvo CE (see Note 12 - Subsequent Events for additional information). The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2019: Fair Value Measurements Level 1 Level 2 Level 3 Total Equities $ 10,412,000 $ — $ — $ 10,412,000 Mutual Funds 3,987,000 — — 3,987,000 Exchange-Traded Funds 5,163,000 — — 5,163,000 Corporate Bonds — 38,690,000 — 38,690,000 Government Securities 45,171,000 — — 45,171,000 Cash and Money Funds 1,899,000 — — 1,899,000 Total $ 66,632,000 $ 38,690,000 $ — $ 105,322,000 Net unrealized gains reported during fiscal 2019 on trading securities still held as of September 30, 2019, were $737,000. There were no transfers of investments between Level 1 and Level 2 during the year ended September 30, 2019. In fiscal 2019, the Company transferred a net $2.0 million from the marketable securities portfolio to operating cash and cash equivalents. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, customer deposits and accrued expenses approximate fair value because of the short-term nature of these items. |
Foreign Currency Transactions | Foreign Currency Transactions Gains and losses resulting from foreign currency transactions are included in income and were not significant during the years ended September 30, 2020 and 2019. |
Risk Management | Risk Management Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash and cash equivalents, marketable securities, and accounts receivable. The Company maintains its cash accounts in various domestic financial institutions which may from time to time exceed federally insured limits. Operating cash is retained overnight in non-interest-bearing accounts which allow for offsets to treasury service charges. The marketable securities include investments in cash and money funds, mutual funds, exchange traded funds (“ETF’s”), corporate bonds, government securities and stocks through professional investment management firms. Investment securities are exposed to various risks, such as interest rate, market and credit risks. The Company’s customers are not concentrated in any specific geographic region, but are concentrated in the road and highway construction industry. The Company extends limited credit on parts sales to its customers based upon their credit-worthiness. Generally, the Company requires a significant up-front deposit before beginning manufacturing on complete asphalt plant and component orders, and requires full payment subject to hold-back provisions prior to shipment. The Company establishes an allowance for doubtful accounts based upon the credit risk of specific customers, historical trends and other pertinent information. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price of goods less reasonable costs of completion and delivery. During the fourth quarter of fiscal 2019, the Company changed its method for accounting for cost of inventories from the last-in, first-out first-in, first-out Appropriate consideration is given to obsolescence, excessive levels, deterioration, possible alternative uses and other factors in determining net realizable value. The cost of work in process and finished goods includes materials, direct labor, variable costs and overhead. The Company evaluates the need to record inventory adjustments on all inventories, including raw material, work in process, finished goods, spare parts and used equipment. Used equipment acquired by the Company on trade-in an allowance is established to reduce three four Changes in the allowance for slow-moving and obsolete inventories are as follows: 2020 2019 Balance, beginning of year $ 4,700,000 $ 4,543,000 Charged to cost of sales 401,000 304,000 Disposal of inventory, net of recoveries (484,000 ) (147,000 ) Balance, end of year $ 4,617,000 $ 4,700,000 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost (see Note 4). Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets, as follows: Years Land improvements 15 Buildings & improvements 6-40 Equipment 2-10 |
Impairments | Impairments Property and equipment, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. No such impairment losses were recorded during the years ended September 30, 2020 and 2019. |
Revenues and Expenses | Revenues and Expenses The Company adopted the provisions of ASU No. 2014-09 The following table disaggregates the Company’s net revenue by major source for the years ended September 30, 2020 and 2019: 2020 2019 Equipment sales recognized over time $ 35,579,000 $ 43,489,000 Equipment sales recognized at a point in time 23,642,000 19,987,000 Parts and component sales 13,896,000 13,356,000 Freight revenue 3,983,000 4,130,000 Other 320,000 367,000 Net revenue $ 77,420,000 $ 81,329,000 Revenues from contracts with customers for the design, manufacture and sale of custom equipment are recognized over time when the performance obligation is satisfied by transferring control of the equipment. Control of the equipment transfers over time, as the equipment is unique to the specific contract and thus does not create an asset with an alternative use to the Company. Revenues and costs are recognized in proportion to actual labor costs incurred, as compared with total estimated labor costs expected to be incurred, during the entire contract. All incremental costs related to obtaining a contract are expensed as incurred, as the amortization period is less than one year. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined. Contract assets (excluding accounts receivable) under contracts with customers represent revenue recognized in excess of amounts billed on equipment sales recognized over time. These contract assets were $6,405,000 and $13,838,000 at September 30, 2020 and 2019, respectively, and are included in current assets as costs and estimated earnings in excess of billings on the Company’s consolidated balance sheets. The Company anticipates that all of the contract assets at September 30, 2020, will be billed and collected within one year. Revenues from all other contracts for the design and manufacture of equipment, for service and for parts sales, net of any discounts and return allowances, are recorded at a point in time when control of the goods or services has been transferred. Control of the goods or service typically transfers at time of shipment or upon completion of the service. Payment for equipment under contract with customers is typically due prior to shipment. Payment for services under contract with customers is due as s Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized. Changes in the accrual for warranty and related costs are composed of the following: 2020 2019 Balance, beginning of year $ 277,000 $ 400,000 Warranties issued 375,000 140,000 Warranties settled (353,000 ) (263,000 ) Balance, end of year $ 299,000 $ 277,000 Provisions for estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. Returns and allowances, which reduce product revenue, are estimated using historical experience. Under certain contracts with customers, recognition of a portion of the consideration received may be deferred and recorded as a contract liability if the Company has to satisfy a future obligation, such as to provide installation assistance. There were no contract liabilities other than customer deposits at September 30, 2020 and September 30, 2019. Customer deposits related to contracts with customers were $3,853,000 and $1,918,000 at September 30, 2020 and 2019, respectively, and are included in current liabilities on the Company’s consolidated balance sheets. The Company records revenues earned for shipping and handling as freight revenue at the time of shipment, regardless of whether or not it is identified as a separate performance obligation. The cost of shipping and handling is classified as production costs concurrently with the revenue recognition. All product engineering and development costs, and selling, general and administrative expenses are charged to operations as incurred. Provision is made for any anticipated contract losses in the period that the loss becomes evident. The allowance for doubtful accounts is determined by performing a specific review of all account balances greater than 90 days past due and other higher risk amounts to determine collectability, and also adjusting for any known customer payment issues with account balances in the less-than-90-day Changes in the allowance for doubtful accounts are composed of the following: 2020 2019 Balance, beginning of year $ 459,000 $ 313,000 Provision for doubtful accounts 50,000 175,000 Provision for estimated returns and allowances 205,000 315,000 Uncollectible accounts written off (5,000 ) (71,000 ) Returns and allowances issued (267,000 ) (273,000 ) Balance, end of year $ 442,000 $ 459,000 |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in production costs in the consolidated income statements. |
Income Taxes | Income Taxes Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and primarily consist of taxes currently due, plus deferred taxes (see Note 6 – Income Taxes). The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns using current tax rates. The Company and its domestic subsidiaries file a consolidated federal income tax return. Deferred tax assets and liabilities are measured using the rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse and the credits are expected to be used. The effect on deferred tax assets and liabilities of the change in tax rates is recognized in income in the period that includes the enactment date. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, the Company is more likely than not to realize the benefit of a deferred tax asset and whether a valuation allowance is needed for some portion or all of a deferred tax asset. No such valuation allowances were recorded as of September 30, 2020 and 2019. The Company’s income tax provision is based on management’s estimate of the effective tax rate for the full year. The tax provision in any period will be affected by, among other things, permanent, as well as temporary differences in the deductibility of certain items, in addition to changes in tax legislation. As a result, the Company may experience significant fluctuations in the effective book tax rate (that is, its tax expense divided by pre-tax |
Comprehensive Income | Comprehensive Income For the years ended September 30, 2020 and 2019, other comprehensive income is equal to net income. |
Reporting Segments and Geographic Areas | Reporting Segments and Geographic Areas The Company has one reportable segment. For fiscal 2020 and 2019, total revenues of $77,420,000 and $81,329,000, and total long-term assets of $9,336,000 and $8,442,000, respectively, were attributed to the United States. Revenues are attributed to geographic areas based on the location of the assets producing the revenues. |
Customers with 10% (or greater) of Net Revenues | Customers with 10% (or greater) of Net Revenues No customer accounted for 10% or more of fiscal 2020 or 2019 net revenues. |
Subsequent Events | Subsequent Events Management has evaluated events occurring from September 30, 2020 through the date these consolidated financial statements were filed with the Securities and Exchange Commission for proper recording and disclosure herein. On October 1, 2020, the Company acquired the Blaw-Knox paver business and associated assets, including inventory, fixed assets and related intellectual property, (see Note 12 - Subsequent Events for additional information). |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basic and Diluted EPS | The following presents the calculation of the basic and diluted EPS for the years ended September 30, 2020 and 2019: 2020 2019 Net Income Shares EPS Net Income Shares EPS Basic EPS $ 5,531,000 14,595,000 $ 0.38 $ 10,196,000 14,551,000 $ 0.70 Common stock equivalents 125,000 157,000 Diluted EPS $ 5,531,000 14,720,000 $ 0.38 $ 10,196,000 14,708,000 $ 0.69 |
Company's Assets Measured at Fair Value | The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2020: Fair Value Measurements Level 1 Level 2 Level 3 Total Equities $ 11,949,000 $ — $ — $ 11,949,000 Mutual Funds 9,595,000 — — 9,595,000 Exchange-Traded Funds 10,344,000 — — 10,344,000 Corporate Bonds — 27,877,000 — 27,877,000 Government Securities 16,147,000 — — 16,147,000 Cash and Money Funds 13,586,000 — — 13,586,000 Total $ 61,621,000 $ 27,877,000 $ — $ 89,498,000 The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2019: Fair Value Measurements Level 1 Level 2 Level 3 Total Equities $ 10,412,000 $ — $ — $ 10,412,000 Mutual Funds 3,987,000 — — 3,987,000 Exchange-Traded Funds 5,163,000 — — 5,163,000 Corporate Bonds — 38,690,000 — 38,690,000 Government Securities 45,171,000 — — 45,171,000 Cash and Money Funds 1,899,000 — — 1,899,000 Total $ 66,632,000 $ 38,690,000 $ — $ 105,322,000 |
Schedule of Changes in Allowance for Slow Moving and Obsolete Inventories | Changes in the allowance for slow-moving and obsolete inventories are as follows: 2020 2019 Balance, beginning of year $ 4,700,000 $ 4,543,000 Charged to cost of sales 401,000 304,000 Disposal of inventory, net of recoveries (484,000 ) (147,000 ) Balance, end of year $ 4,617,000 $ 4,700,000 |
Estimated Useful Lives of Assets | Property and equipment are stated at cost (see Note 4). Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the related assets, as follows: Years Land improvements 15 Buildings & improvements 6-40 Equipment 2-10 |
Disaggregation of Company's Net Revenue by Major Source | The following table disaggregates the Company’s net revenue by major source for the years ended September 30, 2020 and 2019: 2020 2019 Equipment sales recognized over time $ 35,579,000 $ 43,489,000 Equipment sales recognized at a point in time 23,642,000 19,987,000 Parts and component sales 13,896,000 13,356,000 Freight revenue 3,983,000 4,130,000 Other 320,000 367,000 Net revenue $ 77,420,000 $ 81,329,000 |
Schedule of Changes in Accrual for Warranty and Related Costs | Changes in the accrual for warranty and related costs are composed of the following: 2020 2019 Balance, beginning of year $ 277,000 $ 400,000 Warranties issued 375,000 140,000 Warranties settled (353,000 ) (263,000 ) Balance, end of year $ 299,000 $ 277,000 |
Schedule of Changes in Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts are composed of the following: 2020 2019 Balance, beginning of year $ 459,000 $ 313,000 Provision for doubtful accounts 50,000 175,000 Provision for estimated returns and allowances 205,000 315,000 Uncollectible accounts written off (5,000 ) (71,000 ) Returns and allowances issued (267,000 ) (273,000 ) Balance, end of year $ 442,000 $ 459,000 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Net Inventories | Net inventories consist of the following: September 30, 2020 2019 Raw materials $ 14,607,000 $ 14,158,000 Work in process 3,633,000 1,397,000 Finished goods 8,810,000 9,811,000 Used equipment 40,000 — Inventories, net $ 27,090,000 $ 25,366,000 |
Costs and Estimated Earnings _2
Costs and Estimated Earnings in Excess of Billings (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Text Block [Abstract] | |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | Costs and estimated earnings in excess of billings on uncompleted contracts as of September 30, 2020 and 2019 consisted of the following: September 30, 2020 2019 Costs incurred on uncompleted contracts $ 10,390,000 $ 18,707,000 Estimated earnings 4,680,000 9,063,000 15,070,000 27,770,000 Billings to date 8,665,000 13,932,000 Costs and estimated earnings in excess of billings $ 6,405,000 $ 13,838,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following as of September 30, 2020 and 2019: September 30, 2020 2019 Land and improvements $ 3,323,000 $ 3,323,000 Buildings and improvements 13,547,000 13,462,000 Equipment 16,305,000 14,809,000 33,175,000 31,594,000 Less: Accumulated depreciation and amortization (24,834,000 ) (23,205,000 ) Property and equipment, net $ 8,341,000 $ 8,389,000 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following as of September 30, 2020 and 2019: September 30, 2020 2019 Payroll and related accruals $ 1,608,000 $ 1,759,000 Warranty and related accruals 299,000 277,000 Professional fees 247,000 205,000 Income tax accruals 225,000 175,000 Other 226,000 244,000 Accrued expenses $ 2,605,000 $ 2,660,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Tax Expense | The provision for income tax expense consists of: Year Ended September 30, 2020 2019 Current: Federal $ 3,430,000 $ 2,297,000 State 346,000 148,000 Total current 3,776,000 2,445,000 Deferred: Federal (2,436,000 ) 52,000 State (190,000 ) 131,000 Total deferred (2,626,000 ) 183,000 Income tax expense $ 1,150,000 $ 2,628,000 |
Reconciliation of the Federal Statutory Tax Rate to the Total Tax Provision | A reconciliation of the federal statutory tax rate to the total tax provision is as follows: Year Ended September 30, 2020 2019 Federal income taxes computed at the statutory rate 21.0 % 21.0 % State income taxes, net of federal benefit 1.3 % 1.6 % Research & development tax refunds & credits (6.3 %) (1.9 %) Dividend received deduction (1.2 %) (0.6 %) 263A Section 481(a) adjustment 1.5 % — Other, net 0.9 % 0.4 % Effective income tax rate 17.2 % 20.5 % |
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following: September 30, 2020 2019 Deferred Tax Assets: Accrued liabilities and reserves $ 340,000 $ 344,000 Allowance for doubtful accounts 98,000 104,000 Inventory 369,000 98,000 Stock-based compensation 81,000 82,000 Net operating losses carryforwards 5,000 7,000 Gross Deferred Income Tax Assets 893,000 635,000 Deferred and Other Tax Liabilities: Domestic international sales corporation (329,000 ) (464,000 ) Percentage of completion — (2,048,000 ) Property and equipment (1,158,000 ) (1,080,000 ) Unrealized gain on investments (2,000 ) (265,000 ) Unrecognized tax benefits (150,000 ) (150,000 ) Gross Deferred and Other Income Tax Liabilities (1,639,000 ) (4,007,000 ) Net Deferred and Other Income Tax Assets (Liabilities) $ (746,000 ) $ (3,372,000 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Other Information Concerning the Company's Operating Lease | Other information concerning the Company’s operating lease accounted for under ASC 842 guidelines is as follows: As of September 30, 2020 Operating lease ROU asset included in other long-term assets $ 942,000 Current operating lease liability 328,000 Non-current operating lease liability 614,000 Weighted average remaining lease term (in years) 2.92 Weighted average discount rate used in calculating ROU 4.0 % |
Summary of Future Annual Minimum Lease Payments | Future annual minimum lease payments as of September 30, 2020 are as follows: Fiscal Year Annual Lease Payments 2021 $ 335,000 2022 343,000 2023 322,000 Total 1,000,000 Less interest (58,000 ) Present value of lease liabilities $ 942,000 |
Shareholders' Equity and Stoc_2
Shareholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
2009 Plan [Member] | |
Summary of Option Activity under Stock-Based Compensation Plan | Th e 2009 Plan: Number of Average Options outstanding at September 30, 2018 317,492 $ 5.984 Options exercised during fiscal 2019 (45,000 ) $ 5.126 Options outstanding at September 30, 2019 272,492 $ 6.126 Options exercised during fiscal 2020 (20,000 ) $ 5.126 Options outstanding at September 30, 2020 252,492 $ 6.205 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Basic and Diluted EPS (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 5,531,000 | $ 10,196,000 |
Net Income Diluted | $ 5,531,000 | $ 10,196,000 |
Weighted average common shares outstanding | 14,595,000 | 14,551,000 |
Common Stock Equivalents | 125,000 | 157,000 |
Diluted shares outstanding | 14,720,000 | 14,708,000 |
Basic earnings per common share: | ||
Basic earnings per share | $ 0.38 | $ 0.70 |
Diluted earnings per common share: | ||
Diluted earnings per share | $ 0.38 | $ 0.69 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Company's Assets Measured at Fair Value (Detail) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Investment Holdings [Line Items] | ||
Total | $ 89,498,000 | $ 105,322,000 |
Level 1 [Member] | ||
Investment Holdings [Line Items] | ||
Total | 61,621,000 | 66,632,000 |
Level 2 [Member] | ||
Investment Holdings [Line Items] | ||
Total | 27,877,000 | 38,690,000 |
Equities [Member] | ||
Investment Holdings [Line Items] | ||
Total | 11,949,000 | 10,412,000 |
Equities [Member] | Level 1 [Member] | ||
Investment Holdings [Line Items] | ||
Total | 11,949,000 | 10,412,000 |
Mutual Funds [Member] | ||
Investment Holdings [Line Items] | ||
Total | 9,595,000 | 3,987,000 |
Mutual Funds [Member] | Level 1 [Member] | ||
Investment Holdings [Line Items] | ||
Total | 9,595,000 | 3,987,000 |
Exchange Traded Funds [Member] | ||
Investment Holdings [Line Items] | ||
Total | 10,344,000 | 5,163,000 |
Exchange Traded Funds [Member] | Level 1 [Member] | ||
Investment Holdings [Line Items] | ||
Total | 10,344,000 | 5,163,000 |
Corporate Bonds [Member] | ||
Investment Holdings [Line Items] | ||
Total | 27,877,000 | 38,690,000 |
Corporate Bonds [Member] | Level 2 [Member] | ||
Investment Holdings [Line Items] | ||
Total | 27,877,000 | 38,690,000 |
Government Securities [Member] | ||
Investment Holdings [Line Items] | ||
Total | 16,147,000 | 45,171,000 |
Government Securities [Member] | Level 1 [Member] | ||
Investment Holdings [Line Items] | ||
Total | 16,147,000 | 45,171,000 |
Cash and Money Funds [Member] | ||
Investment Holdings [Line Items] | ||
Total | 13,586,000 | 1,899,000 |
Cash and Money Funds [Member] | Level 1 [Member] | ||
Investment Holdings [Line Items] | ||
Total | $ 13,586,000 | $ 1,899,000 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Changes in Allowance for Slow Moving and Obsolete Inventories (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | ||
Balance, beginning of year | $ 4,700,000 | $ 4,543,000 |
Charged to cost of sales | 401,000 | 304,000 |
Disposal of inventory, net of recoveries | (484,000) | (147,000) |
Balance, end of year | $ 4,617,000 | $ 4,700,000 |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Sep. 30, 2020 | |
Land Improvements [Member] | |
Estimated useful lives of assets | 15 years |
Buildings and Improvements [Member] | Maximum [Member] | |
Estimated useful lives of assets | 40 years |
Buildings and Improvements [Member] | Minimum [Member] | |
Estimated useful lives of assets | 6 years |
Equipment [Member] | Maximum [Member] | |
Estimated useful lives of assets | 10 years |
Equipment [Member] | Minimum [Member] | |
Estimated useful lives of assets | 2 years |
Nature of Operations and Summ_8
Nature of Operations and Summary of Significant Accounting Policies - Disaggregation of Company's Net Revenue by Major Source (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 77,420,000 | $ 81,329,000 |
Equipment Sales [Member] | Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 35,579,000 | 43,489,000 |
Equipment Sales [Member] | Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 23,642,000 | 19,987,000 |
Parts and Component Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 13,896,000 | 13,356,000 |
Freight Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 3,983,000 | 4,130,000 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 320,000 | $ 367,000 |
Nature of Operations and Summ_9
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Changes in Accrual for Warranty and Related Costs (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Product Warranty Liability [Abstract] | ||
Balance, beginning of year | $ 277,000 | $ 400,000 |
Warranties issued | 375,000 | 140,000 |
Warranties settled | (353,000) | (263,000) |
Balance, end of year | $ 299,000 | $ 277,000 |
Nature of Operations and Sum_10
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Changes in Allowance for Doubtful Accounts (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Receivables [Abstract] | ||
Balance, beginning of year | $ 459,000 | $ 313,000 |
Provision for doubtful accounts | 50,000 | 175,000 |
Provision for estimated returns and allowances | 205,000 | 315,000 |
Uncollectible accounts written off | (5,000) | (71,000) |
Returns and allowances issued | (267,000) | (273,000) |
Balance, end of year | $ 442,000 | $ 459,000 |
Nature of Operations and Sum_11
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Oct. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Aug. 28, 2020 |
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Exercisable stock options, included in the diluted EPS calculation | 256,000 | 307,000 | |||
Effect of dilutive stock options | 125,000 | 157,000 | |||
Anti-dilutive exercisable stock options, not included in the diluted EPS calculation | 7,000 | 0 | |||
Net unrealized gains (losses) | $ (1,091,000) | $ 737,000 | |||
Transfers of investments between Level 1 and Level 2 | $ 0 | 0 | 0 | ||
Impairment loss recognized on an asset group | 0 | 0 | |||
Valuation allowance | 0 | 0 | 0 | ||
Costs and estimated earnings in excess of billings | 6,405,000 | 6,405,000 | 13,838,000 | ||
Net revenue | 77,420,000 | 81,329,000 | |||
Accounts receivable related to contracts with customers | 223,000 | 223,000 | 301,000 | ||
Total long-term assets | 9,336,000 | 9,336,000 | 8,442,000 | ||
Proceeds from sale of investments | 17,000,000 | ||||
Transfer from marketable securities to cash equivalents at fair value | 2,000,000 | ||||
Operating lease right of use assets | $ 970,000 | ||||
Operating lease liabilities | 942,000 | 942,000 | |||
Subsequent Events | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Business Combination, Acquisition Related Costs | $ 14,400,000 | ||||
New Lease Agreement [Member] | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Operating lease right of use assets | 970,000 | 970,000 | |||
New Lease Agreement [Member] | Blaw Knox Product Line From Volvo CE [Member] | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Operating lease right of use assets | 942,000 | 942,000 | |||
Operating lease liabilities | 970,000 | $ 970,000 | |||
Maximum [Member] | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Contract assets collection period | 1 year | ||||
Current Liabilities [Member] | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Customer deposits related to contracts with customers | $ 3,853,000 | $ 3,853,000 | $ 1,918,000 | ||
Entities Owned by One Global Company [Member] | Revenue [Member] | Customer One [Member] | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of concentration | 10.00% | 10.00% | |||
Three to Four Years Old Inventory [Member] | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Inventory, minimum time period on the shelf, years | 3 years | ||||
Inventory, maximum time period on the shelf, years | 4 years | ||||
Cost basis reduction in inventory, percentage | 50.00% | ||||
Four to Five Years Old Inventory [Member] | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Inventory, minimum time period on the shelf, years | 4 years | ||||
Inventory, maximum time period on the shelf, years | 5 years | ||||
Cost basis reduction in inventory, percentage | 75.00% | ||||
Greater Than Five Years Old Inventory [Member] | |||||
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Inventory, minimum time period on the shelf, years | 5 years | ||||
Inventory valuation estimate | $ 0 |
Inventories - Net Inventories (
Inventories - Net Inventories (Detail) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Inventory, Net [Abstract] | ||
Raw materials | $ 14,607,000 | $ 14,158,000 |
Work in process | 3,633,000 | 1,397,000 |
Finished goods | 8,810,000 | 9,811,000 |
Used equipment | 40,000 | |
Inventories, net | $ 27,090,000 | $ 25,366,000 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Inventory [Line Items] | |||
Slow moving and obsolete inventory reserve | $ 4,617,000 | $ 4,700,000 | $ 4,543,000 |
Costs and Estimated Earnings _3
Costs and Estimated Earnings in Excess of Billings - Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts (Detail) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract] | ||
Costs incurred on uncompleted contracts | $ 10,390,000 | $ 18,707,000 |
Estimated earnings | 4,680,000 | 9,063,000 |
Costs and estimated earnings on uncompleted contracts | 15,070,000 | 27,770,000 |
Billings to date | 8,665,000 | 13,932,000 |
Costs and estimated earnings in excess of billings | $ 6,405,000 | $ 13,838,000 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment (Detail) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 33,175,000 | $ 31,594,000 |
Less: Accumulated depreciation and amortization | (24,834,000) | (23,205,000) |
Property and equipment, net | 8,341,000 | 8,389,000 |
Land and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,323,000 | 3,323,000 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 13,547,000 | 13,462,000 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,305,000 | $ 14,809,000 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Property and equipment (fully depreciated assets) | $ 14,300,000 | $ 12,866,000 |
Accrued Expenses - Accrued Expe
Accrued Expenses - Accrued Expenses (Detail) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Payables and Accruals [Abstract] | ||
Payroll and related accruals | $ 1,608,000 | $ 1,759,000 |
Warranty and related accruals | 299,000 | 277,000 |
Professional fees | 247,000 | 205,000 |
Income tax accruals | 225,000 | 175,000 |
Other | 226,000 | 244,000 |
Accrued expenses | $ 2,605,000 | $ 2,660,000 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Expense (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Current: | ||
Federal | $ 3,430,000 | $ 2,297,000 |
State | 346,000 | 148,000 |
Total current | 3,776,000 | 2,445,000 |
Deferred: | ||
Federal | (2,436,000) | 52,000 |
State | (190,000) | 131,000 |
Total deferred | (2,626,000) | 183,000 |
Income tax expense | $ 1,150,000 | $ 2,628,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Federal Statutory Tax Rate to the Total Tax Provision (Detail) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal income taxes computed at the statutory rate | 21.00% | 21.00% |
State income taxes, net of federal benefit | 1.30% | 1.60% |
Research & development tax refunds & credits | (6.30%) | (1.90%) |
Dividend received deduction | (1.20%) | (0.60%) |
263A Section 481(a) adjustment | 1.50% | |
Other, net | 0.90% | 0.40% |
Effective income tax rate | 17.20% | 20.50% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Detail) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred Tax Assets: | ||
Accrued liabilities and reserves | $ 340,000 | $ 344,000 |
Allowance for doubtful accounts | 98,000 | 104,000 |
Inventory | 369,000 | 98,000 |
Stock-based compensation | 81,000 | 82,000 |
Net operating losses carryforwards | 5,000 | 7,000 |
Gross Deferred Income Tax Assets | 893,000 | 635,000 |
Deferred and Other Tax Liabilities: | ||
Domestic international sales corporation | (329,000) | (464,000) |
Percentage of completion | (2,048,000) | |
Property and equipment | (1,158,000) | (1,080,000) |
Unrealized gain on investment | (2,000) | (265,000) |
Unrecognized tax benefits | (150,000) | (150,000) |
Gross Deferred and Other Income Tax Liabilities | (1,639,000) | (4,007,000) |
Net Deferred and Other Income Tax Assets (Liabilities) | $ (746,000) | $ (3,372,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
IncomeTaxes [Line Items] | |||
Total incomes taxes paid | $ 3,850,000 | $ 1,150,000 | |
Unrecognized tax benefits | 150,000 | 150,000 | |
Additional accruals of UTB's | 0 | 0 | |
Additional accruals of interest expense nor penalties | $ 0 | $ 0 | |
Effective income tax rate | 17.20% | 20.50% | |
Income Taxes Paid | $ 3,850,000 | $ 1,150,000 | |
Florida R&D Credits [Member] | |||
IncomeTaxes [Line Items] | |||
R&D tax credits carryforwards | 0 | 0 | $ 87,000 |
R&D Credits | 0 | 87,000 | $ 87,000 |
Federal [Member] | |||
IncomeTaxes [Line Items] | |||
R&D tax credits carryforwards | 0 | 0 | |
R&D Credits | 421,000 | $ 241,000 | |
Internal Revenue Service (IRS) [Member] | |||
IncomeTaxes [Line Items] | |||
Total incomes taxes paid | 2,050,000 | ||
Income Taxes Paid | $ 2,050,000 |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Retirement Benefits [Abstract] | ||
Retirement benefits expense under the provisions of the plan | $ 290,000 | $ 282,000 |
Long-Term Debt and Arrangemen_2
Long-Term Debt and Arrangements with Financial Institutions - Additional Information (Detail) - USD ($) | Sep. 30, 2020 | Apr. 30, 2020 | Sep. 30, 2019 |
Debt Disclosure [Abstract] | |||
Long term debt outstanding | $ 0 | $ 0 | |
Total cash deposits with insurance companies covering collateral needs | $ 85,000 | ||
Proceeds from lines of credit | $ 150,000 |
Leases - Summary of Other Infor
Leases - Summary of Other Information Concerning the Company's Operating Lease (Detail) - USD ($) | Sep. 30, 2020 | Aug. 28, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating lease ROU asset included in other long-term assets | $ 970,000 | |
Current operating lease liability | $ 328,000 | |
Non-current operating lease liability | 614,000 | |
New Lease Agreement [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease ROU asset included in other long-term assets | 970,000 | |
Blaw Knox Product Line From Volvo CE [Member] | New Lease Agreement [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease ROU asset included in other long-term assets | 942,000 | |
Current operating lease liability | 328,000 | |
Non-current operating lease liability | $ 614,000 | |
Weighted average remaining lease term (in years) | 2 years 11 months 1 day | |
Weighted average discount rate used in calculating ROU asset | 4.00% |
Leases - Summary of Future Annu
Leases - Summary of Future Annual Minimum Lease Payments (Detail) | Sep. 30, 2020USD ($) |
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | |
2021 | $ 335,000 |
2022 | 343,000 |
2023 | 322,000 |
Total | 1,000,000 |
Less interest | (58,000) |
Present value of lease liabilities | $ 942,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | Aug. 28, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Lessee, Lease, Description [Line Items] | |||
Total rental expense | $ 37,000 | $ 40,000 | |
Assets | $ 970,000 | ||
Operating Lease, Expense | 28,000 | ||
Operating lease term | 3 years | ||
New Lease Agreement [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Assets | 970,000 | ||
Blaw Knox Product Line From Volvo CE [Member] | New Lease Agreement [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Assets | $ 942,000 | ||
Operating lease liability date of expiry | Aug. 31, 2023 |
Shareholders' Equity and Stoc_3
Shareholders' Equity and Stock-Based Compensation - Additional Information (Detail) - shares | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 17, 2009 | |
Class of Stock [Line Items] | ||||
Common stock options issued to employees | 177,492 | |||
Number of shares, options outstanding | 252,492 | 272,492 | 317,492 | |
2009 Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock options issued to employees | 0 | |||
Shares available for granting | 0 | |||
Remaining contractual life on the options outstanding | 1 year 7 months 6 days | |||
Number of options, forfeited or cancelled | 0 | |||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Right of holders to elect company's board of directors | 25.00% | |||
Common Stock [Member] | 2009 Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Maximum number of shares granting of awards | 800,000 | |||
Class B Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Right of holders to elect company's board of directors | 75.00% | 75.00% | ||
Class B Stock [Member] | 2009 Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Maximum number of shares granting of awards | 160,000 | |||
Class B Stock [Member] | 2009 Plan [Member] | Share-based Compensation Award, Tranche One [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, options outstanding | 45,000 | 45,000 | ||
Share based payments, options, expiration date | Oct. 1, 2021 | Oct. 1, 2021 | ||
Class B Stock [Member] | 2009 Plan [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, options outstanding | 30,000 | 30,000 | ||
Share based payments, options, expiration date | Sep. 26, 2026 | Sep. 26, 2026 |
Shareholders' Equity and Stoc_4
Shareholders' Equity and Stock-Based Compensation - Summary of Option Activity under Stock-Based Compensation Plan (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, Options exercised | (20,000) | (45,000) | |
Number of Shares, Options outstanding | 252,492 | 272,492 | 317,492 |
Average Exercise Price Per Share, Options exercised | $ 5.126 | $ 5.126 | |
Average Exercise Price Per Share, Options outstanding | $ 6.205 | $ 6.126 | $ 5.984 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Oct. 01, 2020USD ($) |
Subsequent Events | |
Subsequent Event [Line Items] | |
Business Combination, Acquisition Related Costs | $ 14.4 |