Gencor Industries (GENC) 10-Q 6 Feb 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 31, 2023	Feb. 05, 2024
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
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 Quarterly Report	true
Document Transition Report	false
Entity Current Reporting Status	Yes
Entity Filer Category	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	NYSEAMER
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
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		12,338,845
Class B Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,318,857

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 18,559,000	$ 17,031,000
Marketable securities at fair value (cost of $86,134,000 at December 31, 2023 and $85,514,000 at September 30, 2023)	86,231,000	84,252,000
Accounts receivable, less allowance for doubtful accounts of $485,000 at December 31, 2023 and $545,000 at September 30, 2023	4,028,000	2,467,000
Costs and estimated earnings in excess of billings	6,164,000	1,508,000
Inventories, net	72,209,000	71,527,000
Prepaid expenses and other current assets	2,377,000	2,169,000
Total current assets	189,568,000	178,954,000
Property and equipment, net	12,947,000	13,246,000
Deferred and other income taxes	2,855,000	3,167,000
Other long-term assets	288,000	381,000
Total Assets	205,658,000	195,748,000
Current liabilities:
Accounts payable	3,709,000	3,269,000
Customer deposits	12,702,000	6,815,000
Accrued expenses	3,103,000	3,753,000
Current operating lease liabilities	235,000	328,000
Total current liabilities	19,749,000	14,165,000
Total liabilities	19,749,000	14,165,000
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	12,590,000	12,590,000
Retained earnings	171,853,000	167,527,000
Total shareholders' equity	185,909,000	181,583,000
Total Liabilities and Shareholders' Equity	205,658,000	195,748,000
Common Stock [Member]
Shareholders' equity:
Common stock	1,234,000	1,234,000
Class B Stock [Member]
Shareholders' equity:
Common stock	$ 232,000	$ 232,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Marketable securities, cost	$ 86,134,000	$ 85,514,000
Accounts receivable, allowance for doubtful accounts	$ 485,000	$ 545,000
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	12,338,845	12,338,845
Common stock, shares outstanding	12,338,845	12,338,845
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	2,318,857
Common stock, shares outstanding	2,318,857	2,318,857

Condensed Consolidated Income S

Condensed Consolidated Income Statements - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net revenue	$ 26,018,000	$ 25,825,000
Cost of goods sold	18,484,000	20,010,000
Gross profit	7,534,000	5,815,000
Operating expenses:
Product engineering and development	801,000	897,000
Selling, general and administrative	3,350,000	2,799,000
Total operating expenses	4,151,000	3,696,000
Operating income	3,383,000	2,119,000
Other income, net:
Interest and dividend income, net of fees	716,000	493,000
Realized and unrealized gains on marketable securities, net	1,519,000	1,962,000
Other income, net	2,235,000	2,455,000
Income before income tax expense	5,618,000	4,574,000
Income tax expense	1,292,000	1,098,000
Net income	$ 4,326,000	$ 3,476,000
Basic income per common share	$ 0.3	$ 0.24
Diluted income per common share	$ 0.3	$ 0.24

Condensed Consolidated Statemen

Condensed Consolidated Statements of Shareholders' Equity - USD ($)	Total	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Common Stock [Member] Common Stock [Member]	Class B Stock [Member] Common Stock [Member]
Beginning balance at Sep. 30, 2022	$ 166,917,000	$ 12,590,000	$ 152,861,000	$ 1,234,000	$ 232,000
Beginning balance, shares at Sep. 30, 2022				12,338,845	2,318,857
Net income	3,476,000		3,476,000
Ending balance at Dec. 31, 2022	170,393,000	12,590,000	156,337,000	$ 1,234,000	$ 232,000
Ending balance, shares at Dec. 31, 2022				12,338,845	2,318,857
Beginning balance at Sep. 30, 2023	181,583,000	12,590,000	167,527,000	$ 1,234,000	$ 232,000
Beginning balance, shares at Sep. 30, 2023				12,338,845	2,318,857
Net income	4,326,000		4,326,000
Ending balance at Dec. 31, 2023	$ 185,909,000	$ 12,590,000	$ 171,853,000	$ 1,234,000	$ 232,000
Ending balance, shares at Dec. 31, 2023				12,338,845	2,318,857

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net income	$ 4,326,000	$ 3,476,000
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Purchase of marketable securities	(13,102,000)	(42,080,000)
Proceeds from sale and maturity of marketable securities	12,522,000	41,427,000
Change in value of marketable securities	(1,399,000)	(1,765,000)
Deferred and other income taxes	312,000	490,000
Depreciation and amortization	665,000	705,000
Provision for doubtful accounts	0	75,000
Loss on disposal of assets	0	157,000
Changes in assets and liabilities:
Accounts receivable	(1,561,000)	(1,738,000)
Costs and estimated earnings in excess of billings	(4,656,000)	(2,832,000)
Inventories	(682,000)	(3,500,000)
Prepaid expenses and other current assets	(208,000)	36,000
Accounts payable	440,000	134,000
Customer deposits	5,887,000	2,523,000
Accrued expenses	(650,000)	(6,000)
Total adjustments	(2,432,000)	(6,374,000)
Cash flows provided by (used in) operating activities	1,894,000	(2,898,000)
Cash flows from investing activities:
Capital expenditures	(366,000)	(705,000)
Cash flows used in investing activities	(366,000)	(705,000)
Net increase (decrease) in cash and cash equivalents	1,528,000	(3,603,000)
Cash and cash equivalents at:
Beginning of period	17,031,000	9,581,000
End of period	$ 18,559,000	$ 5,978,000

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1—Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q S-X. The accompanying Condensed Consolidated Balance Sheet at September 30, 2023 has been derived from the audited financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles for complete financial statements. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K Recent Accounting Pronouncements No accounting pronouncements recently issued or newly effective have had, or are expected to have, a material impact on the Company’s condensed consolidated financial statements. Global, market and economic conditions may negatively impact our business, financial condition and share price Concerns over inflation, geopolitical issues and global financial markets have led to increased economic instability and expectations of slower global economic growth. Our business may be adversely affected by any such economic instability or unpredictability. Russia’s invasion of Ukraine and related sanctions has led to increased energy prices. Such sanctions and disruptions to the global economy may lead to additional inflation and may disrupt the global supply chain and could have a material adverse effect on our ability to secure supplies. The increased cost of oil, along with increased or prolonged periods of inflation, would likely increase our costs in the form of higher wages, further inflation on supplies and equipment necessary to operate our business. Additionally, the armed conflict involving Hamas and Israel, as well as further escalation of tensions between Israel, the U. S., and various countries in the Middle East and North Africa, may cause increased inflation in energy and logistics costs and could further cause general economic conditions in the U.S. or abroad to deteriorate. There is a risk that one or more of our suppliers could be negatively affected by global economic instability, which could adversely affect our ability to operate efficiently and timely complete our operational goals. As of the date of issuance of this Quarterly Report, the Company’s operations have not been significantly impacted.

Marketable Securities and Fair

Marketable Securities and Fair Value Measurements	3 Months Ended
	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Marketable Securities and Fair Value Measurements	Note 2—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 condensed consolidated income statements. Net changes in unrealized gains and losses are reported in the condensed 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 marketable securities measured at fair value as of December 31, 2023: Fair Value Measurements Level 1 Level 2 Level 3 Total Exchange-Traded Funds $ 3,462,000 $ — $ — $ 3,462,000 Corporate Bonds — 30,501,000 — 30,501,000 Government Securities 52,104,000 — — 52,104,000 Cash and Money Funds 164,000 — — 164,000 Total $ 55,730,000 $ 30,501,000 $ — $ 86,231,000 Net unrealized gains recognized during the quarter ended December 31, 2023 on trading securities still held as of December 31, 2023 were $1,359,000. The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2023: Fair Value Measurements Level 1 Level 2 Level 3 Total Exchange-Traded Funds $ 3,327,000 $ — $ — $ 3,327,000 Corporate Bonds — 33,160,000 — 33,160,000 Government Securities 47,672,000 — — 47,672,000 Cash and Money Funds 93,000 — — 93,000 Total $ 51,092,000 $ 33,160,000 $ — $ 84,252,000 Net unrealized gains recognized during the quarter ended December 31, 2022 on trading securities still held as of December 31, 2022 were $2,332,000. 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.

Inventories

Inventories	3 Months Ended
	Dec. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Note 3 – Inventories Inventories are valued at the lower of cost or net realizable value with cost being determined under the first in, first out method and net realizable value defined as the estimated selling price of goods less reasonable costs of completion and delivery. 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 net realizable value. Unless specific circumstances warrant different treatment regarding inventory obsolescence, an allowance is established to reduce the cost basis of inventories three four Net inventories at December 31, 2023 and September 30, 2023 consist of the following: December 31, 2023 September 30, 2023 Raw materials $ 37,896,000 $ 35,918,000 Work in process 22,759,000 22,923,000 Finished goods 11,554,000 12,686,000 $ 72,209,000 $ 71,527,000 Slow-moving and obsolete inventory reserves were $9,915,000 and $9,813,000 at December 31, 2023 and September 30, 2023, respectively.

Costs and Estimated Earnings in

Costs and Estimated Earnings in Excess of Billings	3 Months Ended
	Dec. 31, 2023
Text Block [Abstract]
Costs and Estimated Earnings in Excess of Billings	Note 4 – Costs and Estimated Earnings in Excess of Billings Costs and estimated earnings in excess of billings on uncompleted contracts as of December 31, 2023 and September 30, 2023 consist of the following: December 31, 2023 September 30, 2023 Costs incurred on uncompleted contracts $ 21,196,000 $ 18,468,000 Estimated earnings 8,785,000 7,939,000 29,981,000 26,407,000 Billings to date 23,817,000 24,899,000 Costs and estimated earnings in excess of billings $ 6,164,000 $ 1,508,000

Earnings per Share Data

Earnings per Share Data	3 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Earnings per Share Data	Note 5 – Earnings per Share Data The following table sets forth the computation of basic and diluted income (loss) per share for the quarters ended December 31, 2023 and 2022: Quarter Ended December 31, 2023 2022 Net Income $ 4,326,000 $ 3,476,000 Common Shares: Weighted average common shares outstanding 14,658,000 14,658,000 Common stock equivalents — — Diluted shares outstanding 14,658,000 14,658,000 Basic: Net income per share $ 0.30 $ 0.24 Diluted: Net income per share $ 0.30 $ 0.24 The Company’s 2009 Incentive Compensation Plan expired on October 1, 2021. There were no

Customers with 10% (or greater)

Customers with 10% (or greater) of Net Revenues	3 Months Ended
	Dec. 31, 2023
Risks and Uncertainties [Abstract]
Customers with 10% (or greater) of Net Revenues	Note 6 – Customers with 10% (or greater) of Net Revenues During the quarter ended December 31, 2023, one customer accounted for 20.3 % of net revenues. During the quarter ended December 31, 2022, two customers accounted for 13.4% and 12.5% of net revenues, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Note 7 – Income Taxes Income taxes are provided for the tax effects of transactions reported in the condensed consolidated financial statements and primarily consist of taxes currently due, plus deferred taxes. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the condensed 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 December 31, 2023 and September 30, 2023. 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 Beginning in 2022, the TCJA eliminated the option of expensing all research and development expenditures in the current year, instead requiring amortization over five years pursuant to IRC Section 174. In the future, Congress may consider legislation that would eliminate the capitalization and amortization requirement. There is no assurance that the requirement will be deferred, repealed or otherwise modified. The requirement became effective for the Company’s fiscal year 2023, beginning October 1, 2022. The Company will continue to make additional estimated federal tax payments based on the current Section 174 tax law. The impact of Section 174 on the Company’s cash from operations depends primarily on the amount of research and development expenditures incurred and whether the IRS issues guidance on the provision which differs from the Company’s current interpretation.

Revenue Recognition and Related

Revenue Recognition and Related Costs	3 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition and Related Costs	Note 8 – Revenue Recognition and Related Costs The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers Quarter Ended December 31, 2023 2022 Equipment sales recognized over time $ 9,833,000 $ 7,329,000 Equipment sales recognized at a point in time 7,181,000 11,498,000 Parts and component sales 7,796,000 5,901,000 Freight revenue 1,135,000 1,046,000 Other 73,000 51,000 Net revenue $ 26,018,000 $ 25,825,000 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 $6,164,000 and $1,508,000 at December 31, 2023 and September 30, 2023, respectively, and are included in current assets as costs and estimated earnings in excess of billings on the Company’s condensed consolidated balance sheets. The Company anticipates that all of the contract assets at December 31, 2023, 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 services are completed. Accounts receivable related to contracts with customers for equipment sales were $76,000 and $114,000 at December 31, 2023 and September 30, 2023, respectively. Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized. 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 December 31, 2023 and September 30, 2023. Customer deposits related to contracts with customers were $12,702,000 and $6,815,000 at December 31, 2023 and September 30, 2023, respectively, and are included in current liabilities on the Company’s condensed 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 cost of goods sold 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

Leases

Leases	3 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Leases	Note 9 – Leases The Company leases certain equipment under non-cancelable On August 28, 2020, the Company entered into a three-year operating lease for property related to manufacturing and warehousing. The lease term was for the period beginning on September 1, 2020 through August 31, 2023 2016-02, 2016-02, On October 9, 2020, the Company entered into an operating lease for additional warehousing space for inventory. The original lease term was for one year beginning November 2020 with automatic one-year 2016-02, For the quarter ended December 31, 2023, operating lease costs and cash payments related to these operating leases were $109,000. For the quarter ended December 31, 2022, operating lease costs were $107,000 and cash payments related to these operating leases were $133,000. Other information concerning the Company’s operating lease accounted for under ASC 842 guidelines as of December 31, 2023 and September 30, 2023, is as follows: December 31, 2023 September 30, 2023 Operating lease ROU asset included in other long-term $ 235,000 $ 328,000 Current operating lease liability 235,000 328,000 Non-current — — Weighted average remaining lease term (in years) 0.75 0.51 Weighted average discount rate used in calculating ROU 5.0 % 4.5 % Future annual minimum lease payments as of December 31, 2023 are as follows: Fiscal Year Annual Lease Payments 2024 (remaining nine months) $ 239,000 Less interest (4,000 ) Present value of lease liabilities $ 235,000

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
Segment Information	Note 10 – Segment Information The Company has one reporting segment, equipment for the highway construction industry. Based on evaluation of the criteria of ASC 280 – Segment Reporting, including the nature of products and services, the nature of the production processes, the type of customers and the methods used to distribute products and services, the Company determined that its operating segments meet the requirements for aggregation. The Company designs, manufactures and sells asphalt plants and pavers, combustion systems and fluid heat transfer systems, for the highway construction industry and environmental and petrochemical markets. The Company’s products are manufactured at three facilities in the United States. The Company also services and sells spare parts for its equipment.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements No accounting pronouncements recently issued or newly effective have had, or are expected to have, a material impact on the Company’s condensed consolidated financial statements.
Marketable Securities	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 condensed consolidated income statements. Net changes in unrealized gains and losses are reported in the condensed consolidated income statements in the current period.
Fair Value Measurements	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 marketable securities measured at fair value as of December 31, 2023: Fair Value Measurements Level 1 Level 2 Level 3 Total Exchange-Traded Funds $ 3,462,000 $ — $ — $ 3,462,000 Corporate Bonds — 30,501,000 — 30,501,000 Government Securities 52,104,000 — — 52,104,000 Cash and Money Funds 164,000 — — 164,000 Total $ 55,730,000 $ 30,501,000 $ — $ 86,231,000 Net unrealized gains recognized during the quarter ended December 31, 2023 on trading securities still held as of December 31, 2023 were $1,359,000. The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2023: Fair Value Measurements Level 1 Level 2 Level 3 Total Exchange-Traded Funds $ 3,327,000 $ — $ — $ 3,327,000 Corporate Bonds — 33,160,000 — 33,160,000 Government Securities 47,672,000 — — 47,672,000 Cash and Money Funds 93,000 — — 93,000 Total $ 51,092,000 $ 33,160,000 $ — $ 84,252,000 Net unrealized gains recognized during the quarter ended December 31, 2022 on trading securities still held as of December 31, 2022 were $2,332,000. 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.
Inventories	Inventories are valued at the lower of cost or net realizable value with cost being determined under the first in, first out method and net realizable value defined as the estimated selling price of goods less reasonable costs of completion and delivery. 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 net realizable value. Unless specific circumstances warrant different treatment regarding inventory obsolescence, an allowance is established to reduce the cost basis of inventories three four
Earnings per Share	The following table sets forth the computation of basic and diluted income (loss) per share for the quarters ended December 31, 2023 and 2022: Quarter Ended December 31, 2023 2022 Net Income $ 4,326,000 $ 3,476,000 Common Shares: Weighted average common shares outstanding 14,658,000 14,658,000 Common stock equivalents — — Diluted shares outstanding 14,658,000 14,658,000 Basic: Net income per share $ 0.30 $ 0.24 Diluted: Net income per share $ 0.30 $ 0.24 The Company’s 2009 Incentive Compensation Plan expired on October 1, 2021. There were no
Income Taxes	Income taxes are provided for the tax effects of transactions reported in the condensed consolidated financial statements and primarily consist of taxes currently due, plus deferred taxes. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the condensed 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 December 31, 2023 and September 30, 2023. 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 Beginning in 2022, the TCJA eliminated the option of expensing all research and development expenditures in the current year, instead requiring amortization over five years pursuant to IRC Section 174. In the future, Congress may consider legislation that would eliminate the capitalization and amortization requirement. There is no assurance that the requirement will be deferred, repealed or otherwise modified. The requirement became effective for the Company’s fiscal year 2023, beginning October 1, 2022. The Company will continue to make additional estimated federal tax payments based on the current Section 174 tax law. The impact of Section 174 on the Company’s cash from operations depends primarily on the amount of research and development expenditures incurred and whether the IRS issues guidance on the provision which differs from the Company’s current interpretation.
Revenue Recognition and Related Costs	The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers Quarter Ended December 31, 2023 2022 Equipment sales recognized over time $ 9,833,000 $ 7,329,000 Equipment sales recognized at a point in time 7,181,000 11,498,000 Parts and component sales 7,796,000 5,901,000 Freight revenue 1,135,000 1,046,000 Other 73,000 51,000 Net revenue $ 26,018,000 $ 25,825,000 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 $6,164,000 and $1,508,000 at December 31, 2023 and September 30, 2023, respectively, and are included in current assets as costs and estimated earnings in excess of billings on the Company’s condensed consolidated balance sheets. The Company anticipates that all of the contract assets at December 31, 2023, 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 services are completed. Accounts receivable related to contracts with customers for equipment sales were $76,000 and $114,000 at December 31, 2023 and September 30, 2023, respectively. Product warranty costs are estimated using historical experience and known issues and are charged to production costs as revenue is recognized. 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 December 31, 2023 and September 30, 2023. Customer deposits related to contracts with customers were $12,702,000 and $6,815,000 at December 31, 2023 and September 30, 2023, respectively, and are included in current liabilities on the Company’s condensed 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 cost of goods sold 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
Leases	The Company leases certain equipment under non-cancelable On August 28, 2020, the Company entered into a three-year operating lease for property related to manufacturing and warehousing. The lease term was for the period beginning on September 1, 2020 through August 31, 2023 2016-02, 2016-02, On October 9, 2020, the Company entered into an operating lease for additional warehousing space for inventory. The original lease term was for one year beginning November 2020 with automatic one-year 2016-02, For the quarter ended December 31, 2023, operating lease costs and cash payments related to these operating leases were $109,000. For the quarter ended December 31, 2022, operating lease costs were $107,000 and cash payments related to these operating leases were $133,000. Other information concerning the Company’s operating lease accounted for under ASC 842 guidelines as of December 31, 2023 and September 30, 2023, is as follows: December 31, 2023 September 30, 2023 Operating lease ROU asset included in other long-term $ 235,000 $ 328,000 Current operating lease liability 235,000 328,000 Non-current — — Weighted average remaining lease term (in years) 0.75 0.51 Weighted average discount rate used in calculating ROU 5.0 % 4.5 % Future annual minimum lease payments as of December 31, 2023 are as follows: Fiscal Year Annual Lease Payments 2024 (remaining nine months) $ 239,000 Less interest (4,000 ) Present value of lease liabilities $ 235,000

Marketable Securities and Fai_2

Marketable Securities and Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Company's Marketable Securities Measured at Fair Value	The following table sets forth, by level, within the fair value hierarchy, the Company’s marketable securities measured at fair value as of December 31, 2023: Fair Value Measurements Level 1 Level 2 Level 3 Total Exchange-Traded Funds $ 3,462,000 $ — $ — $ 3,462,000 Corporate Bonds — 30,501,000 — 30,501,000 Government Securities 52,104,000 — — 52,104,000 Cash and Money Funds 164,000 — — 164,000 Total $ 55,730,000 $ 30,501,000 $ — $ 86,231,000 The following table sets forth by level, within the fair value hierarchy, the Company’s assets measured at fair value as of September 30, 2023: Fair Value Measurements Level 1 Level 2 Level 3 Total Exchange-Traded Funds $ 3,327,000 $ — $ — $ 3,327,000 Corporate Bonds — 33,160,000 — 33,160,000 Government Securities 47,672,000 — — 47,672,000 Cash and Money Funds 93,000 — — 93,000 Total $ 51,092,000 $ 33,160,000 $ — $ 84,252,000

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2023
Inventory Disclosure [Abstract]
Net Inventories	Net inventories at December 31, 2023 and September 30, 2023 consist of the following: December 31, 2023 September 30, 2023 Raw materials $ 37,896,000 $ 35,918,000 Work in process 22,759,000 22,923,000 Finished goods 11,554,000 12,686,000 $ 72,209,000 $ 71,527,000

Costs and Estimated Earnings _2

Costs and Estimated Earnings in Excess of Billings (Tables)	3 Months Ended
	Dec. 31, 2023
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 December 31, 2023 and September 30, 2023 consist of the following: December 31, 2023 September 30, 2023 Costs incurred on uncompleted contracts $ 21,196,000 $ 18,468,000 Estimated earnings 8,785,000 7,939,000 29,981,000 26,407,000 Billings to date 23,817,000 24,899,000 Costs and estimated earnings in excess of billings $ 6,164,000 $ 1,508,000

Earnings per Share Data (Tables

Earnings per Share Data (Tables)	3 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted income (loss) per share for the quarters ended December 31, 2023 and 2022: Quarter Ended December 31, 2023 2022 Net Income $ 4,326,000 $ 3,476,000 Common Shares: Weighted average common shares outstanding 14,658,000 14,658,000 Common stock equivalents — — Diluted shares outstanding 14,658,000 14,658,000 Basic: Net income per share $ 0.30 $ 0.24 Diluted: Net income per share $ 0.30 $ 0.24

Revenue Recognition and Relat_2

Revenue Recognition and Related Costs (Tables)	3 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Company's Net Revenue by Major Source	The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers Quarter Ended December 31, 2023 2022 Equipment sales recognized over time $ 9,833,000 $ 7,329,000 Equipment sales recognized at a point in time 7,181,000 11,498,000 Parts and component sales 7,796,000 5,901,000 Freight revenue 1,135,000 1,046,000 Other 73,000 51,000 Net revenue $ 26,018,000 $ 25,825,000

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 31, 2023
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 as of December 31, 2023 and September 30, 2023, is as follows: December 31, 2023 September 30, 2023 Operating lease ROU asset included in other long-term $ 235,000 $ 328,000 Current operating lease liability 235,000 328,000 Non-current — — Weighted average remaining lease term (in years) 0.75 0.51 Weighted average discount rate used in calculating ROU 5.0 % 4.5 %
Summary of Future Annual Minimum Lease Payments	Future annual minimum lease payments as of December 31, 2023 are as follows: Fiscal Year Annual Lease Payments 2024 (remaining nine months) $ 239,000 Less interest (4,000 ) Present value of lease liabilities $ 235,000

Marketable Securities and Fai_3

Marketable Securities and Fair Value Measurements - Company's Marketable Securities Measured at Fair Value (Detail) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Investment Holdings [Line Items]
Total	$ 86,231,000	$ 84,252,000
Exchange-Traded Funds [Member]
Investment Holdings [Line Items]
Total	3,462,000	3,327,000
Corporate Bonds [Member]
Investment Holdings [Line Items]
Total	30,501,000	33,160,000
Government Securities [Member]
Investment Holdings [Line Items]
Total	52,104,000	47,672,000
Cash and Money Funds [Member]
Investment Holdings [Line Items]
Total	164,000	93,000
Level 1 [Member]
Investment Holdings [Line Items]
Total	55,730,000	51,092,000
Level 1 [Member] | Exchange-Traded Funds [Member]
Investment Holdings [Line Items]
Total	3,462,000	3,327,000
Level 1 [Member] | Government Securities [Member]
Investment Holdings [Line Items]
Total	52,104,000	47,672,000
Level 1 [Member] | Cash and Money Funds [Member]
Investment Holdings [Line Items]
Total	164,000	93,000
Level 2 [Member]
Investment Holdings [Line Items]
Total	30,501,000	33,160,000
Level 2 [Member] | Corporate Bonds [Member]
Investment Holdings [Line Items]
Total	$ 30,501,000	$ 33,160,000

Marketable Securities and Fai_4

Marketable Securities and Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Net unrealized gains (losses)	$ 1,359,000	$ 2,332,000

Inventories - Net Inventories (

Inventories - Net Inventories (Detail) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Inventory, Net [Abstract]
Raw materials	$ 37,896,000	$ 35,918,000
Work in process	22,759,000	22,923,000
Finished goods	11,554,000	12,686,000
Inventories, net	$ 72,209,000	$ 71,527,000

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($)	3 Months Ended
	Dec. 31, 2023	Sep. 30, 2023
Inventory [Line Items]
Slow moving and obsolete inventory reserve	$ 9,915,000	$ 9,813,000
Three to Four Years Old Inventory [Member]
Inventory [Line Items]
Cost basis reduction in inventory, percentage	50%
Inventory, minimum time period on the shelf, years	3 years
Inventory, maximum time period on the shelf, years	4 years
Four to Five Years Old Inventory [Member]
Inventory [Line Items]
Cost basis reduction in inventory, percentage	75%
Inventory, minimum time period on the shelf, years	4 years
Inventory, maximum time period on the shelf, years	5 years
Greater Than Five Years Old Inventory [Member]
Inventory [Line Items]
Inventory, minimum time period on the shelf, years	5 years
Inventory valuation estimate	$ 0

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 ($)	Dec. 31, 2023	Sep. 30, 2023
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract]
Costs incurred on uncompleted contracts	$ 21,196,000	$ 18,468,000
Estimated earnings	8,785,000	7,939,000
Costs and estimated earnings on uncompleted contracts	29,981,000	26,407,000
Billings to date	23,817,000	24,899,000
Costs and estimated earnings in excess of billings	$ 6,164,000	$ 1,508,000

Earnings per Share Data - Basic

Earnings per Share Data - Basic and Diluted Earnings Per Share (Detail) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ 4,326,000	$ 3,476,000
Common Shares:
Weighted average common shares outstanding	14,658,000	14,658,000
Common Stock Equivalents	0	0
Diluted shares outstanding	14,658,000	14,658,000
Basic:
Net income per share	$ 0.3	$ 0.24
Diluted:
Net income per share	$ 0.3	$ 0.24

Earnings Per Share Data - Addit

Earnings Per Share Data - Additional Information (Detail)	3 Months Ended
	Dec. 31, 2023
2009 Plan [Member]
Share based payments, options, expiration date	Oct. 01, 2021

Customers with 10% (or greate_2

Customers with 10% (or greater) of Net Revenues - Additional information (Detail) - Customer Concentration Risk [Member] - Revenue [Member]	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Customer One [Member]
Percentage of concentration	20.30%	13.40%
Customer Two [Member]
Percentage of concentration		12.50%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
IncomeTaxes [Line Items]
Valuation Allowance	$ 0	$ 0

Revenue Recognition and Relat_3

Revenue Recognition and Related Costs - Disaggregation of Company's Net Revenue by Major Source (Detail) - USD ($)	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Net revenue	$ 26,018,000	$ 25,825,000
Equipment Sales [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Net revenue	9,833,000	7,329,000
Equipment Sales [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Net revenue	7,181,000	11,498,000
Parts and Component Sales [Member]
Disaggregation of Revenue [Line Items]
Net revenue	7,796,000	5,901,000
Freight Revenue [Member]
Disaggregation of Revenue [Line Items]
Net revenue	1,135,000	1,046,000
Other [Member]
Disaggregation of Revenue [Line Items]
Net revenue	$ 73,000	$ 51,000

Revenue Recognition and Relat_4

Revenue Recognition and Related Costs - Additional Information (Detail) - USD ($)	3 Months Ended
	Dec. 31, 2023	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Amortization period for incremental costs	1 year
Costs and estimated earnings in excess of billings	$ 6,164,000	$ 1,508,000
Contract assets collection period	1 year
Accounts receivable related to contracts with customers	$ 76,000	114,000
Current Liabilities [Member]
Disaggregation of Revenue [Line Items]
Customer deposits related to contracts with customers	$ 12,702,000	$ 6,815,000

Leases - Summary of Other Infor

Leases - Summary of Other Information Concerning the Company's Operating Lease (Detail) - USD ($)	Dec. 31, 2023	Sep. 30, 2023	Mar. 31, 2023	Oct. 09, 2020	Aug. 28, 2020
Lessee, Lease, Description [Line Items]
Current operating lease liability	$ 235,000	$ 328,000
New Lease Agreement [Member]
Lessee, Lease, Description [Line Items]
Operating lease ROU asset included in other long-term assets	235,000	328,000	$ 352,000	$ 254,000	$ 970,000
Blaw Knox Product Line From Volvo CE [Member] | New Lease Agreement [Member]
Lessee, Lease, Description [Line Items]
Current operating lease liability	235,000	328,000
Non-current operating lease liability	$ 0	$ 0
Weighted average remaining lease term (in years)	9 months	6 months 3 days
Weighted average discount rate used in calculating ROU asset	5%	4.50%

Leases - Summary of Future Annu

Leases - Summary of Future Annual Minimum Lease Payments (Detail)	Dec. 31, 2023 USD ($)
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract]
2024 (remaining nine months)	$ 239,000
Less interest	(4,000)
Present value of lease liabilities	$ 235,000

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($)		3 Months Ended
	Aug. 28, 2020	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023	Mar. 31, 2023	Oct. 31, 2021	Oct. 09, 2020
Lessee, Lease, Description [Line Items]
Operating Lease, Expense			$ 107,000
Operating lease term	3 years
Operating leases paid in cash		$ 109,000	$ 133,000
New Lease Agreement [Member]
Lessee, Lease, Description [Line Items]
Assets	$ 970,000	235,000		$ 328,000	$ 352,000		$ 254,000
New Lease Agreement [Member] | Square Footage Leased Event [Member]
Lessee, Lease, Description [Line Items]
Decrease In Leasing Arrangements Right Of Use Asset And Lease Liability		$ 39,000
New Lease Agreement [Member] | Renewal Event [Member]
Lessee, Lease, Description [Line Items]
Assets						$ 39,000
Blaw Knox Product Line From Volvo CE [Member] | New Lease Agreement [Member]
Lessee, Lease, Description [Line Items]
Operating lease term							1 year
Operating lease liability date of expiry	Aug. 31, 2024

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended
	Dec. 31, 2023 SEGMENT
Segment Reporting [Abstract]
Number of repotable segments	1