Document and Entity Information
Document and Entity Information - $ / shares | 3 Months Ended | ||
Nov. 30, 2021 | Dec. 17, 2021 | Aug. 31, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Nov. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 1-11288 | ||
Entity Registrant Name | ENERPAC TOOL GROUP CORP. | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-0168610 | ||
Entity Address, Address Line One | N86 W12500 WESTBROOK CROSSING | ||
Entity Address, City or Town | MENOMONEE FALLS | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53051 | ||
City Area Code | 262 | ||
Local Phone Number | 293-1500 | ||
Title of 12(b) Security | Class A common stock, $0.20 par value per share | ||
Trading Symbol | EPAC | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 60,319,046 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | Q1 | ||
Entity Central Index Key | 0000006955 | ||
Current Fiscal Year End Date | --08-31 | ||
Common Class A | |||
Document Information [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ 0.20 | $ 0.20 | |
Common Stock, Shares Authorized | 168,000,000 | 168,000,000 | |
Common Stock, Shares, Issued | 83,092,053 | 83,021,654 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Income Statement [Abstract] | ||
Net Sales | $ 130,903 | $ 119,430 |
Cost of products sold | 71,277 | 64,166 |
Gross profit | 59,626 | 55,264 |
Selling, General and Administrative Expense | 48,477 | 43,710 |
Amortization of intangible assets | 2,005 | 2,136 |
Restructuring Charges | 2,737 | 210 |
Impairment & divestiture (benefits) charges | 0 | 139 |
Operating profit | 6,407 | 9,069 |
Financing costs, net | 961 | 1,716 |
Other expense, net | 480 | 273 |
Income tax (benefit) expense | 1,781 | 2,258 |
Net Earnings from Continuing Operations | 3,185 | 4,822 |
Net (Loss) Earnings from Discontinued Operations | (397) | (224) |
Net (loss) earnings | $ 2,788 | $ 4,598 |
Earnings (loss) per share | ||
(Loss) Earnings per share from Continuing Operations, Per Basic Share | $ 0.05 | $ 0.08 |
(Loss) Earnings per share from Continuing Operations, Per Diluted Share | 0.05 | 0.08 |
(Loss) Earnings per share from Discontinued Operations, Per Basic Shares | (0.01) | 0 |
(Loss) Earnings per share from Discontinued Operations, Per Diluted Share | (0.01) | 0 |
(Loss) Earnings Per Share, Basic | 0.05 | 0.08 |
(Loss) Earnings Per Share, Diluted | $ 0.05 | $ 0.08 |
Weighted average common shares outstanding | ||
Weighted average common shares outstanding - basic | 60,261 | 59,811 |
Weighted Average Common Shares outstanding - diluted | 60,621 | 60,092 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total | $ 4,966 | $ 7,080 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Net (loss) earnings | $ 2,788 | $ 4,598 |
Other comprehensive (loss) income, net of tax | ||
Foreign currency translation adjustments | (10,380) | 1,400 |
Pension and other postretirement benefit plans | 336 | 229 |
Other Comprehensive (Loss) Income, Net of Tax | (10,044) | 1,629 |
Comprehensive (loss) income | $ (7,256) | $ 6,227 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 126,533 | $ 140,352 |
Accounts receivable, net | 112,293 | 103,233 |
Inventories, net | 83,614 | 75,347 |
Other current assets | 38,649 | 38,503 |
Total current assets | 361,089 | 357,435 |
Property, plant and equipment, net | 47,732 | 48,590 |
Goodwill | 273,297 | 277,593 |
Other intangible assets, net | 51,400 | 54,545 |
Other long-term assets | 78,950 | 82,084 |
Total assets | 812,468 | 820,247 |
Current liabilities | ||
Trade accounts payable | 63,474 | 61,958 |
Accrued compensation and benefits | 17,712 | 21,597 |
Income taxes payable | 5,378 | 5,674 |
Other current liabilities | 45,072 | 45,535 |
Total current liabilities | 131,636 | 134,764 |
Long-term debt, net | 175,000 | 175,000 |
Deferred Income Taxes | 4,354 | 4,397 |
Pension and postretirement benefit liabilities | 17,356 | 17,783 |
Other long-term liabilities | 74,316 | 76,105 |
Total liabilities | 402,662 | 408,049 |
Shareholders’ equity | ||
Class A common stock, $0.20 par value per share, authorized 168,000,000 shares, issued 83,092,053 and 83,021,654 shares, respectively | 16,622 | 16,604 |
Additional paid-in capital | 207,817 | 202,971 |
Treasury stock, at cost, 22,799,230 shares | (667,732) | (667,732) |
Retained earnings | 956,127 | 953,339 |
Accumulated other comprehensive loss | (103,028) | (92,984) |
Stock held in trust | (3,092) | (3,067) |
Deferred compensation liability | 3,092 | 3,067 |
Total shareholders' equity | 409,806 | 412,198 |
Total liabilities and shareholders’ equity | $ 812,468 | $ 820,247 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Nov. 30, 2021 | Aug. 31, 2021 |
Treasury Stock, Shares | 22,799,230 | 22,799,230 |
Common Class A | ||
Common Stock, Shares Authorized | 168,000,000 | 168,000,000 |
Common Stock, Shares, Issued | 83,092,053 | 83,021,654 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Operating Activities | ||
Net (loss) earnings | $ 2,788 | $ 4,598 |
Net (Loss) Earnings from Discontinued Operations | (397) | (224) |
Net Earnings from Continuing Operations | 3,185 | 4,822 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Impairment & divestiture (benefits) charges, net of tax | 0 | 139 |
Depreciation and amortization | 5,175 | 5,458 |
Stock-based compensation expense | 6,147 | 2,581 |
Provision for (benefit from) deferred income taxes | 423 | (264) |
Amortization of debt issuance costs | 120 | 120 |
Other non-cash (benefits) charges | (13) | 226 |
Changes in components of working capital and other: | ||
Accounts receivable | (10,801) | (6,268) |
Inventories | (9,823) | (1,387) |
Trade accounts payable | 2,358 | 1,847 |
Prepaid expenses and other assets | 140 | (6,297) |
Income tax accounts | 682 | 2,466 |
Accrued compensation and benefits | (3,509) | 379 |
Other accrued liabilities | 1,975 | 5,070 |
Cash provided by (used in) operating activities, Continuing Operations | (3,941) | 8,892 |
Cash (used in) provided by operating activities, Discontinued Operations | (785) | (225) |
Cash (Used in) Provided By Operating Activities | (4,726) | 8,667 |
Investing Activities | ||
Capital expenditures | (3,293) | (1,905) |
Proceeds from sale of property, plant and equipment | 133 | 47 |
Cash used in investing activities, Continuing Operations | (3,160) | (1,858) |
Cash Provided by Investing Activities, Discontinued Operations | 0 | 0 |
Cash Provided by Investing Activities | (3,160) | (1,858) |
Financing Activities | ||
Borrowings on Revolving Credit | 5,000 | 10,000 |
Principal Repayment on Revolving Credit Facility | (5,000) | (10,000) |
Taxes paid related to the net share settlement of equity awards | (1,393) | (275) |
Stock option exercises and other | 85 | 101 |
Cash dividend | (2,409) | (2,394) |
Net Cash Used in Financing Activities, Continuing Operations | (3,717) | (2,568) |
Cash Used in Financing Activities, Discontinued Operations | 0 | 750 |
Cash used in financing activities | (3,717) | (1,818) |
Effect of exchange rate changes on cash | (2,216) | 1,407 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | (13,819) | 6,398 |
Cash and cash equivalents - beginning of period | 140,352 | 152,170 |
Cash and cash equivalents - end of period | $ 126,533 | $ 158,568 |
Basis of Presentation Schedule
Basis of Presentation Schedule of Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Nov. 30, 2021 | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss The following is a summary of the Company's accumulated other comprehensive loss (in thousands): November 30, 2021 August 31, 2021 Foreign currency translation adjustments $ 80,366 $ 69,986 Pension and other postretirement benefit plans, net of tax 22,662 22,998 Accumulated other comprehensive loss $ 103,028 $ 92,984 |
Earnings per Share and Sharehol
Earnings per Share and Shareholders' Equity Shareholders Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Stock held in trust [member] [Member] | Deferred Compensation, Share-based Payments [Member] |
Stock Issued During Period, Shares, New Issues | 82,594 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 359,226 | $ 16,519 | $ 193,492 | $ (667,732) | $ 917,671 | $ (100,724) | $ (2,562) | $ 2,562 |
Net (loss) earnings | 4,598 | 4,598 | ||||||
Other Comprehensive (Loss) Income, Net of Tax | 1,629 | 1,629 | ||||||
Stock Issued During Period, Shares, Employee Benefit Plan | 6 | |||||||
Stock Issued During Period, Value, Employee Benefit Plan | 101 | $ 1 | 100 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 20 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 0 | $ 4 | (4) | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,581 | 2,581 | ||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | (275) | (275) | ||||||
Stock Issued To Acquired For And Distributed From Rabbi Trust | 5 | |||||||
Stock Value Issued to Acquired For and Distributed From Rabbi Trust | 86 | $ 1 | 85 | (81) | 81 | |||
Stock Issued During Period, Shares, New Issues | 82,625 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 367,946 | $ 16,525 | 195,979 | (667,732) | 922,269 | (99,095) | (2,643) | 2,643 |
Stock Issued During Period, Shares, New Issues | 83,022 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 412,198 | $ 16,604 | 202,971 | (667,732) | 953,339 | (92,984) | (3,067) | 3,067 |
Adoption of Accounting Standards | $ 953,339 | |||||||
Stockholders' Equity Note Disclosure [Text Block] | The following table illustrates the changes in the balances of each component of shareholders' equity for the three months ended November 30, 2021 (in thousands): Common Stock Additional Treasury Retained Accumulated Stock Deferred Total Issued Amount Balance at August 31, 2021 83,022 $ 16,604 $ 202,971 $ (667,732) $ 953,339 $ (92,984) $ (3,067) $ 3,067 $ 412,198 Net earnings — — — — 2,788 — — — 2,788 Other comprehensive income, net of tax — — — — — (10,044) — — (10,044) Stock contribution to employee benefit plans and other 2 1 84 — — — — — 85 Restricted stock awards 67 17 (17) — — — — — — Stock based compensation expense — — 6,147 — — — — — 6,147 Tax effect related to net share settlement of equity awards — — (1,393) — — — — — (1,393) Stock issued to, acquired for and distributed from rabbi trust 1 — 25 — — — (25) 25 25 Balance at November 31, 2021 83,092 $ 16,622 $ 207,817 $ (667,732) $ 956,127 $ (103,028) $ (3,092) $ 3,092 $ 409,806 The following table illustrates the changes in the balances of each component of shareholders' equity for the three months ended November 30, 2020 (in thousands): Common Stock Additional Treasury Retained Accumulated Stock Deferred Total Issued Amount Balance at August 31, 2020 82,594 $ 16,519 $ 193,492 $ (667,732) $ 917,671 $ (100,724) $ (2,562) $ 2,562 $ 359,226 Net earnings — — — — 4,598 — — — 4,598 Other comprehensive income, net of tax — — — — — 1,629 — — 1,629 Stock contribution to employee benefit plans and other 6 1 100 — — — — — 101 Restricted stock awards 20 4 (4) — — — — — — Stock based compensation expense — — 2,581 — — — — — 2,581 Tax effect related to net share settlement of equity awards — — (275) — — — — — (275) Stock issued to, acquired for and distributed from rabbi trust 5 1 85 — — — (81) 81 86 Balance at November 30, 2020 82,625 $ 16,525 $ 195,979 $ (667,732) $ 922,269 $ (99,095) $ (2,643) $ 2,643 $ 367,946 | |||||||
Net (loss) earnings | $ 2,788 | 2,788 | ||||||
Other Comprehensive (Loss) Income, Net of Tax | (10,044) | (10,044) | ||||||
Stock Issued During Period, Shares, Employee Benefit Plan | 2 | |||||||
Stock Issued During Period, Value, Employee Benefit Plan | 85 | $ 1 | 84 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 67 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 0 | $ 17 | (17) | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 6,147 | 6,147 | ||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | (1,393) | (1,393) | ||||||
Stock Issued To Acquired For And Distributed From Rabbi Trust | 1 | |||||||
Stock Value Issued to Acquired For and Distributed From Rabbi Trust | 25 | $ 0 | 25 | (25) | 25 | |||
Stock Issued During Period, Shares, New Issues | 83,092 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 409,806 | $ 16,622 | $ 207,817 | $ (667,732) | $ 956,127 | $ (103,028) | $ (3,092) | $ 3,092 |
Adoption of Accounting Standards | $ 956,127 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation General Enerpac Tool Group Corp. ("Company") is a premier industrial tools and services company serving a broad and diverse set of customers in more than 100 countries. The Company has two operating segments, Industrial Tools & Service ("IT&S") and Other, with the IT&S segment representing the only reportable segment. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated balance sheet data as of August 31, 2021 was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes in the Company’s fiscal 2021 Annual Report on Form 10-K. In the opinion of management, all adjustments considered necessary for a fair statement of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for the three months ended November 30, 2021 are not necessarily indicative of the results that may be expected for the entire fiscal year ending August 31, 2022. The COVID-19 pandemic has negatively impacted, and is likely to continue to negatively impact to varying extents, the global economy. The Company's operating results and financial position will continue to be subject to the general economic conditions created by the pandemic, including the current supply chain and logistics environment caused by the sharp increase in demand as global economies recover. The duration and extent to which the pandemic's effects impact the Company's business will depend on future developments which still remain uncertain. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and amending and clarifying existing guidance. The Company adopted this guidance on September 1, 2021. The adoption did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends ASC 805 to require an acquirer to, at the date of acquisition, recognize and measure contract assets and contract liabilities acquired in accordance with ASU 2014-9, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022. The Company will adopt this guidance in the event of a business combination subsequent to the effective date of the guidance. In March 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for a limited time to ease the potential burden of accounting for reference rate reform on financial reporting. This guidance applies to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates. The guidance is effective beginning on March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01 allowing entities to apply certain aspects of ASC 848 (previously ASU 2020-4) to all derivative instruments that undergo a modification of the interest rate used for discounting, margining or contract price alignment as a result of the reference reform. The guidance is also effective through December 31, 2022. The Company has not utilized any of the optional expedients or exceptions available under this guidance. The Company will continue to assess whether this guidance is applicable throughout the effective period. Accumulated Other Comprehensive Loss The following is a summary of the Company's accumulated other comprehensive loss (in thousands): November 30, 2021 August 31, 2021 Foreign currency translation adjustments $ 80,366 $ 69,986 Pension and other postretirement benefit plans, net of tax 22,662 22,998 Accumulated other comprehensive loss $ 103,028 $ 92,984 Property Plant and Equipment The following is a summary of the Company's components of property, plant and equipment (in thousands): November 30, 2021 August 31, 2021 Land, buildings and improvements $ 16,488 $ 16,617 Machinery and equipment 145,458 145,541 Gross property, plant and equipment 161,946 162,158 Less: Accumulated depreciation (114,214) (113,568) Property, plant and equipment, net $ 47,732 $ 48,590 |
Revenue Recognition Revenue fro
Revenue Recognition Revenue from Contract Customers (Notes) | 3 Months Ended |
Nov. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 2. Revenue from Contracts with Customers Nature of Goods and Services The Company generates its revenue under two principal activities, which are discussed below: Product Sales: Sales of tools, heavy-lifting solutions, and rope and cable solutions are recorded when control is transferred to the customer (i.e., performance obligation has been satisfied). For the majority of the Company’s product sales, revenue is recognized at a point in time when control of the product is transferred to the customer, which generally occurs when the product is shipped from the Company to the customer. For certain other products that are highly customized and have a limited alternative use, and for which the Company has an enforceable right of reimbursement for performance completed to date, revenue is recognized over time. We consider the input measure (efforts-expended or cost-to-cost) or output measure as a fair measure of progress for the recognition of over-time revenue associated with these custom products. For a majority of the Company’s custom products, machine hours and labor hours (efforts-expended measurement) are used as a measure of progress. Service & Rental Sales : Service contracts consist of providing highly trained technicians to perform bolting, technical services, machining and joint-integrity work for our customers. These revenues are recognized over time as our customers simultaneously receive and consume the benefits provided by the Company. We consider the input measure (efforts-expended or cost-to-cost) or output measure as a fair measure of progress for the recognition of over-time revenue associated with service contracts. For a majority of the Company’s service contracts, labor hours (efforts-expended measurement) is used as the measure of progress when it is determined to be a better depiction of the transfer of control to the customer due to the timing and pattern of labor hours incurred. Revenue from rental contracts (less than a year and non-customized products) is generally recognized ratably over the contract term, depicting the customer’s consumption of the benefit related to the rental equipment. Disaggregated Revenue and Performance Obligations The Company disaggregates revenue from contracts with customers by reportable segment and product line and by the timing of when goods and services are transferred. See Note 12, "Segment Information" for information regarding our revenue disaggregation by reportable segment and product line. The following table presents information regarding revenues disaggregated by the timing of when goods and services are transferred (in thousands): Three Months Ended November 30, 2021 2020 Revenues recognized at point in time $ 100,174 $ 86,780 Revenues recognized over time 30,729 32,650 Total $ 130,903 $ 119,430 Contract Balances The Company's contract assets and liabilities are as follows (in thousands): November 30, 2021 August 31, 2021 Receivables, which are included in accounts receivable, net $ 112,293 $ 103,233 Contract assets, which are included in other current assets 2,428 8,551 Contract liabilities, which are included in other current liabilities 3,939 3,410 Receivables: The Company performs its obligations under a contract with a customer by transferring goods or services in exchange for consideration from the customer. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable for the Company is established. Accounts receivable, net is recorded at face amount of customer receivables less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for expected losses as a result of customers’ inability to make required payments. Management evaluates the aging of customer receivable balances, the financial condition of its customers, historical trends and the time outstanding of specific balances to estimate the amount of receivables that may not be collected in the future and records the appropriate provision. The allowance for doubtful acco unts was $4.3 million and $4.2 million at at November 30, 2021 and August 31, 2021, respectively. As indicated in the "Concentration of Credit Risk" section below, the Company continues to negotiate terms to secure payment with an agent whose continued payment delinquency has created a concentration of credit risk. The allowance for doubtful accounts as of November 30, 2021 represents management's best estimate of the amount probable of collection and considers various factors including, but not limited to, (i) the lack of payment in the nine-month period ended November 30, 2021, (ii) our due diligence on balances due to our agents from their end customers related to sales of our services and products and the known markup on those sales from agent to end customer, (iii) the status of ongoing negotiations with the agent to secure payments and (iv) legal recourse available to secure payment. Actual collections from the agent may differ from the Company's estimate. Contract Assets: Contract assets relate to the Company’s rights to consideration for work completed but not billed as of the reporting date on contracts with customers. The contract assets are transferred to receivables when the rights become unconditional. The Company has contract assets on contracts that are generally long-term and have revenues that are recognized over time. Contract Liabilities: As of November 30, 2021, the Company had certain contracts where there were unsatisfied performance obligations and the Company had received cash consideration from customers before the performance obligations were satisfied . The majority of these contracts relate to long-term customer contracts (project durations of greater than three months) and are recognized over time. The Company estimates that the $3.9 million will be recognized in net sales from satisfying those performance obligations within the next twelve months, with an immaterial amount recognized in periods after. Concentration of Credit Risk: The Company sells products and services through distributors and agents. In certain jurisdictions, those third parties represent a significant portion of our sales in their respective country which can pose a concentration of credit risk if these larger distributors or agents are not timely in their payments. As of November 30, 2021, the Company was exposed to a concentration of credit risk as a result of the continued payment delinquency of one of our agents with whom we continue to negotiate a plan to secure payments. This agent's accounts receivable represe nt 10.6% of the Company's outstanding accounts receivable. Timing of Performance Obligations Satisfied at a Point in Time: The Company evaluates when the customer obtains control of the product based on shipping terms, as control will transfer, depending upon such terms, at different points between the Company's manufacturing facility or warehouse and the customer’s location. The Company considers control to have transferred upon shipment or delivery because (i) the Company has a present right to payment at that time; (ii) the legal title has been transferred to the customer; (iii) the Company has transferred physical possession of the product to the customer; and (iv) the customer has significant risks and rewards of ownership of the product. Variable Consideration: The Company estimates whether it will be subject to variable consideration under the terms of the contract and includes its estimate of variable consideration in the transaction price based on the expected value method when it is deemed probable of being realized based on historical experience and trends. Types of variable consideration may include rebates, incentives and discounts, among others, which are recorded as a reduction to net sales at the time when control of a performance obligation is transferred to the customer. Practical Expedients & Exemptions: The Company elected to expense the incremental cost to obtaining a contract when the amortization period for such contracts would be one year or less. The Company does not disclose the value of unperformed obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. |
Restructuring Charges (Notes)
Restructuring Charges (Notes) | 3 Months Ended |
Nov. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Note 3. Restructuring Charges The Company has undertaken or committed to various restructuring initiatives, including workforce reductions, leadership changes, plant consolidations to reduce manufacturing overhead, satellite office closures, the continued movement of production and product sourcing to low-cost alternatives and the centralization and standardization of certain administrative functions. Liabilities for severance are generally to be paid within twelve months, while future lease payments related to facilities vacated as a result of restructuring are to be paid over the underlying remaining lease terms. During fiscal 2019, the Company announced a restructuring plan focused on (i) the integration of the Enerpac and Hydratight businesses (IT&S segment), (ii) the strategic exit of certain commodity-type services in our North America Services operations (IT&S segment) and (iii) driving efficiencies within the overall corporate structure. In the third quarter of fiscal 2020, the Company announced the expansion and revision of this plan, which further simplified and flattened the corporate structure through elimination of redundancies between the segment and corporate functions, while enhancing our commercial and marketing processes to become even closer to our customers. In November 2021, upon assessment of the the Company's operating structure by the Company's new President & Chief Executive Officer, the Company recorded $2.7 million of charges in the three months ended November 30, 2021 in order to further simplify and streamline the organizational structure. Restructuring charges associated with expansion of the fiscal 2019 plan were $0.1 million in the three months ended November 30, 2020. The following summarizes restructuring reserve activity (which excludes $0.7 million and $0.5 million of charges for IT&S and Corporate, respectively, associated with the accelerated vesting of equity awards which has no impact on the restructuring reserve) for the IT&S segment and Corporate (in thousands): Three Months Ended November 30, 2021 IT&S Corporate Balance as of August 31, 2021 $ 1,737 $ 26 Restructuring charges 874 695 Cash payments (609) (8) Impact of changes in foreign currency rates (46) — Balance as of November 30, 2021 $ 1,956 $ 713 Three Months Ended November 30, 2020 IT&S Corporate Balance as of August 31, 2020 $ 1,443 $ 267 Restructuring charges 66 — Cash payments (432) (229) Impact of changes in foreign currency rates (4) — Balance as of November 30, 2020 $ 1,073 $ 38 Total restructuring charges (inclusive of the Other segment) were $2.7 million and $0.2 million in t he three months ended November 30, 2021 and 2020, respectively, being reported in "Restructuring charges." There were no restructuring charges related to Cortland U.S. (Other segment) in three months ended November 30, 2021. Restructuring expenses for Cortland U.S. were $0.1 million in the three months ended November 30, 2020 . Restructuring reserves for Cortland U.S. were $0.1 million |
Discontinued Operations & Other
Discontinued Operations & Other Divestiture Charges Discontinued Operations & Divestiture Activities (Notes) | 3 Months Ended |
Nov. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 4. Discontinued Operations On October 31, 2019, as part of our overall strategy to become a pure-play industrial tools and services company, the Company completed the sale of the businesses comprising its former Engineered Components & Systems ("EC&S") segment. This divestiture was considered part of our strategic shift to become a pure-play industrial tools and services company, and therefore, the results of operations are recorded as a component of "Loss from discontinued operations, net of income taxes" in the Condensed Consolidated Statements of Operations for all periods presented. A component of the purchase price was payable in four quarterly installments of which the final $0.7 million was received in the three months ended November 30, 2020 (this final payment was received greater than one year from the divestiture date and, as such, is reflected in "Cash provided by financing activities - discontinued operations" within the Condensed Consolidated Statements of Cash Flows). All other discontinued operations activity included within the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Cash Flows for the periods presented relate to impacts from certain retained liabilities. The following represents the detail of "Loss from discontinued operations, net of income taxes" within the Condensed Consolidated Statements of Operations (in thousands) : Three Months Ended November 30, 2021 2020 Selling, general and administrative expenses $ 503 $ 295 Operating loss (503) (295) Other loss, net — — Loss before income tax benefit (503) (295) Income tax benefit (106) (71) Loss from discontinued operations, net of income taxes $ (397) $ (224) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Nov. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 5. Goodwill, Intangible Assets and Long-Lived Assets Changes in the gross carrying value of goodwill and intangible assets result from changes in foreign currency exchange rates, business acquisitions, divestitures and impairment charges. The changes in the carrying amount of goodwill for the three months ended November 30, 2021 are as follows (in thousands): IT&S Other Total Balance as of August 31, 2021 $ 265,087 $ 12,506 $ 277,593 Impact of changes in foreign currency rates (4,296) — (4,296) Balance as of November 30, 2021 $ 260,791 $ 12,506 $ 273,297 The gross carrying value and accumulated amortization of the Company’s intangible assets are as follows (in thousands): November 30, 2021 August 31, 2021 Weighted Average Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Customer relationships 14 $ 140,576 $ 115,162 $ 25,414 $ 142,453 $ 114,463 $ 27,990 Patents 12 14,252 13,497 755 14,492 13,688 804 Trademarks and tradenames 12 3,255 2,373 882 3,307 2,391 916 Indefinite lived intangible assets: Tradenames N/A 24,349 — 24,349 24,835 — 24,835 $ 182,432 $ 131,032 $ 51,400 $ 185,087 $ 130,542 $ 54,545 |
Product Warranty Costs
Product Warranty Costs | 3 Months Ended |
Nov. 30, 2021 | |
Guarantees [Abstract] | |
Product Warranty Costs | Note 6. Product Warranty Costs The Company generally offers its customers an assurance warranty on products sold, although warranty periods may vary by product type and application. The reserve for future warranty claims, which is recorded within the "Other current liabilities" line in the Condensed Consolidated Balance Sheets, is based on historical claim rates and current warranty cost experience. The following summarizes the changes in product warranty reserves for the three months ended November 30, 2021 and 2020, respectively (in thousands): Three Months Ended November 30, 2021 2020 Beginning balance $ 1,300 $ 892 Provision for warranties 395 464 Warranty payments and costs incurred (230) (399) Impact of changes in foreign currency rates (31) 2 Ending balance $ 1,434 $ 959 |
Debt
Debt | 3 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. Debt The following is a summary of the Company’s long-term indebtedness (in thousands): November 30, 2021 August 31, 2021 Senior Credit Facility Revolver $ 175,000 $ 175,000 Total long-term debt, less current maturities $ 175,000 $ 175,000 Senior Credit Facility In March 2019, the Company entered into a senior credit facility (the “Senior Credit Facility”) with a syndicate of banks, to among other things, (i) expand the multi-currency revolving line of credit from $300 million to $400 million, (ii) extend the maturity of the Company's Senior Credit Facility from May 2020 to March 2024 (no required principal payments prior to maturity) and (iii) modify certain other provisions of the credit agreement including a reduction in pricing. The Senior Credit Facility was initially comprised of a $400 million revolving line of credit and a $200 million term loan. At November 30, 2021, there was $175.0 million of borrowings under the revolving line of credit and $219.8 million of available borrowing capacity under the revolving line of credit after reduction for $5.2 million of outstanding letters of credit issued under the Senior Credit Facility. The Senior Credit Facility also provides the option for future expansion, subject to certain conditions, through a $300 million accordion and/or a $200 million incremental term loan. Borrowings under the Senior Credit Facility bear interest at a variable rate based on LIBOR or a base rate, ranging from 1.125% to 2.00% in the case of loans bearing interest at LIBOR and from 0.125% to 1.00% in the case of loans bearing interest at the base rate. In addition, a non-use fee is payable quarterly on the average unused amount of the revolving line of credit ranging from 0.15% to 0.3% per annum, based on the Company's net leverage. The Senior Credit Facility contains two financial covenants, which are a maximum leverage ratio of 3.75:1 and a minimum interest coverage ratio of 3.5:1. Certain transactions lead to adjustments to the underlying ratios, including an increase to the leverage ratio from 3.75 to 4.25 during the four fiscal quarters after a significant acquisition. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Nov. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 8. Fair Value Measurements The Company assesses the inputs used to measure the fair value of financial assets and liabilities using a three-tier hierarchy. Level 1 inputs include unadjusted quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing an asset or liability. The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable and variable rate long-term debt approximated book value at both November 30, 2021 and August 31, 2021 due to their short-term nature and/or the fact that the interest rates approximated market rates. Foreign currency exchange contracts and interest rate swaps are recorded at fair value. The fair value of the Company's foreign currency exchange contracts was a net liability of less than $0.1 million at both November 30, 2021 and August 31, 2021. T |
Derivatives
Derivatives | 3 Months Ended |
Nov. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value [Text Block] | Note 9. Derivatives All derivatives are recognized in the balance sheet at their estimated fair value. The Company does not enter into derivatives for speculative purposes. Changes in the fair value of derivatives (not designated as hedges) are recorded in earnings along with the gain or loss on the hedged asset or liability. The Company is exposed to market risk for changes in foreign currency exchange rates due to the global nature of its operations. In order to manage this risk, the Company utilizes foreign currency exchange contracts to reduce the exchange rate risk associated with recognized non-functional currency balances. The effects of changes in exchange rates are reflected concurrently in earnings for both the fair value of the foreign currency exchange contracts and the related non-functional currency asset or liability. These derivative gains and losses offset foreign currency gains and losses from the related revaluation of non-functional currency assets and liabilities (amounts included in "Other (income) expense" in the Condensed Consolidated Statements of Operations). The U.S. dollar equivalent notional value of these short duration foreign currency exchange contracts w as $13.6 million and $16.0 million at November 30, 2021 and August 31, 2021, respectively. The fair value of outstanding foreign currency exchange contrac ts was a net liability of less than $0.1 million at both November 30, 2021 and August 31, 2021. Net foreign currency gain (loss) (included in "Other (income) expense" in the Condensed Consolidated Statements of Operations) related to these derivative instruments were as follows (in thousands): Three Months Ended November 30, 2021 2020 Foreign currency loss, net $ (181) $ (49) The Company was a fixed-rate payor on an interest rate swap contract that fixed the LIBOR-based index used to determine the interest rates charged on a total of $100.0 million of the Company's LIBOR-based variable rate borrowings on the revolving line of credit. The contract carried a fixed rate of 0.259% and expired in August 2021. The swap agreement qualified as a hedging instrument and was designated as a cash flow hedge of forecasted LIBOR-based interest payments. The change in the fair value of the interest rate swap, a gain of less than $0.1 million in the three months ended November 30, 2020 was |
Capital Stock and Share Repurch
Capital Stock and Share Repurchase | 3 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
Capital Stock and Share Repurchase | Note 10. Earnings per Share and Shareholders' Equity The Company's Board of Directors has authorized the repurchase of shares of the Company's common stock under publicly announced share repurchase programs. Since the inception of the initial share repurchase program in fiscal 2012, the Company has repurchased 22,799,230 shares of common stock for $667.7 million. As of November 30, 2021, the maximum number of shares that may yet be purchased under the programs is 5,200,770 shares. The Company did not repurchase shares in either of the three months ended November 30, 2021 or 2020. The reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share amounts): Three Months Ended November 30, 2021 2020 Numerator: Net earnings from continuing operations $ 3,185 $ 4,822 Net loss from discontinued operations (397) (224) Net earnings $ 2,788 $ 4,598 Denominator: Weighted average common shares outstanding - basic 60,261 59,811 Net effect of dilutive securities - stock based compensation plans 360 281 Weighted average common shares outstanding - diluted 60,621 60,092 Earnings per common share from continuing operations: Basic $ 0.05 $ 0.08 Diluted $ 0.05 $ 0.08 Loss per common share from discontinued operations: Basic $ (0.01) $ 0.00 Diluted $ (0.01) $ 0.00 Earnings per common share:* Basic $ 0.05 $ 0.08 Diluted $ 0.05 $ 0.08 Anti-dilutive securities from stock based compensation plans (excluded from earnings per share calculation) 846 1,490 *The total of Earnings per share from continuing operations and Loss per share from discontinued operations may not equal Earnings per share due to rounding. The following table illustrates the changes in the balances of each component of shareholders' equity for the three months ended November 30, 2021 (in thousands): Common Stock Additional Treasury Retained Accumulated Stock Deferred Total Issued Amount Balance at August 31, 2021 83,022 $ 16,604 $ 202,971 $ (667,732) $ 953,339 $ (92,984) $ (3,067) $ 3,067 $ 412,198 Net earnings — — — — 2,788 — — — 2,788 Other comprehensive income, net of tax — — — — — (10,044) — — (10,044) Stock contribution to employee benefit plans and other 2 1 84 — — — — — 85 Restricted stock awards 67 17 (17) — — — — — — Stock based compensation expense — — 6,147 — — — — — 6,147 Tax effect related to net share settlement of equity awards — — (1,393) — — — — — (1,393) Stock issued to, acquired for and distributed from rabbi trust 1 — 25 — — — (25) 25 25 Balance at November 31, 2021 83,092 $ 16,622 $ 207,817 $ (667,732) $ 956,127 $ (103,028) $ (3,092) $ 3,092 $ 409,806 The following table illustrates the changes in the balances of each component of shareholders' equity for the three months ended November 30, 2020 (in thousands): Common Stock Additional Treasury Retained Accumulated Stock Deferred Total Issued Amount Balance at August 31, 2020 82,594 $ 16,519 $ 193,492 $ (667,732) $ 917,671 $ (100,724) $ (2,562) $ 2,562 $ 359,226 Net earnings — — — — 4,598 — — — 4,598 Other comprehensive income, net of tax — — — — — 1,629 — — 1,629 Stock contribution to employee benefit plans and other 6 1 100 — — — — — 101 Restricted stock awards 20 4 (4) — — — — — — Stock based compensation expense — — 2,581 — — — — — 2,581 Tax effect related to net share settlement of equity awards — — (275) — — — — — (275) Stock issued to, acquired for and distributed from rabbi trust 5 1 85 — — — (81) 81 86 Balance at November 30, 2020 82,625 $ 16,525 $ 195,979 $ (667,732) $ 922,269 $ (99,095) $ (2,643) $ 2,643 $ 367,946 |
Income Taxes
Income Taxes | 3 Months Ended |
Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The Company's glob al operations, acquisition activity (as applicable) and specific tax attributes provide opportunities for continuous global tax planning initiatives to maximize tax credits and deductions. Comparative earnings before income taxes, income tax expense and effective income tax rates from continuing operations are as follows (in thousands): Three Months Ended November 30, 2021 2020 Earnings from continuing operations before income tax expense $ 4,966 $ 7,080 Income tax expense 1,781 2,258 Effective income tax rate 35.9 % 31.9 % The Company’s earnings from continuing operations before income taxes include earnings from both U.S. and foreign jurisdictions. Though most foreign tax rates are now in line with the U.S. tax rate of 21%, the annual effective tax rate is impacted by withholding taxes, losses in jurisdictions whe re no benefit can be realized, and various aspects of the U.S. Tax Cuts and Jobs Act, such as the Global Intangible Low-Taxed Income, Foreign-Derived Intangible Income and Base Erosion and Anti-Abuse Tax provisions. The effective tax rate for the three months ended November 30, 2021 was 35.9%, compared to 31.9% for the comparable prior-year period. Overall, both time periods are significantly impacted by year-to-date losses and deductions in jurisdictions where no tax benefit can be realized. The increase in the effective tax rate for the three months ended November 30, 2021 relative to the prior comparable period was primarily driven by revaluing tax assets due to tax rate changes. Additionally, both the current and prior-year effective income tax rates were impacted by non-recurring items. |
Segment Information
Segment Information | 3 Months Ended |
Nov. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12. Segment Information The Company is a global manufacturer of a broad range of industrial products and solutions. The IT&S reportable segment is primarily engaged in the design, manufacture and distribution of branded hydraulic and mechanical tools and in providing services and tool rental to the industrial, maintenance, infrastructure, oil & gas, alternative energy and other markets. The Other operating segment is included for purposes of reconciliation of the respective balances below to the condensed consolidated financial statements. The following tables summarize financial information by reportable segment and product line (in thousands): Three Months Ended November 30, 2021 2020 Net Sales by Reportable Segment & Product Line IT&S Segment Product $ 92,350 $ 82,573 Service & Rental 28,963 29,602 121,313 112,175 Other Operating Segment 9,590 7,255 $ 130,903 $ 119,430 Operating Profit (Loss) IT&S Segment $ 18,064 $ 17,157 Other Operating Segment (1,257) (1,809) General Corporate (10,400) (6,279) $ 6,407 $ 9,069 November 30, 2021 August 31, 2021 Assets IT&S Segment $ 644,138 $ 641,256 Other Operating Segment 52,524 52,745 General Corporate 115,806 126,246 $ 812,468 $ 820,247 In addition to the impact of changes in foreign currency exchange rates, the comparability of segment and product line information is impacted by acquisition/divestiture activities, impairment and divestiture charges, restructuring costs and related benefits. Corporate assets, which are not allocated, principally represent cash and cash equivalents, property, plant and equipment, Right of Use ("ROU") assets, capitalized debt issuance costs and deferred income taxes. |
Contingencies and Litigation
Contingencies and Litigation | 3 Months Ended |
Nov. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Litigation | Note 13. Commitments and Contingencies The Comp any had outstanding letters of credit of $11.6 million and $11.9 million at November 30, 2021 and August 31, 2021, respectively, the majority of which relate to commercial contracts and self-insured workers' compensation programs. As part of the Company's global sourcing strategy, we have en tered into agreements with certain suppliers that require the supplier to maintain minimum levels of inventory to support certain products for which we require a short lead time to fulfill customer orders. We have the ability to notify the supplier that they no longer need maintain the minimum level of inventory should we discontinue manufacturing of a product during the contract period; however, we must purchase the remaining minimum inventory levels the supplier was required to maintain within a defined period of time. The Company is a party to various legal proceedings that have arisen in the normal course of business. These legal proceedings include regulatory matters, product liability, breaches of contract, employment, personal injury and other disputes. The Company has recorded reserves for loss contingencies based on the specific circumstances of each case. Such reserves are recorded when it is probable a loss has been incurred and can be reasonably estimated. The Company maintains a policy to exclude from such reserves an estimate of legal defense costs. In the opinion of management, resolution of these contingencies is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company remains contingently liable for lease payments under leases of businesses that it previously divested or spun-off in the event that such businesses are unable to fulfill their future lease payment obligations; however, the Company does not believe it is probable that it will be required to satisfy these obligations. Future minimum lease payments for these leases at November 30, 2021 were $4.9 million associated with monthly payments extending to fiscal 2025. Additionally, in fiscal 2019, the Company self-disclosed sales to an Estonian customer to relevant authorities in the Netherlands as potentially violating applicable Crimea sanctions laws in that country and the European Union, as those products were used in the Crimea region of Ukraine. While the investigation by authorities in the Netherlands is ongoing, the Company has concluded that it is probable it will incur financial penalties. While there can be no assurance of the ultimate outcome of the Netherlands investigation, in the three months ended November 30, 2020, the Company recorded an expense representing its estimate of the financial penalty it may incur (no adjustment to the estimate was recorded in th e three months ended November 30, 2021 ). T he Company currently believes that there will be no material adverse effect on the Company's financial position, results of operations or cash flows from this matter. |
Leases Leases
Leases Leases | 3 Months Ended |
Nov. 30, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Note 14. Leases The Company has operating leases for real estate, vehicles, manufacturing equipment, IT equipment and office equipment (the Company does not have any financing leases). Our leases typically range in term from 3 to 15 years and may contain renewal options for periods up to 5 years at our discretion. Operating leases are recorded as operating lease ROU assets in “Other long-term assets” and operating lease liabilities in “Other current liabilities” and “Other long-term liabilities” of the Condensed Consolidated Balance Sheets. The components of lease expense were as follows (in thousands): Three Months Ended November 30, 2021 2020 Lease Cost: Operating lease cost $ 3,725 $ 3,706 Short-term lease cost 450 413 Variable lease cost 903 882 Supplemental cash flow and other information related to leases were as follows (in thousands): Three Months Ended November 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,611 $ 3,705 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 810 541 |
Basis of Presentation Property,
Basis of Presentation Property, Plant and Equipment | 3 Months Ended |
Nov. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property Plant and Equipment The following is a summary of the Company's components of property, plant and equipment (in thousands): November 30, 2021 August 31, 2021 Land, buildings and improvements $ 16,488 $ 16,617 Machinery and equipment 145,458 145,541 Gross property, plant and equipment 161,946 162,158 Less: Accumulated depreciation (114,214) (113,568) Property, plant and equipment, net $ 47,732 $ 48,590 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Policies) | 3 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and amending and clarifying existing guidance. The Company adopted this guidance on September 1, 2021. The adoption did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends ASC 805 to require an acquirer to, at the date of acquisition, recognize and measure contract assets and contract liabilities acquired in accordance with ASU 2014-9, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022. The Company will adopt this guidance in the event of a business combination subsequent to the effective date of the guidance. In March 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for a limited time to ease the potential burden of accounting for reference rate reform on financial reporting. This guidance applies to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates. The guidance is effective beginning on March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01 allowing entities to apply certain aspects of ASC 848 (previously ASU 2020-4) to all derivative instruments that undergo a modification of the interest rate used for discounting, margining or contract price alignment as a result of the reference reform. The guidance is also effective through December 31, 2022. The Company has not utilized any of the optional expedients or exceptions available under this guidance. The Company will continue to assess whether this guidance is applicable throughout the effective period. |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss The following is a summary of the Company's accumulated other comprehensive loss (in thousands): November 30, 2021 August 31, 2021 Foreign currency translation adjustments $ 80,366 $ 69,986 Pension and other postretirement benefit plans, net of tax 22,662 22,998 Accumulated other comprehensive loss $ 103,028 $ 92,984 |
Property, Plant and Equipment [Table Text Block] | Property Plant and Equipment The following is a summary of the Company's components of property, plant and equipment (in thousands): November 30, 2021 August 31, 2021 Land, buildings and improvements $ 16,488 $ 16,617 Machinery and equipment 145,458 145,541 Gross property, plant and equipment 161,946 162,158 Less: Accumulated depreciation (114,214) (113,568) Property, plant and equipment, net $ 47,732 $ 48,590 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenues (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents information regarding revenues disaggregated by the timing of when goods and services are transferred (in thousands): Three Months Ended November 30, 2021 2020 Revenues recognized at point in time $ 100,174 $ 86,780 Revenues recognized over time 30,729 32,650 Total $ 130,903 $ 119,430 |
Revenue Recognition Contract wi
Revenue Recognition Contract with Customer, Assets and Liabilities (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Contract Balances The Company's contract assets and liabilities are as follows (in thousands): November 30, 2021 August 31, 2021 Receivables, which are included in accounts receivable, net $ 112,293 $ 103,233 Contract assets, which are included in other current assets 2,428 8,551 Contract liabilities, which are included in other current liabilities 3,939 3,410 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The following summarizes restructuring reserve activity (which excludes $0.7 million and $0.5 million of charges for IT&S and Corporate, respectively, associated with the accelerated vesting of equity awards which has no impact on the restructuring reserve) for the IT&S segment and Corporate (in thousands): Three Months Ended November 30, 2021 IT&S Corporate Balance as of August 31, 2021 $ 1,737 $ 26 Restructuring charges 874 695 Cash payments (609) (8) Impact of changes in foreign currency rates (46) — Balance as of November 30, 2021 $ 1,956 $ 713 Three Months Ended November 30, 2020 IT&S Corporate Balance as of August 31, 2020 $ 1,443 $ 267 Restructuring charges 66 — Cash payments (432) (229) Impact of changes in foreign currency rates (4) — Balance as of November 30, 2020 $ 1,073 $ 38 |
Discontinued Operations & Oth_2
Discontinued Operations & Other Divestiture Charges Discontinued Operations Balance Sheet and Statement of Operations (Tables) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Net (Loss) Earnings from Discontinued Operations | $ 397 | $ 224 |
Discontinued Operations & Oth_3
Discontinued Operations & Other Divestiture Charges Statement of Operations (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following represents the detail of "Loss from discontinued operations, net of income taxes" within the Condensed Consolidated Statements of Operations (in thousands) : Three Months Ended November 30, 2021 2020 Selling, general and administrative expenses $ 503 $ 295 Operating loss (503) (295) Other loss, net — — Loss before income tax benefit (503) (295) Income tax benefit (106) (71) Loss from discontinued operations, net of income taxes $ (397) $ (224) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the three months ended November 30, 2021 are as follows (in thousands): IT&S Other Total Balance as of August 31, 2021 $ 265,087 $ 12,506 $ 277,593 Impact of changes in foreign currency rates (4,296) — (4,296) Balance as of November 30, 2021 $ 260,791 $ 12,506 $ 273,297 |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Table | The gross carrying value and accumulated amortization of the Company’s intangible assets are as follows (in thousands): November 30, 2021 August 31, 2021 Weighted Average Gross Accumulated Net Gross Accumulated Net Amortizable intangible assets: Customer relationships 14 $ 140,576 $ 115,162 $ 25,414 $ 142,453 $ 114,463 $ 27,990 Patents 12 14,252 13,497 755 14,492 13,688 804 Trademarks and tradenames 12 3,255 2,373 882 3,307 2,391 916 Indefinite lived intangible assets: Tradenames N/A 24,349 — 24,349 24,835 — 24,835 $ 182,432 $ 131,032 $ 51,400 $ 185,087 $ 130,542 $ 54,545 |
Product Warranty Costs (Tables)
Product Warranty Costs (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Guarantees [Abstract] | |
Schedule of Product Warranty Liability | The following summarizes the changes in product warranty reserves for the three months ended November 30, 2021 and 2020, respectively (in thousands): Three Months Ended November 30, 2021 2020 Beginning balance $ 1,300 $ 892 Provision for warranties 395 464 Warranty payments and costs incurred (230) (399) Impact of changes in foreign currency rates (31) 2 Ending balance $ 1,434 $ 959 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Indebtedness | The following is a summary of the Company’s long-term indebtedness (in thousands): November 30, 2021 August 31, 2021 Senior Credit Facility Revolver $ 175,000 $ 175,000 Total long-term debt, less current maturities $ 175,000 $ 175,000 |
Derivatives Derivatives (Tables
Derivatives Derivatives (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Net foreign currency gain (loss) (included in "Other (income) expense" in the Condensed Consolidated Statements of Operations) related to these derivative instruments were as follows (in thousands): Three Months Ended November 30, 2021 2020 Foreign currency loss, net $ (181) $ (49) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The reconciliation between basic and diluted earnings per share is as follows (in thousands, except per share amounts): Three Months Ended November 30, 2021 2020 Numerator: Net earnings from continuing operations $ 3,185 $ 4,822 Net loss from discontinued operations (397) (224) Net earnings $ 2,788 $ 4,598 Denominator: Weighted average common shares outstanding - basic 60,261 59,811 Net effect of dilutive securities - stock based compensation plans 360 281 Weighted average common shares outstanding - diluted 60,621 60,092 Earnings per common share from continuing operations: Basic $ 0.05 $ 0.08 Diluted $ 0.05 $ 0.08 Loss per common share from discontinued operations: Basic $ (0.01) $ 0.00 Diluted $ (0.01) $ 0.00 Earnings per common share:* Basic $ 0.05 $ 0.08 Diluted $ 0.05 $ 0.08 Anti-dilutive securities from stock based compensation plans (excluded from earnings per share calculation) 846 1,490 *The total of Earnings per share from continuing operations and Loss per share from discontinued operations may not equal Earnings per share due to rounding. |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Effective Tax Rate [Table Text Block] | Comparative earnings before income taxes, income tax expense and effective income tax rates from continuing operations are as follows (in thousands): Three Months Ended November 30, 2021 2020 Earnings from continuing operations before income tax expense $ 4,966 $ 7,080 Income tax expense 1,781 2,258 Effective income tax rate 35.9 % 31.9 % |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Reportable Segment and Product Line | The following tables summarize financial information by reportable segment and product line (in thousands): Three Months Ended November 30, 2021 2020 Net Sales by Reportable Segment & Product Line IT&S Segment Product $ 92,350 $ 82,573 Service & Rental 28,963 29,602 121,313 112,175 Other Operating Segment 9,590 7,255 $ 130,903 $ 119,430 Operating Profit (Loss) IT&S Segment $ 18,064 $ 17,157 Other Operating Segment (1,257) (1,809) General Corporate (10,400) (6,279) $ 6,407 $ 9,069 November 30, 2021 August 31, 2021 Assets IT&S Segment $ 644,138 $ 641,256 Other Operating Segment 52,524 52,745 General Corporate 115,806 126,246 $ 812,468 $ 820,247 |
Leases Components of Lease Expe
Leases Components of Lease Expense (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Components of Lease Expense [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows (in thousands): Three Months Ended November 30, 2021 2020 Lease Cost: Operating lease cost $ 3,725 $ 3,706 Short-term lease cost 450 413 Variable lease cost 903 882 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information Related to Leases (Tables) | 3 Months Ended |
Nov. 30, 2021 | |
Supplemental Cash Flow Information Related to Leases [Abstract] | |
Supplemental Cash Flow Information Related to Leases [Table Text Block] | Supplemental cash flow and other information related to leases were as follows (in thousands): Three Months Ended November 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,611 $ 3,705 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 810 541 |
Basis of Presentation Schedul_2
Basis of Presentation Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Land, buildings and improvements | $ 16,488 | $ 16,617 |
Machinery and equipment | 145,458 | 145,541 |
Gross Property, Plant and Equipment | 161,946 | 162,158 |
Less: Accumulated Depreciation | (114,214) | (113,568) |
Property, Plant and Equipment, Net | $ 47,732 | $ 48,590 |
Basis of Presentation Basis o_2
Basis of Presentation Basis of Presentation (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 |
Condensed Statement of Income Captions [Line Items] | ||||
Foreign currency translation adjustments | $ 80,366 | $ 69,986 | ||
Pension and other postretirement benefit plans, net of tax | 22,662 | 22,998 | ||
Total shareholders’ equity | (409,806) | (412,198) | $ (367,946) | $ (359,226) |
AOCI Attributable to Parent [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Total shareholders’ equity | $ 103,028 | $ 92,984 | $ 99,095 | $ 100,724 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 130,903 | $ 119,430 |
Revenue Recognized at a Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 100,174 | 86,780 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 30,729 | $ 32,650 |
Revenue Recognition Contract _2
Revenue Recognition Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 4,300 | $ 4,200 |
Accounts receivable, net | 112,293 | 103,233 |
Contract assets | 2,428 | 8,551 |
Contract liabilities | 3,939 | $ 3,410 |
Revenue, remaining performance obligation, within next twelve months | $ 3,900 | |
Percentage of accounts receivable | 10.60% |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | $ 2,737 | $ 210 |
Industrial Tools & Services [Member] [Domain] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 1,737 | 1,443 |
Restructuring Charges | 874 | 66 |
Cash payments | (609) | (432) |
Other non-cash uses of reserve | (700) | |
Impact of changes in foreign currency rates | (46) | (4) |
Ending Balance | 1,956 | 1,073 |
General Corporate | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 26 | 267 |
Restructuring Charges | 695 | 0 |
Cash payments | (8) | (229) |
Other non-cash uses of reserve | (500) | |
Impact of changes in foreign currency rates | 0 | 0 |
Ending Balance | 713 | 38 |
Reportable Segments [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 2,700 | 100 |
Other Operating Segment [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 100 | |
Restructuring Charges | $ 100 | |
Ending Balance | $ 100 |
Discontinued Operations & Oth_4
Discontinued Operations & Other Divestiture Charges Discontinued Operations & Divestiture Activities (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Nov. 30, 2021 | Nov. 30, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 4,966 | $ 7,080 | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 4. Discontinued Operations On October 31, 2019, as part of our overall strategy to become a pure-play industrial tools and services company, the Company completed the sale of the businesses comprising its former Engineered Components & Systems ("EC&S") segment. This divestiture was considered part of our strategic shift to become a pure-play industrial tools and services company, and therefore, the results of operations are recorded as a component of "Loss from discontinued operations, net of income taxes" in the Condensed Consolidated Statements of Operations for all periods presented. A component of the purchase price was payable in four quarterly installments of which the final $0.7 million was received in the three months ended November 30, 2020 (this final payment was received greater than one year from the divestiture date and, as such, is reflected in "Cash provided by financing activities - discontinued operations" within the Condensed Consolidated Statements of Cash Flows). All other discontinued operations activity included within the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Cash Flows for the periods presented relate to impacts from certain retained liabilities. The following represents the detail of "Loss from discontinued operations, net of income taxes" within the Condensed Consolidated Statements of Operations (in thousands) : Three Months Ended November 30, 2021 2020 Selling, general and administrative expenses $ 503 $ 295 Operating loss (503) (295) Other loss, net — — Loss before income tax benefit (503) (295) Income tax benefit (106) (71) Loss from discontinued operations, net of income taxes $ (397) $ (224) | ||
Engineered Components & Systems [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Quarterly Installment Payments | 700 | ||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ (503) | (295) | |
Disposal Group, Including Discontinued Operation, Other Expense (Income), net | 0 | 0 | |
Disposal Group, Including Discontinued Operation, Loss Before Income Tax Benefit | 503 | 295 | |
Disposal Group, Including Discontinued Operation, General and Administrative Expense | $ 503 | $ 295 | |
Engineered Components & Systems [Member] [Domain] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Date | Oct. 31, 2019 |
Discontinued Operations & Oth_5
Discontinued Operations & Other Divestiture Charges Other Divestiture Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Impairment & divestiture (benefits) charges | $ 0 | $ 139 |
Discontinued Operations & Oth_6
Discontinued Operations & Other Divestiture Charges Divestitures Activities Discontinued Operations - Loss From Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net (Loss) Earnings from Discontinued Operations | $ 397 | $ 224 |
Engineered Components & Systems [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Operating (Loss) Earnings | (503) | (295) |
Disposal Group, Including Discontinued Operation, Other Expense | 0 | 0 |
Disposal Group, Including Discontinued Operation, (Loss) Earnings Before Income Tax Benefit | (503) | (295) |
Disposal Group, Including Discontinued Operation, Income Tax (Benefit) Expense | (106) | (71) |
Net (Loss) Earnings from Discontinued Operations | $ (397) | $ (224) |
Changes in Carrying Value of Go
Changes in Carrying Value of Goodwill (Details) $ in Thousands | 3 Months Ended |
Nov. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Ending balance | $ 277,593 |
Impact of changes in foreign currency rates | (4,296) |
Ending balance | 273,297 |
Industrial Tools & Services [Member] [Domain] | |
Goodwill [Roll Forward] | |
Ending balance | 265,087 |
Impact of changes in foreign currency rates | (4,296) |
Ending balance | 260,791 |
Other Operating Segment [Member] | |
Goodwill [Roll Forward] | |
Ending balance | 12,506 |
Impact of changes in foreign currency rates | 0 |
Ending balance | $ 12,506 |
Gross Carrying Amount and Accum
Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Aug. 31, 2021 | |
Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ 131,032 | $ 130,542 |
Gross Carrying Value | 182,432 | 185,087 |
Net Book Value | $ 51,400 | 54,545 |
Customer relationships | ||
Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 14 years | |
Gross Carrying Value | $ 140,576 | 142,453 |
Accumulated Amortization | 115,162 | 114,463 |
Net Book Value | $ 25,414 | 27,990 |
Patents | ||
Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 12 years | |
Gross Carrying Value | $ 14,252 | 14,492 |
Accumulated Amortization | 13,497 | 13,688 |
Net Book Value | $ 755 | 804 |
Trademarks and tradenames | ||
Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 12 years | |
Gross Carrying Value | $ 3,255 | 3,307 |
Accumulated Amortization | 2,373 | 2,391 |
Net Book Value | 882 | 916 |
Tradenames | ||
Indefinite And Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 24,349 | 24,835 |
Accumulated Amortization | 0 | 0 |
Net Book Value | $ 24,349 | $ 24,835 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Millions | Nov. 30, 2021USD ($) |
Impaired Assets [Line Items] | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | $ 5.8 |
Future Amortization Expense, 2025 | 4.5 |
Future Amortization Expense, 2024 | 1.9 |
Future Amortization Expense, 2023 | 2 |
Future Amortization Expense, 2022 | 3.4 |
Future Amortization Expense, 2021 | 4.1 |
Future Amortization Expense, Remainder of 2020 | 5.4 |
Future Amortization Expense, 2021 | 4.1 |
Future Amortization Expense, 2022 | 3.4 |
Future Amortization Expense, 2023 | 2 |
Future Amortization Expense, 2024 | 1.9 |
Future Amortization Expense, 2025 | $ 4.5 |
Rollforward of Accrued Product
Rollforward of Accrued Product Warranty Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 1,300 | $ 892 |
Provision for warranties | 395 | 464 |
Warranty Payments and costs incurred | (230) | (399) |
Impact of changes in foreign currency rates | (31) | 2 |
Ending balance | $ 1,434 | $ 959 |
Long-Term Indebtedness (Details
Long-Term Indebtedness (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 175,000 | $ 175,000 |
Line of Credit | Senior Credit Facility - Revolver | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 175,000 | $ 175,000 |
Debt - Additional Information (
Debt - Additional Information (Details) $ in Thousands | 3 Months Ended | |||
Nov. 30, 2021USD ($) | Nov. 30, 2020USD ($) | Aug. 31, 2021USD ($) | Aug. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Borrowings on Revolving Credit | $ 5,000 | $ 10,000 | ||
Outstanding letters of credit | 11,600 | $ 11,900 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 400,000 | $ 300,000 | ||
Outstanding letters of credit | 5,200 | |||
Senior Credit Facility - Term Loan | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000 | |||
Senior Credit Facility - Revolver | ||||
Debt Instrument [Line Items] | ||||
Borrowings on Revolving Credit | 175,000 | |||
Line of Credit | Senior Credit Facility - Revolver | ||||
Debt Instrument [Line Items] | ||||
Unused credit line Available for Borrowing, Amount | $ 219,800 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |||
Fixed Charge Coverage Ratio | 3.5 | |||
Minimum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | |||
Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |||
Leverage ratio | 3.75 | |||
Adjusted Leverage Ratio | 4.25 | |||
Maximum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||
Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | |||
Accordion [Domain] | ||||
Debt Instrument [Line Items] | ||||
Senior credit facility expansion option, available | $ 300,000 | |||
Incremental Term Loan [Domain] | ||||
Debt Instrument [Line Items] | ||||
Senior credit facility expansion option, available | $ 200,000 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Aug. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contract, Liability/Asset, Fair Value Disclosure | $ (0.1) | $ (0.1) |
Derivatives Narrative (Details)
Derivatives Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
Derivative [Line Items] | |||
Foreign Currency Contract, Liability/Asset, Fair Value Disclosure | $ (100) | $ (100) | |
Loss on Foreign Currency Fair Value Hedge Derivatives and Not Designated as Hedging Instruments at Fair Value | (181) | $ (49) | |
London Interbank Offered Rate (LIBOR) | |||
Derivative [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 100 | ||
Fair Value Hedging [Member] | |||
Derivative [Line Items] | |||
Derivative, Fair Value, Net | 13,600 | $ 16,000 | |
Interest Rate Swap [Member] | London Interbank Offered Rate (LIBOR) | |||
Derivative [Line Items] | |||
Derivative, Amount of Hedged Item | $ 100,000 | ||
Derivative, Fixed Interest Rate | 0.259% |
Earnings per Share and Shareh_2
Earnings per Share and Shareholders' Equity Share Repurchase (Details) - USD ($) $ in Thousands | 3 Months Ended | 123 Months Ended | |||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Aug. 31, 2021 | Aug. 31, 2020 | |
Equity [Abstract] | |||||
Treasury Stock, Shares | 22,799,230 | 22,799,230 | 22,799,230 | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 5,200,770 | 5,200,770 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 409,806 | $ 367,946 | $ 409,806 | $ 412,198 | $ 359,226 |
Net (loss) earnings | 2,788 | 4,598 | |||
Other Comprehensive (Loss) Income, Net of Tax | (10,044) | 1,629 | |||
Stock Issued During Period, Value, Employee Benefit Plan | 85 | 101 | |||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 0 | 0 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 6,147 | 2,581 | |||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | (1,393) | (275) | |||
Stock Value Issued to Acquired For and Distributed From Rabbi Trust | 25 | $ 86 | |||
Retained earnings | 956,127 | 956,127 | 953,339 | ||
Treasury Stock, Value | $ 667,732 | 667,732 | $ 667,732 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 667,700 | ||||
Common Stock [Member] | |||||
Stock Issued During Period, Shares, New Issues | 83,092,000 | 82,625,000 | 83,092,000 | 83,022,000 | 82,594,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 16,622 | $ 16,525 | $ 16,622 | $ 16,604 | $ 16,519 |
Stock Issued During Period, Shares, Employee Benefit Plan | 2,000 | 6,000 | |||
Stock Issued During Period, Value, Employee Benefit Plan | $ 1 | $ 1 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 67,000 | 20,000 | |||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 17 | $ 4 | |||
Stock Issued To Acquired For And Distributed From Rabbi Trust | 1,000 | 5,000 | |||
Stock Value Issued to Acquired For and Distributed From Rabbi Trust | $ 0 | $ 1 | |||
Additional Paid-in Capital [Member] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 207,817 | 195,979 | 207,817 | 202,971 | 193,492 |
Stock Issued During Period, Value, Employee Benefit Plan | 84 | 100 | |||
Stock Issued During Period, Value, Restricted Stock Award, Gross | (17) | (4) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 6,147 | 2,581 | |||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | (1,393) | (275) | |||
Stock Value Issued to Acquired For and Distributed From Rabbi Trust | 25 | 85 | |||
Treasury Stock [Member] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (667,732) | (667,732) | (667,732) | (667,732) | (667,732) |
Retained Earnings [Member] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 956,127 | 922,269 | 956,127 | 953,339 | 917,671 |
Net (loss) earnings | 2,788 | 4,598 | |||
AOCI Attributable to Parent [Member] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (103,028) | (99,095) | (103,028) | (92,984) | (100,724) |
Other Comprehensive (Loss) Income, Net of Tax | (10,044) | 1,629 | |||
Stock held in trust [member] [Member] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (3,092) | (2,643) | (3,092) | (3,067) | (2,562) |
Stock Value Issued to Acquired For and Distributed From Rabbi Trust | (25) | (81) | |||
Deferred Compensation, Share-based Payments [Member] | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,092 | 2,643 | $ 3,092 | $ 3,067 | $ 2,562 |
Stock Value Issued to Acquired For and Distributed From Rabbi Trust | $ 25 | $ 81 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Net (Loss) Earnings from Continuing Operations | $ 3,185 | $ 4,822 |
Net (Loss) Earnings from Discontinued Operations | (397) | (224) |
Net (loss) earnings | $ 2,788 | $ 4,598 |
Weighted average common shares outstanding - basic | 60,261 | 59,811 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 360 | 281 |
Weighted Average Common Shares outstanding - diluted | 60,621 | 60,092 |
(Loss) Earnings per share from Continuing Operations, Per Basic Share | $ 0.05 | $ 0.08 |
(Loss) Earnings per share from Continuing Operations, Per Diluted Share | 0.05 | 0.08 |
(Loss) Earnings per share from Discontinued Operations, Per Basic Shares | (0.01) | 0 |
(Loss) Earnings per share from Discontinued Operations, Per Diluted Share | (0.01) | 0 |
Earnings Per Share, Basic | 0.05 | 0.08 |
(Loss) Earnings Per Share, Diluted | $ 0.05 | $ 0.08 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities from stock based compensation plans (excluded from earnings per share calculation) | 846 | 1,490 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Income Tax Disclosure Additional Details [Table] [Line Items] | ||
Income tax (benefit) expense | $ 1,781 | $ 2,258 |
Effective Income Tax Rate Reconciliation, Percent | 35.90% | 31.90% |
Federal Statutory Income Tax Rate, Percent | 21.00% |
Summary of Financial Informatio
Summary of Financial Information by Reportable Segment and Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net Sales | $ 130,903 | $ 119,430 | |
Operating Profit (Loss) | 6,407 | 9,069 | |
Assets | 812,468 | $ 820,247 | |
Industrial Tools & Services [Member] [Domain] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 121,313 | 112,175 | |
Operating Profit (Loss) | 18,064 | 17,157 | |
Assets | 644,138 | 641,256 | |
Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 92,350 | 82,573 | |
Service & Rental [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 28,963 | 29,602 | |
Other Operating Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 9,590 | 7,255 | |
Operating Profit (Loss) | (1,257) | (1,809) | |
Assets | 52,524 | 52,745 | |
General Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating Profit (Loss) | (10,400) | $ (6,279) | |
Assets | $ 115,806 | $ 126,246 |
Contingencies and Litigation -
Contingencies and Litigation - Additional Information (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Aug. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding letters of credit | $ 11.6 | $ 11.9 |
Contractual Obligation, Future Minimum Payments Due, Remainder of Lease Payments | $ 4.9 |
Leases Components of Lease Ex_2
Leases Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Components of Lease Expense [Abstract] | ||
Operating Lease, Cost | $ 3,725 | $ 3,706 |
Short-term Lease, Cost | 450 | 413 |
Variable Lease, Cost | $ 903 | $ 882 |
Leases Supplemental Cash Flow_2
Leases Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Supplemental Cash Flow Information Related to Leases [Abstract] | ||
Operating Lease, Payments | $ 3,611 | $ 3,705 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 810 | $ 541 |
Leases Leases (Details)
Leases Leases (Details) | Nov. 30, 2021 |
Operating Leased Assets [Line Items] | |
Lessee, Operating Lease, Renewal Term | 5 years |
Minimum | |
Operating Leased Assets [Line Items] | |
Lessee, Operating Lease, Term of Contract | 3 years |
Maximum | |
Operating Leased Assets [Line Items] | |
Lessee, Operating Lease, Term of Contract | 15 years |