Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Jul. 27, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GHM | |
Entity Registrant Name | GRAHAM CORP | |
Entity Central Index Key | 716,314 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,111,730 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Retained Earnings (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||
Net sales | $ 27,617 | $ 28,502 |
Cost of products sold | 19,580 | 20,570 |
Gross profit | 8,037 | 7,932 |
Other expenses and income: | ||
Selling, general and administrative | 4,580 | 4,295 |
Selling, general and administrative - amortization | 58 | 54 |
Interest income | (52) | (46) |
Interest expense | 3 | 3 |
Total other expenses and income | 4,589 | 4,306 |
Income before provision for income taxes | 3,448 | 3,626 |
Provision for income taxes | 1,087 | 1,234 |
Net income | 2,361 | 2,392 |
Retained earnings at beginning of period | 106,178 | 93,469 |
Dividends | (813) | (405) |
Retained earnings at end of period | $ 107,726 | $ 95,456 |
Basic: | ||
Net income | $ 0.23 | $ 0.24 |
Diluted: | ||
Net income | $ 0.23 | $ 0.24 |
Weighted average common shares outstanding: | ||
Basic | 10,148 | 10,105 |
Diluted | 10,161 | 10,127 |
Dividends declared per share | $ 0.08 | $ 0.04 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,361 | $ 2,392 |
Other comprehensive income: | ||
Foreign currency translation adjustment | (1) | 5 |
Defined benefit pension and other postretirement plans net of income tax of $107 and $46, for the three months ended June 30, 2015 and 2014, respectively | 196 | 84 |
Total other comprehensive income | 195 | 89 |
Total comprehensive income | $ 2,556 | $ 2,481 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Defined benefit pension and other postretirement plans, tax | $ 107 | $ 46 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 29,616 | $ 27,271 |
Investments | 33,000 | 33,000 |
Trade accounts receivable, net of allowances ($21 and $62 at June 30 and March 31, 2015, respectively) | 15,547 | 17,249 |
Unbilled revenue | 18,487 | 18,665 |
Inventories | 11,710 | 13,994 |
Prepaid expenses and other current assets | 985 | 529 |
Income taxes receivable | 339 | |
Deferred income tax asset | 534 | 647 |
Total current assets | 109,879 | 111,694 |
Property, plant and equipment, net | 19,361 | 19,812 |
Prepaid pension asset | 1,637 | 1,332 |
Goodwill | 6,938 | 6,938 |
Permits | 10,300 | 10,300 |
Other intangible assets, net | 4,383 | 4,428 |
Other assets | 144 | 150 |
Total assets | 152,642 | 154,654 |
Current liabilities: | ||
Current portion of capital lease obligations | 57 | 60 |
Accounts payable | 12,036 | 13,334 |
Accrued compensation | 6,227 | 9,343 |
Accrued expenses and other current liabilities | 4,079 | 3,247 |
Customer deposits | 3,383 | 4,179 |
Income taxes payable | 21 | |
Deferred income tax liability | 266 | 164 |
Total current liabilities | 26,069 | 30,327 |
Capital lease obligations | 86 | 98 |
Accrued compensation | 10 | 124 |
Deferred income tax liability | 6,644 | 6,363 |
Accrued pension liability | 328 | 315 |
Accrued postretirement benefits | 883 | 876 |
Total liabilities | $ 34,020 | $ 38,103 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, $1.00 par value, 500 shares authorized | ||
Common stock, $.10 par value, 25,500 shares authorized 10,469 and 10,433 shares issued and 10,169 and 10,133 shares outstanding | $ 1,047 | $ 1,043 |
Capital in excess of par value | 21,722 | 21,398 |
Retained earnings | 107,726 | 106,178 |
Accumulated other comprehensive loss | (8,861) | (9,056) |
Treasury stock, (299 shares) | (3,012) | (3,012) |
Total stockholders' equity | 118,622 | 116,551 |
Total liabilities and stockholders' equity | $ 152,642 | $ 154,654 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowances on trade accounts receivable | $ 21 | $ 62 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 25,500,000 | 25,500,000 |
Common stock, shares issued | 10,469,000 | 10,433,000 |
Common stock, shares outstanding | 10,169,000 | 10,133,000 |
Treasury stock, shares | 299,000 | 299,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income | $ 2,361 | $ 2,392 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 563 | 520 |
Amortization | 58 | 54 |
Amortization of unrecognized prior service cost and actuarial losses | 303 | 130 |
Stock-based compensation expense | 220 | 123 |
Deferred income taxes | 390 | (7) |
(Increase) decrease in operating assets: | ||
Accounts receivable | 1,701 | (1,958) |
Unbilled revenue | 177 | 196 |
Inventories | 2,284 | 3,702 |
Prepaid expenses and other current and non-current assets | (462) | (487) |
Prepaid pension asset | (305) | (320) |
Increase (decrease) in operating liabilities: | ||
Accounts payable | (1,145) | (3,015) |
Accrued compensation, accrued expenses and other current and non-current liabilities | (2,284) | 259 |
Customer deposits | (796) | 502 |
Income taxes payable/receivable | 361 | 1,236 |
Long-term portion of accrued compensation, accrued pension liability and accrued postretirement benefits | (95) | (138) |
Net cash provided by operating activities | 3,331 | 3,189 |
Investing activities: | ||
Purchase of property, plant and equipment | (264) | (2,569) |
Purchase of investments | (9,000) | (5,000) |
Redemption of investments at maturity | 9,000 | 19,000 |
Net cash (used) provided by investing activities | (264) | 11,431 |
Financing activities: | ||
Principal repayments on capital lease obligations | (15) | (21) |
Issuance of common stock | 96 | 29 |
Dividends paid | (813) | (405) |
Excess tax benefit on stock awards | 12 | 34 |
Net cash used by financing activities | (720) | (363) |
Effect of exchange rate changes on cash | (2) | 7 |
Net increase in cash and cash equivalents | 2,345 | 14,264 |
Cash and cash equivalents at beginning of year | 27,271 | 32,146 |
Cash and cash equivalents at end of period | $ 29,616 | $ 46,410 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1 – BASIS OF PRESENTATION: Graham Corporation’s (the “Company’s”) Condensed Consolidated Financial Statements include its (i) wholly-owned foreign subsidiary located in Suzhou, China and (ii) wholly-owned domestic subsidiary located in Lapeer, Michigan. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and the instructions to Form 10-Q Regulation S-X, Form 10-K The Company’s results of operations and cash flows for the three months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the current fiscal year, which ends March 31, 2016 (“fiscal 2016”). |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Revenue Recognition | NOTE 2 – REVENUE RECOGNITION: The Company recognizes revenue on all contracts with a planned manufacturing process in excess of four weeks (which approximates 575 direct labor hours) using the percentage-of-completion method. The majority of the Company’s revenue is recognized under this methodology. The Company has established the systems and procedures essential to developing the estimates required to account for contracts using the percentage-of-completion method. The percentage-of-completion method is determined by comparing actual labor incurred to a specific date to management’s estimate of the total labor to be incurred on each contract or completion of operational milestones assigned to each contract. Contracts in progress are reviewed monthly by management, and sales and earnings are adjusted in current accounting periods based on revisions in the contract value and estimated costs at completion. Losses on contracts are recognized immediately when evident to management. Revenue on contracts not accounted for using the percentage-of-completion method is recognized utilizing the completed contract method. The majority of the Company’s contracts (as opposed to revenue) have a planned manufacturing process of less than four weeks and the results reported under this method do not vary materially from the percentage-of-completion method. The Company recognizes revenue and all related costs on these contracts upon substantial completion or shipment to the customer. Substantial completion is consistently defined as at least 95% complete with regard to direct labor hours. Customer acceptance is generally required throughout the construction process and the Company has no further material obligations under its contracts after the revenue is recognized. Receivables billed but not paid under retainage provisions in the Company’s customer contracts were $1,315 and $1,751 at June 30, 2015 and March 31, 2015, respectively. |
Investments
Investments | 3 Months Ended |
Jun. 30, 2015 | |
Investments Schedule [Abstract] | |
Investments | NOTE 3 – INVESTMENTS: Investments consist solely of certificates of deposits with financial institutions. All investments have original maturities of greater than three months and less than one year and are classified as held-to-maturity, as the Company believes it has the intent and ability to hold the securities to maturity. Investments are stated at amortized cost which approximates fair value. All investments held by the Company at June 30, 2015 are scheduled to mature on or before May 11, 2016. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4 – INVENTORIES: Inventories are stated at the lower of cost or market, using the average cost method. For contracts accounted for on the completed contract method, progress payments received are netted against inventory to the extent the payment is less than the inventory balance relating to the applicable contract. Progress payments that are in excess of the corresponding inventory balance are presented as customer deposits in the Condensed Consolidated Balance Sheets. Unbilled revenue in the Condensed Consolidated Balance Sheets represents revenue recognized that has not been billed to customers on contracts accounted for on the percentage-of-completion method. For contracts accounted for on the percentage-of-completion method, progress payments are netted against unbilled revenue to the extent the payment is less than the unbilled revenue for the applicable contract. Progress payments exceeding unbilled revenue are netted against inventory to the extent the payment is less than or equal to the inventory balance relating to the applicable contract, and the excess is presented as customer deposits in the Condensed Consolidated Balance Sheets. Major classifications of inventories are as follows: June 30, 2015 March 31, 2015 Raw materials and supplies $ 2,592 $ 2,763 Work in process 10,678 13,685 Finished products 526 689 13,796 17,137 Less - progress payments 2,086 3,143 Total $ 11,710 $ 13,994 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 5 – INTANGIBLE ASSETS: Intangible assets are comprised of the following: Gross Accumulated Net At June 30, 2015 Intangibles subject to amortization: Customer relationships $ 2,700 $ 817 $ 1,883 Intangibles not subject to amortization: Permits $ 10,300 $ - $ 10,300 Tradename 2,500 - 2,500 $ 12,800 $ - $ 12,800 At March 31, 2015 Intangibles subject to amortization: Customer relationships $ 2,700 $ 772 $ 1,928 Intangibles not subject to amortization: Permits $ 10,300 $ - $ 10,300 Tradename 2,500 - 2,500 $ 12,800 $ - $ 12,800 Intangible assets are amortized on a straight line basis over the estimated useful lives. Intangible amortization expense for the three months ended June 30, 2015 and 2014 was $45 and $45, respectively. As of June 30, 2015, amortization expense is estimated to be $135 for the remainder of fiscal 2016 and $180 in each of the fiscal years ending March 31, 2017, 2018, 2019 and 2020. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 6 – STOCK-BASED COMPENSATION: The Amended and Restated 2000 Graham Corporation Incentive Plan to Increase Shareholder Value provides for the issuance of up to 1,375 shares of common stock in connection with grants of incentive stock options, non-qualified stock options, stock awards and performance awards to officers, key employees and outside directors; provided, however, that no more than 250 shares of common stock may be used for awards other than stock options. Stock options may be granted at prices not less than the fair market value at the date of grant and expire no later than ten years after the date of grant. Restricted stock awards granted in the three-month periods ended June 30, 2015 and 2014 were 34 and 28, respectively. Restricted shares of 15 and 12 granted to officers in fiscal 2016 and fiscal 2015, respectively, vest 100% on the third anniversary of the grant date subject to the satisfaction of the performance metrics for the applicable three-year period. Restricted shares of 12 and 11 granted to officers and key employees in fiscal 2016 and fiscal 2015, respectively, vest 33 1 3 During the three months ended June 30, 2015 and 2014, the Company recognized stock-based compensation costs related to stock option and restricted stock awards of $206 and $106, respectively. The income tax benefit recognized related to stock-based compensation was $73 and $37 for the three months ended June 30, 2015 and 2014, respectively. The Company has an Employee Stock Purchase Plan (the “ESPP”), which allows eligible employees to purchase shares of the Company’s common stock on the last day of a six-month offering period at a purchase price equal to the lesser of 85% of the fair market value of the common stock on either the first day or the last day of the offering period. A total of 200 shares of common stock may be purchased under the ESPP. During the three months ended June 30, 2015 and 2014, the Company recognized stock-based compensation costs of $14 and $17, respectively, related to the ESPP and $5 and $6, respectively, of related tax benefits. |
Income Per Share
Income Per Share | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Income Per Share | NOTE 7 – INCOME PER SHARE: Basic income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted income per share is calculated by dividing net income by the weighted average number of common shares outstanding and, when applicable, potential common shares outstanding during the period. A reconciliation of the numerators and denominators of basic and diluted income per share is presented below: Three Months Ended 2015 2014 Basic income per share Numerator: Net income $ 2,361 $ 2,392 Denominator: Weighted average common shares outstanding 10,148 10,105 Basic income per share $ .23 $ .24 Diluted income per share Numerator: Net income $ 2,361 $ 2,392 Denominator: Weighted average common shares outstanding 10,148 10,105 Stock options outstanding 13 22 Weighted average common and potential common shares outstanding 10,161 10,127 Diluted income per share $ .23 $ .24 Options to purchase a total of 12 shares of common stock were outstanding at each of June 30, 2015 and 2014, but were not included in the above computation of diluted income per share given their exercise prices as they would not be dilutive upon issuance. |
Product Warranty Liability
Product Warranty Liability | 3 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Product Warranty Liability | NOTE 8 – PRODUCT WARRANTY LIABILITY: The reconciliation of the changes in the product warranty liability is as follows: Three Months Ended 2015 2014 Balance at beginning of period $ 653 $ 308 Expense for product warranties 91 97 Product warranty claims paid (112 ) (32 ) Balance at end of period $ 632 $ 373 The product warranty liability is included in the line item “Accrued expenses and other current liabilities” in the Condensed Consolidated Balance Sheets. |
Cash Flow Statement
Cash Flow Statement | 3 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Statement | NOTE 9 – CASH FLOW STATEMENT: Interest paid was $3 for each of the three month periods ended June 30, 2015 and 2014. Income taxes paid (refunded) for the three months ended June 30, 2015 and 2014 were $324 and $(29), respectively. During the three months ended June 30, 2015 and 2014, respectively, stock option awards were exercised and restricted stock awards vested. In connection with such stock option exercises and vesting, the related income tax benefit realized exceeded the tax benefit that had been recorded pertaining to the compensation cost recognized by $12 and $34, respectively, for such periods. This excess tax benefit has been separately reported under “Financing activities” in the Condensed Consolidated Statements of Cash Flows. At June 30, 2015 and 2014, respectively, there were $22 and $61 of capital purchases that were recorded in accounts payable and are not included in the caption “Purchase of property, plant and equipment” in the Condensed Consolidated Statements of Cash Flows. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 10 – EMPLOYEE BENEFIT PLANS: The components of pension benefit income are as follows: Three Months Ended 2015 2014 Service cost $ 131 $ 136 Interest cost 359 359 Expected return on assets (795 ) (758 ) Amortization of: Unrecognized prior service cost - 1 Actuarial loss 293 145 Net pension benefit income $ (12 ) $ (117 ) The Company made no contributions to its defined benefit pension plan during the three months ended June 30, 2015 and does not expect to make any contributions to the plan for the balance of fiscal 2016. The components of the postretirement benefit cost (income) are as follows: Three Months Ended 2015 2014 Service cost $ - $ - Interest cost 7 8 Amortization of prior service benefit - (26 ) Amortization of actuarial loss 10 10 Net postretirement benefit cost (income) $ 17 $ (8 ) The Company paid no benefits related to its postretirement benefit plan during the three months ended June 30, 2015. The Company expects to pay benefits of approximately $92 for the balance of fiscal 2016. The Company self-funds the medical insurance coverage provided to its U.S. based employees. The Company has obtained a stop loss insurance policy in an effort to limit its exposure to claims. The liability of $408 and $446 on June 30, 2015 and March 31, 2015, respectively, related to the self-insured medical plan is primarily based upon claim history and is included in the caption “Accrual Compensation” in the Condensed Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11 – COMMITMENTS AND CONTINGENCIES: The Company has been named as a defendant in lawsuits alleging personal injury from exposure to asbestos allegedly contained in or accompanying products made by the Company. The Company is a co-defendant with numerous other defendants in these lawsuits and intends to vigorously defend itself against these claims. The claims in the Company’s current lawsuits are similar to those made in previous asbestos suits that named the Company as defendant, which either were dismissed when it was shown that the Company had not supplied products to the plaintiffs’ places of work or were settled for immaterial amounts. As of June 30, 2015, the Company was subject to the claims noted above, as well as other legal proceedings and potential claims that have arisen in the ordinary course of business. Although the outcome of the lawsuits, legal proceedings or potential claims to which the Company is or may become a party cannot be determined and an estimate of the reasonably possible loss or range of loss cannot be made, management does not believe that the outcomes, either individually or in the aggregate, will have a material effect on the Company’s results of operations, financial position or cash flows. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 – INCOME TAXES: The Company files federal and state income tax returns in several domestic and international jurisdictions. In most tax jurisdictions, returns are subject to examination by the relevant tax authorities for a number of years after the returns have been filed. The Company is subject to U.S. federal examination for the tax years 2013 and 2014 and examination in state tax jurisdictions for the tax years 2010 through 2014. The Company is subject to examination in the People’s Republic of China for tax years 2012 through 2014. There was no liability for unrecognized tax benefits at each of June 30, 2015 and March 31, 2015. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | NOTE 13 – CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS: The changes in accumulated other comprehensive loss by component for the three months ended June 30, 2015 and 2014 are as follows: Pension and Foreign Total Balance at April 1, 2015 $ (9,462 ) $ 406 $ (9,056 ) Other comprehensive income before reclassifications — (1 ) (1 ) Amounts reclassified from accumulated other comprehensive loss 196 — 196 Net current-period other comprehensive income 196 (1 ) 195 Balance at June 30, 2015 $ (9,266 ) $ 405 $ (8,861 ) Pension and Foreign Total Balance at April 1, 2014 $ (6,168 ) $ 403 $ (5,765 ) Other comprehensive income before reclassifications — 5 5 Amounts reclassified from accumulated other comprehensive loss 84 — 84 Net current-period other comprehensive income 84 5 89 Balance at June 30, 2014 $ (6,084 ) $ 408 $ (5,676 ) The reclassifications out of accumulated other comprehensive loss by component for the three months ended June 30, 2015 and 2014 are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Affected Line Item in the Condensed Consolidated Statements of Operations and Retained Earnings Three Months Ended June 30, 2015 2014 Pension and other postretirement benefit items: Amortization of unrecognized prior service benefit $ — $ 25 (1) Amortization of actuarial loss (303 ) (1) (155 ) (1) (303 ) (130 ) Income before provision for income taxes (107 ) (46 ) Provision for income taxes $ (196 ) $ (84 ) Net income (1) These accumulated other comprehensive loss components are included within the computation of net periodic pension and other postretirement benefit costs. See Note 10. |
Accounting and Reporting Change
Accounting and Reporting Changes | 3 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting and Reporting Changes | NOTE 14 – ACCOUNTING AND REPORTING CHANGES: In the normal course of business, management evaluates all new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”), the Securities and Exchange Commission, the Emerging Issues Task Force, the American Institute of Certified Public Accountants or any other authoritative accounting body to determine the potential impact they may have on the Company’s consolidated financial statements. In May 2014, the FASB issued guidance related to the accounting for revenue from contracts with customers. This guidance establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from a company’s contracts with customers. The guidance requires companies to apply a five-step model when recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The guidance also includes a comprehensive set of disclosure requirements regarding revenue recognition. The provisions of the guidance are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the impact this guidance will have on its financial position, results of operations and cash flows. See Note 2 for a description of the Company’s current revenue recognition policy. Management does not expect any other recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company’s consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Major Classifications of Inventories | Major classifications of inventories are as follows: June 30, 2015 March 31, 2015 Raw materials and supplies $ 2,592 $ 2,763 Work in process 10,678 13,685 Finished products 526 689 13,796 17,137 Less - progress payments 2,086 3,143 Total $ 11,710 $ 13,994 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets are comprised of the following: Gross Accumulated Net At June 30, 2015 Intangibles subject to amortization: Customer relationships $ 2,700 $ 817 $ 1,883 Intangibles not subject to amortization: Permits $ 10,300 $ - $ 10,300 Tradename 2,500 - 2,500 $ 12,800 $ - $ 12,800 At March 31, 2015 Intangibles subject to amortization: Customer relationships $ 2,700 $ 772 $ 1,928 Intangibles not subject to amortization: Permits $ 10,300 $ - $ 10,300 Tradename 2,500 - 2,500 $ 12,800 $ - $ 12,800 |
Income Per Share (Tables)
Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Income Per Share | A reconciliation of the numerators and denominators of basic and diluted income per share is presented below: Three Months Ended 2015 2014 Basic income per share Numerator: Net income $ 2,361 $ 2,392 Denominator: Weighted average common shares outstanding 10,148 10,105 Basic income per share $ .23 $ .24 Diluted income per share Numerator: Net income $ 2,361 $ 2,392 Denominator: Weighted average common shares outstanding 10,148 10,105 Stock options outstanding 13 22 Weighted average common and potential common shares outstanding 10,161 10,127 Diluted income per share $ .23 $ .24 |
Product Warranty Liability (Tab
Product Warranty Liability (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Reconciliation of the Changes in Product Warranty Liability | The reconciliation of the changes in the product warranty liability is as follows: Three Months Ended 2015 2014 Balance at beginning of period $ 653 $ 308 Expense for product warranties 91 97 Product warranty claims paid (112 ) (32 ) Balance at end of period $ 632 $ 373 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Pension Plans, Defined Benefit [Member] | |
Components of Postretirement Benefit Cost (Income) and Pension Benefit Income | The components of pension benefit income are as follows: Three Months Ended 2015 2014 Service cost $ 131 $ 136 Interest cost 359 359 Expected return on assets (795 ) (758 ) Amortization of: Unrecognized prior service cost - 1 Actuarial loss 293 145 Net pension benefit income $ (12 ) $ (117 ) |
Other Postretirement Benefit Plans [Member] | |
Components of Postretirement Benefit Cost (Income) and Pension Benefit Income | The components of the postretirement benefit cost (income) are as follows: Three Months Ended 2015 2014 Service cost $ - $ - Interest cost 7 8 Amortization of prior service benefit - (26 ) Amortization of actuarial loss 10 10 Net postretirement benefit cost (income) $ 17 $ (8 ) |
Changes in Accumulated Other 27
Changes in Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The changes in accumulated other comprehensive loss by component for the three months ended June 30, 2015 and 2014 are as follows: Pension and Foreign Total Balance at April 1, 2015 $ (9,462) $ 406 $ (9,056) Other comprehensive income before reclassifications - (1) (1) Amounts reclassified from accumulated other comprehensive loss 196 - 196 Net current-period other comprehensive income 196 (1) 195 Balance at June 30, 2015 $ (9,266) $ 405 $ (8,861) Pension and Foreign Total Balance at April 1, 2014 $ (6,168) $ 403 $ (5,765) Other comprehensive income before reclassifications - 5 5 Amounts reclassified from accumulated other comprehensive loss 84 - 84 Net current-period other comprehensive income 84 5 89 Balance at June 30, 2014 $ (6,084) $ 408 $ (5,676) |
Reclassifications Out of Accumulated Other Comprehensive Loss by Component | The reclassifications out of accumulated other comprehensive loss by component for the three months ended June 30, 2015 and 2014 are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Affected Line Item in the Condensed Consolidated Statements of Operations and Three Months Ended June 30, 2015 2014 Pension and other postretirement benefit items: Amortization of unrecognized prior service benefit $ - $ 25 (1) Amortization of actuarial loss (303 ) (1) (155 ) (1) (303 ) (130 ) Income before provision for income taxes (107 ) (46 ) Provision for income taxes $ (196 ) $ (84 ) Net income (1) These accumulated other comprehensive loss components are included within the computation of net periodic pension and other postretirement benefit costs. See Note 10. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Revenue Recognition [Line Items] | ||
Company recognizes planned manufacturing process | 28 days | |
Direct labor hours worked on contracts | 575 hours | |
Receivables billed but not paid under retainage provisions in its customer contracts | $ 1,315 | $ 1,751 |
Minimum [Member] | ||
Revenue Recognition [Line Items] | ||
Substantial completion of manufacturing process | 95.00% |
Investments - Additional Inform
Investments - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2015 | |
Minimum [Member] | |
Investment Securities [Line Items] | |
Treasury with original maturities period | 3 months |
Maximum [Member] | |
Investment Securities [Line Items] | |
Investment maturity date range end | May 11, 2016 |
Treasury with original maturities period | 1 year |
Inventories - Major Classificat
Inventories - Major Classifications of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 2,592 | $ 2,763 |
Work in process | 10,678 | 13,685 |
Finished products | 526 | 689 |
Inventory Gross | 13,796 | 17,137 |
Less - progress payments | 2,086 | 3,143 |
Total | $ 11,710 | $ 13,994 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Schedule Of Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets, Gross Carrying Amount | $ 12,800 | $ 12,800 |
Indefinite Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Indefinite Lived Intangible Assets, Net Carrying Amount | 12,800 | 12,800 |
Permits [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets, Gross Carrying Amount | 10,300 | 10,300 |
Indefinite Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Indefinite Lived Intangible Assets, Net Carrying Amount | 10,300 | 10,300 |
Tradename [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets, Gross Carrying Amount | 2,500 | 2,500 |
Indefinite Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Indefinite Lived Intangible Assets, Net Carrying Amount | 2,500 | 2,500 |
Customer Relationships [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 2,700 | 2,700 |
Finite-Lived Intangible Assets, Accumulated Amortization | 817 | 772 |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 1,883 | $ 1,928 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible amortization expense | $ 58 | $ 54 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible amortization expense | 45 | $ 45 |
Future amortization expenses, 2016 | 135 | |
Future amortization expenses, 2017 | 180 | |
Future amortization expenses, 2018 | 180 | |
Future amortization expenses, 2019 | 180 | |
Future amortization expenses, 2020 | $ 180 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 200,000 | |
Stock based compensation expense | $ 14 | $ 17 |
Income tax benefit to stock based compensation | $ 5 | $ 6 |
Discounted purchase price of common stock percentage on fair market value | 85.00% | 85.00% |
Amended and Restated 2000 Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 1,375,000 | |
Amended and Restated 2000 Incentive Plan [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 250,000 | |
Restricted stock awards | 34,000 | 28,000 |
Amended and Restated 2000 Incentive Plan [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options maximum term | 10 years | |
Stock option awards granted | 0 | 0 |
Amended and Restated 2000 Incentive Plan [Member] | Performance Vested Restricted Stock [Member] | Officer [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards | 15,000 | 12,000 |
Vesting period | 3 years | |
Amended and Restated 2000 Incentive Plan [Member] | Performance Vested Restricted Stock [Member] | Officer [Member] | Third Anniversary [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation vesting percentage | 100.00% | |
Amended and Restated 2000 Incentive Plan [Member] | Time Vested Restricted Stock [Member] | Officers and Key Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards | 12,000 | 11,000 |
Vesting period | 3 years | |
Amended and Restated 2000 Incentive Plan [Member] | Time Vested Restricted Stock [Member] | Officers and Key Employees [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation vesting percentage | 33.33% | |
Amended and Restated 2000 Incentive Plan [Member] | Time Vested Restricted Stock [Member] | Officers and Key Employees [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation vesting percentage | 33.33% | |
Amended and Restated 2000 Incentive Plan [Member] | Time Vested Restricted Stock [Member] | Officers and Key Employees [Member] | Share-based Compensation Award, Tranche Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation vesting percentage | 33.33% | |
Amended and Restated 2000 Incentive Plan [Member] | Time Vested Restricted Stock [Member] | Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards | 7,000 | 5,000 |
Vesting period | 1 year | |
Amended and Restated 2000 Incentive Plan [Member] | Time Vested Restricted Stock [Member] | Director [Member] | First Anniversary [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation vesting percentage | 100.00% | |
Amended and Restated 2000 Incentive Plan [Member] | Stock Option and Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 206 | $ 106 |
Income tax benefit to stock based compensation | $ 73 | $ 37 |
Income Per Share - Reconciliati
Income Per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||
Net income | $ 2,361 | $ 2,392 |
Denominator: | ||
Weighted average common shares outstanding | 10,148 | 10,105 |
Basic income per share | $ 0.23 | $ 0.24 |
Numerator: | ||
Net income | $ 2,361 | $ 2,392 |
Denominator: | ||
Weighted average common shares outstanding | 10,148 | 10,105 |
Stock options outstanding | 13 | 22 |
Weighted average common and potential common shares outstanding | 10,161 | 10,127 |
Diluted income per share | $ 0.23 | $ 0.24 |
Income Per Share - Additional I
Income Per Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 12 | 12 |
Product Warranty Liability - Re
Product Warranty Liability - Reconciliation of the Changes in Product Warranty Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Guarantees [Abstract] | ||
Balance at beginning of period | $ 653 | $ 308 |
Expense for product warranties | 91 | 97 |
Product warranty claims paid | (112) | (32) |
Balance at end of period | $ 632 | $ 373 |
Cash Flow Statement - Additiona
Cash Flow Statement - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid | $ 3 | $ 3 |
Income taxes paid (refunded) | 324 | (29) |
Excess tax benefit on stock awards | 12 | 34 |
Capital expenditures incurred but not yet paid | $ 22 | $ 61 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Postretirement Benefit Cost (Income) and Pension Benefit Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 131 | $ 136 |
Interest cost | 359 | 359 |
Expected return on assets | (795) | (758) |
Amortization of prior service benefit | 1 | |
Amortization of actuarial loss | 293 | 145 |
Net pension benefit income and postretirement benefit cost (income) | (12) | (117) |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 7 | 8 |
Amortization of prior service benefit | (26) | |
Amortization of actuarial loss | 10 | 10 |
Net pension benefit income and postretirement benefit cost (income) | $ 17 | $ (8) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Self-Insured medical plan liability | $ 408,000 | $ 446,000 |
Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions to its defined benefit pension plan | 0 | |
Contributions to the plan for the fiscal 2016 | 0 | |
Other Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Post retirement benefit plan | 0 | |
Defined benefit plan, benefit expected to pay | $ 92,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Income Taxes [Line Items] | ||
Liability unrecognized tax benefits | $ 0 | $ 0 |
Latest Tax Year [Member] | Federal Tax Jurisdictions [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2,014 | |
Latest Tax Year [Member] | State Tax Jurisdictions [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2,014 | |
Latest Tax Year [Member] | International Tax Jurisdictions [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2,014 | |
Earliest Tax Year [Member] | Federal Tax Jurisdictions [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2,013 | |
Earliest Tax Year [Member] | State Tax Jurisdictions [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2,010 | |
Earliest Tax Year [Member] | International Tax Jurisdictions [Member] | ||
Income Taxes [Line Items] | ||
Open tax year | 2,012 |
Changes in Accumulated Other 41
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income/(loss), beginning balance | $ (9,056) | $ (5,765) |
Other comprehensive income before reclassifications | (1) | 5 |
Amounts reclassified from accumulated other comprehensive loss | 196 | 84 |
Total other comprehensive income | 195 | 89 |
Accumulated other comprehensive income/(loss), ending balance | (8,861) | (5,676) |
Pension and Other Postretirement Benefits Items [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income/(loss), beginning balance | (9,462) | (6,168) |
Amounts reclassified from accumulated other comprehensive loss | 196 | 84 |
Total other comprehensive income | 196 | 84 |
Accumulated other comprehensive income/(loss), ending balance | (9,266) | (6,084) |
Foreign Currency Items [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income/(loss), beginning balance | 406 | 403 |
Other comprehensive income before reclassifications | (1) | 5 |
Total other comprehensive income | (1) | 5 |
Accumulated other comprehensive income/(loss), ending balance | $ 405 | $ 408 |
Changes in Accumulated Other 42
Changes in Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before provision for income taxes | $ 3,448 | $ 3,626 |
Provision for income taxes | 1,087 | 1,234 |
Net income | 2,361 | 2,392 |
Reclassifications Out of Accumulated Other Comprehensive Loss [Member] | Amortization of Unrecognized Prior Service Benefit [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before provision for income taxes | 25 | |
Reclassifications Out of Accumulated Other Comprehensive Loss [Member] | Amortization of Actuarial Loss [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before provision for income taxes | (303) | (155) |
Reclassifications Out of Accumulated Other Comprehensive Loss [Member] | Pension and Other Postretirement Benefits Items [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before provision for income taxes | (303) | (130) |
Provision for income taxes | (107) | (46) |
Net income | $ (196) | $ (84) |