Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | POWELL INDUSTRIES INC | |
Entity Central Index Key | 80,420 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | powl | |
Entity Common Stock, Shares Outstanding | 11,470,038 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 40,075 | $ 68,359 |
Short-term investments | 15,218 | 26,829 |
Restricted cash | 19,952 | 15,104 |
Accounts receivable, less allowance for doubtful accounts of $239 and $179 | 72,682 | 53,852 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 70,939 | 51,554 |
Inventories | 22,854 | 18,448 |
Income taxes receivable | 7,471 | 8,222 |
Deferred income taxes | 0 | 3,539 |
Prepaid expenses | 2,978 | 3,701 |
Other current assets | 253 | 463 |
Total Current Assets | 252,422 | 250,071 |
Property, plant and equipment, net | 130,545 | 139,420 |
Restricted cash | 3,635 | 9,747 |
Goodwill and intangible assets, net | 1,558 | 1,719 |
Other assets | 13,882 | 13,800 |
Deferred income taxes | 6,608 | 229 |
Total Assets | 408,650 | 414,986 |
Current Liabilities: | ||
Current maturities of long-term debt | 400 | 400 |
Accounts payable | 33,726 | 33,269 |
Accrued salaries, bonuses and commissions | 16,268 | 14,984 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 39,437 | 26,166 |
Accrued product warranty | 2,363 | 3,174 |
Income taxes payable | 1,418 | 1,219 |
Other accrued expenses | 5,507 | 5,860 |
Deferred credit ─ short term | 0 | 507 |
Total Current Liabilities | 99,119 | 85,579 |
Long-term debt, net of current maturities | 1,200 | 1,600 |
Deferred compensation | 5,652 | 5,314 |
Other long-term liabilities | 1,232 | 1,197 |
Total Liabilities | 107,203 | 93,690 |
Commitments and Contingencies (Note E) | ||
Stockholders' Equity: | ||
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, par value $.01; 30,000,000 shares authorized; 12,276,056 and 12,234,656 and shares issued, respectively | 123 | 122 |
Additional paid-in capital | 56,235 | 54,329 |
Retained earnings | 292,974 | 310,598 |
Treasury stock, 806,018 shares at cost | (24,999) | (24,999) |
Accumulated other comprehensive loss | (22,886) | (18,754) |
Total Stockholders' Equity | 301,447 | 321,296 |
Total Liabilities and Stockholders' Equity | $ 408,650 | $ 414,986 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 239 | $ 179 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 12,276,056 | 12,234,656 |
Treasury stock, shares | 806,018 | 806,018 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 122,130 | $ 85,927 | $ 313,819 | $ 300,948 |
Cost of goods sold | 103,755 | 76,873 | 272,469 | 261,073 |
Gross profit | 18,375 | 9,054 | 41,350 | 39,875 |
Selling, general and administrative expenses | 16,174 | 14,761 | 48,462 | 46,453 |
Research and development expenses | 1,632 | 1,726 | 4,926 | 4,818 |
Amortization of intangible assets | 44 | 87 | 161 | 263 |
Restructuring and separation expenses | 0 | 0 | 0 | 840 |
Operating income (loss) | 525 | (7,520) | (12,199) | (12,499) |
Other income | 0 | (507) | (507) | (1,522) |
Interest expense | 51 | 41 | 153 | 122 |
Interest income | (215) | (156) | (711) | (287) |
Income (loss) before income taxes | 689 | (6,898) | (11,134) | (10,812) |
Income tax provision (benefit) | 388 | (3,683) | (2,443) | (6,469) |
Net income (loss) | $ 301 | $ (3,215) | $ (8,691) | $ (4,343) |
Income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.03 | $ (0.28) | $ (0.76) | $ (0.38) |
Diluted (in dollars per share) | $ 0.03 | $ (0.28) | $ (0.76) | $ (0.38) |
Weighted average shares: | ||||
Basic (in shares) | 11,514 | 11,463 | 11,503 | 11,449 |
Diluted (in shares) | 11,587 | 11,463 | 11,503 | 11,449 |
Dividends per share (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.78 | $ 0.78 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 301 | $ (3,215) | $ (8,691) | $ (4,343) |
Foreign currency translation adjustments | (2,543) | 2,849 | (4,132) | 1,124 |
Comprehensive loss | $ (2,242) | $ (366) | $ (12,823) | $ (3,219) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities: | ||
Net loss | $ (8,691) | $ (4,343) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 9,494 | 9,218 |
Amortization | 161 | 263 |
Stock-based compensation | 2,485 | 2,304 |
Bad debt expense (recovery) | 110 | |
Bad debt expense (recovery) | (226) | |
Deferred income tax benefit | (2,840) | (915) |
Gain on amended supply agreement | (507) | (1,522) |
Cash received from amended supply agreement | 0 | 2,333 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (19,252) | 23,847 |
Costs and billings in excess of estimated earnings on uncompleted contracts | (6,211) | 17,861 |
Inventories | (4,542) | 7,519 |
Income taxes | 945 | (6,206) |
Prepaid expenses and other current assets | 924 | 2,022 |
Accounts payable | 1,288 | (9,627) |
Accrued liabilities | 355 | (14,017) |
Other, net | 224 | (1,387) |
Net cash provided by (used in) operating activities | (26,057) | 27,124 |
Investing Activities: | ||
Purchases of short-term investments | (20,712) | (60,018) |
Maturities of short-term investments | 31,444 | 4,654 |
Changes in restricted cash | 1,264 | (25,301) |
Purchases of property, plant and equipment | (3,978) | (2,520) |
Proceeds from sale of property, plant and equipment | 56 | 11 |
Net cash provided by (used in) investing activities | 8,074 | (83,174) |
Financing Activities: | ||
Payments on industrial development revenue bonds | (400) | (400) |
Shares withheld in lieu of employee tax withholding | (578) | (398) |
Dividends paid | (8,934) | (8,904) |
Net cash used in financing activities | (9,912) | (9,702) |
Net decrease in cash and cash equivalents | (27,895) | (65,752) |
Effect of exchange rate changes on cash and cash equivalents | (389) | 516 |
Cash and cash equivalents, beginning of period | 68,359 | 97,720 |
Cash and cash equivalents, end of period | $ 40,075 | $ 32,484 |
OVERVIEW AND SUMMARY OF SIGNIFI
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview Powell Industries, Inc. (we, us, our, Powell or the Company) was incorporated in the state of Delaware in 2004 as a successor to a Nevada company incorporated in 1968. The Nevada company was the successor to a company founded by William E. Powell in 1947, which merged into the Company in 1977. Our major subsidiaries, all of which are wholly owned, include: Powell Electrical Systems, Inc.; Powell (UK) Limited; Powell Canada Inc. and Powell Industries International, B.V. We develop, design, manufacture and service custom-engineered products and systems for the distribution, control and monitoring of electrical energy. Headquartered in Houston, Texas, we serve the oil and gas refining, onshore and offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper and other heavy industrial markets. Basis of Presentation These unaudited condensed consolidated financial statements include the accounts of Powell and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP), have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. We believe that these financial statements contain all adjustments necessary so that they are not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Powell and its subsidiaries included in Powell’s Annual Report on Form 10-K for the year ended September 30, 2017 , which was filed with the Securities and Exchange Commission (SEC) on December 6, 2017 . References to Fiscal 2018 and Fiscal 2017 used throughout this report shall mean our fiscal years ended September 30, 2018 and 2017 , respectively. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying footnotes. The most significant estimates used in our condensed consolidated financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, warranty accruals and income taxes. The amounts recorded for warranties, legal, income taxes, impairment of long-lived assets (when applicable) and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience and on various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Additionally, the recognition of deferred tax assets requires estimates related to future income and other assumptions regarding timing and future profitability. Estimates routinely change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our prior estimates. New Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition that supersedes previously issued revenue recognition guidance. This standard provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue (and the related cash flows) arising from customer contracts, significant judgments and changes in judgments used in applying the revenue model and the assets recognized from costs incurred to obtain or fulfill a contract. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which would be our fiscal year ending September 30, 2019. We plan to use the modified retrospective basis upon adoption which could result in a cumulative effect adjustment as of October 1, 2018, if material. We continue to hold regular meetings with our implementation team which includes training and evaluating contracts to identity potential impacts of the standard on our current accounting policies and disclosures. We will update our accounting policies and procedures and determine the impact from this new standard on our contracts outstanding as of October 1, 2018. While we are still evaluating the potential impact of this standard on our financial statements, we believe accounting for variable consideration, cancellations for convenience clauses and the number of performance obligations contained in each contract could have the greatest significance. We have not yet been able to estimate the impact the new revenue recognition criteria will have on our consolidated financial statements and related disclosures, but the impact on our financial statements from this guidance will be determined in large part by the contracts that are in progress as of the adoption date. In November 2015, the FASB issued an amendment to the topic regarding income taxes which requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in the statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. We have adopted this topic prospectively in Fiscal 2018 and our statement of financial position reflects this reclassification. We have not retrospectively adjusted prior periods. In February 2016, the FASB issued a new topic on leases which requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The new topic is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This would be our fiscal year ending September 30, 2020. We are still evaluating the potential impact of this topic on our financial statements. In November 2016, the FASB issued a new topic on the statement of cash flows that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This topic is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, which would be our fiscal year ending September 30, 2019. We are still evaluating this new topic, but do not expect it to have a material impact on our statement of cash flows. In May 2017, the FASB issued a new topic on modification accounting with regards to stock based compensation. This new topic clarifies when a change to the terms or conditions of a share-based payment award should be accounted for as a modification. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification, as an equity instrument or a liability instrument, of the modified award are the same before and after a change to the terms or conditions of the share-based payment award. This topic is effective for annual reporting periods beginning after December 15, 2017, which is our fiscal year ending September 30, 2019. We are still evaluating this new topic, but do not expect it to have a material impact on our consolidated financial position or results of operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE We compute basic earnings per share by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common share includes the weighted average of additional shares associated with the incremental effect of dilutive restricted stock and restricted stock units, as prescribed by the FASB guidance on earnings per share. The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands, except per share data): Three months ended June 30, Nine months ended June 30, 2018 2017 2018 2017 Numerator: Net income (loss) $ 301 $ (3,215 ) $ (8,691 ) $ (4,343 ) Denominator: Weighted average basic shares 11,514 11,463 11,503 11,449 Dilutive effect of restricted stock units 73 — — — Weighted average diluted shares 11,587 11,463 11,503 11,449 Income (loss) per share: Basic $ 0.03 $ (0.28 ) $ (0.76 ) $ (0.38 ) Diluted $ 0.03 $ (0.28 ) $ (0.76 ) $ (0.38 ) For the quarter ended June 30, 2017 and nine months ended June 30, 2018 and 2017 , we incurred net losses and therefore all potential common shares were deemed to be anti-dilutive. |
DETAIL OF SELECTED BALANCE SHEE
DETAIL OF SELECTED BALANCE SHEET ACCOUNTS | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DETAIL OF SELECTED BALANCE SHEET ACCOUNTS | DETAIL OF SELECTED BALANCE SHEET ACCOUNTS Allowance for Doubtful Accounts Activity in our allowance for doubtful accounts receivable consisted of the following (in thousands): Three months ended June 30, Nine months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 264 $ 310 $ 179 $ 811 Bad debt expense (recovery) 18 (129 ) 110 (226 ) Uncollectible accounts written off, net of recoveries (36 ) (92 ) (44 ) (493 ) Change due to foreign currency translation (7 ) 1 (6 ) (2 ) Balance at end of period $ 239 $ 90 $ 239 $ 90 Inventories The components of inventories are summarized below (in thousands): June 30, 2018 September 30, 2017 Raw materials, parts and subassemblies, net $ 21,402 $ 17,848 Work-in-progress 1,452 600 Total inventories $ 22,854 $ 18,448 Cost and Estimated Earnings on Uncompleted Contracts The components of costs and estimated earnings and related amounts billed on uncompleted contracts are summarized below (in thousands): June 30, 2018 September 30, 2017 Costs incurred on uncompleted contracts $ 823,190 $ 987,164 Estimated earnings 246,852 316,970 1,070,042 1,304,134 Less: Billings to date (1,038,540 ) (1,278,746 ) Net underbilled position $ 31,502 $ 25,388 Included in the accompanying balance sheets under the following captions: Costs and estimated earnings in excess of billings on uncompleted contracts $ 70,939 $ 51,554 Billings in excess of costs and estimated earnings on uncompleted contracts (39,437 ) (26,166 ) Net underbilled position $ 31,502 $ 25,388 Accrued Product Warranty Activity in our product warranty accrual consisted of the following (in thousands): Three months ended June 30, Nine months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 2,241 $ 3,649 $ 3,174 $ 4,639 Increase in warranty expense 1,036 593 970 1,313 Deduction for warranty charges (891 ) (949 ) (1,752 ) (2,618 ) Change due to foreign currency translation (23 ) 39 (29 ) (2 ) Balance at end of period $ 2,363 $ 3,332 $ 2,363 $ 3,332 |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following (in thousands): June 30, 2018 September 30, 2017 Industrial development revenue bonds $ 1,600 $ 2,000 Less current portion (400 ) (400 ) Total long-term debt $ 1,200 $ 1,600 U.S. Revolver We have a $75.0 million revolving credit facility (U.S. Revolver) to provide working capital support and letters of credit which expires on June 27, 2022 . The amount available under the U.S. Revolver at June 30, 2018 was reduced by $22.3 million for our outstanding letters of credit. Currently, our U.S. Revolver can only be used for letters of credit until we meet certain financial ratios. There were no loans outstanding under the U.S. Revolver as of June 30, 2018 . Per the terms of the U.S. Revolver, we are required to maintain a cash balance in a pledged cash collateral account equal to 102% of the outstanding amount of any loans and letter of credit obligations until we meet certain financial ratios. As of June 30, 2018 , the balance in the pledged account was $23.6 million . The cash collateral associated with the outstanding letters of credit that are due to expire beyond twelve months has been classified as non-current restricted cash on the balance sheet. As of June 30, 2018 , there was $52.7 million available for the issuance of letters of credit under the U.S. Revolver. The interest rate for amounts outstanding under the U.S. Revolver is a floating rate based upon the higher of the Federal Funds Rate plus 0.5%, the bank’s prime rate, or the Eurocurrency rate plus 1.00%. Once the applicable rate is determined, a margin ranging up to 1.25% is added to the applicable rate. The U.S. Revolver is collateralized by a pledge of 100% of the voting capital stock of each of our domestic subsidiaries and 65% of the voting capital stock of each non-domestic subsidiary. The U.S. Revolver provides for customary events of default and carries cross-default provisions with other existing debt agreements. If an event of default (as defined in the U.S. Revolver) occurs and is continuing, on the terms and subject to the conditions set forth in the U.S. Revolver, amounts outstanding under the U.S. Revolver may be accelerated and may become immediately due and payable. It also contains financial covenants defining various financial measures and the levels of these measures with which we must comply, as well as a “material adverse change” clause. A “material adverse change” is defined as a material change in our operations, business, properties, liabilities or condition (financial or otherwise) or a material impairment of our ability to perform our obligations under our credit agreements. As of June 30, 2018 , we were in compliance with all of the financial covenants of the U.S. Revolver. Industrial Development Revenue Bonds We borrowed $8.0 million in October 2001 through a loan agreement funded with proceeds from tax-exempt industrial development revenue bonds (Bonds). These Bonds were issued by the Illinois Development Finance Authority and were used for the completion of our Northlake, Illinois facility. Pursuant to the Bond issuance, a reimbursement agreement between us and a major domestic bank required an issuance by the bank of an irrevocable direct-pay letter of credit (Bond LC), as collateral, to the Bonds’ trustee to guarantee payment of the Bonds’ principal and interest when due. The Bond LC is subject to both early termination and extension provisions customary to such agreements, as well as various covenants, for which we were in compliance at June 30, 2018 . While the Bonds mature in 2021, the reimbursement agreement requires annual redemptions of $0.4 million that commenced on October 25, 2002. A sinking fund is used for the redemption of the Bonds. The Bonds bear interest at a floating rate determined weekly by the Bonds’ remarketing agent, which was the underwriter for the Bonds and is an affiliate of the bank. This interest rate was 1.58% as of June 30, 2018 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Letters of Credit, Surety Bonds and Bank Guarantees Certain customers require us to post letters of credit or surety bonds which assure that we will perform under the terms of our contract. In the event of default, the counterparty may demand payment from the bank under a letter of credit or performance by the surety under a bond. To date, there have been no significant expenses related to either letters of credit or surety bonds for the periods reported. We were contingently liable for letters of credit of $22.3 million as of June 30, 2018 . We also had surety bonds totaling $168.3 million that were outstanding, with additional bonding capacity of $581.7 million available, at June 30, 2018 . Additionally, we have a $6.6 million facility agreement (Facility Agreement) between Powell (UK) Limited and a large international bank. This Facility Agreement provides Powell (UK) Limited the ability to enter into bank guarantees as well as forward exchange contracts and currency options. At June 30, 2018 , we had outstanding guarantees totaling $3.2 million under this Facility Agreement and amounts available under this Facility Agreement were $3.4 million . The Facility Agreement provides for financial covenants and customary events of default, and carries cross-default provisions with our U.S. Revolver. If an event of default (as defined in the Facility Agreement) occurs and is continuing, per the terms and subject to the conditions set forth therein, obligations outstanding under the Facility Agreement may be accelerated and declared immediately due and payable. As of June 30, 2018 , we were in compliance with all of the financial covenants of the Facility Agreement. Litigation We are involved in various legal proceedings, claims and other disputes arising from our commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. Although we can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on us, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on our consolidated financial position or results of operations or liquidity. Liquidated Damages Certain of our customer contracts have schedule and performance obligation clauses that, if we fail to meet them, could require us to pay liquidated damages. Each individual contract defines the conditions under which the customer may make a claim against us. As of June 30, 2018 , our exposure to possible liquidated damages was $2.6 million , of which approximately $1.6 million is probable. Based on our actual or projected failure to meet these various contractual commitments, $1.5 million has been recorded as a reduction to revenue. Of the $1.5 million recorded as a reduction to revenue, approximately $1.0 million was recognized in prior periods. We will attempt to obtain change orders, contract extensions or accelerate project completion which may resolve the potential for any unaccrued liquidated damage. Should we fail to achieve relief on some or all of these contractual obligations, we could be required to pay additional liquidated damages, which could negatively impact our future operating results. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2017 for a full description of our existing stock-based compensation plans. Restricted Stock Units We issue restricted stock units (RSUs) to certain officers and key employees of the Company. The fair value of the RSUs is based on the price of our common stock as reported on the NASDAQ Global Market on the grant dates. The typical annual grant vests over a three -year period from the date of issuance. Sixty percent of those grants are time-based and vest over a three -year period on each anniversary of the grant date, based on continued employment. The remaining forty percent of the grant will be earned based on the three -year earnings performance of the Company following the grant date. At June 30, 2018 , there were 199,317 RSUs outstanding. The RSUs do not have voting rights but do receive dividend equivalents upon vesting; additionally, the shares of common stock underlying the RSUs are not considered issued and outstanding until vested and common stock is issued. RSU activity (number of shares) for the nine months ended June 30, 2018 is summarized below: Number of Weighted Outstanding at September 30, 2017 177,737 $ 37.00 Granted 88,000 29.88 Vested (43,620 ) 35.30 Forfeited/canceled (22,800 ) 41.88 Outstanding at June 30, 2018 199,317 $ 33.69 During the nine months ended June 30, 2018 and 2017 , we recorded compensation expense of $2.0 million and $1.7 million , respectively, related to the RSUs. Restricted Stock Each non-employee director receives 2,000 restricted shares of the Company’s common stock annually. Fifty -percent of the restricted stock granted to each of our non-employee directors vests immediately, while the remaining fifty -percent will vest on the first anniversary of the grant date. Compensation expense is recognized immediately for the first fifty -percent of the restricted stock granted, while compensation expense for the remaining fifty -percent is recognized over the remaining vesting period based on the price per share on the grant date. In February 2018, 12,000 shares of restricted stock were issued to our non-employee directors under the 2014 Director Plan at a price of $27.88 per share. In April 2018, we issued 2,000 shares of restricted stock to a non-employee director at a price of $27.15 per share. During the nine months ended June 30, 2018 and 2017 , we recorded compensation expense of $0.4 million and $0.6 million , respectively, related to restricted stock. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We measure certain financial assets and liabilities at fair value. Fair value is defined as an “exit price” which represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in valuing an asset or liability. The accounting guidance requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. As a basis for considering such assumptions and inputs, a fair value hierarchy has been established which identifies and prioritizes three levels of inputs to be used in measuring fair value. The three levels of the fair value hierarchy are as follows: Level 1 — Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 — Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions. The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2018 (in thousands): Fair Value Measurements at June 30, 2018 Quoted Prices in Significant Other Significant Fair Value at Assets: Cash and cash equivalents $ 40,075 $ — $ — $ 40,075 Short-term investments 15,218 — — 15,218 Restricted cash 23,587 — — 23,587 Deferred compensation — 6,591 — 6,591 Liabilities: Deferred compensation — 5,377 — 5,377 The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2017 (in thousands): Fair Value Measurements at September 30, 2017 Quoted Prices in Significant Other Significant Fair Value at Assets: Cash and cash equivalents $ 68,359 $ — $ — $ 68,359 Short-term investments 26,829 — — 26,829 Restricted cash 24,851 24,851 Deferred compensation — 6,442 — 6,442 Liabilities: Deferred compensation — 4,991 — 4,991 Fair value guidance requires certain fair value disclosures be presented in both interim and annual reports. The estimated fair value amounts of financial instruments have been determined using available market information and valuation methodologies described below. Cash and cash equivalents Cash and cash equivalents, primarily funds held in money market savings instruments, are reported at their current carrying value which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in our Condensed Consolidated Balance Sheets. Short-term Investments – Short-term investments include time deposits with original maturities of three months or more. Restricted Cash – Restricted cash represents a pledged cash collateral balance which is required under our U.S. Revolver and is held in an interest-bearing account. See Note D for further discussion on restricted cash. Deferred Compensation – We hold investments in an irrevocable Rabbi Trust for our deferred compensation plan. These assets include both mutual fund investments and company-owned life insurance policies. Under the plan, participants designate investment options to serve as the basis for measurement of the notional value of their accounts. The mutual funds and company-owned life insurance policies are combined in the plan and are therefore categorized as Level 2 in the fair value measurement hierarchy. There were no transfers between levels within the fair value measurement hierarchy during the quarter ended June 30, 2018 . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The calculation of the effective tax rate is as follows (in thousands): Three months ended June 30, Nine months ended June 30, 2018 2017 2018 2017 Income (loss) before income taxes $ 689 $ (6,898 ) $ (11,134 ) $ (10,812 ) Income tax provision (benefit) 388 (3,683 ) (2,443 ) (6,469 ) Net income (loss) $ 301 $ (3,215 ) $ (8,691 ) $ (4,343 ) Effective tax rate 56 % 53 % 22 % 60 % On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the Act). The Act lowers the corporate tax rate from 35% to 21% effective January 1, 2018. As a result, the U.S. federal statutory rate for Fiscal 2018 is a reduced blended U.S. tax rate of 24.5% . The final impact of the Act may differ from our estimates based on changes in interpretations or assumptions we make, as well as the issuance of additional guidance. In the third quarter of Fiscal 2018, the effective tax rate was negatively impacted by the relative amounts of income/loss recognized in various jurisdictions as well as a foreign tax loss which is reserved with a valuation allowance. The effective tax rate for the third quarter of Fiscal 2017 was favorably impacted by discrete items recognized during the quarter, primarily related to the Research and Development Tax Credit (R&D Tax Credit). The effective tax rate for the third quarter of Fiscal 2017 was also favorably impacted by the lower tax rate in the United Kingdom, the relative amounts of income/loss recognized in various jurisdictions, as well as the utilization of net operating loss carryforwards in Canada that are fully reserved with a valuation allowance. The effective tax rate for the nine months ended June 30, 2018 decreased due to the lower U.S. corporate tax rate as well as a foreign tax loss which is reserved with a valuation allowance. Additionally we recorded deferred tax expense of $0.7 million due to the re-measurement of our U.S. deferred tax assets under the Act, which are not expected to be realized prior to the end of Fiscal 2018. The effective tax rate for the nine months ended June 30, 2017 was favorably impacted by discrete items, primarily related to the R&D Tax Credit. The effective tax rate for the nine months ended June 30, 2017 was also favorably impacted by the lower tax rate in the United Kingdom, the relative amounts of income/loss recognized in various jurisdictions, as well as the utilization of net operating loss carryforwards in Canada that are fully reserved with a valuation allowance. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On August 6, 2018, our Board of Directors declared a quarterly cash dividend on our common stock in the amount of $0.26 per share. The dividend is payable on September 19, 2018 to shareholders of record at the close of business on August 22, 2018. |
OVERVIEW AND SUMMARY OF SIGNI16
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited condensed consolidated financial statements include the accounts of Powell and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP), have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows with respect to the interim condensed consolidated financial statements have been included. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. We believe that these financial statements contain all adjustments necessary so that they are not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Powell and its subsidiaries included in Powell’s Annual Report on Form 10-K for the year ended September 30, 2017 , which was filed with the Securities and Exchange Commission (SEC) on December 6, 2017 . References to Fiscal 2018 and Fiscal 2017 used throughout this report shall mean our fiscal years ended September 30, 2018 and 2017 , respectively. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying footnotes. The most significant estimates used in our condensed consolidated financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, warranty accruals and income taxes. The amounts recorded for warranties, legal, income taxes, impairment of long-lived assets (when applicable) and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience and on various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Additionally, the recognition of deferred tax assets requires estimates related to future income and other assumptions regarding timing and future profitability. Estimates routinely change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our prior estimates. |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition that supersedes previously issued revenue recognition guidance. This standard provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue (and the related cash flows) arising from customer contracts, significant judgments and changes in judgments used in applying the revenue model and the assets recognized from costs incurred to obtain or fulfill a contract. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which would be our fiscal year ending September 30, 2019. We plan to use the modified retrospective basis upon adoption which could result in a cumulative effect adjustment as of October 1, 2018, if material. We continue to hold regular meetings with our implementation team which includes training and evaluating contracts to identity potential impacts of the standard on our current accounting policies and disclosures. We will update our accounting policies and procedures and determine the impact from this new standard on our contracts outstanding as of October 1, 2018. While we are still evaluating the potential impact of this standard on our financial statements, we believe accounting for variable consideration, cancellations for convenience clauses and the number of performance obligations contained in each contract could have the greatest significance. We have not yet been able to estimate the impact the new revenue recognition criteria will have on our consolidated financial statements and related disclosures, but the impact on our financial statements from this guidance will be determined in large part by the contracts that are in progress as of the adoption date. In November 2015, the FASB issued an amendment to the topic regarding income taxes which requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in the statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. We have adopted this topic prospectively in Fiscal 2018 and our statement of financial position reflects this reclassification. We have not retrospectively adjusted prior periods. In February 2016, the FASB issued a new topic on leases which requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The new topic is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This would be our fiscal year ending September 30, 2020. We are still evaluating the potential impact of this topic on our financial statements. In November 2016, the FASB issued a new topic on the statement of cash flows that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This topic is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, which would be our fiscal year ending September 30, 2019. We are still evaluating this new topic, but do not expect it to have a material impact on our statement of cash flows. In May 2017, the FASB issued a new topic on modification accounting with regards to stock based compensation. This new topic clarifies when a change to the terms or conditions of a share-based payment award should be accounted for as a modification. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification, as an equity instrument or a liability instrument, of the modified award are the same before and after a change to the terms or conditions of the share-based payment award. This topic is effective for annual reporting periods beginning after December 15, 2017, which is our fiscal year ending September 30, 2019. We are still evaluating this new topic, but do not expect it to have a material impact on our consolidated financial position or results of operations. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Weighted Average Shares used in Computation of Earnings Per Share | The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands, except per share data): Three months ended June 30, Nine months ended June 30, 2018 2017 2018 2017 Numerator: Net income (loss) $ 301 $ (3,215 ) $ (8,691 ) $ (4,343 ) Denominator: Weighted average basic shares 11,514 11,463 11,503 11,449 Dilutive effect of restricted stock units 73 — — — Weighted average diluted shares 11,587 11,463 11,503 11,449 Income (loss) per share: Basic $ 0.03 $ (0.28 ) $ (0.76 ) $ (0.38 ) Diluted $ 0.03 $ (0.28 ) $ (0.76 ) $ (0.38 ) |
DETAIL OF SELECTED BALANCE SH18
DETAIL OF SELECTED BALANCE SHEET ACCOUNTS (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Activity in Allowance for Doubtful Accounts Receivable | Activity in our allowance for doubtful accounts receivable consisted of the following (in thousands): Three months ended June 30, Nine months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 264 $ 310 $ 179 $ 811 Bad debt expense (recovery) 18 (129 ) 110 (226 ) Uncollectible accounts written off, net of recoveries (36 ) (92 ) (44 ) (493 ) Change due to foreign currency translation (7 ) 1 (6 ) (2 ) Balance at end of period $ 239 $ 90 $ 239 $ 90 |
Components of Inventories | The components of inventories are summarized below (in thousands): June 30, 2018 September 30, 2017 Raw materials, parts and subassemblies, net $ 21,402 $ 17,848 Work-in-progress 1,452 600 Total inventories $ 22,854 $ 18,448 |
Components of Cost and Estimated Earnings on Uncompleted Contracts | The components of costs and estimated earnings and related amounts billed on uncompleted contracts are summarized below (in thousands): June 30, 2018 September 30, 2017 Costs incurred on uncompleted contracts $ 823,190 $ 987,164 Estimated earnings 246,852 316,970 1,070,042 1,304,134 Less: Billings to date (1,038,540 ) (1,278,746 ) Net underbilled position $ 31,502 $ 25,388 Included in the accompanying balance sheets under the following captions: Costs and estimated earnings in excess of billings on uncompleted contracts $ 70,939 $ 51,554 Billings in excess of costs and estimated earnings on uncompleted contracts (39,437 ) (26,166 ) Net underbilled position $ 31,502 $ 25,388 |
Activity in Product Warranty Accrual | Activity in our product warranty accrual consisted of the following (in thousands): Three months ended June 30, Nine months ended June 30, 2018 2017 2018 2017 Balance at beginning of period $ 2,241 $ 3,649 $ 3,174 $ 4,639 Increase in warranty expense 1,036 593 970 1,313 Deduction for warranty charges (891 ) (949 ) (1,752 ) (2,618 ) Change due to foreign currency translation (23 ) 39 (29 ) (2 ) Balance at end of period $ 2,363 $ 3,332 $ 2,363 $ 3,332 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-term debt | Long-term debt consisted of the following (in thousands): June 30, 2018 September 30, 2017 Industrial development revenue bonds $ 1,600 $ 2,000 Less current portion (400 ) (400 ) Total long-term debt $ 1,200 $ 1,600 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Units Activity | RSU activity (number of shares) for the nine months ended June 30, 2018 is summarized below: Number of Weighted Outstanding at September 30, 2017 177,737 $ 37.00 Granted 88,000 29.88 Vested (43,620 ) 35.30 Forfeited/canceled (22,800 ) 41.88 Outstanding at June 30, 2018 199,317 $ 33.69 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2018 (in thousands): Fair Value Measurements at June 30, 2018 Quoted Prices in Significant Other Significant Fair Value at Assets: Cash and cash equivalents $ 40,075 $ — $ — $ 40,075 Short-term investments 15,218 — — 15,218 Restricted cash 23,587 — — 23,587 Deferred compensation — 6,591 — 6,591 Liabilities: Deferred compensation — 5,377 — 5,377 The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2017 (in thousands): Fair Value Measurements at September 30, 2017 Quoted Prices in Significant Other Significant Fair Value at Assets: Cash and cash equivalents $ 68,359 $ — $ — $ 68,359 Short-term investments 26,829 — — 26,829 Restricted cash 24,851 24,851 Deferred compensation — 6,442 — 6,442 Liabilities: Deferred compensation — 4,991 — 4,991 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Calculation of Effective Income Tax Rate | The calculation of the effective tax rate is as follows (in thousands): Three months ended June 30, Nine months ended June 30, 2018 2017 2018 2017 Income (loss) before income taxes $ 689 $ (6,898 ) $ (11,134 ) $ (10,812 ) Income tax provision (benefit) 388 (3,683 ) (2,443 ) (6,469 ) Net income (loss) $ 301 $ (3,215 ) $ (8,691 ) $ (4,343 ) Effective tax rate 56 % 53 % 22 % 60 % |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net loss | $ 301 | $ (3,215) | $ (8,691) | $ (4,343) |
Denominator: | ||||
Weighted average basic shares (in shares) | 11,514 | 11,463 | 11,503 | 11,449 |
Dilutive effect of restricted stock units (in shares) | 73 | 0 | 0 | 0 |
Weighted average diluted shares | 11,587 | 11,463 | 11,503 | 11,449 |
Net loss per share: | ||||
Basic (in dollars per share) | $ 0.03 | $ (0.28) | $ (0.76) | $ (0.38) |
Diluted (in dollars per share) | $ 0.03 | $ (0.28) | $ (0.76) | $ (0.38) |
DETAIL OF SELECTED BALANCE SH24
DETAIL OF SELECTED BALANCE SHEET ACCOUNTS - Activity in Allowance for Doubtful Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Balance at beginning of period | $ 264 | $ 310 | $ 179 | $ 811 |
Bad debt expense | 18 | 110 | ||
Bad debt (recovery) | (129) | (226) | ||
Uncollectible accounts written off, net of recoveries | (36) | (92) | (44) | (493) |
Change due to foreign currency translation | (7) | 1 | (6) | (2) |
Balance at end of period | $ 239 | $ 90 | $ 239 | $ 90 |
DETAIL OF SELECTED BALANCE SH25
DETAIL OF SELECTED BALANCE SHEET ACCOUNTS - Components of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials, parts and subassemblies, net | $ 21,402 | $ 17,848 |
Work-in-progress | 1,452 | 600 |
Total inventories | $ 22,854 | $ 18,448 |
DETAIL OF SELECTED BALANCE SH26
DETAIL OF SELECTED BALANCE SHEET ACCOUNTS - Cost and Estimated Earnings on Uncompleted Contracts (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Costs incurred on uncompleted contracts | $ 823,190 | $ 987,164 |
Estimated earnings | 246,852 | 316,970 |
Total | 1,070,042 | 1,304,134 |
Less: Billings to date | (1,038,540) | (1,278,746) |
Net underbilled position | 31,502 | 25,388 |
Included in the accompanying balance sheets under the following captions: | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 70,939 | 51,554 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (39,437) | (26,166) |
Net underbilled position | $ 31,502 | $ 25,388 |
DETAIL OF SELECTED BALANCE SH27
DETAIL OF SELECTED BALANCE SHEET ACCOUNTS - Activity in Product Warranty Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 2,241 | $ 3,649 | $ 3,174 | $ 4,639 |
Increase (decrease) in warranty expense | 1,036 | 593 | 970 | 1,313 |
Deduction for warranty charges | (891) | (949) | (1,752) | (2,618) |
Change due to foreign currency translation | (23) | 39 | (29) | (2) |
Balance at end of period | $ 2,363 | $ 3,332 | $ 2,363 | $ 3,332 |
LONG-TERM DEBT - Components of
LONG-TERM DEBT - Components of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Debt Disclosure [Abstract] | ||
Industrial development revenue bonds | $ 1,600 | $ 2,000 |
Less current portion | (400) | (400) |
Total long-term debt | $ 1,200 | $ 1,600 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2018 | Oct. 31, 2001 | |
U.S. Revolver | ||
Line Of Credit Facility [Line Items] | ||
Revolving credit facility | $ 75,000,000 | |
Revolving credit facility borrowings, outstanding amount | 0 | |
Amount available under the credit facility | $ 52,700,000 | |
Percentage of voting capital stock pledged as collateral | 100.00% | |
Non-domestic subsidiaries of voting capital stock | 65.00% | |
U.S. Revolver | Maximum | ||
Line Of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.25% | |
U.S. Revolver | Federal Funds Rate | ||
Line Of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
U.S. Revolver | Eurocurrency Rate | ||
Line Of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.00% | |
U.S. Revolver | The Third Amendment | ||
Line Of Credit Facility [Line Items] | ||
Cash collateral percent of outstanding debt (at least) | 102.00% | |
Cash collateral pledged balance | $ 23,600,000 | |
U.S. Revolver | Financial Standby Letter of Credit | ||
Line Of Credit Facility [Line Items] | ||
Guarantee liability | 22,300,000 | |
Industrial Development Revenue Bonds | ||
Line Of Credit Facility [Line Items] | ||
Borrowings | $ 8,000,000 | |
Reimbursement agreement requires annual redemptions | $ 400,000 | |
Interest rate | 1.58% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 9 Months Ended |
Jun. 30, 2018USD ($) | |
Guarantee Obligations [Line Items] | |
Additional bonding capacity | $ 581,700,000 |
Liquidated damages | 2,600,000 |
Probable liquidated damages | 1,600,000 |
Decrease in revenue, failure to meet contractual commitments | 1,500,000 |
Decrease in revenue, failure to meet contractual commitments for revenue recognized in prior period | 1,000,000 |
Facility Agreement | Powell (UK) Limited | |
Guarantee Obligations [Line Items] | |
Guarantee liability | 3,200,000 |
Revolving credit facility | 6,601,500 |
Amount of credit facility remaining borrowing capacity | 3,400,000 |
Surety Bonds | |
Guarantee Obligations [Line Items] | |
Guarantee liability | 168,300,000 |
U.S. Revolver | |
Guarantee Obligations [Line Items] | |
Revolving credit facility | 75,000,000 |
Amount of credit facility remaining borrowing capacity | 52,700,000 |
U.S. Revolver | Financial Standby Letter of Credit | |
Guarantee Obligations [Line Items] | |
Guarantee liability | $ 22,300,000 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | |||
Apr. 30, 2018 | Feb. 28, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Unvested restricted stock outstanding (in shares) | 199,317 | 177,737 | |||
Compensation expense | $ 2 | $ 1.7 | |||
Restricted Stock Units (RSUs) | Time Based Restricted Stock Unit | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Actual amount of RSUs earned based on cumulative earnings | 60.00% | ||||
Restricted Stock Units (RSUs) | Performance Based Restricted Stock Unit | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Target RSUs granted range | 40.00% | ||||
Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Compensation expense | $ 0.4 | $ 0.6 | |||
Restricted Stock | Immediate Vesting | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting, percentage | 50.00% | ||||
Restricted Stock | Anniversary of Grant Date | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting, percentage | 50.00% | ||||
Non Employee Director Equity Incentive Plan | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issued under the plan (in shares) | 2,000 | ||||
Restricted stock issued (in shares) | 2,000 | 12,000 | |||
Shares issued, price per share under 2014 Director Plan (in dollars per share) | $ 27.15 | $ 27.88 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Number of Restricted Stock Units | |
Outstanding at beginning of period (in shares) | shares | 177,737 |
Granted (in shares) | shares | 88,000 |
Vested (in shares) | shares | (43,620) |
Forfeited/cancelled (in shares) | shares | (22,800) |
Outstanding at end of period (in shares) | shares | 199,317 |
Weighted Average Fair Value Per Share | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 37 |
Granted (in dollars per share) | $ / shares | 29.88 |
Vested (in dollars per share) | $ / shares | 35.30 |
Forfeited/canceled (in dollars per share) | $ / shares | 41.88 |
Outstanding at end of period(in dollars per share) | $ / shares | $ 33.69 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Assets: | ||
Cash and cash equivalents | $ 40,075 | $ 68,359 |
Short-term investments | 15,218 | 26,829 |
Restricted cash | 23,587 | 24,851 |
Deferred compensation | 6,591 | 6,442 |
Liabilities: | ||
Deferred compensation | 5,377 | 4,991 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 40,075 | 68,359 |
Short-term investments | 15,218 | 26,829 |
Restricted cash | 23,587 | 24,851 |
Deferred compensation | 0 | 0 |
Liabilities: | ||
Deferred compensation | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Restricted cash | 0 | |
Deferred compensation | 6,591 | 6,442 |
Liabilities: | ||
Deferred compensation | 5,377 | 4,991 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Restricted cash | 0 | |
Deferred compensation | 0 | 0 |
Liabilities: | ||
Deferred compensation | $ 0 | $ 0 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ 689 | $ (6,898) | $ (11,134) | $ (10,812) |
Income tax provision (benefit) | 388 | (3,683) | (2,443) | (6,469) |
Net income (loss) | $ 301 | $ (3,215) | $ (8,691) | $ (4,343) |
Effective tax rate | 56.00% | 53.00% | 22.00% | 60.00% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Blended tax rate | 24.50% |
Re-measurement of deferred tax assets | $ 0.7 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Aug. 06, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Subsequent Event [Line Items] | |||||
Quarterly cash dividend (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.78 | $ 0.78 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Quarterly cash dividend (in dollars per share) | $ 0.26 |