Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jan. 03, 2015 | Feb. 17, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SEVCON, INC. | |
Entity Central Index Key | 825411 | |
Current Fiscal Year End Date | -21 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,650,958 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 3-Jan-15 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Jan. 03, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $8,111 | $11,238 |
Trade receivables net of allowances for doubtful accounts of $39 at January 3, 2015 and $40 at September 30, 2014 | 7,009 | 6,694 |
Other receivables | 237 | 183 |
Inventories | 6,289 | 6,258 |
Prepaid expenses and other current assets | 1,741 | 1,747 |
Total current assets | 23,387 | 26,120 |
Property, plant and equipment, at cost: | ||
Land and improvements | 22 | 23 |
Buildings and improvements | 703 | 741 |
Equipment | 10,665 | 10,918 |
Property, plant and equipment, at cost | 11,390 | 11,682 |
Less: accumulated depreciation | -9,259 | -9,577 |
Net property, plant and equipment | 2,131 | 2,105 |
Long-term deferred tax assets | 3,717 | 3,910 |
Goodwill | 1,435 | 1,435 |
Other long-term assets | 400 | 397 |
Total assets | 31,070 | |
Current liabilities: | ||
Current portion of long term debt | 15 | 28 |
Accounts payable | 3,573 | 4,405 |
Accrued expenses | 1,849 | 1,836 |
Accrued and deferred taxes on income | 0 | 7 |
Total current liabilities | 5,437 | 6,276 |
Liability for pension benefits | 8,929 | 9,529 |
Long term debt | 0 | 1,700 |
Total liabilities | 14,366 | 17,505 |
Commitments and Contingencies (Note 14) | ||
Stockholders' equity: | ||
Preferred stock, par value $.10 per share - authorized - 1,000,000 shares; Outstanding - 460,769 shares at January 3, 2015 and September 30, 2014 | 46 | 46 |
Common stock, par value $.10 per share - authorized - 20,000,000 shares at January 3, 2015 and 8,000,000 at September 30, 2014; Outstanding 3,650,958 shares at January 3, 2015 and 3,588,958 shares at September 30, 2014 | 365 | 359 |
Premium paid in on common stock | 6,147 | 6,040 |
Premium paid in on preferred stock | 9,231 | 9,231 |
Retained earnings | 9,735 | 9,495 |
Accumulated other comprehensive loss | -8,923 | -8,829 |
Total Sevcon, Inc. and subsidiaries stockholders' equity | 16,601 | 16,342 |
Noncontrolling interests | 103 | 120 |
Total stockholders' equity | 16,704 | 16,462 |
Total liabilities and stockholders' equity | $31,070 | $33,967 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Jan. 03, 2015 | Sep. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ||
Trade receivables, allowances for doubtful accounts | $39 | $40 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.10 | $0.10 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, outstanding (in shares) | 460,769 | 460,769 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, authorized (in shares) | 20,000,000 | 8,000,000 |
Common stock, outstanding (in shares) | 3,650,958 | 3,588,958 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ||
Net sales | $9,933 | $9,049 |
Cost of sales | -5,924 | -5,217 |
Gross profit | 4,009 | 3,832 |
Selling, general and administrative expenses | -2,493 | -2,192 |
Research and development expenses | -1,234 | -930 |
Operating income | 282 | 710 |
Interest expense | -26 | -16 |
Interest income | 5 | 0 |
Foreign currency gain (loss) | 44 | -85 |
Income before income tax | 305 | 609 |
Income tax provision | -40 | -121 |
Net income | 265 | 488 |
Net loss attributable to non-controlling interests | 17 | 0 |
Net income attributable to Sevcon, Inc. and subsidiaries | 282 | 488 |
Preference share dividends | -111 | 0 |
Net income attributable to common stockholders | $171 | $488 |
Net income per ordinary share - basic (in dollars per share) | $0.05 | $0.14 |
Net income per ordinary share - diluted (in dollars per share) | $0.05 | $0.14 |
Weighted average shares used in computation of earnings per share: | ||
Basic (in shares) | 3,427 | 3,375 |
Diluted (in shares) | 3,513 | 3,411 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Net income attributable to Sevcon, Inc. and subsidiaries | $282 | $488 |
Other comprehensive income | ||
Foreign currency translation adjustment | -144 | 66 |
Defined benefit pension plans: | ||
Actuarial loss net of $14 tax benefit (2013:Actuarial loss net of $13 tax benefit) | 50 | 43 |
Comprehensive income | $188 | $597 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Defined benefit pension plans: | ||
Actuarial loss tax benefit | $14 | $13 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Cash flow from operating activities: | ||
Net income | $265 | $488 |
Adjustments to reconcile net income to net cash (used by) generated from operating activities: | ||
Depreciation | 157 | 168 |
Stock-based compensation | 113 | 59 |
Pension contributions greater than pension expense | -52 | -117 |
Deferred tax provision | 39 | 120 |
Increase (decrease) in cash resulting from changes in operating assets and liabilities: | ||
Trade receivables | -498 | -48 |
Other receivables | -82 | 84 |
Inventories | -242 | -169 |
Prepaid expenses and other current assets | -49 | 1 |
Accounts payable | -680 | -290 |
Accrued expenses | 85 | -167 |
Accrued and deferred taxes on income | -50 | -3 |
Net cash (used by) generated from operating activities | -994 | 126 |
Cash flow used by investing activities: | ||
Acquisition of property, plant and equipment | -293 | -64 |
Net cash used by investing activities | -293 | -64 |
Cash flow used by financing activities: | ||
Repayments of long term debt | -1,713 | -11 |
Dividends paid | -42 | 0 |
Net cash used by financing activities | -1,755 | -11 |
Effect of exchange rate changes on cash | -85 | 46 |
Net (decrease) increase in cash | -3,127 | 97 |
Beginning balance - cash and cash equivalents | 11,238 | 2,062 |
Ending balance - cash and cash equivalents | 8,111 | 2,159 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 50 | 3 |
Cash paid for interest | $26 | $16 |
Basis_of_presentation
Basis of presentation | 3 Months Ended | |
Jan. 03, 2015 | ||
Basis of presentation [Abstract] | ||
Basis of presentation | -1 | Basis of presentation |
Sevcon, Inc. (“Sevcon” or “the Company”) is a Delaware corporation organized on December 22, 1987 to carry on the electronic controls business previously performed by Tech/Ops, Inc. Through wholly-owned subsidiaries located in the United States, the United Kingdom, France, South Korea and Japan, the Company designs and sells, under the Sevcon name, controls for zero emission and hybrid electric vehicles. The controls are used to vary the speed and movement of vehicles, to integrate specialized functions and to prolong the shift life of vehicles’ power source. The Company’s customers are manufacturers of on-road, off-road and industrial vehicles including automobiles, buses, fork lift trucks, aerial lifts, mining vehicles, airport ground support vehicles, utility vehicles, sweepers and other battery powered vehicles. Through another subsidiary located in the United Kingdom, Sevcon, Inc. manufactures special metalized film capacitors that are used as components in the power electronics, signaling and audio equipment markets. | ||
Certain prior period balances in the consolidated statement of income have been reclassified to conform with current period presentation. | ||
Accounting for wholly-owned subsidiaries | ||
The accompanying consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries; Sevcon USA, Inc., Sevcon Ltd., Industrial Capacitors (Wrexham) Ltd., Sevcon SAS, Sevcon Asia Limited and Sevcon Japan KK, in accordance with the provisions required by the Consolidation Topic 810 of the FASB Accounting Standards Codification (“ASC”). All material intercompany transactions have been eliminated. | ||
Accounting for joint-venture subsidiary | ||
For the Company's less than wholly owned subsidiary, Sevcon New Energy Technology (Hubei) Company Limited, the Company first analyzes whether this joint venture subsidiary is a variable interest entity (a “VIE”) in accordance with ASC 810 and if so, whether the Company is the primary beneficiary requiring consolidation. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other financial interests in a VIE that change with changes in the fair value of the VIE’s net assets. The Company continuously re-assesses (i) whether the entity is a VIE, and (ii) if the Company is the primary beneficiary of the VIE. If it is determined that the entity in which the Company holds its interest qualifies as a VIE and the Company is the primary beneficiary, it is consolidated. | ||
Based on the Company's analysis for its 50% owned joint venture, the Company has determined that it is a VIE and that the Company is the primary beneficiary. While the Company owns 50% of the equity interest in this subsidiary, the other 50% is owned by a local unrelated third party, and the joint venture agreement with that third party provides the Company with greater voting rights. Accordingly, the Company consolidates its joint venture under the VIE rules and reflects the third party’s 50% interest in the consolidated financial statements as a non-controlling interest. The Company records this non-controlling interest at its initial fair value, adjusting the basis prospectively for their share of the respective consolidated investments’ net income or loss or equity contributions and distributions. This non-controlling interest is not redeemable by the equity holders and is presented as part of permanent equity. Income and losses are allocated to the non-controlling interest holder based on its economic ownership percentage. | ||
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normally recurring accruals) necessary to present fairly the financial position of Sevcon, Inc. as of January 3, 2015 and the results of operations and cash flows for the three months ended January 3, 2015. These unaudited interim financial statements should be read in conjunction with the 2014 annual consolidated financial statements and related notes included in the 2014 Sevcon, Inc. Annual Report filed on Form 10-K (the “2014 10-K”). Unless otherwise indicated, each reference to a year means the Company’s fiscal year, which ends on September 30. | ||
The results of operations for the three month period ended January 3, 2015 are not necessarily indicative of the results to be expected for the full year. |
Summary_of_significant_account
Summary of significant accounting policies | 3 Months Ended | |
Jan. 03, 2015 | ||
Summary of significant accounting policies [Abstract] | ||
Summary of significant accounting policies | -2 | Summary of significant accounting policies |
There have been no changes since the end of 2014 to the significant accounting policies followed by Sevcon, Inc. |
Stockbased_compensation_plans
Stock-based compensation plans | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Stock-based compensation plans [Abstract] | |||||||||
Stock-based compensation plans | -3 | Stock-based compensation plans | |||||||
Under the Company’s 1996 Equity Incentive Plan (the “Plan”) there were 157,557 shares reserved and available for grant at January 3, 2015. There were 62,000 shares reserved and available for grant at December 28, 2013. There were no options granted or exercised in the quarters ended January 3, 2015 and December 28, 2013. | |||||||||
Recipients of grants must execute a standard form of non-competition agreement. The plan provides for the grant of Restricted Stock, Restricted Stock Units, Options, and Stock Appreciation Rights (“SARs”). SARs may be awarded either separately, or in relation to options granted, and for the grant of bonus shares. Options granted are exercisable at a price not less than fair market value on the date of grant. | |||||||||
There were no options outstanding or exercisable at January 3, 2015 or December 28, 2013 | |||||||||
In December 2014, the Company granted 42,000 shares of restricted stock to eight employees, which will vest in two equal annual installments so long as the employee is then employed by the Company or as determined by the Compensation Committee. The estimated fair value of the stock on the date of grant was $330,000 based on the fair market value of stock on the date of issue. This unvested compensation is being charged to income on a straight line basis over two years. The charge to income for this employee restricted stock grant will be approximately $41,000 on a quarterly basis. | |||||||||
In December 2014, the Company granted 20,000 shares of restricted stock to three employees, which will vest in five equal annual installments so long as the employee is then employed by the Company or as determined by the Compensation Committee. The estimated fair value of the stock on the date of grant was $139,000 based on the fair market value of stock on the date of issue. This unvested compensation is being charged to income on a straight line basis over five years. The charge to income for this employee restricted stock grant will be approximately $7,000 on a quarterly basis. | |||||||||
A summary of restricted stock activity for the three months ended January 3, 2015 is as follows: | |||||||||
Number of shares of Restricted Stock | Weighted Average Grant-Date Fair Value | ||||||||
Non-vested balance as of September 30, 2014 | 168,600 | $ | 5.27 | ||||||
Granted | 62,000 | $ | 7.85 | ||||||
Vested | (36,000 | ) | $ | 5.42 | |||||
Non-vested balance as of January 3, 2015 | 194,600 | $ | 6.07 | ||||||
Stock-based compensation expense was $113,000 and $59,000 for the three month periods ended January 3, 2015 and December 28, 2013, respectively. At January 3, 2015, there was $992,000 of unrecognized compensation expense related to restricted stock granted under the Plan. The Company expects to recognize that cost over a weighted average period of 2.9 years. |
Cash_dividends
Cash dividends | 3 Months Ended | |
Jan. 03, 2015 | ||
Cash dividends [Abstract] | ||
Cash dividends | -4 | Cash dividends |
Common stock dividends | ||
The Board of Directors suspended common stock dividends to conserve cash during the global recession that began in 2009 and will consider whether to resume paying common stock dividends as conditions and the Company’s operating results improve. | ||
Preferred Stock dividends | ||
At January 3, 2015 there were 460,769 shares of Series A Convertible Preferred Stock issued and outstanding. The preferred stock, which has a stated value of $24 per share, pays a 4% cumulative annual dividend semi-annually on October 15 and April 15 each year. The annual dividend payable is $442,338 and the next semi-annual dividend will be paid on April 15, 2015. |
Calculation_of_earnings_per_sh
Calculation of earnings per share and weighted average shares outstanding | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Calculation of earnings per share and weighted average shares outstanding [Abstract] | |||||||||
Calculation of earnings per share and weighted average shares outstanding | -5 | Calculation of earnings per share and weighted average shares outstanding | |||||||
Basic earnings per share is computed by dividing the net income or loss for the period attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the numerator of net income attributable to common stockholders is adjusted by the effect of dilutive securities, including convertible preferred stock using the treasury stock method. The denominator is increased for the assumed exercise of dilutive options and other potentially dilutive securities, including convertible preferred stock, using the treasury stock method, unless the effect is anti-dilutive. | |||||||||
Basic and diluted net income per common share for the three month periods ended January 3, 2015 and December 28, 2013 were calculated as follows: | |||||||||
(in thousands except per share data) | |||||||||
Three Months ended | |||||||||
January 3, | December 28, | ||||||||
2015 | 2013 | ||||||||
Numerator: | |||||||||
Net income attributable to common stockholders for computing net income per ordinary share - basic | $ | 171 | $ | 488 | |||||
Dividend eliminated upon assumed conversion of convertible preference shares | - | - | |||||||
Net income attributable to common stockholders for computing net income per ordinary share - diluted | $ | 171 | $ | 488 | |||||
Denominator: | |||||||||
Weighted average shares used in calculating net income per ordinary share – basic | 3,427 | 3,375 | |||||||
Adjustment for assumed conversion of convertible preference shares | - | - | |||||||
Adjustment for shares issuable upon vesting of restricted stock | 86 | 36 | |||||||
Weighted average shares used in calculating net income per ordinary share - diluted | 3,513 | 3,411 | |||||||
Net income per ordinary share - basic | $ | 0.05 | $ | 0.14 | |||||
Net income per ordinary share - diluted | $ | 0.05 | $ | 0.14 | |||||
No. of shares of convertible preference stock that are anti-dilutive excluded from calculation of common stock equivalents | 1,382 | - |
Segment_information
Segment information | 3 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Segment information [Abstract] | |||||||||||||||||
Segment information | -6 | Segment information | |||||||||||||||
The Company has two reportable segments: electronic controls and capacitors. The electronic controls segment produces control systems for zero emission and hybrid electric vehicles. The capacitors segment produces metalized film capacitors for sale to electronic equipment manufacturers. Each segment has its own management team and sales force and the capacitors segment has its own manufacturing facility. | |||||||||||||||||
The significant accounting policies of the segments are the same as those described above and in Note 1 to the Notes to Consolidated Financial Statements in the 2014 10-K. Inter-segment revenues are accounted for at current market prices. The Company evaluates the performance of each segment principally based on operating income. The Company does not allocate income taxes, interest income and expense or foreign currency translation gains and losses to segments. Information concerning operations of these businesses is as follows: | |||||||||||||||||
(in thousands of dollars) | |||||||||||||||||
Three months ended January 3, 2015 | |||||||||||||||||
Controls | Capacitors | Corporate | Total | ||||||||||||||
Sales to external customers | 9,419 | 514 | - | 9,933 | |||||||||||||
Inter-segment revenues | - | 2 | - | 2 | |||||||||||||
Operating income (loss) | 348 | 36 | (102 | ) | 282 | ||||||||||||
Identifiable assets | 21,376 | 1,142 | 7,117 | 29,635 | |||||||||||||
Three months ended December 28, 2013 | |||||||||||||||||
Controls | Capacitors | Corporate | Total | ||||||||||||||
Sales to external customers | 8,535 | 514 | - | 9,049 | |||||||||||||
Inter-segment revenues | - | - | - | - | |||||||||||||
Operating income | 649 | 40 | 21 | 710 | |||||||||||||
Identifiable assets | 20,363 | 1,385 | 334 | 22,082 | |||||||||||||
In the electronic controls segment, revenues derive from the following products and services: | |||||||||||||||||
(in thousands of dollars) | |||||||||||||||||
Three Months ended | |||||||||||||||||
January 3, | December 28, | ||||||||||||||||
2015 | 2013 | ||||||||||||||||
Electronic controls for zero emission and hybrid electric vehicles | $ | 6,064 | $ | 6,584 | |||||||||||||
Accessory and aftermarket products and services and engineering contracts | 3,355 | 1,951 | |||||||||||||||
Total electronic controls segment revenues | $ | 9,419 | $ | 8,535 |
Research_and_development
Research and development | 3 Months Ended | |
Jan. 03, 2015 | ||
Research and development [Abstract] | ||
Research and development | -7 | Research and development |
The cost of research and development programs is charged against income in each period. | ||
In recent years the Company has received several awards of research and development grants by the Technology Strategy Board, a public body established by the U.K. government to stimulate technology-enabled innovation. | ||
In 2011, the Company was awarded a research and development grant by the Technology Strategy Board to lead a collaborative project with Cummins Generator Technologies and Newcastle University in the U.K. to develop an innovative electric drive system for electric vehicles using advanced switched reluctance motor technology. The Company recorded grant income from this Technology Strategy Board project of $8,000 in the first quarter of 2015 associated with research and development expense of $23,000. The Company recorded grant income of $17,000 associated with research and development expense of $50,000 in respect of this Technology Strategy Board grant in the first quarter of 2014. | ||
In July 2013, the Company was awarded a grant of approximately $480,000 by the Low Emission Transport Collaborative Projects Fund, a U.K. government body. The grant is to develop next-generation controls for high-voltage, low-power applications. This grant will defray part of the research and development expense associated with this project over the period to March 2015. The Company recorded grant income from this project in the first quarter of 2015 of $16,000 associated with research and development expense of $66,000. The Company recorded grant income from this project in the first quarter of 2014 of $97,000 associated with research and development expense of $422,000. | ||
The grant income in the first quarter of 2015 and 2014 was recorded as a reduction of research and development expense. |
Employee_benefit_plans
Employee benefit plans | 3 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Employee benefit plans [Abstract] | |||||||||||||
Employee benefit plans | -8 | Employee benefit plans | |||||||||||
Sevcon has defined contribution plans covering the majority of its U.S. and U.K. employees in the controls business. There is also a small defined contribution plan covering senior managers in the capacitor business. The Company has frozen the U.K. and U.S. defined benefit plans for which no future benefits are being earned by employees. The Company uses a September 30 measurement date for its defined benefit pension plans. | |||||||||||||
The Company’s French subsidiary, Sevcon S.A.S., has a liability to pay its employees a service and salary based award when they reach retirement age and leave the Company’s employment. This liability, which is unfunded, is recognized in accrued expenses and was $165,000 and $160,000 at January 3, 2015 and December 28, 2013, respectively. The obligation to pay this award is a French legal requirement and is only payable if the employee is employed by the Company when they retire; if they leave the Company prior to that time the award is no longer payable. | |||||||||||||
The following table sets forth the components of the net pension cost for the three month periods ended January 3, 2015 and December 28, 2013, respectively: | |||||||||||||
(in thousands of dollars) | |||||||||||||
Three Months ended | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Interest cost | $ | 316 | $ | 318 | |||||||||
Expected return on plan assets | (313 | ) | (320 | ) | |||||||||
Amortization of net loss | 64 | 56 | |||||||||||
Net periodic benefit cost | 67 | 54 | |||||||||||
Net cost of defined contribution plans | $ | 147 | $ | 115 | |||||||||
The following table sets forth the movement in the liability for pension benefits in the three month periods ended January 3, 2015 and December 28, 2013: | |||||||||||||
(in thousands of dollars) | |||||||||||||
Three Months ended | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Liability for pension benefits at beginning of period | $ | 9,529 | $ | 8,354 | |||||||||
Net periodic benefit cost | 67 | 54 | |||||||||||
Plan contributions | (119 | ) | (171 | ) | |||||||||
Amortization of actuarial loss | (64 | ) | (56 | ) | |||||||||
Effect of exchange rate changes | (484 | ) | 85 | ||||||||||
Balance at end of period | $ | 8,929 | $ | 8,266 | |||||||||
Amounts recognized in the balance sheet consist of: | |||||||||||||
(in thousands of dollars) | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Non-current liabilities | $ | 8,929 | $ | 8,266 | |||||||||
Amounts recognized in accumulated other comprehensive loss consist of: | |||||||||||||
(in thousands of dollars) | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Actuarial loss, net of $14,000 tax benefit (2013: net of $13,000 tax benefit) | $ | 50 | $ | 43 | |||||||||
Sevcon, Inc. did not contribute to its U.S. defined benefit plan in the three months ended January 3, 2015; it presently anticipates contributing $200,000 to fund its U.S. plan in the remainder of fiscal 2015. In addition, employer contributions to the U.K. defined benefit plan were $119,000 in the first three months and are estimated to total $464,000 in 2015. | |||||||||||||
The table below presents information about the Company’s pension plan assets measured and recorded at fair value as of January 3, 2015 and indicates the fair value hierarchy of the inputs utilized by the Company to determine the fair values. | |||||||||||||
(in thousands of dollars) | |||||||||||||
Level 1* | Level 2** | Level 3*** | |||||||||||
(Quoted prices in active | (Significant observable inputs) | (Unobservable inputs) | |||||||||||
markets) | |||||||||||||
Mutual Funds | |||||||||||||
Standard Life Pension Global Absolute Returns Strategies Fund | 6,886 | - | - | ||||||||||
Standard Life UK Indexed Linked Fund | 1,924 | - | - | ||||||||||
Standard Life Long Corporate Bond Fund | 1,782 | - | - | ||||||||||
CF Ruffer Absolute Return Fund | 7,061 | - | - | ||||||||||
U.S. Mutual Funds | 2,449 | - | - | ||||||||||
U.S. Exchange Traded Funds | 364 | - | - | ||||||||||
Other Types of Investments | |||||||||||||
Cash | 310 | - | - | ||||||||||
Total | 20,776 | - | - | ||||||||||
* | Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments will primarily hold stocks or bonds, or a combination of stocks and bonds. | ||||||||||||
** | The Company currently does not have any Level 2 pension plan financial assets. | ||||||||||||
*** | The Company currently does not have any Level 3 pension plan financial assets. | ||||||||||||
The following estimated benefit payments, which reflect future service, as appropriate, have been or are expected to be paid: | |||||||||||||
(in thousands | |||||||||||||
of dollars) | |||||||||||||
2015 | $ | 668 | |||||||||||
2016 | 707 | ||||||||||||
2017 | 697 | ||||||||||||
2018 | 695 | ||||||||||||
2019 | 671 | ||||||||||||
2020 – 2024 | 3,658 |
Inventories
Inventories | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | -9 | Inventories | |||||||
Inventories, net of reserve, were comprised of: | |||||||||
(in thousands of dollars) | |||||||||
January 3, | September 30, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 1,869 | $ | 2,095 | |||||
Work-in-process | 103 | 102 | |||||||
Finished goods | 4,317 | 4,061 | |||||||
$ | 6,289 | $ | 6,258 |
Fair_value_of_financial_instru
Fair value of financial instruments | 3 Months Ended | |
Jan. 03, 2015 | ||
Fair value of financial instruments [Abstract] | ||
Fair value of financial instruments | -10 | Fair value of financial instruments |
The Company's financial instruments consist mainly of cash and cash equivalents, short-term investments, accounts receivable and accounts payable. The carrying amount of these financial instruments as of January 3, 2015 approximates fair value due to the short-term nature of these instruments. The fair value of the Company’s long term debt at January 3, 2015 approximated $15,000 (the carrying value on the consolidated balance sheet at January 3, 2015) based on recent financial market pricing. The long term debt represented a level 2 liability in accordance with the fair value hierarchy described in Note 8. |
Accrued_expenses
Accrued expenses | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Accrued expenses [Abstract] | |||||||||
Accrued expenses | -11 | Accrued expenses | |||||||
Set out below is an analysis of other accrued expenses at January 3, 2015 and September 30, 2014, which shows separately any items in excess of 5% of total current liabilities: | |||||||||
(in thousands of dollars) | |||||||||
January 3, | September 30, | ||||||||
2015 | 2014 | ||||||||
Accrued compensation and related costs | $ | 1,013 | $ | 1,062 | |||||
Other accrued expenses | 836 | 774 | |||||||
$ | 1,849 | $ | 1,836 |
Warranty_reserves
Warranty reserves | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Warranty reserves [Abstract] | |||||||||
Warranty reserves | -12 | Warranty reserves | |||||||
The movement in warranty reserves was as follows: | |||||||||
(in thousands of dollars) | |||||||||
Three Months ended | |||||||||
January 3, | December 28, | ||||||||
2015 | 2013 | ||||||||
Warranty reserves at beginning of period | $ | 153 | $ | 138 | |||||
Decrease in beginning balance for warranty obligations settled during the period | - | (43 | ) | ||||||
Foreign currency translation adjustment | (5 | ) | 1 | ||||||
Net increase in warranty reserves for products sold during the period | $ | 3 | $ | 43 | |||||
Warranty reserves at end of period | $ | 151 | $ | 139 |
Debt
Debt | 3 Months Ended | ||||
Jan. 03, 2015 | |||||
Debt [Abstract] | |||||
Debt | -13 | Debt | |||
At January 3, 2015 the Company had $15,000 outstanding under a U.K. bank loan entered into in April 2010, with a fixed interest rate of 6.8%. The loan, which was entered into by the U.K. metalized film capacitor subsidiary to purchase an item of capital equipment, is denominated in British Pounds. The loan agreement provides for equal monthly installments comprising interest and principal for a five year period commencing in May 2010. The amount outstanding at January 3, 2015, $15,000, is shown in the current liabilities section of the accompanying consolidated balance sheet under current debt, representing the principal element of the loan installments in the year ending September 30, 2015. The fair market value of the debt at January 3, 2015 was $15,000. | |||||
The Company’s wholly owned subsidiary, Sevcon USA, Inc., has a $3,500,000 secured revolving credit facility with Citizens Bank, for working capital and general corporate purposes. The loan and security agreement will expire on June 14, 2017 when any outstanding principal and unpaid interest at that time will be due and payable in full. The facility may be paid before maturity in whole or in part at the option of Sevcon USA, Inc., without penalty or premium. Under the facility, Sevcon USA, Inc. must maintain, on a quarterly basis, a debt to tangible net worth ratio of no more than 2.40:1 and a debt service coverage ratio of no less than 1.25:1 for each rolling twelve-month period. Interest on the loan is payable monthly, and is calculated at a margin of 3.125% over LIBOR. The total amount outstanding under this credit facility at January 3, 2105 was $0 and at September 30, 2014 was $1,700,000. | |||||
In July 2014, the Company’s U.K. bank renewed the overdraft facilities of the Company’s U.K. controls and capacitor subsidiaries. The Company’s U.K. controls and capacitor subsidiaries each have multi-currency overdraft facilities which together total $1,380,000 and which are secured by real estate owned by those companies. The renewal of the facilities is for a twelve month period although they can be withdrawn on demand by the bank. The facilities were unused at January 3, 2015 and at September 30, 2014. | |||||
Annual principal payments on long term debt at January 3, 2015 are as follows: | |||||
(in thousands of dollars) | |||||
2015 | $ | 15 | |||
Total | $ | 15 |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Jan. 03, 2015 | ||
Commitments and Contingencies [Abstract] | ||
Commitments and Contingencies | -14 | Commitments and Contingencies |
Sevcon, Inc. is involved in various legal proceedings in the ordinary course of business but believes that it is remote that the outcome will be material to operations. | ||
The Company maintains a directors' retirement plan which provides for certain retirement benefits to non-employee directors. Effective January 1997 the plan was frozen and no further benefits are being accrued. While the cost of the plan has been fully charged to expense, the plan is not separately funded. The estimated maximum liability which has been recorded based on the cost of buying deferred annuities at January 3, 2015 and September 30, 2014 was $161,000 and $162,000, respectively. | ||
Minimum rental commitments under all non-cancelable leases are as follows for the years ended September 30, 2015 - $213,000; 2016 - $205,000; 2017 - $205,000; 2018 - $208,000; 2019 - $194,000 and $3,405,000 thereafter. | ||
The U.K. subsidiaries of the Company have given to a bank a security interest in certain leasehold and freehold property assets as security for overdraft facilities of $1,380,000. There were no amounts outstanding on the overdraft facilities at January 3, 2015 and at September 30, 2014. The obligations under a secured revolving credit facility entered into in 2011 by the U.S. subsidiary of the Company, are guaranteed by the Company and are secured by all of the assets and a pledge of all of the capital stock, of Sevcon USA, Inc. The total amount outstanding under this revolving credit facility was $0 at January 3, 2015 and $1,700,000 at September 30, 2014. |
Subsequent_events
Subsequent events | 3 Months Ended | |
Jan. 03, 2015 | ||
Subsequent events [Abstract] | ||
Subsequent events | -15 | Subsequent events |
In preparing these interim consolidated financial statements, the Company has evaluated, for potential recognition or disclosure, events or transactions subsequent to the end of the most recent quarterly period, the issuance date of these financial statements. | ||
No material subsequent events were identified that require recognition or disclosure in these financial statements. |
Stockbased_compensation_plans_
Stock-based compensation plans (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Stock-based compensation plans [Abstract] | |||||||||
Summary of restricted stock activity | A summary of restricted stock activity for the three months ended January 3, 2015 is as follows: | ||||||||
Number of shares of Restricted Stock | Weighted Average Grant-Date Fair Value | ||||||||
Non-vested balance as of September 30, 2014 | 168,600 | $ | 5.27 | ||||||
Granted | 62,000 | $ | 7.85 | ||||||
Vested | (36,000 | ) | $ | 5.42 | |||||
Non-vested balance as of January 3, 2015 | 194,600 | $ | 6.07 |
Calculation_of_earnings_per_sh1
Calculation of earnings per share and weighted average shares outstanding (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Calculation of earnings per share and weighted average shares outstanding [Abstract] | |||||||||
Basic and fully diluted earnings per share | Basic and diluted net income per common share for the three month periods ended January 3, 2015 and December 28, 2013 were calculated as follows: | ||||||||
(in thousands except per share data) | |||||||||
Three Months ended | |||||||||
January 3, | December 28, | ||||||||
2015 | 2013 | ||||||||
Numerator: | |||||||||
Net income attributable to common stockholders for computing net income per ordinary share - basic | $ | 171 | $ | 488 | |||||
Dividend eliminated upon assumed conversion of convertible preference shares | - | - | |||||||
Net income attributable to common stockholders for computing net income per ordinary share - diluted | $ | 171 | $ | 488 | |||||
Denominator: | |||||||||
Weighted average shares used in calculating net income per ordinary share – basic | 3,427 | 3,375 | |||||||
Adjustment for assumed conversion of convertible preference shares | - | - | |||||||
Adjustment for shares issuable upon vesting of restricted stock | 86 | 36 | |||||||
Weighted average shares used in calculating net income per ordinary share - diluted | 3,513 | 3,411 | |||||||
Net income per ordinary share - basic | $ | 0.05 | $ | 0.14 | |||||
Net income per ordinary share - diluted | $ | 0.05 | $ | 0.14 | |||||
No. of shares of convertible preference stock that are anti-dilutive excluded from calculation of common stock equivalents | 1,382 | - |
Segment_information_Tables
Segment information (Tables) | 3 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Segment information [Abstract] | |||||||||||||||||
Information concerning operations of business segments | Information concerning operations of these businesses is as follows: | ||||||||||||||||
(in thousands of dollars) | |||||||||||||||||
Three months ended January 3, 2015 | |||||||||||||||||
Controls | Capacitors | Corporate | Total | ||||||||||||||
Sales to external customers | 9,419 | 514 | - | 9,933 | |||||||||||||
Inter-segment revenues | - | 2 | - | 2 | |||||||||||||
Operating income (loss) | 348 | 36 | (102 | ) | 282 | ||||||||||||
Identifiable assets | 21,376 | 1,142 | 7,117 | 29,635 | |||||||||||||
Three months ended December 28, 2013 | |||||||||||||||||
Controls | Capacitors | Corporate | Total | ||||||||||||||
Sales to external customers | 8,535 | 514 | - | 9,049 | |||||||||||||
Inter-segment revenues | - | - | - | - | |||||||||||||
Operating income | 649 | 40 | 21 | 710 | |||||||||||||
Identifiable assets | 20,363 | 1,385 | 334 | 22,082 | |||||||||||||
Revenues of electronic controls segment by products and services | In the electronic controls segment, revenues derive from the following products and services: | ||||||||||||||||
(in thousands of dollars) | |||||||||||||||||
Three Months ended | |||||||||||||||||
January 3, | December 28, | ||||||||||||||||
2015 | 2013 | ||||||||||||||||
Electronic controls for zero emission and hybrid electric vehicles | $ | 6,064 | $ | 6,584 | |||||||||||||
Accessory and aftermarket products and services and engineering contracts | 3,355 | 1,951 | |||||||||||||||
Total electronic controls segment revenues | $ | 9,419 | $ | 8,535 |
Employee_benefit_plans_Tables
Employee benefit plans (Tables) | 3 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
Employee benefit plans [Abstract] | |||||||||||||
Components of the net pension cost | The following table sets forth the components of the net pension cost for the three month periods ended January 3, 2015 and December 28, 2013, respectively: | ||||||||||||
(in thousands of dollars) | |||||||||||||
Three Months ended | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Interest cost | $ | 316 | $ | 318 | |||||||||
Expected return on plan assets | (313 | ) | (320 | ) | |||||||||
Amortization of net loss | 64 | 56 | |||||||||||
Net periodic benefit cost | 67 | 54 | |||||||||||
Net cost of defined contribution plans | $ | 147 | $ | 115 | |||||||||
Movement in liability for pension benefits | The following table sets forth the movement in the liability for pension benefits in the three month periods ended January 3, 2015 and December 28, 2013: | ||||||||||||
(in thousands of dollars) | |||||||||||||
Three Months ended | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Liability for pension benefits at beginning of period | $ | 9,529 | $ | 8,354 | |||||||||
Net periodic benefit cost | 67 | 54 | |||||||||||
Plan contributions | (119 | ) | (171 | ) | |||||||||
Amortization of actuarial loss | (64 | ) | (56 | ) | |||||||||
Effect of exchange rate changes | (484 | ) | 85 | ||||||||||
Balance at end of period | $ | 8,929 | $ | 8,266 | |||||||||
Amounts recognized in balance sheet | Amounts recognized in the balance sheet consist of: | ||||||||||||
(in thousands of dollars) | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Non-current liabilities | $ | 8,929 | $ | 8,266 | |||||||||
Amounts recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive loss consist of: | ||||||||||||
(in thousands of dollars) | |||||||||||||
January 3, | December 28, | ||||||||||||
2015 | 2013 | ||||||||||||
Actuarial loss, net of $14,000 tax benefit (2013: net of $13,000 tax benefit) | $ | 50 | $ | 43 | |||||||||
Pension plan assets measured and recorded at fair value | The table below presents information about the Company’s pension plan assets measured and recorded at fair value as of January 3, 2015 and indicates the fair value hierarchy of the inputs utilized by the Company to determine the fair values. | ||||||||||||
(in thousands of dollars) | |||||||||||||
Level 1* | Level 2** | Level 3*** | |||||||||||
(Quoted prices in active | (Significant observable inputs) | (Unobservable inputs) | |||||||||||
markets) | |||||||||||||
Mutual Funds | |||||||||||||
Standard Life Pension Global Absolute Returns Strategies Fund | 6,886 | - | - | ||||||||||
Standard Life UK Indexed Linked Fund | 1,924 | - | - | ||||||||||
Standard Life Long Corporate Bond Fund | 1,782 | - | - | ||||||||||
CF Ruffer Absolute Return Fund | 7,061 | - | - | ||||||||||
U.S. Mutual Funds | 2,449 | - | - | ||||||||||
U.S. Exchange Traded Funds | 364 | - | - | ||||||||||
Other Types of Investments | |||||||||||||
Cash | 310 | - | - | ||||||||||
Total | 20,776 | - | - | ||||||||||
* | Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments will primarily hold stocks or bonds, or a combination of stocks and bonds. | ||||||||||||
** | The Company currently does not have any Level 2 pension plan financial assets. | ||||||||||||
*** | The Company currently does not have any Level 3 pension plan financial assets. | ||||||||||||
Estimated future benefit payments | The following estimated benefit payments, which reflect future service, as appropriate, have been or are expected to be paid: | ||||||||||||
(in thousands | |||||||||||||
of dollars) | |||||||||||||
2015 | $ | 668 | |||||||||||
2016 | 707 | ||||||||||||
2017 | 697 | ||||||||||||
2018 | 695 | ||||||||||||
2019 | 671 | ||||||||||||
2020 – 2024 | 3,658 | ||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Inventories, net of reserve, were comprised of: | ||||||||
(in thousands of dollars) | |||||||||
January 3, | September 30, | ||||||||
2015 | 2014 | ||||||||
Raw materials | $ | 1,869 | $ | 2,095 | |||||
Work-in-process | 103 | 102 | |||||||
Finished goods | 4,317 | 4,061 | |||||||
$ | 6,289 | $ | 6,258 |
Accrued_expenses_Tables
Accrued expenses (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Accrued expenses [Abstract] | |||||||||
Analysis of other accrued expenses | Set out below is an analysis of other accrued expenses at January 3, 2015 and September 30, 2014, which shows separately any items in excess of 5% of total current liabilities: | ||||||||
(in thousands of dollars) | |||||||||
January 3, | September 30, | ||||||||
2015 | 2014 | ||||||||
Accrued compensation and related costs | $ | 1,013 | $ | 1,062 | |||||
Other accrued expenses | 836 | 774 | |||||||
$ | 1,849 | $ | 1,836 |
Warranty_reserves_Tables
Warranty reserves (Tables) | 3 Months Ended | ||||||||
Jan. 03, 2015 | |||||||||
Warranty reserves [Abstract] | |||||||||
Movement in warranty reserves | The movement in warranty reserves was as follows: | ||||||||
(in thousands of dollars) | |||||||||
Three Months ended | |||||||||
January 3, | December 28, | ||||||||
2015 | 2013 | ||||||||
Warranty reserves at beginning of period | $ | 153 | $ | 138 | |||||
Decrease in beginning balance for warranty obligations settled during the period | - | (43 | ) | ||||||
Foreign currency translation adjustment | (5 | ) | 1 | ||||||
Net increase in warranty reserves for products sold during the period | $ | 3 | $ | 43 | |||||
Warranty reserves at end of period | $ | 151 | $ | 139 |
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||
Jan. 03, 2015 | |||||
Debt [Abstract] | |||||
Annual principal payments on long term debt | Annual principal payments on long term debt at January 3, 2015 are as follows: | ||||
(in thousands of dollars) | |||||
2015 | $ | 15 | |||
Total | $ | 15 |
Basis_of_presentation_Details
Basis of presentation (Details) | 3 Months Ended |
Jan. 03, 2015 | |
Basis of presentation [Abstract] | |
Equity interest ownership (in hundredths) | 50.00% |
Joint venture ownership (in hundredths) | 50.00% |
Third party's equity interest ownership (in hundredths) | 50.00% |
Stockbased_compensation_plans_1
Stock-based compensation plans (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 31, 2014 |
Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding (in shares) | 0 | 0 | |
Options exercisable (in shares) | 0 | 0 | |
Weighted Average Grant-Date Fair Value [Roll Forward] | |||
Stock based compensation expense | $113 | $59 | |
Unrecognized compensation expense | 992 | ||
Weighted average period for unrecognized compensation expense to be recognized | 2 years 10 months 24 days | ||
Restricted Stock [Member] | |||
Number of shares of Restricted Stock [Roll Forward] | |||
Non-vested balance, beginning of period (in shares) | 168,600 | ||
Granted (in shares) | 62,000 | ||
Vested (in shares) | -36,000 | ||
Non-vested balance, end of period (in shares) | 194,600 | ||
Weighted Average Grant-Date Fair Value [Roll Forward] | |||
Non-vested balance, beginning of period (in dollars per share) | $5.27 | ||
Granted (in dollars per share) | $7.85 | ||
Vested (in dollars per share) | $5.42 | ||
Non-vested balance, ending of period (in dollars per share) | $6.07 | ||
Restricted Stock [Member] | Eight Employees [Member] | |||
Number of shares of Restricted Stock [Roll Forward] | |||
Granted (in shares) | 42,000 | ||
Weighted Average Grant-Date Fair Value [Roll Forward] | |||
Number of employees directors with restricted stock grant | 8 | ||
Estimated fair value of stock at date of grant | 330 | ||
Period for recognition of unearned compensation | 2 years | ||
Quarterly charge to income for restricted stock | 41 | ||
Restricted Stock [Member] | Three Employees [Member] | |||
Number of shares of Restricted Stock [Roll Forward] | |||
Granted (in shares) | 20,000 | ||
Weighted Average Grant-Date Fair Value [Roll Forward] | |||
Number of employees directors with restricted stock grant | 3 | ||
Estimated fair value of stock at date of grant | 139 | ||
Period for recognition of unearned compensation | 5 years | ||
Quarterly charge to income for restricted stock | $7 | ||
1996 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved and available for grant (in shares) | 157,557 | 62,000 | |
Options grants (in shares) | 0 | 0 | |
Options exercised (in shares) | 0 | 0 |
Cash_dividends_Details
Cash dividends (Details) (USD $) | 3 Months Ended | |
Jan. 03, 2015 | Sep. 30, 2014 | |
Preference share dividends [Abstract] | ||
Series A Convertible Preferred Stock, stated value (in dollars per share) | $0.10 | $0.10 |
Series A Convertible Preferred Stock [Member] | ||
Preference share dividends [Abstract] | ||
Maximum shares to be issued (in shares) | 460,769 | |
Series A Convertible Preferred Stock, stated value (in dollars per share) | $24 | |
Percentage of cumulative annual dividend, Series A Convertible Preferred Stock (in hundredths) | 4.00% | |
Maximum annual dividend | $442,338 | |
Dividend payable | 15-Apr-15 |
Calculation_of_earnings_per_sh2
Calculation of earnings per share and weighted average shares outstanding (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Numerator: | ||
Net income attributable to common stockholders for computing net income per ordinary share - basic | $171 | $488 |
Dividend eliminated upon assumed conversion of convertible preference shares | 111 | 0 |
Net income attributable to common stockholders for computing net income per ordinary share - diluted | $171 | $488 |
Denominator : | ||
Weighted average shares used in calculating net income per ordinary share - basic (in shares) | 3,427,000 | 3,375,000 |
Adjustment for assumed conversion of convertible preference shares (in shares) | 0 | 0 |
Adjustment for shares issuable upon vesting of restricted stock (in shares) | 86,000 | 36,000 |
Weighted average shares used in calculating net income per ordinary share - diluted (in shares) | 3,513,000 | 3,411,000 |
Net income per ordinary share - basic (in dollars per share) | $0.05 | $0.14 |
Net income per ordinary share - diluted (in dollars per share) | $0.05 | $0.14 |
Number of shares of convertible preference stock that are anti-dilutive excluded from calculation of common stock equivalents (in shares) | 1,382 | 0 |
Segment_information_Details
Segment information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Segment | ||
Segment information [Abstract] | ||
Number of reportable segments | 2 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Sales to external customers | $9,933 | $9,049 |
Operating income (loss) | 282 | 710 |
Identifiable assets | 29,635 | 22,082 |
Reportable Segments [Member] | Controls [Member] | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Sales to external customers | 9,419 | 8,535 |
Operating income (loss) | 348 | 649 |
Identifiable assets | 21,376 | 20,363 |
Reportable Segments [Member] | Capacitors [Member] | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Sales to external customers | 514 | 514 |
Operating income (loss) | 36 | 40 |
Identifiable assets | 1,142 | 1,385 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Sales to external customers | 2 | 0 |
Intersegment Eliminations [Member] | Controls [Member] | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Sales to external customers | 0 | 0 |
Intersegment Eliminations [Member] | Capacitors [Member] | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Sales to external customers | 2 | 0 |
Corporate [Member] | ||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||
Sales to external customers | 0 | 0 |
Operating income (loss) | -102 | 21 |
Identifiable assets | $7,117 | $334 |
Segment_information_Revenues_f
Segment information, Revenues from Electronic Controls Segment (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Revenue from External Customer [Line Items] | ||
Revenue from external customer | $9,933 | $9,049 |
Reportable Segments [Member] | Controls [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customer | 9,419 | 8,535 |
Reportable Segments [Member] | Controls [Member] | Electronic controls for zero emission and hybrid electric vehicles [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customer | 6,064 | 6,584 |
Reportable Segments [Member] | Controls [Member] | Accessory and aftermarket products and services and engineering contracts [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from external customer | $3,355 | $1,951 |
Research_and_development_Detai
Research and development (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Jul. 31, 2013 | Jan. 03, 2015 | Dec. 28, 2013 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research and development expense, net of grants receivable | $1,234 | $930 | |
Percentage of sales (in hundredths) | 12.40% | 10.30% | |
Cummins Generator Technologies and Newcastle University [Member] | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Grant income recorded | 8 | 17 | |
Research and development expense on projects | 23 | 50 | |
Low Emission Transport Collaborative Projects Fund [Member] | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Grant income recorded | 16 | 97 | |
Research and development expense on projects | 66 | 422 | |
Total grants awarded | $480 |
Employee_benefit_plans_Details
Employee benefit plans (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Unfunded liability recognized in accrued expenses | $165 | $160 | ||
Components of net pension cost [Abstract] | ||||
Interest cost | 316 | 318 | ||
Expected return on plan assets | -313 | -320 | ||
Amortization of net loss | 64 | 56 | ||
Net periodic benefit cost | 67 | 54 | ||
Net cost of defined contribution plans | 147 | 115 | ||
Movement in liability for pension benefits [Roll forward] | ||||
Liability for pension benefits at beginning of period | 9,529 | 8,354 | ||
Net periodic benefit cost | 67 | 54 | ||
Plan contributions | -119 | -171 | ||
Amortization of net loss | -64 | -56 | ||
Effect of exchange rate changes | -484 | 85 | ||
Balance at end of period | 8,929 | 8,266 | ||
Amounts recognized in balance sheet [Abstract] | ||||
Non-current liabilities | 8,929 | 8,266 | 9,529 | |
Amounts recognized in accumulated other comprehensive loss [Abstract] | ||||
Actuarial loss, net of $14,000 tax benefit (2013: net of $13,000 tax benefit) | 50 | 43 | ||
Actuarial loss | 14 | 13 | ||
Estimated future benefit payments [Abstract] | ||||
2015 | 668 | |||
2016 | 707 | |||
2017 | 697 | |||
2018 | 695 | |||
2019 | 671 | |||
2020 - 2024 | 3,658 | |||
Level 1 (Quoted prices in active markets) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 20,776 | [1] | ||
Level 2 (Significant observable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [2] | ||
Level 3 (Unobservable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [3] | ||
Standard Life Pension Global Absolute Returns Strategies Fund [Member] | Level 1 (Quoted prices in active markets) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 6,886 | [1] | ||
Standard Life Pension Global Absolute Returns Strategies Fund [Member] | Level 2 (Significant observable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [2] | ||
Standard Life Pension Global Absolute Returns Strategies Fund [Member] | Level 3 (Unobservable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [3] | ||
Standard Life U.K. Indexed Linked Fund [Member] | Level 1 (Quoted prices in active markets) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 1,924 | [1] | ||
Standard Life U.K. Indexed Linked Fund [Member] | Level 2 (Significant observable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [2] | ||
Standard Life U.K. Indexed Linked Fund [Member] | Level 3 (Unobservable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [3] | ||
Standard Life Long Corporate Bond Fund [Member] | Level 1 (Quoted prices in active markets) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 1,782 | [1] | ||
Standard Life Long Corporate Bond Fund [Member] | Level 2 (Significant observable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [2] | ||
Standard Life Long Corporate Bond Fund [Member] | Level 3 (Unobservable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [3] | ||
CF Ruffer Absolute Return Fund [Member] | Level 1 (Quoted prices in active markets) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 7,061 | [1] | ||
CF Ruffer Absolute Return Fund [Member] | Level 2 (Significant observable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [2] | ||
CF Ruffer Absolute Return Fund [Member] | Level 3 (Unobservable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [3] | ||
U.S. Mutual Funds [Member] | Level 1 (Quoted prices in active markets) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 2,449 | [1] | ||
U.S. Mutual Funds [Member] | Level 2 (Significant observable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [2] | ||
U.S. Mutual Funds [Member] | Level 3 (Unobservable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [3] | ||
U.S. Exchange Traded Funds [Member] | Level 1 (Quoted prices in active markets) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 364 | [1] | ||
U.S. Exchange Traded Funds [Member] | Level 2 (Significant observable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [2] | ||
U.S. Exchange Traded Funds [Member] | Level 3 (Unobservable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [3] | ||
Cash [Member] | Level 1 (Quoted prices in active markets) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 310 | [1] | ||
Cash [Member] | Level 2 (Significant observable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [2] | ||
Cash [Member] | Level 3 (Unobservable inputs) [Member] | ||||
Fair Value of Plan Assets [Abstract] | ||||
Fair value of plan assets | 0 | [3] | ||
U.S. Defined Benefit Plan [Member] | ||||
Estimated future employer contributions [Abstract] | ||||
Employer contributions | 0 | |||
Estimated future employer contributions in current fiscal year | 200 | |||
U.K. Defined Benefit Plan [Member] | ||||
Estimated future employer contributions [Abstract] | ||||
Employer contributions | 119 | |||
Estimated future employer contributions in current fiscal year | $464 | |||
[1] | Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments will primarily hold stocks or bonds, or a combination of stocks and bonds. | |||
[2] | The Company currently does not have any Level 2 pension plan financial assets. | |||
[3] | The Company currently does not have any Level 3 pension plan financial assets. |
Inventories_Details
Inventories (Details) (USD $) | Jan. 03, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials | $1,869 | $2,095 |
Work-in-process | 103 | 102 |
Finished goods | 4,317 | 4,061 |
Inventories | $6,289 | $6,258 |
Fair_value_of_financial_instru1
Fair value of financial instruments (Details) (Level 2 [Member], USD $) | Jan. 03, 2015 |
In Thousands, unless otherwise specified | |
Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of long term debt | $15 |
Accrued_expenses_Details
Accrued expenses (Details) (USD $) | Jan. 03, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Accrued expenses [Abstract] | ||
Accrued compensation and related costs | $1,013 | $1,062 |
Other accrued expenses | 836 | 774 |
Accrued expenses | $1,849 | $1,836 |
Percentage of total current liabilities used to analyze accrued expenses (in hundredths) | 5.00% | 5.00% |
Warranty_reserves_Details
Warranty reserves (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 |
Movement in warranty reserves [Roll Forward] | ||
Warranty reserves at beginning of period | $153 | $138 |
Decrease in beginning balance for warranty obligations settled during the period | 0 | -43 |
Foreign currency translation adjustment | -5 | 1 |
Net increase in warranty reserves for products sold during the period | 3 | 43 |
Warranty reserves at end of period | $151 | $139 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 30, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $15 | |
Current portion of long term debt | 15 | 28 |
Line of Credit Facility [Line Items] | ||
Debt covenant description | Under the facility, Sevcon USA, Inc. must maintain, on a quarterly basis, a debt to tangible net worth ratio of no more than 2.40:1 and a debt service coverage ratio of no less than 1.25:1 for each rolling twelve-month period. | |
Total overdraft facility | 1,380 | |
Annual principal payments on long term debt [Abstract] | ||
2015 | 15 | |
Total maturities | 15 | |
Secured Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, amount outstanding | 0 | 1,700 |
Citizens Bank [Member] | Secured Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 3,500 | |
Margin interest rate (in hundredths) | 3.13% | |
Line of credit facility, expiration date | 14-Jun-17 | |
U.K. bank loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 15 | |
Debt instrument, fixed interest rate (in hundredths) | 6.80% | |
Debt instrument, term | 5 years | |
Current portion of long term debt | 15 | |
Fair market value of the debt | 15 | |
Annual principal payments on long term debt [Abstract] | ||
Total maturities | $15 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Jan. 03, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies [Abstract] | ||
Maximum recorded liability of deferred annuities | $161 | $162 |
Minimum rental commitments under non-cancelable leases [Abstract] | ||
2015 | 213 | |
2016 | 205 | |
2017 | 205 | |
2018 | 208 | |
2019 | 194 | |
Thereafter | 3,405 | |
Total overdraft facility | 1,380 | |
Revolving credit facility | $0 | $1,700 |