ARC Group Worldwide (ARCW) 10-Q 15 May 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Apr. 02, 2017	May 04, 2017
Document and Entity Information
Entity Registrant Name	ARC Group Worldwide, Inc.
Entity Central Index Key	826,326
Document Type	10-Q
Document Period End Date	Apr. 2, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		18,171,626
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Unaudited Condensed Consolidated Statements of Operations
Sales	$ 25,472	$ 24,885	$ 80,498	$ 72,353
Cost of sales	22,370	19,851	67,604	59,097
Gross profit	3,102	5,034	12,894	13,256
Selling, general and administrative	4,986	4,707	14,824	12,827
(Loss) income from operations	(1,884)	327	(1,930)	429
Other income (expense) , net	88	(23)	893	71
Interest expense, net	(865)	(1,106)	(3,002)	(3,372)
Loss on extinguishment of debt			(723)
Loss before income taxes	(2,661)	(802)	(4,762)	(2,872)
Income tax (expense) benefit	(120)	8	1,181	566
Net loss from continuing operations	(2,781)	(794)	(3,581)	(2,306)
Gain on sale of subsidiary and income from discontinued operations, net of tax	7	457	3,704	934
Net (loss) income	(2,774)	(337)	123	(1,372)
Net income attributable to non-controlling interests:
Continuing operations		(4)	(22)	(48)
Discontinued operations		(20)	(4)	(40)
Net income attributable to non-controlling interests		(24)	(26)	(88)
Net (loss) income attributable to ARC Group Worldwide, Inc.	$ (2,774)	$ (361)	$ 97	$ (1,460)
Net (loss) income per common share, basic and diluted:
Continuing operations (in dollars per share)	$ (0.15)	$ (0.04)	$ (0.19)	$ (0.13)
Discontinued operations (in dollars per share)		0.02	0.20	0.05
Attributable to ARC Group Worldwide, Inc. (in dollars per share)	$ (0.15)	$ (0.02)	$ 0.01	$ (0.08)
Weighted average common shares outstanding:
Basic and diluted (in shares)	18,152,739	18,123,883	18,133,397	18,123,883

Unaudited Condensed Consolidat3

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 02, 2017	Jun. 30, 2016
Current assets:
Cash	$ 723	$ 3,620
Accounts receivable, net	13,996	14,186
Inventories, net	19,712	16,585
Deferred income tax assets		478
Prepaid expenses and other current assets	3,326	3,886
Current assets of discontinued operations		1,818
Total current assets	37,757	40,573
Property and equipment, net	42,182	41,828
Goodwill	11,427	11,427
Intangible assets, net	20,465	23,066
Other	11	28
Long-term assets of discontinued operations		3,527
Total assets	111,842	120,449
Current liabilities:
Accounts payable	10,404	8,602
Accrued expenses and other current liabilities	2,926	2,591
Deferred revenue	1,152	1,457
Bank borrowings, current portion of long-term debt, net of unamortized deferred financing costs	1,644	15,648
Capital lease obligations, current portion	1,389	837
Accrued escrow obligations, current portion	1,211	2,842
Current liabilities of discontinued operations		723
Total current liabilities	18,726	32,700
Long-term debt, net of current portion and unamortized deferred financing costs	42,891	36,769
Deferred income tax liabilities	1,312	1,407
Capital lease obligations, net of current portion	2,175	1,930
Accrued escrow obligations, net of current portion	1,184	966
Other long-term liabilities	1,061	2,115
Long-term liabilities of discontinued operations		19
Total liabilities	67,349	75,906
Commitments and contingencies (Note 12)
Equity:
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0005 par value, 250,000,000 shares authorized; 18,180,027 and 18,803,910 shares issued and 18,171,626 and 18,795,509 shares issued and outstanding at April 2, 2017 and June 30, 2016, respectively	10	10
Treasury stock, at cost; 8,401 shares at April 2, 2017 and June 30, 2016	(94)	(94)
Additional paid-in capital	30,784	29,702
Retained earnings	13,868	13,771
Accumulated other comprehensive loss	(75)	(6)
Total ARC Group Worldwide, Inc. stockholders' equity	44,493	43,383
Non-controlling interests	0	1,160
Total equity	44,493	44,543
Total liabilities and equity	$ 111,842	$ 120,449

Unaudited Condensed Consolidat4

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 02, 2017	Jun. 30, 2016
Unaudited Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0005	$ 0.0005
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	18,180,027	18,803,910
Common stock, shares outstanding	18,171,626	18,795,509
Treasury stock, at cost, shares	8,401	8,401

Unaudited Condensed Consolidat5

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016
Cash flows from operating activities:
Net income (loss)	$ 123	$ (1,372)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	7,413	7,165
Share-based compensation expense	616	138
Gain on sale of subsidiaries	(5,456)
Bad debt expense and other	120	92
Deferred income taxes	194	362
Changes in working capital:
Accounts receivable	(184)	18
Inventory	(3,506)	557
Prepaid expenses and other assets	815	(2,428)
Accounts payable	2,324	834
Accrued expenses	(640)	(1,259)
Deferred revenue	(305)	(274)
Net cash provided by operating activities	1,514	3,833
Cash flows from investing activities:
Purchases of property and equipment	(5,324)	(1,918)
Proceeds from sale of subsidiary	10,538
Net cash provided by (used in) investing activities	5,214	(1,918)
Cash flows from financing activities:
Proceeds from debt issuance	91,264	1,000
Repayments of long-term debt and capital lease obligations	(100,084)	(4,882)
Payment of distributions to non-controlling membership interests from the sale of subsidiary	(453)
Purchase of non-controlling membership interests	(235)
Issuance of common stock under employee stock purchase plan	98
Net cash used in financing activities	(9,410)	(3,882)
Effect of exchange rates on cash	(215)	63
Net decrease in cash	(2,897)	(1,904)
Cash, beginning of period	3,620	4,821
Cash, end of period	723	2,917
Supplemental disclosures of cash flow information:
Cash paid for interest	2,917	2,550
Cash paid for income taxes, net of refunds	$ (858)	$ 597

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	9 Months Ended
	Apr. 02, 2017
Nature of Operations and Basis of Presentation
Nature of Operations and Basis of Presentation	NOTE 1 – Nature of Operations and Basis of Presentation Nature of Operations ARC Group Worldwide, Inc. (the “Company” or “ARC”) is a leading, global advanced manufacturer offering a full suite of products and services to its customers, including: (i) metal injection molding (“MIM”); (ii) metal 3D printing (also referred to as “Additive Manufacturing”); (iii) precision metal stamping; (iv) traditional and clean room plastic injection molding; and (v) advanced rapid and conformal tooling. Through the Company’s diverse product offering, ARC provides its customers with a holistic prototyping and full-run production solution for both precision metal and plastic fabrication. The Company further differentiates itself from its competitors by providing innovative, custom capabilities, which improve high-precision manufacturing efficiency and speed-to-market for its customers. ARC’s mission is to accelerate the adoption of key technologies, such as automation, robotics, production software, and metal 3D printing, in traditional manufacturing, thereby benefiting from the elimination of inefficiencies currently present in the global supply chain. Further, ARC seeks to create innovative ways to streamline and improve the overall manufacturing process, including offering instant online quoting, in-house rapid and advanced conformal tooling, and a full suite of prototype-to-production capabilities. Basis of Presentation The Company’s fiscal year begins July 1 and ends June 30, and the quarters for interim reporting consist of thirteen weeks; therefore, the quarter end will not always coincide with the date of the calendar month-end. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The consolidated balance sheet as of June 30, 2016, was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. As such, this quarterly report should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016. The Company follows the same accounting policies for preparing quarterly and annual reports. Principles of Consolidation The unaudited condensed consolidated financial statements include the amounts of ARC and its controlled subsidiaries. All material intercompany transactions have been eliminated in consolidation.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Apr. 02, 2017
Significant Accounting Policies
Significant Accounting Policies	NOTE 2 – Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Due to the inherent uncertainties in making estimates, actual results could differ from those estimates and such differences may be material to the consolidated financial statements. Non-Controlling Interests During the first quarter of fiscal 2016, the Company purchased approximately 1.9% of the outstanding non-controlling membership interests of Tekna Seal LLC. On September 30, 2016, the Company sold Tekna Seal LLC, which included 95.7% owned by the Company and 4.3% held by minority stakeholders (see Note 3, Discontinued Operations, for more information). Effective October 3, 2016, the Company purchased 3.8% of the outstanding non-controlling membership interests of FloMet LLC, increasing the Company’s ownership to 100%. As a result of these transactions, there is no non-controlling interest on the consolidated balance sheet as of April 2, 2017. The Company has recognized the carrying value of the non-controlling interests as a component of stockholders’ equity for the applicable periods presented. In connection with the purchase of the outstanding non-controlling membership interests of FloMet LLC, we entered into a Consent and Agreement with the seller that provides that if there is any sale of FloMet LLC within three years from October 3, 2016, and if such sale price is higher than the sale of the interests by the Seller, the Seller shall receive a proportionate gross-up payment reflecting such higher price. Comprehensive Income (Loss) For each of the quarters ended April 2, 2017 and March 27, 2016, there were no material differences between net income (loss) and comprehensive income (loss). Accounting Pronouncements Adopted in the Current Period In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes. This update requires an entity to classify deferred tax assets and liabilities as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016, but early adoption is permitted. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted the provisions of ASU 2015-17 on a prospective basis as of July 1, 2016; therefore, the prior period was not retrospectively adjusted. The adoption of ASU 2015-17 did not have an impact on our consolidated results of operations or cash flows. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs to ASC Topic 835, Interest - Imputation of Interest (“ASU 2015-03”). ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. The Company adopted the provisions of ASU 2015-03 on July 1, 2016, which required retroactive application and represented a change in accounting principle. The deferred financing costs of approximately $1.3 million associated with a portion of our outstanding debt, which were previously included in prepaid expenses and other current assets and other assets on the consolidated balance sheet as of June 30, 2016, are reflected as a reduction to the carrying liability of the Company’s outstanding debt. As a result of this change in accounting principle, the consolidated balance sheet as of June 30, 2016 was adjusted as follows (in thousands): June 30, 2016 Previously Effect of Adoption of Reported Accounting Principle As Adjusted Assets: Prepaid expenses and other current assets $ 4,378 $ (429) $ 3,949 Other assets $ 948 $ (920) $ 28 Total assets $ 121,798 $ (1,349) $ 120,449 Liabilities: Bank borrowings, current portion of long-term debt $ 15,909 $ (261) $ 15,648 Long-term debt, net of current portion $ 37,857 $ (1,088) $ 36,769 Total liabilities $ 77,255 $ (1,349) $ 75,906 Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases: Topic 842 (“ASU 2016-02”), to supersede nearly all existing lease guidance under GAAP. ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases. ASU 2016-02 also requires qualitative disclosures along with specific quantitative disclosures and is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the requirements of this guidance and has not yet determined the impact of the adoption on its consolidated financial position, results of operations and cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which defers the effective date for one year beyond the originally specified effective date. ASU 2014-09 is effective in the Company’s first quarter of fiscal 2019 and may transition to the standard using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements.

Divestitures

Divestitures	9 Months Ended
	Apr. 02, 2017
Divestitures
Divestitures	NOTE 3 – Divestitures Tekna Seal LLC On September 30, 2016, the Company sold its non-core subsidiary, Tekna Seal LLC (“Tekna Seal”), to Winchester Electronics Corporation (“Winchester”) pursuant to a Membership Interests Purchase Agreement for $10.5 million in cash. The sale to Winchester covered all of the membership interests of Tekna Seal, including 95.7% owned by the Company and 4.3% held by the Tekna Seal minority stakeholders. The proceeds of the sale, after giving effect to any working capital adjustments, were allocated among the Company and the minority sellers proportionate to their respective ownership of pre-closing membership interests. The Company used the net cash proceeds of the sale to repay principal outstanding under the Company’s revolving loan. During the second quarter of 2017, the Company finalized the working capital adjustments with Winchester and paid the former minority stakeholders. Below is a summary of the gain on sale of discontinued operations (in thousands): Gross proceeds $ 10,538 Less: Property and equipment, net 218 Accounts receivable 918 Inventory 1,268 Other current assets 54 Accounts payable and accrued expenses (936) Working capital adjustment (184) Total net assets disposed 1,338 Goodwill 3,374 Transaction costs 393 Minority interests (393) Payments to minority stakeholders 452 Gain on sale of discontinued operations, before income taxes $ 5,374 In connection with the sale, the Company recorded a pre-tax gain of approximately $5.4 million, which includes a non-cash charge of $3.4 million related to goodwill associated with Tekna Seal, and transaction costs of approximately $0.4 million. The income from operations of Tekna Seal attributable to the Company was approximately $0.4 for the three months ended March 27, 2016 and approximately $0.1 million and $0.9 million for the nine months ended April 2, 2017 and March 27, 2016, respectively. The condensed consolidated statements of operations for the nine months ended April 2, 2017, include the results of operations of Tekna Seal through the sale date of September 30, 2016 and the gain on the sale of Tekna Seal. Financial information for discontinued operations for the three and nine months ended April 2, 2017 and March 27, 2016 is as follows (in thousands): For the three months ended For the nine months ended April 2, 2017 March 27, 2016 April 2, 2017 March 27, 2016 Sales $ — $ 1,615 $ 1,277 $ 3,665 Cost of sales — (938) (943) (2,104) Gross profit — 677 334 1,561 Selling, general and administrative — (220) (242) (627) Income from discontinued operations, before income taxes — 457 92 934 Gain on sale of discontinued operations (14) — 5,374 — Total income from discontinued operations, before income taxes (14) 457 5,466 934 Income tax benefit (expense) on discontinued operations 21 — (1,762) — Income from discontinued operations, net of tax $ 7 $ 457 $ 3,704 $ 934 The following table presents the carrying amount as of June 30, 2016, of the major classes of assets and liabilities held for sale in the condensed consolidated balance sheet (in thousands): June 30, 2016 Current assets: Accounts receivable $ 727 Inventory 1,028 Other assets 63 Total current assets 1,818 Property and equipment, net 153 Goodwill 3,374 Total assets of discontinued operations $ 5,345 Current liabilities: Accounts payable and accrued expenses $ 714 Capital lease obligations 9 Total current liabilities 723 Capital lease obligations 19 Total liabilities of discontinued operations $ 742 Cash flows from Tekna Seal for the nine months ended April 2, 2017 and March 27, 2016 are combined with the cash flows from operations within each of the categories presented on the condensed consolidated statements of cash flows. There were no significant operating or investing activities from discontinued operations during the nine months ended April 2, 2017 and March 27, 2016. ARC Wireless, LLC On March 31, 2017, the Company exited its wireless business and sold the majority of its assets. The proceeds and related gain were immaterial .

Inventory

Inventory	9 Months Ended
	Apr. 02, 2017
Inventory
Inventory	NOTE 4– Inventory Inventories consisted of the following (in thousands): April 2, June 30, 2017 2016 Raw materials and supplies $ 6,065 $ 6,299 Work-in-process 9,036 7,505 Finished goods 5,139 4,664 20,240 Reserve for obsolescence (528) (855) Inventory of discontinued operations — (1,028) $ 19,712 $ 16,585

Property and Equipment

Property and Equipment	9 Months Ended
	Apr. 02, 2017
Property and Equipment
Property and Equipment	NOTE 5 – Property and Equipment Property and equipment consisted of the following (in thousands): Depreciable Life April 2, June 30, (in years) 2017 2016 Land — $ 1,264 $ 1,264 Building and improvements 7 - 40 17,612 17,460 Machinery and equipment 3 - 12 39,984 39,350 Office furniture and equipment 3 - 10 1,272 1,050 Construction-in-process — 2,851 1,838 Assets acquired under capital lease 7,104 5,482 70,087 Accumulated depreciation (25,791) (23,018) Accumulated amortization on capital leases (2,114) (1,445) Property and equipment of discontinued operations — (153) $ $ Depreciation expense totaled $1.7 million and $1.6 million for the three months ended April 2, 2017 and March 27, 2016, respectively, and $4.9 million and $4.6 million for the nine months ended April 2, 2017 and March 27, 2016, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Apr. 02, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	NOTE 6 – Goodwill and Intangible Assets Goodwill The following table summarizes the activity in the Company's goodwill account by segment during the nine months ended April 2, 2017 (in thousands): Precision Components Group 3DMT Group Flanges and Fittings Group Consolidated Balance, June 30, 2016 (1) $ 10,285 $ 2,804 $ 1,712 $ 14,801 Sale of subsidiary (1) (3,374) — — (3,374) Balance, April 2, 2017 $ 6,911 $ 2,804 $ 1,712 $ 11,427 (1) During the three months ended October 2, 2016, the Company sold its majority interest in Tekna Seal and recorded a reduction of goodwill of $3.4 million, which is included in income from discontinued operations, net of tax on the condensed consolidated statement of operations (see Note 3, Discontinued Operations, for more information). Intangible Assets The following table summarizes the Company's intangible assets (in thousands): April 2, 2017 June 30, 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Intangible assets: Amount Amortization Amount Amount Amortization Amount Patents and tradenames $ 3,418 $ (660) $ 2,758 $ 3,773 $ (766) $ 3,007 Customer relationships 24,077 (7,827) 16,250 24,077 (6,021) 18,056 Non-compete agreements 3,642 (2,185) 1,457 3,642 (1,639) 2,003 Total $ 31,137 $ (10,672) $ 20,465 $ 31,492 $ (8,426) $ 23,066 Intangible assets are being amortized using the straight-line method over estimated useful lives ranging from five to fifteen years. Amortization expense totaled $0.8 million for identifiable intangible assets for the three months ended April 2, 2017 and March 27, 2016, and $2.5 million for the nine months ended April 2, 2017 and March 27, 2016. Estimated future amortization expense for the next five years as of April 2, 2017, is as follows (in thousands): Fiscal Years Amount Remainder of 2017 $ 841 2018 3,364 2019 3,182 2020 2,636 2021 2,636 Thereafter 7,806 Total $ 20,465 The sale of ARC Wireless, LLC included certain patents. The remaining intangible assets were immaterial and written off during the three months ended April 2, 2017. There were no impairments of long-lived assets during the three and nine months ended March 27, 2016.

Accrued Escrow Obligations

Accrued Escrow Obligations	9 Months Ended
	Apr. 02, 2017
Accrued Escrow Obligations.
Accrued Escrow Obligations	NOTE 7 – Accrued Escrow Obligations On April 7, 2014, the Company acquired the membership interests of Advance Tooling Concepts, LLC (“ATC”) for approximately $24.3 million, of which: (i) $21.9 million was paid in cash and (ii) $2.4 million, consisting of 233,788 newly issued shares of common stock of the Company, was to be held in escrow for a period of 12 months (“ATC Escrow”) to satisfy certain working capital adjustments and/or indemnification obligations. In July 2014, the ATC Escrow was reduced by $0.7 million following the completion of a working capital adjustment. In October 2015, the Company entered into an agreement to settle and terminate the ATC Escrow in cash. The cash settlement has been accrued in current and long-term liabilities. The ATC Escrow shares were returned to the Company and retired in February 2016. On June 25, 2014, the Company acquired substantially all of the assets of Kecy Corporation (“Kecy”) and 411 Munson Holding, LLC for approximately $26.8 million, of which: (i) $24.2 million was paid in cash; and (ii) $2.6 million, consisting of 172,450 newly issued shares of common stock of the Company, was to be held in escrow for a period of 18 months (“Kecy Escrow”) to satisfy certain working capital adjustments and/or indemnification obligations. In August 2015, and in connection with the decline in the Company’s stock price since the date of acquisition, the Company issued 499,176 additional shares for security of the escrow. In December 2016, the Company entered into an agreement to settle and terminate the Kecy Escrow for $2.2 million. The cash settlement has been accrued in current and long-term liabilities. The Kecy Escrow shares were returned to the Company and retired in February 2017.

Debt

Debt	9 Months Ended
	Apr. 02, 2017
Debt
Debt	NOTE 8 – Debt Long-term debt payable consists of the following (in thousands): Balance as of April 2, 2017 June 30, 2016 Senior secured revolving loan $ 10,097 $ 7,560 Senior secured mortgage-based term loans 20,558 4,449 Senior secured term loan — 16,248 Senior secured delayed draw term loan — 5,509 Subordinated term loan 15,000 20,000 Total debt 45,655 Unamortized deferred financing costs (1,120) (1,349) Total debt, net 44,535 52,417 Current portion of long-term debt, net of unamortized deferred financing costs (1,644) (15,648) Long-term debt, net of current portion and unamortized deferred financing costs $ 42,891 $ 36,769 Senior Credit Agreement On September 29, 2016, the Company and certain of its subsidiaries, entered into a new senior asset-based lending credit agreement with Citizens Bank, N.A. (the “Senior ABL Credit Facility”). The Senior ABL Credit Facility provides the Company with the following extensions of credit and loans: (1) a Revolving Commitment in the principal amount of $25.0 million (the “Revolving Loan”) and (2) a mortgage-based Term Loan Commitment in the principal amount of $17.5 million (the “Term Loan”). The loans under the Senior ABL Credit Facility are secured by liens on substantially all domestic assets of the Company and guaranteed by the Company’s domestic subsidiaries who are not borrowers under the Senior ABL Credit Facility. The aggregate amount of revolving loans permitted under the Senior ABL Credit Facility may not exceed a borrowing base consisting of: (i) the sum of 85% of certain eligible accounts receivable, plus (ii) the lesser of 65% of the value of certain eligible inventory and 85% of the net orderly liquidation value of certain eligible inventory, plus (iii) an amount not to exceed $4.2 million, which amount will be adjusted based on the face amount of certain letters of credit issued to Citizens Bank, N.A. in connection with certain operating leases and capitalized leases, minus (iv) reserves for any amounts which the lender deems necessary or appropriate. Borrowings under the Senior ABL Credit Facility may be made as Base Rate Loans or Eurodollar Rate Loans. The Base Rate loans will bear interest at the fluctuating rate per annum equal to (i) the highest of (a) the Federal Funds Rate plus 1/2 of 1.00%, (b) Citizens own prime rate; and (c) the adjusted Eurodollar rate on such day for an interest period of one (1) month plus 1.00%; and (ii) plus the Applicable Rate, as described below. Eurodollar Rate Loans will bear interest at the rate per annum equal to (i) the ICE Benchmark Administration LIBOR Rate; plus (ii) the Applicable Rate. The “Applicable Rate” will be (a) 2.50% with respect to Base Rate Loans that are Term Loans and 3.50% with respect to Eurodollar Rate Loans that are Term Loans, and (b) 2.50% with respect to Base Rate Loans that are Revolving Loans and 3.50% with respect to Eurodollar Rate Loans that are Revolving Loans, in each case until December 31, 2016, and thereafter the Applicable Rate will be adjusted quarterly, responsive to the Company’s Quarterly Average Availability Percentage, ranging from 1.25% to 1.75% with respect to Base Rate Loans that are Revolving Loans and from 2.25% to 2.75% with respect to Eurodollar Rate Loans that are Revolving Loans. In addition to interest payments on the Senior ABL Credit Facility loans, the Company will pay commitment fees to the lender of 0.375% per quarter on undrawn Revolving Loans. The Company will also pay other customary fees and reimbursements of costs and disbursements to the lender. The Maturity Date with respect to the Revolving Loan and the Term Loan is August 11, 2019, provided, however, upon repayment of Company subordinated indebtedness the maturity date will automatically extend to five years after the Closing Date for Revolving Loans and Revolving Commitments, and with respect to the Term Loans, the earlier of the date that is (i) ten years after the Closing Date and (ii) the maturity date of the Revolving Loans. The Senior ABL Credit Facility contains certain mandatory prepayment provisions, including mandatory prepayments due in respect of sales of assets, sales of equity securities, events of default and other customary events, with exceptions for non-core business dispositions. The Senior ABL Credit Facility contains customary covenants and negative covenants regarding operation of the Company’s business, including maintenance of certain financial ratios, as well as restrictions on dispositions of Company assets. In connection with the Senior ABL Credit Facility, the Company and the Borrowers together with certain subsidiaries (collectively, the “Guarantors”), have entered into an Amended and Restated Guarantee and Collateral Agreement with Citizens Bank, N.A. dated as of September 29, 2016, which secures all of the loans and credits drawn from the Senior ABL Credit Facility by the Borrowers. The security interests established under the Amended and Restated Guarantee and Collateral Agreement include senior secured liens on substantially all of the assets of the Guarantors. The Guarantors have agreed to guarantee the unconditional payment and performance to the lender of all obligations of the Borrowers under the Senior ABL Credit Facility. On March 21, 2017, the Company entered into a first amendment to the Senior ABL Credit Facility to modify various definitions, including Consolidated EBITDA and the fixed charge coverage ratio, and amend prepayment provisions. On May 12, 2017, the Company entered into a second amendment to the Senior ABL Credit Facility to amend the definition of capital expenditures and amend the fixed charge coverage ratio effective with the fiscal quarter ending April 2, 2017. As of April 2, 2017, the Company was in compliance with its debt covenants under the Senior ABL Credit Facility. Prior Amended & Restated Credit Agreement On September 29, 2016, the Company refinanced all of the existing long-term debt obligations with Citizens Bank, N.A. into the Senior ABL Credit Facility described above. The Company accounted for the refinancing as an extinguishment of debt and wrote off $0.7 million of previously deferred financing fees. Subordinated Term Loan Credit Agreement On November 10, 2014, the Company and certain of its subsidiaries entered into a $20.0 million, five-year Subordinated Term Loan Credit Agreement (“Subordinated Loan Agreement”) with McLarty Capital Partners SBIC, L.P. (“McLarty”), which bears interest at 11% annually . Upon an event of default under the Subordinated Loan Agreement, the interest rate increases automatically by 2.00% annually. The proceeds were used to repay certain outstanding loans under the Company’s previous credit facility. ARC’s Chairman and CEO are indirectly related to McLarty; therefore, the Board of Directors appointed a special committee consisting solely of independent directors to assure that the Subordinated Loan Agreement is fair and reasonable to the Company and its shareholders. On April 20, 2016, the Company entered into a second amendment to the Subordinated Loan Agreement (“McLarty Second Amendment”), as previously amended on December 29, 2014, to modi fy certain terms including: (1) Allows for the exclusion from the fixed charge coverage ratio $1.3 million of certain federal and state taxes paid related to prior years, effective March 27, 2016; (2) Modifies the minimum fixed charge coverage ratio and maximum total leverage ratio in line with the Company’s current financial expectations, effective March 27, 2016; and (3) Establishes mandatory prepayments that will be required upon the completion of asset sales or sale-leaseback transactions, with the amount of the prepayments to be determined based upon achievement of certain leverage ratios. On March 31, 2017, the Company entered into a third amendment to the Subordinated Loan Agreement to amend the Consolidated EBITDA definition to increase the amount of permitted add-backs related to a number of items such as tooling investments and certain non-recurring income and expenses and revise the fixed charge coverage ratio definition. The Subordinated Loan Agreement has been subordinated to the Senior ABL Credit Facility pursuant to a First Lien Subordination Agreement. The Subordinated Loan Agreement contains customary representations and warranties, events of default, affirmative covenants, negative covenants, and prepayment terms that are similar to those contained in the Senior ABL Credit Facility described above. As of April 2, 2017, the Company was in compliance with its debt covenants under the Subordinated Credit Facility. Loan Contract On March 23, 2016, AFT-Hungary Kft. (“AFT Hungary”), a wholly owned subsidiary of the Company, entered into a Loan Contract with Erste Bank Hungary Zrt. in an amount equal to €4.0 million (“Loan Contract”). The initial funding of €4.0 million drawn on the Loan Contract occurred on March 31, 2016. Approximately $3.0 million of the net proceeds from the Loan Contract were used to partially repay obligations outstanding under the Amended & Restated Credit Agreement, with the remaining net proceeds to be used for capital expenditures and other investments to facilitate the export of goods and services provided by AFT Hungary. The loan matures on March 7, 2021, and bears interest at a fixed rate of 0.98% per annum. The Company is required to make semi-annual principal payments in an amount equal to approximately €400,000 along with monthly interest payments. The Loan Contract is secured by certain of AFT Hungary’s assets, including the real estate and selected machinery and equipment located in Retsag, Hungary. Future Debt Payments The following schedule represents the Company’s future debt payments as of April 2, 2017 (in thousands): 2017 (1) $ 292 2018 1,731 2019 1,731 2020 16,730 2021 25,171 Total $ 45,655 (1) Represents long-term debt principal payments for the three month period ending June 30, 2017.

Income Taxes

Income Taxes	9 Months Ended
	Apr. 02, 2017
Income Taxes
Income Taxes	NOTE 9 – Income Taxes The income tax receivable was $0. 5 million and $1.6 million at April 2, 2017 and June 30, 2016, respectively. The decrease in the income taxes receivable during the nine months ended April 2, 2017, was primarily associated with the receipt of a federal income tax refund of approximately $0.9 million related to the carryback of the Company’s 2015 net operating loss. The Company had unrecognized tax benefits for uncertain tax positions of $1.1 million and $1.0 million on April 2, 2017 and June 30, 2016, respectively, which are included in other long-term liabilities.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Apr. 02, 2017
Earnings Per Share
Earnings Per Share	NOTE 10 – Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income available to common stockholders by the diluted weighted-average shares of common stock outstanding during each period. In connection with the acquisitions of ATC and Kecy, the Company issued a total of 905,414 shares of common stock, which were placed in escrow to satisfy certain working capital adjustments and/or indemnification obligations. As these escrow shares are expected to be returned to the Company, the escrow shares have been excluded from the basic and diluted earnings per share computations. In February 2016, the 233,788 shares of common stock previously issued for the ATC acquisition were returned to the Company and retired. In February 2017, the remaining 671,626 shares of common stock previously issued for the Kecy acquisition were returned to the Company and retired. As a result of the Company’s net loss from continuing operations, f or the three months ended April 2, 2017 and March 27, 2016, approximately 466,119 and 253,718 shares, respectively, and for the nine months ended April 2, 2017 and March 27, 2016, approximately 332,031 and 253,718 shares, respectively, were considered anti-dilutive and were excluded from the computation of diluted earnings per share.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Apr. 02, 2017
Share-Based Compensation.
Share-Based Compensation	NOTE 11 – Share-Based Compensation In November 2015, the Company’s stockholders approved the ARC Group Worldwide, Inc. 2015 Equity Incentive Plan (“2015 Plan”), which is administered by the Compensation Committee (“Committee”) of the Board of Directors. The 2015 Plan reserves for issuance a total of 950,000 shares of common stock, which may be in the form of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, or other types of awards as authorized under the plan. As of April 2, 2017, there were 7,125 shares of common stock available to be granted under the 2015 Plan. In the case of stock options, the exercise price of the stock options granted may not be less than the fair market value of a share of common stock at the date of grant. The Committee determines the vesting conditions of awards; however, the performance period for an award subject to the satisfaction of performance measures may not exceed five years. The 2015 Plan will terminate ten years after its adoption, unless terminated earlier by the Company’s Board of Directors. In November 2016, the Company’s stockholders approved the 2016 ARC Group Worldwide, Inc. Equity Incentive Plan (“2016 Plan”), which reserves for issuance a total of 950,000 shares of common stock. The 2016 Plan contains terms and conditions substantially similar to the 2015 Plan. As of April 2, 2017, there were 75,920 shares of common stock available to be granted under the 2016 Plan. A summary of stock option activity under the 2015 Plan and 2016 Plan as of April 2, 2017 is as follows: Weighted Weighted Average Average Exercise Remaining Contractual Shares Price Term (in years) Outstanding as of June 30, 2016 759,050 $ 1.51 Granted 1,065,030 $ 4.06 Forfeited (7,125) $ 1.51 Outstanding as of April 2, 2017 1,816,955 $ 3.00 7.81 Vested and exercisable as of April 2, 2017 451,754 $ 1.90 6.03 Vested and expected to vest as of April 2, 2017 1,603,891 $ 2.97 7.75 The vesting of 874,080 shares granted under the 2016 Plan during the third quarter of 2017 is contingent upon the achievement of a market condition. If vesting occurs, the compensation expense related to the vested awards that has not been previously amortized will be recognized upon vesting. As of April 2, 2017, the market-based condition has not been achieved. Stock options granted during the nine month period ending April 2, 2017 have contractual lives of seven to ten years. The weighted-average grant date fair value of stock options granted during the nine months ended April 2, 2017, was $2.17 per share. The total fair value of shares vested during the nine months ended April 2, 2017 was $1.0 million. Determining Fair Value The Company estimated the fair value of stock options granted under the 2015 Plan using the Black-Scholes method. The Company estimated the fair value and derived service period of stock options granted under the 2016 Plan with market-based vesting conditions on the date of grant using a Monte Carlo simulation, with assumptions comparable to those used under the Black-Scholes method. The assumptions used to determine the value of the Company’s stock options granted to employees during the nine month period ended April 2, 2017 were as follows: Expected term - years Expected volatility % - % Expected dividend yield - % Risk-free interest rate % - % Expected Term – The expected term represents the period of time the options are expected to be outstanding. The Company uses the simplified method, as permitted by the SEC, to calculate the expected term, as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected life in years. The simplified method is calculated as the average of the time-to-vesting and the contractual life of the options. Expected Volatility – Expected volatility is based on the historical volatility of the Company’s common stock, which we believe will be indicative of future experience. Expected Dividends – The Company has never paid dividends on its common stock and currently does not intend to do so in the near term, and accordingly, the dividend yield percentage is zero. Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant with a term equal to the expected term of the stock option granted. Share-Based Compensation Expense Compensation expense recognized during the three months ended April 2, 2017 and March 27, 2016 was $0.2 million and $0.1 million, respectively, and during the nine months ended April 2, 2017 and March 27, 2016 was $0.6 million and $0.1 million, respectively, and is included in selling, general and administrative expense. As of April 2, 2017, there was $1.9 million of total unrecognized compensation expense related to non-vested stock options, which is expected to be recognized over a weighted-average period of 1.8 years. The Company estimated expected forfeitures and is recognizing compensation expense only for those option grants expected to vest. The Company’s estimate of forfeitures may be adjusted throughout the requisite service period based on the extent to which actual forfeitures differ, or are likely to differ, from the Company’s previous estimates. At the end of the service period compensation cost will have been recognized only for those awards for which the employee has provided the requisite service. Employee Stock Purchase Plan Under the terms of the Company’s employee stock purchase plan ("ESPP"), eligible employees may authorize payroll deductions up to 10% of their base pay to purchase shares of the Company’s common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each six-month purchase period. A total of 750,000 shares were authorized under the ESPP. The purchase period began on August 1, 2016. As of April 2, 2017, there were 702,266 shares available for issuance. During the three months ended April 2, 2017, 47,734 shares were purchased under the ESPP at a price of $2.05 and a grant date fair value of $2.42.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Apr. 02, 2017
Commitments and Contingencies
Commitments and Contingencies	NOTE 12 – Commitments and Contingencies During the third quarter of fiscal 2017, Kecy experienced a wind-generated power disruption that temporarily halted production for several days and severely damaged key equipment. The Company is insured for these business interruption and equipment repair costs and filed an insurance claim with its insurance provider. The estimated loss of $0.4 million is expected to be covered by insurance and is recorded as an insurance claim receivable at April 2, 2017. The Company leases land, facilities, and equipment under various non-cancellable operating lease agreements expiring through August 31, 2024, which contain various renewal options. The Company also leases equipment under non-cancellable capital lease agreements expiring through June 30, 2024. The capital leases have interest rates ranging from 3.0% to 4.6%. From time to time, the Company is a party to various litigation matters incidental to the conduct of its business. As of April 2, 2017, the Company is not presently a party to any legal proceedings, the resolution of which, management believes, would have a material adverse effect on its business, operating results, financial condition, or cash flows.

Segment Information

Segment Information	9 Months Ended
	Apr. 02, 2017
Segment Information
Segment Information	NOTE 13 – Segment Information The Company’s operations were classified into four reportable business segments: Precision Components Group, 3DMT Group, Flanges and Fittings Group, and Wireless Group. On March 31, 2017, the Company ceased its wireless operations, which comprised the Wireless Group. · The Precision Components Group companies provide highly engineered fabricated metal components using processes consisting of metal injection molding and precision metal stamping. Industries served include aerospace, automotive, consumer durables, electronic devices, firearms and defense, and medical and dental devices. · The 3DMT Group consists of our tooling product line, 3D Material Technologies, LLC (“3DMT”, our metal 3D printing and additive manufacturing operations), and ATC. · The Flanges and Fittings Group consists of General Flange & Forge LLC (“GF&F”). GF&F provides custom machining solutions and special flange facings. · The Wireless Group focused on wireless broadband technology. The historical results of Tekna Seal, which were included in the Precision Components Group segment, have been reflected as discontinued operations; therefore, historical segment information has been restated. Summarized segment information for the three and nine month periods ended April 2, 2017 and March 27, 2016 is as follows (in thousands): Three months ended Nine months ended April 2, March 27, April 2, March 27, 2017 2016 2017 2016 Sales: Precision Components Group $ $ 17,443 $ $ 51,626 3DMT Group 5,701 15,905 Flanges and Fittings Group 1,244 3,565 Wireless Group 497 1,257 Consolidated sales $ $ $ $ Operating costs: Precision Components Group $ $ 15,697 $ $ 48,284 3DMT Group 6,142 16,643 Flanges and Fittings Group 1,115 3,187 Wireless Group 404 1,031 Consolidated operating costs $ $ $ $ Segment operating income (loss): Precision Components Group $ $ $ $ 3DMT Group Flanges and Fittings Group Wireless Group Corporate (1) Total segment operating (loss) income $ $ $ $ Interest expense, net (1,106) (3,372) Loss on extinguishment of debt — — — Other income (expense), net (23) 71 Non-operating expense Consolidated loss before income taxes and non-controlling interest $ $ $ $ (1) Corporate expense includes compensation and benefits, insurance, legal, accounting, consulting, and board of director’s fees.

Significant Customers

Significant Customers	9 Months Ended
	Apr. 02, 2017
Significant Customers
Significant Customers	NOTE 14 – Significant Customers The concentration of the Company’s business with a relatively small number of customers may expose it to a material adverse effect if one or more of these large customers were to experience financial difficulty or were to cease being a customer for non-financial related issues. The Company’s revenue concentrations of 5% or greater are as follows: Percentage of Sales Three months ended Nine months ended April 2, March 27, April 2, March 27, Customer 2017 2016 2017 2016 1 (a) 14.2 % 11.0 % 12.7 % 9.8 % 2 (b) 8.1 % 11.2 % 11.9 % 9.3 % 3 (a) 5.7 % 7.9 % 7.1 % 7.7 % 4 (a) 6.0 % 8.6 % 6.3 % 8.9 % 5 (a) 6.0 % 5.8 % 6.2 % 5.9 % Total 40.0 % 44.5 % 44.2 % 41.6 % (a) Revenue from this customer is generated through our Precision Components Group segment. (b) Revenue from this customer is generated through our 3DMT Group segment. The Company’s accounts receivable concentrations of 5% or greater for the above-listed customers are as follows: Percentage of Receivables Customer April 2, 2017 June 30, 2016 1 14.7 % 10.5 % 2 ** % 8.3 % 3 ** % 8.3 % 4 ** % 5.2 % 5 ** % ** % Total 14.7 % 32.3 %

Significant Accounting Polici20

Significant Accounting Policies (Policies)	9 Months Ended
	Apr. 02, 2017
Significant Accounting Policies
Basis of Presentation	Basis of Presentation The Company’s fiscal year begins July 1 and ends June 30, and the quarters for interim reporting consist of thirteen weeks; therefore, the quarter end will not always coincide with the date of the calendar month-end. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The consolidated balance sheet as of June 30, 2016, was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. As such, this quarterly report should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016. The Company follows the same accounting policies for preparing quarterly and annual reports.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the amounts of ARC and its controlled subsidiaries. All material intercompany transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Due to the inherent uncertainties in making estimates, actual results could differ from those estimates and such differences may be material to the consolidated financial statements.
Non-Controlling Interest	Non-Controlling Interests During the first quarter of fiscal 2016, the Company purchased approximately 1.9% of the outstanding non-controlling membership interests of Tekna Seal LLC. On September 30, 2016, the Company sold Tekna Seal LLC, which included 95.7% owned by the Company and 4.3% held by minority stakeholders (see Note 3, Discontinued Operations, for more information). Effective October 3, 2016, the Company purchased 3.8% of the outstanding non-controlling membership interests of FloMet LLC, increasing the Company’s ownership to 100%. As a result of these transactions, there is no non-controlling interest on the consolidated balance sheet as of April 2, 2017. The Company has recognized the carrying value of the non-controlling interests as a component of stockholders’ equity for the applicable periods presented. In connection with the purchase of the outstanding non-controlling membership interests of FloMet LLC, we entered into a Consent and Agreement with the seller that provides that if there is any sale of FloMet LLC within three years from October 3, 2016, and if such sale price is higher than the sale of the interests by the Seller, the Seller shall receive a proportionate gross-up payment reflecting such higher price.
Comprehensive Income (Loss)	Comprehensive Income (Loss) For each of the quarters ended April 2, 2017 and March 27, 2016, there were no material differences between net income (loss) and comprehensive income (loss).
Accounting Pronouncements Adopted in the Current Period and Recent Accounting Pronouncements	Accounting Pronouncements Adopted in the Current Period In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes. This update requires an entity to classify deferred tax assets and liabilities as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016, but early adoption is permitted. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted the provisions of ASU 2015-17 on a prospective basis as of July 1, 2016; therefore, the prior period was not retrospectively adjusted. The adoption of ASU 2015-17 did not have an impact on our consolidated results of operations or cash flows. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs to ASC Topic 835, Interest - Imputation of Interest (“ASU 2015-03”). ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. The Company adopted the provisions of ASU 2015-03 on July 1, 2016, which required retroactive application and represented a change in accounting principle. The deferred financing costs of approximately $1.3 million associated with a portion of our outstanding debt, which were previously included in prepaid expenses and other current assets and other assets on the consolidated balance sheet as of June 30, 2016, are reflected as a reduction to the carrying liability of the Company’s outstanding debt. As a result of this change in accounting principle, the consolidated balance sheet as of June 30, 2016 was adjusted as follows (in thousands): June 30, 2016 Previously Effect of Adoption of Reported Accounting Principle As Adjusted Assets: Prepaid expenses and other current assets $ 4,378 $ (429) $ 3,949 Other assets $ 948 $ (920) $ 28 Total assets $ 121,798 $ (1,349) $ 120,449 Liabilities: Bank borrowings, current portion of long-term debt $ 15,909 $ (261) $ 15,648 Long-term debt, net of current portion $ 37,857 $ (1,088) $ 36,769 Total liabilities $ 77,255 $ (1,349) $ 75,906 Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases: Topic 842 (“ASU 2016-02”), to supersede nearly all existing lease guidance under GAAP. ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases. ASU 2016-02 also requires qualitative disclosures along with specific quantitative disclosures and is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the requirements of this guidance and has not yet determined the impact of the adoption on its consolidated financial position, results of operations and cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which defers the effective date for one year beyond the originally specified effective date. ASU 2014-09 is effective in the Company’s first quarter of fiscal 2019 and may transition to the standard using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company is currently evaluating the impact of its pending adoption of ASU 2014-09 on its consolidated financial statements.

Significant Accounting Polici21

Significant Accounting Policies (Tables)	9 Months Ended
	Apr. 02, 2017
Significant Accounting Policies
Schedule of the effect of the early adoption of ASU 2015-03	As a result of this change in accounting principle, the consolidated balance sheet as of June 30, 2016 was adjusted as follows (in thousands): June 30, 2016 Previously Effect of Adoption of Reported Accounting Principle As Adjusted Assets: Prepaid expenses and other current assets $ 4,378 $ (429) $ 3,949 Other assets $ 948 $ (920) $ 28 Total assets $ 121,798 $ (1,349) $ 120,449 Liabilities: Bank borrowings, current portion of long-term debt $ 15,909 $ (261) $ 15,648 Long-term debt, net of current portion $ 37,857 $ (1,088) $ 36,769 Total liabilities $ 77,255 $ (1,349) $ 75,906

Divestitures (Tables)

Divestitures (Tables)	9 Months Ended
	Apr. 02, 2017
Schedule of discontinued operations results	Financial information for discontinued operations for the three and nine months ended April 2, 2017 and March 27, 2016 is as follows (in thousands): For the three months ended For the nine months ended April 2, 2017 March 27, 2016 April 2, 2017 March 27, 2016 Sales $ — $ 1,615 $ 1,277 $ 3,665 Cost of sales — (938) (943) (2,104) Gross profit — 677 334 1,561 Selling, general and administrative — (220) (242) (627) Income from discontinued operations, before income taxes — 457 92 934 Gain on sale of discontinued operations (14) — 5,374 — Total income from discontinued operations, before income taxes (14) 457 5,466 934 Income tax benefit (expense) on discontinued operations 21 — (1,762) — Income from discontinued operations, net of tax $ 7 $ 457 $ 3,704 $ 934
Discontinued Operations, Disposed of by Sale
Schedule of gain on sale of discontinued operations	Below is a summary of the gain on sale of discontinued operations (in thousands): Gross proceeds $ 10,538 Less: Property and equipment, net 218 Accounts receivable 918 Inventory 1,268 Other current assets 54 Accounts payable and accrued expenses (936) Working capital adjustment (184) Total net assets disposed 1,338 Goodwill 3,374 Transaction costs 393 Minority interests (393) Payments to minority stakeholders 452 Gain on sale of discontinued operations, before income taxes $ 5,374
Discontinued Operations, Held-for-sale
Schedule of assets and liabilities classified and disposed	The following table presents the carrying amount as of June 30, 2016, of the major classes of assets and liabilities held for sale in the condensed consolidated balance sheet (in thousands): June 30, 2016 Current assets: Accounts receivable $ 727 Inventory 1,028 Other assets 63 Total current assets 1,818 Property and equipment, net 153 Goodwill 3,374 Total assets of discontinued operations $ 5,345 Current liabilities: Accounts payable and accrued expenses $ 714 Capital lease obligations 9 Total current liabilities 723 Capital lease obligations 19 Total liabilities of discontinued operations $ 742

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Apr. 02, 2017
Inventory
Schedule of inventories	Inventories consisted of the following (in thousands): April 2, June 30, 2017 2016 Raw materials and supplies $ 6,065 $ 6,299 Work-in-process 9,036 7,505 Finished goods 5,139 4,664 20,240 Reserve for obsolescence (528) (855) Inventory of discontinued operations — (1,028) $ 19,712 $ 16,585

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Apr. 02, 2017
Property and Equipment
Schedule of property and equipment	Property and equipment consisted of the following (in thousands): Depreciable Life April 2, June 30, (in years) 2017 2016 Land — $ 1,264 $ 1,264 Building and improvements 7 - 40 17,612 17,460 Machinery and equipment 3 - 12 39,984 39,350 Office furniture and equipment 3 - 10 1,272 1,050 Construction-in-process — 2,851 1,838 Assets acquired under capital lease 7,104 5,482 70,087 Accumulated depreciation (25,791) (23,018) Accumulated amortization on capital leases (2,114) (1,445) Property and equipment of discontinued operations — (153) $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Apr. 02, 2017
Goodwill and Intangible Assets
Summary of goodwill activity	The following table summarizes the activity in the Company's goodwill account by segment during the nine months ended April 2, 2017 (in thousands): Precision Components Group 3DMT Group Flanges and Fittings Group Consolidated Balance, June 30, 2016 (1) $ 10,285 $ 2,804 $ 1,712 $ 14,801 Sale of subsidiary (1) (3,374) — — (3,374) Balance, April 2, 2017 $ 6,911 $ 2,804 $ 1,712 $ 11,427 (1) During the three months ended October 2, 2016, the Company sold its majority interest in Tekna Seal and recorded a reduction of goodwill of $3.4 million, which is included in income from discontinued operations, net of tax on the condensed consolidated statement of operations (see Note 3, Discontinued Operations, for more information).
Summary of intangible assets	The following table summarizes the Company's intangible assets (in thousands): April 2, 2017 June 30, 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Intangible assets: Amount Amortization Amount Amount Amortization Amount Patents and tradenames $ 3,418 $ (660) $ 2,758 $ 3,773 $ (766) $ 3,007 Customer relationships 24,077 (7,827) 16,250 24,077 (6,021) 18,056 Non-compete agreements 3,642 (2,185) 1,457 3,642 (1,639) 2,003 Total $ 31,137 $ (10,672) $ 20,465 $ 31,492 $ (8,426) $ 23,066
Schedule of estimated future amortization expense of intangible assets	Estimated future amortization expense for the next five years as of April 2, 2017, is as follows (in thousands): Fiscal Years Amount Remainder of 2017 $ 841 2018 3,364 2019 3,182 2020 2,636 2021 2,636 Thereafter 7,806 Total $ 20,465

Debt (Tables)

Debt (Tables)	9 Months Ended
	Apr. 02, 2017
Debt
Schedule of long-term debt payable	Long-term debt payable consists of the following (in thousands): Balance as of April 2, 2017 June 30, 2016 Senior secured revolving loan $ 10,097 $ 7,560 Senior secured mortgage-based term loans 20,558 4,449 Senior secured term loan — 16,248 Senior secured delayed draw term loan — 5,509 Subordinated term loan 15,000 20,000 Total debt 45,655 Unamortized deferred financing costs (1,120) (1,349) Total debt, net 44,535 52,417 Current portion of long-term debt, net of unamortized deferred financing costs (1,644) (15,648) Long-term debt, net of current portion and unamortized deferred financing costs $ 42,891 $ 36,769
Schedule of future debt payments	The following schedule represents the Company’s future debt payments as of April 2, 2017 (in thousands): 2017 (1) $ 292 2018 1,731 2019 1,731 2020 16,730 2021 25,171 Total $ 45,655 Represents long-term debt principal payments for the three month period ending June 30, 2017.

Share-Based Compensation and Em

Share-Based Compensation and Employee Benefit Plans (Tables)	9 Months Ended
	Apr. 02, 2017
Share-Based Compensation and Employee Benefit Plans
Summary of stock option activity	A summary of stock option activity under the 2015 Plan and 2016 Plan as of April 2, 2017 is as follows: Weighted Weighted Average Average Exercise Remaining Contractual Shares Price Term (in years) Outstanding as of June 30, 2016 759,050 $ 1.51 Granted 1,065,030 $ 4.06 Forfeited (7,125) $ 1.51 Outstanding as of April 2, 2017 1,816,955 $ 3.00 7.81 Vested and exercisable as of April 2, 2017 451,754 $ 1.90 6.03 Vested and expected to vest as of April 2, 2017 1,603,891 $ 2.97 7.75
Schedule of stock options, valuation assumptions	The assumptions used to determine the value of the Company’s stock options granted to employees during the nine month period ended April 2, 2017 were as follows: Expected term - years Expected volatility % - % Expected dividend yield - % Risk-free interest rate % - %

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Apr. 02, 2017
Segment Information
Summary of segment information	Summarized segment information for the three and nine month periods ended April 2, 2017 and March 27, 2016 is as follows (in thousands): Three months ended Nine months ended April 2, March 27, April 2, March 27, 2017 2016 2017 2016 Sales: Precision Components Group $ $ 17,443 $ $ 51,626 3DMT Group 5,701 15,905 Flanges and Fittings Group 1,244 3,565 Wireless Group 497 1,257 Consolidated sales $ $ $ $ Operating costs: Precision Components Group $ $ 15,697 $ $ 48,284 3DMT Group 6,142 16,643 Flanges and Fittings Group 1,115 3,187 Wireless Group 404 1,031 Consolidated operating costs $ $ $ $ Segment operating income (loss): Precision Components Group $ $ $ $ 3DMT Group Flanges and Fittings Group Wireless Group Corporate (1) Total segment operating (loss) income $ $ $ $ Interest expense, net (1,106) (3,372) Loss on extinguishment of debt — — — Other income (expense), net (23) 71 Non-operating expense Consolidated loss before income taxes and non-controlling interest $ $ $ $ (1) Corporate expense includes compensation and benefits, insurance, legal, accounting, consulting, and board of director’s fees.

Significant Customers (Tables)

Significant Customers (Tables)	9 Months Ended
	Apr. 02, 2017
Significant Customers
Schedule of sales and accounts receivable customer concentration risk	The Company’s revenue concentrations of 5% or greater are as follows: Percentage of Sales Three months ended Nine months ended April 2, March 27, April 2, March 27, Customer 2017 2016 2017 2016 1 (a) 14.2 % 11.0 % 12.7 % 9.8 % 2 (b) 8.1 % 11.2 % 11.9 % 9.3 % 3 (a) 5.7 % 7.9 % 7.1 % 7.7 % 4 (a) 6.0 % 8.6 % 6.3 % 8.9 % 5 (a) 6.0 % 5.8 % 6.2 % 5.9 % Total 40.0 % 44.5 % 44.2 % 41.6 % (a) Revenue from this customer is generated through our Precision Components Group segment. (b) Revenue from this customer is generated through our 3DMT Group segment. The Company’s accounts receivable concentrations of 5% or greater for the above-listed customers are as follows: Percentage of Receivables Customer April 2, 2017 June 30, 2016 1 14.7 % 10.5 % 2 ** % 8.3 % 3 ** % 8.3 % 4 ** % 5.2 % 5 ** % ** % Total 14.7 % 32.3 %

Nature of Operations and Basi30

Nature of Operations and Basis of Presentation (Details)	9 Months Ended
	Apr. 02, 2017
Basis of Presentation
Length of interim quarterly reporting periods	91 days

Significant Accounting Polici31

Significant Accounting Policies - Non Controlling Interests (Details) - USD ($) $ in Thousands	Oct. 03, 2016	Sep. 27, 2015	Apr. 02, 2017	Sep. 30, 2016	Jun. 30, 2016
Non-Controlling Interest
Non-controlling interests			$ 0		$ 1,160
TeknaSeal
Non-Controlling Interest
Purchase of outstanding non-controlling interest (as a percent)		1.90%
Percentage ownership in subsidiary				95.70%
Third party ownership percentage				4.30%
FloMet
Non-Controlling Interest
Purchase of outstanding non-controlling interest (as a percent)	3.80%
Percentage ownership in subsidiary	100.00%
Contingency period under consent and agreement (in years)	3 years

Significant Accounting Polici32

Significant Accounting Policies - Accounting Pronouncements Adopted in the Current Period (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Jun. 30, 2016
Assets
Prepaid expenses and other current assets	$ 3,326	$ 3,886
Other assets	11	28
Total assets	111,842	120,449
Liabilities
Bank borrowings, current portion of long-term debt	1,644	15,648
Long-term debt, net of current portion	42,891	36,769
Total liabilities	$ 67,349	75,906
Accounting Standards Update 2015-03
Assets
Prepaid expenses and other current assets		3,949
Other assets		28
Total assets		120,449
Liabilities
Bank borrowings, current portion of long-term debt		15,648
Long-term debt, net of current portion		36,769
Total liabilities		75,906
Accounting Standards Update 2015-03 | Previously reported
Assets
Prepaid expenses and other current assets		4,378
Other assets		948
Total assets		121,798
Liabilities
Bank borrowings, current portion of long-term debt		15,909
Long-term debt, net of current portion		37,857
Total liabilities		77,255
Accounting Standards Update 2015-03 | Effect of Adoption of Accounting Principle
Assets
Prepaid expenses and other current assets		(429)
Other assets		(920)
Total assets		(1,349)
Liabilities
Bank borrowings, current portion of long-term debt		(261)
Long-term debt, net of current portion		(1,088)
Total liabilities		$ (1,349)

Divestitures (Details)

Divestitures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016	Sep. 30, 2016	Jun. 30, 2016
Less:
Property and equipment, net						$ 153
Inventory						$ 1,028
Payments to minority stakeholders			$ 453
TeknaSeal | Discontinued Operations, Disposed of by Sale
Discontinued Operations
Percentage ownership in subsidiary					95.70%
Third party ownership percentage					4.30%
Less:
Gain on sale of discontinued operations, before income taxes	$ (14)		5,374
Precision Components Group
Less:
Non-cash charge for goodwill			3,374
Precision Components Group | TeknaSeal | Discontinued Operations, Disposed of by Sale
Discontinued Operations
Gross proceeds	10,538		10,538
Less:
Property and equipment, net	218		218
Accounts receivable	918		918
Inventory	1,268		1,268
Other current assets	54		54
Accounts payable and accrued expenses	(936)		(936)
Working capital adjustment	(184)		(184)
Total net assets disposed	1,338		1,338
Goodwill	3,374		3,374
Transaction costs			393
Minority interests	$ (393)		(393)
Payments to minority stakeholders			452
Gain on sale of discontinued operations, before income taxes			5,374
Income from operations attributable to Company		$ 400	$ 100	$ 900

Divestitures - Financial Data (

Divestitures - Financial Data (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Financial data
Income from discontinued operations, net of tax	$ 7	$ 457	$ 3,704	$ 934
TeknaSeal | Discontinued Operations, Disposed of by Sale
Financial data
Sales			1,277
Cost of sales			(943)
Gross profit			334
Selling, general and administrative			(242)
Income of discontinued operations, before income taxes			92
Gain on sale of discontinued operations	(14)		5,374
Total income from discontinued operations, before income taxes	(14)		5,466
Income tax benefit (expense) on discontinued operations	21		(1,762)
Income from discontinued operations, net of tax	$ 7		3,704
TeknaSeal | Discontinued Operations, Held-for-sale
Financial data
Sales		1,615		3,665
Cost of sales		(938)		(2,104)
Gross profit		677		1,561
Selling, general and administrative		(220)		(627)
Income of discontinued operations, before income taxes		457		934
Total income from discontinued operations, before income taxes		457		934
Income from discontinued operations, net of tax		$ 457		$ 934
Precision Components Group | TeknaSeal | Discontinued Operations, Disposed of by Sale
Financial data
Gain on sale of discontinued operations			$ 5,374

Divestitures - Held for Sale (D

Divestitures - Held for Sale (Details) $ in Thousands	Jun. 30, 2016USD ($)
Current assets:
Inventory	$ 1,028
Total current assets	1,818
Property and equipment, net	153
Current liabilities
Total current liabilities	723
Precision Components Group | TeknaSeal | Discontinued Operations, Held-for-sale
Current assets:
Accounts receivable	727
Inventory	1,028
Other assets	63
Total current assets	1,818
Property and equipment, net	153
Goodwill	3,374
Total assets of discontinued operations	5,345
Current liabilities
Accounts payable and accrued expenses	714
Capital lease obligations	9
Total current liabilities	723
Capital lease obligations	19
Total liabilities of discontinued operations	$ 742

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Jun. 30, 2016
Inventory
Raw materials and supplies	$ 6,065	$ 6,299
Work-in-process	9,036	7,505
Finished goods	5,139	4,664
Inventories, gross	20,240	18,468
Reserve for obsolescence	(528)	(855)
Inventory of discontinued operations		(1,028)
Inventories, net	$ 19,712	$ 16,585

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016	Jun. 30, 2016
Property and equipment
Property and equipment, gross	$ 70,087		$ 70,087		$ 66,444
Assets acquired under capital lease	7,104		7,104		5,482
Accumulated depreciation	(25,791)		(25,791)		(23,018)
Accumulated amortization on capital leases	(2,114)		(2,114)		(1,445)
Property and equipment of discontinued operations					(153)
Property and equipment, net	42,182		42,182		41,828
Depreciation expense	1,700	$ 1,600	4,900	$ 4,600
Land
Property and equipment
Property and equipment, gross	1,264		1,264		1,264
Building and improvements
Property and equipment
Property and equipment, gross	17,612		$ 17,612		17,460
Building and improvements | Minimum
Property and equipment
Depreciable Life			7 years
Building and improvements | Maximum
Property and equipment
Depreciable Life			40 years
Machinery and equipment
Property and equipment
Property and equipment, gross	39,984		$ 39,984		39,350
Machinery and equipment | Minimum
Property and equipment
Depreciable Life			3 years
Machinery and equipment | Maximum
Property and equipment
Depreciable Life			12 years
Office furniture and equipment
Property and equipment
Property and equipment, gross	1,272		$ 1,272		1,050
Office furniture and equipment | Minimum
Property and equipment
Depreciable Life			3 years
Office furniture and equipment | Maximum
Property and equipment
Depreciable Life			10 years
Construction-in-process
Property and equipment
Property and equipment, gross	$ 2,851		$ 2,851		$ 1,838

Goodwill and Intangible Asset38

Goodwill and Intangible Assets - Goodwill Activity (Details) $ in Thousands	9 Months Ended
	Apr. 02, 2017USD ($)
Goodwill
Balance, beginning of period (1)	$ 14,801
Balance, end of period	11,427
TeknaSeal | Discontinued Operations, Disposed of by Sale | Income From Discontinued Operations, Net of Tax
Goodwill
Sale of subsidiary (1)	(3,374)
Precision Components Group
Goodwill
Balance, beginning of period (1)	10,285
Sale of subsidiary (1)	(3,374)
Balance, end of period	6,911
3DMT Group
Goodwill
Balance, beginning of period (1)	2,804
Balance, end of period	2,804
Flanges and Fittings Group
Goodwill
Balance, beginning of period (1)	1,712
Balance, end of period	$ 1,712

Goodwill and Intangible Asset39

Goodwill and Intangible Assets - Intangible Assets Summary and Future Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016	Jun. 30, 2016
Intangible assets
Gross Carrying Amount	$ 31,137		$ 31,137		$ 31,492
Accumulated Amortization	(10,672)		(10,672)		(8,426)
Net Carrying Amount	20,465		20,465		23,066
Amortization expense	800	$ 800	2,500	$ 2,500
Estimated future amortization expense
Remainder of 2017	841		841
2,018	3,364		3,364
2,019	3,182		3,182
2,020	2,636		2,636
2,021	2,636		2,636
Thereafter	7,806		7,806
Net Carrying Amount	20,465		$ 20,465		23,066
Minimum
Intangible assets
Estimated useful life			5 years
Maximum
Intangible assets
Estimated useful life			15 years
Patents and tradenames
Intangible assets
Gross Carrying Amount	3,418		$ 3,418		3,773
Accumulated Amortization	(660)		(660)		(766)
Net Carrying Amount	2,758		2,758		3,007
Estimated future amortization expense
Net Carrying Amount	2,758		2,758		3,007
Customer relationships
Intangible assets
Gross Carrying Amount	24,077		24,077		24,077
Accumulated Amortization	(7,827)		(7,827)		(6,021)
Net Carrying Amount	16,250		16,250		18,056
Estimated future amortization expense
Net Carrying Amount	16,250		16,250		18,056
Non-compete agreements
Intangible assets
Gross Carrying Amount	3,642		3,642		3,642
Accumulated Amortization	(2,185)		(2,185)		(1,639)
Net Carrying Amount	1,457		1,457		2,003
Estimated future amortization expense
Net Carrying Amount	$ 1,457		$ 1,457		$ 2,003

Accrued Escrow Obligations (Det

Accrued Escrow Obligations (Details) - USD ($) $ in Millions	Jun. 25, 2014	Apr. 07, 2014	Dec. 31, 2016	Aug. 31, 2015	Jul. 31, 2014
Advance Tooling Concepts
Purchase price for the acquisition
Aggregate purchase price		$ 24.3
Cash paid		21.9
Common stock placed in escrow, value		$ 2.4
Number of shares issued and placed into escrow		233,788
Escrow period		12 months
Reduction in escrow due to working capital adjustments					$ 0.7
Kecy
Purchase price for the acquisition
Aggregate purchase price	$ 26.8
Cash paid	24.2
Common stock placed in escrow, value	$ 2.6
Number of shares issued and placed into escrow	172,450			499,176
Escrow period	18 months
Liability to settle escrow			$ 2.2

Debt - Long-term Debt Payable (

Debt - Long-term Debt Payable (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Jun. 30, 2016
Debt
Total debt	$ 45,655	$ 53,766
Unamortized deferred financing costs	(1,120)	(1,349)
Total debt, net	44,535	52,417
Current portion of long-term debt, net of unamortized deferred financing costs	(1,644)	(15,648)
Long-term debt, net of current portion and unamortized deferred financing costs	42,891	36,769
Senior Secured Revolving Loan
Debt
Total debt	10,097	7,560
Senior secured mortgage-based term loans
Debt
Total debt	20,558	4,449
Senior secured term loan
Debt
Total debt		16,248
Senior secured delayed draw term loan
Debt
Total debt		5,509
Subordinated term loan
Debt
Total debt	$ 15,000	$ 20,000

Debt - Senior Credit Agreement

Debt - Senior Credit Agreement (Details) $ in Millions	Sep. 29, 2016USD ($)
Senior ABL Credit Facility | Federal Funds Rate
Debt
Spread on variable rate basis (as a percent)	0.50%
Senior ABL Credit Facility | Eurodollar Rate
Debt
Spread on variable rate basis (as a percent)	1.00%
Senior ABL Credit Facility | Senior Secured Revolving Loan
Debt
Percentage of eligible accounts receivable for determining borrowing base	85.00%
Percentage of eligible inventory for determining borrowing base	65.00%
Percentage of net orderly liquidation value of eligible inventory for determining borrowing base	85.00%
Maximum amount added to borrowing base formula	$ 4.2
Senior ABL Credit Facility | Base Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	2.50%
Senior ABL Credit Facility | Base Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Minimum
Debt
Spread on variable rate basis (as a percent)	1.25%
Senior ABL Credit Facility | Base Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Maximum
Debt
Spread on variable rate basis (as a percent)	1.75%
Senior ABL Credit Facility | Base Rate Loans | Senior secured term loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	2.50%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	3.50%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Minimum
Debt
Spread on variable rate basis (as a percent)	2.25%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Maximum
Debt
Spread on variable rate basis (as a percent)	2.75%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior secured term loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	3.50%
Senior Secured Revolving Loan
Debt
Maximum borrowing capacity	$ 25
Commitment fees (as a percent)	0.375%
Extension of maturity of debt if certain conditions are met	5 years
Term Loan
Debt
Loan amount	$ 17.5
Extension of maturity of debt if certain conditions are met	10 years
Amended & Restated Credit Agreement
Debt
Write-off of deferred financing fees	$ 0.7

Debt - Subordinated Term Loan (

Debt - Subordinated Term Loan (Details) - Subordinated term loan - McLarty - Lender indirectly related to an officer and director - USD ($) $ in Millions	Mar. 27, 2016	Nov. 10, 2014
Debt
Loan amount		$ 20
Maturity term		5 years
Interest rate (as a percent)		11.00%
Interest rate increase upon an event of default (as a percent)		2.00%
Federal and state taxes excluded from fixed charge coverage ratio	$ 1.3

Debt - Loan Contract (Details)

Debt - Loan Contract (Details) $ in Thousands	Mar. 31, 2016EUR (€)	Mar. 31, 2016USD ($)	Mar. 23, 2016EUR (€)	Apr. 02, 2017USD ($)	Mar. 27, 2016USD ($)
Debt
Proceeds from debt issuance | $				$ 91,264	$ 1,000
AFT Hungary | Loan Contract | Erste Bank Hungary
Debt
Loan amount			€ 4,000,000
Proceeds from debt issuance	€ 4,000,000
Interest rate (as a percent)			0.98%
Semi-annual payment of debt			€ 400,000
Frequency of payments			semi-annual
AFT Hungary | Loan Contract | Erste Bank Hungary | Amended & Restated Credit Agreement
Debt
Repayment of debt obligations | $		$ 3,000

Debt - Future Debt Payments (De

Debt - Future Debt Payments (Details) - USD ($) $ in Thousands	Apr. 02, 2017	Jun. 30, 2016
Future debt payments:
2017 (1)	$ 292
2,018	1,731
2,019	1,731
2,020	16,730
2,021	25,171
Total	$ 45,655	$ 53,766

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	9 Months Ended
	Apr. 02, 2017	Jun. 30, 2016
Income tax receivable
Income tax receivable	$ 0.5	$ 1.6
Other Long-term Liabilities
Income tax receivable
Uncertain tax positions	1.1	$ 1
Federal
Income tax receivable
Income tax refund	$ 0.9

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	1 Months Ended		3 Months Ended		9 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016
Earnings per share
Potentially dilutive stock options			466,119	253,718	332,031	253,718
ATC and Kecy
Earnings per share
Number of shares issued in acquisitions, held in escrow and excluded from earnings per share calculations					905,414
Advance Tooling Concepts
Earnings per share
Number of shares returned and retired		233,788
Kecy
Earnings per share
Number of shares returned and retired	671,626

Share-Based Compensation and 48

Share-Based Compensation and Employee Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 30, 2015	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016	Nov. 30, 2016
Stock option activity rollforward
Outstanding as of June 30, 2016				759,050
Granted				1,065,030
Forfeited				(7,125)
Outstanding as of April 2, 2017		1,816,955		1,816,955
Vested and exercisable as of April 2, 2017		451,754		451,754
Vested and expected to vest as of April 2, 2017		1,603,891		1,603,891
Weighted average exercise price rollforward
Outstanding as of June 30, 2016				$ 1.51
Granted				4.06
Forfeited				1.51
Outstanding as of April 2, 2017		$ 3		3
Vested and exercisable as of April 2, 2017		1.90		1.90
Vested and expected to vest as of April 2, 2017		$ 2.97		$ 2.97
Weighted Average Remaining Contractual Term (in years)
Outstanding				7 years 9 months 22 days
Vested and exercisable as of April 2, 2017				6 years 11 days
Vested and expected to vest as of April 2, 2017				7 years 9 months
Weighted average grant date fair value (in USD per share)				$ 2.17
Total fair value of shares vested				$ 1,000
Fair Value
Expected volatility - minimum				78.80%
Expected volatility - maximum				85.00%
Expected dividend yield				0.00%
Risk-free interest rate - minimum				1.02%
Risk-free interest rate - maximum				2.41%
Share-Based Compensation Expense
Compensation expense				$ 616	$ 138
Unrecognized compensation cost		$ 1,900		$ 1,900
Weighted-average period that cost is expected to be recognized				1 year 9 months 18 days
Selling, general and administrative costs
Share-Based Compensation Expense
Compensation expense		$ 200	$ 100
Minimum
Weighted Average Remaining Contractual Term (in years)
Term				7 years
Fair Value
Expected term				3 years 6 months
Maximum
Weighted Average Remaining Contractual Term (in years)
Term				10 years
Fair Value
Expected term				4 years 9 months
Employee Stock Purchase Plan
Stock-based compensation
Maximum percentage of base compensation contributed to ESPP for stock purchase				10.00%
Purchase price as percentage of fair market value of common stock on the last business day of the six-month purchase period				85.00%
Purchase period				6 months
Shares reserved for issuance under equity incentive plan		750,000		750,000
Issuance of common stock under employee stock purchase plan (in shares)		47,734
Purchase price (per share)		$ 2.05		$ 2.05
Grant-date fair value (per share)		$ 2.42
Shares available for future grants		702,266		702,266
2015 Equity Incentive Plan
Stock-based compensation
Shares reserved for issuance under equity incentive plan	950,000
Shares available for future grants		7,125		7,125
Performance period for an award subject to performance measures	5 years
Years after adoption when plan will terminate	10 years
2016 Equity Incentive Plan
Stock-based compensation
Shares reserved for issuance under equity incentive plan						950,000
Shares available for future grants		75,920		75,920
2016 Equity Incentive Plan | Market-based Vesting
Stock option activity rollforward
Granted		874,080

Commitments and Contingencies -

Commitments and Contingencies - Interest Rates (Details) $ in Millions	Apr. 02, 2017USD ($)
Commitments and contingencies
Insurance claim receivable	$ 0.4
Capital lease agreements | Minimum
Commitments and contingencies
Interest rate (as a percent)	3.00%
Capital lease agreements | Maximum
Commitments and contingencies
Interest rate (as a percent)	4.60%

Segment Information - Summarize

Segment Information - Summarized (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 02, 2017USD ($)	Mar. 27, 2016USD ($)	Apr. 02, 2017USD ($)segment	Mar. 27, 2016USD ($)
Segment information
Reportable business segments | segment			4
Sales	$ 25,472	$ 24,885	$ 80,498	$ 72,353
Operating costs	26,195	23,358	78,882	69,145
Segment operating (loss) income	(1,884)	327	(1,930)	429
Interest expense, net	(865)	(1,106)	(3,002)	(3,372)
Loss on extinguishment of debt			(723)
Other income (expense) , net	88	(23)	893	71
Non-operating expense	(777)	(1,129)	(2,832)	(3,301)
Loss before income taxes	(2,661)	(802)	(4,762)	(2,872)
Corporate
Segment information
Segment operating (loss) income	(1,161)	(1,200)	(3,546)	(2,779)
Precision Components Group | Total segments
Segment information
Sales	19,878	17,443	59,252	51,626
Operating costs	19,801	15,697	55,741	48,284
Segment operating (loss) income	77	1,746	3,511	3,342
3DMT Group | Total segments
Segment information
Sales	4,292	5,701	17,242	15,905
Operating costs	5,132	6,142	19,438	16,643
Segment operating (loss) income	(840)	(441)	(2,196)	(738)
Flanges and Fittings Group | Total segments
Segment information
Sales	1,272	1,244	3,576	3,565
Operating costs	1,143	1,115	3,158	3,187
Segment operating (loss) income	129	129	418	378
Wireless Group | Total segments
Segment information
Sales	30	497	428	1,257
Operating costs	119	404	545	1,031
Segment operating (loss) income	$ (89)	$ 93	$ (117)	$ 226

Significant Customers (Details)

Significant Customers (Details) - Customers	3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 02, 2017	Mar. 27, 2016	Apr. 02, 2017	Mar. 27, 2016	Jun. 30, 2016
Sales
Significant customers
Concentration percentage	40.00%	44.50%	44.20%	41.60%
Receivables
Significant customers
Concentration percentage			14.70%		32.30%
Receivables | Customer 1
Significant customers
Concentration percentage			14.70%		10.50%
Receivables | Customer 2
Significant customers
Concentration percentage					8.30%
Receivables | Customer 3
Significant customers
Concentration percentage					8.30%
Receivables | Customer 4
Significant customers
Concentration percentage					5.20%
Precision Components Group | Sales | Customer 1
Significant customers
Concentration percentage	14.20%	11.00%	12.70%	9.80%
Precision Components Group | Sales | Customer 3
Significant customers
Concentration percentage	5.70%	7.90%	7.10%	7.70%
Precision Components Group | Sales | Customer 4
Significant customers
Concentration percentage	6.00%	8.60%	6.30%	8.90%
Precision Components Group | Sales | Customer 5
Significant customers
Concentration percentage	6.00%	5.80%	6.20%	5.90%
3DMT Group | Sales | Customer 2
Significant customers
Concentration percentage	8.10%	11.20%	11.90%	9.30%