Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Feb. 29, 2016 | Mar. 31, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | CHASE CORP | |
Entity Central Index Key | 830,524 | |
Document Type | 10-Q | |
Document Period End Date | Feb. 29, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,244,052 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 29, 2016 | Aug. 31, 2015 |
Current Assets: | ||
Cash & cash equivalents | $ 51,708 | $ 43,819 |
Accounts receivable, less allowance for doubtful accounts of $551 and $705 | 32,918 | 39,488 |
Inventories | 27,539 | 29,476 |
Prepaid expenses and other current assets | 2,620 | 2,174 |
Due from sale of business | 457 | |
Assets held for sale | 604 | 1,089 |
Deferred income taxes | 2,255 | 2,255 |
Total current assets | 118,101 | 118,301 |
Property, plant and equipment, net | 37,397 | 40,921 |
Other Assets: | ||
Goodwill | 43,668 | 44,123 |
Intangible assets, less accumulated amortization of $31,773 and $28,882 | 40,662 | 44,852 |
Cash surrender value of life insurance | 7,140 | 7,133 |
Restricted investments | 1,421 | 1,410 |
Funded pension plan | 708 | 634 |
Deferred income taxes | 365 | 390 |
Other assets | 338 | 133 |
Total assets | 249,800 | 257,897 |
Current Liabilities: | ||
Current portion of long-term debt | 8,400 | 8,400 |
Accounts payable | 11,739 | 15,599 |
Accrued payroll and other compensation | 3,842 | 6,286 |
Accrued expenses | 3,945 | 4,448 |
Accrued income taxes | 449 | 2,783 |
Total current liabilities | 28,375 | 37,516 |
Long-term debt, less current portion | 39,200 | 43,400 |
Deferred compensation | 2,196 | 2,230 |
Accumulated pension obligation | 13,067 | 12,901 |
Other liabilities | 77 | 85 |
Accrued income taxes | 1,249 | 1,249 |
Deferred income taxes | $ 6,187 | $ 6,174 |
Commitments and Contingencies (Note 10) | ||
Equity: | ||
Common stock, $0.10 par value: Authorized 20,000,000 shares; 9,244,052 shares at February 29, 2016 and 9,191,958 shares at August 31, 2015 issued and outstanding | $ 924 | $ 919 |
Additional paid-in capital | 14,898 | 14,296 |
Accumulated other comprehensive loss | (11,908) | (7,986) |
Retained earnings | 155,535 | 147,113 |
Total equity | 159,449 | 154,342 |
Total liabilities and equity | $ 249,800 | $ 257,897 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Feb. 29, 2016 | Aug. 31, 2015 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 551 | $ 705 |
Intangible assets, accumulated amortization (in dollars) | $ 31,724 | $ 28,882 |
First Serial Preferred Stock, par value (in dollars per share) | $ 1 | $ 1 |
First Serial Preferred Stock, Authorized shares | 100,000 | 100,000 |
First Serial Preferred Stock, issued shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, Authorized shares | 20,000,000 | 20,000,000 |
Common stock, shares issued | 9,244,052 | 9,191,958 |
Common stock, shares outstanding | 9,244,052 | 9,191,958 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Revenue | ||||
Sales | $ 53,706 | $ 51,380 | $ 110,452 | $ 106,670 |
Royalties and commissions | 1,218 | 924 | 1,950 | 1,567 |
Total revenues | 54,924 | 52,304 | 112,402 | 108,237 |
Costs and Expenses | ||||
Cost of products and services sold | 34,895 | 34,235 | 69,612 | 68,715 |
Selling, general and administrative expenses | 10,226 | 11,340 | 21,736 | 22,135 |
Exit costs related to idle facility (Note 15) | 209 | 209 | ||
Write-down of certain assets under construction (Note 8) | 365 | |||
Acquisition related costs (Note 14) | 584 | 584 | ||
Operating income | 9,594 | 6,145 | 20,480 | 16,803 |
Interest expense | (260) | (270) | (510) | (544) |
Gain on sale of business (Note 8) | 1,031 | |||
Other (expense) income | 1,419 | 381 | 1,388 | 766 |
Income before income taxes | 10,753 | 6,256 | 22,389 | 17,025 |
Income taxes | 3,781 | 2,190 | 7,968 | 5,959 |
Net income | 6,972 | 4,066 | 14,421 | 11,066 |
Add: net gain attributable to non-controlling interest | (95) | |||
Net income attributable to Chase Corporation | $ 6,972 | $ 4,066 | $ 14,421 | $ 10,971 |
Net income available to common shareholders, per common and common equivalent share | ||||
Basic (in dollars per share) | $ 0.75 | $ 0.45 | $ 1.56 | $ 1.20 |
Diluted (in dollars per share) | $ 0.74 | $ 0.44 | $ 1.54 | $ 1.18 |
Weighted average shares outstanding | ||||
Basic (in shares) | 9,155,365 | 9,065,511 | 9,148,493 | 9,057,738 |
Diluted (in shares) | 9,292,224 | 9,224,985 | 9,287,486 | 9,213,431 |
Annual cash dividends declared per share | $ 0.65 | $ 0.60 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 6,972 | $ 4,066 | $ 14,421 | $ 11,066 |
Other comprehensive income: | ||||
Net unrealized gain on restricted investments, net of tax | (127) | (20) | (99) | (8) |
Change in funded status of pension plans, net of tax | 93 | 109 | 187 | 219 |
Foreign currency translation adjustment | (2,995) | (818) | (4,010) | (2,909) |
Total other comprehensive income (loss) | (3,029) | (729) | (3,922) | (2,698) |
Comprehensive income | 3,943 | 3,337 | 10,499 | 8,368 |
Comprehensive gain attributable to non-controlling interest | (95) | |||
Comprehensive income attributable to Chase Corporation | $ 3,943 | $ 3,337 | $ 10,499 | $ 8,273 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - 6 months ended Feb. 29, 2016 - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (loss) | Retained Earnings | Total |
Balance at Aug. 31, 2015 | $ 919 | $ 14,296 | $ (7,986) | $ 147,113 | $ 154,342 |
Balance (in shares) at Aug. 31, 2015 | 9,191,958 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Restricted stock grants, net of forfeitures | $ 3 | (3) | |||
Restricted stock grants, net of forfeitures (in shares) | 29,884 | ||||
Amortization of restricted stock grants | 472 | 472 | |||
Amortization of stock option grants | 140 | 140 | |||
Exercise of stock options | $ 4 | 633 | 637 | ||
Exercise of stock options (in shares) | 40,608 | ||||
Common stock received for payment of stock option exercises | $ (1) | (512) | (513) | ||
Common stock received for payment of stock option exercises (in shares) | (10,455) | ||||
Cash dividend accrued, $0.65 per share | (5,999) | (5,999) | |||
Increase in Minimum Pension Liability, net of tax $102 | 187 | 187 | |||
Foreign currency translation adjustment | (4,010) | (4,010) | |||
Net unrealized gain on restricted investments, net of tax $51 | (99) | (99) | |||
Net income | 14,421 | 14,421 | |||
Balance at Feb. 29, 2016 | $ 924 | 14,898 | $ (11,908) | $ 155,535 | 159,449 |
Balance (in shares) at Feb. 29, 2016 | 9,244,052 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Excess tax benefit (expense) from stock based compensation | 274 | 274 | |||
Common stock retained to pay statutory minimum withholding taxes on common stock | $ (1) | $ (402) | $ (403) | ||
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares) | (7,943) |
CONSOLIDATED STATEMENTS OF EQU7
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) $ in Thousands | 6 Months Ended |
Feb. 29, 2016USD ($)$ / shares | |
CONSOLIDATED STATEMENT OF EQUITY | |
Annual cash dividends declared per share | $ / shares | $ 0.65 |
Increase in Minimum pension liability, tax | $ 102 |
Net unrealized gain on restricted investments, tax | $ 52 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 29, 2016 | Feb. 28, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 14,421 | $ 11,066 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Loss on write-down of certain assets under contruction | 365 | |
Gain on sale of business | (1,031) | |
Depreciation | 2,864 | 2,812 |
Amortization | 3,836 | 2,884 |
Cost of sale of inventory step-up | 49 | |
Provision for allowance for doubtful accounts | (136) | 64 |
Stock based compensation | 612 | 537 |
Realized gain on restricted investments | (63) | (75) |
Decrease in cash surrender value life insurance | 90 | 90 |
Excess tax expense from stock based compensation | (274) | (730) |
Net cash provided by operating activities | 19,643 | 7,789 |
Increase (decrease) from changes in assets and liabilities | ||
Accounts receivable | 5,877 | (144) |
Inventories | 1,570 | (1,617) |
Prepaid expenses & other assets | (488) | (163) |
Accounts payable | (3,596) | (1,216) |
Accrued compensation and other expenses | (2,477) | (3,824) |
Accrued income taxes | (1,893) | (2,029) |
Deferred compensation | (34) | 85 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (734) | (1,142) |
Cost to acquire intangible assets | 15 | (10) |
Contingent purchase price paid for acquisition | (33,285) | |
Net proceeds from sale of business | 1,500 | |
Increase in restricted investments | (102) | (58) |
Payments for cash surrender value life insurance | (92) | (92) |
Net cash provided by (used in) investing activities | 587 | (34,587) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings on long-term debt | 2,000 | |
Payments of principal on debt | (4,200) | (3,500) |
Dividend paid | (5,999) | (5,477) |
Proceeds from exercise of common stock options | 124 | |
Payments of statutory minimum taxes on stock options and restricted stock | (403) | (1,182) |
Excess tax benefit from stock based compensation | 274 | 730 |
Payment for acquisition of non-controlling interest | (500) | |
Net cash used in financing activities | (10,204) | (7,929) |
INCREASE IN CASH & CASH EQUIVALENTS | 10,026 | (34,727) |
Effect of foreign exchange rates on cash | (2,137) | (1,089) |
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD | 43,819 | 53,222 |
CASH & CASH EQUIVALENTS, END OF PERIOD | 51,708 | 17,406 |
Non-cash Investing and Financing Activities | ||
Common stock received for payment of stock option exercises | 513 | 1,767 |
Property, plant & equipment additions included in accounts payable | $ 6 | $ 23 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Feb. 29, 2016 | |
Basis of Presentation | |
Basis of Presentation | Note 1 - Basis of Presentatio n The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Therefore, they do not include all information and footnote disclosure necessary for a complete presentation of Chase Corporation’s financial position, results of operations and cash flows, in conformity with generally accepted accounting principles. Chase Corporation (the “Company,” “Chase,” “we,” or “us”) filed audited consolidated financial statements, which included all information and notes necessary for such complete presentation for the three years ended August 31, 2015 in conjunction with its 2015 Annual Report on Form 10-K. Certain immaterial reclassifications have been made to the prior year amounts to conform to the current year’s presentation. The results of operations for the interim period ended February 29, 2016 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended August 31, 2015, which are contained in the Company’s 2015 Annual Report on Form 10-K. The accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring items) which are, in the opinion of management, necessary for a fair statement of the Company’s financial position as of February 29, 2016, the results of its operations, comprehensive income and cash flows for the interim periods ended February 29, 2016 and February 28, 2015, and changes in equity for the interim period ended February 29, 2016. The financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company uses the US dollar as the reporting currency for financial reporting. The financial position and results of operations of the Company’s UK-based operations are measured using the UK pound sterling as the functional currency. The financial position and results of operations of the Company’s operations based in France are measured using the euro as the functional currency. The functional currency for all of our other operations is the US dollar. Foreign currency translation gains and losses are determined using current exchange rates for monetary items and historical exchange rates for other balance sheet items, and are recorded as a change in other comprehensive income. Transaction gains and losses generated from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of our foreign operations are included in other income / (expense) on the consolidated statements of operations. On January 30, 2015, the Company acquired two product lines from Henkel Corporation (the “Seller”) for a purchase price of $33,285 , excluding any acquisition-related costs. As part of this transaction, Chase acquired the Seller’s microspheres product line, sold under the Dualite ® brand, located in Greenville, SC, and obtained exclusive distribution rights and intellectual property related to the Seller’s polyurethane dispersions product line, operating in the Elgin, IL location. We refer to these collectively as our specialty chemical intermediates product line. Under the agreement, Chase entered into a ten -year facility operating lease at the Seller’s Greenville, SC location. The Seller will perform certain manufacturing and application services for Chase at the Seller’s Elgin, IL location for three years following the acquisition. The purchase was funded entirely with available cash on hand. Since the effective date for this acquisition, the financial results of the specialty chemical intermediates product line have been included in the Company's financial statements within the Company’s Industrial Materials operating segment. Purchase accounting was completed in the quarter ended May 31, 2015 (third quarter of fiscal 2015) with no material adjustments made to the initial amounts recorded at the end of the second quarter of fiscal 2015. See Note 14 to the Condensed Consolidated Financial Statements for additional information on the acquisition of the specialty chemical intermediates product line. On October 31, 2014, the Company purchased the 50% non-controlling membership interest of NEPTCO JV LLC (the "JV") owned by its now-former joint venture partner, an otherwise unrelated party. Because of the Company's controlling financial interest, the JV's assets, liabilities and results of operations have been consolidated within the Company's consolidated financial statements since June 27, 2012, the date the Company acquired NEPTCO. The Company continues to fully consolidate the assets, liabilities and results of operations of the JV, but no longer records an offsetting amount for a non-controlling interest subsequent to October 31, 2014. The $95 recorded in the condensed consolidated statement of operations as net income attributable to non-controlling interest for the six month period ended February 28, 2015, represents the now-former joint venture partner’s share of the results of operations of the JV for the period from September 1, 2014 through October 31, 2014. |
Recent Accounting Policies
Recent Accounting Policies | 6 Months Ended |
Feb. 29, 2016 | |
Recent Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 — Recent Accounting Policies Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which will replace most of the existing revenue recognition guidance under U.S. Generally Accepted Accounting Principles. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The ASU will be effective for the Company beginning September 1, 2018 (fiscal 2019), including interim periods in its fiscal year 2019, and allows for either retrospective or modified retrospective methods of adoption. The Company is in the process of determining the method of adoption and assessing the impact of this ASU on the Company’s consolidated financial position, results of operations and cash flows. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value, and other options that currently exist for market value will be eliminated. ASU No. 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. This accounting guidance is effective for us in the first quarter of fiscal 2018. Early adoption is permitted. We are currently evaluating the impact of the adoption of this accounting standard update on our consolidated financial position, results of operations and cash flows. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes – Balance Sheet Classification of Deferred Taxes.” The purpose of the standard is to simplify the presentation of deferred taxes on a classified balance sheet. Under current GAAP, deferred income tax assets and liabilities are separated into current and noncurrent amounts in the balance sheet. The amendments in ASU 2015-17 require that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. The ASU will be effective for the Company beginning September 1, 2017 (fiscal 2018), including interim periods in its fiscal year 2018, but with early adoption permitted. The Company does not expect the adoption of ASU 2015-17 to have a material impact on its financial statements or presentation. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Changes were made to align lessor accounting with the lessee accounting model and ASU No. 2014-09, “Revenue from Contracts with Customers.” The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The ASU will be effective for the Company beginning September 1, 2019 (fiscal 2020). Early application is permitted for all public business entities upon issuance. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees may not apply a full retrospective transition approach. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial position, results of operations and cash flows. |
Inventories
Inventories | 6 Months Ended |
Feb. 29, 2016 | |
Inventories | |
Inventories | Note 3 — Inventories Inventories consist of the following as of February 29, 2016 and August 31, 2015: February 29, 2016 August 31, 2015 Raw materials $ $ Work in process Finished goods Total Inventories $ $ |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Feb. 29, 2016 | |
Net Income Per Share | |
Net Income Per Share | Note 4 — Net Income Per Share The Company has unvested share-based payment awards with a right to receive non-forfeitable dividends which are considered participating securities under ASC Topic 260, “Earnings Per Share.” The Company allocates earnings to participating securities and computes earnings per share using the two class method. The determination of earnings per share under the two class method is as follows: Three Months Ended Six Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Basic Earnings per Share Net income attributable to Chase Corporation $ $ $ $ Less: Allocated to participating securities Net income available to common shareholders $ $ $ $ Basic weighted average shares outstanding Net income per share - Basic $ $ $ $ Diluted Earnings per Share Net income attributable to Chase Corporation $ $ $ $ Less: Allocated to participating securities Net income available to common shareholders $ $ $ $ Basic weighted average shares outstanding Additional dilutive common stock equivalents Diluted weighted average shares outstanding Net income per share - Diluted $ $ $ $ For the three and six months ended February 29, 2016, stock options to purchase 21,275 and 26,381 shares of common stock were outstanding, but were not included in the calculation of diluted income per share because their inclusion would be anti-dilutive. For the three and six months ended February 28, 2015, stock options to purchase 22,750 and 27,863 shares of common stock were outstanding, but were not included in the calculation of diluted income per share because their inclusion would be anti-dilutive. Included in the calculation of dilutive common stock equivalents are the unvested portion of restricted stock and stock options. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Feb. 29, 2016 | |
Stock Based Compensation | |
Stock Based Compensation | Note 5 — Stock-Based Compensation In August 2014, the Board of Directors of the Company approved the fiscal year 2015 Long Term Incentive Plan (“2015 LTIP”) for the executive officers and other members of management. The 2015 LTIP is an equity-based plan with a grant date of September 1, 2014 and contains a performance and service-based restricted stock grant of 6,993 shares in the aggregate, subject to adjustment, with a vesting date of August 31, 2017. Based on the fiscal year 2015 financial results, 5,685 additional shares of restricted stock (total of 12,678 shares) were earned and granted subsequent to the end of fiscal year 2015 in accordance with the performance measurement criteria. No further performance-based measurements apply to this award. Compensation expense is being recognized on a ratable basis over the vesting period. In August 2015, the Board of Directors of the Company approved the fiscal year 2016 Long Term Incentive Plan (“2016 LTIP”) for the executive officers and other members of management. The 2016 LTIP is an equity-based plan with a grant date of September 1, 2015 and contains the following equity components: Restricted Shares — (a) a performance and service-based restricted stock grant of 6,962 shares in the aggregate, subject to adjustment based on fiscal 2016 results, with a vesting date of August 31, 2018. Compensation expense is recognized on a ratable basis over the vesting period based on quarterly probability assessments; (b) a time-based restricted stock grant of 7,683 shares in the aggregate, with a vesting date of August 31, 2018. Compensation expense is recognized on a ratable basis over the vesting period. Stock options — options to purchase 21,275 shares of common stock in the aggregate with an exercise price of $39.50 per share. The options will vest in three equal annual installments beginning on August 31, 2016 and ending on August 31, 2018. The options granted will expire on September 1, 2025. Compensation expense is recognized over the period of the award on an annual basis consistent with the vesting terms. During the first quarter of fiscal 2016, an additional grant of 5,000 restricted shares was issued to a non-executive member of management with a vesting date of October 20, 2020. Compensation expense is recognized on a ratable basis over the vesting period. In February 2016, as part of their standard compensation for board service, non-employee members of the Board of Directors received a total grant of 4,554 shares of restricted stock ($219 grant date value) for service for the period from January 31, 2016 through January 31, 2017. The shares of restricted stock will vest at the conclusion of this service period. Compensation is recognized on a ratable basis over the twelve month vesting period. |
Segment Data & Foreign Operatio
Segment Data & Foreign Operations | 6 Months Ended |
Feb. 29, 2016 | |
Segment Data & Foreign Operations | |
Segment Data & Foreign Operations | Note 6 — Segment Data & Foreign Operations The Company is organized into two operating segments, an Industrial Materials segment and a Construction Materials segment. The segments are distinguished by the nature of the products and how they are delivered to their respective markets. The Industrial Materials segment includes specified products that are used in, or integrated into, another company’s product, with demand typically dependent upon general economic conditions. Industrial Materials products include insulating and conducting materials for wire and cable manufacturers, moisture protective coatings for electronics, laminated durable papers, laminates for the packaging and industrial laminate markets, pulling and detection tapes used in the installation, measurement and location of fiber optic cables and water and natural gas lines, cover tapes essential to delivering semiconductor components via tape and reel packaging, and composite materials and elements. This segment also includes glass-based strength element products designed to allow fiber optic cables to withstand mechanical and environmental strain and stress and which we operated as a joint venture prior to October 31, 2014. Further, beginning January 30, 2015, the Industrial Materials segment includes microspheres, sold under the Dualite brand, and polyurethane dispersions, both obtained through acquisition, and included in the Company’s specialty chemical intermediates product line. The Construction Materials segment is composed of typically project-oriented product offerings that are primarily sold and used as “Chase” branded products. Construction Materials products include protective coatings for pipeline applications, coating and lining systems for use in liquid storage and containment applications, adhesives and sealants used in architectural and building envelope waterproofing applications, high-performance polymeric asphalt additives, and expansion and control joint systems for use in the transportation and architectural markets. The following tables summarize information about the Company’s reportable segments: Three Months Ended Six Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Revenue Industrial Materials $ $ $ $ Construction Materials Total $ $ $ $ Income before taxes Industrial Materials $ $ (b) $ (d) $ (b) Construction Materials Total for reportable segments Corporate and common costs (a) (c) (a) (c) Total $ $ $ $ Includes the following costs by segment: Industrial Materials Interest $ $ $ $ Depreciation Amortization Construction Materials Interest $ $ $ $ Depreciation Amortization (a) Includes Randolph, MA facility exit and demolition costs of $209 incurred during the period (b) Includes $49 of expenses related to inventory step-up in fair value related to the January 2015 acquisition of the specialty chemical intermediates product line (c) Includes $584 in expenses related to the January 2015 acquisition of the specialty chemical intermediates product line (d) Includes both a $1,031 gain on sale of our RodPack ® wind energy business contained within our structural composites product line and a $365 write-down on certain other structural composites assets based on usage constraints following the sale, both recognized in November 2015 The Company’s products are sold worldwide. For the quarters ended February 29, 2016 and February 28, 2015, sales from its operations located in the United Kingdom accounted for 11% and 14% of total Company revenue, respectively. In the current fiscal year-to-date period, sales from its operations located in the United Kingdom accounted for 10% of total Company revenue compared to 12% in the same period in fiscal 2015. No other foreign geographic area accounted for more than 10% of consolidated revenue for the three or six month periods ended February 29, 2016 and February 28, 2015. Total assets for the Company’s reportable segments as of February 29, 2016 and August 31, 2015: February 29, August 31, 2016 2015 Total assets Industrial Materials $ $ Construction Materials Total for reportable segments Corporate and common assets Total $ $ As of February 29, 2016 and August 31, 2015, the Company had long-lived assets (that provide future economic benefit beyond the current year or operating period, including buildings, equipment and leasehold improvements) of $ 3,423 and $3,947 , respectively, located in the United Kingdom. These balances exclude goodwill and intangibles of $7,047 and $8,266 , as of February 29, 2016 and August 31, 2015, respectively, associated with its operations in the United Kingdom. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Feb. 29, 2016 | |
Goodwill and Other Intangibles | |
Goodwill and Other Intangibles | Note 7 — Goodwill and Other Intangibles The changes in the carrying value of goodwill are as follows: Industrial Materials Construction Materials Consolidated Balance at August 31, 2015 $ $ $ Foreign currency translation adjustment Balance at February 29, 2016 $ $ $ The Company’s goodwill is allocated to each reporting unit based on the nature of the products manufactured by the respective business combinations that originally created the goodwill. The Company has identified ten reporting units within its two operating segments that are used to evaluate the possible impairment of goodwill. Goodwill impairment exists when the carrying value of goodwill exceeds its fair value. Assessments of possible impairment of goodwill are made when events or changes in circumstances indicate that the carrying value of the asset may not be recoverable through future operations. Additionally, testing for possible impairment of recorded goodwill and certain intangible asset balances is required annually. The amount and timing of any impairment charges based on these assessments require the estimation of future cash flows and the fair market value of the related assets based on management’s best estimates of certain key factors, including future selling prices and volumes; operating, raw material and energy costs; and various other projected operating and economic factors. When testing, fair values of the reporting units and the related implied fair values of their respective goodwill are established using public company analysis and discounted cash flows. The Company evaluates the possible impairment of goodwill annually each fourth quarter and whenever events or circumstances indicate the carrying value of goodwill may not be recoverable. Intangible assets subject to amortization consist of the following as of February 29, 2016 and August 31, 2015: Weighted-Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value February 29, 2016 Patents and agreements years $ $ $ Formulas and technology years Trade names years Customer lists and relationships years $ $ $ August 31, 2015 Patents and agreements years $ $ $ Formulas and technology years Trade names years Customer lists and relationships years $ $ $ Aggregate amortization expense related to intangible assets for the six months ended February 29, 2016 and February 28, 2015 was $ 3,836 and $2,884 , respectively. Estimated amortization expense for the remainder of fiscal year 2016 and for the next five years is as follows: Years ending August 31, 2016 (remaining 6 months) $ 2017 2018 2019 2020 2021 |
Sale of RodPack Business
Sale of RodPack Business | 6 Months Ended |
Feb. 29, 2016 | |
Sale of RodPack Business | |
Sale of RodPack Business | Note 8 — Sale of RodPack Business In November 2015 (the first quarter of fiscal 2016), the Company sold its RodPack wind energy business, contained within its structural composites product line, to an otherwise unrelated party (“Buyer”) for proceeds of $2,186 . The Company’s structural composites product line is a part of the Company’s Industrial Materials segment. The Company is not restricted in its use of the net proceeds from the sale. At August 31, 2015, the related RodPack assets were recorded as assets held for sale on the consolidated balance sheet. The following table summarizes information about the RodPack assets sold as of November 10, 2015 (the date of the sale) and August 31, 2015: November 10, 2015 August 31, 2015 RodPack - Property, plant and equipment $ $ RodPack - Patents and other intangible assets Total $ $ The sale resulted in a pre-tax book gain of $1,03 1 (approximately $ 6 60 after-tax gain), which was recorded within the consolidated statement of operations as gain on sale of business in the six month period ended February 29, 2016. The Company received $1,500 of the proceeds in the first quarter of fiscal 2016 and will receive the remaining balance in three equal installments of $229 at six month intervals, with the final payment due 18 months after the date of the sale. The $457 current portion of the amount due has been recorded as a current asset (Due from sale of business) as of February 29, 2016, while the portion due 18 months from the sale has been included in other long-term assets. The payment of these owed amounts is not subject to any further contingency or deliverable. Further, the Company will provide ongoing development support to the Buyer for which it will receive additional consideration upon the completion of services. The sale of this business prompted the Company to perform a review of other long-lived assets within the structural composites product line, as the sale of the related intangible assets resulted in a limitation of the Company’s capacity to sell certain other goods produced by the product line. This review resulted in the identification of construction in progress assets with a net book value of $365 , whi ch the Company fully wrote down . This charge was recorded within the condensed consolidated statement of operations as write-down of certain assets under construction during the first quarter of fiscal 2016. |
Joint Venture
Joint Venture | 6 Months Ended |
Feb. 29, 2016 | |
Joint Venture | |
Joint Venture | Note 9 — Joint Venture On October 31, 2014, the Company purchased the 50% non-controlling membership interest of NEPTCO JV LLC (the “JV”) that had been owned by its joint venture partner, an otherwise unrelated party. The purchase consideration is subject to certain contingent adjustments based on certain future events related to the JV. The purchase price, including these contingent adjustments, was not, nor will be, material to the Company. Because of the Company’s controlling financial interest, the JV’s assets, liabilities, and results of operations have been consolidated within the Company’s consolidated financial statements since June 27, 2012, the date the Company acquired NEPTCO. The Company continues to fully consolidate the assets, liabilities and results of operations of the JV, but no longer records an offsetting amount for a non-controlling interest. The $95 recorded in the consolidated statement of operations as net income attributable to non-controlling interest for the six months ended February 28, 2015, represents the now-former joint venture partner’s share of the results of operations of the JV for the period from September 1, 2014 through October 31, 2014. The Company accounted for the joint venture partner’s non-controlling interest in the JV under ASC Topic 810 “Consolidations” (“ASC 810”). Based on the criteria in ASC 810, the Company had determined that the JV qualified as a variable interest entity (“VIE”). Under the JV agreement, which terminated with the Company’s October 2014 acquisition of the 50% outstanding non-controlling membership interest in the JV, the JV had agreed to purchase a minimum of 80% of its total glass fiber requirements from the now-former joint venture partner. Additionally, the JV had agreed to purchase private-label products exclusively from an affiliate of the now-former joint venture partner; however, the JV was not subject to a minimum purchase requirement on private-label products. Purchases from the now-former joint venture partner totaled $332 for the period from September 1, 2014 through October 31, 2014. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 29, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 10 — Commitments and Contingencies The Company is involved from time to time in litigation incidental to the conduct of its business. Although the Company does not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition, results of operations or cash flows, litigation is inherently unpredictable. Therefore, judgments could be rendered or settlements entered, that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best forecast of the ultimate loss in situations where the Company assesses the likelihood of loss as probable. |
Pensions and Other Post Retirem
Pensions and Other Post Retirement Benefits | 6 Months Ended |
Feb. 29, 2016 | |
Pensions and Other Post Retirement Benefits | |
Pensions and Other Post Retirement Benefits | Note 11 — Pensions and Other Post-Retirement Benefits The components of net periodic benefit cost for the three and six months ended February 29, 2016 and February 28, 2015 are as follows: Three Months Ended Six Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Components of net periodic benefit cost Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of prior service cost Amortization of accumulated loss Net periodic benefit cost $ $ $ $ When funding is required, the Company’s policy is to contribute amounts that are deductible for federal income tax purposes. As of February 29, 2016, the Company has made contributions of $154 in the current fiscal year to fund its obligations under its pension plans, and plans to make the necessary contributions over the remainder of fiscal 2016 to ensure the qualified plan continues to be adequately funded given the current market conditions. The Company made contributions of $1 15 in the first six months of the prior year. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Feb. 29, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | Note 12 — Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company utilizes the best available information in measuring fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The financial assets classified as Level 1 and Level 2 as of February 29, 2016 and August 31, 2015 represent investments that are restricted for use in a nonqualified retirement savings plan for certain key employees and directors. The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of February 29, 2016 and August 31, 2015: Fair value measurement category Quoted prices Significant other Significant Fair value in active markets observable inputs unobservable inputs measurement date Total (Level 1) (Level 2) (Level 3) Assets: Restricted investments February 29, 2016 $ $ — Restricted investments August 31, 2015 $ $ — The following table presents the fair value of the Company’s long-term debt as of February 29, 2016 and August 31, 2015, which is recorded at its carrying value: Fair value measurement category Quoted prices Significant other Significant Fair value in active markets observable inputs unobservable inputs measurement date Total (Level 1) (Level 2) (Level 3) Liabilities: Long-term debt February 29, 2016 $ $ — — Long-term debt August 31, 2015 $ $ — — The carrying value of the long-term debt approximates its fair value, as the monthly interest rate is set based on the movement of the underlying market rates. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Feb. 29, 2016 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | Note 13 — Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income (loss), net of tax, were as follows: Change in Funded Foreign Currency Restricted Status of Translation Investments Pension Plan Adjustment Total Balance at August 31, 2015 $ $ $ $ Other comprehensive gains (losses) before reclassifications (1) — Reclassifications to net income of previously deferred (gains) losses (2) — Other comprehensive income (loss) Balance at February 29, 2016 $ $ $ $ (1) Net of tax expense of $ 30 , $0 , $0 , respectively. (2) Net of tax expense of $2 2 , tax benefit of $ 102 , $0 , respectively. The following table summarizes the reclassifications from accumulated other comprehensive income (loss) to the unaudited condensed consolidated statements of income: Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Three Months Ended Six Months Ended Location of Gain (Loss) Reclassified from Accumulated February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized gain on sale of restricted investments $ $ $ $ Selling, general and administrative expenses Tax expense (benefit) Gain net of tax $ $ $ $ Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ $ $ $ Cost of products and services sold Amortization of prior pension service costs and unrecognized losses $ $ Selling, general and administrative expenses Tax expense (benefit) Loss net of tax $ $ $ $ Total net loss reclassified for the period $ $ $ $ Note: Gains on Restricted Investments and losses on funded pension plan adjustments may not sum for the quarter end or year-to-date period due to rounding. |
Acquisition of Specialty Chemic
Acquisition of Specialty Chemical Intermediates Product Lines | 6 Months Ended |
Feb. 29, 2016 | |
Acquisition of Specialty Chemical Intermediates Product Lines | |
Acquisition of Specialty Chemical Intermediates Product Lines | Note 14 — Acquisition of Specialty Chemical Intermediates Product Line On January 30, 2015, the Company acquired two product lines from Henkel Corporation (the “Seller”) for a purchase price of $33,285, after working capital adjustments and excluding any acquisition-related costs. As part of this transaction, Chase acquired the Seller’s microspheres product line, sold under the Dualite brand, located in Greenville, SC, and obtained exclusive distribution rights and intellectual property related to the Seller’s polyurethane dispersions product line, operating in the Elgin, IL location. Under the agreement, Chase entered into a ten -year facility operating lease at the Seller’s Greenville, SC location. The Seller will perform certain manufacturing and application services for Chase at the Seller’s Elgin, IL location for three years. The purchase was funded entirely with available cash on hand. Since the effective date for this acquisition, January 30, 2015, the financial results of the specialty chemical intermediates product line have been included in the Company’s financial statements within the Industrial Materials operating segment. The acquisition was accounted for as a business combination under ASC Topic 805, “Business Combinations.” In accordance with this accounting standard, the Company expensed $584 of acquisition-related costs during both the three and six month periods ended February 28, 2015 to acquisition-related costs. Purchase accounting was completed in the quarter ended May 31, 2015 (third quarter of fiscal 2015) with no material adjustments made to the initial amounts recorded at the end of the second fiscal quarter. The purchase price has been allocated to the acquired tangible and identifiable intangible assets assumed, based on their fair values as of the date of the acquisition: Assets & Liabilities Amount Inventory $ Property, plant & equipment Goodwill Intangible assets Total purchase price $ The excess of the purchase price over the net tangible and intangible assets acquired resulted in goodwill of $6,371 that is largely attributable to the synergies and economies of scale from combining the operations and technologies of Chase and the two product lines, particularly as it pertains to the expansion of the Company's product and service offerings, the established workforce, and marketing efforts. This goodwill is not deductible for income tax purposes. All assets, including goodwill, acquired as part of the specialty chemical intermediates product line are included in the Industrial Materials operating segment. Identifiable intangible assets purchased with this transaction are as follows: Intangible Asset Amount Useful life Customer relationships $ years Technology years Trade name years Backlog months Total intangible assets $ Supplemental Pro Forma Data The following table presents the pro forma results of the Company for the three and six month periods ended February 28, 2015 as though the specialty chemical intermediates product line acquisition described above occurred on September 1, 2013 (the first day of fiscal 2014). The actual revenue and expenses for the specialty chemical intermediates product line acquisition are included in the Company’s fiscal 2016 and 2015 consolidated results beginning on January 30, 2015. The pro forma results include adjustments for the estimated amortization of intangibles, acquisition-related costs, sale of inventory step-up cost and the income tax impact of the pro forma adjustments at the statutory rate of 35% . The following pro forma information is not necessarily indicative of the results that would have been achieved if the acquisition had been effective on September 1, 2013 (the first day of fiscal 2014). Three Months Ended Six Months Ended February 28, 2015 February 28, 2015 Revenue $ $ Net income Net income attributable to Chase Corporation Net income available to common shareholders, per common and common equivalent share Basic earnings per share $ $ Diluted earnings per share $ $ |
Exit Costs Related to Idle Faci
Exit Costs Related to Idle Facility | 6 Months Ended |
Feb. 29, 2016 | |
Restructuring Charges | |
Exit Costs Related to Idle Facility | Note 15 – Exit Costs Related to Idle Facility In the quarter ended February 29, 2016, the Company recognized $209 in expenses to raze its Randolph, MA facility, which has been idle with regard to production for several years. Additionally, the Company began marketing the site for sale and reclassified the net book value of the facility to assets held for sale at February 29, 2016. These actions were taken as part of the Company’s on-going facility consolidation and rationalization initiative. The Company anticipates an additional $800 in expenses associated with completing the project, and expects the demolition work to be completed during the third fiscal quarter, with the sale of the property to follow. See Note 16 to the condensed consolidated financial statements for additional information on assets held for sale. |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Feb. 29, 2016 | |
Assets held for sale | |
Assets Held for Sale | Note 16 – Assets Held for Sale The Company periodically reviews long-lived assets against its plans to retain or ultimately dispose of these assets. If the Company decides to dispose of an asset and commits to a plan to actively market and sell the asset, it will be moved to assets held for sale. The Company analyzes market conditions each reporting period and, if applicable, records additional impairments due to declines in market values of like assets. The fair value of the asset is determined by observable inputs such as appraisals and prices of comparable assets in active markets for assets like the Company's. Gains are not recognized until the assets are sold. In the second quarter of fiscal 2016, the Company, as part of its on-going facility consolidation and rationalization initiative, committed to a plan to actively market for sale its Paterson, NJ property. Chase owns the building and leases the land from the landowner. Currently, the building is being leased to a tenant and the land is being sub-leased. Upon commitment to this plan, the Company reclassified the net book value of the related assets to assets held for sale. Assets held for sale as of February 29, 2016 and August 31, 2015: February 29, 2016 August 31, 2015 Paterson, NJ - Building and leasehold improvements $ $ — Randolph, MA - Property, plant and equipment (a) — RodPack - Property, plant and equipment (b) — RodPack - Patents and other intangible assets (b) — Total $ $ (a) See Note 15 to the condensed consolidated financial statements for additional information on Randolph, MA location assets held for sale as of February 29, 2016. (b) See Note 8 to the condensed consolidated financial statements for additional information on RodPack assets held for sale as of August 31, 2015. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Feb. 29, 2016 | |
Recent Accounting Policies | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which will replace most of the existing revenue recognition guidance under U.S. Generally Accepted Accounting Principles. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The ASU will be effective for the Company beginning September 1, 2018 (fiscal 2019), including interim periods in its fiscal year 2019, and allows for either retrospective or modified retrospective methods of adoption. The Company is in the process of determining the method of adoption and assessing the impact of this ASU on the Company’s consolidated financial position, results of operations and cash flows. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value, and other options that currently exist for market value will be eliminated. ASU No. 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. This accounting guidance is effective for us in the first quarter of fiscal 2018. Early adoption is permitted. We are currently evaluating the impact of the adoption of this accounting standard update on our consolidated financial position, results of operations and cash flows. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes – Balance Sheet Classification of Deferred Taxes.” The purpose of the standard is to simplify the presentation of deferred taxes on a classified balance sheet. Under current GAAP, deferred income tax assets and liabilities are separated into current and noncurrent amounts in the balance sheet. The amendments in ASU 2015-17 require that all deferred tax assets and liabilities be classified as noncurrent in the balance sheet. The ASU will be effective for the Company beginning September 1, 2017 (fiscal 2018), including interim periods in its fiscal year 2018, but with early adoption permitted. The Company does not expect the adoption of ASU 2015-17 to have a material impact on its financial statements or presentation. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Changes were made to align lessor accounting with the lessee accounting model and ASU No. 2014-09, “Revenue from Contracts with Customers.” The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The ASU will be effective for the Company beginning September 1, 2019 (fiscal 2020). Early application is permitted for all public business entities upon issuance. Lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees may not apply a full retrospective transition approach. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial position, results of operations and cash flows. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Inventories | |
Schedule of inventories | February 29, 2016 August 31, 2015 Raw materials $ $ Work in process Finished goods Total Inventories $ $ |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Net Income Per Share | |
Schedule of determination of earnings per share under the two-class method | Three Months Ended Six Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Basic Earnings per Share Net income attributable to Chase Corporation $ $ $ $ Less: Allocated to participating securities Net income available to common shareholders $ $ $ $ Basic weighted average shares outstanding Net income per share - Basic $ $ $ $ Diluted Earnings per Share Net income attributable to Chase Corporation $ $ $ $ Less: Allocated to participating securities Net income available to common shareholders $ $ $ $ Basic weighted average shares outstanding Additional dilutive common stock equivalents Diluted weighted average shares outstanding Net income per share - Diluted $ $ $ $ |
Segment Data & Foreign Operat28
Segment Data & Foreign Operations (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Segment Data & Foreign Operations | |
Summary of information about the Company's reportable segments | Three Months Ended Six Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Revenue Industrial Materials $ $ $ $ Construction Materials Total $ $ $ $ Income before taxes Industrial Materials $ $ (b) $ (d) $ (b) Construction Materials Total for reportable segments Corporate and common costs (a) (c) (a) (c) Total $ $ $ $ Includes the following costs by segment: Industrial Materials Interest $ $ $ $ Depreciation Amortization Construction Materials Interest $ $ $ $ Depreciation Amortization (a) Includes Randolph, MA facility exit and demolition costs of $209 incurred during the period (b) Includes $49 of expenses related to inventory step-up in fair value related to the January 2015 acquisition of the specialty chemical intermediates product line (c) Includes $584 in expenses related to the January 2015 acquisition of the specialty chemical intermediates product line (d) Includes both a $1,031 gain on sale of our RodPack ® wind energy business contained within our structural composites product line and a $365 write-down on certain other structural composites assets based on usage constraints following the sale, both recognized in November 2015 |
Schedule of total assets for the Company's reportable segments | February 29, August 31, 2016 2015 Total assets Industrial Materials $ $ Construction Materials Total for reportable segments Corporate and common assets Total $ $ |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Goodwill and Other Intangibles | |
Schedule of changes in the carrying value of goodwill by operating segment | Industrial Materials Construction Materials Consolidated Balance at August 31, 2015 $ $ $ Foreign currency translation adjustment Balance at February 29, 2016 $ $ $ |
Schedule of intangible assets subject to amortization | Weighted-Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value February 29, 2016 Patents and agreements years $ $ $ Formulas and technology years Trade names years Customer lists and relationships years $ $ $ August 31, 2015 Patents and agreements years $ $ $ Formulas and technology years Trade names years Customer lists and relationships years $ $ $ |
Schedule of estimated amortization expense related to intangible assets | Years ending August 31, 2016 (remaining 6 months) $ 2017 2018 2019 2020 2021 |
Sale of RodPack Business (Table
Sale of RodPack Business (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Sale of RodPack Business | |
Summary of information about the certain structural composites assets sold | November 10, 2015 August 31, 2015 RodPack - Property, plant and equipment $ $ RodPack - Patents and other intangible assets Total $ $ |
Pensions and Other Post Retir31
Pensions and Other Post Retirement Benefits (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Pensions and Other Post Retirement Benefits | |
Schedule of components of net periodic benefit cost | Three Months Ended Six Months Ended February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Components of net periodic benefit cost Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of prior service cost Amortization of accumulated loss Net periodic benefit cost $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Fair Value Measurements | |
Schedule of financial assets that were accounted for at fair value on a recurring basis | Fair value measurement category Quoted prices Significant other Significant Fair value in active markets observable inputs unobservable inputs measurement date Total (Level 1) (Level 2) (Level 3) Assets: Restricted investments February 29, 2016 $ $ — Restricted investments August 31, 2015 $ $ — |
Schedule of fair values of the Company's long-term debt | Fair value measurement category Quoted prices Significant other Significant Fair value in active markets observable inputs unobservable inputs measurement date Total (Level 1) (Level 2) (Level 3) Liabilities: Long-term debt February 29, 2016 $ $ — — Long-term debt August 31, 2015 $ $ — — |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Accumulated Other Comprehensive Income | |
Schedule of components of accumulated other comprehensive income (loss) | Change in Funded Foreign Currency Restricted Status of Translation Investments Pension Plan Adjustment Total Balance at August 31, 2015 $ $ $ $ Other comprehensive gains (losses) before reclassifications (1) — Reclassifications to net income of previously deferred (gains) losses (2) — Other comprehensive income (loss) Balance at February 29, 2016 $ $ $ $ (1) Net of tax expense of $ 30 , $0 , $0 , respectively. Net of tax expense of $2 2 , tax benefit of $ 102 , $0 , respectively. |
Summary of the reclassifications from accumulated other comprehensive income (loss) to the unaudited condensed consolidated statements of income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Three Months Ended Six Months Ended Location of Gain (Loss) Reclassified from Accumulated February 29, 2016 February 28, 2015 February 29, 2016 February 28, 2015 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized gain on sale of restricted investments $ $ $ $ Selling, general and administrative expenses Tax expense (benefit) Gain net of tax $ $ $ $ Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ $ $ $ Cost of products and services sold Amortization of prior pension service costs and unrecognized losses $ $ Selling, general and administrative expenses Tax expense (benefit) Loss net of tax $ $ $ $ Total net loss reclassified for the period $ $ $ $ |
Acquisition of Specialty Chem34
Acquisition of Specialty Chemical Intermediates Product Lines (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Acquisition of Specialty Chemical Intermediates Product Lines | |
Schedule of allocation of acquisition cost to the acquired tangible and identifiable intangible assets and liabilities assumed based on their fair values as of the date of the acquisition | Assets & Liabilities Amount Inventory $ Property, plant & equipment Goodwill Intangible assets Total purchase price $ |
Schedule of identifiable intangible assets purchased as part of business acquisition | Intangible Asset Amount Useful life Customer relationships $ years Technology years Trade name years Backlog months Total intangible assets $ |
Schedule of pro forma information | Three Months Ended Six Months Ended February 28, 2015 February 28, 2015 Revenue $ $ Net income Net income attributable to Chase Corporation Net income available to common shareholders, per common and common equivalent share Basic earnings per share $ $ Diluted earnings per share $ $ |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 6 Months Ended |
Feb. 29, 2016 | |
Assets held for sale | |
Summary of information about assets held for sale | Assets held for sale as of February 29, 2016 and August 31, 2015: February 29, 2016 August 31, 2015 Paterson, NJ - Building and leasehold improvements $ $ — Randolph, MA - Property, plant and equipment (a) — RodPack - Property, plant and equipment (b) — RodPack - Patents and other intangible assets (b) — Total $ $ (a) See Note 15 to the condensed consolidated financial statements for additional information on Randolph, MA location assets held for sale as of February 29, 2016. (b) See Note 8 to the condensed consolidated financial statements for additional information on RodPack assets held for sale as of August 31, 2015. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | Jan. 30, 2015USD ($)item | Feb. 28, 2015USD ($) | Oct. 31, 2014 |
Basis of Presentation | |||
Net gain attributable to non-controlling interest | $ 95 | ||
NEPTCO | |||
Basis of Presentation | |||
Net gain attributable to non-controlling interest | $ 95 | ||
NEPTCO | JV | Joint venture partner | |||
Basis of Presentation | |||
Membership interest purchased | 50.00% | ||
Henkel Corporation ( Seller) | |||
Basis of Presentation | |||
Number Of Product Lines Acquired | item | 2 | ||
Purchase price | $ 33,285 | ||
Lease term | 10 years | ||
Period to perform certain manufacturing and application services | 3 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Aug. 31, 2015 |
Inventories | ||
Raw materials | $ 12,603 | $ 12,937 |
Work in process | 6,678 | 6,539 |
Finished goods | 8,258 | 10,000 |
Total Inventories | $ 27,539 | $ 29,476 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Basic Earnings per Share | ||||
Net income attributable to Chase Corporation | $ 6,972 | $ 4,066 | $ 14,421 | $ 10,971 |
Less: Allocated to participating securities | 65 | 30 | 128 | 81 |
Available to common shareholders | $ 6,907 | $ 4,036 | $ 14,293 | $ 10,890 |
Basic weighted average shares outstanding | 9,155,365 | 9,065,511 | 9,148,493 | 9,057,738 |
Net income per share - Basic (in dollars per share) | $ 0.75 | $ 0.45 | $ 1.56 | $ 1.20 |
Diluted Earnings per Share | ||||
Net income attributable to Chase Corporation | $ 6,972 | $ 4,066 | $ 14,421 | $ 10,971 |
Less: Allocated to participating securities | 65 | 30 | 128 | 81 |
Net income available to common shareholders | $ 6,907 | $ 4,036 | $ 14,293 | $ 10,890 |
Basic weighted average shares outstanding | 9,155,365 | 9,065,511 | 9,148,493 | 9,057,738 |
Additional dilutive common stock equivalents (in shares) | 136,859 | 159,474 | 138,993 | 155,693 |
Diluted weighted average shares outstanding | 9,292,224 | 9,224,985 | 9,287,486 | 9,213,431 |
Net income per share - Diluted (in dollars per share) | $ 0.74 | $ 0.44 | $ 1.54 | $ 1.18 |
Antidilutive securities | ||||
Antidilutive stock options excluded from computation of earnings per share amount (in shares) | 21,275 | 22,750 | 26,381 | 27,863 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands | Sep. 01, 2015item$ / sharesshares | Sep. 01, 2014shares | Feb. 29, 2016USD ($)shares | Nov. 30, 2015shares |
Non-employee members of BOD | ||||
Stock Based Compensation | ||||
Shares granted | 4,554 | |||
Value of common stock issued in the form of restricted stock as part of annual retainer | $ | $ 219 | |||
Restricted stock | Non-executive members of management | ||||
Stock Based Compensation | ||||
Shares issued | 5,000 | |||
2015 LTIP | Performance and service based restricted stock | Executive officers | ||||
Stock Based Compensation | ||||
Shares granted | 5,685 | |||
Cumulative shares granted | 12,678 | |||
2015 LTIP | Performance and service based restricted stock | Executive officers | August 31, 2017 vesting date | ||||
Stock Based Compensation | ||||
Shares granted | 6,993 | |||
2016 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2018 vesting date | ||||
Stock Based Compensation | ||||
Shares granted | 6,962 | |||
2016 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2018 vesting date | ||||
Stock Based Compensation | ||||
Shares granted | 7,683 | |||
2016 LTIP | Stock options | Executive officers and other members of management | ||||
Stock Based Compensation | ||||
Number Options Outstanding (in shares) | 21,275 | |||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 39.50 | |||
Number of equal annual allotments in which awards will vest | item | 3 |
Segment Data and Disposal Group
Segment Data and Disposal Groups (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | Feb. 29, 2016USD ($)segment | Feb. 29, 2016USD ($)item | Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | Aug. 31, 2015USD ($) | |
Segment data | |||||||
Number of operating segments | 2 | 2 | |||||
Revenue | $ 54,924 | $ 52,304 | $ 112,402 | $ 108,237 | |||
Income before income taxes | 10,753 | 6,256 | 22,389 | 17,025 | |||
Total assets | 249,800 | $ 249,800 | $ 249,800 | 249,800 | $ 257,897 | ||
Interest | 260 | 270 | 510 | 544 | |||
Depreciation | 2,864 | 2,812 | |||||
Amortization | 3,836 | 2,884 | |||||
Cost of sale of inventory step-up | 49 | ||||||
Gain on sale of business | 1,031 | ||||||
Asset Impairment Charges | 365 | ||||||
RodPack Business | |||||||
Segment data | |||||||
Gain on sale of business | 1,031 | ||||||
Industrial Materials | |||||||
Segment data | |||||||
Revenue | 43,769 | 40,330 | 87,068 | 82,725 | |||
Income before income taxes | 13,271 | 10,213 | 26,200 | 22,828 | |||
Total assets | 139,566 | 139,566 | 139,566 | 139,566 | 146,870 | ||
Interest | 195 | 225 | 382 | 455 | |||
Depreciation | 954 | 976 | 1,945 | 1,953 | |||
Amortization | 1,569 | 1,283 | 3,129 | 2,053 | |||
Construction Materials | |||||||
Segment data | |||||||
Revenue | 11,155 | 11,974 | 25,334 | 25,512 | |||
Income before income taxes | 3,668 | 2,592 | 9,123 | 6,465 | |||
Total assets | 39,868 | 39,868 | 39,868 | 39,868 | 48,016 | ||
Interest | 65 | 45 | 128 | 89 | |||
Depreciation | 260 | 280 | 524 | 569 | |||
Amortization | 351 | 418 | 707 | 831 | |||
Reportable segments | |||||||
Segment data | |||||||
Income before income taxes | 16,939 | 12,805 | 35,323 | 29,293 | |||
Total assets | 179,434 | 179,434 | 179,434 | 179,434 | 194,886 | ||
Corporate and common costs | |||||||
Segment data | |||||||
Income before income taxes | (6,186) | $ (6,549) | (12,934) | $ (12,268) | |||
Total assets | $ 70,366 | $ 70,366 | $ 70,366 | $ 70,366 | $ 63,011 |
Segment Data & Foreign Operat41
Segment Data & Foreign Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | Aug. 31, 2015 | Aug. 31, 2014 | |
Concentration risk | ||||||
Long-lived assets | $ 37,397 | $ 37,397 | $ 40,921 | |||
United Kingdom | ||||||
Concentration risk | ||||||
Goodwill and intangible assets | $ 7,047 | $ 7,047 | $ 8,266 | |||
Revenue | Geographic concentration risk | United Kingdom | ||||||
Concentration risk | ||||||
Percentage of concentration risk | 11.00% | 14.00% | 10.00% | 12.00% | ||
Long-lived assets | Geographic concentration risk | United Kingdom | ||||||
Concentration risk | ||||||
Long-lived assets | $ 3,423 | $ 3,423 | $ 3,947 |
Goodwill and Other Intangible42
Goodwill and Other Intangibles - Segments (Details) - 6 months ended Feb. 29, 2016 $ in Thousands | segment | item | USD ($) |
Changes in the carrying value of goodwill | |||
Balance at the beginning of the period | $ 44,123 | ||
Foreign currency translation adjustment | (455) | ||
Balance at the end of the period | 43,668 | ||
Number of reportable segments | segment | 10 | ||
Number of operating segments | 2 | 2 | |
Construction Materials | |||
Changes in the carrying value of goodwill | |||
Balance at the beginning of the period | 10,733 | ||
Foreign currency translation adjustment | (25) | ||
Balance at the end of the period | 10,708 | ||
Industrial Materials | |||
Changes in the carrying value of goodwill | |||
Balance at the beginning of the period | 33,390 | ||
Foreign currency translation adjustment | (430) | ||
Balance at the end of the period | $ 32,960 |
Goodwill and Other Intangible43
Goodwill and Other Intangibles - By Class (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Feb. 29, 2016 | Aug. 31, 2015 | |
Goodwill and intangible assets | ||
Gross Carrying Value | $ 72,386 | $ 73,734 |
Accumulated Amortization | 31,724 | 28,882 |
Net Carrying Value | 40,662 | 44,852 |
Aggregate amortization expense | 3,836 | $ 2,884 |
Estimated amortization expense | ||
2016 (remaining 9 months) | 3,854 | |
2,017 | 7,246 | |
2,018 | 7,041 | |
2,019 | 6,348 | |
2,020 | 5,481 | |
2,021 | $ 5,219 | |
Patents and agreements | ||
Goodwill and intangible assets | ||
Weighted-Average Amortization Period | 12 years 7 months 6 days | 12 years 6 months |
Gross Carrying Value | $ 2,483 | $ 2,568 |
Accumulated Amortization | 2,259 | 2,267 |
Net Carrying Value | $ 224 | $ 301 |
Formulas and technology | ||
Goodwill and intangible assets | ||
Weighted-Average Amortization Period | 8 years 4 months 24 days | 8 years 4 months 24 days |
Gross Carrying Value | $ 8,305 | $ 8,415 |
Accumulated Amortization | 3,887 | 3,513 |
Net Carrying Value | $ 4,418 | $ 4,902 |
Trade names | ||
Goodwill and intangible assets | ||
Weighted-Average Amortization Period | 5 years 10 months 24 days | 5 years 10 months 24 days |
Gross Carrying Value | $ 7,185 | $ 7,278 |
Accumulated Amortization | 4,475 | 4,088 |
Net Carrying Value | $ 2,710 | $ 3,190 |
Customer lists and relationships | ||
Goodwill and intangible assets | ||
Weighted-Average Amortization Period | 9 years 3 months 18 days | 9 years 3 months 18 days |
Gross Carrying Value | $ 54,413 | $ 55,473 |
Accumulated Amortization | 21,103 | 19,014 |
Net Carrying Value | $ 33,310 | $ 36,459 |
Sale of RodPack Business (Detai
Sale of RodPack Business (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2015USD ($) | Feb. 29, 2016USD ($)installment | Nov. 10, 2015USD ($) | Aug. 31, 2015USD ($) | |
Sale of RodPack Business | ||||
Proceeds from the sale of property and assets | $ 1,500 | |||
Due from sale of business | 457 | |||
Acquisition related costs (Note 14) | 365 | |||
RodPack Business | ||||
Sale of RodPack Business | ||||
Proceeds from the sale of property and assets | $ 2,186 | |||
Property, plant and equipment | $ 846 | $ 773 | ||
Patents and other intangible assets | 309 | 316 | ||
Total | $ 1,155 | $ 1,089 | ||
Pre-tax book gain from the sale of property and assets | 1,031 | |||
After-tax book gain from the sale of property and assets | $ 660 | |||
Number of installments | installment | 3 | |||
Remaining balance | $ 229 | |||
Period of intervals | 6 months |
Joint Venture (Details)
Joint Venture (Details) - USD ($) $ in Thousands | 2 Months Ended | 6 Months Ended | 9 Months Ended |
Oct. 31, 2014 | Feb. 28, 2015 | May. 31, 2015 | |
Joint Venture | |||
Net gain attributable to non-controlling interest | $ 95 | ||
JV | Joint venture partner | |||
Joint Venture | |||
Purchases made | $ 332 | ||
NEPTCO | |||
Joint Venture | |||
Net gain attributable to non-controlling interest | $ 95 | ||
NEPTCO | Joint venture partner | |||
Joint Venture | |||
Ownership interest (as a percent) | 50.00% | ||
NEPTCO | Joint venture partner | Minimum | |||
Joint Venture | |||
Percentage of total glass fiber requirements agreed to be purchased | 80.00% | ||
NEPTCO | JV | Joint venture partner | |||
Joint Venture | |||
Membership interest purchased | 50.00% |
Pensions and Other Post-Retirem
Pensions and Other Post-Retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Components of net periodic benefit cost | ||||
Service cost | $ 74 | $ 91 | $ 148 | $ 181 |
Interest cost | 182 | 170 | 364 | 339 |
Expected return on plan assets | (129) | (153) | (258) | (306) |
Amortization of prior service cost | 1 | 1 | 2 | 2 |
Amortization of accumulated loss | 143 | 167 | 286 | 335 |
Net periodic benefit cost | $ 271 | $ 276 | 542 | 551 |
Employer contribution | $ 154 | $ 115 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 28, 2015 |
Fair value measurements | ||
Restricted investments | $ 1,421 | $ 1,410 |
Long-term debt | 47,600 | 51,800 |
Quoted prices in active markets (Level 1) | ||
Fair value measurements | ||
Restricted investments | 1,382 | 1,394 |
Significant other observable inputs (Level 2) | ||
Fair value measurements | ||
Restricted investments | 39 | 16 |
Long-term debt | $ 47,600 | $ 51,800 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Accumulated other comprehensive income | ||||
Balance at the beginning of the period | $ (7,986) | |||
Other comprehensive gains (losses) before reclassifications | (4,068) | |||
Reclassifications to net income of previously deferred (gains) losses | 146 | |||
Total other comprehensive income (loss) | $ (3,029) | $ (729) | (3,922) | $ (2,698) |
Balance at the ending of the period | (11,908) | (11,908) | ||
Restricted investments, other comprehensive gains (losses) before reclassifications, tax benefit | 30 | |||
Change in funded status of pension plan, other comprehensive gains (losses) before reclassifications, tax benefit | 0 | |||
Foreign currency translation adjustment, other comprehensive gains (losses) before reclassifications, tax benefit | 0 | |||
Restricted investments, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit | 22 | |||
Change in funded status of pension plan, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit | 102 | |||
Foreign currency translation adjustment, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit | 0 | |||
Restricted investments | ||||
Accumulated other comprehensive income | ||||
Balance at the beginning of the period | 47 | |||
Other comprehensive gains (losses) before reclassifications | (58) | |||
Reclassifications to net income of previously deferred (gains) losses | (41) | |||
Total other comprehensive income (loss) | (99) | |||
Balance at the ending of the period | (52) | (52) | ||
Change in funded status of pension plan | ||||
Accumulated other comprehensive income | ||||
Balance at the beginning of the period | (5,934) | |||
Reclassifications to net income of previously deferred (gains) losses | 187 | |||
Total other comprehensive income (loss) | 187 | |||
Balance at the ending of the period | (5,747) | (5,747) | ||
Foreign currency translation adjustment | ||||
Accumulated other comprehensive income | ||||
Balance at the beginning of the period | (2,099) | |||
Other comprehensive gains (losses) before reclassifications | (4,010) | |||
Total other comprehensive income (loss) | (4,010) | |||
Balance at the ending of the period | $ (6,109) | $ (6,109) |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income - Equity Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Accumulated other comprehensive income | ||||
Cost of products and services sold | $ 34,895 | $ 34,235 | $ 69,612 | $ 68,715 |
Selling, general and administrative expenses | 10,226 | 11,340 | 21,736 | 22,135 |
Tax expense (benefit) | 3,781 | 2,190 | 7,968 | 5,959 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 6,972 | 4,066 | 14,421 | 11,066 |
Reclassification out of accumulated other comprehensive income (loss) | ||||
Accumulated other comprehensive income | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 53 | 62 | 146 | 171 |
Restricted investments | Reclassification out of accumulated other comprehensive income (loss) | ||||
Accumulated other comprehensive income | ||||
Selling, general and administrative expenses | (61) | (75) | (63) | (76) |
Tax expense (benefit) | 21 | 26 | 22 | 27 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (40) | (48) | (41) | (48) |
Change in funded status of pension plan | Reclassification out of accumulated other comprehensive income (loss) | ||||
Accumulated other comprehensive income | ||||
Cost of products and services sold | 6 | 5 | 12 | 10 |
Selling, general and administrative expenses | 138 | 163 | 277 | 326 |
Tax expense (benefit) | (51) | (59) | (102) | (118) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 93 | $ 109 | $ 187 | $ 219 |
Acquisition of Specialty Chem50
Acquisition of Specialty Chemical Intermediates Product Lines (Details) $ in Thousands | Jan. 30, 2015USD ($)item | Feb. 28, 2015USD ($) | Feb. 29, 2016USD ($) | Feb. 28, 2015USD ($) | Aug. 31, 2015USD ($) |
Acquisitions | |||||
Acquisition related costs (Note 14) | $ 584 | $ 584 | |||
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets and liabilities assumed based on their fair values | |||||
Goodwill | $ 43,668 | $ 44,123 | |||
Henkel Corporation ( Seller) | |||||
Acquisitions | |||||
Number of product lines acquired | item | 2 | ||||
Purchase price | $ 33,285 | ||||
Lease term | 10 years | ||||
Period to perform certain manufacturing and application services | 3 years | ||||
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets and liabilities assumed based on their fair values | |||||
Inventory | $ 610 | ||||
Property, plant & equipment | 1,064 | ||||
Goodwill | 6,371 | ||||
Intangible assets | 25,240 | ||||
Total purchase price | $ 33,285 | ||||
Henkel Corporation ( Seller) | Selling, General and Administrative Expenses | |||||
Acquisitions | |||||
Acquisition related costs (Note 14) | $ 584 |
Acquisition of Specialty Chem51
Acquisition of Specialty Chemical Intermediates Product Lines - By Acquiree (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 30, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 29, 2016 | Feb. 28, 2015 |
Pro Forma Information | |||||
Acquisition related costs (Note 14) | $ 584 | $ 584 | |||
Net income | $ 6,972 | 4,066 | $ 14,421 | 11,066 | |
Henkel Corporation ( Seller) | |||||
Acquisition of Specialty Chemical Intermediates Businesses | |||||
Intangible assets | $ 25,240 | ||||
Pro Forma Information | |||||
Statutory tax rate (as a percent) | 35.00% | ||||
Revenue | 55,873 | 116,766 | |||
Net income | 4,955 | 12,329 | |||
Net income attributable to Chase Corporation | $ 4,955 | $ 12,234 | |||
Net income available to common shareholders, per common and common equivalent share | |||||
Basic earnings per share (in dollars per share) | $ 0.54 | $ 1.34 | |||
Diluted earning per share (in dollars per share) | $ 0.53 | $ 1.32 | |||
Henkel Corporation ( Seller) | Customer Relationships | |||||
Acquisition of Specialty Chemical Intermediates Businesses | |||||
Intangible assets | $ 21,300 | ||||
Useful life | 8 years | ||||
Henkel Corporation ( Seller) | Technology | |||||
Acquisition of Specialty Chemical Intermediates Businesses | |||||
Intangible assets | $ 2,700 | ||||
Useful life | 7 years | ||||
Henkel Corporation ( Seller) | Trade names | |||||
Acquisition of Specialty Chemical Intermediates Businesses | |||||
Intangible assets | $ 910 | ||||
Useful life | 7 years | ||||
Henkel Corporation ( Seller) | Backlog | |||||
Acquisition of Specialty Chemical Intermediates Businesses | |||||
Intangible assets | $ 330 | ||||
Useful life | 2 months |
Exit Costs Related to Idle Fa52
Exit Costs Related to Idle Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
May. 31, 2016 | Feb. 29, 2016 | Feb. 29, 2016 | |
Exit Costs Related to Idle Facility | |||
Acquisition related costs (Note 14) | $ 365 | ||
Business Exit Costs | $ 209 | $ 209 | |
Forecast | |||
Exit Costs Related to Idle Facility | |||
Business Exit Costs | $ 800 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Aug. 31, 2015 |
Assets held for sale | ||
Assets Held for sale | $ 604 | $ 1,089 |
Buildings and improvements | Paterson NJ | ||
Assets held for sale | ||
Assets Held for sale | 590 | |
Property, Plant, and Equipment | Randolph MA | ||
Assets held for sale | ||
Assets Held for sale | $ 14 | |
Property, Plant, and Equipment | RodPack Business | ||
Assets held for sale | ||
Assets Held for sale | 773 | |
Patents And Other Intangible Assets | RodPack Business | ||
Assets held for sale | ||
Assets Held for sale | $ 316 |