Chase (CCF) 10-Q 9 Apr 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Feb. 28, 2019	Mar. 31, 2019
Document and Entity Information
Entity Registrant Name	CHASE CORP
Entity Central Index Key	0000830524
Document Type	10-Q
Document Period End Date	Feb. 28, 2019
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		9,412,323
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Feb. 28, 2019	Aug. 31, 2018
Current Assets
Cash and cash equivalents	$ 25,088	$ 34,828
Accounts receivable, less allowance for doubtful accounts of $550 and $559	41,699	44,610
Inventory	45,418	39,699
Prepaid expenses and other current assets	4,488	2,595
Due from sale of businesses		400
Prepaid income taxes	2,556	4,100
Total current assets	119,249	126,232
Property, plant and equipment, less accumulated depreciation of $51,525 and $49,212	31,686	32,845
Other Assets
Goodwill	82,334	84,696
Intangible assets, less accumulated amortization of $60,439 and $54,039	59,152	65,330
Cash surrender value of life insurance	4,530	4,530
Restricted investments	1,118	1,090
Funded pension plan	241	301
Deferred income taxes	1,736	1,347
Other assets	77	98
Total assets	300,123	316,469
Current Liabilities
Accounts payable	14,991	17,810
Accrued payroll and other compensation	4,239	6,639
Accrued expenses	4,238	4,486
Total current liabilities	23,468	28,935
Long-term debt	6,000	25,000
Deferred compensation	1,132	1,105
Accumulated pension obligation	10,173	10,736
Other liabilities	333	283
Accrued income taxes	3,382	3,654
Commitments and Contingencies (Note 10)
Equity
First Serial Preferred Stock, $1.00 par value: Authorized 100,000 shares; none issued
Common stock, $.10 par value: Authorized 20,000,000 shares; 9,412,323 shares at February 28, 2019 and 9,396,947 shares at August 31, 2018 issued and outstanding	941	939
Additional paid-in capital	14,328	13,104
Accumulated other comprehensive loss	(11,279)	(12,336)
Retained earnings	251,645	245,049
Total equity	255,635	246,756
Total liabilities and equity	$ 300,123	$ 316,469

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Feb. 28, 2019	Aug. 31, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 550	$ 559
Property, plant and equipment, accumulated depreciation (in dollars)	51,525	49,212
Intangible assets, accumulated amortization (in dollars)	$ 60,439	$ 54,039
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	9,412,323	9,396,947
Common stock, shares outstanding	9,412,323	9,396,947

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Revenue
Revenue	$ 66,631	$ 65,875	$ 139,134	$ 127,792
Costs and Expenses
Cost of products and services sold	43,213	41,991	89,788	78,886
Selling, general and administrative expenses	13,086	11,975	26,448	23,871
Loss on impairment of goodwill (Note 7)	2,410		2,410
Exit costs related to idle facility (Note 15)			260
Acquisition-related costs (Note 14)		393		393
Operating income	7,922	11,516	20,228	24,642
Interest expense	(162)	(440)	(366)	(485)
Gain on sale of license (Note 17)		1,085		1,085
Other income (expense)	(828)	(421)	(1,122)	(903)
Income before income taxes	6,932	11,740	18,740	24,339
Income taxes (Note 18)	1,659	1,618	4,644	5,902
Net income	$ 5,273	$ 10,122	$ 14,096	$ 18,437
Net income available to common shareholders, per common and common equivalent share (Note 4)
Basic (in dollars per share)	$ 0.56	$ 1.08	$ 1.50	$ 1.97
Diluted (in dollars per share)	$ 0.56	$ 1.07	$ 1.49	$ 1.95
Weighted average shares outstanding
Basic (in shares)	9,332,288	9,289,372	9,330,929	9,285,604
Diluted (in shares)	9,373,030	9,329,308	9,377,167	9,356,847
Product
Revenue
Revenue	$ 65,442	$ 64,735	$ 136,806	$ 125,312
Royalties and commissions
Revenue
Revenue	$ 1,189	$ 1,140	$ 2,328	$ 2,480

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 5,273	$ 10,122	$ 14,096	$ 18,437
Other comprehensive income (loss):
Net unrealized (loss) gain on restricted investments, net of tax	13	(49)	(8)	(18)
Change in funded status of pension plans, net of tax	291	105	527	185
Foreign currency translation adjustment	1,144	2,100	538	3,670
Total other comprehensive income (loss)	1,448	2,156	1,057	3,837
Comprehensive income	$ 6,721	$ 12,278	$ 15,153	$ 22,274

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Balance at Aug. 31, 2017	$ 935	$ 14,060	$ (13,469)	$ 209,403	$ 210,929
Balance (in shares) at Aug. 31, 2017	9,354,136
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 2	(2)
Restricted stock grants, net of forfeitures (in shares)	15,900
Amortization of restricted stock grants		806			806
Amortization of stock option grants		223			223
Exercise of stock options	$ 4	886			890
Exercise of stock options (in shares)	44,880
Common stock received for payment of stock option exercises	$ (1)	(747)			(748)
Common stock received for payment of stock option exercises (in shares)	(7,367)
Common stock retained to pay statutory minimum withholding taxes on common stock	$ (1)	(1,390)			(1,391)
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares)	(12,961)
Cash dividend on common stock				(7,497)	(7,497)
Change in funded status of pension plans, net of tax			185		185
Foreign currency translation adjustment			3,670		3,670
Net unrealized gain (loss) on restricted investments, net of tax			(18)		(18)
Net income				18,437	18,437
Balance at Feb. 28, 2018	$ 939	13,836	(9,632)	220,343	225,486
Balance (in shares) at Feb. 28, 2018	9,394,588
Balance at Nov. 30, 2017	$ 937	14,734	(11,788)	210,221	214,104
Balance (in shares) at Nov. 30, 2017	9,374,840
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 1	(1)
Restricted stock grants, net of forfeitures (in shares)	2,779
Amortization of restricted stock grants		385			385
Amortization of stock option grants		111			111
Exercise of stock options	$ 3	438			441
Exercise of stock options (in shares)	34,021
Common stock received for payment of stock option exercises	$ (1)	(441)			(442)
Common stock received for payment of stock option exercises (in shares)	(4,091)
Common stock retained to pay statutory minimum withholding taxes on common stock	$ (1)	(1,390)			(1,391)
Common stock retained to pay statutory minimum withholding taxes on common stock (in shares)	(12,961)
Change in funded status of pension plans, net of tax			105		105
Foreign currency translation adjustment			2,100		2,100
Net unrealized gain (loss) on restricted investments, net of tax			(49)		(49)
Net income				10,122	10,122
Balance at Feb. 28, 2018	$ 939	13,836	(9,632)	220,343	225,486
Balance (in shares) at Feb. 28, 2018	9,394,588
Balance at Aug. 31, 2018	$ 939	13,104	(12,336)	245,049	246,756
Balance (in shares) at Aug. 31, 2018	9,396,947
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures	$ 1	(1)
Restricted stock grants, net of forfeitures (in shares)	9,308
Amortization of restricted stock grants		795			795
Amortization of stock option grants		249			249
Exercise of stock options	$ 1	301			302
Exercise of stock options (in shares)	7,022
Common stock received for payment of stock option exercises		(120)			(120)
Common stock received for payment of stock option exercises (in shares)	(954)
Cash dividend on common stock				(7,522)	(7,522)
Change in funded status of pension plans, net of tax			527		527
Foreign currency translation adjustment			538		538
Net unrealized gain (loss) on restricted investments, net of tax			(8)		(8)
Net income				14,096	14,096
Balance at Feb. 28, 2019	$ 941	14,328	(11,279)	251,645	255,635
Balance (in shares) at Feb. 28, 2019	9,412,323
Balance at Nov. 30, 2018	$ 940	13,608	(12,727)	246,372	248,193
Balance (in shares) at Nov. 30, 2018	9,402,706
Increase (Decrease) in Stockholders' Equity
Restricted stock grants, net of forfeitures (in shares)	4,599
Amortization of restricted stock grants		415			415
Amortization of stock option grants		124			124
Exercise of stock options	$ 1	181			182
Exercise of stock options (in shares)	5,018
Change in funded status of pension plans, net of tax			291		291
Foreign currency translation adjustment			1,144		1,144
Net unrealized gain (loss) on restricted investments, net of tax			13		13
Net income				5,273	5,273
Balance at Feb. 28, 2019	$ 941	$ 14,328	$ (11,279)	251,645	255,635
Balance (in shares) at Feb. 28, 2019	9,412,323
Increase (Decrease) in Stockholders' Equity
Adoption of ASC 606 (Note 9) | ASU 2014-09				$ 22	$ 22

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
CONDENSED CONSOLIDATED STATEMENT OF EQUITY
Annual cash dividends declared per share			$ 0.80	$ 0.80
Change in funded status of pension plans, tax	$ 101	$ 17	$ 184	$ 59
Net unrealized gain (loss) on restricted investments, tax	$ 3	$ (22)	$ (4)	$ (7)

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018	Aug. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 5,273	$ 10,122	$ 14,096	$ 18,437
Adjustments to reconcile net income to net cash provided by operating activities
Gain on sale of license		(1,085)		(1,085)
Loss on impairment of goodwill (Note 7)	2,410		2,410
Depreciation			2,491	2,618
Amortization			6,225	5,233
Cost of sale of inventory step-up				1,530
(Recovery) provision of allowance for doubtful accounts			(11)	137
Stock-based compensation			1,044	1,029
Realized loss (gain) on restricted investments			4	(91)
Pension curtailment and settlement loss			473
Deferred taxes			(581)	1,069
Increase (decrease) from changes in assets and liabilities
Accounts receivable			3,003	179
Inventory			(5,651)	(3,222)
Prepaid expenses and other assets			(1,864)	(601)
Accounts payable			(2,764)	2,247
Accrued compensation and other expenses			(2,847)	(2,778)
Accrued income taxes			1,275	(4,718)
Net cash provided by operating activities			17,303	19,984
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment			(1,304)	(1,586)
Cost to acquire intangible assets			(30)	(33)
Payments for acquisitions				(71,434)
Proceeds from sale of license				1,000
Proceeds from sale of businesses			400
Changes in restricted investments			(41)	61
Net cash used in investing activities			(975)	(71,992)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on debt				65,000
Payments of principal on debt			(19,000)	(10,000)
Dividend paid			(7,522)	(7,497)
Proceeds from exercise of common stock options			182	142
Payments of taxes on stock options and restricted stock				(1,391)
Net cash (used in) provided by financing activities			(26,340)	46,254
INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS			(10,012)	(5,754)
Effect of foreign exchange rates on cash			272	2,537
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			34,828	47,354	$ 47,354
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 25,088	44,137	25,088	44,137	$ 34,828
Non-cash Investing and Financing Activities
Common stock received for payment of stock option exercises		$ 442	120	748
Property, plant and equipment additions included in accounts payable			$ 113	$ 222

Basis of Financial Statement Pr

Basis of Financial Statement Presentation	6 Months Ended
	Feb. 28, 2019
Basis of Financial Statement Presentation
Basis of Financial Statement Presentation	Note 1 — Basis of Financial Statement Presentatio Description of Business Chase Corporation (the “Company,” “Chase,” “we,” or “us”), a global specialty chemicals company founded in 1946, is a leading manufacturer of protective materials for high-reliability applications across diverse market sectors. Our strategy is to maximize the performance of our core businesses and brands while seeking future opportunities through strategic acquisitions. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“U.S. GAAP”) 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 disclosures necessary for a complete presentation of Chase Corporation’s financial position, results of operations and cash flows in conformity with generally accepted accounting principles. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. Chase Corporation filed audited consolidated financial statements, which included all information and notes necessary for such a complete presentation, for the three years ended August 31, 2018, in conjunction with its 2018 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 28, 2019 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, 2018, which are contained in the Company’s 2018 Annual Report on Form 10-K. The accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring items) that are, in the opinion of management, necessary for a fair statement of the Company’s financial position as of February 28, 2019, the results of its operations, comprehensive income, changes in equity and cash flows for the interim periods ended February 28, 2019 and 2018. 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 U.S. dollar as the reporting currency for financial reporting. The financial position and results of operations of the Company’s U.K.-based operations are measured using the British pound 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 financial position and results of the Company’s HumiSeal India Private Limited business are measured using the Indian rupee as the functional currency. The functional currency for all our other operations is the U.S. 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 each applicable operation are included in other income (expense) on the condensed consolidated statements of operations, and were ($468) and ($416) for the three- and six-month periods ended February 28, 2019, respectively, and ($324) and ($677) for the three- and six-month periods ended February 28, 2018, respectively. Other Business Developments On June 25, 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. This is in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its existing processes. The manufacture of products previously produced in the Pawtucket, RI facility was moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. The Company expensed $1,272 in the fourth quarter of fiscal 2018 related to the closure, including: (a) cash-related employee-related, logistics and uncapitalized facility improvement costs of $590; and (b) non-cash-related accelerated depreciation expense of $682. The Company recognized $260 in expenses related to this move in the three-month period ended November 30, 2018, with no additional expense recognized in the quarter ended February 28, 2019. Future costs related to this move are not anticipated to be significant to the condensed consolidated financial statements. On April 20, 2018, Chase finalized an agreement with an unrelated party to sell all inventory, operational machinery and equipment and intangible assets of the Company’s structural composites rod business, as well as a license related to the production and sale of rod, for proceeds of $2,232, net of transaction costs and following certain working capital adjustments. This business, which was part of the structural composites product line within the Industrial Materials segment, had limited growth and profitability prospects as part of the Company, and was outside the areas Chase has identified for strategic emphasis. The resulting pre-tax gain on sale of $1,480 was recognized in the third quarter of fiscal 2018 as a gain on sale of businesses within the condensed consolidated statement of operations. Chase received $2,075, net of transaction costs, in the third quarter of fiscal 2018, with the remaining $157 received in the fourth quarter of fiscal 2018 as a result of a working capital true-up. Chase will provide certain transitional manufacturing and administrative support to the purchaser for which the Company will receive additional consideration upon the performance of services. The purchaser also entered into a royalty agreement with the Company. The purchaser will make royalty payments to Chase based on future sales of certain structural composite material manufactured by the purchaser. On December 29, 2017, Chase entered an agreement to acquire Stewart Superabsorbents, LLC (“SSA, LLC”), an advanced superabsorbent polymer (SAP) formulator and solutions provider, with operations located in Hickory and McLeansville, NC. The transaction closed on December 31, 2017. In the most recently completed fiscal year prior to the acquisition, SSA, LLC, and its recently-acquired Zappa-Tec business (collectively “Zappa Stewart”) had combined revenue in excess of $24,000. This acquisition proved to be immediately accretive to the Company’s earnings, after adjusting for nonrecurring costs associated with the transaction and financing cost. The business was acquired for a purchase price of $73,469, after final working capital adjustments and excluding acquisition-related costs. As part of this transaction, Chase acquired all assets of the business, and entered multiyear leases at both locations. The Company expensed $393 of acquisition-related costs associated with this acquisition during the second quarter of fiscal 2018. The purchase was funded from a combination of Chase’s existing revolving credit facility and available cash on hand. Zappa Stewart’s protective materials technology complements Chase’s current specialty chemicals offerings. This acquisition is aligned with the Company’s core strategies and extends its reach into growing medical, environmental and consumer applications. The Company finalized purchase accounting in the first quarter of fiscal 2019, without any adjustment to amounts recorded at August 31, 2018. Following the effective date of the acquisition the financial results of Zappa Stewart’s operations have been included in the Company’s financial statements in the specialty chemical intermediates product line, contained within the Industrial Materials operating segment. See Note 14 to the condensed consolidated financial statements for additional information on the acquisition of Zappa Stewart. Significant Accounting Policies The Company’s significant accounting policies are detailed in Note 1 — “Summary of Significant Accounting Policies” within Item 8 of the Company’s Annual Report on Form 10-K for the year ended August 31, 2018. Significant changes to these accounting policies as a result of adopting ASC 606 “Revenue from Contracts with Customers” during the first quarter of fiscal 2019 are discussed within Note 2 — “Recent Accounting Standards” and Note 9 — “Revenue from Contracts with Customers” within this Current Quarterly Report on Form 10-Q.

Recent Accounting Standards

Recent Accounting Standards	6 Months Ended
	Feb. 28, 2019
Recent Accounting Standards
Recent Accounting Standards	Note 2 — Recent Accounting Standards Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("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 represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The ASU will be effective for the Company beginning September 1, 2019 (fiscal 2020). Early application is permitted. 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 Company is currently evaluating the impact of the application of this ASU on our consolidated financial statements and disclosures thereto. In February 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” Under previously existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amendments in this ASU also require certain disclosures about stranded tax effects. The guidance is required for fiscal years beginning after December 15, 2018 (our fiscal year 2020), and interim periods within those fiscal years. Early adoption in any period is permitted. The Company is currently evaluating the effect that ASU No. 2018-02 will have on its financial statements and related disclosures. See Note 18 to the condensed consolidated financial statements for additional information on the effects of the Tax Act on our financial position and result of operations, including provisional transitional adjustments that were recorded during fiscal 2018 related to the Tax Act, and complete and final adjustments during the quarter ended February 28, 2019. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The amended guidance establishes a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance, including industry-specific guidance. The amended guidance clarifies that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the amended guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 was effective for the Company’s interim and annual reporting periods beginning September 1, 2018 (fiscal 2019), and could have been adopted using either a full retrospective or modified retrospective transition method. The Company adopted the amended guidance and all related amendments using the modified retrospective approach on September 1, 2018, at which time it became effective for the Company. The Company recognized the cumulative effect of initially applying the new revenue standard to all open contracts requiring recognition over time that were not completed on the date of adoption as an adjustment to the opening balance of retained earnings. At the adoption date, the cumulative impact of revenue that would have been recognized over time was $80. The related adoption impact to retained earnings was $22, net of tax. The impact to net sales and net income as a result of applying ASC 606 was a (decrease) increase of ($10) and ($14), respectively, for the quarter ended February 28, 2019 and $95 and $31, respectively, for the six months ended February 28, 2019. See Note 9 — “Revenue from Contracts with Customers” for further discussion of the effects of adoption. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230).” This ASU provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The Company adopted ASU No. 2016-15 on September 1, 2018, and the adoption did not have a material effect on its financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The new guidance dictates that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, it should be treated as an acquisition or disposal of an asset. The Company adopted the ASU on September 1, 2018. The adoption had no material effect on the financial statements and related disclosures in the first and second quarter of fiscal 2019. The effect ASU No. 2017-01 will have on the financial statements and related disclosures of the Company in future periods will be dependent on the nature of potential future acquisitions and divestitures. In March 2017, the FASB issued ASU No. 2017-07, “Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU applies to all employers that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715, Compensation — Retirement Benefits. The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The ASU also allows only the service cost component to be eligible for capitalization when applicable (e.g., as a cost of internally manufactured inventory or a self-constructed asset). The Company adopted ASU No. 2017-07 on September 1, 2018, which resulted in the reclassification of $163 and $326, previously reported in selling, general and administrative expense, to other income (expense) for the three- and six-month periods ended February 28, 2018 (prior year), respectively. Further reclassifications will be required on the condensed consolidated statement of operations for periods of fiscal 2018 subsequent to February 28, 2018. The adoption of ASU 2017-07 did not have any effect on the historically stated condensed consolidated balance sheets or condensed consolidated statement of cash flows. In May 2017, the FASB issued ASU No. 2017-09, "Scope of Modification Accounting." This ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The Company adopted the ASU 2017-09 on September 1, 2018. The adoption had no material effect on the financial statements and related disclosures in the first and second quarter of fiscal 2019. The effect ASU No. 2017-09 will have on the financial statements and related disclosures of the Company in future periods will be dependent on the nature of potential future changes the Company may make to the terms or conditions of any share-based payment awards.

Inventory

Inventory	6 Months Ended
	Feb. 28, 2019
Inventory
Inventory	Note 3 — Inventory Inventory consisted of the following as of February 28, 2019 and August 31, 2018: February 28, 2019 August 31, 2018 Raw materials $ 22,706 $ 21,998 Work in process 8,463 7,653 Finished goods 14,249 10,048 Total Inventory $ 45,418 $ 39,699

Net Income Per Share

Net Income Per Share	6 Months Ended
	Feb. 28, 2019
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 nonforfeitable 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 February 28, Six Months Ended February 28, 2019 2018 2019 2018 Basic Earnings per Share Net income $ 5,273 $ 10,122 $ 14,096 $ 18,437 Less: Allocated to participating securities Net income available to common shareholders $ 5,232 $ 10,026 $ 13,986 $ 18,261 Basic weighted average shares outstanding Net income per share - Basic $ 0.56 $ 1.08 $ 1.50 $ 1.97 Diluted Earnings per Share Net income $ 5,273 $ 10,122 $ 14,096 $ 18,437 Less: Allocated to participating securities Net income available to common shareholders $ 5,232 $ 10,026 $ 13,986 $ 18,261 Basic weighted average shares outstanding Additional dilutive common stock equivalents Diluted weighted average shares outstanding Net income per share - Diluted $ 0.56 $ 1.07 $ 1.49 $ 1.95 For the three- and six-month periods ended February 28, 2019, stock options to purchase 15,625 and 14,022 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-month periods ended February 28, 2018, stock options to purchase 6,416 and 9,622 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. 28, 2019
Stock-Based Compensation
Stock-Based Compensation	Note 5 — Stock-Based Compensation In August 2017, the Board of Directors of the Company approved the fiscal year 2018 Long Term Incentive Plan (“2018 LTIP”) for the executive officers and other members of management. The 2018 LTIP is an equity-based plan with a grant date of September 1, 2017 and contains a performance and service-based restricted stock grant of 4,249 shares in the aggregate, subject to adjustment, with a vesting date of August 31, 2020. Based on the fiscal year 2018 financial results, 572 additional shares of restricted stock (total of 4,821 shares) were earned and granted subsequent to the end of fiscal year 2018 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 2018, the Board of Directors of the Company approved the fiscal year 2019 Long Term Incentive Plan (“2019 LTIP”) for the executive officers and other members of management. The 2019 LTIP is an equity-based plan with a grant date of September 1, 2018 and contains the following equity components: Restricted Shares — (a) a performance and service-based restricted stock grant of 3,541 shares in the aggregate, subject to adjustment based on fiscal 2019 results, with a vesting date of August 31, 2021. Compensation expense is recognized on a ratable basis over the vesting period based on quarterly probability assessments; and (b) a time-based restricted stock grant of 3,068 shares in the aggregate, with a vesting date of August 31, 2021. Compensation expense is recognized on a ratable basis over the vesting period. Stock options — options to purchase 8,603 shares of common stock in the aggregate with an exercise price of $123.95 per share. The options will vest in three equal annual installments beginning on August 31, 2019 and ending on August 31, 2021. Of the options granted, 3,927 options will expire on August 31, 2028, and 4,676 options will expire on September 1, 2028. Compensation expense is recognized over the period of the award consistent with the vesting terms. In September 2018, restricted stock in the amount of 2,472 shares related to a first quarter of fiscal 2017 grant was forfeited in conjunction with the termination of employment of a non-executive member of management of the Company. In February 2019, as part of their standard compensation for board service, non-employee members of the Board of Directors received a total grant of 4,599 shares of restricted stock ($469 grant date value) for service for the period from January 31, 2019 through January 31, 2020. 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 and Foreign Operat

Segment Data and Foreign Operations	6 Months Ended
	Feb. 28, 2019
Segment Data and Foreign Operations
Segment Data and Foreign Operations	Note 6 — Segment Data and Foreign Operations The Company is organized into two reportable 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 and customized sealant and adhesive systems for electronics, laminated durable papers, laminates for the packaging and industrial laminate markets, custom manufacturing-related services, 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, composite materials and elements, polymeric microspheres, polyurethane dispersions and superabsorbent polymers. Beginning December 31, 2017, the Industrial Materials segment includes the acquired operations of Zappa Stewart, included in the Company’s specialty chemical intermediates product line. Following the April 20, 2018 sale of the structural composites rod business, future product sales of composite materials and elements are not anticipated to be significant to the condensed consolidated financial statements. The Construction Materials segment is principally composed of project-oriented and infrastructure-related 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 February 28, Six Months Ended February 28, 2019 2018 2019 2018 Revenue Industrial Materials $ 57,265 $ 55,267 $ 117,425 $ 105,252 Construction Materials 9,366 10,608 21,709 22,540 Total $ 66,631 $ 65,875 $ 139,134 $ 127,792 Income before income taxes Industrial Materials $ 12,269 (a) $ 16,161 (c) $ 27,072 (e) $ 31,526 (c) Construction Materials 2,384 2,372 6,850 6,618 Total for reportable segments 14,653 18,533 33,922 38,144 Corporate and common costs (7,721) (b) (6,793) (d) (15,182) (f) (13,805) (d) Total $ 6,932 $ 11,740 $ 18,740 $ 24,339 Includes the following costs by segment: Industrial Materials Interest $ 130 $ 352 $ 293 $ 388 Depreciation 820 905 1,659 1,705 Amortization 2,789 2,591 5,579 4,578 Construction Materials Interest $ 32 $ 88 $ 73 $ 97 Depreciation 164 187 339 377 Amortization 323 328 646 655 (a) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business (b) Includes $273 of pension-related settlement costs due to the timing of lump-sum distributions (c) Includes $1,530 of expenses related to inventory step-up in fair value attributable to the December 2017 acquisition of Zappa Stewart and a $1,085 gain on sale of license related to the structural composites product line recorded in the second quarter of fiscal 2018 (d) Includes $393 in acquisition-related expenses attributable to the December 2017 acquisition of Zappa Stewart (e) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first quarter of fiscal 2019 and $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business (f) Includes $473 of pension-related settlement costs due to the timing of lump-sum distributions Total assets for the Company’s reportable segments as of February 28, 2019 and August 31, 2018 were: February 28, August 31, 2019 2018 Total Assets Industrial Materials $ 226,433 $ 229,559 Construction Materials 32,827 36,757 Total for reportable segments 259,260 266,316 Corporate and common assets 40,863 50,153 Total $ 300,123 $ 316,469 The Company’s products are sold worldwide. Revenue for the three- and six-month periods ended February 28, 2019 and 2018 were attributed to operations located in the following countries: Three Months Ended February 28, Six Months Ended February 28, 2019 2018 2019 2018 Revenue United States $ 57,942 $ 55,978 $ 122,293 $ 108,455 United Kingdom 4,428 5,392 8,444 9,789 All other foreign (1) 4,261 4,505 8,397 9,548 Total $ 66,631 $ 65,875 $ 139,134 $ 127,792 (1) Comprises sales originated from our Paris, France location, royalty revenue attributable to our licensed manufacturer in Asia, and Chase foreign manufacturing operations. As of February 28, 2019 and August 31, 2018, the Company had long-lived assets ( defined as tangible assets providing the Company with a future economic benefit beyond the current year or operating period, including buildings, equipment and leasehold improvements) and goodwill and intangible assets, less accumulated amortization, in the following countries: February 28, August 31, 2019 2018 Long-Lived Assets United States Property, plant and equipment, net $ 27,119 $ 28,770 Goodwill and Intangible assets, less accumulated amortization 135,166 143,539 United Kingdom Property, plant and equipment, net 2,871 2,911 Goodwill and Intangible assets, less accumulated amortization 5,100 5,239 All other foreign Property, plant and equipment, net 1,696 1,164 Goodwill and Intangible assets, less accumulated amortization 1,220 1,248 Total Property, plant and equipment, net $ 31,686 $ 32,845 Goodwill and Intangible assets, less accumulated amortization $ 141,486 $ 150,026

Goodwill and Other Intangibles

Goodwill and Other Intangibles	6 Months Ended
	Feb. 28, 2019
Goodwill and Other Intangibles
Goodwill and Other Intangibles	Note 7 — Goodwill and Other Intangibles The changes in the carrying value of goodwill were as follows: Industrial Construction Materials Consolidated Balance at August 31, 2018 $ 74,002 $ 10,694 $ 84,696 Loss on impairment of polyurethane dispersions business (2,410) — (2,410) Foreign currency translation adjustment 44 4 48 Balance at February 28, 2019 $ 71,636 $ 10,698 $ 82,334 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 a total of twelve 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 discounted cash flows. The Company evaluates the possible impairment of goodwill annually during the fourth quarter, and whenever events or circumstances indicate the carrying value of goodwill may not be recoverable. In fiscal 2017, the Company early adopted ASU No. 2017-04 “Intangibles - Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment.” We assess goodwill for impairment by comparing the fair value of the reporting unit to its carrying amount. If the fair value of a reporting unit is less than its carrying value, an impairment loss, limited to the amount of goodwill allocated to that reporting unit, is recorded. The ordering patterns of our polyurethane dispersions reporting unit’s customers during the three-month period ended February 28, 2019, especially those in the automotive industry, combined with a decrease in the reporting unit’s backlog of customer orders believed to be firm as of February 28, 2019, indicated an impairment in the carrying value of the reporting unit might have occurred. As such, we performed an impairment test on our long-lived assets related to our polyurethane dispersions reporting unit, part of the Industrial Materials operating segment, in accordance with ASC Topic 350, “Intangibles — Goodwill and Other” and ASC Topic 360, “Disclosure — Impairment or Disposal of Long-Lived Assets.” As a result of impairment testing, which included first testing long-lived assets other than goodwill for impairment under applicable guidance, the Company recorded a charge of $2,410 to loss on impairment of goodwill within the condensed consolidated statement of operations during the quarter ended February 28, 2019. Our polyurethane dispersions reporting unit’s fair value was determined based on the income approach (discounted cash flow method). Intangible assets subject to amortization consisted of the following as of February 28, 2019 and August 31, 2018: Weighted Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value February 28, 2019 Patents and agreements years $ 1,885 $ 1,687 $ 198 Formulas and technology years 10,245 7,377 2,868 Trade names years 8,571 7,106 1,465 Customer lists and relationships years 98,890 44,269 54,621 $ 119,591 $ 60,439 $ 59,152 August 31, 2018 Patents and agreements years $ 1,863 $ 1,681 $ 182 Formulas and technology years 10,225 6,690 3,535 Trade names years 8,554 6,866 1,688 Customer lists and relationships years 98,727 38,802 59,925 $ 119,369 $ 54,039 $ 65,330 Aggregate amortization expense related to intangible assets for the six months ended February 28, 2019 and 2018 was $6,225 and $5,233 respectively. Estimated amortization expense for the remainder of fiscal year 2019 and for the next five years is as follows: Years ending August 31, 2019 (remaining 6 months) $ 6,237 2020 11,594 2021 11,064 2022 10,035 2023 6,768 2024 5,659

Sale of Businesses

Sale of Businesses	6 Months Ended
	Feb. 28, 2019
Sale of Businesses
Sale of Businesses	Note 8 — Sale of Business Sale of Structural Composites Rod Business On April 20, 2018, Chase finalized an agreement with an unrelated party to sell all inventory, operational machinery and equipment and intangible assets of the Company’s structural composites rod business, as well as a license related to the production and sale of rod, for proceeds of $2,232, net of transaction costs and following certain working capital adjustments. This business, which was part of the structural composites product line within the Industrial Materials segment, had limited growth and profitability prospects as part of the Company, and was outside the areas Chase has identified for strategic emphasis. The divestiture was accounted for under ASC Topic 360, “Disclosure - Impairment or Disposal of Long-Lived Assets.” In accordance with this accounting standard, the resulting pre-tax gain on sale of $1,480 was recognized in the third quarter of fiscal 2018 as a gain on sale of businesses within the condensed consolidated statement of operations. Chase received $2,075, net of transaction costs, in the third quarter of fiscal 2018, with the remaining $157 received in the fourth quarter of fiscal 2018 as a result of a working capital true-up. Related to this transaction, the purchaser entered into a royalty agreement with the Company. The purchaser will make royalty payments to Chase based on future sales of certain structural composite material manufactured by the purchaser. Royalty revenue recognized in the six-month period ended February 28, 2019 related to this agreement was not material. The sale of the structural components rod business follows the Company’s sale of the RodPack ® wind blade components business in November 2015, and the licensing of certain composite technologies during the second quarter of fiscal 2018 (see Note 17). Subsequent to the third quarter of fiscal 2018, Chase has included the results of its remaining structural composites wind energy business (inclusive of the royalties and the custom manufacturing-related services noted below) within the specialty products product line. Post-Sale Services Provided to the Buyer of the Structural Composites Rod Business and the Fiber Optic Cable Components Product Line The structural composites rod business and the fiber optic cable components product line (sold in fiscal 2017), which both operated out of the Company’s Granite Falls, NC facility, were both sold to the same otherwise unrelated purchaser. Subsequent to the sales, Chase will provide certain transitional manufacturing and administrative support to the purchaser for which the Company will receive additional consideration upon the performance of services. In the three-and six-month periods ended February 28, 2019, Chase charged the purchaser $420 and $1,383, respectively, for manufacturing services, which the Company recognized as revenue within the Industrial Materials segment, and $57 and $114, respectively, for selling and administrative services, which the Company recognized as an offset to selling, general and administrative expenses. In the three- and six-month periods ended February 28, 2018, Chase charged the purchaser $451 and $921, respectively, for manufacturing services, and $60 and $120, respectively, for selling and administrative services. Further, the purchaser entered a multiyear lease for a portion of the manufacturing space at the Company’s Granite Falls, NC facility. Chase received $32, $65, $32 and $65 in rental income related to this lease during the three- and six-month periods ended February 28, 2019 and 2018, respectively, which the Company recognized within other income (expense) on the condensed consolidated statements of operations.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
	Feb. 28, 2019
Revenue from Contracts with Customers
Revenue from Contracts with Customers	Note 9 — Revenue from Contracts with Customers The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers. This revenue is generated from the manufacture of specialty chemical products including coatings, linings, adhesives, sealants, specialty tapes, polymers and laminates. Certain of these manufactured products can comprise fully or partially of customer-owned materials. The Company also recognizes, to a lesser extent, revenue through royalties and commissions from licensed manufacturers and from providing custom manufacturing-related services. The Company’s revenue recognition policies require the Company to make significant judgments and estimates. In applying the Company’s revenue recognition policy, determinations must be made as to when control of products passes to the Company’s customers, which can be either at a point in time or over time based on terms and conditions of contractual terms with customers. As described in more detail below, revenue is generally recognized at a point in time when control passes, either upon shipment to or upon receipt by the customer of the Company’s products, while revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process. The Company accounts for revenue from contracts with customers when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is primarily derived from customer purchase orders, master sales agreements, and negotiated contracts, all of which represent contracts with customers. The Company next identifies the performance obligations in the contract. A performance obligation is a promise to provide distinct goods or services. Performance obligations are the unit of account for purposes of applying the revenue standard and therefore determine when and how revenue is recognized. The Company determines the performance obligations at contract inception based on the goods or services that are promised in a contract with a customer. Typical performance obligations include our promise to manufacture and the fulfillment of orders of specialty chemical products including coatings, linings, adhesives, sealants, specialty tapes, polymers and laminates, as well as custom manufacturing-related services. The transaction price in the contract is determined based on the consideration to which the Company will be entitled in exchange for transferring products and services to the customer, excluding amounts collected on behalf of third parties (for example, sales taxes). The transaction price is typically stated on the purchase order or in a negotiated agreement. Certain contracts may include variable consideration in the transaction price, such as rebates, pricing discounts, sales incentives, or other provisions that can decrease the transaction price. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based on reasonably available information (customer historical, current and forecasted data). In certain circumstances where a particular outcome is probable, the Company utilizes the most likely amount to which the Company expects to be entitled. The Company accounts for consideration payable to a customer as a reduction of the transaction price which reduces the amount of revenue recognized. Consideration payable to a customer includes cash amounts that the Company pays, or expects to pay, to a customer based on certain contract requirements. The Company recognizes revenue as performance obligations are satisfied, which can be either over time or at a point in time, depending on when control of the Company’s products transfers to its customers. For certain products, where the Company’s product consists partially or fully of customer-owned materials, revenue is recognized over time, and the Company makes significant judgments which include, but are not limited to, estimated costs to completion and costs incurred to date, and assesses risks related to changes in estimates of revenue and costs. In doing so, management must make assumptions regarding the work required to fulfill the performance obligations. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products to be provided. The Company generally uses the cost-to-cost measure of progress for contracts because it best depicts the transfer of control to the customer which occurs as costs are incurred on contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Performance Obligation Manufactured goods and, to a lesser extent, right of use of our intellectual property and custom manufacturing-related services are our performance obligations. Revenue related to our performance obligations is predominantly recognized at a point in time consistent with our shipping terms (upon shipment to or receipt by our customer). For certain products we manufacture, which comprise partially or fully of customer-owned material and which meet the criteria of having no alternative use whereby the Company has the right to payment, we recognize revenue over time. The selection of a method to measure progress toward completion of a contract requires judgment and is based on the nature of the products or services to be provided. We use the cost-to-cost method to measure the progress of our contracts with no-alternative-use products (given they comprise partially or fully of customer-owned material) whereby the Company has the right to payment as we believe it is the best depiction of the transferring of value to the customer. Under the cost-to-cost method, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the contract. Contract costs include labor, materials and subcontractors costs, as well as an allocation of indirect costs. Revenue, including estimated fees or profits, is recorded as costs are incurred. Specialty manufacturing runs for customers of products which are comprised partially or fully of customer-owned material predominantly occur over relatively short periods of time (less than one month) and are comprised of a one-step process (such as coating or laminating), promptly followed by shipment to the end customer. On-going custom manufacturing-related services performed for customers are recognized in the period the services are rendered, and as such do not carry over from period to period. Royalty revenue, derived from right of use of our intellectual property, is recognized when the subsequent sale of the licensed intellectual property occurs. Because performance obligations are typically satisfied within one month of receipt of a customer order, a change in cost estimates will not have a material impact on the percentage of completion noted at the prior quarter end. Our typical payment terms with customers are net 30 days, with consideration given to geographic and industry norms. Contract Balances The Company’s contract assets primarily relate to unbilled revenue for products currently in production, at the Company’s facilities and which comprise partially or fully of customer-owned material. Revenue is recognized in advance of billing to the customer in these specific circumstances, whereas billing is typically performed at the time of shipment to or receipt by the customer. Contract assets are included in prepaids and other current assets on the Company’s condensed consolidated balance sheets. The following table presents contract assets by reportable operating segment as of February 28, 2019: February 28, September 1, 2019 2018 Contract Assets Industrial Materials $ 77 $ 16 Construction Materials 98 64 Total $ 175 $ 80 The Company did not have any contract liabilities as of February 28, 2019. Impacts on Financial Statements The cumulative effect of the changes made to the Company’s condensed consolidated September 1, 2018 balance sheet for the adoption of ASC 606 was as follows: August 31, Adjustments for September 1, 2018 Adoption of ASC 606 2018 Assets: Contract assets $ — $ 80 $ 80 Inventory $ 39,699 $ (50) $ 39,649 Prepaid income taxes $ 4,100 $ (8) $ 4,092 Stockholders' equity: Retained earnings $ 245,049 $ 22 $ 245,071 The cumulative effect of the changes made to the Company’s condensed consolidated February 28, 2019 balance sheet for the adoption of ASC 606 was as follows: February 28, 2019 Balances Without ASC 606 As Adoption of ASC 606 Adjustments Reported Assets: Contract assets $ — $ 175 $ 175 Inventory $ 45,522 $ (104) $ 45,418 Prepaid income taxes $ 2,574 $ (18) $ 2,556 Stockholders' equity: Retained earnings $ 251,592 $ 53 $ 251,645 The cumulative effect of the changes made to the Company’s condensed consolidated statement of operations for the adoption of ASC 606 for the three and six months ended February 28, 2019 was as follows: Three Months Ended February 28, 2019 Six Months Ended February 28, 2019 Results Without Effect of Change As Results Without Effect of Change As Adoption of ASC 606 Higher (Lower) Reported Adoption of ASC 606 Higher (Lower) Reported Revenue Sales $ 65,452 $ (10) $ 65,442 $ 136,711 $ 95 $ 136,806 Royalties and commissions 1,189 — 1,189 2,328 — 2,328 66,641 (10) 66,631 139,039 95 139,134 Costs and Expenses Cost of products and services sold 43,204 9 43,213 89,734 54 89,788 Selling, general and administrative expenses 13,086 — 13,086 26,448 — 26,448 Loss on impairment of goodwill 2,410 — 2,410 2,410 — 2,410 Exit costs related to idle facility — — — 260 — 260 Operating income 7,941 (19) 7,922 20,187 41 20,228 Interest expense (162) — (162) (366) — (366) Other income (expense) (828) — (828) (1,122) — (1,122) Income before income taxes 6,951 (19) 6,932 18,699 41 18,740 Income taxes 1,664 (5) 1,659 4,634 10 4,644 Net income $ 5,287 $ (14) $ 5,273 $ 14,065 $ 31 $ 14,096 Net income available to common shareholders, per common and common equivalent share Basic $ 0.57 $ (0.01) $ 0.56 $ 1.50 $ — $ 1.50 Diluted $ 0.56 $ — $ 0.56 $ 1.49 $ — $ 1.49 Weighted average shares outstanding Basic 9,332,288 — 9,332,288 9,330,929 — 9,330,929 Diluted 9,373,030 — 9,373,030 9,377,167 — 9,377,167 Disaggregated Revenue The Company disaggregates revenue from customers by geographic region, as it believes this disclosure best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors. Disaggregated revenue by geographical region for the three and six months ended February 28, 2019 was as follows: Three Months Ended February 28, 2019 Six Months Ended February 28, 2019 Industrial Construction Consolidated Industrial Construction Consolidated Materials Materials Revenue Materials Materials Revenue Revenue North America $ 45,453 $ 7,519 $ 52,972 $ 94,092 $ 17,204 $ 111,296 Asia 6,576 1,376 7,952 13,825 3,272 17,097 Europe 4,515 437 4,952 8,096 1,150 9,246 All other foreign 721 34 755 1,412 83 1,495 Total Revenue $ 57,265 $ 9,366 $ 66,631 $ 117,425 $ 21,709 $ 139,134 Practical Expedients and Policy Elections Shipping and Handling Policy Election — the Company has made an accounting policy election to record shipping and handling activities occurring after control has passed to the customer to be treated as a fulfillment cost rather than as a distinct performance obligation. Shipping and handling expenses consist primarily of costs incurred to deliver products to customers and internal costs related to preparing products for shipment and are recorded within cost of products and services sold. Amounts billed to customers as shipping and handling are classified as revenue when services are performed. Considering Existence of a Significant Financing Component — as a practical expedient, an entity need not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects, at contract inception, that the period between when the entity transfers a promised good or service to the customer and when the customer pays for that good or service will be one year or less. Given the time between the Company transferring a promised good or service to the customer and the customer paying for that good or service is less than one year based on the terms of arrangements with customers, the Company does not adjust the promised amount of consideration for effects of a significant financing component.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Feb. 28, 2019
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 agreed to that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all its litigation and threatened litigation as to the probability of ultimately incurring a liability and records its best estimate of the ultimate loss in situations where we assess the likelihood of loss as probable.

Pensions and Other Postretireme

Pensions and Other Postretirement Benefits	6 Months Ended
	Feb. 28, 2019
Pensions and Other Postretirement Benefits
Pensions and Other Postretirement Benefits	Note 11 — Pensions and Other Postretirement Benefits The components of net periodic benefit cost for the three and six months ended February 28, 2019 and 2018 were as follows: Three Months Ended February 28, Six Months Ended February 28, 2019 2018 2019 2018 Components of net periodic benefit cost Service cost $ 73 $ 71 $ 146 $ 142 Interest cost 178 157 356 314 Expected return on plan assets (109) (116) (221) (232) Amortization of prior service cost 1 1 2 2 Amortization of accumulated loss 119 121 237 242 Settlement and curtailment loss 273 — 473 — Net periodic benefit cost $ 535 $ 234 $ 993 $ 468 When funding is required, the Company’s policy is to contribute amounts that are deductible for federal income tax purposes. As of February 28, 2019, the Company has made contributions of $784 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 2019 to ensure the qualified plans continue to be adequately funded given the current market conditions. The Company made contributions of $810 in the first six months of the prior year. In fiscal 2019, the Company adopted ASU No. 2017-07, “Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This resulted in the reclassification of $326, previously reported in selling, general and administrative expense to other income (expense) for the six-month period ended February 28, 2018 (prior year).

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Feb. 28, 2019
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 are: 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 28, 2019 and August 31, 2018 represent investments that are restricted for use in nonqualified retirement savings plans 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 28, 2019 and August 31, 2018: 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 28, 2019 $ 1,118 $ 968 150 — Restricted investments August 31, 2018 $ 1,090 $ 961 129 — The following table presents the fair value of the Company’s long-term debt (including any current portion of long-term debt) as of February 28, 2019 and August 31, 2018, 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 28, 2019 $ 6,000 $ — 6,000 — Long-term debt August 31, 2018 $ 25,000 $ — 25,000 — The carrying value of the long-term debt approximates its fair value, as the interest rate is set based on the movement of the underlying market rates. See Note 16 to the condensed consolidated financial statements for additional information on long-term debt.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	6 Months Ended
	Feb. 28, 2019
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 Plans Adjustment Total Balance at August 31, 2017 $ 121 $ (6,181) $ (7,409) $ (13,469) Other comprehensive gains (losses) before reclassifications (1) 49 — 3,670 3,719 Reclassifications to net income of previously deferred (gains) losses (2) (67) 185 — 118 Other comprehensive income (loss) (18) 185 3,670 3,837 Balance at February 28, 2018 $ 103 $ (5,996) $ (3,739) $ (9,632) Balance at August 31, 2018 $ 126 $ (5,796) $ (6,666) $ (12,336) Other comprehensive gains (losses) before reclassifications (3) (11) — 538 527 Reclassifications to net income of previously deferred (gains) losses (4) 3 527 — 530 Other comprehensive income (loss) (8) 527 538 1,057 Balance at February 28, 2019 $ 118 $ (5,269) $ (6,128) $ (11,279) (1) Net of tax benefit of $17, $0 and $0, respectively. (2) Net of tax expense of $24, tax benefit of $59 and $0, respectively. (3) Net of tax expense of $5, $0 and $0, respectively. (4) Net of tax benefit of $1, $184 and $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 February 28, Six Months Ended February 28, Location of Gain (Loss) Reclassified from Accumulated 2019 2018 2019 2018 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized loss (gain) on sale of restricted investments $ (13) $ (90) $ 4 $ (91) Selling, general and administrative expenses Tax expense (benefit) 3 23 (1) 24 Gain net of tax $ (10) $ (67) $ 3 $ (67) Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ 119 $ 122 $ 238 $ 244 Other income (expense) Settlement and curtailment loss 273 — 473 — Other income (expense) Tax expense (benefit) (101) (17) (184) (59) Loss net of tax $ 291 $ 105 $ 527 $ 185 Total net loss reclassified for the period $ 281 $ 38 $ 530 $ 118

Acquisitions

Acquisitions	6 Months Ended
	Feb. 28, 2019
Acquisitions
Acquisitions	Note 14 — Acquisitions Acquisition of Zappa Stewart On December 31, 2017, the Company acquired Zappa Stewart, an advanced superabsorbent polymer (SAP) formulator and solutions provider, with operations located in Hickory and McLeansville, NC. The business was acquired for a purchase price of $73,469, after final working capital adjustments and excluding acquisition-related costs. Chase acquired all equity of the business and entered multiyear leases at both locations. The purchase was funded by a combination of a $65,000 draw on Chase’s existing revolving credit facility and available cash on hand. Zappa Stewart’s protective materials technology is complementary to Chase’s current specialty chemicals offerings. This acquisition is in line with Chase’s core strategies and extends its reach into growing medical and consumer applications. Since the effective date for this acquisition, December 31, 2017, the financial results of the acquired business have been included in the Company’s financial statements within the Industrial Materials operating segment, in the specialty chemical intermediates product line. The acquisition was accounted for as a business combination under ASC Topic 805, “Business Combinations.” In accordance with this accounting standard, the Company expensed $393 of acquisition-related costs during the second quarter of 2018 to acquisition-related costs. The Company finalized purchase accounting in the three-month period ended November 30, 2018, with no adjustments made to the preliminary amounts recorded at August 31, 2018. 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 Accounts receivable $ 3,670 Inventory 6,796 Prepaid expenses and other current assets 12 Property, plant & equipment 1,872 Goodwill 34,138 Intangible assets 30,240 Deferred tax liability (2,626) Accounts payable and accrued liabilities (633) Total purchase price $ 73,469 The excess of the purchase price over the net tangible and intangible assets acquired resulted in goodwill of $34,138 that is largely attributable to the synergies and economies of scale from combining the operations, technologies and research and development capabilities of Zappa Stewart and Chase, particularly as it pertains to the expansion of the Company's product and service offerings, the established workforce and marketing efforts. A portion of this goodwill, $23,990, is deductible for income tax purposes. All assets, including goodwill, acquired as part of the Zappa Stewart acquisition are included in the Industrial Materials operating segment. Identifiable intangible assets purchased with this transaction are as follows: Weighted Average Intangible Asset Amount Useful life Customer relationships $ 28,500 7.9 years Technology 900 7 years Trade names 840 4 years Total intangible assets $ 30,240 Supplemental Pro Forma Data The following table presents the pro forma results of the Company for the three-month and six-month periods ended February 28, 2018 (prior year) as though the Zappa Stewart acquisition described above occurred on September 1, 2016 (the first day of fiscal 2017). The actual revenue and expenses for the acquired business are included in the Company’s consolidated results beginning on December 31, 2017. For the six months ended February 28, 2019, revenue and net income for the Zappa Stewart operations included in the condensed consolidated statement of operations were $13,075 and $667, respectively, with results inclusive of amortization expense, but not inclusive of any interest or financing costs. The pro forma results include adjustments for the estimated amortization of intangibles, acquisition-related costs, sale of inventory step-up cost, interest expense assuming the entire $65,000 draw remained outstanding through December 31, 2017 (at the interest rate effective at the date of borrowing) and the income tax impact of the pro forma adjustments at the statutory rate of 26% for fiscal 2018. 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, 2016. Three Months Ended February 28, Six Months Ended February 28, 2018 2018 Revenue $ 67,980 $ Net income 11,671 Net income available to common shareholders, per common and common equivalent share Basic earnings per share $ 1.24 $ 2.17 Diluted earnings per share $ 1.24 $ 2.16

Exit Costs Related to Idle Faci

Exit Costs Related to Idle Facility	6 Months Ended
	Feb. 28, 2019
Exit Costs Related to Idle Facility
Exit Costs Related to Idle Facility	Note 15 — Exit Costs Related to Idle Facility On June 25, 2018, the Company announced to its employees the planned closing of its Pawtucket, RI manufacturing facility effective August 31, 2018. This is in line with the Company’s ongoing efforts to consolidate its manufacturing plants and streamline its existing processes. The manufacture of products previously produced in the Pawtucket, RI facility was substantially moved to Company facilities in Oxford, MA and Lenoir, NC during a two-month transition period. In the fourth quarter of fiscal 2018, the Company expensed $1,272 related to the closure, including: (a) cash-related employee-related, logistics and uncapitalized facilities improvement costs of $590; and (b) non-cash-related accelerated depreciation expense of $682. The Company also recognized $260 in expense related to the move in the three-month period ended November 30, 2018, with no additional expense recognized in the quarter ended February 28, 2019. Future costs related to this move are not anticipated to be significant to the condensed consolidated financial statements.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Feb. 28, 2019
Long-Term Debt
Long-Term Debt	Note 16 — Long-Term Debt On December 15, 2016, the Company entered an Amended and Restated Credit Agreement (the “Credit Agreement”) with Bank of America, acting as administrative agent, and with participation from Citizens Bank and JPMorgan Chase Bank (collectively with Bank of America, the “Lenders”). The Credit Agreement is initially an all-revolving credit facility with a borrowing capacity of $150,000, which can be increased by an additional $50,000 at the request of the Company and the individual or collective option of any of the Lenders. The Credit Agreement contains customary affirmative and negative covenants that, among other things, restrict our ability to incur additional indebtedness and require lender approval for acquisitions by the Company and its subsidiaries over a certain size. It also requires us to maintain certain financial ratios on a consolidated basis, including a consolidated net leverage ratio (as defined in the facility) of no more than 3.25 to 1.00, and a consolidated fixed charge coverage ratio (as defined in the facility) of at least 1.25 to 1.00. We were in compliance with our debt covenants as of February 28, 2019. The Credit Agreement is guaranteed by all of Chase’s direct and indirect domestic subsidiaries, including NEPTCO, which collectively had a carrying value of $219,488 at February 28, 2019. The Credit Agreement was entered both to refinance our previously existing term loan and revolving line of credit, and to provide for additional liquidity to finance potential acquisitions, working capital, capital expenditures, and for other general corporate purposes. The applicable interest rate for the revolver portion of the Credit Agreement (the “Revolving Facility”) and any Term Loan (defined below) is based on the effective London Interbank Offered Rate (LIBOR) plus an additional amount in the range of 1.00% to 1.75%, depending on the consolidated net leverage ratio of Chase and its subsidiaries. At February 28, 2019, the applicable interest rate was 3.6% per annum and the outstanding principal amount was $6,000. The Credit Agreement has a five-year term with interest payments due at the end of the applicable LIBOR period (but in no event less frequently than the three-month anniversary of the commencement of such LIBOR period) and principal payment due at the expiration of the agreement, December 15, 2021. In addition, the Company may elect a base rate option for all or a portion of the Revolving Facility, in which case, interest payments shall be due with respect to such portion of the Revolving Facility on the last business day of each quarter. Subject to certain conditions set forth in the Credit Agreement, the Company may elect to convert all or a portion of the outstanding Revolving Facility into a term loan (each, a “Term Loan”), which shall be payable quarterly in equal installments sufficient to amortize the original principal amount of such Term Loan on a seven year amortization schedule; provided, however, that the final principal repayment installment shall be repaid on December 15, 2021 and in any event shall be in an amount equal to the aggregate principal amount of all Term Loans outstanding on such date. Prepayment is allowed by the Credit Agreement at any time during the term of the agreement, subject to customary notice requirements. In December 2017 (the prior fiscal year), the Company utilized $65,000 of the Credit Agreement to finance the majority of the acquisition cost of Zappa Stewart. See Note 14 to the condensed consolidated financial statements for additional information on this acquisition. The Company paid down $40,000 of the outstanding balance in fiscal 2018, and made additional principal payments of $10,000 and $9,000 in the first and second quarters of fiscal 2019, respectively, resulting in an outstanding balance of $6,000 at February 28, 2019. In March 2019, subsequent to the second fiscal quarter 2019, the Company made an additional principal payment of $1,000.

Sale of License

Sale of License	6 Months Ended
	Feb. 28, 2019
Sale of License
Sale of License	Note 17 — Sale of License In November 2017, the Company entered a license agreement with an unrelated party to sell a license, including intellectual property, and certain construction in process assets, with a net book value of $26 and all related to the manufacturing of certain structural composite materials. In the second fiscal quarter of 2018, the transaction was finalized for gross consideration of $1,111 comprising cash proceeds of $1,000 and $111 in foreign tax consideration paid by the buyer on Chase’s behalf. This transaction resulted in a gain of $1,085, which was recorded in the Company’s condensed consolidated statement of operations as a gain on sale of license during the fiscal quarter ended February 28, 2018. In relation to this license agreement, the purchaser also entered into a royalty agreement with the Company. The purchaser will make royalty payments to Chase under certain conditions based on the volume of future sales of certain structural composite materials manufactured by the purchaser. Revenue recognized related to this royalty agreement in fiscal 2019 and 2018 was not material.

Income Taxes

Income Taxes	6 Months Ended
	Feb. 28, 2019
Income Taxes
Income Taxes	Note 18 — Income Taxes For the three months ended February 28, 2019 and 2018, the Company recorded income taxes of $1,659 and $1,618 on income before income taxes of $6,932 and $11,740, respectively. For the six months ended February 28, 2019 and 2018, the Company recorded income taxes of $4,644 and $5,902 on income before income taxes of $18,740 and $24,339, respectively. The effective tax rate for the three months ended February 28, 2019 and 2018 was 23.9% and 13.8%, respectively. The effective tax rate for the six months ended February 28, 2019 and 2018 was 24.8% and 24.2%, respectively. The lower effective rate in the second quarter of the prior year was due to the following: (a) the initial adoption of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), described in more detail below; and (b) a discrete tax benefit of $977 related to stock-based compensation, recognized in relation to the Company’s early adoption of ASU 2016-09. On December 22, 2017, President Trump signed into law the Tax Act. The Tax Act impacted the U.S. statutory Federal tax rate that the Company will be subject to going forward, reducing it from 35% to 21%. As the Company has an August 31 fiscal year-end, the lower corporate income tax rate was phased in during fiscal 2018 (the year of initial adoption), resulting in the Company applying U.S. statutory Federal rates of 21% and a blended rate of 25.7% for our fiscal years ending August 31, 2019 and 2018, respectively. To transition to the reduced U.S. corporate tax rate, an adjustment was required to be made to our net U.S. deferred tax assets. During fiscal 2018, predominantly in the three months ended February 28, 2018 (the second fiscal quarter of 2018), the Company recorded initial provisional adjustments to the U.S. deferred tax assets and liabilities and uncertain tax positions resulting in a net discrete tax expense of $681 recorded to the condensed consolidated statement of operations. This net discrete tax expense recorded in fiscal 2018 is the result of the following: (a) a $379 tax benefit resulting from the remeasurement and reclassification of our existing deferred tax liability related to unrepatriated foreign earnings to accrued income tax balance (discussed in more detail below); (b) a $917 tax expense for the remeasurement of the remaining net U.S. deferred tax assets in recognition of the new lower Federal rate; and (c) a $143 tax expense recorded as the result of remeasuring the Federal benefit on our uncertain tax positions. During fiscal 2019, no additional transitional adjustments were made related to the adoption of the Tax Act in the quarter ended November 30, 2018, and only immaterial adjustments were made in the quarter ended February 28, 2019. The Tax Act includes a transition tax or “toll charge”, which is a one-time tax charge on unrepatriated foreign earnings. The calculation of accumulated foreign earnings requires an analysis of each foreign entity’s financial results going back to 1986. During fiscal 2018, the Company recorded a provisional transition tax adjustment associated with its accumulated unrepatriated foreign earnings reducing long-term deferred tax liabilities by $2,298 and increasing short and long-term accrued income taxes by $153 and $1,766, respectively (the short-term payable representing eight percent of the total amount due, the amount payable within the first year as per the Tax Act). The difference between the decrease in the deferred tax liabilities for unrepatriated foreign earnings and the increase in accrued income taxes, $379, was recorded as a discrete tax benefit in fiscal 2018. Under the guidance set forth in the SEC's Staff Accounting Bulletin No. 118 (“SAB 118”), the Company may record provisional amounts for the impact of the Tax Act. For the second quarter of fiscal 2018, the Company made a provisional and reasonable estimate of the effects of the Tax Act on its existing deferred tax balances, including a provisional adjustment for the toll charge, and made provisional adjustments to these initially recorded amounts in the third and fourth quarters of fiscal 2018. The Company made complete and final adjustments during the quarter ended February 28, 2019 (the second quarter of fiscal 2019), which were not material in nature. During the quarter ended November 30, 2018 (the first quarter of fiscal 2019), the Company began recognizing an additional component of total Federal tax expense, the tax on Global Intangible Low-Taxed Income (“GILTI”) provision of the Tax Act, which became applicable to the Company in fiscal 2019. The Company elected to account for GILTI as a period cost, and therefore included GILTI expense in the effective tax rate calculation. This provision did not have a material effect on the effective tax rate for the quarter or six-month period ended February 28, 2019. The Company concluded that the Base Erosion and Anti Abuse Tax (“BEAT”) provision of the Tax Act (which also became applicable to the Company in fiscal 2019) had no effect on our effective tax rate for the current quarter or year-to-date period. Additionally, the Company is deferring the application of Foreign-Derived Intangible Income (“FDII”) for the current period, in anticipation of further guidance and the establishment of industry standards by the U.S. Treasury Department and trade associations.

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Feb. 28, 2019
Inventory
Schedule of inventory	February 28, 2019 August 31, 2018 Raw materials $ 22,706 $ 21,998 Work in process 8,463 7,653 Finished goods 14,249 10,048 Total Inventory $ 45,418 $ 39,699

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Feb. 28, 2019
Net Income Per Share
Schedule of determination of earnings per share under the two-class method	Three Months Ended February 28, Six Months Ended February 28, 2019 2018 2019 2018 Basic Earnings per Share Net income $ 5,273 $ 10,122 $ 14,096 $ 18,437 Less: Allocated to participating securities Net income available to common shareholders $ 5,232 $ 10,026 $ 13,986 $ 18,261 Basic weighted average shares outstanding Net income per share - Basic $ 0.56 $ 1.08 $ 1.50 $ 1.97 Diluted Earnings per Share Net income $ 5,273 $ 10,122 $ 14,096 $ 18,437 Less: Allocated to participating securities Net income available to common shareholders $ 5,232 $ 10,026 $ 13,986 $ 18,261 Basic weighted average shares outstanding Additional dilutive common stock equivalents Diluted weighted average shares outstanding Net income per share - Diluted $ 0.56 $ 1.07 $ 1.49 $ 1.95

Segment Data and Foreign Oper_2

Segment Data and Foreign Operations (Tables)	6 Months Ended
	Feb. 28, 2019
Segment Data and Foreign Operations
Summary of information about the Company's reportable segments	Three Months Ended February 28, Six Months Ended February 28, 2019 2018 2019 2018 Revenue Industrial Materials $ 57,265 $ 55,267 $ 117,425 $ 105,252 Construction Materials 9,366 10,608 21,709 22,540 Total $ 66,631 $ 65,875 $ 139,134 $ 127,792 Income before income taxes Industrial Materials $ 12,269 (a) $ 16,161 (c) $ 27,072 (e) $ 31,526 (c) Construction Materials 2,384 2,372 6,850 6,618 Total for reportable segments 14,653 18,533 33,922 38,144 Corporate and common costs (7,721) (b) (6,793) (d) (15,182) (f) (13,805) (d) Total $ 6,932 $ 11,740 $ 18,740 $ 24,339 Includes the following costs by segment: Industrial Materials Interest $ 130 $ 352 $ 293 $ 388 Depreciation 820 905 1,659 1,705 Amortization 2,789 2,591 5,579 4,578 Construction Materials Interest $ 32 $ 88 $ 73 $ 97 Depreciation 164 187 339 377 Amortization 323 328 646 655 (a) Includes $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business (b) Includes $273 of pension-related settlement costs due to the timing of lump-sum distributions (c) Includes $1,530 of expenses related to inventory step-up in fair value attributable to the December 2017 acquisition of Zappa Stewart and a $1,085 gain on sale of license related to the structural composites product line recorded in the second quarter of fiscal 2018 (d) Includes $393 in acquisition-related expenses attributable to the December 2017 acquisition of Zappa Stewart (e) Includes $260 of expense related to the closure and exit of our Pawtucket, RI location recognized in the first quarter of fiscal 2019 and $2,410 of loss on impairment of goodwill related to the Company’s polyurethane dispersions business (f) Includes $473 of pension-related settlement costs due to the timing of lump-sum distributions Total assets for the Company’s reportable segments as of February 28, 2019 and August 31, 2018 were: February 28, August 31, 2019 2018 Total Assets Industrial Materials $ 226,433 $ 229,559 Construction Materials 32,827 36,757 Total for reportable segments 259,260 266,316 Corporate and common assets 40,863 50,153 Total $ 300,123 $ 316,469 The Company’s products are sold worldwide. Revenue for the three- and six-month periods ended February 28, 2019 and 2018 were attributed to operations located in the following countries: Three Months Ended February 28, Six Months Ended February 28, 2019 2018 2019 2018 Revenue United States $ 57,942 $ 55,978 $ 122,293 $ 108,455 United Kingdom 4,428 5,392 8,444 9,789 All other foreign (1) 4,261 4,505 8,397 9,548 Total $ 66,631 $ 65,875 $ 139,134 $ 127,792 (1) Comprises sales originated from our Paris, France location, royalty revenue attributable to our licensed manufacturer in Asia, and Chase foreign manufacturing operations.
Schedule of total assets for the Company's reportable segments	February 28, August 31, 2019 2018 Long-Lived Assets United States Property, plant and equipment, net $ 27,119 $ 28,770 Goodwill and Intangible assets, less accumulated amortization 135,166 143,539 United Kingdom Property, plant and equipment, net 2,871 2,911 Goodwill and Intangible assets, less accumulated amortization 5,100 5,239 All other foreign Property, plant and equipment, net 1,696 1,164 Goodwill and Intangible assets, less accumulated amortization 1,220 1,248 Total Property, plant and equipment, net $ 31,686 $ 32,845 Goodwill and Intangible assets, less accumulated amortization $ 141,486 $ 150,026

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	6 Months Ended
	Feb. 28, 2019
Goodwill and Other Intangibles
Schedule of changes in the carrying value of goodwill	Industrial Construction Materials Consolidated Balance at August 31, 2018 $ 74,002 $ 10,694 $ 84,696 Loss on impairment of polyurethane dispersions business (2,410) — (2,410) Foreign currency translation adjustment 44 4 48 Balance at February 28, 2019 $ 71,636 $ 10,698 $ 82,334
Schedule of intangible assets subject to amortization	Weighted Average Gross Carrying Accumulated Net Carrying Amortization Period Value Amortization Value February 28, 2019 Patents and agreements years $ 1,885 $ 1,687 $ 198 Formulas and technology years 10,245 7,377 2,868 Trade names years 8,571 7,106 1,465 Customer lists and relationships years 98,890 44,269 54,621 $ 119,591 $ 60,439 $ 59,152 August 31, 2018 Patents and agreements years $ 1,863 $ 1,681 $ 182 Formulas and technology years 10,225 6,690 3,535 Trade names years 8,554 6,866 1,688 Customer lists and relationships years 98,727 38,802 59,925 $ 119,369 $ 54,039 $ 65,330
Schedule of estimated amortization expense	Years ending August 31, 2019 (remaining 6 months) $ 6,237 2020 11,594 2021 11,064 2022 10,035 2023 6,768 2024 5,659

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Feb. 28, 2019
Revenue from Contracts with Customers
Schedule of contract assets by reportable operating segment	February 28, September 1, 2019 2018 Contract Assets Industrial Materials $ 77 $ 16 Construction Materials 98 64 Total $ 175 $ 80
Schedule of cumulative effect of adoption of ASC 606	The cumulative effect of the changes made to the Company’s condensed consolidated September 1, 2018 balance sheet for the adoption of ASC 606 was as follows: August 31, Adjustments for September 1, 2018 Adoption of ASC 606 2018 Assets: Contract assets $ — $ 80 $ 80 Inventory $ 39,699 $ (50) $ 39,649 Prepaid income taxes $ 4,100 $ (8) $ 4,092 Stockholders' equity: Retained earnings $ 245,049 $ 22 $ 245,071 The cumulative effect of the changes made to the Company’s condensed consolidated February 28, 2019 balance sheet for the adoption of ASC 606 was as follows: February 28, 2019 Balances Without ASC 606 As Adoption of ASC 606 Adjustments Reported Assets: Contract assets $ — $ 175 $ 175 Inventory $ 45,522 $ (104) $ 45,418 Prepaid income taxes $ 2,574 $ (18) $ 2,556 Stockholders' equity: Retained earnings $ 251,592 $ 53 $ 251,645 The cumulative effect of the changes made to the Company’s condensed consolidated statement of operations for the adoption of ASC 606 for the three and six months ended February 28, 2019 was as follows: Three Months Ended February 28, 2019 Six Months Ended February 28, 2019 Results Without Effect of Change As Results Without Effect of Change As Adoption of ASC 606 Higher (Lower) Reported Adoption of ASC 606 Higher (Lower) Reported Revenue Sales $ 65,452 $ (10) $ 65,442 $ 136,711 $ 95 $ 136,806 Royalties and commissions 1,189 — 1,189 2,328 — 2,328 66,641 (10) 66,631 139,039 95 139,134 Costs and Expenses Cost of products and services sold 43,204 9 43,213 89,734 54 89,788 Selling, general and administrative expenses 13,086 — 13,086 26,448 — 26,448 Loss on impairment of goodwill 2,410 — 2,410 2,410 — 2,410 Exit costs related to idle facility — — — 260 — 260 Operating income 7,941 (19) 7,922 20,187 41 20,228 Interest expense (162) — (162) (366) — (366) Other income (expense) (828) — (828) (1,122) — (1,122) Income before income taxes 6,951 (19) 6,932 18,699 41 18,740 Income taxes 1,664 (5) 1,659 4,634 10 4,644 Net income $ 5,287 $ (14) $ 5,273 $ 14,065 $ 31 $ 14,096 Net income available to common shareholders, per common and common equivalent share Basic $ 0.57 $ (0.01) $ 0.56 $ 1.50 $ — $ 1.50 Diluted $ 0.56 $ — $ 0.56 $ 1.49 $ — $ 1.49 Weighted average shares outstanding Basic 9,332,288 — 9,332,288 9,330,929 — 9,330,929 Diluted 9,373,030 — 9,373,030 9,377,167 — 9,377,167
Schedule of disaggregation of revenue	Three Months Ended February 28, 2019 Six Months Ended February 28, 2019 Industrial Construction Consolidated Industrial Construction Consolidated Materials Materials Revenue Materials Materials Revenue Revenue North America $ 45,453 $ 7,519 $ 52,972 $ 94,092 $ 17,204 $ 111,296 Asia 6,576 1,376 7,952 13,825 3,272 17,097 Europe 4,515 437 4,952 8,096 1,150 9,246 All other foreign 721 34 755 1,412 83 1,495 Total Revenue $ 57,265 $ 9,366 $ 66,631 $ 117,425 $ 21,709 $ 139,134

Pensions and Other Postretire_2

Pensions and Other Postretirement Benefits (Tables)	6 Months Ended
	Feb. 28, 2019
Pensions and Other Postretirement Benefits
Schedule of components of net periodic benefit cost	Three Months Ended February 28, Six Months Ended February 28, 2019 2018 2019 2018 Components of net periodic benefit cost Service cost $ 73 $ 71 $ 146 $ 142 Interest cost 178 157 356 314 Expected return on plan assets (109) (116) (221) (232) Amortization of prior service cost 1 1 2 2 Amortization of accumulated loss 119 121 237 242 Settlement and curtailment loss 273 — 473 — Net periodic benefit cost $ 535 $ 234 $ 993 $ 468

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Feb. 28, 2019
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 28, 2019 $ 1,118 $ 968 150 — Restricted investments August 31, 2018 $ 1,090 $ 961 129 —
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 28, 2019 $ 6,000 $ — 6,000 — Long-term debt August 31, 2018 $ 25,000 $ — 25,000 —

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Feb. 28, 2019
Accumulated Other Comprehensive Income
Schedule of changes in accumulated other comprehensive income (loss), net of tax	Change in Funded Foreign Currency Restricted Status of Translation Investments Pension Plans Adjustment Total Balance at August 31, 2017 $ 121 $ (6,181) $ (7,409) $ (13,469) Other comprehensive gains (losses) before reclassifications (1) 49 — 3,670 3,719 Reclassifications to net income of previously deferred (gains) losses (2) (67) 185 — 118 Other comprehensive income (loss) (18) 185 3,670 3,837 Balance at February 28, 2018 $ 103 $ (5,996) $ (3,739) $ (9,632) Balance at August 31, 2018 $ 126 $ (5,796) $ (6,666) $ (12,336) Other comprehensive gains (losses) before reclassifications (3) (11) — 538 527 Reclassifications to net income of previously deferred (gains) losses (4) 3 527 — 530 Other comprehensive income (loss) (8) 527 538 1,057 Balance at February 28, 2019 $ 118 $ (5,269) $ (6,128) $ (11,279) (1) Net of tax benefit of $17, $0 and $0, respectively. (2) Net of tax expense of $24, tax benefit of $59 and $0, respectively. (3) Net of tax expense of $5, $0 and $0, respectively. (4) Net of tax benefit of $1, $184 and $0, respectively.
Summary of the reclassifications from accumulated other comprehensive income (loss) to the condensed consolidated statements of income	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Three Months Ended February 28, Six Months Ended February 28, Location of Gain (Loss) Reclassified from Accumulated 2019 2018 2019 2018 Other Comprehensive Income (Loss) into Income Gains on Restricted Investments: Realized loss (gain) on sale of restricted investments $ (13) $ (90) $ 4 $ (91) Selling, general and administrative expenses Tax expense (benefit) 3 23 (1) 24 Gain net of tax $ (10) $ (67) $ 3 $ (67) Loss on Funded Pension Plan adjustments: Amortization of prior pension service costs and unrecognized losses $ 119 $ 122 $ 238 $ 244 Other income (expense) Settlement and curtailment loss 273 — 473 — Other income (expense) Tax expense (benefit) (101) (17) (184) (59) Loss net of tax $ 291 $ 105 $ 527 $ 185 Total net loss reclassified for the period $ 281 $ 38 $ 530 $ 118

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Feb. 28, 2019
Schedule of pro forma information	Three Months Ended February 28, Six Months Ended February 28, 2018 2018 Revenue $ 67,980 $ Net income 11,671 Net income available to common shareholders, per common and common equivalent share Basic earnings per share $ 1.24 $ 2.17 Diluted earnings per share $ 1.24 $ 2.16
Zappa Stewart
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 Accounts receivable $ 3,670 Inventory 6,796 Prepaid expenses and other current assets 12 Property, plant & equipment 1,872 Goodwill 34,138 Intangible assets 30,240 Deferred tax liability (2,626) Accounts payable and accrued liabilities (633) Total purchase price $ 73,469
Schedule of identifiable intangible assets purchased as part of business acquisition	Weighted Average Intangible Asset Amount Useful life Customer relationships $ 28,500 7.9 years Technology 900 7 years Trade names 840 4 years Total intangible assets $ 30,240

Basis of Financial Statement _2

Basis of Financial Statement Presentation (Details) - USD ($) $ in Thousands	Jun. 25, 2018	Apr. 20, 2018	Dec. 31, 2017	Feb. 28, 2019	Nov. 30, 2018	Aug. 31, 2018	May 31, 2018	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Proceeds from sale of businesses									$ 400
Exit costs related to idle facility									260
Zappa Stewart
Purchase price			$ 73,469
Acquisition related expenses								$ 393
Zappa Stewart | Minimum
Combined revenue			$ 24,000
Structural Composites Rod Business
Total proceeds received or to be received		$ 2,232
Gain on assets sold		$ 1,480
Proceeds from sale of businesses						$ 157	$ 2,075
Pawtucket, RI Manufacturing Facility
Transition period	2 months
Exit costs related to idle facility				$ 0	$ 260	1,272
Cash-related employee-related, logistics and uncapitalized facility improvement costs						590
Non-cash-related accelerated depreciation expense						$ 682
Other income (expense)
Foreign currency translation gain (loss)				$ (468)				$ (324)	$ (416)	$ (677)

Recent Accounting Standards (De

Recent Accounting Standards (Details) - USD ($) $ in Thousands	Sep. 01, 2018	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018	Aug. 31, 2018
Recently Adopted Accounting Pronouncements
Net sales		$ 66,631	$ 65,875	$ 139,134	$ 127,792
Retained earnings	$ 245,071	251,645		251,645		$ 245,049
Net income		5,273	10,122	14,096	18,437
Selling, general and administrative expense		13,086	11,975	26,448	23,871
ASU 2017-07
Recently Adopted Accounting Pronouncements
Selling, general and administrative expense			$ 163		$ 326
Impact of Adoption of ASU 606
Recently Adopted Accounting Pronouncements
Net sales		(10)		95
Retained earnings	22	53		53
Net income		(14)		31
Impact of Adoption of ASU 606 | ASU 2014-09
Recently Adopted Accounting Pronouncements
Net sales	80	(10)		95
Retained earnings	$ 22
Net income		$ (14)		$ 31

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Feb. 28, 2019	Sep. 01, 2018	Aug. 31, 2018
Inventory
Raw materials	$ 22,706		$ 21,998
Work in process	8,463		7,653
Finished goods	14,249		10,048
Total Inventory	$ 45,418	$ 39,649	$ 39,699

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Basic Earnings per Share
Net income	$ 5,273	$ 10,122	$ 14,096	$ 18,437
Less: Allocated to participating securities	41	96	110	176
Net income available to common shareholders	$ 5,232	$ 10,026	$ 13,986	$ 18,261
Basic weighted average shares outstanding	9,332,288	9,289,372	9,330,929	9,285,604
Net income per share - Basic (in dollars per share)	$ 0.56	$ 1.08	$ 1.50	$ 1.97
Diluted Earnings per Share
Net income	$ 5,273	$ 10,122	$ 14,096	$ 18,437
Less: Allocated to participating securities	41	96	110	176
Net income available to common shareholders	$ 5,232	$ 10,026	$ 13,986	$ 18,261
Basic weighted average shares outstanding	9,332,288	9,289,372	9,330,929	9,285,604
Additional dilutive common stock equivalents (in shares)	40,742	39,936	46,238	71,243
Diluted weighted average shares outstanding	9,373,030	9,329,308	9,377,167	9,356,847
Net income per share - Diluted (in dollars per share)	$ 0.56	$ 1.07	$ 1.49	$ 1.95
Antidilutive securities
Antidilutive stock options excluded from computation of earnings per share amount (in shares)	15,625	6,416,000	14,022	9,622,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands	Sep. 01, 2017item$ / sharesshares	Feb. 28, 2019USD ($)shares	Sep. 30, 2018shares	Aug. 31, 2018shares
Restricted stock
Stock-Based Compensation
Shares forfeited			2,472
Restricted stock | Non - Employee Directors
Stock-Based Compensation
Shares granted		4,599
Grant date value | $		$ 469
Vesting period		12 months
2018 LTIP | Performance and service based restricted stock | Executive officers and other members of management
Stock-Based Compensation
Shares granted				572
Cumulative shares granted				4,821
2018 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2020 vesting date
Stock-Based Compensation
Shares granted	4,249
2019 LTIP | Performance and service based restricted stock | Executive officers and other members of management | August 31, 2021 vesting date
Stock-Based Compensation
Shares granted	3,541
2019 LTIP | Time-based restricted stock | Executive officers and other members of management | August 31, 2021 vesting date
Stock-Based Compensation
Shares granted	3,068
2019 LTIP | Stock options | Executive officers and other members of management
Stock-Based Compensation
Number Options Outstanding (in shares)	8,603
Weighted Average Exercise Price (in dollars per share) | $ / shares	$ 123.95
Number of equal annual allotments in which awards will vest | item	3
Stock options expiring earlier (in shares)	3,927
Stock options expiring later (in shares)	4,676

Segment Data and Foreign Oper_3

Segment Data and Foreign Operations (Details) $ in Thousands	3 Months Ended				6 Months Ended
	Feb. 28, 2019USD ($)	Nov. 30, 2018USD ($)	Aug. 31, 2018USD ($)	Feb. 28, 2018USD ($)	Feb. 28, 2019USD ($)segment	Feb. 28, 2018USD ($)
Segment data
Number of operating segments | segment					2
Revenue	$ 66,631			$ 65,875	$ 139,134	$ 127,792
Income before income taxes	6,932			11,740	18,740	24,339
Interest	162			440	366	485
Depreciation					2,491	2,618
Amortization					6,225	5,233
Impairment of goodwill	2,410				2,410
Total assets	300,123		$ 316,469		300,123
Exit costs related to idle facility					260
Inventory Step up to Fair Value						1,530
Gain on sale of license				1,085		1,085
Acquisition-related costs (Note 14)				393		393
Settlement and curtailment loss	273				473
Zappa Stewart
Segment data
Revenue					13,075
Acquisition-related costs (Note 14)				393
Pawtucket, RI Manufacturing Facility
Segment data
Exit costs related to idle facility	0	$ 260	1,272
Industrial Materials
Segment data
Revenue	57,265			55,267	117,425	105,252
Income before income taxes	12,269			16,161	27,072	31,526
Interest	130			352	293	388
Depreciation	820			905	1,659	1,705
Amortization	2,789			2,591	5,579	4,578
Impairment of goodwill	2,410				2,410
Total assets	226,433		229,559		226,433
Gain on sale of license				1,085
Industrial Materials | Zappa Stewart
Segment data
Inventory Step up to Fair Value				1,530
Industrial Materials | Pawtucket, RI Manufacturing Facility
Segment data
Exit costs related to idle facility					260
Construction Materials
Segment data
Revenue	9,366			10,608	21,709	22,540
Income before income taxes	2,384			2,372	6,850	6,618
Interest	32			88	73	97
Depreciation	164			187	339	377
Amortization	323			328	646	655
Total assets	32,827		36,757		32,827
Reportable segments
Segment data
Income before income taxes	14,653			18,533	33,922	38,144
Total assets	259,260		266,316		259,260
Corporate and common costs
Segment data
Income before income taxes	(7,721)			(6,793)	(15,182)	$ (13,805)
Total assets	40,863		$ 50,153		40,863
Settlement and curtailment loss	$ 273				$ 473
Corporate and common costs | Zappa Stewart
Segment data
Acquisition-related costs (Note 14)				$ 393

Segment Data and Foreign Oper_4

Segment Data and Foreign Operations - Revenue and Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018	Aug. 31, 2018
Concentration risk
Revenues	$ 66,631	$ 65,875	$ 139,134	$ 127,792
Property, plant and equipment, net	31,686		31,686		$ 32,845
Goodwill and Intangible assets, less accumulated amortization	141,486		141,486		150,026
United States
Concentration risk
Revenues	57,942	55,978	122,293	108,455
Property, plant and equipment, net	27,119		27,119		28,770
Goodwill and Intangible assets, less accumulated amortization	135,166		135,166		143,539
United Kingdom
Concentration risk
Revenues	4,428	5,392	8,444	9,789
Property, plant and equipment, net	2,871		2,871		2,911
Goodwill and Intangible assets, less accumulated amortization	5,100		5,100		5,239
All other Foreign
Concentration risk
Revenues	4,261	$ 4,505	8,397	$ 9,548
Property, plant and equipment, net	1,696		1,696		1,164
Goodwill and Intangible assets, less accumulated amortization	$ 1,220		$ 1,220		$ 1,248

Goodwill and Other Intangible_2

Goodwill and Other Intangibles - Goodwill (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Feb. 28, 2019USD ($)	Feb. 28, 2019USD ($)segment
Changes in the carrying value of goodwill
Balance at the beginning of the period		$ 84,696
Loss on impairment of polyurethane dispersions business	$ (2,410)	(2,410)
Foreign currency translation adjustment		48
Balance at the end of the period	82,334	$ 82,334
Number of reportable segments | segment		12
Number of operating segments | segment		2
Industrial Materials
Changes in the carrying value of goodwill
Balance at the beginning of the period		$ 74,002
Loss on impairment of polyurethane dispersions business	(2,410)	(2,410)
Foreign currency translation adjustment		44
Balance at the end of the period	71,636	71,636
Construction Materials
Changes in the carrying value of goodwill
Balance at the beginning of the period		10,694
Foreign currency translation adjustment		4
Balance at the end of the period	$ 10,698	$ 10,698

Goodwill and Other Intangible_3

Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Aug. 31, 2018
Goodwill and Other Intangibles
Gross Carrying Value	$ 119,591		$ 119,369
Accumulated Amortization	60,439		54,039
Net Carrying Value	59,152		$ 65,330
Aggregate amortization expense	6,225	$ 5,233
Estimated amortization expense
2019 (remaining 6 months)	6,237
2020	11,594
2021	11,064
2022	10,035
2023	6,768
2024	$ 5,659
Patents and agreements
Goodwill and Other Intangibles
Weighted-Average Amortization Period	14 years 3 months 18 days		14 years 4 months 24 days
Gross Carrying Value	$ 1,885		$ 1,863
Accumulated Amortization	1,687		1,681
Net Carrying Value	$ 198		$ 182
Formulas and technology
Goodwill and Other Intangibles
Weighted-Average Amortization Period	7 years 9 months 18 days		7 years 9 months 18 days
Gross Carrying Value	$ 10,245		$ 10,225
Accumulated Amortization	7,377		6,690
Net Carrying Value	$ 2,868		$ 3,535
Trade names
Goodwill and Other Intangibles
Weighted-Average Amortization Period	5 years 9 months 18 days		5 years 9 months 18 days
Gross Carrying Value	$ 8,571		$ 8,554
Accumulated Amortization	7,106		6,866
Net Carrying Value	$ 1,465		$ 1,688
Customer lists and relationships
Goodwill and Other Intangibles
Weighted-Average Amortization Period	9 years 1 month 6 days		9 years 1 month 6 days
Gross Carrying Value	$ 98,890		$ 98,727
Accumulated Amortization	44,269		38,802
Net Carrying Value	$ 54,621		$ 59,925

Sale of Businesses (Details)

Sale of Businesses (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Feb. 28, 2019	Aug. 31, 2018	May 31, 2018	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018	Apr. 20, 2018
Sale of Businesses
Proceeds from the sale of property and assets					$ 400
Revenue	$ 66,631			$ 65,875	139,134	$ 127,792
Product
Sale of Businesses
Revenue	420			451	1,383	921
Selling, General and Administrative Expenses
Sale of Businesses
Revenue	57			60	114	120
Other income (expense)
Sale of Businesses
Rental income	$ 32			$ 32	$ 65	$ 65
Structural Composites Rod Business
Sale of Businesses
Total proceeds received or to be received							$ 2,232
Pre-tax book gain from the sale of property and assets			$ 1,480
Proceeds from the sale of property and assets		$ 157	$ 2,075

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	Feb. 28, 2019	Sep. 01, 2018
Contract Assets
Contract liabilities	$ 0
Contract assets	175	$ 80
Industrial Materials
Contract Assets
Contract assets	77	16
Construction Materials
Contract Assets
Contract assets	$ 98	$ 64

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Adoption of ASC 606 (Details) - USD ($) $ in Thousands	Feb. 28, 2019	Sep. 01, 2018	Aug. 31, 2018
Assets:
Contract assets	$ 175	$ 80
Inventory	45,418	39,649	$ 39,699
Prepaid income taxes	2,556	4,092	4,100
Stockholders' equity:
Retained earnings	251,645	245,071	$ 245,049
Impact of Adoption of ASU 606
Assets:
Contract assets	175	80
Inventory	(104)	(50)
Prepaid income taxes	(18)	(8)
Stockholders' equity:
Retained earnings	53	$ 22
Balances Without Adoption of ASC 606
Assets:
Inventory	45,522
Prepaid income taxes	2,574
Stockholders' equity:
Retained earnings	$ 251,592

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Effect of Adoption of ASC 606 on statement of Operations - (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Revenue
Revenue	$ 66,631	$ 65,875	$ 139,134	$ 127,792
Costs and Expenses
Cost of products and services sold	43,213	41,991	89,788	78,886
Selling, general and administrative expenses	13,086	11,975	26,448	23,871
Loss on impairment of goodwill (Note 7)	2,410		2,410
Exit costs related to idle facility			260
Operating income	7,922	11,516	20,228	24,642
Interest expense	(162)	(440)	(366)	(485)
Other income (expense)	(828)	(421)	(1,122)	(903)
Income before income taxes	6,932	11,740	18,740	24,339
Income taxes	1,659	1,618	4,644	5,902
Net income	$ 5,273	$ 10,122	$ 14,096	$ 18,437
Net income available to common shareholders, per common and common equivalent share
Basic (in dollars per share)	$ 0.56	$ 1.08	$ 1.50	$ 1.97
Diluted (in dollars per share)	$ 0.56	$ 1.07	$ 1.49	$ 1.95
Weighted average shares outstanding
Basic (in shares)	9,332,288	9,289,372	9,330,929	9,285,604
Diluted (in shares)	9,373,030	9,329,308	9,377,167	9,356,847
Product
Revenue
Revenue	$ 65,442	$ 64,735	$ 136,806	$ 125,312
Royalties and commissions
Revenue
Revenue	1,189	$ 1,140	2,328	$ 2,480
Impact of Adoption of ASU 606
Revenue
Revenue	(10)		95
Costs and Expenses
Cost of products and services sold	9		54
Operating income	(19)		41
Income before income taxes	(19)		41
Income taxes	(5)		10
Net income	$ (14)		31
Net income available to common shareholders, per common and common equivalent share
Basic (in dollars per share)	$ (0.01)
Impact of Adoption of ASU 606 | Product
Revenue
Revenue	$ (10)		95
Balances Without Adoption of ASC 606
Revenue
Revenue	66,641		139,039
Costs and Expenses
Cost of products and services sold	43,204		89,734
Selling, general and administrative expenses	13,086		26,448
Loss on impairment of goodwill (Note 7)	2,410		2,410
Exit costs related to idle facility			260
Operating income	7,941		20,187
Interest expense	(162)		(366)
Other income (expense)	(828)		(1,122)
Income before income taxes	6,951		18,699
Income taxes	1,664		4,634
Net income	$ 5,287		$ 14,065
Net income available to common shareholders, per common and common equivalent share
Basic (in dollars per share)	$ 0.57		$ 1.50
Diluted (in dollars per share)	$ 0.56		$ 1.49
Weighted average shares outstanding
Basic (in shares)	9,332,288		9,330,929
Diluted (in shares)	9,373,030		9,377,167
Balances Without Adoption of ASC 606 | Product
Revenue
Revenue	$ 65,452		$ 136,711
Balances Without Adoption of ASC 606 | Royalties and commissions
Revenue
Revenue	$ 1,189		$ 2,328

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Revenue from Contracts with Customers
Revenue	$ 66,631	$ 65,875	$ 139,134	$ 127,792
North America
Revenue from Contracts with Customers
Revenue	52,972		111,296
Asia
Revenue from Contracts with Customers
Revenue	7,952		17,097
Europe
Revenue from Contracts with Customers
Revenue	4,952		9,246
All other foreign
Revenue from Contracts with Customers
Revenue	755		1,495
Industrial Materials
Revenue from Contracts with Customers
Revenue	57,265	55,267	117,425	105,252
Industrial Materials | North America
Revenue from Contracts with Customers
Revenue	45,453		94,092
Industrial Materials | Asia
Revenue from Contracts with Customers
Revenue	6,576		13,825
Industrial Materials | Europe
Revenue from Contracts with Customers
Revenue	4,515		8,096
Industrial Materials | All other foreign
Revenue from Contracts with Customers
Revenue	721		1,412
Construction Materials
Revenue from Contracts with Customers
Revenue	9,366	$ 10,608	21,709	$ 22,540
Construction Materials | North America
Revenue from Contracts with Customers
Revenue	7,519		17,204
Construction Materials | Asia
Revenue from Contracts with Customers
Revenue	1,376		3,272
Construction Materials | Europe
Revenue from Contracts with Customers
Revenue	437		1,150
Construction Materials | All other foreign
Revenue from Contracts with Customers
Revenue	$ 34		$ 83

Pensions and Other Postretire_3

Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Components of net periodic benefit cost
Service cost	$ 73	$ 71	$ 146	$ 142
Interest cost	178	157	356	314
Expected return on plan assets	(109)	(116)	(221)	(232)
Amortization of prior service cost	1	1	2	2
Amortization of accumulated loss	119	121	237	242
Settlement and curtailment loss	273		473
Net periodic benefit cost	535	234	993	468
Employer contribution			784	810
Selling, general and administrative expense	$ 13,086	11,975	$ 26,448	23,871
ASU 2017-07
Components of net periodic benefit cost
Selling, general and administrative expense		$ 163		$ 326

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands	Feb. 28, 2019	Aug. 31, 2018
Fair value measurements
Restricted investments	$ 1,118	$ 1,090
Long-term debt	6,000	25,000
Quoted prices in active markets (Level 1)
Fair value measurements
Restricted investments	968	961
Significant other observable inputs (Level 2)
Fair value measurements
Restricted investments	150	129
Long-term debt	$ 6,000	$ 25,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Accumulated other comprehensive income
Balance at the beginning of the period			$ (12,336)	$ (13,469)
Other comprehensive gains (losses) before reclassifications			527	3,719
Reclassifications to net income of previously deferred (gains) losses			530	118
Total other comprehensive income (loss)	$ 1,448	$ 2,156	1,057	3,837
Balance at the ending of the period	(11,279)	(9,632)	(11,279)	(9,632)
Restricted investments, other comprehensive gains (losses) before reclassifications, tax benefit				17
Restricted investments, other comprehensive gains (losses) before reclassifications, tax expense			5
Change in funded status of pension plan, other comprehensive gains (losses) before reclassifications, tax (expense) benefit			0	0
Foreign currency translation adjustment, other comprehensive gains (losses) before reclassifications, tax (expense) benefit			0	0
Restricted investments, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit			1	(24)
Change in funded status of pension plan, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit			184	59
Foreign currency translation adjustment, reclassifications to net income of previously deferred (gains) losses, tax (expense) benefit			0	0
Restricted investments
Accumulated other comprehensive income
Balance at the beginning of the period			126	121
Other comprehensive gains (losses) before reclassifications			(11)	49
Reclassifications to net income of previously deferred (gains) losses			3	(67)
Total other comprehensive income (loss)			(8)	(18)
Balance at the ending of the period	118	103	118	103
Change in funded status of pension plans
Accumulated other comprehensive income
Balance at the beginning of the period			(5,796)	(6,181)
Reclassifications to net income of previously deferred (gains) losses			527	185
Total other comprehensive income (loss)			527	185
Balance at the ending of the period	(5,269)	(5,996)	(5,269)	(5,996)
Foreign currency translation adjustment
Accumulated other comprehensive income
Balance at the beginning of the period			(6,666)	(7,409)
Other comprehensive gains (losses) before reclassifications			538	3,670
Total other comprehensive income (loss)			538	3,670
Balance at the ending of the period	$ (6,128)	$ (3,739)	$ (6,128)	$ (3,739)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Accumulated other comprehensive income
Selling, general and administrative expenses	$ (13,086)	$ (11,975)	$ (26,448)	$ (23,871)
Amortization of prior pension service costs and unrecognized losses	1	1	2	2
Settlement and curtailment loss	(273)		(473)
Tax expense (benefit)	(1,659)	(1,618)	(4,644)	(5,902)
Net income (loss)	5,273	10,122	14,096	18,437
Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Net income (loss)	281	38	530	118
Restricted investments | Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Selling, general and administrative expenses	(13)	(90)	4	(91)
Tax expense (benefit)	3	23	(1)	24
Net income (loss)	(10)	(67)	3	(67)
Change in funded status of pension plans | Reclassification out of accumulated other comprehensive income (loss)
Accumulated other comprehensive income
Tax expense (benefit)	(101)	(17)	(184)	(59)
Net income (loss)	291	105	527	185
Change in funded status of pension plans | Reclassification out of accumulated other comprehensive income (loss) | Other income (expense)
Accumulated other comprehensive income
Amortization of prior pension service costs and unrecognized losses	119	$ 122	238	$ 244
Settlement and curtailment loss	$ 273		$ 473

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2017	Feb. 28, 2018	Feb. 28, 2018	Feb. 28, 2019	Aug. 31, 2018
Acquisitions
Expenses related to acquisition			$ 393	$ 393
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets assumed based on their fair values
Goodwill					$ 82,334	$ 84,696
New Credit Agreement
Acquisitions
Amount drew in relation to acquisition	$ 65,000	$ 65,000
Zappa Stewart
Acquisitions
Purchase price	73,469
Amount drew in relation to acquisition		65,000
Expenses related to acquisition			$ 393
Goodwill deductible for income tax purposes					$ 23,990
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets assumed based on their fair values
Accounts receivable	3,670	3,670
Inventory	6,796	6,796
Prepaid expenses and other current assets	12	12
Property, plant and equipment	1,872	1,872
Goodwill	34,138	34,138
Intangible assets	30,240	30,240
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilities	(2,626)	(2,626)
Accounts payable and accrued liabilities	(633)	(633)
Total purchase price	73,469	73,469
Zappa Stewart | Customer Relationships
Acquisition cost has been allocated to the acquired tangible and identifiable intangible assets assumed based on their fair values
Intangible assets	$ 28,500	$ 28,500

Acquisitions - Intangible asset

Acquisitions - Intangible assets purchase transaction (Details) - Zappa Stewart $ in Thousands	Dec. 31, 2017USD ($)
Identifiable intangible assets purchased
Intangible assets	$ 30,240
Customer Relationships
Identifiable intangible assets purchased
Intangible assets	$ 28,500
Useful life	7 years 10 months 24 days
Technology
Identifiable intangible assets purchased
Intangible assets	$ 900
Useful life	7 years
Trade names
Identifiable intangible assets purchased
Intangible assets	$ 840
Useful life	4 years

Acquisitions - Supplemental Pro

Acquisitions - Supplemental Pro Forma Data (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2018	Dec. 31, 2017	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018	Aug. 31, 2018
Acquisition of Specialty Chemical Intermediates Businesses
Revenue			$ 66,631	$ 65,875	$ 139,134	$ 127,792
Net income			5,273	10,122	14,096	18,437
Acquisition-related costs (Note 14)				393		393
Statutory tax rate (as a percent)	21.00%	35.00%					25.70%
Pro Forma Information
Revenue				67,980		136,213
Net income				$ 11,671		$ 20,365
Net income available to common shareholders, per common and common equivalent share
Basic earnings per share (in dollars per share)				$ 1.24		$ 2.17
Diluted earning per share (in dollars per share)				$ 1.24		$ 2.16
New Credit Agreement
Acquisition of Specialty Chemical Intermediates Businesses
Amount drawn remained outstanding			$ 6,000		6,000
Zappa Stewart
Acquisition of Specialty Chemical Intermediates Businesses
Revenue					13,075
Net income					$ 667
Acquisition-related costs (Note 14)				$ 393
Statutory tax rate (as a percent)							26.00%

Exit Costs Related to Idle Fa_2

Exit Costs Related to Idle Facility (Details) - USD ($) $ in Thousands	Jun. 25, 2018	Feb. 28, 2019	Nov. 30, 2018	Aug. 31, 2018	Feb. 28, 2019
Exit Costs Related to Idle Facility
Exit costs related to idle facility					$ 260
Pawtucket, RI Manufacturing Facility
Exit Costs Related to Idle Facility
Restructuring Period	2 months
Exit costs related to idle facility		$ 0	$ 260	$ 1,272
Employee Logistics And Uncapitalized Facilities Improvement Costs				590
Restructuring and Related Cost, Accelerated Depreciation				$ 682

Long-Term Debt (Details)

Long-Term Debt (Details) $ in Thousands	Dec. 31, 2017USD ($)	Dec. 15, 2016USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2017USD ($)	Feb. 28, 2019USD ($)	Nov. 30, 2018USD ($)	Feb. 28, 2019USD ($)	Feb. 28, 2018USD ($)	Aug. 31, 2018USD ($)
Long-term debt
Paid down of outstanding loan amount							$ 19,000	$ 10,000
Subsequent Events
Long-term debt
Additional principal payments			$ 1,000
Zappa Stewart
Long-term debt
Amount drew in relation to acquisition				$ 65,000
New Credit Agreement
Long-term debt
Maximum borrowing capacity		$ 150,000
Additional borrowing capacity		$ 50,000
Carrying value of direct and indirect domestic subsidiaries					$ 219,488		$ 219,488
Applicable interest rate (as a percent)					3.60%		3.60%
Term of debt							5 years
Amount drawn remained outstanding					$ 6,000		$ 6,000
Term of potential debt							7 years
Amount drew in relation to acquisition	$ 65,000			$ 65,000
Paid down of outstanding loan amount									$ 40,000
Additional principal payments					$ 9,000	$ 10,000
New Credit Agreement | Minimum
Long-term debt
Consolidated fixed charge coverage ratio		1.25
New Credit Agreement | Maximum
Long-term debt
Net leverage ratio		3.25
New Credit Agreement | London Interbank Offered Rate (LIBOR)
Long-term debt
Interest payment due							3 months
New Credit Agreement | London Interbank Offered Rate (LIBOR) | Minimum
Long-term debt
Interest rate margin on variable rate basis (as a percent)							1.00%
New Credit Agreement | London Interbank Offered Rate (LIBOR) | Maximum
Long-term debt
Interest rate margin on variable rate basis (as a percent)							1.75%

Sale of License (Details)

Sale of License (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Feb. 28, 2018	Feb. 28, 2018	Feb. 28, 2019	Aug. 31, 2018	Nov. 30, 2017
Sale of License
Net book value			$ 59,152	$ 65,330
Proceeds from sale of license		$ 1,000
Gain on sale of license	$ 1,085	$ 1,085
Unrelated Party
Sale of License
Net book value					$ 26
Gross consideration	1,111
Proceeds from sale of license	1,000
Foreign tax consideration paid by buyer	111
Gain on sale of license	$ 1,085

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2017	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018	Aug. 31, 2019	Aug. 31, 2018
Effective income tax rate
Income taxes			$ 1,659	$ 1,618	$ 4,644	$ 5,902
Income before income taxes			$ 6,932	$ 11,740	$ 18,740	$ 24,339
Effective income tax rate			23.90%	13.80%	24.80%	24.20%
Statutory tax rate (as a percent)	21.00%	35.00%						25.70%
Tax benefit/(expense)				$ 681	$ 0
Tax benefit resulting from remeasurement and reclassification of existing deferred tax liability				379
Provision tax expenses				917
Tax expense recorded as the result of remeasuring the Federal benefit on our uncertain tax positions				$ 143
Transition tax adjustment associated with its accumulated, undistributed foreign earnings								$ 2,298
Short term payable								153
Long taxes payable								$ 1,766
Percentage of short term tax payable								8.00%
Discrete tax benefit								$ 379
Forecast
Effective income tax rate
Statutory tax rate (as a percent)							21.00%
ASU No. 2016-09
Effective income tax rate
Discrete tax benefit related to stock-based compensation					$ 977