Haynes International (HAYN) 10-Q 6 Aug 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Aug. 06, 2015
Document and Entity Information
Entity Registrant Name	HAYNES INTERNATIONAL INC
Entity Central Index Key	858,655
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		12,446,000
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents	$ 47,235	$ 45,871
Accounts receivable, less allowance for doubtful accounts of $861 and $861, respectively	73,563	72,439
Inventories	261,062	254,027
Income taxes receivable	3,292	3,235
Deferred income taxes	11,631	6,297
Other current assets	2,864	2,964
Total current assets	399,647	384,833
Property, plant and equipment, net	186,005	174,083
Deferred income taxes-long term portion	36,030	44,639
Prepayments and deferred charges	1,737	2,031
Goodwill	4,789
Other intangible assets, net	6,900	5,185
Total assets	635,108	610,771
Current liabilities:
Accounts payable	41,487	41,957
Accrued expenses	16,977	13,213
Accrued pension and postretirement benefits	4,572	4,572
Deferred revenue-current portion	2,500	2,500
Total current liabilities	65,536	62,242
Long-term obligations (less current portion)	4,467	745
Deferred revenue (less current portion)	25,954	27,829
Accrued pension benefits	71,624	72,315
Accrued postretirement benefits	101,105	100,910
Total liabilities	$ 268,686	$ 264,041
Commitments and contingencies (Note 9 and 10)
Stockholders' equity:
Common stock, $0.001 par value (40,000,000 shares authorized, 12,434,748 and 12,000,000 shares issued and 12,418,471 and 12,000,000 outstanding at September 30, 2014 and September 30, 2015, respectively)	$ 12	$ 12
Additional paid-in capital	243,944	242,387
Accumulated earnings	183,487	166,999
Treasury stock, 16,277 shares at September 30, 2014 and 9,999 shares at September 30, 2015	(1,091)	(840)
Accumulated other comprehensive loss	(59,930)	(61,828)
Total stockholders' equity	366,422	346,730
Total liabilities and stockholders' equity	$ 635,108	$ 610,771

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 971	$ 861
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	12,467,498	12,434,748
Common stock, shares outstanding (in shares)	12,446,000	12,418,471
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Treasury stock, shares (in shares)	21,498	16,277

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 121,270	$ 126,293	$ 370,634	$ 335,343
Cost of sales	97,119	112,232	298,375	306,968
Gross profit	24,151	14,061	72,259	28,375
Selling, general and administrative expense	12,412	10,085	31,767	29,523
Research and technical expense	878	867	2,691	2,630
Operating income	10,861	3,109	37,801	(3,778)
Interest income	(21)	(30)	(64)	(117)
Interest expense	36	17	68	56
Income before income taxes	10,846	3,122	37,797	(3,717)
Provision for income taxes	4,244	1,026	13,095	(1,098)
Net income	$ 6,602	$ 2,096	$ 24,702	$ (2,619)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.53	$ 0.17	$ 1.99	$ (0.21)
Diluted (in dollars per share)	0.53	0.17	1.98	(0.21)
Dividend declared per common share (in dollars per share)	$ 0.22	$ 0.22	$ 0.66	$ 0.66

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 6,602	$ 2,096	$ 24,702	$ (2,619)
Other comprehensive income (loss), net of tax:
Pension and postretirement	1,255	711	3,762	2,134
Foreign currency translation adjustment	3,381	1,104	(1,864)	2,785
Comprehensive income	$ 11,238	$ 3,911	$ 26,600	$ 2,300

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 24,702	$ (2,619)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	13,898	11,425
Amortization	385	312
Pension and post-retirement expense - U.S. and U.K.	9,591	7,822
Change in long-term obligations	(778)
Stock compensation expense	1,609	1,489
Excess tax benefit from option exercises	52	(432)
Deferred revenue	(1,875)	(1,875)
Deferred income taxes	624	(3,978)
Loss on disposition of property	180	245
Change in assets and liabilities:
Accounts receivable	(2,341)	6,236
Inventories	(7,742)	(13,855)
Other assets	389	(594)
Accounts payable and accrued expenses	4,028	23,280
Income taxes	269	1,712
Accrued pension and postretirement benefits	(4,112)	(5,056)
Net cash provided by operating activities	38,879	24,112
Cash flows from investing activities:
Additions to property, plant and equipment	(14,049)	(33,317)
Acquisition of Leveltek – LaPorte assets	(14,600)
Net cash used in investing activities	(28,649)	(33,317)
Cash flows from financing activities:
Dividends paid	(8,214)	(8,174)
Proceeds from exercise of stock options		1,063
Payment for purchase of treasury stock	(251)	(335)
Excess tax benefit from option execises	(52)	432
Net cash used in financing activities	(8,517)	(7,014)
Effect of exchange rates on cash	(349)	291
Increase (decrease) in cash and cash equivalents	1,364	(15,928)
Cash and cash equivalents:
Cash and cash equivalents, beginning of period	45,871	68,326
Cash and cash equivalents, end of period	47,235	52,398
Cash paid during period for:
Interest (net of capitalized interest)	19	4
Income taxes paid, net	12,189	983
Capital expenditures incurred but not yet paid	1,269	$ 1,964
Capital lease obligations incurred	$ 4,500

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2015
Basis of Presentation
Basis of Presentation	Note 1. Basis of Presentation Interim Financial Statements The accompanying unaudited condensed interim consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, and such principles are applied on a basis consistent with information reflected in our Annual Report on Form 10-K for the fiscal year ended September 30, 2014 filed with the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC related to interim financial statements. In the opinion of management, the interim financial information includes all adjustments and accruals, consisting only of normal recurring adjustments, which are necessary for a fair presentation of results for the respective interim periods. The results of operations for the three and nine months ended June 30, 2015 are not necessarily indicative of the results to be expected for the full fiscal year ending September 30, 2015 or any interim period. Principles of Consolidation The consolidated financial statements include the accounts of Haynes International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances are eliminated.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Jun. 30, 2015
New Accounting Pronouncements
New Accounting Pronouncements	Note 2. New Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The objective of the update is to recognize 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. It is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect, if any, on its consolidated financial statements. In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815) . The objective of the update is to set forth the definition of a derivative instrument and specify how to account for such instruments, including derivatives embedded in hybrid instruments. In addition, this update establishes when reporting entities, in certain limited, well-defined circumstances, may apply hedge accounting to a relationship involving a designated hedging instrument and hedged exposure. It is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. This update is not expected to result in a material impact to the consolidated financial statements or the related disclosures.

Inventories

Inventories	9 Months Ended
	Jun. 30, 2015
Inventories
Inventories	Note 3. Inventories The following is a summary of the major classes of inventories: September 30, June 30, 2014 2015 Raw Materials $ $ Work-in-process Finished Goods Other $ $

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	Note 4. Income Taxes Income tax expense for the three and nine months ended June 30, 2014 and 2015 differed from the U.S. federal statutory rate of 35% primarily due to state income taxes, differing tax rates on foreign earnings and discrete tax items that impacted income tax expense in these periods. The effective tax rate for the three months ended June 30, 2015 was 39.2% compared to 32.9% in the same period of fiscal 2014. The higher effective tax rate for the third quarter of fiscal 2015 is primarily attributable to a change in the Indiana tax law that was enacted in May, which decreased the deferred tax asset and increased tax expense by $1.1 million. The effective tax rate for the nine-months ended June 30, 2015 was 34.6% compared to 29.5% in the same period of fiscal 2014.

Pension and Post-retirement Ben

Pension and Post-retirement Benefits	9 Months Ended
	Jun. 30, 2015
Pension and Post-retirement Benefits
Pension and Post-retirement Benefits	Note 5. Pension and Post-retirement Benefits Components of net periodic pension and post-retirement benefit cost for the three months and nine months ended June 30, 2014 and 2015 are as follows: Three Months Ended June 30, Nine Months Ended June 30, Pension Benefits Other Benefits Pension Benefits Other Benefits 2014 2015 2014 2015 2014 2015 2014 2015 Service cost $ $ $ $ $ $ $ $ Interest cost $ Expected return — — — $ — Amortizations $ Net periodic benefit cost $ $ $ $ $ $ $ $ The Company has a minimum contribution requirement of approximately $800 in fiscal 2015 to the U.S. pension plan. While the Company has not yet contributed to Company sponsored domestic pension plans, the Company contributed $3,346 to i ts other post-retirement benefit plans and $694 to the U.K. pension plan for the nine months ended June 30, 2015. The Company presently expects future contributions of $1,500 to its U.S. pension plan, $1,131 to its other post-retirement benefit plan, and $281 to the U.K. pension plan for the remainder of fiscal 2015.

Legal, Environmental and Other

Legal, Environmental and Other Contingencies	9 Months Ended
	Jun. 30, 2015
Legal, Environmental and Other Contingencies
Legal, Environmental and Other Contingencies	Note 6. Legal, Environmental, and Other Contingencies The Company is regularly involved in litigation, both as a plaintiff and as a defendant, relating to its business and operations, including environmental, commercial, employment, and federal and/or state Equal Employment Opportunity Commission administrative actions. Future expenditures for environmental, employment, intellectual property, and other legal matters cannot be determined with any degree of certainty; however, based on the facts presently known, management does not believe that such costs will have a material effect on the Company’s financial position, results of operations or cash flows. The Company is currently, and has in the past been, subject to claims involving personal injuries allegedly relating to its products and processes. For example, the Company is presently involved in two actions involving welding rod-related injuries, which were filed in California state court against numerous manufacturers, including the Company, in May 2006 and February 2007, respectively, alleging that the welding-related products of the defendant manufacturers harmed the users of such products through the inhalation of welding fumes containing manganese. The Company is also involved in two actions related to asbestos in its facilities, which were filed in 2012 and 2014, respectively. The Company believes that it has defenses to these lawsuits and that, if the Company were to be found liable, the cases would not have a material effect on its financial position, results of operations or liquidity. The Company has received permits from the Indiana Department of Environmental Management, or IDEM, to close and to provide post-closure monitoring and care for certain areas at the Kokomo facility previously used for the storage and disposal of wastes, some of which are classified as hazardous under applicable regulations. Closure certification was received in fiscal 1988 for the South Landfill at the Kokomo facility, and post-closure monitoring and care is ongoing there. Closure certification was received in fiscal 1999 for the North Landfill at the Kokomo facility, and post-closure monitoring and care are permitted and ongoing there. The Company also has a single post-closure permit applicable to both the North and South Landfills, which contains monitoring and post-closure care requirements. In addition, IDEM required that a Resource Conservation and Recovery Act, or RCRA, Facility Investigation, or RFI be conducted in order to further evaluate one additional area of concern and one additional solid waste management unit. The RFI commenced in fiscal 2008 and is ongoing. Based on preliminary results, the Company has determined that additional testing and further source remediation are necessary. The Company has also received permits from the North Carolina Department of Environment and Natural Resources, or NCDENR, to close and provide post-closure monitoring and care for the hazardous waste lagoon at its Mountain Home, North Carolina facility. The lagoon area has been closed and is currently undergoing post-closure monitoring and care. The Company is required to monitor groundwater and to continue post-closure maintenance of the former disposal areas at each site. As a result, the Company is aware of elevated levels of certain contaminants in the groundwater, and additional corrective action by the Company could be required. On August 3, 2012, the Company received an information request from the United States Environmental Protection Agency, or EPA, relating to the Company’s compliance with laws relating to air quality. The Company has responded to the request, and there has been no further action by the EPA. As of September 30, 2014 and June 30, 2015, the Company has accrued $823 for post-closure monitoring and maintenance activities. Accruals for these costs are calculated by estimating the cost to monitor and maintain each post-closure site and multiplying that amount by the number of years remaining in the post-closure monitoring.

Deferred Revenue

Deferred Revenue	9 Months Ended
	Jun. 30, 2015
Deferred Revenue
Deferred Revenue	Note 7. Deferred Revenue On November 17, 2006, the Company entered into a twenty -year agreement to provide conversion services to Titanium Metals Corporation (“TIMET”) for up to ten million pounds of titanium metal annually. TIMET paid the Company a $50,000 up-front fee and will also pay the Company for its processing services during the term of the agreement ( 20 years ) at prices established by the terms of the agreement. TIMET may exercise an option to have ten million additional pounds of titanium converted annually, provided that it offers to loan up to $12,000 to the Company for certain capital expenditures which may be required to expand capacity. In addition to the volume commitment, the Company has granted TIMET a first priority security interest in its four-high Steckel rolling mill, along with rights of access if the Company enters into bankruptcy or defaults on any financing arrangements. The Company has agreed not to manufacture titanium products (other than cold reduced titanium tubing). The Company has also agreed not to provide titanium hot-rolling conversion services to any entity other than TIMET for the term of the Conversion Services Agreement. The agreement contains certain default provisions which could result in contract termination and damages, including liquidated damages of $25,000 and the Company being required to return the unearned portion of the up-front fee. The Company considered each provision and the likelihood of the occurrence of a default that would result in liquidated damages. Based on the nature of the events that could trigger the liquidated damages clause, and the availability of the cure periods set forth in the agreement, the Company determined and continues to believe that none of these circumstances are reasonably likely to occur. Therefore, events resulting in liquidated damages have not been factored in as a reduction to the amount of revenue recognized over the life of the contract. The cash received of $50,000 is recognized in income on a straight-line basis over the 20 -year term of the agreement. If an event of default occurred and was not cured within any applicable grace period, the Company would recognize the impact of the liquidated damages in the period of default and re-evaluate revenue recognition under the contract for future periods. The portion of the up-front fee not recognized in income is shown as deferred revenue on the consolidated balance sheet.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets, Net	9 Months Ended
	Jun. 30, 2015
Goodwill and Other Intangible Assets, Net
Goodwill and Other Intangible Assets, Net	Note 8. Goodwill and Other Intangible Assets, Net The Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred. The analysis of potential impairment of goodwill requires a two-step approach. The first is the estimation of fair value of each reporting unit. If step one indicates that impairment potentially exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment occurs when the estimated fair value of goodwill is less than its carrying value. The valuation methodology and underlying financial information included in our determination of fair value require significant management judgments. We use both market and income approaches to derive fair value. The judgments in these two approaches include, but are not limited to, comparable market multiples, long-term projections of future financial performance, and the selection of appropriate discount rates used to determine the present value of future cash flows. Changes in such estimates or the application of alternative assumptions could produce significantly different results. No impairment charges for goodwill were recorded in period ended June 30, 2015. In addition, the Company has patents, trademarks and other intangibles. As the patents have a definite life, they are amortized over lives ranging from two to fourteen years. The Company reviews patents for impairment whenever events or circumstances indicate that the carrying amount of a patent may not be recoverable. Recoverability of the patent asset is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. As the trademarks have an indefinite life, the Company tests them for impairment at least annually as of August 31 (the annual impairment testing date). If the carrying value exceeds the fair value (determined by calculating a fair value based upon a discounted cash flow of an assumed royalty rate), impairment of the trademark may exist resulting in a charge to earnings to the extent of the impairment. No impairment was recognized in the years ended September 30, 2013 or 2014 because the fair value exceeded the carrying values. On January 7, 2015, the Company acquired the assets and operations of Leveltek Processing, LLC in LaPorte, Indiana for $14.6 million in cash (See Note 14, Acquisition). In connection with the acquisition, the Company recorded goodwill of $4,789 and customer relationships intangible assets of $2,100 . As the customer relationships have a definite life, the Company amortizes them over a period of 16 years under an accelerated method and tests them for impairment at least annually as of August 31 (the annual impairment testing date). Amortization of the customer relationships, patents, non-competes, and other intangibles was $104 and $144 for the three-month periods ended June 30, 2014 and June 30, 2015, respectively, and $312 and $385 for the nine-month periods ended June 30, 2014 and June 30, 2015, respectively. The following represents the changes in the carrying value of goodwill for the period ended June 30, 2015: Goodwill at September 30, 2014 $ — Goodwill acquired - Leveltek-LaPorte Assets Adjustments — Goodwill at June 30, 2015 $ The following represents a summary of intangible assets at September 30, 2014 and June 30, 2015: Gross Accumulated Carrying September 30, 2014 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships — — — Non-compete Other $ $ $ Gross Accumulated Carrying June 30, 2015 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Non-compete — — — Other $ $ $ Estimate of Aggregate Amortization Expense: Year Ended September 30, 2015 (remainder of fiscal year) 2016 2017 2018 2019 Thereafter

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Jun. 30, 2015
Net Income (Loss) Per Share
Net Income (Loss) Per Share	Note 9. Net Income (Loss) Per Share The Company accounts for earnings per share using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to participation rights in undistributed earnings. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Per share amounts are computed by dividing net income attributable to common stockholders by the weighted average shares outstanding during each period. Basic earnings per share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. As a result of the loss in the first nine months of fiscal 2014, no additional common shares or restricted stock awards are included because their effect is antidilutive. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended June 30, June 30, (in thousands, except share and per share data) 2014 2015 2014 2015 Numerator: Basic and Diluted Net income (loss) $ $ $ $ Dividends paid Undistributed income (loss) Percentage allocated to common shares % % % % Undistributed income (loss) allocated to common shares Dividends paid on common shares outstanding Net income (loss) available to common shares Denominator: Basic and Diluted Weighted average common shares outstanding Adjustment for dilutive potential common shares — Weighted average shares outstanding - Diluted Basic net income (loss) per share $ $ $ $ Diluted net income (loss) per share $ $ $ $ Number of stock option shares excluded as their effect would be anti-dilutive Number of restrictive stock option shares excluded as their effect would be anti-dilutive (a) Percentage allocated to common shares - weighted average Common shares outstanding Unvested participating shares —

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jun. 30, 2015
Stock-Based Compensation
Stock-Based Compensation	Note 10. Stock-Based Compensation Restricted Stock Plan On February 23, 2009, the Company adopted a restricted stock plan that reserved 400,000 shares of common stock for issuance. Grants of restricted stock are grants of shares of the Company’s common stock subject to transfer restrictions, which vest in accordance with the terms and conditions established by the Compensation Committee. The Compensation Committee may set vesting requirements based on the achievement of specific performance goals or the passage of time. Restricted shares are subject to forfeiture if employment or service terminates prior to the vesting date or if any applicable performance goals are not met. The Company will assess, on an ongoing basis, the probability of whether the performance criteria will be achieved. The Company will recognize compensation expense over the performance period if it is deemed probable that the goals will be achieved. The fair value of the Company’s restricted stock is determined based upon the closing price of the Company’s common stock on the trading day immediately preceding the grant date. The plan provides for the adjustment of the number of shares covered by an outstanding grant and the maximum number of shares for which restricted stock may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. On November 25, 2014, the Company granted 41,700 shares of restricted stock to certain key employees and non-employee directors. The shares of restricted stock granted to employees will vest on the third anniversary of their grant date, provided that (a) the recipient is still an employee of the Company and (b) the Company has met a three-year net income performance goal, if applicable. The shares of restricted stock granted to non-employee directors will vest on the earlier of (a) the first anniversary of the date of grant or (b) the failure of such non-employee director to be re-elected at an annual meeting of the stockholders of the Company as a result of such non-employee director being excluded from the nominations for any reason other than cause. The fair value of the grants were $46.72 per share, the closing price of the Company’s common stock on the trading day immediately preceding the day of the applicable grant. The following table summarizes the activity under the restricted stock plan for the nine months ended June 30, 2015: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2014 $ Granted $ Forfeited / Canceled $ Vested $ Unvested at June 30, 2015 $ Expected to vest $ Compensation expense related to restricted stock for the three months ended June 30, 2014 and 2015 was $325 and $442 , respectively, and for the nine months ended June 30, 2014 and 2015 was $1,135 and $1,211 , respectively. The remaining unrecognized compensation expense related to restricted stock at June 30, 2015 was $2,339 , to be recognized over a weighted average period of 1.42 years. During the first quarter of fiscal 2015, the Company repurchased 5,221 shares of stock from employees and directors at an average purchase price of $48.04 to satisfy required withholding taxes upon vesting of restricted stock-based compensation. Stock Option Plans The Company has two stock option plans that authorize the granting of non-qualified stock options to certain key employees and non-employee directors for the purchase of a maximum of 1,500,000 shares of the Company’s common stock. The first option plan was adopted in August 2004 and provides for the grant of options to purchase up to 1,000,000 shares of the Company’s common stock. In January 2007, the Company’s Board of Directors adopted a second option plan that provides for options to purchase up to 500,000 shares of the Company’s common stock. Each plan provides for the adjustment of the maximum number of shares for which options may be granted in the event of a stock split, extraordinary dividend or distribution or similar recapitalization event. Unless the Compensation Committee determines otherwise, options granted under the option plans are exercisable for a period of ten years from the date of grant and vest 33 1 / 3 % per year over three years from the grant date. The amount of compensation cost recognized in the financial statements is measured based upon the grant date fair value. The fair value of option grants was estimated as of the date of the grant . The Company has elected to use the Black-Scholes option pricing model, which incorporates various assumptions including volatility, expected life, risk-free interest rates, expected forfeitures and dividend yields. The volatility is based on historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected term of the stock option granted. The Company uses historical volatility because management believes such volatility is representative of prospective trends. The expected term of an award is based on historical exercise data. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of the awards. The expected forfeiture rate is based upon historical experience. The dividend yield assumption is based on the Company’s history and expectations regarding dividend payouts at the time of the grant. Valuation of future grants under the Black-Scholes model will include a dividend yield. The following assumptions were used for grants in the first quarter of fiscal 2015: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 25, 2014 $ % % % years On November 25, 2014, the Company granted 81,100 options at an exercise price of $46.72 , the fair market value of the Company’s common stock the day immediately preceding the day of the grant. During the first nine months of fiscal 2015, no options were exercised. The stock-based employee compensation expense for stock options for the three months ended June 30, 2014 and 2015 was $121 and $136 , respectively, and for the nine months ended June 30, 2014 and 2015 was $354 and $398 , respectively. The remaining unrecognized compensation expense at June 30, 2015 was $813 , to be recognized over a weighted average vesting period of 1.49 years. The following tables summarize the activity under the stock option plans for the nine months ended June 30, 2015 and provide information regarding outstanding stock options: Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2014 $ Granted $ Exercised — $ — Canceled — $ — Outstanding at June 30, 2015 $ $ yrs. Vested or expected to vest $ $ yrs. Exercisable at June 30, 2015 $ $ yrs. Remaining Outstanding Exercisable Exercise Price Contractual Number of Number of Grant Date Per Share Life in Years Shares Shares March 31, 2006 March 30, 2007 March 31, 2008 October 1, 2008 March 31, 2009 January 8, 2010 November 24, 2010 November 25, 2011 November 20, 2012 December 10, 2012 November 26, 2013 November 25, 2014 —

Dividend

Dividend	9 Months Ended
	Jun. 30, 2015
Dividend
Dividend	Note 11. Dividend In the third quarter of fiscal 2015, the Company declared and paid a quarterly cash dividend. The dividend of $0.22 per outstanding share of the Company’s common stock was paid June 15, 2015 to stockholders of record at the close of business on June 1, 2015. The dividend cash pay-out was $2,738 for the quarter based on the number of shares outstanding. On August 6, 2015, the Company announced that the Board of Directors declared a regular quarterly cash dividend of $0.22 per outstanding share of the Company’s common stock. The dividend is payable September 15, 2015 to stockholders of record at the close of business on September 1, 2015.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Fair Value Measurements	Note 12. Fair Value Measurements The fair value hierarchy has three levels based on the inputs used to determine fair value. · Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; · Level 2 — Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and · Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. When available, the Company uses unadjusted quoted market prices to measure fair value and classifies such items within Level 1. If quoted market prices are not available, fair value is based upon internally-developed models that use, where possible, current market-based or independently-sourced market parameters such as interest rates and currency rates. Items valued using internally-generated models are classified according to the lowest level input or value driver that is significant to the valuation. If quoted market prices are not available, the valuation model used depends on the specific asset or liability being valued. Money market funds included in cash and cash equivalents of $45,871 and $47,235 as of September 30, 2014 and June 30, 2015, respectively, are considered Level 1.

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income (Loss) by Component	9 Months Ended
	Jun. 30, 2015
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Changes in Accumulated Other Comprehensive Income (Loss) by Component	Note 13. Changes in Accumulated Other Comprehensive Income (Loss) by Component Comprehensive income (loss) includes changes in equity that result from transactions and economic events from non-owner sources. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) items, including pension and foreign currency translation adjustments, net of tax when applicable. Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, 2014 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of March 31, 2014 $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items — Actuarial losses — Tax expense or (benefit) — Net current-period other comprehensive income (loss) Accumulated other comprehensive income (loss) as of June 30, 2014 $ $ $ $ Three Months Ended June 30, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of March 31, 2015 $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items — — Actuarial losses — Tax expense or (benefit) — Net current-period other comprehensive income (loss) Accumulated other comprehensive loss as of June 30, 2015 $ $ $ $ Nine Months Ended June 30, 2014 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2013 $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items — Actuarial losses — Tax expense or (benefit) — Net current-period other comprehensive income (loss) Accumulated other comprehensive income (loss) as of June 30, 2014 $ $ $ $ Nine Months Ended June 30, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2014 $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items — — Actuarial losses — Tax expense or (benefit) — Net current-period other comprehensive income (loss) Accumulated other comprehensive loss as of June 30, 2015 $ $ $ $

Acquisition

Acquisition	9 Months Ended
	Jun. 30, 2015
Acquisition
Acquisition	Note 14. Acquisition On January 7, 2015, the Company acquired the assets and operations of Leveltek Processing, LLC located in LaPorte, Indiana for $14.6 million in cash. The acquisition of the LaPorte assets provides the Company control of the sheet stretching, leveling, slitting and cut-to-length operations that were previously an outsourced function. Acquisition costs incurred in the first quarter of fiscal 2015 were not significant. The acquired business is being operated by LaPorte Custom Metal Processing, LLC (LCMP), a wholly-owned subsidiary of the Company. The following is a summary of the estimated purchase price allocation in connection with the LCMP acquisition. The allocation is preliminary, pending the finalization of the fair value of property, plant and equipment, the customer relationships intangible and resulting goodwill. The determination of fair value for acquired assets includes the use of Level 3 inputs, such as the condition and utilization of the property, plant and equipment acquired, management’s projected financial results for LCMP, and the discount rate used to determine the present value of anticipated future cash flows. Purchase Price Allocation Property, plant and equipment, net Customer relationships Inventory Total identifiable net assets Goodwill Total purchase price The goodwill recognized in connection with the Leveltek-LaPorte assets consists of the value associated with the addition of the stretching and leveling capabilities as well as increased capacity in slitting and cut-to-length operations to meet customer demand. The complementary asset capabilities are expected to lead to operating cost synergies as well as expand the Company’s commercial offerings.

Capital lease obligation

Capital lease obligation	9 Months Ended
	Jun. 30, 2015
Leases, Capital [Abstract]
Capital lease obligation	Note 15. Capital lease obligation On January 1, 2015, the company entered into a capital lease agreement for the building that houses the assets and operations of LaPorte Custom Metal Processing (LCMP). The capital asset and obligation are recorded at the present value of the minimum lease payments. The asset is included in Property, plant and equipment, net on the Consolidated Balance Sheet and is depreciated over the 20 year lease term. The long term component of the capital lease obligation is included in Long term obligations. As of June 30, 2015, future minimum lease rental payments applicable to the capital lease was as follows. 2015 (remainder of fiscal year) $ 2016 2017 2018 2019 Thereafter Total minimum capital lease payments Less amounts representing interest Present value of net minimum capital lease payments Less current obligation Total long term capital lease obligation $ The capital lease obligation is included in Long-term obligations (less current portion) on the Consolidated Balance Sheet. September 30, June 30, 2014 2015 Environmental post-closure monitoring and maintenance activities $ $ Future capital lease rental payments — Less amounts due within one year Long-term obligations (less current portion) $ $

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Jun. 30, 2015
Basis of Presentation
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Haynes International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances are eliminated.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2015
Inventories
Summary of major classes of inventories	September 30, June 30, 2014 2015 Raw Materials $ $ Work-in-process Finished Goods Other $ $

Pension and Post-retirement B24

Pension and Post-retirement Benefits (Tables)	9 Months Ended
	Jun. 30, 2015
Pension and Post-retirement Benefits
Schedule of components of net periodic pension and postretirement benefit cost	Three Months Ended June 30, Nine Months Ended June 30, Pension Benefits Other Benefits Pension Benefits Other Benefits 2014 2015 2014 2015 2014 2015 2014 2015 Service cost $ $ $ $ $ $ $ $ Interest cost $ Expected return — — — $ — Amortizations $ Net periodic benefit cost $ $ $ $ $ $ $ $

Goodwill and Other Intangible25

Goodwill and Other Intangible Assets, Net (Tables)	9 Months Ended
	Jun. 30, 2015
Goodwill and Other Intangible Assets, Net
Schedule Changes in the carrying value of goodwill	Goodwill at September 30, 2014 $ — Goodwill acquired - Leveltek-LaPorte Assets Adjustments — Goodwill at June 30, 2015 $
Summary of intangible assets	Gross Accumulated Carrying September 30, 2014 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships — — — Non-compete Other $ $ $ Gross Accumulated Carrying June 30, 2015 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Non-compete — — — Other $ $ $
Schedule of estimate of aggregate amortization expense	Estimate of Aggregate Amortization Expense: Year Ended September 30, 2015 (remainder of fiscal year) 2016 2017 2018 2019 Thereafter

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Jun. 30, 2015
Net Income (Loss) Per Share
Schedule of basic and diluted net income (loss) per share	Three Months Ended Nine Months Ended June 30, June 30, (in thousands, except share and per share data) 2014 2015 2014 2015 Numerator: Basic and Diluted Net income (loss) $ $ $ $ Dividends paid Undistributed income (loss) Percentage allocated to common shares % % % % Undistributed income (loss) allocated to common shares Dividends paid on common shares outstanding Net income (loss) available to common shares Denominator: Basic and Diluted Weighted average common shares outstanding Adjustment for dilutive potential common shares — Weighted average shares outstanding - Diluted Basic net income (loss) per share $ $ $ $ Diluted net income (loss) per share $ $ $ $ Number of stock option shares excluded as their effect would be anti-dilutive Number of restrictive stock option shares excluded as their effect would be anti-dilutive (a) Percentage allocated to common shares - weighted average Common shares outstanding Unvested participating shares —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Jun. 30, 2015
Stock-Based Compensation
Summary of activity under the restricted stock plan	Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2014 $ Granted $ Forfeited / Canceled $ Vested $ Unvested at June 30, 2015 $ Expected to vest $
Schedule of fair value assumptions used for grants under the stock option plan	Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 25, 2014 $ % % % years
Summary of activity under the stock option plans	Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2014 $ Granted $ Exercised — $ — Canceled — $ — Outstanding at June 30, 2015 $ $ yrs. Vested or expected to vest $ $ yrs. Exercisable at June 30, 2015 $ $ yrs. Remaining Outstanding Exercisable Exercise Price Contractual Number of Number of Grant Date Per Share Life in Years Shares Shares March 31, 2006 March 30, 2007 March 31, 2008 October 1, 2008 March 31, 2009 January 8, 2010 November 24, 2010 November 25, 2011 November 20, 2012 December 10, 2012 November 26, 2013 November 25, 2014 —

Changes in Accumulated Other 28

Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables)	9 Months Ended
	Jun. 30, 2015
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Schedule of accumulated other comprehensive income (loss)	Three Months Ended June 30, 2014 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of March 31, 2014 $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items — Actuarial losses — Tax expense or (benefit) — Net current-period other comprehensive income (loss) Accumulated other comprehensive income (loss) as of June 30, 2014 $ $ $ $ Three Months Ended June 30, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of March 31, 2015 $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items — — Actuarial losses — Tax expense or (benefit) — Net current-period other comprehensive income (loss) Accumulated other comprehensive loss as of June 30, 2015 $ $ $ $ Nine Months Ended June 30, 2014 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2013 $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items — Actuarial losses — Tax expense or (benefit) — Net current-period other comprehensive income (loss) Accumulated other comprehensive income (loss) as of June 30, 2014 $ $ $ $ Nine Months Ended June 30, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2014 $ $ $ $ Other comprehensive income (loss) before reclassifications — — Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items — — Actuarial losses — Tax expense or (benefit) — Net current-period other comprehensive income (loss) Accumulated other comprehensive loss as of June 30, 2015 $ $ $ $

Acquisition (Tables)

Acquisition (Tables)	9 Months Ended
	Jun. 30, 2015
Acquisition
Summary of the purchase price allocation	Purchase Price Allocation Property, plant and equipment, net Customer relationships Inventory Total identifiable net assets Goodwill Total purchase price

Capital Lease Obligation (Table

Capital Lease Obligation (Tables)	9 Months Ended
	Jun. 30, 2015
Leases, Capital [Abstract]
Schedule of future minimum lease rental payments applicable to the capital lease	As of June 30, 2015, future minimum lease rental payments applicable to the capital lease was as follows. 2015 (remainder of fiscal year) $ 2016 2017 2018 2019 Thereafter Total minimum capital lease payments Less amounts representing interest Present value of net minimum capital lease payments Less current obligation Total long term capital lease obligation $
Schedule of capital lease obligation included in Long-term obligations (Less current portion)	September 30, June 30, 2014 2015 Environmental post-closure monitoring and maintenance activities $ $ Future capital lease rental payments — Less amounts due within one year Long-term obligations (less current portion) $ $

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Inventories
Raw Materials	$ 21,906	$ 25,050
Work-in-process	138,579	144,285
Finished Goods	99,332	83,674
Other	1,245	1,018
Total	$ 261,062	$ 254,027

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	May. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statutory federal tax rate (as a percent)		35.00%	35.00%	35.00%	35.00%
Effective tax rate (as a percent)		39.20%	32.90%	34.60%	29.50%
Tax expense or (benefit)		$ 4,244	$ 1,026	$ 13,095	$ (1,098)
Deferred income taxes				$ 624	$ (3,978)
Scenario, Adjustment [Member]
Tax expense or (benefit)		$ 1,100
Deferred income taxes	$ 1,100

Pension and Post-retirement B33

Pension and Post-retirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Pension Plans
Pension Plan and Retirement Benefits
Service cost	$ 975	$ 993	$ 2,924	$ 2,978
Interest cost	2,787	2,953	8,010	8,653
Expected return	(3,761)	(3,702)	(10,807)	(10,846)
Amortizations	1,381	1,368	4,097	4,077
Net periodic benefit cost	1,382	1,612	4,224	4,862
U.S. pension plan
Pension Plan and Retirement Benefits
Expected future employer contribution			1,500
U.S. pension plan | Minimum
Pension Plan and Retirement Benefits
Employer contribution			800
U.K. pension plan
Pension Plan and Retirement Benefits
Employer contribution			694
Expected future employer contribution			281
Postretirement Health Care Benefits
Pension Plan and Retirement Benefits
Service cost	84	67	253	200
Interest cost	1,097	1,144	3,289	3,433
Amortizations	608	(224)	1,825	(673)
Net periodic benefit cost	$ 1,789	$ 987	5,367	$ 2,960
Employer contribution			3,346
Expected future employer contribution			$ 1,131

Legal, Environmental and Othe34

Legal, Environmental and Other Contingencies (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2015USD ($)actionitem	Sep. 30, 2014USD ($)
Legal, Environmental and Other Contingencies
Accrual for post-closure monitoring and maintenance activities | $	$ 823	$ 823
Welding rod-related injuries | Pending litigation
Legal, Environmental and Other Contingencies
Number of actions in which the entity is involved	2
Asbestos in facilities | Pending litigation
Legal, Environmental and Other Contingencies
Number of actions in which the entity is involved	2
Site contingency accrual
Legal, Environmental and Other Contingencies
Number of areas of concern that required investigation | item	1
Number of solid waste management units evaluated under RCRA, as required by IDEM | item	1

Deferred Revenue (Details)

Deferred Revenue (Details) - Conversion Services Agreement $ in Thousands, lb in Millions	Nov. 17, 2006USD ($)lb	Jun. 30, 2015USD ($)lb
Deferred revenue
Term of agreement to provide conversion services	20 years
Up-front fees received	$ 50,000
Additional volume of titanium metal to be converted on exercise of option by service receiver (in pounds) | lb		10
Revenue recognition period		20 years
Liquidated damages		$ 25,000
Maximum
Deferred revenue
Annual volume of titanium metal to be converted (in pounds) | lb	10
Amount of loan offered by counterparty		$ 12,000

Goodwill and Other Intangible36

Goodwill and Other Intangible Assets, Net (Details) - USD ($) $ in Thousands	Jan. 07, 2015	Jun. 30, 2015
Goodwill and Other Intangible Assets, Net
Goodwill		$ 4,789
Goodwill impairment charges		$ 0
Leveltek Processing, LLC
Goodwill and Other Intangible Assets, Net
Acquisition price	$ 14,600
Goodwill	4,789
Customer relationships	2,100
Customer relationships | Leveltek Processing, LLC
Goodwill and Other Intangible Assets, Net
Customer relationships	$ 2,100

Goodwill and Other Intangible37

Goodwill and Other Intangible Assets, Net (Details 2) $ in Thousands	9 Months Ended
	Jun. 30, 2015USD ($)
Goodwill and Other Intangible Assets, Net
Goodwill acquired - Levelteck-LaPorte Assets Adjustments	$ 4,789
Goodwill, Ending Balance	$ 4,789

Goodwill and Other Intangible38

Goodwill and Other Intangible Assets, Net (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Intangible Assets
Impairment charges recognized					$ 0	$ 0
Amortization expense of patents, non-competes and other intangibles	$ 144	$ 104	$ 385	$ 312
Goodwill	4,789		4,789
Finite-Lived Intangible Assets, Gross	10,260	8,660	10,260	8,660
Finite-lived intangible assets, Accumulated Amortization	(3,360)	(3,475)	(3,360)	(3,475)
Finite-lived intangible assets, Carrying Amount	6,900	5,185	6,900	5,185
Patents
Intangible Assets
Finite-Lived Intangible Assets, Gross	4,030	4,030	4,030	4,030
Finite-lived intangible assets, Accumulated Amortization	(3,022)	(2,813)	(3,022)	(2,813)
Finite-lived intangible assets, Carrying Amount	1,008	1,217	$ 1,008	1,217
Patents | Minimum
Intangible Assets
Useful life			2 years
Patents | Maximum
Intangible Assets
Useful life			14 years
Customer relationships
Intangible Assets
Useful life			16 years
Finite-Lived Intangible Assets, Gross	2,100		$ 2,100
Finite-lived intangible assets, Accumulated Amortization	(79)		(79)
Finite-lived intangible assets, Carrying Amount	2,021		2,021
Non-compete
Intangible Assets
Finite-Lived Intangible Assets, Gross		500		500
Finite-lived intangible assets, Accumulated Amortization		(452)		(452)
Finite-lived intangible assets, Carrying Amount		48		48
Other
Intangible Assets
Finite-Lived Intangible Assets, Gross	330	330	330	330
Finite-lived intangible assets, Accumulated Amortization	(259)	(210)	(259)	(210)
Finite-lived intangible assets, Carrying Amount	71	120	71	120
Trademarks
Intangible Assets
Finite-Lived Intangible Assets, Gross	3,800	3,800	3,800	3,800
Finite-lived intangible assets, Carrying Amount	$ 3,800	$ 3,800	$ 3,800	$ 3,800

Goodwill and Other Intangible39

Goodwill and Other Intangible Assets, Net (Details 4) $ in Thousands	Jun. 30, 2015USD ($)
Estimate of Aggregate Amortization Expense:
2015 (remainder of fiscal year)	$ 126
2,016	490
2,017	431
2,018	427
2,019	246
Thereafter	$ 1,380

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Income (Loss) Per Share
Number of additional common shares or restricted stock awards included in the denominator as their affect is anti-dilutive	0	0	0	0
Numerator: Basic and Diluted
Net income	$ 6,602	$ 2,096	$ 24,702	$ (2,619)
Dividends paid	(2,738)	(2,729)	(8,214)	(8,174)
Undistributed income (loss)	$ 3,864	$ (633)	$ 16,488	$ (10,793)
Percentage allocated to common shares	99.10%	99.70%	99.10%	100.00%
Undistributed income (loss) allocated to common shares	$ 3,829	$ (631)	$ 16,339	$ (10,793)
Dividends paid on common shares outstanding	2,713	2,722	8,140	8,174
Net income (loss) available to common shares	$ 6,542	$ 2,091	$ 24,479	$ (2,619)
Denominator: Basic and Diluted
Weighted average common shares outstanding	12,333,550	12,310,955	12,330,994	12,281,960
Adjustment for dilutive potential common shares	13,244	24,906	12,678
Weighted average shares - Diluted	12,346,794	12,335,861	12,343,672	12,281,960
Per common share net income (loss)
Basic (in dollars per share)	$ 0.53	$ 0.17	$ 1.99	$ (0.21)
Diluted (in dollars per share)	$ 0.53	$ 0.17	$ 1.98	$ (0.21)

Net Income (Loss) Per Share (41

Net Income (Loss) Per Share (Details 2) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Option Plans
Antidilutive securities
Number of shares excluded as their effect would be anti-dilutive	290,255	163,605	290,255	221,748
Restricted Stock Plan
Antidilutive securities
Number of shares excluded as their effect would be anti-dilutive	112,450	97,150	112,550	97,150

Net Income (Loss) Per Share (42

Net Income (Loss) Per Share (Details 3) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Percentage allocated to common shares - weighted average
Common shares outstanding	12,333,550	12,310,955	12,330,994	12,281,960
Unvested participating shares	112,450	24,906	112,550
Total	12,446,000	12,335,861	12,443,544	12,281,960

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 25, 2014	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Feb. 23, 2009
Restricted stock plan activity, other disclosures
Compensation expense					$ 398	$ 354
Restricted Stock Plan
Stock-Based Compensation
Number of shares of common stock reserved for issuance							400,000
Restricted stock plan activity, number of shares
Unvested at beginning of the period (in shares)			97,150		97,150
Granted (in shares)					41,700
Forfeited / Canceled (in shares)					(8,950)
Vested (in shares)					(17,450)
Unvested at end of the period (in shares)		112,450			112,450
Expected to vest (in shares)		89,250			89,250
Restricted stock plan activity, Weighted Average Fair Value at Grant Date
Unvested at beginning of the period (in dollars per share)			$ 51.96		$ 51.96
Granted (in dollars per share)					46.72
Forfeited / Canceled (in dollars per share)					55.54
Vested (in dollars per share)					56.52
Unvested at end of the period (in dollars per share)		$ 49.07			49.07
Expected to vest (in dollars per share)		$ 48.70			$ 48.70
Restricted stock plan activity, other disclosures
Compensation expense		$ 442		$ 325	$ 1,211	$ 1,135
Remaining unrecognized compensation expense		$ 2,339			$ 2,339
Weighted average period for recognition					1 year 5 months 1 day
Restricted Stock Plan | Key Employees and Non-Employee Directors
Restricted stock plan activity, number of shares
Granted (in shares)	41,700
Restricted stock plan activity, Weighted Average Fair Value at Grant Date
Granted (in dollars per share)	$ 46.72
Restricted Stock Plan | Employees and Directors
Restricted stock plan activity, other disclosures
Repurchase of stock from employees (in shares)			5,221
Average purchase price (in dollars per share)			$ 48.04

Stock-Based Compensation (Det44

Stock-Based Compensation (Details 2) $ / shares in Units, $ in Thousands	Nov. 25, 2014$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)plan$ / sharesshares	Jun. 30, 2014USD ($)
Fair value assumptions
Stock-based employee compensation expense | $				$ 398	$ 354
Original option plan August 2004
Information relating to stock options
Number of shares of common stock reserved for issuance		1,000,000		1,000,000
Second option plan January 2007
Information relating to stock options
Number of shares of common stock reserved for issuance		500,000		500,000
Stock Option Plans
Information relating to stock options
Number of plans | plan				2
Number of shares of common stock reserved for issuance		1,500,000		1,500,000
Period during which options are exercisable				10 years
Vesting of awards per year (as a percent)				33.33%
Award vesting period				3 years
Fair value assumptions
Fair Value (in dollars per share) | $ / shares	$ 8.17
Dividend Yield (as a percent)	1.90%
Risk-Free Interest Rate (as a percent)	0.96%
Expected Volatility (as a percent)	28.00%
Expected Life	3 years
Stock-based employee compensation expense | $		$ 136	$ 121
Remaining unrecognized compensation expense | $		$ 813		$ 813
Weighted average period for recognition				1 year 5 months 27 days
Activity under stock option plans, number of shares
Outstanding at beginning of the period (in shares)				282,001
Granted (in shares)				81,100
Exercised (in shares)				0
Outstanding at end of the period (in shares)		363,101		363,101
Vested or expected to vest (in shares)		342,016		342,016
Exercisable at end of period (in shares)		239,367		239,367
Outstanding at end of period, Aggregate Intrinsic Value | $		$ 1,243		$ 1,243
Vested or expected to vest, Aggregate Intrinsic Value | $		1,192		1,192
Exercisable at end of the period, Aggregate Intrinsic Value | $		$ 1,015		$ 1,015
Weighted Average Exercise Prices
Outstanding at beginning of the period (in dollars per share) | $ / shares				$ 51.61
Granted (in dollars per share) | $ / shares				46.72
Outstanding at end of period (in dollars per share) | $ / shares		$ 50.52		50.52
Vested or expected to vest (in dollars per share) | $ / shares		50.66		50.66
Exercisable at end of the period (in dollars per share) | $ / shares		$ 51.66		$ 51.66
Outstanding at end of the period, Weighted Average Remaining Contractual Life				5 years 8 months 12 days
Vested or expected to vest, Weighted Average Remaining Contractual Life				5 years 6 months 22 days
Exercisable at end of the period, Weighted Average Remaining Contractual Life				4 years 4 days
Stock Option Plans | Certain Employees
Activity under stock option plans, number of shares
Granted (in shares)	81,100
Weighted Average Exercise Prices
Granted (in dollars per share) | $ / shares	$ 46.72

Stock-Based Compensation (Det45

Stock-Based Compensation (Details 3) - Jun. 30, 2015 - Stock Option Plans - $ / shares	Total
Stock-Based Compensation
Outstanding Number of Shares	363,101
Exercisable Number of Shares	239,367
Exercise Price Per Share $31.00
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 31
Remaining Contractual Life	9 months
Outstanding Number of Shares	10,000
Exercisable Number of Shares	10,000
Exercise Price Per Share $72.93
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 72.93
Remaining Contractual Life	1 year 9 months
Outstanding Number of Shares	47,500
Exercisable Number of Shares	47,500
Exercise Price Per Share $54.00
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 54
Remaining Contractual Life	2 years 9 months
Outstanding Number of Shares	58,000
Exercisable Number of Shares	58,000
Exercise Price Per Share $46.83
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 46.83
Remaining Contractual Life	3 years 3 months
Outstanding Number of Shares	20,000
Exercisable Number of Shares	20,000
Exercise Price Per Share $17.82
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 17.82
Remaining Contractual Life	3 years 9 months
Outstanding Number of Shares	12,084
Exercisable Number of Shares	12,084
Exercise Price Per Share $34.00
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 34
Remaining Contractual Life	4 years 6 months
Outstanding Number of Shares	12,400
Exercisable Number of Shares	12,400
Exercise Price Per Share $40.26
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 40.26
Remaining Contractual Life	5 years 5 months 1 day
Outstanding Number of Shares	19,667
Exercisable Number of Shares	19,667
Exercise Price Per Share $55.88
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 55.88
Remaining Contractual Life	6 years 5 months 1 day
Outstanding Number of Shares	19,700
Exercisable Number of Shares	19,700
Exercise Price Per Share $47.96
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 47.96
Remaining Contractual Life	7 years 5 months 1 day
Outstanding Number of Shares	35,600
Exercisable Number of Shares	23,734
Exercise Price Per Share $48.39
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 48.39
Remaining Contractual Life	7 years 5 months 1 day
Outstanding Number of Shares	1,800
Exercisable Number of Shares	1,200
Exercise Price Per Share $52.78
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 52.78
Remaining Contractual Life	8 years 5 months 1 day
Outstanding Number of Shares	45,250
Exercisable Number of Shares	15,082
Exercise Price Per Share $46.72
Stock-Based Compensation
Exercise Price Per Share (in dollars per share)	$ 46.72
Remaining Contractual Life	9 years 5 months 1 day
Outstanding Number of Shares	81,100

Dividend (Details)

Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 06, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Common stock dividend
Cash dividend (in dollars per share)		$ 0.22
Dividend paid (in dollars)		$ 2,738		$ 8,214	$ 8,174
Cash dividend declared (in dollars per share)	$ 0.22	$ 0.22	$ 0.22	$ 0.66	$ 0.66

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Fair value measurements on recurring basis | Level 1 | Cash and money market funds
Assets:
Total fair value	$ 47,235	$ 45,871

Changes in Accumulated Other 48

Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated other comprehensive income (loss)
Balance			$ 346,730
Tax expense or (benefit)	$ 4,244	$ 1,026	13,095	$ (1,098)
Balance	366,422		366,422
AOCI Attributable to Parent
Accumulated other comprehensive income (loss)
Balance	(64,566)	(53,695)	(61,828)	(56,799)
Other comprehensive income (loss) before classifications	3,381	1,104	(1,864)	2,785
Tax expense or (benefit)	(737)	(420)	(2,214)
Net current-period other comprehensive income (loss)	4,636	1,815	1,898	4,919
Balance	(59,930)	(51,880)	(59,930)	(51,880)
Defined Benefit Plans | Defined Benefit Pension Plans
Accumulated other comprehensive income (loss)
Balance	(41,058)	(41,092)	(42,800)	(42,798)
Tax expense or (benefit)	(513)	(502)	(1,538)
Net current-period other comprehensive income (loss)	871	853	2,613	2,559
Balance	(40,187)	(40,239)	(40,187)	(40,239)
Defined Benefit Plans | Postretirement Health Care Benefits
Accumulated other comprehensive income (loss)
Balance	(19,235)	(16,247)	(20,000)	(15,964)
Tax expense or (benefit)	(224)	82	(676)
Net current-period other comprehensive income (loss)	384	(142)	1,149	(425)
Balance	(18,851)	(16,389)	(18,851)	(16,389)
Foreign Exchange
Accumulated other comprehensive income (loss)
Balance	(4,273)	3,644	972	1,963
Other comprehensive income (loss) before classifications	3,381	1,104	(1,864)	2,785
Net current-period other comprehensive income (loss)	3,381	1,104	(1,864)	2,785
Balance	(892)	4,748	(892)	4,748
Reclassifications out of accumulated other comprehensive income | AOCI Attributable to Parent
Accumulated other comprehensive income (loss)
Amortization of Pension and Postretirement Plan items	202	(522)	606	(1,565)
Actuarial losses	1,790	1,653	5,370	4,956
Tax expense or (benefit)				(1,257)
Reclassifications out of accumulated other comprehensive income | Defined Benefit Plans | Defined Benefit Pension Plans
Accumulated other comprehensive income (loss)
Amortization of Pension and Postretirement Plan items	202	202	606	606
Actuarial losses	1,182	1,153	3,545	3,458
Tax expense or (benefit)				(1,505)
Reclassifications out of accumulated other comprehensive income | Defined Benefit Plans | Postretirement Health Care Benefits
Accumulated other comprehensive income (loss)
Amortization of Pension and Postretirement Plan items		(724)		(2,171)
Actuarial losses	$ 608	$ 500	$ 1,825	1,498
Tax expense or (benefit)				$ 248

Acquisition (Details)

Acquisition (Details) - USD ($) $ in Thousands	Jan. 07, 2015	Jun. 30, 2015
Purchase Price Allocation
Goodwill		$ 4,789
Leveltek Processing, LLC
Acquisition
Acquisition price	$ 14,600
Purchase Price Allocation
Property, plant and equipment, net	7,563
Customer relationships	2,100
Inventory	148
Total identifiable net assets	9,811
Goodwill	4,789
Total purchase price	14,600
Customer relationships | Leveltek Processing, LLC
Purchase Price Allocation
Customer relationships	$ 2,100

Capital lease obligation (Detai

Capital lease obligation (Details) - USD ($) $ in Thousands	Jan. 01, 2015	Jun. 30, 2015	Sep. 30, 2014
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2015 (remainder of fiscal year)		$ 267
2,016		534
2,017		534
2,018		540
2,019		546
Thereafter		8,514
Total minimum capital lease payments		10,935
Less amounts representing interest		(6,700)
Present value of net minimum capital lease payments		4,235
Less current obligation		(514)
Total long term capital lease obligation		3,721
Environmental post-closure monitoring and maintenance activities		823	$ 823
Future capital lease rental payments		4,235
Less amounts due within one year		(591)	(78)
Long-term obligations (less current portion)		$ 4,467	$ 745
Property Plant And Equipment
Lease Term	20 years