Haynes International (HAYN) 10-Q 4 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 04, 2016
Document and Entity Information
Entity Registrant Name	HAYNES INTERNATIONAL INC
Entity Central Index Key	858,655
Document Type	10-Q
Document Period End Date	Dec. 31, 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		12,481,549
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 48,258	$ 49,045
Restricted cash (Note 16)	9,200
Accounts receivable, less allowance for doubtful accounts of $869 and $859 respectively	64,496	75,593
Inventories	257,372	247,836
Income taxes receivable	6,857	3,699
Deferred income taxes		6,295
Other current assets	4,045	2,974
Total current assets	390,228	385,442
Property, plant and equipment, net	187,676	185,351
Deferred income taxes-long term portion	56,180	53,958
Prepayments and deferred charges	2,026	1,877
Goodwill	4,789	4,789
Other intangible assets, net	6,648	6,774
Total assets	647,547	638,191
Current liabilities:
Accounts payable	30,876	29,386
Accrued expenses	11,237	16,576
Accrued pension and postretirement benefits	4,965	4,965
Deferred revenue-current portion	18,569	2,500
Total current liabilities	65,647	53,427
Long-term obligations (less current portion)	4,576	4,574
Deferred revenue (less current portion)	24,704	25,329
Deferred income taxes	1,707
Accrued pension benefits	105,910	107,208
Accrued postretirement benefits	105,063	105,664
Total liabilities	$ 307,607	$ 296,202
Commitments and contingencies (Notes 9 and 10)
Stockholders' equity:
Common stock, $0.001 par value (40,000,000 shares authorized, 12,467,498 and 12,510,708 shares issued and 12,446,000 and 12,481,549 outstanding at September 30, 2015 and December 31, 2015, respectively)	$ 12	$ 12
Additional paid-in capital	244,958	244,488
Accumulated earnings	184,015	186,533
Treasury stock, 21,498 shares at September 30, 2015 and 29,159 shares at December 31, 2015	(1,380)	(1,091)
Accumulated other comprehensive loss	(87,665)	(87,953)
Total stockholders' equity	339,940	341,989
Total liabilities and stockholders' equity	$ 647,547	$ 638,191

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 859	$ 869
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)	12,510,708	12,467,498
Common stock, shares outstanding (in shares)	12,481,549	12,446,000
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)	29,159	21,498

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 95,070	$ 110,676
Cost of sales	82,982	90,405
Gross profit	12,088	20,271
Selling, general and administrative expense	10,276	9,736
Research and technical expense	915	887
Operating income	897	9,648
Interest income	(26)	(23)
Interest expense	138	16
Income before income taxes	785	9,655
Provision for income taxes	557	3,274
Net income	$ 228	$ 6,381
Net income (loss) per share:
Basic (in dollars per share)	$ 0.02	$ 0.51
Diluted (in dollars per share)	0.02	0.51
Dividend declared per common share (in dollars per share)	$ 0.22	$ 0.22

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 228	$ 6,381
Other comprehensive income (loss), net of tax:
Pension and postretirement	1,976	1,254
Foreign currency translation adjustment	(1,688)	(2,459)
Other comprehensive income (loss)	288	(1,205)
Comprehensive income	$ 516	$ 5,176

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 228	$ 6,381
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	5,114	4,278
Amortization	126	104
Pension and post-retirement expense - U.S. and U.K.	4,786	3,203
Change in long-term obligations	14
Stock compensation expense	584	457
Excess tax expense from restricted stock vesting	114
Deferred revenue	15,444	(625)
Deferred income taxes	4,075	(177)
Loss on disposition of property	11	113
Change in assets and liabilities:
Restricted cash	(9,200)
Accounts receivable	10,492	2,616
Inventories	(10,657)	(13,344)
Other assets	(1,236)	(308)
Accounts payable and accrued expenses	(3,516)	(5,188)
Income taxes	(2,676)	2,910
Accrued pension and postretirement benefits	(3,558)	(1,246)
Net cash provided by (used in) operating activities	10,145	(826)
Cash flows from investing activities:
Additions to property, plant and equipment	(7,051)	(3,214)
Net cash used in investing activities	(7,051)	(3,214)
Cash flows from financing activities:
Dividends paid	(2,746)	(2,738)
Payment for purchase of treasury stock	(289)	(251)
Excess tax expense from restricted stock vesting	(114)
Payment on long-term obligations	(12)
Net cash used in financing activities	(3,161)	(2,989)
Effect of exchange rates on cash	(720)	(468)
Decrease in cash and cash equivalents	(787)	(7,497)
Cash and cash equivalents:
Cash and cash equivalents, beginning of period	49,045	45,871
Cash and cash equivalents, end of period	48,258	38,374
Cash paid during period for:
Interest (net of capitalized interest)	122
Income taxes paid, (net of refunds)	(796)	535
Capital expenditures incurred but not yet paid	$ 2,346	$ 1,032

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 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, 2015 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 months ended December 31, 2015 are not necessarily indicative of the results to be expected for the full fiscal year ending September 30, 2016 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	3 Months Ended
	Dec. 31, 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 July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) . The objective of this update was to simplify the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. It is effective for annual reporting periods beginning after December 15, 2016 and interim periods within fiscal years beginning after December 15, 2017. The adoption of these changes is not expected to have a material impact to the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-15, Interest – Imputation of interest (Subtopic 835-30) : Simplifying the Presentation of Debt Issuance Costs, which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB clarified ASU 2015-15 to address presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. This amendment allows for the reporting entity to defer and present debt issuance costs as an asset and subsequently amortize the debt issuance costs over the term of the line-of-credit agreement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement, including interim periods within that reporting period. It is effective for fiscal 2017, including interim periods, and is not expected to result in a material impact to the consolidated financial statements or the related disclosures. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) : Balance Sheet Classification of Deferred Taxes. The objective of this update was to simplify the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent on the Consolidated Balance Sheet. The Company chose to adopt this standard change prospectively beginning in the first quarter of fiscal 2016.

Inventories

Inventories	3 Months Ended
	Dec. 31, 2015
Inventories
Inventories	Note 3. Inventories The following is a summary of the major classes of inventories: September 30, December 31, 2015 2015 Raw Materials $ $ Work-in-process Finished Goods Other $ $

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2015
Income Taxes
Income Taxes	Note 4. Income Taxes Income tax expense for the three months ended December 31, 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 December 31, 2015 was 71.0% compared to 33.9% in the same period of fiscal 2015. The higher effective tax rate for the first quarter of fiscal 2016 is primarily attributable to a change in the federal tax law that was enacted in the first quarter of fiscal 2016, which had a $300 unfavorable impact in the first quarter of fiscal 2016.

Pension and Post-retirement Ben

Pension and Post-retirement Benefits	3 Months Ended
	Dec. 31, 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 ended December 31, 2014 and 2015 were as follows: Three Months Ended December 31, Pension Benefits Other Benefits 2014 2015 2014 2015 Service cost $ $ $ $ Interest cost Expected return — — Amortizations Net periodic benefit cost $ $ $ $ The Company contributed $1,500 to Company-sponsored domestic pension plans, $1,807 to i ts other post-retirement benefit plans and $226 to the U.K. pension plan for the three months ended December 31, 2015. The Company presently expects future contributions of $4,500 to its U.S. pension plan, $ 3,063 to its other post-retirement benefit plan, and $456 to the U.K. pension plan for the remainder of fiscal 2016.

Legal, Environmental and Other

Legal, Environmental and Other Contingencies	3 Months Ended
	Dec. 31, 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 three actions related to asbestos in its facilities, which were filed in 2012 and 2014. 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 responded to the request, and there has been no further action by the EPA. As of September 30, 2015 and December 31, 2015, the Company has accrued $749 for post-closure monitoring and maintenance activities, of which $662 is included in long-term obligations as it is not due within one year. 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. Expected expenditures for post-closure monitoring and maintenance activities (discounted) included in long-term obligations were as follows at December 31, 2015. 2016 $ — 2017 2018 2019 2020 2021 and thereafter $

Deferred Revenue

Deferred Revenue	3 Months Ended
	Dec. 31, 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 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 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. In the first quarter of fiscal 2016, the Company received advance payments of $16,069 relate d to special projects . Revenue will be recognized as the Company ships the product to the customer.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets, Net	3 Months Ended
	Dec. 31, 2015
Goodwill and Other Intangible Assets, Net
Goodwill and Other Intangible Assets, Net	Note 8. Goodwill and Other Intangible Assets, Net The Company has goodwill, patents, trademarks, customer relationships and other intangibles. As the patents and customer relationships have a definite life, they are amortized over lives ranging from two to sixteen years. The company reviews patents and customer relationships for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the assets are measured by a comparison of the carrying amount of the asset to the discounted 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. Goodwill and trademarks (indefinite lived) are tested for impairment at least annually as of January 31 for Goodwill and August 31 for trademarks (the annual impairment testing dates), or more frequently if impairment indicators exist. If the carrying value of a trademark exceeds its fair value (determined using an income approach, 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. The impairment test for goodwill is performed using a two-step approach. The first step is the estimation of the fair value of the relevant reporting unit, which is compared to its carrying value. No impairment was recognized in the quarter ended December 31, 2015 because the fair value of the Company’s reporting unit accounting for the Company’s goodwill (as described below) exceeded its carrying value. 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). The following represents the changes in the carrying value of goodwill for the period ended December 31, 2015: Goodwill at September 30, 2015 $ Adjustments — Goodwill at December 31, 2015 $ Amortization of the customer relationships, patents, non-competes and other intangibles was $104 and $126 for the three-month periods ended December 31, 2014 and 2015, respectively. The following represents a summary of intangible assets at September 30, 2015 and December 31, 2015: Gross Accumulated Carrying September 30, 2015 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $ Gross Accumulated Carrying December 31, 2015 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $ Estimate of Aggregate Amortization Expense: Year Ended September 30, 2016 2017 2018 2019 2020 Thereafter

Net Income (Loss) Per Share

Net Income (Loss) Per Share	3 Months Ended
	Dec. 31, 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. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended December 31, (in thousands, except share and per share data) 2014 2015 Numerator: Basic and Diluted Net income $ $ 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 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 per share $ $ Diluted net income per share $ $ Number of stock option shares excluded as their effect would be anti-dilutive Number of restricted stock 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	3 Months Ended
	Dec. 31, 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 24, 2015, the Company granted 54,310 shares of restricted stock to certain key employees and non-employee directors. The time-based shares of restricted stock granted to employees will vest on the third anniversary of their grant date if the recipient is still an employee of the Company on such date. The performance-based shares will vest in equal installments on the first, second and third anniversaries of their grant date provided that (a) the recipient is still an employee of the Company on such date and (b) the Company has met certain annual net income performance goals, provided that, if the Company has exceeded a total net income performance goal for the three year period, restricted shares that did not vest due to the Company’s failure to meet the annual net income performance goals will vest at the end of such three year period. 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 was $37.75 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 three months ended December 31, 2015: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2015 $ Granted $ Forfeited / Canceled $ Vested $ Unvested at December 31, 2015 $ Expected to vest $ Compensation expense related to restricted stock for the three months ended December 31, 2014 and 2015 was $330 and $451 , respectively. The remaining unrecognized compensation expense related to restricted stock at December 31, 2015 was $3,286 , to be recognized over a weighted average period of 1. 16 years. During the first quarter of fiscal 2016, the Company repurchased 7,661 shares of stock from employees and directors at an average purchase price of $37.72 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 2016: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 24, 2015 $ % % % years On November 24, 2015, the Company granted 79,800 options at an exercise price of $37.75 , the fair market value of the Company’s common stock the day of the grant. During the first quarter of fiscal 2016, no options were exercised. The stock-based employee compensation expense for stock options for the three months ended December 31, 2014 and 2015 was $126 and $133 , respectively. The remaining unrecognized compensation expense at December 31, 2015 was $1,146 to be recognized over a weighted average vesting period of 1. 72 years. The following tables summarize the activity under the stock option plans for the three months ended December 31, 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, 2015 $ Granted $ Exercised — $ — Canceled — $ — Outstanding at December 31, 2015 $ $ yrs. Vested or expected to vest $ $ yrs. Exercisable at December 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 November 24, 2015 —

Dividend

Dividend	3 Months Ended
	Dec. 31, 2015
Dividend
Dividend	Note 11. Dividend In the first quarter of fiscal 2016, 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 December 15, 2015 to stockholders of record at the close of business on December 1, 2015. The dividend cash pay-out was $2,746 for the quarter based on the number of shares outstanding. On February 4, 2016, 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 March 15, 2016 to stockholders of record at the close of business on March 1, 2016.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 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 $49,045 and $48,258 as of September 30, 2015 and December 31, 2015, respectively, and restricted cash of $9,200 as of December 31, 2015 are considered Level 1.

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income (Loss) by Component	3 Months Ended
	Dec. 31, 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 December 31, 2014 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 December 31, 2014 $ $ $ $ Three Months Ended December 31, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive (loss) as of September 30, 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 December 31, 2015 $ $ $ $

Acquisition

Acquisition	3 Months Ended
	Dec. 31, 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 $14,600 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 purchase price allocation in connection with the LCMP acquisition. 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 and is tax deductible. 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	3 Months Ended
	Dec. 31, 2015
Leases, Capital [Abstract]
Capital lease obligation	Note 15. Capital Lease Obligation On January 1, 2015, the C ompany entered into a capital lease agreement for the building that houses the assets and operations of 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 December 31, 2015, future minimum lease rental payments applicable to the capital lease were as follows. 2016 $ 2017 2018 2019 2020 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, December 31, 2015 2015 Future capital lease rental payments $ $ Environmental post-closure monitoring and maintenance activities Less amounts due within one year Long-term obligations (less current portion) $ $

Restricted Cash

Restricted Cash	3 Months Ended
	Dec. 31, 2015
Restricted Cash
Restricted Cash	Note 16. Restricted Cash In the first quarter of fiscal 2016, the Company received advance payments of $16,069 relate d to special projects . Of this amount, the Company is restricted from having access to $9,200 until such time as the Company delivers product to the customer. As the Company begins to fulfill the order, the restricted cash will become unrestricted on a pro-rata basis with the percentage fulfillment of the order.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Dec. 31, 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)	3 Months Ended
	Dec. 31, 2015
Inventories
Summary of major classes of inventories	September 30, December 31, 2015 2015 Raw Materials $ $ Work-in-process Finished Goods Other $ $

Pension and Post-retirement B25

Pension and Post-retirement Benefits (Tables)	3 Months Ended
	Dec. 31, 2015
Pension and Post-retirement Benefits
Schedule of components of net periodic pension and postretirement benefit cost	Three Months Ended December 31, Pension Benefits Other Benefits 2014 2015 2014 2015 Service cost $ $ $ $ Interest cost Expected return — — Amortizations Net periodic benefit cost $ $ $ $

Legal, Environmental and Othe26

Legal, Environmental and Other Contingencies (Tables)	3 Months Ended
	Dec. 31, 2015
Legal, Environmental and Other Contingencies
Schedule of maturities of long-term obligations (discounted)	2016 $ — 2017 2018 2019 2020 2021 and thereafter $

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets, Net (Tables)	3 Months Ended
	Dec. 31, 2015
Goodwill and Other Intangible Assets, Net
Schedule Changes in the carrying value of goodwill	Goodwill at September 30, 2015 $ Adjustments — Goodwill at December 31, 2015 $
Summary of intangible assets	Gross Accumulated Carrying September 30, 2015 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $ Gross Accumulated Carrying December 31, 2015 Amount Amortization Amount Patents $ $ $ Trademarks — Customer relationships Other $ $ $
Schedule of estimate of aggregate amortization expense	Estimate of Aggregate Amortization Expense: Year Ended September 30, 2016 2017 2018 2019 2020 Thereafter

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Dec. 31, 2015
Net Income (Loss) Per Share
Schedule of basic and diluted net income (loss) per share	Three Months Ended December 31, (in thousands, except share and per share data) 2014 2015 Numerator: Basic and Diluted Net income $ $ 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 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 per share $ $ Diluted net income per share $ $ Number of stock option shares excluded as their effect would be anti-dilutive Number of restricted stock 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)	3 Months Ended
	Dec. 31, 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, 2015 $ Granted $ Forfeited / Canceled $ Vested $ Unvested at December 31, 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 24, 2015 $ % % % 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, 2015 $ Granted $ Exercised — $ — Canceled — $ — Outstanding at December 31, 2015 $ $ yrs. Vested or expected to vest $ $ yrs. Exercisable at December 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 November 24, 2015 —

Changes in Accumulated Other 30

Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables)	3 Months Ended
	Dec. 31, 2015
Changes in Accumulated Other Comprehensive Income (Loss) by Component
Schedule of accumulated other comprehensive income (loss)	Three Months Ended December 31, 2014 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 December 31, 2014 $ $ $ $ Three Months Ended December 31, 2015 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive (loss) as of September 30, 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 December 31, 2015 $ $ $ $

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
	Dec. 31, 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)	3 Months Ended
	Dec. 31, 2015
Leases, Capital [Abstract]
Schedule of future minimum lease rental payments applicable to the capital lease	2016 $ 2017 2018 2019 2020 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, December 31, 2015 2015 Future capital lease rental payments $ $ Environmental post-closure monitoring and maintenance activities Less amounts due within one year Long-term obligations (less current portion) $ $

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Inventories
Raw Materials	$ 25,485	$ 27,152
Work-in-process	112,596	117,601
Finished Goods	117,875	101,731
Other	1,416	1,352
Total	$ 257,372	$ 247,836

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Taxes
Statutory federal tax rate (as a percent)	35.00%	35.00%
Effective tax rate (as a percent)	71.00%	33.90%
Unfavorable impact of a change in federal tax law on income tax expense	$ 300

Pension and Post-retirement B35

Pension and Post-retirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Pension Plans
Pension Plan and Retirement Benefits
Service cost	$ 1,020	$ 975
Interest cost	2,848	2,641
Expected return	(3,376)	(3,563)
Amortizations	2,381	1,361
Net periodic benefit cost	2,873	1,414
U.S. pension plan
Pension Plan and Retirement Benefits
Employer contribution	1,500
Expected future employer contribution	4,500
U.K. pension plan
Pension Plan and Retirement Benefits
Employer contribution	226
Expected future employer contribution	456
Postretirement Health Care Benefits
Pension Plan and Retirement Benefits
Service cost	58	84
Interest cost	1,149	1,096
Amortizations	706	609
Net periodic benefit cost	1,913	$ 1,789
Employer contribution	1,807
Expected future employer contribution	$ 3,063

Legal, Environmental and Othe36

Legal, Environmental and Other Contingencies (Details)	3 Months Ended
	Dec. 31, 2015actionitem
Welding rod-related injuries | Pending litigation
Legal, Environmental and Other Contingencies
Number of actions in which the entity is involved | action	2
Asbestos in facilities | Pending litigation
Legal, Environmental and Other Contingencies
Number of actions in which the entity is involved | action	3
Site contingency
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

Legal, Environmental and Othe37

Legal, Environmental and Other Contingencies - Schdule of Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Environmental post-closure monitoring and maintenance activities	$ 749	$ 749
Long-term obligations (less current portion)
Maturities of long-term obligations (discounted)
2,017	73
2,018	77
2,019	58
2,020	49
2021 and thereafter	405
Long-term obligations (less current portion)	$ 662

Deferred Revenue (Details)

Deferred Revenue (Details) $ in Thousands, lb in Millions	Nov. 17, 2006USD ($)	Dec. 31, 2015USD ($)lb
Deferred revenue
Up-front/advance payment received		$ 16,069
Conversion Services Agreement
Deferred revenue
Term of agreement to provide conversion services	20 years
Up-front/advance payment received	$ 50,000
Additional volume of titanium metal to be converted on exercise of option by service receiver (in pounds) | lb		10
Liquidated damages		$ 25,000
Revenue recognition period		20 years
Conversion Services Agreement | 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 Intangible39

Goodwill and Other Intangible Assets, Net (Details) - USD ($) $ in Thousands	Jan. 07, 2015	Dec. 31, 2015	Sep. 30, 2015
Goodwill and Other Intangible Assets, Net
Goodwill		$ 4,789	$ 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
Patents | Minimum
Goodwill and Other Intangible Assets, Net
Useful life		2 years
Patents | Maximum
Goodwill and Other Intangible Assets, Net
Useful life		16 years
Customer relationships | Minimum
Goodwill and Other Intangible Assets, Net
Useful life		2 years
Customer relationships | Maximum
Goodwill and Other Intangible Assets, Net
Useful life		16 years
Customer relationships | Leveltek Processing, LLC
Goodwill and Other Intangible Assets, Net
Customer relationships	$ 2,100
Useful life		16 years

Goodwill and Other Intangible40

Goodwill and Other Intangible Assets, Net - Goodwill (Details) $ in Thousands	Dec. 31, 2015USD ($)
Goodwill and Other Intangible Assets, Net
Goodwill, Beginning Balance	$ 4,789
Goodwill, Ending Balance	$ 4,789

Goodwill and Other Intangible41

Goodwill and Other Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Intangible Assets
Amortization expense of patents, non-competes and other intangibles	$ 126	$ 104
Finite-Lived Intangible Assets, Gross	10,260		$ 10,260
Finite-lived intangible assets, Accumulated Amortization	(3,612)		(3,486)
Finite-lived intangible assets, Carrying Amount	6,648		6,774
Patents
Intangible Assets
Finite-Lived Intangible Assets, Gross	4,030		4,030
Finite-lived intangible assets, Accumulated Amortization	(3,162)		(3,091)
Finite-lived intangible assets, Carrying Amount	868		939
Customer relationships
Intangible Assets
Finite-Lived Intangible Assets, Gross	2,100		2,100
Finite-lived intangible assets, Accumulated Amortization	(159)		(119)
Finite-lived intangible assets, Carrying Amount	1,941		1,981
Other
Intangible Assets
Finite-Lived Intangible Assets, Gross	330		330
Finite-lived intangible assets, Accumulated Amortization	(291)		(276)
Finite-lived intangible assets, Carrying Amount	39		54
Trademarks
Intangible Assets
Finite-Lived Intangible Assets, Gross	3,800		3,800
Finite-lived intangible assets, Carrying Amount	$ 3,800		$ 3,800

Goodwill and Other Intangible42

Goodwill and Other Intangible Assets, Net - Amortization Expense (Details) $ in Thousands	Dec. 31, 2015USD ($)
Estimate of Aggregate Amortization Expense:
2016 (remainder of fiscal year)	$ 404
2,017	431
2,018	427
2,019	246
2,020	140
Thereafter	$ 1,200

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Numerator: Basic and Diluted
Net income	$ 228	$ 6,381
Dividends paid	(2,746)	(2,738)
Undistributed income (loss)	$ (2,518)	$ 3,643
Percentage allocated to common shares	99.00%	99.10%
Undistributed income (loss) allocated to common shares	$ (2,493)	$ 3,610
Dividends paid on common shares outstanding	2,719	2,713
Net income available to common shares	$ 226	$ 6,323
Denominator: Basic and Diluted
Weighted average common shares outstanding	12,345,564	12,333,550
Adjustment for dilutive potential common shares	7,520	12,923
Weighted average shares - Diluted	12,353,084	12,346,473
Basic net income per share (in dollars per share)	$ 0.02	$ 0.51
Diluted net income per share (in dollars per share)	$ 0.02	$ 0.51

Net Income (Loss) Per Share - A

Net Income (Loss) Per Share - Anit-dilutive Securities (Details) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Stock Options
Antidilutive securities
Number of shares excluded as their effect would be anti-dilutive	374,502	290,255
Restricted Stock
Antidilutive securities
Number of shares excluded as their effect would be anti-dilutive	121,410	112,750

Net Income (Loss) Per Share - W

Net Income (Loss) Per Share - Weighted Average Common Shares (Details) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Percentage allocated to common shares - weighted average
Common shares outstanding	12,345,564	12,333,550
Unvested participating shares	121,410	112,750
Total	12,466,974	12,446,300

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Plan (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands	Nov. 24, 2015	Dec. 31, 2015	Dec. 31, 2014	Feb. 23, 2009
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)		111,450
Granted (in shares)		54,310
Forfeited / Canceled (in shares)		(11,100)
Vested (in shares)		(33,250)
Unvested at end of the period (in shares)		121,410
Expected to vest (in shares)		109,310
Restricted stock plan activity, Weighted Average Fair Value at Grant Date
Unvested at beginning of the period (in dollars per share)		$ 49.07
Granted (in dollars per share)		37.75
Forfeited / Canceled (in dollars per share)		47.98
Vested (in dollars per share)		47.56
Unvested at end of the period (in dollars per share)		44.52
Expected to vest (in dollars per share)		$ 43.61
Restricted stock plan activity, other disclosures
Compensation expense		$ 451	$ 330
Remaining unrecognized compensation expense		$ 3,286
Weighted average period for recognition		1 year 1 month 28 days
Key Employees and Non-Employee Directors
Stock-Based Compensation
Period of performance goal based on net income used for determination of vesting period	3 years
Award vesting period	3 years
Restricted stock plan activity, number of shares
Granted (in shares)	54,310
Restricted stock plan activity, Weighted Average Fair Value at Grant Date
Granted (in dollars per share)	$ 37.75
Employees and Directors
Restricted stock plan activity, other disclosures
Repurchase of stock from employees (in shares)		7,661
Average purchase price (in dollars per share)		$ 37.72

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Plans (Details) - Stock Options $ / shares in Units, $ in Thousands	Nov. 24, 2015$ / sharesshares	Dec. 31, 2015USD ($)plan$ / sharesshares	Dec. 31, 2014USD ($)
Information relating to stock options
Number of plans | plan		2
Number of shares authorized		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	$ 8.37
Dividend Yield (as a percent)	2.33%
Risk-Free Interest Rate (as a percent)	1.70%
Expected Volatility (as a percent)	30.00%
Expected Life	5 years
Stock-based employee compensation expense | $		$ 133	$ 126
Remaining unrecognized compensation expense | $		$ 1,146
Weighted average period for recognition		1 year 8 months 19 days
Activity under stock option plans, number of shares
Outstanding at beginning of the period (in shares)		358,601
Granted (in shares)	79,800	79,800
Exercised (in shares)		0
Outstanding at end of the period (in shares)		438,401
Vested or expected to vest (in shares)		409,336
Exercisable at end of period (in shares)		289,453
Outstanding at end of period, Aggregate Intrinsic Value | $		$ 318
Vested or expected to vest, Aggregate Intrinsic Value | $		318
Exercisable at end of the period, Aggregate Intrinsic Value | $		$ 318
Weighted Average Exercise Prices
Outstanding at beginning of the period (in dollars per share) | $ / shares		$ 50.37
Granted (in dollars per share) | $ / shares	$ 37.75	37.75
Outstanding at end of period (in dollars per share) | $ / shares		48.07
Vested or expected to vest (in dollars per share) | $ / shares		48.27
Exercisable at end of the period (in dollars per share) | $ / shares		$ 50.93
Outstanding at end of the period, Weighted Average Remaining Contractual Life		6 years 1 month 6 days
Vested or expected to vest, Weighted Average Remaining Contractual Life		5 years 11 months 12 days
Exercisable at end of the period, Weighted Average Remaining Contractual Life		4 years 5 months 1 day
Original option plan August 2004
Information relating to stock options
Number of shares authorized		1,000,000
Second option plan January 2007
Information relating to stock options
Number of shares authorized		500,000

Stock-Based Compensation - Outs

Stock-Based Compensation - Outstanding Stock Options (Details) - Stock Options	3 Months Ended
	Dec. 31, 2015$ / sharesshares
Stock-Based Compensation
Outstanding Number of Shares	438,401
Exercisable Number of Shares	289,453
Exercise Price Per Share $31.00
Stock-Based Compensation
Exercise Price Per Share (in dollars per share) | $ / shares	$ 31
Remaining Contractual Life	3 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) | $ / shares	$ 72.93
Remaining Contractual Life	1 year 3 months
Outstanding Number of Shares	45,500
Exercisable Number of Shares	45,500
Exercise Price Per Share $54.00
Stock-Based Compensation
Exercise Price Per Share (in dollars per share) | $ / shares	$ 54
Remaining Contractual Life	2 years 3 months
Outstanding Number of Shares	55,500
Exercisable Number of Shares	55,500
Exercise Price Per Share $46.83
Stock-Based Compensation
Exercise Price Per Share (in dollars per share) | $ / shares	$ 46.83
Remaining Contractual Life	2 years 9 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) | $ / shares	$ 17.82
Remaining Contractual Life	3 years 3 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) | $ / shares	$ 34
Remaining Contractual Life	4 years
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) | $ / shares	$ 40.26
Remaining Contractual Life	4 years 11 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) | $ / shares	$ 55.88
Remaining Contractual Life	5 years 11 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) | $ / shares	$ 47.96
Remaining Contractual Life	6 years 11 months 1 day
Outstanding Number of Shares	35,600
Exercisable Number of Shares	35,600
Exercise Price Per Share $48.39
Stock-Based Compensation
Exercise Price Per Share (in dollars per share) | $ / shares	$ 48.39
Remaining Contractual Life	6 years 11 months 1 day
Outstanding Number of Shares	1,800
Exercisable Number of Shares	1,800
Exercise Price Per Share $52.78
Stock-Based Compensation
Exercise Price Per Share (in dollars per share) | $ / shares	$ 52.78
Remaining Contractual Life	7 years 11 months 1 day
Outstanding Number of Shares	45,250
Exercisable Number of Shares	30,168
Exercise Price Per Share $46.72
Stock-Based Compensation
Exercise Price Per Share (in dollars per share) | $ / shares	$ 46.72
Remaining Contractual Life	8 years 11 months 1 day
Outstanding Number of Shares	81,100
Exercisable Number of Shares	27,034
Exercise Price Per Share $37.75
Stock-Based Compensation
Exercise Price Per Share (in dollars per share) | $ / shares	$ 37.75
Remaining Contractual Life	9 years 11 months 1 day
Outstanding Number of Shares	79,800

Dividend (Details)

Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 04, 2016	Dec. 31, 2015	Dec. 31, 2014
Common stock dividend
Dividend declared (in dollars per share)	$ 0.22	$ 0.22	$ 0.22
Dividend paid (in dollars per share)		$ 0.22
Dividend paid (in dollars)		$ 2,746	$ 2,738

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair value measurements on recurring basis - Level 1 - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Assets:
Cash and cash equivalents	$ 48,258	$ 49,045
Restricted cash	$ 9,200

Changes in Accumulated Other 51

Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accumulated other comprehensive income (loss)
Balance	$ 341,989
Net current-period other comprehensive income (loss)	288	$ (1,205)
Balance	339,940
AOCI Attributable to Parent
Accumulated other comprehensive income (loss)
Balance	(87,953)	(61,828)
Other comprehensive income (loss) before classifications	(1,688)	(2,459)
Net current-period other comprehensive income (loss)	288	(1,205)
Balance	(87,665)	(63,033)
Defined Benefit Plans
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), Tax expense or (benefit)	(1,150)	(738)
Defined Benefit Plans | Defined Benefit Pension Plans
Accumulated other comprehensive income (loss)
Balance	(62,985)	(42,800)
Amounts reclassified from accumulated other comprehensive income (loss), Tax expense or (benefit)	(890)	(513)
Net current-period other comprehensive income (loss)	1,530	872
Balance	(61,455)	(41,928)
Defined Benefit Plans | Postretirement Health Care Benefits
Accumulated other comprehensive income (loss)
Balance	(21,773)	(20,000)
Amounts reclassified from accumulated other comprehensive income (loss), Tax expense or (benefit)	(260)	(225)
Net current-period other comprehensive income (loss)	446	382
Balance	(21,327)	(19,618)
Amortization of Pension and Postretirement Plan items
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	202	202
Amortization of Pension and Postretirement Plan items | Defined Benefit Pension Plans
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	202	202
Actuarial losses
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	2,924	1,790
Actuarial losses | Defined Benefit Pension Plans
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	2,218	1,183
Actuarial losses | Postretirement Health Care Benefits
Accumulated other comprehensive income (loss)
Amounts reclassified from accumulated other comprehensive income (loss), before tax	706	607
Foreign Exchange
Accumulated other comprehensive income (loss)
Balance	(3,195)	972
Other comprehensive income (loss) before classifications	(1,688)	(2,459)
Net current-period other comprehensive income (loss)	(1,688)	(2,459)
Balance	$ (4,883)	$ (1,487)

Acquisition (Details)

Acquisition (Details) - USD ($) $ in Thousands	Jan. 07, 2015	Dec. 31, 2015	Sep. 30, 2015
Purchase Price Allocation
Goodwill		$ 4,789	$ 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	Dec. 31, 2015	Sep. 30, 2015
Leases, Capital [Abstract]
Lease Term	20 years
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2016 (remainder of fiscal year)		$ 357
2,017		534
2,018		538
2,019		545
2,020		550
Thereafter		8,100
Total minimum capital lease payments		10,624
Less amounts representing interest		(6,255)
Present value of net minimum capital lease payments		4,369	$ 4,380
Less current obligation		(455)
Total long term capital lease obligation		3,914
Long-term obligations (less current portion)
Future capital lease rental payments		4,369	4,380
Environmental post-closure monitoring and maintenance activities		749	749
Less amounts due within one year		(542)	(555)
Long-term obligations (less current portion)		$ 4,576	$ 4,574

Restricted Cash (Details)

Restricted Cash (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)
Restricted Cash
Advance payments received	$ 16,069
Restricted cash	$ 9,200