Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2018 | Jan. 31, 2019 | |
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, 2018 | |
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 | 12,517,492 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 11,609 | $ 9,802 |
Accounts receivable, less allowance for doubtful accounts of $1,130 and $1,294 at September 30, 2018 and December 31, 2018, respectively | 64,948 | 73,437 |
Inventories | 281,041 | 273,045 |
Income taxes receivable | 2,180 | 7,240 |
Other current assets | 3,549 | 2,825 |
Total current assets | 363,327 | 366,349 |
Property, plant and equipment, net | 177,290 | 179,400 |
Deferred income taxes | 24,964 | 25,454 |
Other assets | 6,730 | 7,163 |
Goodwill | 4,789 | 4,789 |
Other intangible assets, net | 5,434 | 5,539 |
Total assets | 582,534 | 588,694 |
Current liabilities: | ||
Accounts payable | 36,422 | 37,140 |
Accrued expenses | 16,752 | 17,463 |
Accrued pension and postretirement benefits | 5,095 | 5,095 |
Deferred revenue - current portion | 2,500 | 2,500 |
Total current liabilities | 60,769 | 62,198 |
Long-term obligations (less current portion) (Note 15) | 8,409 | 8,443 |
Deferred revenue (less current portion) | 17,204 | 17,829 |
Deferred income taxes | 1,919 | 1,919 |
Accrued pension benefits (less current portion) | 62,340 | 62,072 |
Accrued postretirement benefits (less current portion) | 103,269 | 103,013 |
Total liabilities | 253,910 | 255,474 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value (40,000,000 shares authorized, 12,546,591 and 12,568,831 shares issued and 12,504,478 and 12,517,492 shares outstanding at September 30, 2018 and December 31, 2018, respectively) | 13 | 13 |
Preferred stock, $0.001 par value (20,000,000 shares authorized, 0 shares issued and outstanding) | ||
Additional paid-in capital | 251,718 | 251,053 |
Accumulated earnings | 122,226 | 126,588 |
Treasury stock, 42,113 shares at September 30, 2018 and 51,339 shares at December 31, 2018 | (2,177) | (1,869) |
Accumulated other comprehensive loss | (43,156) | (42,565) |
Total stockholders' equity | 328,624 | 333,220 |
Total liabilities and stockholders' equity | $ 582,534 | $ 588,694 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 1,294 | $ 1,130 |
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) | 12,568,831 | 12,546,591 |
Common stock, shares outstanding (in shares) | 12,517,492 | 12,504,478 |
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) | 51,339 | 42,113 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net revenues | $ 107,069 | $ 89,693 |
Cost of sales | 95,734 | 80,618 |
Gross profit | 11,335 | 9,075 |
Selling, general and administrative expense | 11,128 | 10,747 |
Research and technical expense | 834 | 888 |
Operating income (loss) | (627) | (2,560) |
Nonoperating retirement benefit expense | 856 | 2,088 |
Interest income | (20) | (18) |
Interest expense | 241 | 230 |
Income (loss) before income taxes | (1,704) | (4,860) |
Provision for (benefit from) income taxes | (101) | 17,666 |
Net income (loss) | $ (1,603) | $ (22,526) |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ (0.13) | $ (1.82) |
Diluted (in dollars per share) | $ (0.13) | $ (1.82) |
Weighted Average Common Shares Outstanding | ||
Weighted average common shares outstanding - Basic | 12,430,785 | 12,410,896 |
Weighted average common shares outstanding - Diluted | 12,430,785 | 12,410,896 |
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, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income (loss) | $ (1,603) | $ (22,526) |
Other comprehensive income (loss), net of tax: | ||
Pension and postretirement | 580 | 1,306 |
Foreign currency translation adjustment | (1,171) | 517 |
Other comprehensive income (loss) | (591) | 1,823 |
Comprehensive income (loss) | $ (2,194) | $ (20,703) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,603) | $ (22,526) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 4,550 | 5,744 |
Amortization | 105 | 133 |
Pension and post-retirement expense - U.S. and U.K. | 2,245 | 3,556 |
Change in long-term obligations | (7) | |
Stock compensation expense | 450 | 606 |
Deferred revenue | (625) | (625) |
Deferred income taxes | 289 | 27,488 |
Loss on disposition of property | 5 | |
Change in assets and liabilities: | ||
Accounts receivable | 8,106 | 6,979 |
Inventories | (8,815) | (22,502) |
Other assets | (293) | (989) |
Accounts payable and accrued expenses | (1,458) | 8,583 |
Income taxes | 5,081 | (10,300) |
Accrued pension and postretirement benefits | (934) | (2,400) |
Net cash provided by (used in) operating activities | 7,096 | (6,253) |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (2,271) | (3,183) |
Net cash provided by (used in) investing activities | (2,271) | (3,183) |
Cash flows from financing activities: | ||
Revolving credit facility borrowings | 2,000 | |
Revolving credit facility repayments | (2,000) | |
Dividends paid | (2,752) | (2,754) |
Proceeds from exercise of stock options | 215 | |
Payment for purchase of treasury stock | (308) | (230) |
Payment on long-term obligation | (34) | (67) |
Net cash provided by (used in) financing activities | (2,879) | (3,051) |
Effect of exchange rates on cash | (139) | 125 |
Increase (decrease) in cash and cash equivalents: | 1,807 | (12,362) |
Cash and cash equivalents: | ||
Beginning of period | 9,802 | 46,328 |
End of period | 11,609 | 33,966 |
Supplemental disclosures of cash flow information: | ||
Interest (net of capitalized interest) | 226 | 215 |
Income taxes paid (refunded), net | (5,472) | 464 |
Capital expenditures incurred, but not yet paid | 952 | 896 |
Dividends declared but not yet paid | $ 7 | $ 4 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2018 | |
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 (“GAAP”), and such principles are applied on a basis consistent with information reflected in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018 filed with the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP 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 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, 2018 are not necessarily indicative of the results to be expected for the full fiscal year ending September 30, 2019 or any interim period. Principles of Consolidation The consolidated financial statements include the accounts of Haynes International, Inc. and directly or indirectly wholly-owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances are eliminated. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Dec. 31, 2018 | |
Recently Issued Accounting Standard | |
Recently Issued Accounting Standards | Note 2. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (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. This update provides a five-step analysis of transactions to determine when and how revenue is recognized, along with expanded disclosure requirements. An entity should 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. In adoption of this accounting standard update using the modified retrospective method, the Company had no cumulative effect to record on the Consolidated Statement of Comprehensive Income (Loss). See Note 3 for further explanation related to this adoption, including all newly expanded disclosure requirements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . This new guidance will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The new lease accounting requirements are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) . This new guidance requires entities to (1) disaggregate the service cost component from the other components of net benefit cost and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The amendments in this ASU also only allow the service cost component to be eligible for capitalization. This new guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted. The Company adopted the standard on October 1, 2018. The amendments are applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. As a result of the retrospective change in presentation, the Company reclassified $2.0 million from cost of sales to Nonoperating retirement benefit expense on the Consolidated Statements of Operations for the quarter ended December 31, 2017. The Company used the practical expedient allowed in the standard upon transition that permitted entities to use their previously disclosed service cost and other costs from the prior years’ pension and other postretirement benefit plan footnotes in the comparative periods as appropriate estimates when retrospectively changing the presentation of these costs in the income statement. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) . This new guidance removes and modifies disclosure requirements on fair value statements. This update is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact, if any, on its disclosures in the Notes to Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20) . This new guidance removes and modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Some disclosure requirements that are removed include, among others, amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year and the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. This update is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
Dec. 31, 2018 | |
Revenues from contracts with customers | |
Revenues from Contracts with Customers | Note 3. On October 1, 2018, the Company adopted Accounting Standards Codification Topic 606 (ASC 606), Revenue from Contracts with Customers. This new guidance requires the Company to apply a five-step analysis to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. This new guidance was adopted using the modified retrospective method. The adoption of ASC 606 did not result in the need to recognize a cumulative effect of initial application as an adjustment to retained earnings. In accordance with ASC 606, the Company has presented reserves for sales returns within Accrued expenses on the Consolidated Balance Sheet which differs from previous periods which included these reserves as contra-assets within Accounts receivable. Performance Obligations Revenue is recognized when performance obligations under the terms of contracts with the customer are satisfied, which occurs when control of the goods and services have been transferred to the customer. This predominately occurs upon shipment or delivery of the product or when the service is performed. The Company may occasionally have customer agreements involving production and shipment of goods that would require revenue to be recognized over time in accordance with the new guidance due to there being no alternative use for the product without significant economic loss and enforceable right to payment including a normal profit margin from the customer in the event of contract termination. Over-time recognition was a change from the accounting for these products, which was point-in-time prior to the adoption of the new standard. As of October 1, 2018 and December 31, 2018, the Company did not have any customer agreements that would require revenue to be recorded over time. The customer purchase order or contract for goods transferred has a single performance obligation for which revenue is recognized at either a point in time or over-time as described in the preceding paragraph. The standard terms and conditions of a customer purchase order include limited warranties and the right of customers to have products that do not meet specifications repaired or replaced, at the Company’s option. Such warranties do not represent a separate performance obligation. The customer agreement with Titanium Metals Corporation (“TIMET”) (See Note 8) includes the performance obligation to provide conversion services for up to ten million pounds of titanium metal annually over a twenty-year period which ends in fiscal 2027. The transaction price under this contract included a $50 million up-front fee as well as conversion service fees based upon the fulfillment of conversion services requested at the option of TIMET. In accordance with ASC 606, the $50 million fee is allocated to the obligation to provide manufacturing capacity over time and, therefore, is recognized in income on a straight-line basis over the 20-year term of that agreement. The fees for conversion services are based on quantity of service and are recognized as revenue at the time the service is performed. Transaction Price Each customer purchase order or contract sets forth the transaction price for the products and services purchased under that arrangement. Some customer arrangements may include variable consideration, such as volume rebates, which generally depend upon the Company’s customers meeting specified performance criteria, such as a purchasing level over a period of time. The Company exercises judgment to estimate the most likely amount of variable consideration at each reporting date. Revenue is measured as the amount of consideration expected to be received in exchange for the transfer goods or services to customers. Revenue consists of product sales or conversion services, and is reported net of sales discounts, rebates, incentives, returns, and other allowances offered to customers, if applicable. Payment terms vary from customer to customer depending upon credit worthiness, prior payment history and other credit considerations. Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer the goods are included in revenues and costs incurred by the Company for the delivery of goods are classified as cost of sales in the consolidated statements of income. Shipping terms may vary for products shipped outside the United States depending on the mode of transportation, the country where the material is shipped and any agreements made with the customers. Contract Balances As of September 30, 2018 and December 31, 2018, accounts receivable with customers were $74,567 and $66,242, respectively. Allowance for doubtful accounts as of September 30, 2018 and December 31, 2018 were $1,130 and $1,294, respectively, and are presented within Accounts receivable, less allowance for doubtful accounts on the Consolidated Balance Sheet. Contract liabilities are recognized when the Company has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the purchase order or contract. As of September 30, 2018 and December 31, 2018, no contract liabilities have been recorded except for $20,329 and $19,704, respectively for the TIMET agreement. Practical Expedients The Company has elected to use the practical expedient that permits the omission of disclosure for remaining performance obligations which are expected to be satisfied within one year or less. Aside from the TIMET agreement, the Company does not have any remaining performance obligations in excess of one year or contracts that it does not have the right to invoice as of December 31, 2018. Disaggregation of Revenue Revenue is disaggregated by end-use markets. The following table includes a breakdown of net revenues to the markets served by the Company for the three-month period ending December 31, 2017 and 2018. Three Months Ended December 31, 2017 2018 Net revenues (dollars in thousands) Aerospace $ 46,839 $ 54,607 Chemical processing 13,356 18,920 Industrial gas turbine 13,421 14,083 Other markets 9,238 14,285 Total product revenue 82,854 101,895 Other revenue 6,839 5,174 Net revenues $ 89,693 $ 107,069 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2018 | |
Inventories | |
Inventories | Note 4. Inventories The following is a summary of the major classes of inventories: September 30, December 31, 2018 2018 Raw Materials $ 17,897 $ 20,287 Work-in-process 147,921 150,722 Finished Goods 105,640 108,423 Other 1,587 1,609 $ 273,045 $ 281,041 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Income Taxes | Note 5. Income Taxes On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (“the Act”), which made significant changes to U.S. federal income tax law including, among other things, lowering corporate income tax rates, permitting bonus depreciation that will allow for full expensing of qualified property, and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. Beginning October 1, 2017 and continuing through September 30, 2018, the Company’s U.S. income was taxed at a 24.5% federal tax rate after which time the federal tax rate applicable to the Company was lowered to 21.0%. Deferred tax assets beginning as of December 31, 2017 were revalued to the lower statutory rates of 24.5% or 21.0%, depending upon the projected timing of the reversal of those assets. The estimated impact of the revaluation of the deferred tax assets resulted in increased tax expense in the first three months of fiscal 2018 of $17,868 which was recorded as a discrete accounting adjustment. Income tax expense for the three months ended December 31, 2017 and 2018 differed from the U.S. federal statutory rates of 24.5% and 21.0%, respectively, primarily due to state income taxes, differing tax rates on foreign earnings and discrete tax items that impacted income tax expense in these periods. Current period tax expense was unfavorably impacted due to the forfeiture of unexercised stock options which resulted in $0.3 million of additional tax expense during the first three months of fiscal 2019. |
Pension and Post-retirement Ben
Pension and Post-retirement Benefits | 3 Months Ended |
Dec. 31, 2018 | |
Pension and Post-retirement Benefits | |
Pension and Post-retirement Benefits | Note 6. Pension and Post-retirement Benefits Components of net periodic pension and post-retirement benefit cost for the three months ended December 31, 2017 and 2018 were as follows: Three Months Ended December 31, Pension Benefits Other Benefits 2017 2018 2017 2018 Service cost $ 1,384 $ 1,310 $ 84 $ 79 Interest cost 2,606 2,566 1,078 1,088 Expected return (3,634) (3,572) — — Amortizations 1,289 402 749 372 Net periodic benefit cost $ 1,645 $ 706 $ 1,911 $ 1,539 The Company contributed $0 to Company-sponsored domestic pension plans, $911 to its other post-retirement benefit plans and $191 to the U.K. pension plan for the three months ended December 31, 2018. The Company expects to make contributions of $4,500 to its U.S. pension plan, $4,089 to its other post-retirement benefit plan and $591 to the U.K. pension plan for the remainder of fiscal 2019. |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 3 Months Ended |
Dec. 31, 2018 | |
Legal, Environmental and Other Contingencies | |
Legal, Environmental and Other Contingencies | Note 7. Legal 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. Environmental The Company has received permits from the Indiana Department of Environmental Management and the North Carolina Department of Environment and Natural Resources to close and provide post‑closure environmental monitoring and care for certain areas of its Kokomo, Indiana and Mountain Home, North Carolina facilities, respectively. The Company is required to, among other things, 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 testing and corrective action by the Company could be required. The Company is unable to estimate the costs of any further corrective action at these sites, if required. Accordingly, the Company cannot assure that the costs of any future corrective action at these or any other current or former sites would not have a material effect on the Company’s financial condition, results of operations or liquidity. As of September 30, 2018 and December 31, 2018, the Company has accrued $504 for post-closure monitoring and maintenance activities, of which $449 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 maturities of post-closure monitoring and maintenance activities (discounted) included in long-term obligations are as follows at December 31, 2018. 2020 $ 52 2021 59 2022 49 2023 48 2024 and thereafter 241 $ 449 On February 11, 2016, the Company voluntarily reported to the Louisiana Department of Environmental Quality a leak that it discovered in one of its chemical cleaning operations at its Arcadia, Louisiana facility. As a result of the discovery, the Company is working with that department to determine the extent of the issue and appropriate remediation. Management does not currently expect that any remediation costs related to this matter will have a material adverse effect on the Company’s results of operations. |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Dec. 31, 2018 | |
Deferred Revenue | |
Deferred Revenue | Note 8. On November 17, 2006, the Company entered into a twenty-year agreement to provide conversion services (“Conversion Services Agreement”) 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 | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill and Other Intangible Assets, Net | |
Goodwill and Other Intangible Assets, Net | Note 9. 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. During the first three months of fiscal 2019, the patents of the Company became fully amortized. The Company reviews customer relationships for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the assets is 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 by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment loss in the event that the carrying amount is greater than the fair value. Any goodwill impairment loss recognized would not exceed the total carrying amount of goodwill allocated to that reporting unit. No impairment has been recognized as of December 31, 2018. During the first three months of fiscal 2019, there were no changes in the carrying amount of goodwill. Amortization of customer relationships, patents, non-competes and other intangibles was $133 and $105 for the three-month periods ended December 31, 2017 and 2018, respectively. The following represents a summary of intangible assets at September 30, 2018 and December 31, 2018. Gross Accumulated Carrying September 30, 2018 Amount Amortization Amount Patents $ 4,030 $ (3,977) $ 53 Trademarks 3,800 — 3,800 Customer relationships 2,100 (574) 1,526 Other 291 (131) 160 $ 10,221 $ (4,682) $ 5,539 Gross Accumulated Carrying December 31, 2018 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (611) 1,489 Other 291 (146) 145 $ 6,191 $ (757) $ 5,434 Estimated future Aggregate Amortization Expense: Year Ended September 30, 2019 $ 151 2020 198 2021 179 2022 133 2023 129 Thereafter 844 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Dec. 31, 2018 | |
Net Income (Loss) Per Share | |
Net Income (Loss) Per Share | Note 10. 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 (losses) per share for the periods indicated: Three Months Ended December 31, (in thousands, except share and per share data) 2017 2018 Numerator: Basic and Diluted Net income (loss) $ (22,526) $ (1,603) Dividends paid and accrued (2,758) (2,759) Undistributed income (loss) (25,284) (4,362) Percentage allocated to common shares (a) 100.0 % 100.0 % Undistributed income (loss) allocated to common shares (25,284) (4,362) Dividends paid on common shares outstanding 2,737 2,737 Net income (loss) available to common shares (22,547) (1,625) Denominator: Basic and Diluted Weighted average common shares outstanding 12,410,896 12,430,785 Adjustment for dilutive potential common shares — — Weighted average shares outstanding - Diluted 12,410,896 12,430,785 Basic net income (loss) per share $ (1.82) $ (0.13) Diluted net income (loss) per share $ (1.82) $ (0.13) Number of stock option shares excluded as their effect would be anti-dilutive 366,776 227,565 Number of restricted stock shares excluded as their effect would be anti-dilutive 97,835 68,700 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive 16,550 29,050 Number of performance share awards excluded as their effect would be anti-dilutive 43,800 43,101 (a ) Percentage allocated to common shares - Weighted average Common shares outstanding 12,410,896 12,430,785 Unvested participating shares — — 12,410,896 12,430,785 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2018 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 11. Stock-Based Compensation Restricted Stock On February 23, 2009, the Company adopted a restricted stock plan that reserved 400,000 shares of common stock for issuance. Additionally, on March 1, 2016, the Company adopted the 2016 Incentive Compensation Plan which provides for grants of restricted stock, restricted stock units and performance shares, among other awards. Up to 275,000 shares of restricted stock, restricted stock units and performance shares may be granted in the aggregate under this plan. Following the adoption of the 2016 Incentive Compensation Plan, the Company ceased granting awards from the 2009 restricted stock plan, although awards remain outstanding thereunder. Grants of restricted stock are comprised 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. The shares of time-based restricted stock granted to employees vest on the third anniversary of their grant date if the recipient is still an employee of the Company on such date. 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 following table summarizes the activity under the 2009 restricted stock plan and the 2016 Incentive Compensation Plan with respect to restricted stock for the three months ended December 31, 2018: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2018 81,993 $ 37.28 Granted 26,850 $ 33.98 Forfeited / Canceled (16,694) $ 37.75 Vested (23,449) $ 38.26 Unvested at December 31, 2018 68,700 $ 35.55 Expected to vest 68,700 $ 35.55 Compensation expense related to restricted stock for the three months ended December 31, 2017 and 2018 was $315 and $53, respectively. The remaining unrecognized compensation expense related to restricted stock at December 31, 2018 was $1,523, to be recognized over a weighted average period of 0.88 years. During the first quarter of fiscal 2019, the Company repurchased 9,226 shares of stock from employees at an average purchase price of $33.40 to satisfy required withholding taxes upon vesting of restricted stock-based compensation. Deferred Restricted Stock On November 20, 2017, the Company adopted a deferred compensation plan that allows directors and officers the option to defer receipt of cash and stock compensation. On November 21, 2017, the Company granted shares of restricted stock from the 2016 Incentive Compensation Plan with respect to which elections were made by certain individuals to defer receipt to a future period. Those shares will vest in accordance with the parameters of the 2016 Incentive Compensation Plan, however, receipt of the shares and any corresponding dividends are deferred until the end of the deferral period. In the event the deferred shares are forfeited prior to the vesting date, deferred dividends pertaining to those shares will also be forfeited. During the deferral period, the participants who elected to defer shares will not have voting rights with respect to those shares. The following table summarizes the activity under the 2016 Incentive Compensation Plan with respect to deferred restricted stock for the three months ended December 31, 2018. Weighted Average Fair Number of Value At Shares Grant Date Deferred at September 30, 2018 16,550 $ 31.76 Granted 12,500 $ Deferred at December 31, 2018 29,050 $ Vested and Deferred at December 31, 2018 16,550 $ 31.76 Compensation expense related to deferred restricted stock for the three months ended December 31, 2017 and 2018 was $44 and $124, respectively. The remaining unrecognized compensation expense related to restricted stock at December 31, 2018 was $389, to be recognized over a weighted average period of 0.41 years. Performance Shares Beginning in fiscal 2017, the Company granted to certain employees target numbers of performance shares under the 2016 Incentive Compensation Plan. The number of performance shares that will ultimately be earned, as well as the number of shares that will be distributed in settling those earned performance shares, if any, will not be determined until the end of the performance period. Performance shares earned will depend on the calculated total shareholder return of the Company at the end of the three-year period commencing from the beginning of the fiscal year in which the award was granted as compared to the total shareholder return of the Company’s peer group, as defined by the Compensation Committee for this purpose. The fair value of the performance shares is estimated as of the date of the grant using a Monte Carlo simulation model. Compensation expense related to the performance shares for the three months ended December 31, 2017 and 2018 was $128 and $121, respectively. The remaining unrecognized compensation expense related to performance shares at December 31, 2018 was $1,541, to be recognized over a weighted average period of 1.90 years. The following table summarizes the activity under the 2016 Incentive Compensation Plan with respect to performance shares for the three months ended December 31, 2018. Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2018 30,344 $ Granted 23,344 $ Forfeited / Canceled — — Unvested at December 31, 2018 53,688 $ Stock Options The Company’s 2016 Incentive Compensation Plan and its previous stock option plans authorize, or formerly authorized, the granting of non-qualified stock options to certain key employees and non-employee directors for the purchase of a maximum of 1,925,000 shares of the Company’s common stock. On March 1, 2016, the Company adopted the 2016 Incentive Compensation Plan which provides for grants of up to 425,000 stock options and stock appreciation rights. Following the adoption of the 2016 Incentive Compensation Plan, the Company ceased granting awards from its previous stock option plans, although awards remain outstanding from a plan that was adopted in January 2007, which provided for the grant of 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 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 Company has elected to use the Black-Scholes option pricing model to estimate fair value, which incorporates various assumptions including volatility, expected life, risk-free interest rates 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 dividend yield assumption is based on the Company’s history and expectations regarding dividend payouts at the time of the grant. The following assumptions were used for grants during fiscal years 2018 and 2019: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 21, 2018 $ % % 41 % 5 years September 17, 2018 $ % % 40 % 5 years June 1, 2018 $ % % 41 % 5 years November 21, 2017 $ 9.74 2.77 % 2.06 % 42 % 5 years The stock-based employee compensation expense for stock options for the three months ended December 31, 2017 and 2018 was $118 and $152, respectively. The remaining unrecognized compensation expense at December 31, 2018 was $1,218, to be recognized over a weighted average vesting period of 1.24 years. The following table summarizes the activity under the stock option plans and the 2016 Incentive Compensation Plan with respect to stock options for the three months ended December 31, 2018 and provides 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, 2018 410,675 $ 42.72 Granted 74,760 $ 33.98 Exercised (12,084) $ 17.82 Canceled (114,433) $ 46.00 Outstanding at December 31, 2018 358,918 $ — $ 40.69 yrs. Vested or expected to vest 329,228 $ — $ 40.54 yrs. Exercisable at December 31, 2018 227,565 $ — $ 43.91 yrs. |
Dividend
Dividend | 3 Months Ended |
Dec. 31, 2018 | |
Dividend | |
Dividend | Note 12. Dividend In the first quarter of fiscal 2019, 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 17, 2018 to stockholders of record at the close of business on December 3, 2018. The dividend cash pay-out was $2,752 for the quarter based on the number of shares outstanding and $6 of dividends were recorded as deferred in accordance with the Deferred Compensation Plan. On January 31, 2019, 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, 2019 to stockholders of record at the close of business on March 1, 2019. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | Note 13. 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. The fair value of cash and cash equivalents is determined using Level 1 information. The Company had no Level 2 or Level 3 assets or liabilities as of September 30, 2018 or December 31, 2018. U.S. and international equities, fixed income and other investments held in the Company’s pension plan are held in mutual funds and common / collective funds which are valued using net asset value (NAV) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. These investments are not classified in the fair value hierarchy in accordance with guidance included in ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component | 3 Months Ended |
Dec. 31, 2018 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Note 14. 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, post-retirement and foreign currency translation adjustments, primarily caused by the strengthening of the U.S. dollar against the British pound sterling, net of tax when applicable. Accumulated Other Comprehensive Income (Loss) Three Months Ended December 31, 2017 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2017 $ (43,012) $ (21,691) $ (7,991) $ (72,694) Other comprehensive income (loss) before reclassifications — — 517 517 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) 93 — — 93 Actuarial losses (a) 1,223 750 — 1,973 Tax benefit (484) (276) — (760) Net current-period other comprehensive income (loss) 832 474 517 1,823 Accumulated other comprehensive income (loss) as of December 31, 2017 $ (42,180) $ (21,217) $ (7,474) $ (70,871) Three Months Ended December 31, 2018 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2018 $ (21,473) $ (11,201) $ (9,891) $ (42,565) Other comprehensive income (loss) before reclassifications — — (1,171) (1,171) Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) 51 — — 51 Actuarial losses (a) 364 372 — 736 Tax benefit (108) (99) — (207) Net current-period other comprehensive income (loss) 307 273 (1,171) (591) Accumulated other comprehensive loss as of December 31, 2018 $ (21,166) $ (10,928) $ (11,062) $ (43,156) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Long-term Obligations
Long-term Obligations | 3 Months Ended |
Dec. 31, 2018 | |
Long-term Obligations | |
Long-term Obligations | Note 15. Long-term Obligations 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. 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. The Company entered into a twenty-year “build-to-suit” lease for a building that houses the assets and operations of the service center located in LaPorte, Indiana that was relocated from Lebanon, Indiana. During the first quarter of fiscal 2017, the Company took occupancy of the building. The Company retained substantially all of the construction risk and was deemed to be the owner of the facility for accounting purposes, even though it is not the legal owner. Construction costs incurred relative to the buildout of the facility of approximately $4,100 are included in Property, plant and equipment, net on the Consolidated Balance Sheet and are depreciated over the 20-year lease term. The Company accounts for the related build-to-suit liability as a financing obligation. As of December 31, 2018, future minimum lease rental payments during each fiscal year applicable to the lease obligations were as follows. 2019 $ 743 2020 995 2021 1,000 2022 1,012 2023 1,024 Thereafter 12,572 Total minimum lease payments 17,346 Less amounts representing interest (9,255) Present value of net minimum lease payments 8,091 Less current obligation (151) Total long-term lease obligation $ 7,940 The lease obligations are included in Long-term obligations (less current portion) on the Consolidated Balance Sheet. September 30, December 31, 2018 2018 Capital lease rental payments $ 4,207 $ 4,189 Finance lease rental payments 3,920 3,903 Environmental post-closure monitoring and maintenance activities 504 504 Deferred dividends 14 21 Less amounts due within one year (202) (208) Long-term obligations (less current portion) $ 8,443 $ 8,409 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts | 3 Months Ended |
Dec. 31, 2018 | |
Foreign Currency Forward Contracts | |
Foreign Currency Forward Contracts | Note 16. Foreign Currency Forward Contracts Beginning in the third quarter of fiscal 2018, the Company entered into foreign currency forward contracts. The purposes of these hedging contracts is to reduce income statement volatility resulting from foreign currency denominated transactions. The Company has not designated the contracts as hedges, therefore, changes in fair value are recognized in earnings. All of these contracts are designed to be settled within the same fiscal quarter they are entered into and, accordingly, as of December 31, 2018, there were no contracts that remain unsettled. As a result, there was no impact to the balance sheet from those contracts as of September 30, 2018 or December 31, 2018. Foreign exchange hedging gains and losses are recorded within Selling, General and Administrative Expenses on the Consolidated Statements of Operations along with foreign currency transactional gains and losses as follows. Three Months Ended December 31, 2017 2018 Foreign Currency Transactional Gain (Loss) $ — $ 340 Foreign Exchange Forward Contract Gain (Loss) $ — $ (497) Net gain (loss) included in Selling, General and Administrative Expense $ — $ (157) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2018 | |
Basis of Presentation | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Haynes International, Inc. and directly or indirectly wholly-owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances are eliminated. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Revenues from contracts with customers | |
Schedule of disaggregation of revenue | Three Months Ended December 31, 2017 2018 Net revenues (dollars in thousands) Aerospace $ 46,839 $ 54,607 Chemical processing 13,356 18,920 Industrial gas turbine 13,421 14,083 Other markets 9,238 14,285 Total product revenue 82,854 101,895 Other revenue 6,839 5,174 Net revenues $ 89,693 $ 107,069 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Inventories | |
Summary of major classes of inventories | September 30, December 31, 2018 2018 Raw Materials $ 17,897 $ 20,287 Work-in-process 147,921 150,722 Finished Goods 105,640 108,423 Other 1,587 1,609 $ 273,045 $ 281,041 |
Pension and Post-retirement B_2
Pension and Post-retirement Benefits (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 2017 2018 2017 2018 Service cost $ 1,384 $ 1,310 $ 84 $ 79 Interest cost 2,606 2,566 1,078 1,088 Expected return (3,634) (3,572) — — Amortizations 1,289 402 749 372 Net periodic benefit cost $ 1,645 $ 706 $ 1,911 $ 1,539 |
Legal, Environmental and Othe_2
Legal, Environmental and Other Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Legal, Environmental and Other Contingencies | |
Schedule of expected maturities of post-closure monitoring and maintenance activities (discounted) | 2020 $ 52 2021 59 2022 49 2023 48 2024 and thereafter 241 $ 449 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Goodwill and Other Intangible Assets, Net | |
Summary of intangible assets | Gross Accumulated Carrying September 30, 2018 Amount Amortization Amount Patents $ 4,030 $ (3,977) $ 53 Trademarks 3,800 — 3,800 Customer relationships 2,100 (574) 1,526 Other 291 (131) 160 $ 10,221 $ (4,682) $ 5,539 Gross Accumulated Carrying December 31, 2018 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (611) 1,489 Other 291 (146) 145 $ 6,191 $ (757) $ 5,434 |
Schedule of estimated future aggregate amortization expense | Estimated future Aggregate Amortization Expense: Year Ended September 30, 2019 $ 151 2020 198 2021 179 2022 133 2023 129 Thereafter 844 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Net Income (Loss) Per Share | |
Schedule of basic and diluted net earnings (losses) per share | Three Months Ended December 31, (in thousands, except share and per share data) 2017 2018 Numerator: Basic and Diluted Net income (loss) $ (22,526) $ (1,603) Dividends paid and accrued (2,758) (2,759) Undistributed income (loss) (25,284) (4,362) Percentage allocated to common shares (a) 100.0 % 100.0 % Undistributed income (loss) allocated to common shares (25,284) (4,362) Dividends paid on common shares outstanding 2,737 2,737 Net income (loss) available to common shares (22,547) (1,625) Denominator: Basic and Diluted Weighted average common shares outstanding 12,410,896 12,430,785 Adjustment for dilutive potential common shares — — Weighted average shares outstanding - Diluted 12,410,896 12,430,785 Basic net income (loss) per share $ (1.82) $ (0.13) Diluted net income (loss) per share $ (1.82) $ (0.13) Number of stock option shares excluded as their effect would be anti-dilutive 366,776 227,565 Number of restricted stock shares excluded as their effect would be anti-dilutive 97,835 68,700 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive 16,550 29,050 Number of performance share awards excluded as their effect would be anti-dilutive 43,800 43,101 (a ) Percentage allocated to common shares - Weighted average Common shares outstanding 12,410,896 12,430,785 Unvested participating shares — — 12,410,896 12,430,785 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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, 2018 81,993 $ 37.28 Granted 26,850 $ 33.98 Forfeited / Canceled (16,694) $ 37.75 Vested (23,449) $ 38.26 Unvested at December 31, 2018 68,700 $ 35.55 Expected to vest 68,700 $ 35.55 |
Summary of activity under the deferred restricted stock plan | Weighted Average Fair Number of Value At Shares Grant Date Deferred at September 30, 2018 16,550 $ 31.76 Granted 12,500 $ Deferred at December 31, 2018 29,050 $ Vested and Deferred at December 31, 2018 16,550 $ 31.76 |
Summary of activity under the 2016 Incentive Compensation Plan with respect to performance shares | Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2018 30,344 $ Granted 23,344 $ Forfeited / Canceled — — Unvested at December 31, 2018 53,688 $ |
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 21, 2018 $ % % 41 % 5 years September 17, 2018 $ % % 40 % 5 years June 1, 2018 $ % % 41 % 5 years November 21, 2017 $ 9.74 2.77 % 2.06 % 42 % 5 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, 2018 410,675 $ 42.72 Granted 74,760 $ 33.98 Exercised (12,084) $ 17.82 Canceled (114,433) $ 46.00 Outstanding at December 31, 2018 358,918 $ — $ 40.69 yrs. Vested or expected to vest 329,228 $ — $ 40.54 yrs. Exercisable at December 31, 2018 227,565 $ — $ 43.91 yrs. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Schedule of accumulated other comprehensive income (loss) | Three Months Ended December 31, 2017 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2017 $ (43,012) $ (21,691) $ (7,991) $ (72,694) Other comprehensive income (loss) before reclassifications — — 517 517 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) 93 — — 93 Actuarial losses (a) 1,223 750 — 1,973 Tax benefit (484) (276) — (760) Net current-period other comprehensive income (loss) 832 474 517 1,823 Accumulated other comprehensive income (loss) as of December 31, 2017 $ (42,180) $ (21,217) $ (7,474) $ (70,871) Three Months Ended December 31, 2018 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2018 $ (21,473) $ (11,201) $ (9,891) $ (42,565) Other comprehensive income (loss) before reclassifications — — (1,171) (1,171) Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (a) 51 — — 51 Actuarial losses (a) 364 372 — 736 Tax benefit (108) (99) — (207) Net current-period other comprehensive income (loss) 307 273 (1,171) (591) Accumulated other comprehensive loss as of December 31, 2018 $ (21,166) $ (10,928) $ (11,062) $ (43,156) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Long-term Obligations (Tables)
Long-term Obligations (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Long-term Obligations | |
Schedule of future minimum lease rental payments applicable to the capital lease | 2019 $ 743 2020 995 2021 1,000 2022 1,012 2023 1,024 Thereafter 12,572 Total minimum lease payments 17,346 Less amounts representing interest (9,255) Present value of net minimum lease payments 8,091 Less current obligation (151) Total long-term lease obligation $ 7,940 |
Schedule of long-term obligations | September 30, December 31, 2018 2018 Capital lease rental payments $ 4,207 $ 4,189 Finance lease rental payments 3,920 3,903 Environmental post-closure monitoring and maintenance activities 504 504 Deferred dividends 14 21 Less amounts due within one year (202) (208) Long-term obligations (less current portion) $ 8,443 $ 8,409 |
Foreign Currency Forward Cont_2
Foreign Currency Forward Contracts (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Foreign Currency Forward Contracts | |
Schedule of foreign exchange hedging gains and losses | Three Months Ended December 31, 2017 2018 Foreign Currency Transactional Gain (Loss) $ — $ 340 Foreign Exchange Forward Contract Gain (Loss) $ — $ (497) Net gain (loss) included in Selling, General and Administrative Expense $ — $ (157) |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Recently Issued Accounting Pronouncements | ||
Cost of goods sold | $ 95,734 | $ 80,618 |
Nonoperating Retirement Benefit Expense | $ 856 | 2,088 |
Reclassification upon adoption | ASU 2017-07 | ||
Recently Issued Accounting Pronouncements | ||
Cost of goods sold | (2,000) | |
Nonoperating Retirement Benefit Expense | $ 2,000 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Other Information (Details) $ in Thousands, lb in Millions | Nov. 17, 2006USD ($) | Dec. 31, 2018USD ($)lb | Sep. 30, 2018USD ($) |
Revenues from Contracts with Customers | |||
Accounts receivable, gross | $ 66,242 | $ 74,567 | |
Accounts receivable, allowance for doubtful accounts | 1,294 | 1,130 | |
Contract liabilities | $ 19,704 | $ 20,329 | |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation | true | ||
Conversion Services Agreement | |||
Revenues from Contracts with Customers | |||
Revenue recognition period | 20 years | 20 years | |
Advance payments received | $ 50,000 | ||
Conversion Services Agreement | Maximum | |||
Revenues from Contracts with Customers | |||
Annual volume of titanium metal to be converted (in pounds) | lb | 10 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contracts with Customers | ||
Net revenues | $ 107,069 | $ 89,693 |
Product | ||
Revenue from Contracts with Customers | ||
Net revenues | 101,895 | 82,854 |
Aerospace | ||
Revenue from Contracts with Customers | ||
Net revenues | 54,607 | 46,839 |
Chemical processing | ||
Revenue from Contracts with Customers | ||
Net revenues | 18,920 | 13,356 |
Industrial gas turbine | ||
Revenue from Contracts with Customers | ||
Net revenues | 14,083 | 13,421 |
Other markets | ||
Revenue from Contracts with Customers | ||
Net revenues | 14,285 | 9,238 |
Other | ||
Revenue from Contracts with Customers | ||
Net revenues | $ 5,174 | $ 6,839 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Inventories | ||
Raw Materials | $ 20,287 | $ 17,897 |
Work-in-process | 150,722 | 147,921 |
Finished Goods | 108,423 | 105,640 |
Other | 1,609 | 1,587 |
Total | $ 281,041 | $ 273,045 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 |
Income Taxes | ||||
Statutory federal tax rate (as a percent) | 21.00% | 21.00% | 24.50% | 24.50% |
Increase in tax expense | $ 17,868 | |||
Unfavorable impact of a change in federal tax law on income tax expense | $ 300 |
Pension and Post-retirement B_3
Pension and Post-retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Pension Plans | ||
Pension Plan and Retirement Benefits | ||
Service cost | $ 1,310 | $ 1,384 |
Interest cost | 2,566 | 2,606 |
Expected return | (3,572) | (3,634) |
Amortizations | 402 | 1,289 |
Net periodic benefit cost | 706 | 1,645 |
Postretirement Health Care Benefits | ||
Pension Plan and Retirement Benefits | ||
Service cost | 79 | 84 |
Interest cost | 1,088 | 1,078 |
Amortizations | 372 | 749 |
Net periodic benefit cost | 1,539 | $ 1,911 |
Contribution to plan | 911 | |
Expected future employer contribution | 4,089 | |
U.S. pension plan | Defined Benefit Pension Plans | ||
Pension Plan and Retirement Benefits | ||
Contribution to plan | 0 | |
Expected future employer contribution | 4,500 | |
U.K. pension plan | Defined Benefit Pension Plans | ||
Pension Plan and Retirement Benefits | ||
Contribution to plan | 191 | |
Expected future employer contribution | $ 591 |
Legal, Environmental and Othe_3
Legal, Environmental and Other Contingencies - Schedule of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Environmental post-closure monitoring and maintenance activities | $ 504 | $ 504 |
Long Term Obligations | ||
Maturities of long-term obligations (discounted) | ||
2,020 | 52 | |
2,021 | 59 | |
2,022 | 49 | |
2,023 | 48 | |
2024 and thereafter | 241 | |
Long-term obligations (less current portion) | $ 449 |
Deferred Revenue (Details)
Deferred Revenue (Details) - Conversion Services Agreement $ in Thousands, lb in Millions | Nov. 17, 2006USD ($) | Dec. 31, 2018USD ($)lb |
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 | 20 years |
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 Intangible_3
Goodwill and Other Intangible Assets, Net - Overview (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill and Other Intangible Assets, Net | |
Goodwill impairment loss | $ 0 |
Change to goodwill | $ 0 |
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 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Intangible Assets | |||
Amortization of customer relationships, patents, non-competes and other intangibles | $ 105 | $ 133 | |
Total intangible assets, Gross Amount | 6,191 | $ 10,221 | |
Finite-lived intangible assets, Accumulated Amortization | (757) | (4,682) | |
Carrying Amount | 5,434 | 5,539 | |
Patents | |||
Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | 4,030 | ||
Finite-lived intangible assets, Accumulated Amortization | (3,977) | ||
Finite-lived intangible assets, Carrying Amount | 53 | ||
Customer relationships | |||
Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | 2,100 | 2,100 | |
Finite-lived intangible assets, Accumulated Amortization | (611) | (574) | |
Finite-lived intangible assets, Carrying Amount | 1,489 | 1,526 | |
Other Intangible Assets | |||
Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | 291 | 291 | |
Finite-lived intangible assets, Accumulated Amortization | (146) | (131) | |
Finite-lived intangible assets, Carrying Amount | 145 | 160 | |
Trademarks | |||
Intangible Assets | |||
Indefinite-lived intangible assets | $ 3,800 | $ 3,800 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Amortization Expense (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Estimate of Aggregate Amortization Expense: | |
2,019 | $ 151 |
2,020 | 198 |
2,021 | 179 |
2,022 | 133 |
2,023 | 129 |
Thereafter | $ 844 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: Basic and Diluted | ||
Net income (loss) - Basic | $ (1,603) | $ (22,526) |
Net income (loss) - Diluted | (1,603) | (22,526) |
Dividends | (2,759) | (2,758) |
Undistributed income (loss) - Basic | (4,362) | (25,284) |
Undistributed income (loss) - Diluted | $ (4,362) | $ (25,284) |
Percentage allocated to common shares | 100.00% | 100.00% |
Undistributed income (loss) allocated to common shares - Basic | $ (4,362) | $ (25,284) |
Undistributed income (loss) allocated to common shares - Diluted | (4,362) | (25,284) |
Dividends paid on common shares outstanding | 2,737 | 2,737 |
Net income (loss) available to common shares - Basic | (1,625) | (22,547) |
Net income (loss) available to common shares - Diluted | $ (1,625) | $ (22,547) |
Denominator: Basic and Diluted | ||
Weighted average common shares outstanding - Basic | 12,430,785 | 12,410,896 |
Weighted average shares outstanding - Diluted | 12,430,785 | 12,410,896 |
Basic net income (loss) per share (in dollars per share) | $ (0.13) | $ (1.82) |
Diluted net income (loss) per share (in dollars per share) | $ (0.13) | $ (1.82) |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Anti-dilutive Securities (Details) - shares | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee and Directors Stock Options | ||
Antidilutive securities | ||
Number of shares excluded as their effect would be anti-dilutive | 227,565 | 366,776 |
Restricted Stock | ||
Antidilutive securities | ||
Number of shares excluded as their effect would be anti-dilutive | 68,700 | 97,835 |
Deferred Restricted Stock | ||
Antidilutive securities | ||
Number of shares excluded as their effect would be anti-dilutive | 29,050 | 16,550 |
Performance Shares | ||
Antidilutive securities | ||
Number of shares excluded as their effect would be anti-dilutive | 43,101 | 43,800 |
Net Income (Loss) Per Share - W
Net Income (Loss) Per Share - Weighted Average Common Shares (Details) - shares | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Percentage allocated to common shares - weighted average | ||
Common shares outstanding | 12,430,785 | 12,410,896 |
Total | 12,430,785 | 12,410,896 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Plan and Performance Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 21, 2017 | Nov. 22, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 01, 2016 | Feb. 23, 2009 |
Restricted Stock | 2009 Restricted Stock Plan | ||||||
Stock-Based Compensation | ||||||
Number of shares authorized under the plan | 400,000 | |||||
Restricted stock plan activity, number of shares | ||||||
Unvested at beginning of the period (in shares) | 81,993 | |||||
Granted (in shares) | 26,850 | |||||
Forfeited / Canceled (in shares) | (16,694) | |||||
Vested (in shares) | (23,449) | |||||
Unvested at end of the period (in shares) | 68,700 | |||||
Expected to vest (in shares) | 68,700 | |||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Unvested at beginning of the period (in dollars per share) | $ 37.28 | |||||
Granted (in dollars per share) | 33.98 | |||||
Forfeited / Canceled (in dollars per share) | 37.75 | |||||
Vested (in dollars per share) | 38.26 | |||||
Unvested at end of the period (in dollars per share) | 35.55 | |||||
Expected to vest (in dollars per share) | $ 35.55 | |||||
Deferred Restricted Stock plan activity, number of shares | ||||||
Vested (in shares) | 23,449 | |||||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Vested (in dollars per share) | $ 38.26 | |||||
Restricted stock plan activity, other disclosures | ||||||
Compensation expense | $ 53 | $ 315 | ||||
Remaining unrecognized compensation expense | $ 1,523 | |||||
Weighted average period for recognition | 10 months 17 days | |||||
Restricted Stock | 2009 Restricted Stock Plan | Employees | ||||||
Restricted stock plan activity, other disclosures | ||||||
Repurchase of stock from employees (in shares) | 9,226 | |||||
Average purchase price (in dollars per share) | $ 33.40 | |||||
Deferred Restricted Stock | 2016 Restricted Stock Plan | ||||||
Restricted stock plan activity, number of shares | ||||||
Vested (in shares) | (16,550) | |||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Vested (in dollars per share) | $ 31.76 | |||||
Deferred Restricted Stock plan activity, number of shares | ||||||
Outstanding at beginning of period (in shares) | 16,550 | |||||
Granted (in shares) | 12,500 | |||||
Outstanding at end of period (in shares) | 29,050 | |||||
Vested (in shares) | 16,550 | |||||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Outstanding at beginning of period (in dollars per share) | $ 31.76 | |||||
Granted (in dollars per share) | 33.98 | |||||
Outstanding at end of period (in dollars per share) | 32.72 | |||||
Vested (in dollars per share) | $ 31.76 | |||||
Restricted stock plan activity, other disclosures | ||||||
Compensation expense | $ 124 | 44 | ||||
Remaining unrecognized compensation expense | $ 389 | |||||
Weighted average period for recognition | 4 months 28 days | |||||
Restricted Stock, Restricted Stock Units and Performance Shares | ||||||
Stock-Based Compensation | ||||||
Number of shares authorized under the plan | 275,000 | |||||
Performance Shares | Certain Employees | ||||||
Stock-Based Compensation | ||||||
Award vesting period | 3 years | 3 years | ||||
Remaining unrecognized compensation expense | $ 1,541 | |||||
Restricted stock plan activity, number of shares | ||||||
Unvested at beginning of the period (in shares) | 30,344 | |||||
Granted (in shares) | 23,344 | |||||
Unvested at end of the period (in shares) | 53,688 | |||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Unvested at beginning of the period (in dollars per share) | $ 49.32 | |||||
Granted (in dollars per share) | 44.93 | |||||
Unvested at end of the period (in dollars per share) | $ 47.41 | |||||
Restricted stock plan activity, other disclosures | ||||||
Compensation expense | $ 121 | $ 128 | ||||
Weighted average period for recognition | 1 year 10 months 24 days | |||||
Time-based vesting | Restricted Stock | Employees | ||||||
Stock-Based Compensation | ||||||
Award vesting period | 3 years | |||||
Time-based vesting | Restricted Stock | Non-employee director | Maximum | ||||||
Stock-Based Compensation | ||||||
Award vesting period | 1 year |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Plans (Details) - Employee and Directors Stock Options - USD ($) $ / shares in Units, $ in Thousands | Nov. 21, 2018 | Sep. 17, 2018 | Jun. 01, 2018 | Nov. 21, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 01, 2016 |
Information relating to stock options | |||||||
Number of shares authorized | 1,925,000 | ||||||
Expiration period | 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) | $ 10.61 | $ 11.03 | $ 13.92 | $ 9.74 | |||
Dividend Yield (as a percent) | 2.59% | 2.55% | 2.07% | 2.77% | |||
Risk-Free Interest Rate (as a percent) | 2.88% | 2.89% | 2.68% | 2.06% | |||
Expected Volatility (as a percent) | 41.00% | 40.00% | 41.00% | 42.00% | |||
Expected Life | 5 years | 5 years | 5 years | 5 years | |||
Stock-based employee compensation expense | $ 152 | $ 118 | |||||
Remaining unrecognized compensation expense | $ 1,218 | ||||||
Weighted average period for recognition | 1 year 2 months 27 days | ||||||
Activity under stock option plans, number of shares | |||||||
Outstanding at beginning of the period (in shares) | 410,675 | ||||||
Granted (in shares) | 74,760 | ||||||
Exercised (in shares) | (12,084) | ||||||
Canceled (in shares) | (114,433) | ||||||
Outstanding at end of the period (in shares) | 358,918 | ||||||
Vested or expected to vest (in shares) | 329,228 | ||||||
Exercisable at end of period (in shares) | 227,565 | ||||||
Weighted Average Exercise Prices | |||||||
Outstanding at beginning of the period (in dollars per share) | $ 42.72 | ||||||
Granted (in dollars per share) | 33.98 | ||||||
Exercised (in dollars per share) | 17.82 | ||||||
Canceled (in dollars per share) | 46 | ||||||
Outstanding at end of period (in dollars per share) | 40.69 | ||||||
Vested or expected to vest (in dollars per share) | 40.54 | ||||||
Exercisable at end of the period (in dollars per share) | $ 43.91 | ||||||
Outstanding at end of the period, Weighted Average Remaining Contractual Life | 6 years 11 months 16 days | ||||||
Vested or expected to vest, Weighted Average Remaining Contractual Life | 4 years 10 months 13 days | ||||||
Exercisable at end of the period, Weighted Average Remaining Contractual Life | 5 years 5 months 27 days | ||||||
Stock Option Plan Adopted in January 2007 | |||||||
Information relating to stock options | |||||||
Number of shares authorized | 500,000 | ||||||
Stock Option Plan Adopted In March 2016 | |||||||
Information relating to stock options | |||||||
Number of shares authorized | 425,000 |
Dividend (Details)
Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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) | $ 2,752 | $ 2,754 | |
Dividend deferred in accordance with Deferred Compensation Plan | $ 6 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated other comprehensive income (loss) | ||
Balance | $ 333,220 | |
Other comprehensive income (loss) | (591) | $ 1,823 |
Balance | 328,624 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated other comprehensive income (loss) | ||
Balance | (42,565) | (72,694) |
Other comprehensive income (loss) before reclassifications | (1,171) | 517 |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (207) | (760) |
Other comprehensive income (loss) | (591) | 1,823 |
Balance | (43,156) | (70,871) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | ||
Accumulated other comprehensive income (loss) | ||
Balance | (21,473) | (43,012) |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (108) | (484) |
Other comprehensive income (loss) | 307 | 832 |
Balance | (21,166) | (42,180) |
Accumulated Defined Benefit Plans Adjustment | Postretirement Health Care Benefits | ||
Accumulated other comprehensive income (loss) | ||
Balance | (11,201) | (21,691) |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (99) | (276) |
Other comprehensive income (loss) | 273 | 474 |
Balance | (10,928) | (21,217) |
Amortization of Pension and Postretirement Plan items | ||
Accumulated other comprehensive income (loss) | ||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 51 | 93 |
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 | 51 | 93 |
Actuarial losses | ||
Accumulated other comprehensive income (loss) | ||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 736 | 1,973 |
Actuarial losses | Defined Benefit Pension Plans | ||
Accumulated other comprehensive income (loss) | ||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 364 | 1,223 |
Actuarial losses | Postretirement Health Care Benefits | ||
Accumulated other comprehensive income (loss) | ||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 372 | 750 |
Accumulated Translation Adjustment | ||
Accumulated other comprehensive income (loss) | ||
Balance | (9,891) | (7,991) |
Other comprehensive income (loss) before reclassifications | (1,171) | 517 |
Other comprehensive income (loss) | (1,171) | 517 |
Balance | $ (11,062) | $ (7,474) |
Long-term Obligations - Buildou
Long-term Obligations - Buildout of facility (Details) | Jan. 01, 2015 | Dec. 31, 2018 |
Long-term Obligations | ||
Lease term | 20 years | 20 years |
Long-term Obligations - Minimum
Long-term Obligations - Minimum Lease Rental Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Long-term Obligations | ||
Construction costs incurred on facility buildout | $ 4,100 | |
Future minimum lease rental payments | ||
2,019 | 743 | |
2,020 | 995 | |
2,021 | 1,000 | |
2,022 | 1,012 | |
2,023 | 1,024 | |
Thereafter | 12,572 | |
Total minimum lease payments | 17,346 | |
Less amounts representing interest | (9,255) | |
Present value of net minimum lease payments | 8,091 | |
Less current obligation | (151) | |
Total long term lease obligation | 7,940 | |
Long-term obligations (less current portion) | ||
Capital lease rental payments | 4,189 | $ 4,207 |
Finance lease rental payments | 3,903 | 3,920 |
Environmental post-closure monitoring and maintenance activities | 504 | 504 |
Deferred dividends | 21 | 14 |
Less amounts due within one year | (208) | (202) |
Long-term obligations (less current portion) | $ 8,409 | $ 8,443 |
Foreign Currency Forward Cont_3
Foreign Currency Forward Contracts (Details) - Selling, General and Administrative Expenses - Not Designated as Hedging Instrument $ in Thousands | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Foreign currency balance sheet hedging | |
Foreign currency net gain (loss) | $ (157) |
Foreign Currency Transaction | |
Foreign currency balance sheet hedging | |
Foreign currency net gain (loss) | 340 |
Foreign Exchange Forward | |
Foreign currency balance sheet hedging | |
Foreign currency net gain (loss) | $ (497) |