Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2021 | Jan. 27, 2022 | |
Cover Abstract | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-33288 | |
Entity Registrant Name | HAYNES INTERNATIONAL, INC. | |
Entity Central Index Key | 0000858655 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-1185400 | |
Entity Address, Address Line One | 1020 West Park Avenue | |
Entity Address, City or Town | Kokomo | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46904-9013 | |
City Area Code | 765 | |
Local Phone Number | 456-6000 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | HAYN | |
Security Exchange Name | NASDAQ | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,454,688 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 14,262 | $ 47,726 |
Accounts receivable, less allowance for doubtful accounts of $553 and $605 at September 30, 2021 and December 31, 2021, respectively | 56,861 | 57,964 |
Inventories | 271,423 | 248,495 |
Income taxes receivable | 1,645 | 1,292 |
Other current assets | 4,866 | 6,129 |
Total current assets | 349,057 | 361,606 |
Property, plant and equipment, net | 146,154 | 147,248 |
Deferred income taxes | 14,661 | 16,397 |
Other assets | 10,480 | 10,829 |
Goodwill | 4,789 | 4,789 |
Other intangible assets, net | 5,468 | 5,586 |
Total assets | 530,609 | 546,455 |
Current liabilities: | ||
Accounts payable | 39,809 | 47,680 |
Accrued expenses | 14,744 | 20,100 |
Income taxes payable | 417 | 379 |
Accrued pension and postretirement benefits | 3,554 | 3,554 |
Revolving credit facilities | 3,000 | |
Deferred revenue-current portion | 2,500 | 2,500 |
Total current liabilities | 64,024 | 74,213 |
Long-term obligations (less current portion) | 8,229 | 8,301 |
Deferred revenue (less current portion) | 9,704 | 10,329 |
Deferred income taxes | 3,448 | 3,459 |
Operating lease liabilities | 486 | 664 |
Accrued pension benefits (less current portion) | 24,675 | 26,663 |
Accrued postretirement benefits (less current portion) | 79,834 | 79,505 |
Total liabilities | 190,400 | 203,134 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value (40,000,000 shares authorized, 12,757,778 and 12,814,043 shares issued and 12,562,140 and 12,455,839 shares outstanding at September 30, 2021 and December 31, 2021, respectively) | 13 | 13 |
Preferred stock, $0.001 par value (20,000,000 shares authorized, 0 shares issued and outstanding) | ||
Additional paid-in capital | 263,126 | 262,057 |
Accumulated earnings | 102,865 | 101,015 |
Treasury stock, 195,638 shares at September 30, 2021 and 358,204 shares at December 31, 2021 | (14,023) | (7,423) |
Accumulated other comprehensive loss | (11,772) | (12,341) |
Total stockholders' equity | 340,209 | 343,321 |
Total liabilities and stockholders' equity | $ 530,609 | $ 546,455 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 605 | $ 553 |
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) | 12,814,043 | 12,757,778 |
Common stock, shares outstanding (in shares) | 12,455,839 | 12,562,140 |
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) | 358,204 | 195,638 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net revenues | $ 99,430 | $ 72,177 |
Cost of sales | 81,653 | 71,190 |
Gross profit | 17,777 | 987 |
Selling, general and administrative expense | 11,362 | 9,733 |
Research and technical expense | 905 | 787 |
Operating income (loss) | 5,510 | (9,533) |
Nonoperating retirement benefit expense (income) | (1,088) | 359 |
Interest income | (8) | (4) |
Interest expense | 300 | 304 |
Income (loss) before income taxes | 6,306 | (10,192) |
Provision for (benefit from) income taxes | 1,647 | (2,165) |
Net income (loss) | $ 4,659 | $ (8,027) |
Net income (loss) per share: | ||
Basic (dollars per share) | $ 0.37 | $ (0.65) |
Diluted (dollars per share) | $ 0.37 | $ (0.65) |
Weighted Average Common Shares Outstanding | ||
Basic (in shares) | 12,368,821 | 12,492,985 |
Diluted (in shares) | 12,587,139 | 12,492,985 |
Dividends declared per common share (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, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income (loss) | $ 4,659 | $ (8,027) |
Other comprehensive income (loss), net of tax: | ||
Pension and postretirement | 1,528 | |
Foreign currency translation adjustment | 569 | 4,850 |
Other comprehensive income (loss) | 569 | 6,378 |
Comprehensive income (loss) | $ 5,228 | $ (1,649) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Sep. 30, 2020 | $ 13 | $ 257,583 | $ 120,943 | $ (2,437) | $ (74,601) | $ 301,501 |
Balance (in shares) at Sep. 30, 2020 | 12,622,371 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (8,027) | (8,027) | ||||
Dividends paid and accrued ($0.22 and $0.22 per share for the three months ended December 31, 2020 and 2021, respectively) | (2,782) | (2,782) | ||||
Other comprehensive income (loss) | 6,378 | 6,378 | ||||
Issue restricted stock (less forfeitures) (in shares) | 55,718 | |||||
Vesting of restricted stock (in shares) | 14,497 | |||||
Purchase of treasury stock | (238) | (238) | ||||
Purchase of treasury stock (in shares) | (10,439) | |||||
Stock compensation | 1,059 | 1,059 | ||||
Balance at Dec. 31, 2020 | $ 13 | 258,642 | 110,134 | (2,675) | (68,223) | 297,891 |
Balance (in shares) at Dec. 31, 2020 | 12,682,147 | |||||
Balance at Sep. 30, 2021 | $ 13 | 262,057 | 101,015 | (7,423) | (12,341) | 343,321 |
Balance (in shares) at Sep. 30, 2021 | 12,562,140 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 4,659 | 4,659 | ||||
Dividends paid and accrued ($0.22 and $0.22 per share for the three months ended December 31, 2020 and 2021, respectively) | (2,809) | (2,809) | ||||
Other comprehensive income (loss) | 569 | 569 | ||||
Exercise of stock options | 115 | 115 | ||||
Exercise of stock options (in shares) | 3,650 | |||||
Issue restricted stock (less forfeitures) (in shares) | 31,704 | |||||
Vesting of restricted stock (in shares) | 20,911 | |||||
Purchase of treasury stock | (6,600) | (6,600) | ||||
Purchase of treasury stock (in shares) | (162,566) | |||||
Stock compensation | 954 | 954 | ||||
Balance at Dec. 31, 2021 | $ 13 | $ 263,126 | $ 102,865 | $ (14,023) | $ (11,772) | $ 340,209 |
Balance (in shares) at Dec. 31, 2021 | 12,455,839 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||
Dividend paid (in dollars per share) | $ 0.22 | $ 0.22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 4,659 | $ (8,027) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 4,636 | 4,807 |
Amortization | 118 | 116 |
Pension and post-retirement expense - U.S. and U.K. | 550 | 2,040 |
Change in long-term obligations | (9) | 7 |
Stock compensation expense | 954 | 1,059 |
Deferred revenue | (625) | (625) |
Deferred income taxes | 1,678 | (1,983) |
Change in assets and liabilities: | ||
Accounts receivable | 1,176 | 11,684 |
Inventories | (22,655) | 13,289 |
Other assets | 1,429 | (270) |
Accounts payable and accrued expenses | (13,220) | (1,246) |
Income taxes | (323) | (178) |
Accrued pension and postretirement benefits | (2,202) | (2,220) |
Net cash provided by (used in) operating activities | (23,834) | 18,453 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (3,335) | (1,127) |
Net cash used in investing activities | (3,335) | (1,127) |
Cash flows from financing activities: | ||
Revolving credit facility borrowings | 8,000 | |
Revolving credit facility repayments | (5,000) | |
Dividends paid | (2,811) | (2,795) |
Proceeds from exercise of stock options | 115 | |
Payment for purchase of treasury stock | (6,600) | (238) |
Payment for debt issuance cost | (980) | |
Payments on long-term obligations | (58) | (67) |
Net cash used in financing activities | (6,354) | (4,080) |
Effect of exchange rates on cash | 59 | 779 |
Increase (decrease) in cash and cash equivalents: | (33,464) | 14,025 |
Cash and cash equivalents: | ||
Beginning of period | 47,726 | 47,238 |
End of period | 14,262 | 61,263 |
Supplemental disclosures of cash flow information: | ||
Interest (net of capitalized interest) | 199 | 223 |
Income taxes paid (refunded), net | 254 | (13) |
Capital expenditures incurred but not yet paid | 775 | 487 |
Dividends declared but not yet paid | $ 207 | $ 126 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 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, 2021 are not necessarily indicative of the results to be expected for the full fiscal year ending September 30, 2022 or any other 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. COVID-19 Pandemic COVID-19 related disruptions |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Dec. 31, 2021 | |
Recently Issued Accounting Standards | |
Recently Issued Accounting Standards | Note 2. Recently Issued Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
Dec. 31, 2021 | |
Revenues from Contracts with Customers | |
Revenues from Contracts with Customers | Note 3. Revenues from Contracts with Customers Contract Balances As of September 30, 2021 and December 31, 2021, accounts receivable with customers were $58,517 and $57,466 , respectively. Allowance for doubtful accounts as of September 30, 2021 and December 31, 2021 were , 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, 2021 and December 31, 2021, no contract liabilities have been recorded except for $12,829 and $12,204, respectively, for the Titanium Metals Corporation agreement, as described in Note 8 to the Condensed Consolidated Financial Statements and $1,060 and $950 , respectively, for accrued product returns. 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 months ended December 31, 2020 and 2021. Three Months Ended December 31, 2020 2021 Net revenues Aerospace $ 24,555 $ 48,455 Chemical processing 15,256 17,450 Industrial gas turbine 13,967 14,598 Other markets 12,779 14,487 Total product revenue 66,557 94,990 Other revenue 5,620 4,440 Net revenues $ 72,177 $ 99,430 |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | Note 4. Inventories The following is a summary of the major classes of inventories: September 30, December 31, 2021 2021 Raw Materials $ 22,711 $ 22,858 Work-in-process 138,609 165,557 Finished Goods 85,797 81,554 Other 1,378 1,454 $ 248,495 $ 271,423 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | Note 5. Income Taxes Income tax expense (benefit) for the three months ended December 31, 2020 and 2021 differed from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes, |
Pension and Post-retirement Ben
Pension and Post-retirement Benefits | 3 Months Ended |
Dec. 31, 2021 | |
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, 2020 and 2021 were as follows: Three Months Ended December 31, Pension Benefits Other Benefits 2020 2021 2020 2021 Service cost $ 1,407 $ 1,182 $ 274 $ 456 Interest cost 1,808 1,923 573 559 Expected return (3,978) (3,561) — — Amortizations 1,956 51 — (60) Net periodic benefit cost $ 1,193 $ (405) $ 847 $ 955 The Company contributed $1,500 to Company-sponsored U.S. pension plans and $685 to its other post-retirement benefit plans for the three months ended December 31, 2021. The Company expects to make contributions of $4,500 to its U.S. pension plan and is considering an additional amount up to $15,000 as a part of the Company’s capital allocation strategy and $2,774 to its other post-retirement benefit plan for the remainder of fiscal 2022. |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 3 Months Ended |
Dec. 31, 2021 | |
Legal, Environmental and Other Contingencies | |
Legal, Environmental and Other Contingencies | Note 7. Legal, Environmental and Other Contingencies 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, asbestos, 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. 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, 2021 and December 31, 2021, the Company had accrued $566 for post-closure monitoring and maintenance activities, of which $496 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, 2021. Expected maturities of post-closure monitoring and maintenance activities (discounted) Year Ending September 30, 2023 $ 68 2024 89 2025 67 2026 68 2027 and thereafter 204 $ 496 |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Dec. 31, 2021 | |
Deferred Revenue | |
Deferred Revenue | Note 8. Deferred Revenue On November 17, 2006, the Company entered into a twenty-year agreement to provide conversion services to Titanium Metals Corporation (TIMET) for up to ten million pounds of titanium metal annually. TIMET paid the Company a $50,000 up-front fee and will also pay the Company for its processing services during the term of the agreement ( 20 years ) at prices established by the terms of the agreement. TIMET may exercise an option to have up to an additional ten million 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, 2021 | |
Goodwill and Other Intangible Assets, Net | |
Goodwill and Other Intangible Assets, Net | Note 9. Goodwill and Other Intangible Assets, Net The Company has goodwill, trademarks, customer relationships and other intangibles. Customer relationships have a definite life and are amortized over a period of fifteen years . 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 undiscounted 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), and 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, 2021. During the first three months of fiscal 2022, there were no changes in the carrying amount of goodwill. Amortization of customer relationships and other intangibles was $116 and $118 for the three-month periods ended December 31, 2020 and 2021, respectively. The following represents a summary of intangible assets at September 30, 2021 and December 31, 2021. Gross Accumulated Carrying September 30, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (995) 1,105 Other 997 (316) 681 $ 6,897 $ (1,311) $ 5,586 Gross Accumulated Carrying December 31, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,029) 1,071 Other 997 (400) 597 $ 6,897 $ (1,429) $ 5,468 Estimated future Aggregate Amortization Expense: Year Ending September 30, 2022 $ 347 2023 462 2024 142 2025 123 2026 120 Thereafter 474 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Dec. 31, 2021 | |
Net Income (Loss) Per Share | |
Net Income (Loss) Per Share | Note 10. 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. 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 (loss) per share for the periods indicated: Three Months Ended December 31, (in thousands, except share and per share data) 2020 2021 Numerator: Basic and Diluted Net income (loss) $ (8,027) $ 4,659 Dividends paid and accrued (2,782) (2,809) Undistributed income (loss) (10,809) 1,850 Percentage allocated to common shares (a) 100.0 % 98.9 % Undistributed income (loss) allocated to common shares (10,809) 1,830 Dividends paid on common shares outstanding 2,744 2,779 Net income (loss) available to common shares (8,065) 4,609 Denominator: Basic and Diluted Weighted average common shares outstanding 12,492,985 12,368,821 Adjustment for dilutive potential common shares — 218,318 Weighted average shares outstanding - Diluted 12,492,985 12,587,139 Basic net income (loss) per share $ (0.65) $ 0.37 Diluted net income (loss) per share $ (0.65) $ 0.37 Number of stock option shares excluded as their effect would be anti-dilutive 358,346 236,861 Number of restricted stock shares excluded as their effect would be anti-dilutive 173,769 61,264 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive 35,616 3,780 Number of performance share awards excluded as their effect would be anti-dilutive 64,467 55,008 (a ) Common shares outstanding 12,492,985 12,368,821 Unvested participating shares — 135,486 12,492,985 12,504,307 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 11. Stock-Based Compensation Restricted Stock The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to restricted stock for the three months ended December 31, 2021: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2021 142,269 $ 26.78 Granted 31,704 $ 44.07 Vested (38,487) $ 30.43 Unvested at December 31, 2021 135,486 $ 29.78 Expected to vest 135,486 $ 29.78 Compensation expense related to restricted stock for the three months ended December 31, 2020 and 2021 was $495 and $392 , respectively. The remaining unrecognized compensation expense related to restricted stock at December 31, 2021 was $2,489 , to be recognized over a weighted average period of 1.32 years. During the first three months of fiscal 2022, the Company repurchased 11,214 shares of stock from employees at an average purchase price of $43.70 to satisfy required withholding taxes upon vesting of restricted stock-based compensation. Deferred Restricted Stock The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to deferred restricted stock for the three months ended December 31, 2021. Weighted Average Fair Number of Value At Shares Grant Date Unvested and deferred at September 30, 2021 7,398 $ 22.64 Granted 3,801 $ 44.07 Vested and deferred (7,398) $ 22.64 Unvested and deferred at December 31, 2021 3,801 $ 44.07 Vested and deferred at December 31, 2021 28,833 $ 30.07 Compensation expense related to deferred restricted stock for the three months ended December 31, 2020 and 2021 was $63 and $42 , respectively. The remaining unrecognized compensation expense related to deferred restricted stock at December 31, 2021 was $154 , to be recognized over a weighted average period of 0.92 years. Performance Shares The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to performance shares for the three months ended December 31, 2021. Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2021 87,193 $ 37.24 Granted 21,520 $ 61.04 Vested (24,282) $ 44.93 Unvested at December 31, 2021 84,431 $ 41.09 During the first three months of fiscal 2022, 24,282 performance share awards vested which resulted in the issuance of 20,911 shares of stock to certain employees. Compensation expense related to the performance shares for the three months ended December 30, 2020 and 2021 was $222 and $229 , respectively. The remaining unrecognized compensation expense related to performance shares at December 31, 2021 was $2,234 , to be recognized over a weighted average period of 1.82 years. Stock Options 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 year 2022: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 23, 2021 $ 15.02 2.00 % 1.22 % 45 % 5 years The stock-based employee compensation expense for stock options for the three months ended December 31, 2020 and 2021 was $279 and $292 , respectively. The remaining unrecognized compensation expense at December 31, 2021 was $1,471 , to be recognized over a weighted average vesting period of 1.31 years. The following table summarizes the activity under the stock option plans and the 2016 and 2020 Incentive Compensation Plans with respect to stock options for the three months ended December 31, 2021 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, 2021 702,576 $ 34.68 Granted 42,080 $ 44.07 Exercised (3,650) 31.76 Canceled (10,000) $ 55.88 Outstanding at December 31, 2021 731,006 $ 4,879 $ 34.95 6.85 yrs. Vested or expected to vest 664,230 $ 4,430 $ 34.94 4.48 yrs. Exercisable at December 31, 2021 505,183 $ 2,665 $ 36.61 6.06 yrs. |
Dividend
Dividend | 3 Months Ended |
Dec. 31, 2021 | |
Dividend | |
Dividend | Note 12. Dividend In the first quarter of fiscal 2022, the Company declared and paid quarterly cash dividends of $0.22 per outstanding share of the Company’s common stock. The first quarter dividend was paid on December 15, 2021 to stockholders of record at the close of business on December 1, 2021. The dividend cash pay-outs was $2,811 for the first quarter of fiscal 2022. On January 27, 2022, 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, 2022 to stockholders of record at the close of business on March 1, 2022. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2021 | |
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. 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. The valuation model used depends on the specific asset or liability being valued. Fixed income securities are held as individual bonds and are valued as either level 1 assets as they are quoted in active markets or level 2 assets. U.S and International equities, and Other Investments held in the Company’s pension plan are held as individual bonds or 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, 2021 | |
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 or weakening 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, 2020 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2020 $ (65,393) $ 613 $ (9,821) $ (74,601) Other comprehensive income (loss) before reclassifications — — 4,850 4,850 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 51 — — 51 Actuarial losses (1) 1,940 — — 1,940 Tax provision (benefit) (463) — — (463) Net current-period other comprehensive income (loss) 1,528 — 4,850 6,378 Accumulated other comprehensive income (loss) as of December 31, 2020 $ (63,865) $ 613 $ (4,971) $ (68,223) Three Months Ended December 31, 2021 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2021 $ (14,791) $ 9,017 $ (6,567) $ (12,341) Other comprehensive income (loss) before reclassifications — — 569 569 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 51 — — 51 Actuarial losses (1) 8 (60) — (52) Tax provision (benefit) (13) 14 — 1 Net current-period other comprehensive income (loss) 46 (46) 569 569 Accumulated other comprehensive income (loss) as of December 31, 2021 $ (14,745) $ 8,971 $ (5,998) $ (11,772) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension c ost. |
Long-term Obligations
Long-term Obligations | 3 Months Ended |
Dec. 31, 2021 | |
Long-term Obligations | |
Long-term Obligations | Note 15. Long-term Obligations The following table sets forth the components of the Company’s Long-term obligations. September 30, December 31, 2021 2021 Finance lease obligations $ 7,613 $ 7,559 Environmental post-closure monitoring and maintenance activities 566 566 Long-term disability 231 225 Deferred dividends 210 207 Less amounts due within one year (319) (328) Long-term obligations (less current portion) $ 8,301 $ 8,229 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts | 3 Months Ended |
Dec. 31, 2021 | |
Foreign Currency Forward Contracts | |
Foreign Currency Forward Contracts | Note 16. Foreign Currency Forward Contracts The Company enters into foreign currency forward contracts 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, 2021, 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, 2021 or December 31, 2021. Foreign exchange contract 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, 2020 2021 Foreign currency transactional gain (loss) $ 453 $ (220) Foreign exchange forward contract gain (loss) $ (281) $ (340) Net gain (loss) included in selling, general and administrative expense $ 172 $ (560) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 | |
Revenues from Contracts with Customers | |
Schedule of disaggregation of revenue | Three Months Ended December 31, 2020 2021 Net revenues Aerospace $ 24,555 $ 48,455 Chemical processing 15,256 17,450 Industrial gas turbine 13,967 14,598 Other markets 12,779 14,487 Total product revenue 66,557 94,990 Other revenue 5,620 4,440 Net revenues $ 72,177 $ 99,430 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Summary of major classes of inventories | September 30, December 31, 2021 2021 Raw Materials $ 22,711 $ 22,858 Work-in-process 138,609 165,557 Finished Goods 85,797 81,554 Other 1,378 1,454 $ 248,495 $ 271,423 |
Pension Plan and Retirement Ben
Pension Plan and Retirement Benefits (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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 2020 2021 2020 2021 Service cost $ 1,407 $ 1,182 $ 274 $ 456 Interest cost 1,808 1,923 573 559 Expected return (3,978) (3,561) — — Amortizations 1,956 51 — (60) Net periodic benefit cost $ 1,193 $ (405) $ 847 $ 955 |
Legal, Environmental and Othe_2
Legal, Environmental and Other Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Legal, Environmental and Other Contingencies | |
Schedule of expected maturities of post-closure monitoring and maintenance activities (discounted) | Expected maturities of post-closure monitoring and maintenance activities (discounted) Year Ending September 30, 2023 $ 68 2024 89 2025 67 2026 68 2027 and thereafter 204 $ 496 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Goodwill and Other Intangible Assets, Net | |
Summary of finite-lived intangible assets | Gross Accumulated Carrying September 30, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (995) 1,105 Other 997 (316) 681 $ 6,897 $ (1,311) $ 5,586 Gross Accumulated Carrying December 31, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,029) 1,071 Other 997 (400) 597 $ 6,897 $ (1,429) $ 5,468 |
Schedule of indefinite-lived intangible assets | Gross Accumulated Carrying September 30, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (995) 1,105 Other 997 (316) 681 $ 6,897 $ (1,311) $ 5,586 Gross Accumulated Carrying December 31, 2021 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,029) 1,071 Other 997 (400) 597 $ 6,897 $ (1,429) $ 5,468 |
Schedule of estimated future aggregate amortization expense | Estimated future Aggregate Amortization Expense: Year Ending September 30, 2022 $ 347 2023 462 2024 142 2025 123 2026 120 Thereafter 474 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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) 2020 2021 Numerator: Basic and Diluted Net income (loss) $ (8,027) $ 4,659 Dividends paid and accrued (2,782) (2,809) Undistributed income (loss) (10,809) 1,850 Percentage allocated to common shares (a) 100.0 % 98.9 % Undistributed income (loss) allocated to common shares (10,809) 1,830 Dividends paid on common shares outstanding 2,744 2,779 Net income (loss) available to common shares (8,065) 4,609 Denominator: Basic and Diluted Weighted average common shares outstanding 12,492,985 12,368,821 Adjustment for dilutive potential common shares — 218,318 Weighted average shares outstanding - Diluted 12,492,985 12,587,139 Basic net income (loss) per share $ (0.65) $ 0.37 Diluted net income (loss) per share $ (0.65) $ 0.37 Number of stock option shares excluded as their effect would be anti-dilutive 358,346 236,861 Number of restricted stock shares excluded as their effect would be anti-dilutive 173,769 61,264 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive 35,616 3,780 Number of performance share awards excluded as their effect would be anti-dilutive 64,467 55,008 (a ) Common shares outstanding 12,492,985 12,368,821 Unvested participating shares — 135,486 12,492,985 12,504,307 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 142,269 $ 26.78 Granted 31,704 $ 44.07 Vested (38,487) $ 30.43 Unvested at December 31, 2021 135,486 $ 29.78 Expected to vest 135,486 $ 29.78 |
Summary of activity under the deferred restricted stock plan | Weighted Average Fair Number of Value At Shares Grant Date Unvested and deferred at September 30, 2021 7,398 $ 22.64 Granted 3,801 $ 44.07 Vested and deferred (7,398) $ 22.64 Unvested and deferred at December 31, 2021 3,801 $ 44.07 Vested and deferred at December 31, 2021 28,833 $ 30.07 |
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, 2021 87,193 $ 37.24 Granted 21,520 $ 61.04 Vested (24,282) $ 44.93 Unvested at December 31, 2021 84,431 $ 41.09 |
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 23, 2021 $ 15.02 2.00 % 1.22 % 45 % 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, 2021 702,576 $ 34.68 Granted 42,080 $ 44.07 Exercised (3,650) 31.76 Canceled (10,000) $ 55.88 Outstanding at December 31, 2021 731,006 $ 4,879 $ 34.95 6.85 yrs. Vested or expected to vest 664,230 $ 4,430 $ 34.94 4.48 yrs. Exercisable at December 31, 2021 505,183 $ 2,665 $ 36.61 6.06 yrs. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Schedule of accumulated other comprehensive income (loss) | Three Months Ended December 31, 2020 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2020 $ (65,393) $ 613 $ (9,821) $ (74,601) Other comprehensive income (loss) before reclassifications — — 4,850 4,850 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 51 — — 51 Actuarial losses (1) 1,940 — — 1,940 Tax provision (benefit) (463) — — (463) Net current-period other comprehensive income (loss) 1,528 — 4,850 6,378 Accumulated other comprehensive income (loss) as of December 31, 2020 $ (63,865) $ 613 $ (4,971) $ (68,223) Three Months Ended December 31, 2021 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2021 $ (14,791) $ 9,017 $ (6,567) $ (12,341) Other comprehensive income (loss) before reclassifications — — 569 569 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 51 — — 51 Actuarial losses (1) 8 (60) — (52) Tax provision (benefit) (13) 14 — 1 Net current-period other comprehensive income (loss) 46 (46) 569 569 Accumulated other comprehensive income (loss) as of December 31, 2021 $ (14,745) $ 8,971 $ (5,998) $ (11,772) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension c ost. |
Long-term Obligations (Tables)
Long-term Obligations (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Long-term Obligations | |
Schedule of long-term obligations | September 30, December 31, 2021 2021 Finance lease obligations $ 7,613 $ 7,559 Environmental post-closure monitoring and maintenance activities 566 566 Long-term disability 231 225 Deferred dividends 210 207 Less amounts due within one year (319) (328) Long-term obligations (less current portion) $ 8,301 $ 8,229 |
Foreign Currency Forward Cont_2
Foreign Currency Forward Contracts (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Foreign Currency Forward Contracts | |
Schedule of foreign exchange hedging gains and losses | Three Months Ended December 31, 2020 2021 Foreign currency transactional gain (loss) $ 453 $ (220) Foreign exchange forward contract gain (loss) $ (281) $ (340) Net gain (loss) included in selling, general and administrative expense $ 172 $ (560) |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Other Information (Details) $ in Thousands, lb in Millions | Nov. 17, 2006USD ($) | Dec. 31, 2021USD ($)lb | Sep. 30, 2021USD ($) |
Revenues from Contracts with Customers | |||
Accounts receivable, gross | $ 57,466 | $ 58,517 | |
Accounts receivable, allowance for doubtful accounts | 605 | 553 | |
Contract liabilities | 12,204 | 12,829 | |
Estimated product returns | $ 950 | $ 1,060 | |
Conversion Services Arrangement [Member] | |||
Revenues from Contracts with Customers | |||
Revenue recognition period | 20 years | ||
Advance payments received | $ 50,000 | ||
Conversion Services Arrangement [Member] | Maximum [Member] | |||
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, 2021 | Dec. 31, 2020 | |
Revenue from Contracts with Customers | ||
Net revenues | $ 99,430 | $ 72,177 |
Product | ||
Revenue from Contracts with Customers | ||
Net revenues | 94,990 | 66,557 |
Aerospace | ||
Revenue from Contracts with Customers | ||
Net revenues | 48,455 | 24,555 |
Chemical processing | ||
Revenue from Contracts with Customers | ||
Net revenues | 17,450 | 15,256 |
Industrial gas turbine | ||
Revenue from Contracts with Customers | ||
Net revenues | 14,598 | 13,967 |
Other markets | ||
Revenue from Contracts with Customers | ||
Net revenues | 14,487 | 12,779 |
Other | ||
Revenue from Contracts with Customers | ||
Net revenues | $ 4,440 | $ 5,620 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Inventories | ||
Raw Materials | $ 22,858 | $ 22,711 |
Work-in-process | 165,557 | 138,609 |
Finished Goods | 81,554 | 85,797 |
Other | 1,454 | 1,378 |
Total | $ 271,423 | $ 248,495 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Statutory federal tax rate (as a percent) | 21.00% | 21.00% |
Effective tax rate (as a percent) | 26.10% | 21.20% |
Income (loss) before income taxes | $ 6,306 | $ (10,192) |
Pension and Post-retirement B_2
Pension and Post-retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan, Defined Benefit [Member] | ||
Pension Plan and Retirement Benefits | ||
Service cost | $ 1,182 | $ 1,407 |
Interest cost | 1,923 | 1,808 |
Expected return | (3,561) | (3,978) |
Amortizations | 51 | 1,956 |
Net periodic benefit cost | (405) | 1,193 |
Contribution to plan | 1,500 | |
Expected future employer contribution | 4,500 | |
United States Pension Plan of US Entity, Defined Benefit [Member] | Maximum [Member] | ||
Pension Plan and Retirement Benefits | ||
Additional pension contribution per year | 15,000 | |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||
Pension Plan and Retirement Benefits | ||
Service cost | 456 | 274 |
Interest cost | 559 | 573 |
Amortizations | (60) | |
Net periodic benefit cost | 955 | $ 847 |
Contribution to plan | 685 | |
Expected future employer contribution | $ 2,774 |
Legal, Environmental and Othe_3
Legal, Environmental and Other Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Environmental post-closure monitoring and maintenance activities | $ 566 | $ 566 |
Maturities of long-term obligations (discounted) | ||
Long-term obligations (less current portion) | 496 | $ 566 |
Long Term Obligations | ||
Maturities of long-term obligations (discounted) | ||
2023 | 68 | |
2024 | 89 | |
2025 | 67 | |
2026 | 68 | |
2027 and thereafter | 204 | |
Long-term obligations (less current portion) | $ 496 |
Deferred Revenue (Details)
Deferred Revenue (Details) - Conversion Services Arrangement [Member] $ in Thousands, lb in Millions | Nov. 17, 2006USD ($) | Dec. 31, 2021USD ($)lb |
Deferred revenue | ||
Term of agreement to provide conversion services | 20 years | |
Up-front/advance payment received | $ 50,000 | |
Up Front Fees Received | $ 50,000 | |
Additional volume of titanium metal to be converted on exercise of option by service receiver (in pounds) | lb | 10 | |
Liquidated damages | $ 25,000 | |
Revenue recognition period | 20 years | |
Maximum [Member] | ||
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, 2021USD ($) | |
Goodwill and Other Intangible Assets, Net | |
Goodwill impairment loss | $ 0 |
Change to goodwill | $ 0 |
Customer relationships | |
Goodwill and Other Intangible Assets, Net | |
Useful life | 15 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Intangible Assets | |||
Amortization of customer relationships, patents, non-competes and other intangibles | $ 118 | $ 116 | |
Total intangible assets, Gross Amount | 6,897 | $ 6,897 | |
Finite-lived intangible assets, Accumulated Amortization | (1,429) | (1,311) | |
Carrying Amount | 5,468 | 5,586 | |
Customer relationships | |||
Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | 2,100 | 2,100 | |
Finite-lived intangible assets, Accumulated Amortization | (1,029) | (995) | |
Finite-lived intangible assets, Carrying Amount | 1,071 | 1,105 | |
Other Intangible Assets [Member] | |||
Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | 997 | 997 | |
Finite-lived intangible assets, Accumulated Amortization | (400) | (316) | |
Finite-lived intangible assets, Carrying Amount | 597 | 681 | |
Trademarks [Member] | |||
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, 2021USD ($) |
Estimate of Aggregate Amortization Expense: | |
2022 | $ 347 |
2023 | 462 |
2024 | 142 |
2025 | 123 |
2026 | 120 |
Thereafter | $ 474 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: Basic and Diluted | ||
Net income (loss) - Basic | $ 4,659 | $ (8,027) |
Net income (loss) - Diluted | 4,659 | (8,027) |
Dividends paid and accrued | (2,809) | (2,782) |
Undistributed income (loss) - Basic | 1,850 | (10,809) |
Undistributed income (loss) - Diluted | $ 1,850 | $ (10,809) |
Percentage allocated to common shares | 98.90% | 100.00% |
Undistributed income (loss) allocated to common shares - Basic | $ 1,830 | $ (10,809) |
Undistributed income (loss) allocated to common shares - Diluted | 1,830 | (10,809) |
Dividends paid on common shares outstanding | 2,779 | 2,744 |
Net income (loss) available to common shares - Basic | 4,609 | (8,065) |
Net income (loss) available to common shares - Diluted | $ 4,609 | $ (8,065) |
Denominator: Basic and Diluted | ||
Weighted average shares outstanding - Basic (in shares) | 12,368,821 | 12,492,985 |
Adjustment for dilutive potential common shares (in shares) | 218,318 | |
Weighted average shares outstanding - Diluted (in shares) | 12,587,139 | 12,492,985 |
Basic net income (loss) per share (in dollars per share) | $ 0.37 | $ (0.65) |
Diluted net income (loss) per share (in dollars per share) | $ 0.37 | $ (0.65) |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Anti-dilutive Securities (Details) - shares | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee and Directors Stock Options | ||
Antidilutive securities | ||
Number of shares excluded as their effect would be anti-dilutive | 236,861 | 358,346 |
Restricted Stock [Member] | ||
Antidilutive securities | ||
Number of shares excluded as their effect would be anti-dilutive | 61,264 | 173,769 |
Deferred Restricted Stock | ||
Antidilutive securities | ||
Number of shares excluded as their effect would be anti-dilutive | 3,780 | 35,616 |
Performance Shares | ||
Antidilutive securities | ||
Number of shares excluded as their effect would be anti-dilutive | 55,008 | 64,467 |
Net Income (Loss) Per Share - W
Net Income (Loss) Per Share - Weighted Average Common Shares (Details) - shares | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Percentage allocated to common shares - weighted average | ||
Weighted average shares outstanding - Basic (in shares) | 12,368,821 | 12,492,985 |
Unvested participating shares | 135,486 | |
Total | 12,504,307 | 12,492,985 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Plan and Performance Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock [Member] | 2009 Restricted Stock Plan | ||
Restricted stock plan activity, number of shares | ||
Unvested and deferred at beginning of the period (in shares) | 142,269 | |
Granted (in shares) | 31,704 | |
Vested and deferred (in shares) | (38,487) | |
Unvested and deferred at end of the period (in shares) | 135,486 | |
Expected to vest (in shares) | 135,486 | |
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||
Unvested and deferred at beginning of the period (in dollars per share) | $ 26.78 | |
Granted (in dollars per share) | 44.07 | |
Vested and deferred (in dollars per share) | 30.43 | |
Unvested and deferred at end of the period (in dollars per share) | 29.78 | |
Expected to vest (in dollars per share) | $ 29.78 | |
Deferred Restricted Stock plan activity, number of shares | ||
Vested (in shares) | 38,487 | |
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||
Vested and deferred (in dollars per share) | $ 30.43 | |
Restricted stock plan activity, other disclosures | ||
Compensation expense | $ 392 | $ 495 |
Remaining unrecognized compensation expense | $ 2,489 | |
Weighted average period for recognition | 1 year 3 months 25 days | |
Restricted Stock [Member] | 2009 Restricted Stock Plan | Employee | ||
Restricted stock plan activity, other disclosures | ||
Repurchase of stock from employees (in shares) | 11,214 | |
Average purchase price (in dollars per share) | $ 43.70 | |
Deferred Restricted Stock | 2016 Restricted Stock Plan | ||
Restricted stock plan activity, number of shares | ||
Vested and deferred (in shares) | (28,833) | |
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||
Vested and deferred (in dollars per share) | $ 30.07 | |
Deferred Restricted Stock plan activity, number of shares | ||
Outstanding at beginning of period (in shares) | 7,398 | |
Granted (in shares) | 3,801 | |
Vested and deferred (in shares) | (7,398) | |
Outstanding at end of period (in shares) | 3,801 | |
Vested (in shares) | 28,833 | |
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||
Outstanding at beginning of period (in dollars per share) | $ 22.64 | |
Granted (in dollars per share) | 44.07 | |
Vested and deferred (in dollars per share) | 22.64 | |
Outstanding at end of period (in dollars per share) | 44.07 | |
Vested and deferred (in dollars per share) | $ 30.07 | |
Restricted stock plan activity, other disclosures | ||
Compensation expense | $ 42 | 63 |
Remaining unrecognized compensation expense | $ 154 | |
Weighted average period for recognition | 11 months 1 day | |
Performance Shares | ||
Restricted stock plan activity, number of shares | ||
Vested and deferred (in shares) | (24,282) | |
Deferred Restricted Stock plan activity, number of shares | ||
Vested (in shares) | 24,282 | |
Performance Shares | Certain Employees | ||
Stock-Based Compensation | ||
Remaining unrecognized compensation expense | $ 2,234 | |
Restricted stock plan activity, number of shares | ||
Unvested and deferred at beginning of the period (in shares) | 87,193 | |
Granted (in shares) | 21,520 | |
Vested and deferred (in shares) | (24,282) | |
Unvested and deferred at end of the period (in shares) | 84,431 | |
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||
Unvested and deferred at beginning of the period (in dollars per share) | $ 37.24 | |
Granted (in dollars per share) | 61.04 | |
Vested and deferred (in dollars per share) | 44.93 | |
Unvested and deferred at end of the period (in dollars per share) | $ 41.09 | |
Deferred Restricted Stock plan activity, number of shares | ||
Vested (in shares) | 24,282 | |
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||
Vested and deferred (in dollars per share) | $ 44.93 | |
Restricted stock plan activity, other disclosures | ||
Stock issued to certain employees | 20,911 | |
Compensation expense | $ 229 | $ 222 |
Weighted average period for recognition | 1 year 9 months 25 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Plans (Details) - Employee and Directors Stock Options - USD ($) $ / shares in Units, $ in Thousands | Nov. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair value assumptions | |||
Fair Value (in dollars per share) | $ 15.02 | ||
Dividend Yield (as a percent) | 2.00% | ||
Risk-Free Interest Rate (as a percent) | 1.22% | ||
Expected Volatility (as a percent) | 45.00% | ||
Expected Life | 5 years | ||
Stock-based employee compensation expense | $ 292 | $ 279 | |
Remaining unrecognized compensation expense | $ 1,471 | ||
Weighted average period for recognition | 1 year 3 months 21 days | ||
Activity under stock option plans, number of shares | |||
Outstanding at beginning of the period (in shares) | 702,576 | ||
Granted (in shares) | 42,080 | ||
Exercised (in shares) | (3,650) | ||
Canceled (in shares) | (10,000) | ||
Outstanding at end of the period (in shares) | 731,006 | ||
Vested or expected to vest (in shares) | 664,230 | ||
Exercisable at end of period (in shares) | 505,183 | ||
Outstanding at end of period, Aggregate Intrinsic Value | $ 4,879 | ||
Vested or expected to vest, Aggregate Intrinsic Value | 4,430 | ||
Exercisable at end of the period, Aggregate Intrinsic Value | $ 2,665 | ||
Weighted Average Exercise Prices | |||
Outstanding at beginning of the period (in dollars per share) | $ 34.68 | ||
Granted (in dollars per share) | 44.07 | ||
Exercised (in dollars per share) | 31.76 | ||
Canceled (in dollars per share) | 55.88 | ||
Outstanding at end of period (in dollars per share) | 34.95 | ||
Vested or expected to vest (in dollars per share) | 34.94 | ||
Exercisable at end of the period (in dollars per share) | $ 36.61 | ||
Outstanding at end of the period, Weighted Average Remaining Contractual Life | 6 years 10 months 6 days | ||
Vested or expected to vest, Weighted Average Remaining Contractual Life | 4 years 5 months 23 days | ||
Exercisable at end of the period, Weighted Average Remaining Contractual Life | 6 years 21 days |
Dividend (Details)
Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 27, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Common stock dividend | |||
Dividend declared (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 |
Dividend paid (in dollars per share) | $ 0.22 | $ 0.22 | |
Dividends paid | $ 2,811 | $ 2,795 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated other comprehensive income (loss) | ||
Balance | $ 343,321 | $ 301,501 |
Other comprehensive income (loss) | 569 | 6,378 |
Balance | 340,209 | 297,891 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated other comprehensive income (loss) | ||
Balance | (12,341) | (74,601) |
Other comprehensive income (loss) before reclassifications | 569 | 4,850 |
Amounts reclassified from accumulated other comprehensive income (loss), Tax provision (benefit) | 1 | (463) |
Other comprehensive income (loss) | 569 | 6,378 |
Balance | (11,772) | (68,223) |
Accumulated Other Comprehensive Income (Loss) [Member] | Pension Plan, Defined Benefit [Member] | ||
Accumulated other comprehensive income (loss) | ||
Balance | (14,791) | (65,393) |
Amounts reclassified from accumulated other comprehensive income (loss), Tax provision (benefit) | (13) | (463) |
Other comprehensive income (loss) | 46 | 1,528 |
Balance | (14,745) | (63,865) |
Accumulated Other Comprehensive Income (Loss) [Member] | Other Postretirement Benefit Plan, Defined Benefit [Member] | ||
Accumulated other comprehensive income (loss) | ||
Balance | 9,017 | 613 |
Amounts reclassified from accumulated other comprehensive income (loss), Tax provision (benefit) | 14 | |
Other comprehensive income (loss) | (46) | |
Balance | 8,971 | 613 |
Amortization of Pension and Postretirement Plan items | ||
Accumulated other comprehensive income (loss) | ||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 51 | 51 |
Amortization of Pension and Postretirement Plan items | Pension Plan, Defined Benefit [Member] | ||
Accumulated other comprehensive income (loss) | ||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 51 | 51 |
Actuarial losses | ||
Accumulated other comprehensive income (loss) | ||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (52) | 1,940 |
Actuarial losses | Pension Plan, Defined Benefit [Member] | ||
Accumulated other comprehensive income (loss) | ||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 8 | 1,940 |
Actuarial losses | Other Postretirement Benefit Plan, Defined Benefit [Member] | ||
Accumulated other comprehensive income (loss) | ||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (60) | |
Accumulated Translation Adjustment [Member] | ||
Accumulated other comprehensive income (loss) | ||
Balance | (6,567) | (9,821) |
Other comprehensive income (loss) before reclassifications | 569 | 4,850 |
Other comprehensive income (loss) | 569 | 4,850 |
Balance | $ (5,998) | $ (4,971) |
Long-term Obligations (Details)
Long-term Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Long-term obligations (less current portion) | ||
Finance lease obligations | $ 7,559 | $ 7,613 |
Environmental post-closure monitoring and maintenance activities | 566 | 566 |
Long-term disability | 225 | 231 |
Deferred dividends | 207 | 210 |
Less amounts due within one year | (328) | (319) |
Long-term obligations (less current portion) | $ 8,229 | $ 8,301 |
Foreign Currency Forward Cont_3
Foreign Currency Forward Contracts (Details) - Selling, General and Administrative Expenses - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign currency balance sheet hedging | ||
Foreign currency net gain (loss) | $ (560) | $ 172 |
Foreign Currency Transaction | ||
Foreign currency balance sheet hedging | ||
Foreign currency net gain (loss) | (220) | 453 |
Foreign Exchange Forward | ||
Foreign currency balance sheet hedging | ||
Foreign currency net gain (loss) | $ (340) | $ (281) |