Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Nov. 16, 2023 | Mar. 31, 2023 | |
Cover Abstract | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 437,446,639 | ||
Entity Common Stock, Shares Outstanding | 12,753,936 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | Indianapolis, IN |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 10,723 | $ 8,440 |
Accounts receivable, less allowance for credit losses of $428 and $459 at September 30, 2022 and September 30, 2023, respectively | 106,292 | 94,912 |
Inventories | 414,077 | 357,556 |
Income taxes receivable | 2,372 | |
Other current assets | 5,702 | 3,514 |
Total current assets | 539,166 | 464,422 |
Property, plant and equipment, net | 142,540 | 142,772 |
Deferred income taxes | 3,608 | 5,680 |
Other assets | 10,523 | 9,723 |
Goodwill | 4,789 | 4,789 |
Other intangible assets, net | 5,655 | 4,909 |
Total assets | 706,281 | 632,295 |
Current liabilities: | ||
Accounts payable | 52,812 | 54,886 |
Accrued expenses | 18,201 | 19,294 |
Income taxes payable | 336 | 828 |
Accrued pension and postretirement benefits | 2,940 | 3,371 |
Deferred revenue-current portion | 2,500 | 2,500 |
Total current liabilities | 76,789 | 80,879 |
Revolving credit facilities - Long-term | 114,843 | 74,721 |
Long-term obligations (less current portion) | 7,448 | 7,848 |
Deferred revenue (less current portion) | 5,329 | 7,829 |
Deferred income taxes | 3,686 | 3,103 |
Operating lease liabilities | 362 | 576 |
Accrued pension benefits (less current portion) | 14,019 | 21,090 |
Accrued postretirement benefits (less current portion) | 49,481 | 60,761 |
Total liabilities | 271,957 | 256,807 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value (40,000,000 shares authorized, 12,854,773 and 13,124,401 shares issued and 12,479,741 and 12,731,661 shares outstanding at September 30, 2022 and September 30, 2023, respectively) | 13 | 13 |
Preferred stock, $0.001 par value (20,000,000 shares authorized, 0 shares issued and outstanding) | ||
Additional paid-in capital | 277,713 | 266,193 |
Accumulated earnings | 165,825 | 135,040 |
Treasury stock, 375,032 shares at September 30, 2022 and 392,740 shares at September 30, 2023 | (15,600) | (14,666) |
Accumulated other comprehensive income (loss) | 6,373 | (11,092) |
Total stockholders' equity | 434,324 | 375,488 |
Total liabilities and stockholders' equity | $ 706,281 | $ 632,295 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 459 | $ 428 |
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) | 13,124,401 | 12,854,773 |
Common stock, shares outstanding (in shares) | 12,731,661 | 12,479,741 |
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) | 392,740 | 375,032 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Net revenues | $ 589,956 | $ 490,461 | $ 337,661 |
Cost of sales | 480,196 | 384,128 | 297,931 |
Gross profit | 109,760 | 106,333 | 39,730 |
Selling, general and administrative expense | 48,028 | 47,089 | 43,470 |
Research and technical expense | 4,126 | 3,822 | 3,403 |
Operating income (loss) | 57,606 | 55,422 | (7,143) |
Nonoperating retirement benefit expense (income) | (1,834) | (4,655) | 1,470 |
Interest income | (56) | (18) | (16) |
Interest expense | 7,594 | 2,481 | 1,186 |
Income (loss) before income taxes | 51,902 | 57,614 | (9,783) |
Provision for (benefit from) income taxes | 9,927 | 12,527 | (1,100) |
Net income (loss) | $ 41,975 | $ 45,087 | $ (8,683) |
Net income (loss) per share: | |||
Basic (dollars per share) | $ 3.31 | $ 3.62 | $ (0.71) |
Diluted (dollars per share) | $ 3.26 | $ 3.57 | $ (0.71) |
Weighted Average Common Shares Outstanding | |||
Basic (in shares) | 12,566,843 | 12,346,025 | 12,499,609 |
Diluted (in shares) | 12,780,278 | 12,505,500 | 12,499,609 |
Dividends declared per common share (dollars per share) | $ 0.88 | $ 0.88 | $ 0.88 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income (loss) | $ 41,975 | $ 45,087 | $ (8,683) |
Other comprehensive income (loss), net of tax: | |||
Pension and postretirement | 10,736 | 13,066 | 59,006 |
Foreign currency translation adjustment | 6,729 | (11,817) | 3,254 |
Other comprehensive income (loss) | 17,465 | 1,249 | 62,260 |
Comprehensive income | $ 59,440 | $ 46,336 | $ 53,577 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | 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) | (8,683) | (8,683) | ||||
Dividends paid ($0.88 per share for the year ended September 30, 2021, 2022 and 2023, respectively) | (11,245) | (11,245) | ||||
Other comprehensive income | 62,260 | 62,260 | ||||
Issue restricted stock (less forfeitures) (in shares) | 76,498 | |||||
Purchase of treasury stock | (4,986) | (4,986) | ||||
Purchase of treasury stock (in shares) | (136,729) | |||||
Stock compensation | 4,474 | 4,474 | ||||
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) | 45,087 | 45,087 | ||||
Dividends paid ($0.88 per share for the year ended September 30, 2021, 2022 and 2023, respectively) | (11,062) | (11,062) | ||||
Other comprehensive income | 1,249 | 1,249 | ||||
Exercise of stock options | 537 | 537 | ||||
Exercise of stock options (in shares) | 14,558 | |||||
Issue restricted stock (less forfeitures) (in shares) | 82,437 | |||||
Purchase of treasury stock | (7,243) | (7,243) | ||||
Purchase of treasury stock (in shares) | (179,394) | |||||
Stock compensation | 3,599 | 3,599 | ||||
Balance at Sep. 30, 2022 | $ 13 | 266,193 | 135,040 | (14,666) | (11,092) | 375,488 |
Balance (in shares) at Sep. 30, 2022 | 12,479,741 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 41,975 | 41,975 | ||||
Dividends paid ($0.88 per share for the year ended September 30, 2021, 2022 and 2023, respectively) | (11,190) | (11,190) | ||||
Other comprehensive income | 17,465 | 17,465 | ||||
Exercise of stock options | 8,230 | 8,230 | ||||
Exercise of stock options (in shares) | 218,576 | |||||
Issue restricted stock (less forfeitures) (in shares) | 51,052 | |||||
Purchase of treasury stock | (934) | (934) | ||||
Purchase of treasury stock (in shares) | (17,708) | |||||
Stock compensation | 3,290 | 3,290 | ||||
Balance at Sep. 30, 2023 | $ 13 | $ 277,713 | $ 165,825 | $ (15,600) | $ 6,373 | $ 434,324 |
Balance (in shares) at Sep. 30, 2023 | 12,731,661 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||
Dividend paid (in dollars per share) | $ 0.88 | $ 0.88 | $ 0.88 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 41,975 | $ 45,087 | $ (8,683) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 17,996 | 18,289 | 19,100 |
Amortization | 579 | 780 | 467 |
Pension and post-retirement expense - U.S. and U.K. | 2,243 | 1,898 | 8,100 |
Change in long-term obligations | (108) | (136) | 9 |
Stock compensation expense | 3,290 | 3,599 | 4,474 |
Deferred revenue | (2,500) | (2,500) | (2,500) |
Deferred income taxes | (608) | 6,442 | (2,436) |
Loss on disposition of property | 498 | 18 | 173 |
Change in assets and liabilities: | |||
Accounts receivable | (8,159) | (42,710) | (6,159) |
Inventories | (50,440) | (116,780) | (777) |
Other assets | (3,106) | 3,464 | (4,926) |
Accounts payable and accrued expenses | (8,465) | 10,696 | 33,869 |
Income taxes | (2,848) | 1,780 | 2,859 |
Accrued pension and postretirement benefits | (7,064) | (9,408) | (20,305) |
Net cash provided by (used in) operating activities | (16,717) | (79,481) | 23,265 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (16,397) | (15,114) | (5,949) |
Net cash used in investing activities | (16,397) | (15,114) | (5,949) |
Cash flows from financing activities: | |||
Revolving credit facility borrowings | 156,856 | 115,528 | |
Revolving credit facility repayments | (116,734) | (40,807) | |
Dividends paid | (11,192) | (11,072) | (11,175) |
Proceeds from exercise of stock options | 8,230 | 537 | |
Payment for purchase of treasury stock | (934) | (7,243) | (4,986) |
Payment for debt issuance cost | (1,325) | (103) | (997) |
Payments on long-term obligations | (315) | (278) | (285) |
Net cash provided by (used in) financing activities | 34,586 | 56,562 | (17,443) |
Effect of exchange rates on cash | 811 | (1,253) | 615 |
Increase (decrease) in cash and cash equivalents: | 2,283 | (39,286) | 488 |
Cash and cash equivalents: | |||
Beginning of period | 8,440 | 47,726 | 47,238 |
End of period | 10,723 | 8,440 | 47,726 |
Supplemental disclosures of cash flow information: | |||
Interest (net of capitalized interest) | 6,810 | 1,206 | 855 |
Income taxes paid, net | 13,202 | 3,671 | (1,580) |
Capital expenditures incurred but not yet paid | 1,442 | 242 | 666 |
Dividends declared but not yet paid | $ 198 | $ 199 | $ 210 |
Background and Organization
Background and Organization | 12 Months Ended |
Sep. 30, 2023 | |
Background and Organization | |
Background and Organization | Note 1. Background and Organization Description of Business Haynes International, Inc. (“Haynes”, “the Company”, “we”, “our” or “us”) is one of the world’s largest developers, producers, and distributors of technologically advanced high-performance nickel- and cobalt-based alloys. The Company’s products, which are sold primarily into the aerospace, chemical processing and industrial gas turbine industries, consist of high-temperature resistant alloys, or “HTA” products, and corrosion-resistant alloys, or “CRA” products. HTA products are used by manufacturers of equipment that is subjected to extremely high temperatures, such as jet engines for the aerospace market, gas turbine engines used for power generation and industrial heating equipment. CRA products are used in applications that require resistance to very corrosive media found in chemical processing, power plant emissions control and waste treatment. Haynes high-performance alloy sales in sheet, coil and plate forms, in the aggregate, represented approximately 64% of net product revenues in fiscal 2023. The Company also produces its products as seamless and welded tubulars, which represented approximately 12% of fiscal 2023 net product revenues and in wire form, which represented approximately 6% of fiscal 2023 net product revenues, and in slab, bar and billet forms, which, in the aggregate, represented approximately 18% of fiscal 2023 net product revenues. High-performance alloys are characterized by highly engineered, often proprietary, metallurgical formulations primarily of nickel, cobalt and other metals with complex physical properties. The complexity of the manufacturing process for high-performance alloys is reflected in the Company’s relatively high average selling price per pound, compared to the average selling price of other metals, such as carbon steel sheet, stainless steel sheet and aluminum. The high-performance alloy industry has significant barriers to entry such as the combination of (i) demanding end-user specifications, (ii) a multi-stage manufacturing process and (iii) the technical sales, marketing and manufacturing expertise required to develop and sell new applications. COVID-19 Pandemic COVID-19 related disruptions |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies A. Principles of Consolidation and Nature of Operations The consolidated financial statements include the accounts of Haynes International, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated. The Company has manufacturing facilities in Kokomo, Indiana; Mountain Home, North Carolina; and Arcadia, Louisiana with service centers in LaPorte, Indiana; LaMirada, California; Houston, Texas; Windsor, Connecticut; Openshaw, England; Lenzburg, Switzerland; Shanghai, China; and sales offices in Paris, France; Singapore; Milan, Italy; and Tokyo, Japan. B. Cash and Cash Equivalents The Company considers all highly liquid investment instruments, including investments with original maturities of three months or less at acquisition, to be cash equivalents, the carrying value of which approximates fair value due to the short maturity of these investments. C. Accounts Receivable The Company maintains allowances for credit losses for estimated losses resulting from the inability of its customers to make required payments. The Company markets its products to a diverse customer base, both in the United States of America and overseas. Trade credit is extended based upon the Company’s evaluation of each customer’s ability to perform its obligation, which is updated periodically. D. Revenue Recognition The Company recognizes revenue when performance obligations under the terms of customer contracts are satisfied which occurs when control of the goods has been transferred to the customer and services have been performed. Allowances for sales returns are recorded as a component of net sales in the periods in which the related sales are recognized. The Company determines this allowance based on historical experience. Additionally, the Company recognizes revenue attributable to an up-front fee received from Titanium Metals Corporation (TIMET) as a result of a twenty-year E. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the first-in, first-out (FIFO) method. The Company writes down its inventory for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market or scrap value, if applicable, based upon assumptions about future demand and market conditions. F. Goodwill and Other Intangible Assets The Company had goodwill, trademarks, customer relationships and other intangibles as of September 30, 2023. As the customer relationships have a definite life, they are amortized over 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 future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Goodwill and trademarks (indefinite lived) are tested for impairment at least annually as of January 31 for goodwill and as of August 31 for trademarks (the annual impairment testing dates), or more frequently if impairment indicators exist. If the carrying value of the trademarks exceeds the 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 was recognized in the years ended September 30, 2021, 2022 or 2023 because the fair value exceeded the carrying values in each of those years. During fiscal 2021, 2022 and 2023, there were no changes in the carrying amount of goodwill. Amortization of the customer relationships and other intangibles was $467, $780 and $579 for the years ended September 30, 2021, 2022 and 2023, respectively. The following represents a summary of intangible assets at September 30, 2022 and 2023: Gross Accumulated Carrying September 30, 2022 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,128) 972 Other 1,100 (963) 137 $ 7,000 $ (2,091) $ 4,909 Gross Accumulated Carrying September 30, 2023 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,257) 843 Other 1,080 (68) 1,012 $ 6,980 $ (1,325) $ 5,655 Estimated future Aggregate Amortization Expense: Year Ending September 30, 2024 $ 396 2025 393 2026 390 2027 318 2028 113 Thereafter 245 G. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost with depreciation calculated primarily by using the straight-line method based on estimated economic useful lives, which are generally as follows: Buildings and improvements 40 years Machinery and equipment 5 — 14 years Land improvements 20 years Expenditures for maintenance and repairs and minor renewals are charged to expense; major renewals are capitalized. Upon the retirement or sale of assets, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. The Company records capitalized interest for long-term construction projects to capture the cost of capital committed prior to the placed in service date as a part of the historical cost of acquiring the asset. Interest is not capitalized when the balance on the revolver is zero. The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. The reviews are conducted at the lowest identifiable level of cash flows for the identified asset group. Recoverability of the asset group is measured by a comparison of the carrying amount of the asset group to the undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group 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 group. No impairment was recognized during the years ended September 30, 2021, 2022 or 2023. H. Environmental Remediation When it is probable that a liability has been incurred or an asset of the Company has been impaired, a loss is recognized assuming the amount of the loss can be reasonably estimated. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations and current technology. Such estimates take into consideration the expected costs of post-closure monitoring based on historical experience. Amounts accrued for post-closure monitoring are presented in Note 18, Long-term Obligations. I. Pension and Postretirement Benefits The Company has defined benefit pension and postretirement plans covering most of its current and former employees. Significant elements in determining the assets or liabilities and related income or expense for these plans are the expected return on plan assets, the discount rate used to value future payment streams, expected trends in health care costs and other actuarial assumptions. Annually, the Company evaluates the significant assumptions to be used to value its pension and postretirement plan assets and liabilities based on current market conditions and expectations of future costs. If actual results are less favorable than those projected by management, additional expense may be required in future periods. Salaried employees hired after December 31, 2005 and hourly employees hired after June 30, 2007 are not covered by the pension plan; however, they are eligible for an enhanced matching program under the Company’s defined contribution plan (its 401(k) plan). Effective December 31, 2007, the U.S. pension plan was amended to freeze benefits for all non-union employees in the U.S. Effective September 30, 2009, the U.K. pension plan was amended to freeze benefits for all employees in the plan. Effective January 1, 2007, a plan amendment of the postretirement medical plan capped the Company’s liability related to retiree health care costs at $5,000 annually. Effective October 1, 2009, the U.S. postretirement medical plan was closed for all non-union employees. J. Foreign Currency Exchange The Company’s foreign operating entities’ financial statements are denominated in the functional currencies of each respective country, which are the local currencies. All assets and liabilities are translated to U.S. dollars using exchange rates in effect at the end of the year, and revenues and expenses are translated at the weighted average rate for the year. Translation gains or losses are recorded as a separate component of comprehensive income (loss) and transaction gains and losses are reflected in the consolidated statements of operations. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in selling, general and administrative expense. The Company has entered into foreign currency forward contracts (See Note 20, Foreign Currency Forward Contracts) with the purpose to reduce income statement volatility resulting from transaction gains and losses. K. Research and Technical Costs Research and technical costs related to the development of new products and processes are expensed as incurred. Research and technical costs for the fiscal years ended September 30, 2021, 2022 and 2023 were $3,403, $3,822 and $4,126, respectively. L. Income Taxes The Company accounts for deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between book and tax basis of recorded assets and liabilities. A valuation allowance is required if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of whether or not a valuation allowance is needed is based upon an evaluation of both positive and negative evidence. In its evaluation of the need for a valuation allowance, the Company utilizes prudent and feasible tax planning strategies. The ultimate amount of deferred tax assets realized could be different from those recorded, as influenced by potential changes in enacted tax laws and the availability of future taxable income. The Company records uncertain tax positions on the basis of a two-step process whereby (1) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority (See Note 7, Income Taxes). M. Stock-based Compensation As described in Note 12, the Company has incentive compensation plans that provide for the issuance of restricted stock, restricted stock units, performance shares, stock options and stock appreciation rights to key employees and non-employee directors. To date, the Company has only issued restricted stock, performance shares and stock options. The stock-based compensation grants typically have a vesting period before the employee or director can take receipt of the stock or becomes eligible to exercises stock options. Employees and directors earn and receive dividends from the restricted stock during this vesting period and accumulated dividends related to performance shares are paid to the employees at the time that the shares are received by the employee after the end of the vesting period. The Company recognizes compensation expense under the fair-value based method as a component of operating expenses. N. Financial Instruments and Concentrations of Risk The Company may periodically enter into forward currency exchange contracts to minimize the variability in the Company’s operating results arising from foreign exchange rate movements. The Company does not engage in foreign currency speculation. At September 30, 2022 and 2023, the Company had no foreign currency exchange contracts outstanding. To date, all foreign currency contracts have been settled prior to the end of the month in which they were initiated. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. At September 30, 2023, and periodically throughout fiscal 2023, the Company maintained cash balances in excess of federally insured limits. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the relatively short maturity of these instruments. During fiscal 2021, 2022 and 2023, the Company did not have sales to any group of affiliated customers that were greater than 10% of net revenues. The Company generally does not require collateral with the exception of letters of credit with certain foreign sales. Credit losses amounted to $74, $171 and $286 in fiscal 2021, 2022 and 2023, respectively. The Company does not believe it is significantly vulnerable to the risk of near-term severe impact from business concentrations with respect to customers, suppliers, products, markets or geographic areas. O. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to credit losses, inventories, income taxes, asset impairment, incremental borrowing rates, retirement benefits and environmental matters. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, pension asset mix and in some cases, actuarial techniques, and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company routinely reevaluates these significant factors and makes adjustments where facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. P. Earnings 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. Basic and diluted net income per share were computed as follows: Years ended September 30, (in thousands, except share and per share data) 2021 2022 2023 Numerator: Basic and Diluted Net income (loss) $ (8,683) $ 45,087 $ 41,975 Dividends (11,245) (11,062) (11,190) Undistributed income (loss) (19,928) 34,025 30,785 Percentage allocated to common shares (a) 100.0 % 99.0 % 99.2 % Undistributed income (loss) allocated to common shares (19,928) 33,699 30,544 Dividends paid on common shares outstanding 11,098 10,955 11,103 Net income (loss) available to common shares (8,830) 44,654 41,647 Denominator: Basic and Diluted Weighted average common shares outstanding 12,499,609 12,346,025 12,566,843 Adjustment for dilutive potential common shares — 159,475 213,435 Weighted average shares outstanding - Diluted 12,499,609 12,505,500 12,780,278 Basic net income (loss) per share $ (0.71) $ 3.62 $ 3.31 Diluted net income (loss) per share $ (0.71) $ 3.57 $ 3.26 Number of stock option shares excluded as their effect would be anti-dilutive 385,548 261,228 206,096 Number of restricted stock shares excluded as their effect would be anti-dilutive 165,794 50,415 41,809 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive 30,529 2,791 6,052 Number of performance share awards excluded as their effect would be anti-dilutive 76,266 46,693 41,210 (a) Common shares outstanding 12,499,609 12,346,025 12,566,843 Unvested participating shares — 119,549 98,992 12,499,609 12,465,574 12,665,835 Q. Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848). . |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Sep. 30, 2023 | |
Revenues from Contracts with Customers | |
Revenues from Contracts with Customers | Note 3. Revenues from Contracts with Customers The Company applies 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. The Company’s revenue from contracts with customers is generated primarily from providing high-performance alloys, manufactured to the specifications of its customers, along with conversion services to certain customers. 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 has 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 due to there being no alternative use for the product without significant economic loss and an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. As of September 30, 2022 and September 30, 2023, the Company did not have any customer agreements that would require revenue to be recorded over time. Each customer purchase order or contract for goods transferred represents 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 TIMET (See Note 15) includes the performance obligation to provide conversion services for up to ten million pounds of titanium metal annually over a 20-year 20-year 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 of goods or services to customers. Revenue is derived from 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 operations. 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, 2022 and September 30, 2023, accounts receivable with customers were $95,340 and $106,751, respectively. Allowance for credit losses as of September 30, 2022 and September 30, 2023 were $428 and $459, respectively, and are presented within accounts receivable, less allowance for credit losses on the Consolidated Balance Sheets. 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, 2022 and September 30, 2023, no contract liabilities have been recorded except for $10,329 and $7,829, respectively, for the TIMET agreement and $700 and $810 for accrued product returns, respectively. 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 did not have any remaining performance obligations in excess of one year or any contracts that it did not have the right to invoice as of September 30, 2023. The Company does not adjust for the time value of money as the majority of its contracts have an original expected duration of one year or less; contracts that are greater than one year are related to net revenues that are constrained until the subsequent sales occur. 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 fiscal years ended September 30, 2021, 2022 and 2023. Year Ended September 30, 2021 2022 2023 Net revenues (dollars in thousands) Aerospace $ 128,072 $ 230,001 $ 290,391 Chemical processing 63,147 91,665 92,019 Industrial gas turbine 66,772 91,878 120,731 Other markets 58,090 53,706 60,287 Total product revenue 316,081 467,250 563,428 Other revenue 21,580 23,211 26,528 Net revenues $ 337,661 $ 490,461 $ 589,956 See Note 13 for revenue disaggregated by geography and product group. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2023 | |
Inventories | |
Inventories | Note 4. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the FIFO method. The following is a summary of the major classes of inventories: September 30, September 30, 2022 2023 Raw Materials $ 31,887 $ 42,602 Work-in-process 226,572 229,120 Finished Goods 97,657 140,756 Other 1,440 1,599 $ 357,556 $ 414,077 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 5. Property, Plant and Equipment The following is a summary of the major classes of property, plant and equipment: September 30, 2022 2023 Land and land improvements $ 10,158 $ 10,418 Buildings and improvements 45,872 46,931 Machinery and equipment 313,841 321,676 Construction in process 8,756 16,704 378,627 395,729 Less accumulated depreciation (235,855) (253,189) $ 142,772 $ 142,540 As of September 30, 2022 and 2023, the Company had $132 and $131, respectively, of assets under a finance lease for equipment related to the service center operation in Shanghai, China. Additionally, the Company had $5,643 and $5,230 of assets under finance leases for two buildings at the LaPorte, Indiana service center as of September 30, 2022 and 2023, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses | |
Accrued Expenses | Note 6. Accrued Expenses The following is a summary of the major classes of accrued expenses: September 30, 2022 2023 Employee compensation $ 7,734 $ 8,329 Taxes, other than income taxes 2,897 2,900 Accrued product returns 700 810 Utilities 1,383 1,171 Professional fees 966 428 Finance lease obligation, current 265 302 Management incentive compensation 3,609 2,289 Other 1,740 1,972 $ 19,294 $ 18,201 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes | |
Income Taxes | Note 7. Income Taxes The components of income (loss) before provision for income taxes and the provision for income taxes are as follows: Year Ended September 30, 2021 2022 2023 Income (loss) before income taxes: U.S. $ (11,417) $ 38,864 $ 37,538 Foreign 1,634 18,750 14,364 Total $ (9,783) $ 57,614 $ 51,902 Provision for (benefit from) income taxes: Current: U.S. Federal $ 741 $ 2,031 $ 7,366 Foreign 349 3,302 2,741 State 228 639 490 Total 1,318 5,972 10,597 Deferred: U.S. Federal (2,986) 5,931 (1,509) Foreign 470 120 459 State (317) (300) 25 Valuation allowance 415 804 355 Total (2,418) 6,555 (670) Total provision for (benefit from) income taxes $ (1,100) $ 12,527 $ 9,927 The provision for income taxes applicable to results of operations differed from the U.S. federal statutory rate as follows: Year Ended September 30, 2021 2022 2023 Statutory federal tax rate 21.00 % 21.00 % 21.00 % Tax provision for income taxes at the statutory rate $ (2,054) $ 12,099 $ 10,899 Foreign tax rate differentials (59) (307) 102 Provision for state taxes, net of federal taxes (84) 974 822 U.S. tax on distributed and undistributed earnings of foreign subsidiaries 198 984 54 Foreign derived intangible income deduction — (966) (693) Tax credits (691) (702) (724) Federal and state tax rate change impact on deferred tax asset 790 (206) 81 Change in valuation allowance 415 804 355 Stock compensation 138 191 46 Other, net 247 (344) (1,015) Provision for (benefit from) income taxes at effective tax rate $ (1,100) $ 12,527 $ 9,927 Effective tax rate 11.2 % 21.7 % 19.1 % During fiscal 2021, the Company’s effective tax rate was lower than the federal statutory rate primarily due to an increase in the UK tax rate and decreases in the state tax rates and apportionment, both of which resulted in a decrease in net deferred tax assets. During fiscal 2022, the Company’s effective tax rate was higher than the federal statutory rate primarily due to a provision for state taxes, net of federal taxes and an increased valuation allowance on tax credits that are not expected to be able to be utilized before they expire. During fiscal 2023, the Company’s effective tax rate was lower than the federal statutory rate primarily due to a change in estimate on U.S. taxes owed on foreign income. Deferred tax assets (liabilities) are comprised of the following: September 30, 2022 2023 Deferred tax assets: Pension and postretirement benefits $ 16,802 $ 12,045 TIMET Agreement 2,396 1,801 Inventories 3,225 4,341 Accrued compensation and benefits 2,096 1,451 Accrued expenses and other 2,600 2,526 Tax attributes 5,625 5,596 Other assets 250 1,077 Valuation allowance (4,695) (5,052) Total deferred tax assets $ 28,299 $ 23,785 Deferred tax liabilities: Property, plant and equipment, net $ (24,081) $ (22,056) Intangible and other (1,414) (1,511) Other liabilities (227) (296) Total deferred tax liabilities $ (25,722) $ (23,863) Net deferred tax assets (liabilities) $ 2,577 $ (78) As of September 30, 2023 the Company had state tax net operating loss carryforwards of $7,254, tax credits of $5,832 and foreign net operating loss carryforwards of $1,984. Certain state tax attributes and other tax credit attributes begin to expire in 2026 and 2024, respectively. The Company has recorded a valuation allowance against the foreign net operating loss carryforwards of $445 and federal and state tax credits of $4,607 because management does not believe that it is more likely than not that the amounts will be realized. Undistributed earnings of certain of the Company’s foreign subsidiaries amounted to approximately $83,063 at September 30, 2023. The Company considers most of those earnings reinvested indefinitely and, accordingly, aside from the one-time transition tax associated with the Tax Cuts and Jobs Act, no additional provision for U.S. income taxes has been provided. For the Company’s foreign subsidiary in the U.K., Haynes International Ltd, as of September 30, 2023, the Company considers this subsidiary’s earnings to be reinvested indefinitely except to the extent there is previously taxed earnings and profit (PTEP), in which case, the Company might decide to repatriate cash via a dividend to the U.S. If such funds were to be repatriated, there could be minor currency gains/losses that would be subject to tax and any distribution could also be subject to applicable non-U.S. income and withholding taxes. As of September 30, 2023, the Company was open to examination in the U.S. for the 2019 through 2023 tax years and in various foreign jurisdictions from 2018 through 2023. The Company is also open to examination in various states in the U.S., none of which were individually material. As of September 30, 2022 and 2023, the Company had no uncertain tax positions. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2023 | |
Debt | |
Debt | Note 8. Debt U.S. revolving credit facility On June 20, 2023, the Company and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) entered into Amendment No. 3 to Credit Agreement (the “Amendment”), which amended that certain Credit Agreement, dated October 19, 2020 (as amended by that certain Amendment No. 1 to Credit Agreement dated August 30, 2022, by that certain Increase Joinder Regarding Incremental Revolving Commitments and Amendment No. 2 to Credit Agreement dated October 7, 2022 and by the Amendment, the “Credit Agreement”). The Amendment increased the maximum amount available for revolving loans under the credit facility to $200,000, subject to a borrowing base and certain reserves. The Company must pay monthly, in arrears, a commitment fee of 0.375% per annum on the unused amount of the revolving credit facility total commitment. For letters of credit, the Company must pay a fronting fee of 0.125% per annum as well as customary fees for issuance, amendments and processing. The Company is subject to certain covenants as to fixed charge coverage ratios and other customary covenants, including covenants restricting the incurrence of indebtedness, the granting of liens and the sale of assets. The covenant pertaining to fixed charge coverage ratios is only effective in the event the amount of excess availability under the revolver is less than the greater of (i) 15.0% of the maximum credit revolving loan amount and (ii) $25,000. The Company is permitted to pay dividends and repurchase common stock if certain financial metrics are met. The Company may pay quarterly cash dividends up to $3,500 per fiscal quarter so long as the Company is not in default under the Credit Agreement and the related Security Agreement (as defined in the Credit Agreement). As of September 30, 2023, the Company was in compliance with the covenants of the Credit Agreement. Borrowings under the Credit Agreement are collateralized by a pledge of substantially all of the U.S. assets of the Company, including the equity interests in its U.S. subsidiaries, but excluding the four-high Steckel rolling mill and related assets, which are pledged to TIMET to secure the performance of the Company’s obligations under its Conversion Services Agreement with TIMET (see Note 15). Borrowings under the Credit Agreement are also secured by a pledge of a 100% equity interest in each of the Company’s direct foreign subsidiaries. The Company’s U.K. subsidiary (Haynes International Ltd.) has an overdraft facility of 1,333 Pounds Sterling ($1,633), all of which was available September 30, 2023 available September 30, 2023 available September 30, 2023 |
Pension Plan and Retirement Ben
Pension Plan and Retirement Benefits | 12 Months Ended |
Sep. 30, 2023 | |
Pension Plan and Retirement Benefits | |
Pension Plan and Retirement Benefits | Note 9. Pension Plan and Retirement Benefits Defined Contribution Plans The Company sponsors a defined contribution plan (its 401(k) plan) for substantially all U.S. employees. The Company contributes an amount equal to 50% of an employee’s contribution to the plan up to a maximum contribution of 3% of the employee’s salary, except for all salaried employees and certain hourly employees (those hired after June 30, 2007 that are not eligible for the U.S. pension plan). For salary earned through June 30, 2023, the Company contributed an amount equal to 60% of an employee’s contribution to the plan up to a maximum contribution of 6% of the employee’s salary for these groups. Beginning on July 1, 2023, the Company contributes an annual amount equal to 60% of an employee’s contribution to the plan up to a maximum contribution of 8% of the employee’s salary for these groups. Expenses associated with this plan for the years ended September 30, 2021, 2022 and 2023 totaled $1,748, $2,016 and $2,352, respectively. The Company sponsors certain profit sharing plans for the benefit of employees meeting certain eligibility requirements. There were no contributions to these plans for the years ended September 30, 2021, 2022 and 2023. Defined Benefit Plans The Company has non-contributory defined benefit pension plans which cover certain employees in the U.S. and the U.K. Benefits provided under the Company’s U.S. defined benefit pension plan are based on years of service and the employee’s final compensation. The Company’s funding policy is to contribute annually an amount deductible for federal income tax purposes based upon an actuarial cost method using actuarial and economic assumptions designed to achieve adequate funding of benefit obligations. The Company has non-qualified pensions for a few former executives of the Company. Non-qualified pension plan expense for the years ended September 30, 2021, 2022 and 2023 was $37, $3 and $57, respectively. Accrued liabilities in the amount of $530 and $492 for these benefits are included in accrued pension and postretirement benefits liability at September 30, 2022 and 2023, respectively. In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for retired employees. Certain employees, depending on date of hire, become eligible for health care, and substantially all employees become eligible for life insurance, if they reach normal retirement age while working for the Company. The Company’s liability related to total retiree health care costs is limited to $5,000 annually. The Company made contributions of $21,000, $6,000, and $6,000 to fund its domestic Company-sponsored pension plan for the years ended September 30, 2021, 2022 and 2023, respectively. The Company’s U.K. subsidiary made contributions of $0 for each of the years ended September 30, 2021, 2022 and 2023, respectively, to the U.K. pension plan. The Company uses a September 30 measurement date for its plans. As of the September 30, 2023 measurement date, the projected benefit obligation for the U.S pension plan and the U.K. pension plan was $217,393 and $7,397, respectively. The status of employee pension benefit plans and other postretirement benefit plans is summarized below: Defined Benefit Postretirement Pension Plans Health Care Benefits Year Ended Year Ended September 30, September 30, 2022 2023 2022 2023 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 315,466 $ 231,275 $ 82,964 $ 64,037 Service cost 4,728 2,689 1,825 1,389 Interest cost 7,936 11,548 2,234 3,199 Actuarial (gains) losses (81,225) (5,236) (20,343) (14,171) Benefits paid (15,223) (14,615) (2,643) (2,128) Administrative expenses (407) (871) — — Projected benefit obligation at end of year $ 231,275 $ 224,790 $ 64,037 $ 52,326 Change in Plan Assets: Fair value of plan assets at beginning of year $ 297,703 $ 218,321 $ — $ — Actual return on assets (69,752) 11,136 — — Employer contributions 6,000 6,000 2,643 2,128 Benefits paid (15,223) (14,615) (2,643) (2,128) Administrative expenses (407) (871) — — Fair value of plan assets at end of year $ 218,321 $ 219,971 $ — $ — Funded Status of Plan: Unfunded status $ (12,954) $ (4,819) $ (64,037) $ (52,326) The actuarial gains incurred during the fiscal years ended September 30, 2022 and 2023 for the Defined Benefit Pension Plans were driven by an increase in the discount rate applied against future expected benefit payments which resulted in a decrease in the defined benefit obligation. Amounts recognized in the consolidated balance sheets are as follows: Defined Benefit Postretirement Non-Qualified All Plans Pension Plans Health Care Benefits Pension Plans Combined September 30, September 30, September 30, September 30, 2022 2023 2022 2023 2022 2023 2022 2023 Accrued pension and postretirement benefits: Current $ — $ — $ (3,276) $ (2,845) $ (95) $ (95) $ (3,371) $ (2,940) Non - (12,954) (4,819) (60,761) (49,481) (435) (397) (74,150) (54,697) Accrued pension and postretirement benefits $ (12,954) $ (4,819) $ (64,037) $ (52,326) $ (530) $ (492) $ (77,521) $ (57,637) Accumulated other comprehensive (income) loss: Net (income) loss 22,496 20,663 (30,807) (42,699) — — (8,311) (22,036) Prior service cost 1,365 1,130 — — — — 1,365 1,130 Total accumulated other comprehensive (income) loss $ 23,861 $ 21,793 $ (30,807) $ (42,699) $ — $ — $ (6,946) $ (20,906) The non-current portion of the defined benefit pension plan portion of accrued pension and postretirement benefits amounted to $12,954 and $4,819 in fiscal 2022 and 2023, respectively. These amounts included the U.K. pension plan net pension asset of $7,702 and $8,803, respectively, which was included in Other assets on the Consolidated Balance Sheets as well as the U.S. pension plan accrued pension liability of $20,655 and $13,622, respectively, which were recorded in accrued pension benefit (less current portion) on the Consolidated Balance Sheet. The accumulated benefit obligation for the pension plans was $227,915 and $216,287 at September 30, 2022 and 2023, respectively. The cost of the Company’s postretirement benefits is accrued over the years that employees provide service to the date of their full eligibility for such benefits. The Company’s policy is to fund the cost of claims on an annual basis. The components of net periodic pension cost and postretirement health care benefit cost are as follows: Defined Benefit Pension Plans Year Ended September 30, 2021 2022 2023 Service cost $ 5,628 $ 4,728 $ 2,689 Interest cost 7,481 7,936 11,548 Expected return on assets (16,356) (14,818) (14,570) Amortization of prior service cost 239 233 236 Recognized actuarial loss 7,721 — 31 Net periodic cost $ 4,713 $ (1,921) $ (66) Postretirement Health Care Benefits Year Ended September 30, 2021 2022 2023 Service cost $ 1,095 $ 1,825 $ 1,389 Interest cost 2,292 2,234 3,199 Recognized actuarial loss — (240) (2,279) Net periodic cost $ 3,387 $ 3,819 $ 2,309 Assumptions A 5.0% annual rate of increase for the costs of covered health care benefits for ages under 65 and a 5.0% annual rate of increase for ages over 65 were assumed for 2022 and increased to 7.0% for the under 65 and over 65 age groups in 2023, 6.5% in 2024, 6.0% in 2025, 5.5% in 2026 and 5.0% in the years thereafter. The actuarial present value of the projected pension benefit obligation and postretirement health care benefit obligation for the plans at September 30, 2022 and 2023 were determined based on the following assumptions: September 30, September 30, 2022 2023 Discount rate (postretirement health care) (1) 5.13 % 5.63 % Discount rate (U.S. pension plan) (1) 5.13 % 5.63 % Discount rate (U.K. pension plan) 5.90 % 5.70 % Rate of compensation increase (U.S. pension plan only) 2.50 % 3.50 % (1) The discount rate for the postretirement health care plan and the U.S. pension plan are derived using the FTSE Pension Discount Curve and projected benefit payments. Defined Benefit Pension and Postretirement Health Care Plans Year Ended September 30, 2021 2022 2023 Discount rate (postretirement health care plan) 2.50 % 2.75 % 5.13 % Discount rate (U.S. pension plan) 2.25 % 2.63 % 5.13 % Discount rate (U.K. pension plan) 1.50 % 2.00 % 5.90 % Expected return on plan assets (U.S. pension plan) 7.25 % 5.25 % 6.88 % Expected return on plan assets (U.K. pension plan) 2.00 % 3.00 % 5.50 % Rate of compensation increase (U.S. pension plan only) 2.50 % 2.50 % 2.50 % Plan Assets and Investment Strategy The Company’s pension plan assets by level within the fair value hierarchy at September 30, 2022 and 2023 are presented in the table below. The pension plan assets were accounted for at fair value. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments in U.S and International equities, and Fixed Income securities are held in mutual funds and common / collective funds which are valued using net asset value (NAV) provided by the administrator of the fund, and individual fixed income securities which consists of Level 1 and Level 2 assets. As of September 30, 2023, the fixed income portfolio consisted of 301 issuances of fixed income securities from 238 issuers. For more information on a description of the fair value hierarchy, see Note 16. September 30, 2022 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. corporate and government bonds $ 15,926 $ 158,582 $ — $ 174,508 U.S. common stock mutual funds — $ — $ 16,471 16,471 Common /collective funds Bonds — — — — Short-term money market — — — — U.S. common stock — — 6,847 6,847 International equity — — 5,390 5,390 Total U.S. $ 15,926 $ 158,582 $ 28,708 $ 203,216 U.K. Plan Assets: Equities $ — $ — $ 5,135 $ 5,135 Bonds — — 8,006 8,006 Other — — 1,964 1,964 Total U.K. $ — $ — $ 15,105 $ 15,105 Total pension plan assets $ 15,926 $ 158,582 $ 43,813 $ 218,321 September 30, 2023 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. corporate and government bonds $ 26,647 $ 154,686 $ — $ 181,333 U.S. common stock mutual funds — — 17,900 17,900 International equity — — 4,538 4,538 Total U.S. $ 26,647 $ 154,686 $ 22,438 $ 203,771 U.K. Plan Assets: Bonds — — 10,692 10,692 Short-term money market 5,508 — — 5,508 Total U.K. $ 5,508 $ — $ 10,692 $ 16,200 Total pension plan assets $ 32,155 $ 154,686 $ 33,130 $ 219,971 The primary financial objectives of the plans are to maintain asset funding as a percentage of the benefit obligations. The U.S. pension plan utilized a customized liability driven investment (LDI) strategy, which is designed to match the risk and duration of the fixed income assets in the portfolio with that of the obligation. It is the policy of the U.S. pension plan to invest assets with an allocation to equities as shown below based on a matrix which determines the allocation between equities and fixed income based on the funding percentage of the plan. The balance of the assets is maintained in fixed income investments, and in cash holdings, to the extent permitted by the plan documents. Target asset classes as a percent of total assets as of September 30, 2023: Asset Class Target (1) Equity 11 % Fixed Income 89 % Real Estate and Other — % (1) The Company adjusts the target allocation based on the fair value of pension assets as a percentage of the projected pension obligation. In choosing the assumption for the expected long-term rate of return on U.S. pension plan assets, the Company takes into account the plan’s target asset allocation as well as capital market assumptions relating to the asset classes. The Company believes that its assumption regarding the long-term rate of return on plan assets is reasonable, and comparable to the asset return assumptions of other companies, given the target allocation of the plan assets. Note that over very long historical periods, the realized return on plan assets has met or exceeded the expected rate of return. Also note that in recognition of the variability of future market returns, it is reasonable to consider a modest range around the expected future return, and there exists the potential for the use of a lower, or higher, expected rate of return in the future. The U.K. pension plan assets follow a more conservative investment objective due to the higher funding status of the plan. Contributions and Benefit Payments The Company has not yet determined the amounts to contribute to its domestic pension plans, domestic other postretirement benefit plans and the U.K. pension plan in fiscal 2024. Pension and postretirement health care benefits, which include expected future service, are expected to be paid out of the respective plans as follows: Postretirement Fiscal Year Ending September 30 Pension Health Care 2024 $ 16,001 $ 3,988 2025 16,308 4,021 2026 16,623 4,124 2027 16,953 4,063 2028 17,002 4,101 2029 - 2033 (in total) 86,225 21,333 |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Legal, Environmental and Other Contingencies | |
Legal, Environmental and Other Contingencies | Note 10. 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, 2023, the Company has accrued $355 for post-closure monitoring and maintenance activities, of which $266 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 September 30, 2023. Expected maturities of post-closure monitoring and maintenance activities (discounted) Year Ending September 30, 2025 $ 62 2026 60 2027 63 2028 65 2029 and thereafter 16 $ 266 |
Stockholders Equity
Stockholders Equity | 12 Months Ended |
Sep. 30, 2023 | |
Stockholder's Equity | |
Stockholder's Equity | Note 11. Stockholder’s Equity Dividends During fiscal years 2021, 2022, and 2023, the Company paid dividends of $11,175, $11,072 and $11,192, respectively. Treasury Stock Treasury stock activity for fiscal years 2021, 2022 and 2023 was as follows: Year Ended Year Ended Year Ended September 30, September 30, September 30, 2021 2022 2023 Number of shares at beginning of year 58,909 195,638 375,032 Repurchases of common stock to satisfy employee payroll taxes 23,751 37,002 17,708 Repurchases of common stock from share repurchase plan 112,978 142,392 — Number of shares at end of year 195,638 375,032 392,740 Share Repurchase Plan On July 28, 2021, the Board of Directors authorized the use of up to $20 million of available cash to purchase shares of the Company's common stock through July 27, 2022. The Board adopted the repurchase plan because it believed that repurchasing the Company’s stock at current market prices presented an attractive capital allocation strategy for the Company given the available options for the use of capital. The authorization of the repurchase plan has expired and no new authorization has been put in place. During fiscal 2021, the Company repurchased 112,978 shares at an average price per share of $37.57 with an aggregate purchase price of $4,245 under a Rule 10b5-1 agreement and in fiscal 2022, the Company repurchased 142,392 shares at an average price per share of $40.09 with an aggregate purchase price of $5,709 under the 10b5-1 agreement. The Company repurchased 17,708 shares in fiscal 2023 with an aggregate purchase price of $934 in order to satisfy payroll taxes related to employee stock-based compensation plans. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 12. Stock based Compensation Restricted Stock Plan On March 1, 2016, the Company adopted the 2016 Incentive Compensation Plan which provided 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 could be granted in the aggregate under this plan. Following the adoption of the 2016 Incentive Compensation Plan, the Company ceased granting awards from its 2009 restricted stock plan, although awards remain outstanding thereunder. On January 24, 2020, the Company adopted the 2020 Incentive Compensation Plan which provides for grants of restricted stock, restricted stock units and performance shares, among other awards. Up to 250,000 shares of restricted stock, restricted stock units and performance shares were authorized to be granted in the aggregate under this plan. On February 25, 2022, the 2020 Incentive Compensation Plan was amended to allow for an aggregate of 575,000 authorized shares of restricted stock, restricted stock units and performance shares to be granted under this plan. Following the adoption of the 2020 Incentive Compensation Plan, the Company ceased granting awards from the 2016 Incentive Compensation 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. Employees and directors earn and receive dividends from the restricted stock during this vesting period. 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 Company’s plans provide 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 2016 Incentive Compensation Plan and the 2020 Incentive Compensation Plan with respect to restricted stock for the year ended September 30, 2023: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2022 96,536 $ 33.23 Granted 30,159 $ 49.23 Forfeited / Canceled (510) $ 30.11 Vested (36,342) $ 36.82 Unvested at September 30, 2023 89,843 $ 37.17 Expected to vest 89,843 $ 37.17 Compensation expense related to restricted stock for the years ended September 30, 2021, 2022 and 2023 was $2,024, $1,474, and $1,257, respectively. The remaining unrecognized compensation expense related to restricted stock at September 30, 2023 was $1,451, to be recognized over a weighted average period of 1.17 years. During fiscal 2023, the Company repurchased 17,708 shares of stock from employees at an average purchase price of $52.72 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. Beginning in fiscal 2018, the Company has granted shares of restricted stock from the 2016 Incentive Compensation Plans and 2020 Incentive Compensation Plans with respect to which elections have been made by certain individuals to defer receipt to a future period. Such shares vest in accordance with the parameters of the 2016 Incentive Compensation Plan and the 2020 Incentive Compensation Plan, as applicable; 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 and the 2020 Incentive Compensation Plan with respect to deferred restricted stock for the year ended September 30, 2023. Weighted Average Fair Number of Value At Shares Grant Date Unvested and deferred at September 30, 2022 3,801 $ 44.07 Granted 8,974 $ 49.19 Vested and deferred (3,801) $ 44.07 Unvested and deferred at September 30, 2023 8,974 $ 49.19 Vested and deferred at September 30, 2023 21,351 $ 31.32 Compensation expense related to deferred restricted stock for the years ended September 30, 2021, 2022 and 2023 was $188, $168 and $378, respectively. The remaining unrecognized compensation expense related to restricted stock at September 30, 2023 was $91, to be recognized over a weighted average period of 0.21 years. Performance Shares In November 2020, the Company granted to certain employees a 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 stockholder 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 stockholder 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. The following table summarizes the activity under the 2016 Incentive Compensation Plan and 2020 Incentive Compensation Plan with respect to performance shares for the year ended September 30, 2023. Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2022 76,420 $ 41.37 Granted 19,555 $ 69.39 Vested (25,226) $ 42.83 Forfeited / Canceled — $ 0.00 Unvested at September 30, 2023 70,749 $ 48.60 Compensation expense related to the performance shares for the years ended September 30, 2021, 2022 and 2023 was $1,082, $1,021 and $1,224, respectively. The remaining unrecognized compensation expense related to performance shares at September 30, 2023 was $1,376, to be recognized over a weighted average period of 1.53 years. Stock Option Plans The Company’s 2020 Incentive Compensation Plan and its previous stock option plans authorize, or formerly authorized, the granting of non-qualified stock options and stock appreciation rights to certain key employees and non-employee directors for the purchase of shares of the Company’s common stock. For the 2020 Incentive Compensation Plan, the maximum number of shares that may be granted subject to options was originally 350,000, which number was subsequently amended on February 25, 2022 and increased to 400,000. Following the adoption of the 2020 Incentive Compensation Plan, the Company ceased granting awards from its previous incentive compensation plans, although awards remain outstanding from previous plans. 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 % 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 2021, 2022 and 2023: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life June 16, 2023 $ 20.82 1.70 % 3.91 % 48 % 5 years February 7, 2023 $ 22.70 1.65 % 3.81 % 51 % 5 years November 22, 2022 $ 20.52 1.80 % 3.97 % 51 % 5 years November 23, 2021 $ 15.02 2.00 % 1.22 % 45 % 5 years November 24, 2020 $ 5.91 3.89 % 0.39 % 43 % 5 years The stock-based employee compensation expense for stock options for the years ended September 30, 2021, 2022 and 2023 was $1,180, $937 and $650, respectively. The remaining unrecognized compensation expense at September 30, 2023 was $686, to be recognized over a weighted average vesting period of 1.08 years. The following table summarizes the activity under the stock option plans for the year ended September 30, 2023: Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2022 697,220 $ 34.75 Granted 32,985 $ 49.08 Exercised (218,576) $ 37.90 Forfeited/Surrendered (13,081) $ 47.96 Outstanding at September 30, 2023 498,548 $ 6,346 $ 33.96 6.26 yrs. Vested or expected to vest 479,274 $ 6,046 $ 34.07 6.20 yrs. Exercisable at September 30, 2023 399,672 $ 5,313 $ 33.23 5.80 yrs. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting | |
Segment Reporting | Note 13. Segment Reporting The Company operates in one business segment: the design, manufacture, marketing and distribution of technologically advanced, high-performance alloys for use in the aerospace, industrial gas turbine, chemical processing and other industries. The Company has operations in the United States, Europe and China, which are summarized below. Sales between geographic areas are made at negotiated selling prices. Revenues from external customers are attributed to the geographic areas presented based on the destination of product shipments. Year Ended September 30, 2021 2022 2023 Net Revenue by Geography: United States $ 179,127 $ 278,473 $ 344,381 Europe 85,555 116,599 135,403 China 30,668 33,910 27,097 Other 42,311 61,479 83,075 Net Revenues $ 337,661 $ 490,461 $ 589,956 Net Revenue by Product Group: High-temperature resistant alloys $ 253,246 $ 387,464 $ 501,463 Corrosive-resistant alloys 84,415 102,997 88,493 Net revenues $ 337,661 $ 490,461 $ 589,956 September 30, 2022 2023 Long-lived Assets by Geography United States $ 135,698 $ 134,596 Europe 6,921 7,799 China 153 145 Total long-lived assets $ 142,772 $ 142,540 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2023 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | Note 14. Valuation and Qualifying Accounts Balance at Charges Balance at Beginning (credits) to End of of Period Expense Deductions (1) Period Allowance for credit losses: September 30, 2021 545 74 (66) 553 September 30, 2022 553 171 (296) 428 September 30, 2023 428 286 (255) 459 (1) Uncollectible accounts written off net of recoveries . |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Sep. 30, 2023 | |
Deferred Revenue | |
Deferred Revenue | Note 15. Deferred Revenue On November 17, 2006, the Company entered into a 20-year 20 years 20-year |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | Note 16. 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) The fair value of Cash and Cash Equivalents is determined using Level 1 information. The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and 2023: September 30, 2022 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ 15,926 $ 158,582 $ — $ 43,813 $ 218,321 Total fair value $ 15,926 $ 158,582 $ — $ 43,813 $ 218,321 September 30, 2023 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ 32,155 $ 154,686 $ — $ 33,130 $ 219,971 Total fair value $ 32,155 $ 154,686 $ — $ 33,130 $ 219,971 The Company had no other financial assets or liabilities measured at fair value on a recurring basis as of September 30, 2022 or 2023. |
Comprehensive Income (Loss) and
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended |
Sep. 30, 2023 | |
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | Note 17. Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component Comprehensive income (loss) includes changes in equity that result from transactions and economic events from non-owner sources. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) items, including pension and foreign currency translation adjustments, net of tax when applicable. Comprehensive Income (Loss) Year Ended September 30, 2021 2022 2023 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net Net income (loss) $ (8,683) $ 45,087 $ 41,975 Other comprehensive income (loss): Pension and postretirement: Net gain (loss) arising during period $ 68,941 (16,044) 52,897 $ 16,991 (3,924) 13,067 $ 16,008 (3,700) 12,308 Amortization of prior service cost 228 (52) 176 239 (56) 183 233 (55) 178 Amortization of (gain) loss 7,735 (1,802) 5,933 (240) 56 (184) (2,279) 529 (1,750) Foreign currency translation adjustment 3,254 — 3,254 (11,817) — (11,817) 6,729 — 6,729 Other comprehensive income (loss) $ 80,158 $ (17,898) 62,260 $ 5,173 $ (3,924) 1,249 $ 20,691 $ (3,226) 17,465 Total comprehensive income (loss) $ 53,577 $ 46,336 $ 59,440 Accumulated Other Comprehensive Income (Loss) Year Ended September 30, 2022 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 (2,557) 15,624 (11,817) 1,250 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 239 — — 239 Actuarial losses (1) — (240) — (240) Tax benefit (56) 56 — — Net current-period other comprehensive income (loss) (2,374) 15,440 (11,817) 1,249 Accumulated other comprehensive income (loss) as of September 30, 2022 $ (17,165) $ 24,457 $ (18,384) $ (11,092) Year Ended September 30, 2023 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2022 $ (17,165) $ 24,457 $ (18,384) $ (11,092) Other comprehensive income (loss) before reclassifications 1,401 10,907 6,729 19,037 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 233 — — 233 Actuarial losses (1) — (2,279) — (2,279) Tax benefit (55) 529 — 474 Net current-period other comprehensive income (loss) 1,579 9,157 6,729 17,465 Accumulated other comprehensive income (loss) as of September 30, 2023 $ (15,586) $ 33,614 $ (11,655) $ 6,373 (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Long-term Obligations
Long-term Obligations | 12 Months Ended |
Sep. 30, 2023 | |
Long-term Obligations | |
Long-term Obligations | Note 18. Long-term Obligations The following table sets for the components of Long-term obligations as of September 30, 2022 and 2023. September 30, September 30, 2022 2023 Finance lease obligations $ 7,384 $ 7,118 Environmental post-closure monitoring and maintenance activities 407 355 Long-term disability 210 189 Deferred dividends 199 198 Less amounts due within one year (352) (412) Long-term obligations (less current portion) $ 7,848 $ 7,448 |
Leases
Leases | 12 Months Ended |
Sep. 30, 2023 | |
Leases | |
Leases | Note 19. Leases On October 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) Nature of the Leases The Company has operating and finance leases for buildings, equipment (e.g. trucks and forklifts), vehicles, and computer equipment. Leasing arrangements require fixed payments and also include an amount that is probable to be owed under residual value guarantees , if applicable. Some lease payments also include payments related to purchase or termination options when the lessee is reasonably certain to exercise the option or is not reasonably certain not to exercise the option, respectively. The leases have remaining terms of 1 to 15 years . For all leases with an initial expected term of more than 12 months 842 On January 1, 2015, the Company entered into a finance lease agreement for the building that houses the assets and operations of LaPorte Custom Metal Processing (LCMP). The leased 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 Sheets and is depreciated over the 20-year The Company entered into a 20-year 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 Sheets and depreciated over the 20-year Significant Judgments and Assumptions Determination of Whether a Contract Contains a Lease The Company determines whether a contract is or contains a lease at the inception of the contract. The contract is or contains a lease if the contract conveys the right to control the use of identified assets for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from use of the property, plant, and equipment and have the right to direct its use. Practical Expedients (Policy Elections) The Company elected certain practical expedients and transition relief, including the short-term lease recognition exemption, which excludes leases with a term of 12 months or less from recognition on the balance sheet, recognizing lease components and non-lease components together as a single lease component, and the transition relief package which, among other things, includes not reassessing the lease classification or whether a contract is or contains a lease. The following table sets forth the components of the Company’s lease cost for the years ended September 30, 2022 and 2023. September 30, September 30, 2022 2023 Finance lease cost: Amortization of ROU asset $ 430 $ 430 Interest on lease liabilities 784 759 Total finance lease cost $ 1,214 $ 1,189 Operating lease cost $ 1,100 $ 1,173 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases 784 759 Operating cash flows from operating leases 1,100 1,173 Financing cash flows from finance leases 228 265 Total cash paid for amounts included in measurement of lease liabilities $ 2,112 $ 2,197 Lease costs associated with short term leases are not material. The following table sets forth the Company’s ROU assets and lease liabilities as of September 30, 2022 and 2023. September 30, September 30, 2022 2023 Finance lease assets (included in Property, plant and equipment, net) $ 5,643 $ 5,230 Operating ROU lease assets (included in Other assets) $ 1,085 $ 1,067 Finance lease liabilities Accrued expenses $ 265 $ 302 Long-term obligations (less current portion) 7,119 6,816 Total Finance lease liabilities $ 7,384 $ 7,118 Operating lease liabilities $ 1,085 $ 1,067 Operating lease payments due within one year are recorded in Accrued expenses on the Consolidated Balance Sheets. September 30, September 30, 2022 2023 Weighted average lease term (Years) Finance leases 13.1 12.1 Operating leases 3.0 2.0 Weighted average discount rate Finance leases 10.32 % 10.32 % Operating leases 5.25 % 5.84 % The following is a table of future minimum lease payments during each fiscal year under operating and finance leases and the present value of the net minimum lease payments as of September 30, 2023. Finance Operating Future minimum lease payments Leases Leases 2024 $ 1,032 $ 718 2025 1,037 276 2026 1,044 126 2027 1,049 62 2028 1,050 — Thereafter 7,357 — Total minimum lease payments 12,569 1,182 Less: amount representing interest (5,451) (115) Present value of net minimum lease payments $ 7,118 $ 1,067 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts | 12 Months Ended |
Sep. 30, 2023 | |
Foreign Currency Forward Contracts | |
Foreign Currency Forward Contracts | Note 20. Foreign Currency Forward Contracts The Company enters into foreign currency forward contracts with the purpose of reducing income statement volatility resulting from foreign currency denominated transactions. The Company has not designated the contacts 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 September 30, 2021, 2022 and 2023, there are no contracts that remain unsettled. As a result, there is no impact to the balance sheet as of September 30, 2022 or September 30, 2023. 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. Year Ended Year Ended Year Ended September 30, September 30, September 30, 2021 2022 2023 Foreign currency transactional gain (loss) $ (42) $ 4,393 $ (2,538) Foreign exchange forward contract gain (loss) (532) (6,066) 1,403 Net gain (loss) included in selling, general and administrative expense $ (574) $ (1,673) $ (1,135) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Nature of Operations | A. Principles of Consolidation and Nature of Operations The consolidated financial statements include the accounts of Haynes International, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated. The Company has manufacturing facilities in Kokomo, Indiana; Mountain Home, North Carolina; and Arcadia, Louisiana with service centers in LaPorte, Indiana; LaMirada, California; Houston, Texas; Windsor, Connecticut; Openshaw, England; Lenzburg, Switzerland; Shanghai, China; and sales offices in Paris, France; Singapore; Milan, Italy; and Tokyo, Japan. |
Cash and Cash Equivalents | B. Cash and Cash Equivalents The Company considers all highly liquid investment instruments, including investments with original maturities of three months or less at acquisition, to be cash equivalents, the carrying value of which approximates fair value due to the short maturity of these investments. |
Accounts Receivable | C. Accounts Receivable The Company maintains allowances for credit losses for estimated losses resulting from the inability of its customers to make required payments. The Company markets its products to a diverse customer base, both in the United States of America and overseas. Trade credit is extended based upon the Company’s evaluation of each customer’s ability to perform its obligation, which is updated periodically. |
Revenue Recognition | D. Revenue Recognition The Company recognizes revenue when performance obligations under the terms of customer contracts are satisfied which occurs when control of the goods has been transferred to the customer and services have been performed. Allowances for sales returns are recorded as a component of net sales in the periods in which the related sales are recognized. The Company determines this allowance based on historical experience. Additionally, the Company recognizes revenue attributable to an up-front fee received from Titanium Metals Corporation (TIMET) as a result of a twenty-year |
Inventories | E. Inventories Inventories are stated at the lower of cost or net realizable value. The cost of inventories is determined using the first-in, first-out (FIFO) method. The Company writes down its inventory for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market or scrap value, if applicable, based upon assumptions about future demand and market conditions. |
Goodwill and Other Intangible Assets | F. Goodwill and Other Intangible Assets The Company had goodwill, trademarks, customer relationships and other intangibles as of September 30, 2023. As the customer relationships have a definite life, they are amortized over 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 future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Goodwill and trademarks (indefinite lived) are tested for impairment at least annually as of January 31 for goodwill and as of August 31 for trademarks (the annual impairment testing dates), or more frequently if impairment indicators exist. If the carrying value of the trademarks exceeds the 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 was recognized in the years ended September 30, 2021, 2022 or 2023 because the fair value exceeded the carrying values in each of those years. During fiscal 2021, 2022 and 2023, there were no changes in the carrying amount of goodwill. Amortization of the customer relationships and other intangibles was $467, $780 and $579 for the years ended September 30, 2021, 2022 and 2023, respectively. The following represents a summary of intangible assets at September 30, 2022 and 2023: Gross Accumulated Carrying September 30, 2022 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,128) 972 Other 1,100 (963) 137 $ 7,000 $ (2,091) $ 4,909 Gross Accumulated Carrying September 30, 2023 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,257) 843 Other 1,080 (68) 1,012 $ 6,980 $ (1,325) $ 5,655 Estimated future Aggregate Amortization Expense: Year Ending September 30, 2024 $ 396 2025 393 2026 390 2027 318 2028 113 Thereafter 245 |
Property, Plant and Equipment | G. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost with depreciation calculated primarily by using the straight-line method based on estimated economic useful lives, which are generally as follows: Buildings and improvements 40 years Machinery and equipment 5 — 14 years Land improvements 20 years Expenditures for maintenance and repairs and minor renewals are charged to expense; major renewals are capitalized. Upon the retirement or sale of assets, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. The Company records capitalized interest for long-term construction projects to capture the cost of capital committed prior to the placed in service date as a part of the historical cost of acquiring the asset. Interest is not capitalized when the balance on the revolver is zero. The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. The reviews are conducted at the lowest identifiable level of cash flows for the identified asset group. Recoverability of the asset group is measured by a comparison of the carrying amount of the asset group to the undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group 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 group. No impairment was recognized during the years ended September 30, 2021, 2022 or 2023. |
Environmental Remediation | H. Environmental Remediation When it is probable that a liability has been incurred or an asset of the Company has been impaired, a loss is recognized assuming the amount of the loss can be reasonably estimated. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations and current technology. Such estimates take into consideration the expected costs of post-closure monitoring based on historical experience. Amounts accrued for post-closure monitoring are presented in Note 18, Long-term Obligations. |
Pension and Postretirement Benefits | I. Pension and Postretirement Benefits The Company has defined benefit pension and postretirement plans covering most of its current and former employees. Significant elements in determining the assets or liabilities and related income or expense for these plans are the expected return on plan assets, the discount rate used to value future payment streams, expected trends in health care costs and other actuarial assumptions. Annually, the Company evaluates the significant assumptions to be used to value its pension and postretirement plan assets and liabilities based on current market conditions and expectations of future costs. If actual results are less favorable than those projected by management, additional expense may be required in future periods. Salaried employees hired after December 31, 2005 and hourly employees hired after June 30, 2007 are not covered by the pension plan; however, they are eligible for an enhanced matching program under the Company’s defined contribution plan (its 401(k) plan). Effective December 31, 2007, the U.S. pension plan was amended to freeze benefits for all non-union employees in the U.S. Effective September 30, 2009, the U.K. pension plan was amended to freeze benefits for all employees in the plan. Effective January 1, 2007, a plan amendment of the postretirement medical plan capped the Company’s liability related to retiree health care costs at $5,000 annually. Effective October 1, 2009, the U.S. postretirement medical plan was closed for all non-union employees. |
Foreign Currency Exchange | J. Foreign Currency Exchange The Company’s foreign operating entities’ financial statements are denominated in the functional currencies of each respective country, which are the local currencies. All assets and liabilities are translated to U.S. dollars using exchange rates in effect at the end of the year, and revenues and expenses are translated at the weighted average rate for the year. Translation gains or losses are recorded as a separate component of comprehensive income (loss) and transaction gains and losses are reflected in the consolidated statements of operations. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in selling, general and administrative expense. The Company has entered into foreign currency forward contracts (See Note 20, Foreign Currency Forward Contracts) with the purpose to reduce income statement volatility resulting from transaction gains and losses. |
Research and Technical Costs | K. Research and Technical Costs Research and technical costs related to the development of new products and processes are expensed as incurred. Research and technical costs for the fiscal years ended September 30, 2021, 2022 and 2023 were $3,403, $3,822 and $4,126, respectively. |
Income Taxes | L. Income Taxes The Company accounts for deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between book and tax basis of recorded assets and liabilities. A valuation allowance is required if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The determination of whether or not a valuation allowance is needed is based upon an evaluation of both positive and negative evidence. In its evaluation of the need for a valuation allowance, the Company utilizes prudent and feasible tax planning strategies. The ultimate amount of deferred tax assets realized could be different from those recorded, as influenced by potential changes in enacted tax laws and the availability of future taxable income. The Company records uncertain tax positions on the basis of a two-step process whereby (1) it is determined whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority (See Note 7, Income Taxes). |
Stock-based Compensation | M. Stock-based Compensation As described in Note 12, the Company has incentive compensation plans that provide for the issuance of restricted stock, restricted stock units, performance shares, stock options and stock appreciation rights to key employees and non-employee directors. To date, the Company has only issued restricted stock, performance shares and stock options. The stock-based compensation grants typically have a vesting period before the employee or director can take receipt of the stock or becomes eligible to exercises stock options. Employees and directors earn and receive dividends from the restricted stock during this vesting period and accumulated dividends related to performance shares are paid to the employees at the time that the shares are received by the employee after the end of the vesting period. The Company recognizes compensation expense under the fair-value based method as a component of operating expenses. |
Financial Instruments and Concentrations of Risk | N. Financial Instruments and Concentrations of Risk The Company may periodically enter into forward currency exchange contracts to minimize the variability in the Company’s operating results arising from foreign exchange rate movements. The Company does not engage in foreign currency speculation. At September 30, 2022 and 2023, the Company had no foreign currency exchange contracts outstanding. To date, all foreign currency contracts have been settled prior to the end of the month in which they were initiated. Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. At September 30, 2023, and periodically throughout fiscal 2023, the Company maintained cash balances in excess of federally insured limits. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the relatively short maturity of these instruments. During fiscal 2021, 2022 and 2023, the Company did not have sales to any group of affiliated customers that were greater than 10% of net revenues. The Company generally does not require collateral with the exception of letters of credit with certain foreign sales. Credit losses amounted to $74, $171 and $286 in fiscal 2021, 2022 and 2023, respectively. The Company does not believe it is significantly vulnerable to the risk of near-term severe impact from business concentrations with respect to customers, suppliers, products, markets or geographic areas. |
Accounting Estimates | O. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to credit losses, inventories, income taxes, asset impairment, incremental borrowing rates, retirement benefits and environmental matters. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, pension asset mix and in some cases, actuarial techniques, and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company routinely reevaluates these significant factors and makes adjustments where facts and circumstances dictate. Actual results may differ from these estimates under different assumptions or conditions. |
Earnings Per Share | P. Earnings 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. Basic and diluted net income per share were computed as follows: Years ended September 30, (in thousands, except share and per share data) 2021 2022 2023 Numerator: Basic and Diluted Net income (loss) $ (8,683) $ 45,087 $ 41,975 Dividends (11,245) (11,062) (11,190) Undistributed income (loss) (19,928) 34,025 30,785 Percentage allocated to common shares (a) 100.0 % 99.0 % 99.2 % Undistributed income (loss) allocated to common shares (19,928) 33,699 30,544 Dividends paid on common shares outstanding 11,098 10,955 11,103 Net income (loss) available to common shares (8,830) 44,654 41,647 Denominator: Basic and Diluted Weighted average common shares outstanding 12,499,609 12,346,025 12,566,843 Adjustment for dilutive potential common shares — 159,475 213,435 Weighted average shares outstanding - Diluted 12,499,609 12,505,500 12,780,278 Basic net income (loss) per share $ (0.71) $ 3.62 $ 3.31 Diluted net income (loss) per share $ (0.71) $ 3.57 $ 3.26 Number of stock option shares excluded as their effect would be anti-dilutive 385,548 261,228 206,096 Number of restricted stock shares excluded as their effect would be anti-dilutive 165,794 50,415 41,809 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive 30,529 2,791 6,052 Number of performance share awards excluded as their effect would be anti-dilutive 76,266 46,693 41,210 (a) Common shares outstanding 12,499,609 12,346,025 12,566,843 Unvested participating shares — 119,549 98,992 12,499,609 12,465,574 12,665,835 |
Recently Issued Accounting Pronouncements | Q. Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848). . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Summary of Significant Accounting Policies | |
Summary of finite-lived intangible assets | Gross Accumulated Carrying September 30, 2022 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,128) 972 Other 1,100 (963) 137 $ 7,000 $ (2,091) $ 4,909 Gross Accumulated Carrying September 30, 2023 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,257) 843 Other 1,080 (68) 1,012 $ 6,980 $ (1,325) $ 5,655 |
Schedule of indefinite-lived intangible assets | Gross Accumulated Carrying September 30, 2022 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,128) 972 Other 1,100 (963) 137 $ 7,000 $ (2,091) $ 4,909 Gross Accumulated Carrying September 30, 2023 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (1,257) 843 Other 1,080 (68) 1,012 $ 6,980 $ (1,325) $ 5,655 |
Schedule of estimated future aggregate amortization expense | Estimated future Aggregate Amortization Expense: Year Ending September 30, 2024 $ 396 2025 393 2026 390 2027 318 2028 113 Thereafter 245 |
Schedule of estimated economic useful lives of property, plant and equipment | Buildings and improvements 40 years Machinery and equipment 5 — 14 years Land improvements 20 years |
Schedule of basic and diluted net income per share | Years ended September 30, (in thousands, except share and per share data) 2021 2022 2023 Numerator: Basic and Diluted Net income (loss) $ (8,683) $ 45,087 $ 41,975 Dividends (11,245) (11,062) (11,190) Undistributed income (loss) (19,928) 34,025 30,785 Percentage allocated to common shares (a) 100.0 % 99.0 % 99.2 % Undistributed income (loss) allocated to common shares (19,928) 33,699 30,544 Dividends paid on common shares outstanding 11,098 10,955 11,103 Net income (loss) available to common shares (8,830) 44,654 41,647 Denominator: Basic and Diluted Weighted average common shares outstanding 12,499,609 12,346,025 12,566,843 Adjustment for dilutive potential common shares — 159,475 213,435 Weighted average shares outstanding - Diluted 12,499,609 12,505,500 12,780,278 Basic net income (loss) per share $ (0.71) $ 3.62 $ 3.31 Diluted net income (loss) per share $ (0.71) $ 3.57 $ 3.26 Number of stock option shares excluded as their effect would be anti-dilutive 385,548 261,228 206,096 Number of restricted stock shares excluded as their effect would be anti-dilutive 165,794 50,415 41,809 Number of deferred restricted stock shares excluded as their effect would be anti-dilutive 30,529 2,791 6,052 Number of performance share awards excluded as their effect would be anti-dilutive 76,266 46,693 41,210 (a) Common shares outstanding 12,499,609 12,346,025 12,566,843 Unvested participating shares — 119,549 98,992 12,499,609 12,465,574 12,665,835 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenues from Contracts with Customers | |
Schedule of disaggregation of revenue | Year Ended September 30, 2021 2022 2023 Net revenues (dollars in thousands) Aerospace $ 128,072 $ 230,001 $ 290,391 Chemical processing 63,147 91,665 92,019 Industrial gas turbine 66,772 91,878 120,731 Other markets 58,090 53,706 60,287 Total product revenue 316,081 467,250 563,428 Other revenue 21,580 23,211 26,528 Net revenues $ 337,661 $ 490,461 $ 589,956 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Inventories | |
Summary of major classes of inventories | September 30, September 30, 2022 2023 Raw Materials $ 31,887 $ 42,602 Work-in-process 226,572 229,120 Finished Goods 97,657 140,756 Other 1,440 1,599 $ 357,556 $ 414,077 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment | |
Summary of the major classes of property, plant and equipment | September 30, 2022 2023 Land and land improvements $ 10,158 $ 10,418 Buildings and improvements 45,872 46,931 Machinery and equipment 313,841 321,676 Construction in process 8,756 16,704 378,627 395,729 Less accumulated depreciation (235,855) (253,189) $ 142,772 $ 142,540 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses | |
Summary of the major classes of accrued expenses | September 30, 2022 2023 Employee compensation $ 7,734 $ 8,329 Taxes, other than income taxes 2,897 2,900 Accrued product returns 700 810 Utilities 1,383 1,171 Professional fees 966 428 Finance lease obligation, current 265 302 Management incentive compensation 3,609 2,289 Other 1,740 1,972 $ 19,294 $ 18,201 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes | |
Schedule of components of income before provision for income taxes | Year Ended September 30, 2021 2022 2023 Income (loss) before income taxes: U.S. $ (11,417) $ 38,864 $ 37,538 Foreign 1,634 18,750 14,364 Total $ (9,783) $ 57,614 $ 51,902 Provision for (benefit from) income taxes: Current: U.S. Federal $ 741 $ 2,031 $ 7,366 Foreign 349 3,302 2,741 State 228 639 490 Total 1,318 5,972 10,597 Deferred: U.S. Federal (2,986) 5,931 (1,509) Foreign 470 120 459 State (317) (300) 25 Valuation allowance 415 804 355 Total (2,418) 6,555 (670) Total provision for (benefit from) income taxes $ (1,100) $ 12,527 $ 9,927 |
Schedule of provision for income taxes applicable to results of operations differed from the U.S. federal statutory rate | Year Ended September 30, 2021 2022 2023 Statutory federal tax rate 21.00 % 21.00 % 21.00 % Tax provision for income taxes at the statutory rate $ (2,054) $ 12,099 $ 10,899 Foreign tax rate differentials (59) (307) 102 Provision for state taxes, net of federal taxes (84) 974 822 U.S. tax on distributed and undistributed earnings of foreign subsidiaries 198 984 54 Foreign derived intangible income deduction — (966) (693) Tax credits (691) (702) (724) Federal and state tax rate change impact on deferred tax asset 790 (206) 81 Change in valuation allowance 415 804 355 Stock compensation 138 191 46 Other, net 247 (344) (1,015) Provision for (benefit from) income taxes at effective tax rate $ (1,100) $ 12,527 $ 9,927 Effective tax rate 11.2 % 21.7 % 19.1 % |
Schedule of deferred tax assets (liabilities) | September 30, 2022 2023 Deferred tax assets: Pension and postretirement benefits $ 16,802 $ 12,045 TIMET Agreement 2,396 1,801 Inventories 3,225 4,341 Accrued compensation and benefits 2,096 1,451 Accrued expenses and other 2,600 2,526 Tax attributes 5,625 5,596 Other assets 250 1,077 Valuation allowance (4,695) (5,052) Total deferred tax assets $ 28,299 $ 23,785 Deferred tax liabilities: Property, plant and equipment, net $ (24,081) $ (22,056) Intangible and other (1,414) (1,511) Other liabilities (227) (296) Total deferred tax liabilities $ (25,722) $ (23,863) Net deferred tax assets (liabilities) $ 2,577 $ (78) |
Pension Plan and Retirement B_2
Pension Plan and Retirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Pension Plan and Retirement Benefits | |
Schedule of status of employee pension benefit plans and other postretirement benefit plans | Defined Benefit Postretirement Pension Plans Health Care Benefits Year Ended Year Ended September 30, September 30, 2022 2023 2022 2023 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 315,466 $ 231,275 $ 82,964 $ 64,037 Service cost 4,728 2,689 1,825 1,389 Interest cost 7,936 11,548 2,234 3,199 Actuarial (gains) losses (81,225) (5,236) (20,343) (14,171) Benefits paid (15,223) (14,615) (2,643) (2,128) Administrative expenses (407) (871) — — Projected benefit obligation at end of year $ 231,275 $ 224,790 $ 64,037 $ 52,326 Change in Plan Assets: Fair value of plan assets at beginning of year $ 297,703 $ 218,321 $ — $ — Actual return on assets (69,752) 11,136 — — Employer contributions 6,000 6,000 2,643 2,128 Benefits paid (15,223) (14,615) (2,643) (2,128) Administrative expenses (407) (871) — — Fair value of plan assets at end of year $ 218,321 $ 219,971 $ — $ — Funded Status of Plan: Unfunded status $ (12,954) $ (4,819) $ (64,037) $ (52,326) |
Schedule of amounts recognized in the consolidated balance sheets and amounts expected to be recognized from AOCI into the statement of operations in the following year | Defined Benefit Postretirement Non-Qualified All Plans Pension Plans Health Care Benefits Pension Plans Combined September 30, September 30, September 30, September 30, 2022 2023 2022 2023 2022 2023 2022 2023 Accrued pension and postretirement benefits: Current $ — $ — $ (3,276) $ (2,845) $ (95) $ (95) $ (3,371) $ (2,940) Non - (12,954) (4,819) (60,761) (49,481) (435) (397) (74,150) (54,697) Accrued pension and postretirement benefits $ (12,954) $ (4,819) $ (64,037) $ (52,326) $ (530) $ (492) $ (77,521) $ (57,637) Accumulated other comprehensive (income) loss: Net (income) loss 22,496 20,663 (30,807) (42,699) — — (8,311) (22,036) Prior service cost 1,365 1,130 — — — — 1,365 1,130 Total accumulated other comprehensive (income) loss $ 23,861 $ 21,793 $ (30,807) $ (42,699) $ — $ — $ (6,946) $ (20,906) |
Schedule of components of net periodic pension and postretirement benefit cost | Defined Benefit Pension Plans Year Ended September 30, 2021 2022 2023 Service cost $ 5,628 $ 4,728 $ 2,689 Interest cost 7,481 7,936 11,548 Expected return on assets (16,356) (14,818) (14,570) Amortization of prior service cost 239 233 236 Recognized actuarial loss 7,721 — 31 Net periodic cost $ 4,713 $ (1,921) $ (66) Postretirement Health Care Benefits Year Ended September 30, 2021 2022 2023 Service cost $ 1,095 $ 1,825 $ 1,389 Interest cost 2,292 2,234 3,199 Recognized actuarial loss — (240) (2,279) Net periodic cost $ 3,387 $ 3,819 $ 2,309 |
Schedule of assumptions used to determine actuarial present value of the projected pension benefit obligation and postretirement health care benefit obligation for the plans | September 30, September 30, 2022 2023 Discount rate (postretirement health care) (1) 5.13 % 5.63 % Discount rate (U.S. pension plan) (1) 5.13 % 5.63 % Discount rate (U.K. pension plan) 5.90 % 5.70 % Rate of compensation increase (U.S. pension plan only) 2.50 % 3.50 % |
Schedule of assumptions used to determine net periodic pension and postretirement health care benefit costs for the plans | Defined Benefit Pension and Postretirement Health Care Plans Year Ended September 30, 2021 2022 2023 Discount rate (postretirement health care plan) 2.50 % 2.75 % 5.13 % Discount rate (U.S. pension plan) 2.25 % 2.63 % 5.13 % Discount rate (U.K. pension plan) 1.50 % 2.00 % 5.90 % Expected return on plan assets (U.S. pension plan) 7.25 % 5.25 % 6.88 % Expected return on plan assets (U.K. pension plan) 2.00 % 3.00 % 5.50 % Rate of compensation increase (U.S. pension plan only) 2.50 % 2.50 % 2.50 % |
Schedule of plan assets by level within the fair value hierarchy | September 30, 2022 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. corporate and government bonds $ 15,926 $ 158,582 $ — $ 174,508 U.S. common stock mutual funds — $ — $ 16,471 16,471 Common /collective funds Bonds — — — — Short-term money market — — — — U.S. common stock — — 6,847 6,847 International equity — — 5,390 5,390 Total U.S. $ 15,926 $ 158,582 $ 28,708 $ 203,216 U.K. Plan Assets: Equities $ — $ — $ 5,135 $ 5,135 Bonds — — 8,006 8,006 Other — — 1,964 1,964 Total U.K. $ — $ — $ 15,105 $ 15,105 Total pension plan assets $ 15,926 $ 158,582 $ 43,813 $ 218,321 September 30, 2023 Level 1 Active Level 2 Markets for Other Identical Observable Assets Inputs NAV Total U.S. Pension Plan Assets: U.S. corporate and government bonds $ 26,647 $ 154,686 $ — $ 181,333 U.S. common stock mutual funds — — 17,900 17,900 International equity — — 4,538 4,538 Total U.S. $ 26,647 $ 154,686 $ 22,438 $ 203,771 U.K. Plan Assets: Bonds — — 10,692 10,692 Short-term money market 5,508 — — 5,508 Total U.K. $ 5,508 $ — $ 10,692 $ 16,200 Total pension plan assets $ 32,155 $ 154,686 $ 33,130 $ 219,971 |
Schedule of asset classes as a percent of total assets | Asset Class Target (1) Equity 11 % Fixed Income 89 % Real Estate and Other — % (1) The Company adjusts the target allocation based on the fair value of pension assets as a percentage of the projected pension obligation. |
Schedule of expected benefit payments | Postretirement Fiscal Year Ending September 30 Pension Health Care 2024 $ 16,001 $ 3,988 2025 16,308 4,021 2026 16,623 4,124 2027 16,953 4,063 2028 17,002 4,101 2029 - 2033 (in total) 86,225 21,333 |
Legal, Environmental and Othe_2
Legal, Environmental and Other Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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, 2025 $ 62 2026 60 2027 63 2028 65 2029 and thereafter 16 $ 266 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Stockholder's Equity | |
Schedule of treasury stock activity | Year Ended Year Ended Year Ended September 30, September 30, September 30, 2021 2022 2023 Number of shares at beginning of year 58,909 195,638 375,032 Repurchases of common stock to satisfy employee payroll taxes 23,751 37,002 17,708 Repurchases of common stock from share repurchase plan 112,978 142,392 — Number of shares at end of year 195,638 375,032 392,740 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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, 2022 96,536 $ 33.23 Granted 30,159 $ 49.23 Forfeited / Canceled (510) $ 30.11 Vested (36,342) $ 36.82 Unvested at September 30, 2023 89,843 $ 37.17 Expected to vest 89,843 $ 37.17 |
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, 2022 3,801 $ 44.07 Granted 8,974 $ 49.19 Vested and deferred (3,801) $ 44.07 Unvested and deferred at September 30, 2023 8,974 $ 49.19 Vested and deferred at September 30, 2023 21,351 $ 31.32 |
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, 2022 76,420 $ 41.37 Granted 19,555 $ 69.39 Vested (25,226) $ 42.83 Forfeited / Canceled — $ 0.00 Unvested at September 30, 2023 70,749 $ 48.60 |
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 June 16, 2023 $ 20.82 1.70 % 3.91 % 48 % 5 years February 7, 2023 $ 22.70 1.65 % 3.81 % 51 % 5 years November 22, 2022 $ 20.52 1.80 % 3.97 % 51 % 5 years November 23, 2021 $ 15.02 2.00 % 1.22 % 45 % 5 years November 24, 2020 $ 5.91 3.89 % 0.39 % 43 % 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, 2022 697,220 $ 34.75 Granted 32,985 $ 49.08 Exercised (218,576) $ 37.90 Forfeited/Surrendered (13,081) $ 47.96 Outstanding at September 30, 2023 498,548 $ 6,346 $ 33.96 6.26 yrs. Vested or expected to vest 479,274 $ 6,046 $ 34.07 6.20 yrs. Exercisable at September 30, 2023 399,672 $ 5,313 $ 33.23 5.80 yrs. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting | |
Schedule of revenues from external customers attributable to geographic areas | Year Ended September 30, 2021 2022 2023 Net Revenue by Geography: United States $ 179,127 $ 278,473 $ 344,381 Europe 85,555 116,599 135,403 China 30,668 33,910 27,097 Other 42,311 61,479 83,075 Net Revenues $ 337,661 $ 490,461 $ 589,956 Net Revenue by Product Group: High-temperature resistant alloys $ 253,246 $ 387,464 $ 501,463 Corrosive-resistant alloys 84,415 102,997 88,493 Net revenues $ 337,661 $ 490,461 $ 589,956 |
Schedule of long-lived assets by geographic areas | September 30, 2022 2023 Long-lived Assets by Geography United States $ 135,698 $ 134,596 Europe 6,921 7,799 China 153 145 Total long-lived assets $ 142,772 $ 142,540 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Valuation and Qualifying Accounts | |
Schedule of changes in valuation and qualifying accounts | Balance at Charges Balance at Beginning (credits) to End of of Period Expense Deductions (1) Period Allowance for credit losses: September 30, 2021 545 74 (66) 553 September 30, 2022 553 171 (296) 428 September 30, 2023 428 286 (255) 459 (1) Uncollectible accounts written off net of recoveries . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements | |
Schedule of company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis | September 30, 2022 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ 15,926 $ 158,582 $ — $ 43,813 $ 218,321 Total fair value $ 15,926 $ 158,582 $ — $ 43,813 $ 218,321 September 30, 2023 Fair Value Measurements at Reporting Date Using: Level 1 Level 2 Level 3 NAV Total Assets: Pension plan assets $ 32,155 $ 154,686 $ — $ 33,130 $ 219,971 Total fair value $ 32,155 $ 154,686 $ — $ 33,130 $ 219,971 |
Comprehensive Income (Loss) a_2
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Schedule of comprehensive income (loss) | Year Ended September 30, 2021 2022 2023 Pre-tax Tax Net Pre-tax Tax Net Pre-tax Tax Net Net income (loss) $ (8,683) $ 45,087 $ 41,975 Other comprehensive income (loss): Pension and postretirement: Net gain (loss) arising during period $ 68,941 (16,044) 52,897 $ 16,991 (3,924) 13,067 $ 16,008 (3,700) 12,308 Amortization of prior service cost 228 (52) 176 239 (56) 183 233 (55) 178 Amortization of (gain) loss 7,735 (1,802) 5,933 (240) 56 (184) (2,279) 529 (1,750) Foreign currency translation adjustment 3,254 — 3,254 (11,817) — (11,817) 6,729 — 6,729 Other comprehensive income (loss) $ 80,158 $ (17,898) 62,260 $ 5,173 $ (3,924) 1,249 $ 20,691 $ (3,226) 17,465 Total comprehensive income (loss) $ 53,577 $ 46,336 $ 59,440 |
Schedule of accumulated other comprehensive income (loss) | Year Ended September 30, 2022 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 (2,557) 15,624 (11,817) 1,250 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 239 — — 239 Actuarial losses (1) — (240) — (240) Tax benefit (56) 56 — — Net current-period other comprehensive income (loss) (2,374) 15,440 (11,817) 1,249 Accumulated other comprehensive income (loss) as of September 30, 2022 $ (17,165) $ 24,457 $ (18,384) $ (11,092) Year Ended September 30, 2023 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2022 $ (17,165) $ 24,457 $ (18,384) $ (11,092) Other comprehensive income (loss) before reclassifications 1,401 10,907 6,729 19,037 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 233 — — 233 Actuarial losses (1) — (2,279) — (2,279) Tax benefit (55) 529 — 474 Net current-period other comprehensive income (loss) 1,579 9,157 6,729 17,465 Accumulated other comprehensive income (loss) as of September 30, 2023 $ (15,586) $ 33,614 $ (11,655) $ 6,373 (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Long-term Obligations (Tables)
Long-term Obligations (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Long-term Obligations | |
Schedule of long-term obligations | September 30, September 30, 2022 2023 Finance lease obligations $ 7,384 $ 7,118 Environmental post-closure monitoring and maintenance activities 407 355 Long-term disability 210 189 Deferred dividends 199 198 Less amounts due within one year (352) (412) Long-term obligations (less current portion) $ 7,848 $ 7,448 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule of lease costs | September 30, September 30, 2022 2023 Finance lease cost: Amortization of ROU asset $ 430 $ 430 Interest on lease liabilities 784 759 Total finance lease cost $ 1,214 $ 1,189 Operating lease cost $ 1,100 $ 1,173 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases 784 759 Operating cash flows from operating leases 1,100 1,173 Financing cash flows from finance leases 228 265 Total cash paid for amounts included in measurement of lease liabilities $ 2,112 $ 2,197 |
Schedule of Balance Sheet operating and financing lease information | The following table sets forth the Company’s ROU assets and lease liabilities as of September 30, 2022 and 2023. September 30, September 30, 2022 2023 Finance lease assets (included in Property, plant and equipment, net) $ 5,643 $ 5,230 Operating ROU lease assets (included in Other assets) $ 1,085 $ 1,067 Finance lease liabilities Accrued expenses $ 265 $ 302 Long-term obligations (less current portion) 7,119 6,816 Total Finance lease liabilities $ 7,384 $ 7,118 Operating lease liabilities $ 1,085 $ 1,067 Operating lease payments due within one year are recorded in Accrued expenses on the Consolidated Balance Sheets. September 30, September 30, 2022 2023 Weighted average lease term (Years) Finance leases 13.1 12.1 Operating leases 3.0 2.0 Weighted average discount rate Finance leases 10.32 % 10.32 % Operating leases 5.25 % 5.84 % |
Schedule of financing and operating lease maturity | The following is a table of future minimum lease payments during each fiscal year under operating and finance leases and the present value of the net minimum lease payments as of September 30, 2023. Finance Operating Future minimum lease payments Leases Leases 2024 $ 1,032 $ 718 2025 1,037 276 2026 1,044 126 2027 1,049 62 2028 1,050 — Thereafter 7,357 — Total minimum lease payments 12,569 1,182 Less: amount representing interest (5,451) (115) Present value of net minimum lease payments $ 7,118 $ 1,067 |
Foreign Currency Forward Cont_2
Foreign Currency Forward Contracts (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Foreign Currency Forward Contracts | |
Schedule of foreign exchange hedging gains and losses | Year Ended Year Ended Year Ended September 30, September 30, September 30, 2021 2022 2023 Foreign currency transactional gain (loss) $ (42) $ 4,393 $ (2,538) Foreign exchange forward contract gain (loss) (532) (6,066) 1,403 Net gain (loss) included in selling, general and administrative expense $ (574) $ (1,673) $ (1,135) |
Background and Organization (De
Background and Organization (Details) - Revenue Benchmark - Product Concentration | 12 Months Ended |
Sep. 30, 2023 | |
Sheet, Coil and Plate Forms | |
Concentration disclosure | |
Concentration percentage | 64% |
Seamless and Welded Tubulars | |
Concentration disclosure | |
Concentration percentage | 12% |
Wire Form | |
Concentration disclosure | |
Concentration percentage | 6% |
Slab, Bar and Billet Form | |
Concentration disclosure | |
Concentration percentage | 18% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) | Nov. 17, 2006 |
Conversion Services Arrangement | |
Revenue Recognition | |
Term of agreement to provide conversion services | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Intangible Assets | |||
Useful life | 15 years | ||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Change to goodwill | 0 | 0 | 0 |
Amortization of customer relationships, patents, non-competes and other intangibles | 579 | 780 | $ 467 |
Total intangible assets, Gross Amount | 6,980 | 7,000 | |
Finite-lived intangible assets, Accumulated Amortization | (1,325) | (2,091) | |
Carrying Amount | 5,655 | 4,909 | |
Customer relationships | |||
Intangible Assets | |||
Finite-lived intangible assets Gross Amount | 2,100 | 2,100 | |
Finite-lived intangible assets, Accumulated Amortization | (1,257) | (1,128) | |
Finite-lived intangible assets, Carrying Amount | 843 | 972 | |
Other Intangible Assets | |||
Intangible Assets | |||
Finite-lived intangible assets Gross Amount | 1,080 | 1,100 | |
Finite-lived intangible assets, Accumulated Amortization | (68) | (963) | |
Finite-lived intangible assets, Carrying Amount | 1,012 | 137 | |
Trademarks | |||
Intangible Assets | |||
Indefinite-lived intangible assets | $ 3,800 | 3,800 | |
Finite-lived intangible assets, Carrying Amount | $ 3,800 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Amortization Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Estimate of Aggregate Amortization Expense: | |
2024 | $ 396 |
2025 | 393 |
2026 | 390 |
2027 | 318 |
2028 | 113 |
Thereafter | $ 245 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment | |||
Impairment recognized | $ 0 | $ 0 | $ 0 |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment | |||
Estimated economic useful lives | 40 years | ||
Machinery and Equipment [Member] | Minimum | |||
Property, Plant and Equipment | |||
Estimated economic useful lives | 5 years | ||
Machinery and Equipment [Member] | Maximum | |||
Property, Plant and Equipment | |||
Estimated economic useful lives | 14 years | ||
Land Improvements [Member] | |||
Property, Plant and Equipment | |||
Estimated economic useful lives | 20 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Pension and Postretirement Benefits (Details) $ in Thousands | Jan. 01, 2007 USD ($) |
Defined Benefit Other Postretirement Benefit Plan | |
Pension and Postretirement Benefits | |
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Research and Technical Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Research and Technical Costs | |||
Research and technical expense | $ 4,126 | $ 3,822 | $ 3,403 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Financial Instruments (Details) | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Financial Instruments | |||
Foreign currency exchange contracts outstanding | 0 | 0 | |
Credit losses | $ 286,000 | $ 171,000 | $ 74,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: Basic and Diluted | |||
Net income (loss) | $ 41,975 | $ 45,087 | $ (8,683) |
Dividends paid ($0.88 per share for the year ended September 30, 2021, 2022 and 2023, respectively) | (11,190) | (11,062) | (11,245) |
Undistributed income (loss) - Basic | 30,785 | 34,025 | (19,928) |
Undistributed income (loss) - Diluted | $ 30,785 | $ 34,025 | $ (19,928) |
Percentage allocated to common shares - Basic | 99.20% | 99% | 100% |
Percentage allocated to common shares - Diluted | 99.20% | 99% | 100% |
Undistributed income (loss) allocated to common shares - Basic | $ 30,544 | $ 33,699 | $ (19,928) |
Undistributed income (loss) allocated to common shares - Diluted | 30,544 | 33,699 | (19,928) |
Dividends paid on common shares outstanding | 11,103 | 10,955 | 11,098 |
Net income (loss) available to common shares - Basic | 41,647 | 44,654 | (8,830) |
Net income (loss) available to common shares - Diluted | $ 41,647 | $ 44,654 | $ (8,830) |
Denominator: Basic and Diluted | |||
Weighted average shares outstanding - Basic (in shares) | 12,566,843 | 12,346,025 | 12,499,609 |
Adjustment for dilutive potential common shares (in shares) | 213,435 | 159,475 | |
Weighted average shares outstanding - Diluted (in shares) | 12,780,278 | 12,505,500 | 12,499,609 |
Basic net income (loss) per share (in dollars per share) | $ 3.31 | $ 3.62 | $ (0.71) |
Diluted net income (loss) per share (in dollars per share) | $ 3.26 | $ 3.57 | $ (0.71) |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Anti-dilutive Securities (Details) - shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Stock Option [Member] | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 206,096 | 261,228 | 385,548 |
Restricted Stock | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 41,809 | 50,415 | 165,794 |
Deferred Restricted Stock | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 6,052 | 2,791 | 30,529 |
Performance Shares | |||
Antidilutive securities | |||
Number of shares excluded as their effect would be anti-dilutive | 41,210 | 46,693 | 76,266 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Weighted Average Common Shares (Details) - shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Percentage allocated to common shares - weighted average | |||
Weighted average shares outstanding - Basic (in shares) | 12,566,843 | 12,346,025 | 12,499,609 |
Unvested participating shares | 98,992 | 119,549 | |
Total | 12,665,835 | 12,465,574 | 12,499,609 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Other Information (Details) $ in Thousands, lb in Millions | 12 Months Ended | ||
Nov. 17, 2006 USD ($) lb | Sep. 30, 2023 USD ($) lb | Sep. 30, 2022 USD ($) | |
Revenues from Contracts with Customers | |||
Accounts receivable, gross | $ 106,751 | $ 95,340 | |
Accounts receivable, allowance for doubtful accounts | 459 | 428 | |
Contract liabilities | $ 7,829 | 10,329 | |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation | true | ||
Estimated product returns | $ 810 | $ 700 | |
Conversion Services Arrangement | |||
Revenues from Contracts with Customers | |||
Revenue recognition period | 20 years | ||
Advance payments received | $ 50,000 | ||
Conversion Services Arrangement | Maximum | |||
Revenues from Contracts with Customers | |||
Annual volume of titanium metal to be converted (in pounds) | lb | 10 | 10 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from Contracts with Customers | |||
Net revenues | $ 589,956 | $ 490,461 | $ 337,661 |
Product | |||
Revenue from Contracts with Customers | |||
Net revenues | 563,428 | 467,250 | 316,081 |
Aerospace | |||
Revenue from Contracts with Customers | |||
Net revenues | 290,391 | 230,001 | 128,072 |
Chemical processing | |||
Revenue from Contracts with Customers | |||
Net revenues | 92,019 | 91,665 | 63,147 |
Industrial gas turbine | |||
Revenue from Contracts with Customers | |||
Net revenues | 120,731 | 91,878 | 66,772 |
Other markets | |||
Revenue from Contracts with Customers | |||
Net revenues | 60,287 | 53,706 | 58,090 |
Others | |||
Revenue from Contracts with Customers | |||
Net revenues | $ 26,528 | $ 23,211 | $ 21,580 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Inventories | ||
Raw Materials | $ 42,602 | $ 31,887 |
Work-in-process | 229,120 | 226,572 |
Finished Goods | 140,756 | 97,657 |
Other | 1,599 | 1,440 |
Total | $ 414,077 | $ 357,556 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) $ in Thousands | Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) item |
Property, plant and equipment | ||
Gross amount | $ 395,729 | $ 378,627 |
Less accumulated depreciation | (253,189) | (235,855) |
Net amount | 142,540 | 142,772 |
Finance lease assets | 5,230 | 5,643 |
Shanghai | ||
Property, plant and equipment | ||
Finance lease assets | 131 | 132 |
La Porte | ||
Property, plant and equipment | ||
Finance lease assets | $ 5,230 | $ 5,643 |
Number of leased buildings | item | 2 | 2 |
Land and Land Improvements [Member] | ||
Property, plant and equipment | ||
Gross amount | $ 10,418 | $ 10,158 |
Building and Building Improvements [Member] | ||
Property, plant and equipment | ||
Gross amount | 46,931 | 45,872 |
Machinery and Equipment [Member] | ||
Property, plant and equipment | ||
Gross amount | 321,676 | 313,841 |
Construction in Progress [Member] | ||
Property, plant and equipment | ||
Gross amount | $ 16,704 | $ 8,756 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Accrued Expenses | ||
Employee compensation | $ 8,329 | $ 7,734 |
Taxes, other than income taxes | 2,900 | 2,897 |
Accrued product returns | 810 | 700 |
Utilities | 1,171 | 1,383 |
Professional fees | 428 | 966 |
Finance lease obligation, current | 302 | 265 |
Management incentive compensation | 2,289 | 3,609 |
Other | 1,972 | 1,740 |
Total accrued expenses | $ 18,201 | $ 19,294 |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes | |||
Statutory federal tax rate (as a percent) | 21% | 21% | 21% |
Income (loss) before income taxes: | |||
U.S. | $ 37,538 | $ 38,864 | $ (11,417) |
Foreign | 14,364 | 18,750 | 1,634 |
Income (loss) before income taxes | 51,902 | 57,614 | (9,783) |
Current: | |||
U.S. Federal | 7,366 | 2,031 | 741 |
Foreign | 2,741 | 3,302 | 349 |
State | 490 | 639 | 228 |
Total | 10,597 | 5,972 | 1,318 |
Deferred: | |||
U.S. Federal | (1,509) | 5,931 | (2,986) |
Foreign | 459 | 120 | 470 |
State | 25 | (300) | (317) |
Valuation allowance | 355 | 804 | 415 |
Total | (670) | 6,555 | (2,418) |
Total provision for (benefit from) income taxes | $ 9,927 | $ 12,527 | $ (1,100) |
Income Taxes - Rate (Details)
Income Taxes - Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Effective income tax rate reconciliation | |||
Statutory federal tax rate (as a percent) | 21% | 21% | 21% |
Tax provision for income taxes at the statutory rate | $ 10,899 | $ 12,099 | $ (2,054) |
Foreign tax rate differentials | 102 | (307) | (59) |
Provision for state taxes, net of federal taxes | 822 | 974 | (84) |
U.S. tax on distributed and undistributed earnings of foreign subsidiaries | 54 | 984 | 198 |
Foreign derived intangible income deduction | (693) | (966) | |
Tax credits | (724) | (702) | (691) |
Federal and state tax rate change impact on deferred tax asset | 81 | (206) | 790 |
Change in valuation allowance | 355 | 804 | 415 |
Stock compensation | 46 | 191 | 138 |
Other, net | (1,015) | (344) | 247 |
Total provision for (benefit from) income taxes | $ 9,927 | $ 12,527 | $ (1,100) |
Effective tax rate (as a percent) | 19.10% | 21.70% | 11.20% |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Deferred tax assets: | ||
Pension and postretirement benefits | $ 12,045 | $ 16,802 |
Inventories | 4,341 | 3,225 |
Accrued compensation and benefits | 1,451 | 2,096 |
Accrued expenses and other | 2,526 | 2,600 |
Tax attributes | 5,596 | 5,625 |
Other assets | 1,077 | 250 |
Valuation allowance | (5,052) | (4,695) |
Total deferred tax assets | 23,785 | 28,299 |
Deferred tax liabilities: | ||
Property, plant and equipment, net | (22,056) | (24,081) |
Intangible and other | (1,511) | (1,414) |
Other liabilities | (296) | (227) |
Total deferred tax liabilities | (23,863) | (25,722) |
Net deferred tax assets (liabilities) | 2,577 | |
Net deferred tax assets (liabilities) | (78) | |
Conversion Services Arrangement | ||
Deferred tax assets: | ||
TIMET Agreement | $ 1,801 | $ 2,396 |
Income Taxes - NOL (Details)
Income Taxes - NOL (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Net operating loss carryforwards | ||
Tax credit | $ 4,607,000 | |
Undistributed losses of foreign subsidiaries | 83,063,000 | |
Undistributed losses of foreign subsidiaries taxes | 0 | |
Uncertain tax positions | 0 | $ 0 |
State | ||
Net operating loss carryforwards | ||
Net operating loss carryforwards | 7,254,000 | |
Tax credit | 5,832,000 | |
Foreign | ||
Net operating loss carryforwards | ||
Net operating loss carryforwards | 1,984,000 | |
Net operating loss carryforward valuation allowance | $ 445,000 |
Debt - US Revolving Credit Faci
Debt - US Revolving Credit Facility (Details) - USD ($) $ in Thousands | Jun. 20, 2023 | Sep. 30, 2023 | Sep. 30, 2022 |
Debt | |||
Revolving credit facilities - Long-term | $ 114,843 | $ 74,721 | |
Credit Agreement | |||
Debt | |||
Maximum borrowing capacity | $ 200,000 | ||
Commitment fee (as a percent) | 0.375% | ||
Excess availability, percentage, maximum | 15% | ||
Excess availability, amount, maximum | $ 25,000 | ||
Maximum quarterly amount of dividends which the Company may pay if in compliance with financial covenants | $ 3,500 | ||
Percentage of equity interest in direct foreign subsidiaries pledged as collateral for borrowings | 100% | ||
Credit Agreement | Minimum | Prime rate | |||
Debt | |||
Basis spread on variable rate (as a percent) | 1% | ||
Credit Agreement | Minimum | SOFR | |||
Debt | |||
Basis spread on variable rate (as a percent) | 2% | ||
Credit Agreement | Maximum | Prime rate | |||
Debt | |||
Basis spread on variable rate (as a percent) | 1.50% | ||
Credit Agreement | Maximum | SOFR | |||
Debt | |||
Basis spread on variable rate (as a percent) | 2.50% | ||
Letter of Credit [Member] | |||
Debt | |||
Fronting fee (as a percent) | 0.125% | ||
Domestic Line of Credit [Member] | |||
Debt | |||
Outstanding balance | $ 114,843 |
Debt - Overdraft Facilities (De
Debt - Overdraft Facilities (Details) - Sep. 30, 2023 € in Thousands, £ in Thousands, SFr in Thousands, $ in Thousands | GBP (£) | USD ($) | EUR (€) | CHF (SFr) |
Haynes International Ltd. overdraft facility | ||||
Debt and long-term obligations | ||||
Maximum borrowing capacity | £ 1,333 | $ 1,633 | ||
Available borrowing capacity | £ 1,333 | 1,633 | ||
Haynes International S.A.R.L. overdraft facility | ||||
Debt and long-term obligations | ||||
Maximum borrowing capacity | 254 | € 240 | ||
Available borrowing capacity | 254 | € 240 | ||
Haynes International AG overdraft facility | ||||
Debt and long-term obligations | ||||
Maximum borrowing capacity | 1,315 | SFr 1,200 | ||
Available borrowing capacity | $ 1,315 | SFr 1,200 |
Pension Plan and Retirement B_3
Pension Plan and Retirement Benefits - Defined Contribution Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Contribution 401K Plan [Member] | |||||
Defined Contribution Plans | |||||
Expenses associated with plan | $ 2,352 | $ 2,016 | $ 1,748 | ||
Defined Contribution 401K Plan [Member] | Employees with exceptions | |||||
Defined Contribution Plans | |||||
Percentage employer matches of the employee's percentage contribution matched. | 50% | ||||
Defined Contribution 401K Plan [Member] | Employees with exceptions | Maximum | |||||
Defined Contribution Plans | |||||
Percentage of employees' gross pay for which the employer contributes a matching contribution | 3% | ||||
Defined Contribution 401K Plan [Member] | Certain employees not eligible for U.S. pension plan | |||||
Defined Contribution Plans | |||||
Percentage employer matches of the employee's percentage contribution matched. | 60% | 60% | |||
Defined Contribution 401K Plan [Member] | Certain employees not eligible for U.S. pension plan | Maximum | |||||
Defined Contribution Plans | |||||
Percentage of employees' gross pay for which the employer contributes a matching contribution | 8% | 6% | |||
Profit Sharing Plans [Member] | |||||
Defined Contribution Plans | |||||
Expenses associated with plan | $ 0 | $ 0 | $ 0 |
Pension Plan and Retirement B_4
Pension Plan and Retirement Benefits - Defined Benefit Plans - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2007 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Plan and Retirement Benefits | ||||
Accrued pension and postretirement benefits | $ 57,637 | $ 77,521 | ||
Defined Benefit Pension Plan | ||||
Pension Plan and Retirement Benefits | ||||
Pension plan expense | (66) | (1,921) | $ 4,713 | |
Accrued pension and postretirement benefits | 4,819 | 12,954 | ||
Contribution to plan | 6,000 | 6,000 | ||
Projected benefit obligation | 224,790 | 231,275 | 315,466 | |
Pension Plans Defined Benefit Us [Member] | ||||
Pension Plan and Retirement Benefits | ||||
Contribution to plan | 6,000 | 6,000 | 21,000 | |
Pension Plans Defined Benefit Non Us [Member] | ||||
Pension Plan and Retirement Benefits | ||||
Contribution to plan | 0 | 0 | 0 | |
Non Qualified Pension Plans Defined Benefit [Member] | ||||
Pension Plan and Retirement Benefits | ||||
Pension plan expense | 57 | 3 | 37 | |
Accrued pension and postretirement benefits | 492 | 530 | ||
Defined Benefit Other Postretirement Benefit Plan | ||||
Pension Plan and Retirement Benefits | ||||
Pension plan expense | 2,309 | 3,819 | 3,387 | |
Accrued pension and postretirement benefits | 52,326 | 64,037 | ||
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 | |||
Contribution to plan | 2,128 | 2,643 | ||
Projected benefit obligation | 52,326 | $ 64,037 | $ 82,964 | |
UNITED STATES | ||||
Pension Plan and Retirement Benefits | ||||
Projected benefit obligation | 217,393 | |||
Pension Plans Defined Benefit Non US | ||||
Pension Plan and Retirement Benefits | ||||
Projected benefit obligation | $ 7,397 |
Pension Plan and Retirement B_5
Pension Plan and Retirement Benefits - Defined Benefit Plans - Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Change in Benefit Obligation: | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Retirement Benefit Expense | Nonoperating Retirement Benefit Expense | |
Defined Benefit Pension Plan | |||
Change in Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 231,275 | $ 315,466 | |
Service cost | 2,689 | 4,728 | $ 5,628 |
Interest cost | 11,548 | 7,936 | 7,481 |
Actuarial gains (losses) | (5,236) | (81,225) | |
Benefits paid | (14,615) | (15,223) | |
Administrative expenses | (871) | (407) | |
Projected benefit obligation at end of year | 224,790 | 231,275 | 315,466 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 218,321 | 297,703 | |
Actual return on assets | 11,136 | (69,752) | |
Contribution to plan | 6,000 | 6,000 | |
Benefits paid | (14,615) | (15,223) | |
Administrative expenses | (871) | (407) | |
Fair value of plan assets at end of year | 219,971 | 218,321 | 297,703 |
Funded Status of Plan: | |||
Unfunded status | (4,819) | (12,954) | |
Defined Benefit Other Postretirement Benefit Plan | |||
Change in Benefit Obligation: | |||
Projected benefit obligation at beginning of year | 64,037 | 82,964 | |
Service cost | 1,389 | 1,825 | 1,095 |
Interest cost | 3,199 | 2,234 | 2,292 |
Actuarial gains (losses) | (14,171) | (20,343) | |
Benefits paid | (2,128) | (2,643) | |
Projected benefit obligation at end of year | 52,326 | 64,037 | $ 82,964 |
Change in Plan Assets: | |||
Contribution to plan | 2,128 | 2,643 | |
Benefits paid | (2,128) | (2,643) | |
Funded Status of Plan: | |||
Unfunded status | $ (52,326) | $ (64,037) |
Pension Plan and Retirement B_6
Pension Plan and Retirement Benefits - Defined Benefit Plans - Recognized in BS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Accrued pension and postretirement benefits: | ||
Current | $ (2,940) | $ (3,371) |
Non-current | (54,697) | (74,150) |
Accrued pension and postretirement benefits | (57,637) | (77,521) |
Accumulated other comprehensive (income) loss: | ||
Net (income) loss | 22,036 | 8,311 |
Prior service cost | 1,130 | 1,365 |
Total accumulated other comprehensive (income) loss | (20,906) | (6,946) |
Accumulated benefit obligation | 216,287 | 227,915 |
Defined Benefit Pension Plan | ||
Accrued pension and postretirement benefits: | ||
Non-current | (4,819) | (12,954) |
Accrued pension and postretirement benefits | (4,819) | (12,954) |
Accumulated other comprehensive (income) loss: | ||
Net (income) loss | (20,663) | (22,496) |
Prior service cost | 1,130 | 1,365 |
Total accumulated other comprehensive (income) loss | 21,793 | 23,861 |
Defined Benefit Pension Plan | Other assets | ||
Accrued pension and postretirement benefits: | ||
Noncurrent assets | 8,803 | 7,702 |
Non-current | (13,622) | (20,655) |
Defined Benefit Other Postretirement Benefit Plan | ||
Accrued pension and postretirement benefits: | ||
Current | (2,845) | (3,276) |
Non-current | (49,481) | (60,761) |
Accrued pension and postretirement benefits | (52,326) | (64,037) |
Accumulated other comprehensive (income) loss: | ||
Net (income) loss | 42,699 | 30,807 |
Total accumulated other comprehensive (income) loss | (42,699) | (30,807) |
Non Qualified Pension Plans Defined Benefit [Member] | ||
Accrued pension and postretirement benefits: | ||
Current | (95) | (95) |
Non-current | (397) | (435) |
Accrued pension and postretirement benefits | $ (492) | $ (530) |
Pension Plan and Retirement B_7
Pension Plan and Retirement Benefits - Defined Benefit Plans - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Components of net periodic pension cost and postretirement health care benefit cost | |||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Retirement Benefit Expense | Nonoperating Retirement Benefit Expense | Nonoperating Retirement Benefit Expense |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Retirement Benefit Expense | Nonoperating Retirement Benefit Expense | Nonoperating Retirement Benefit Expense |
Defined Benefit Pension Plan | |||
Components of net periodic pension cost and postretirement health care benefit cost | |||
Service cost | $ 2,689 | $ 4,728 | $ 5,628 |
Interest cost | 11,548 | 7,936 | 7,481 |
Expected return | (14,570) | (14,818) | (16,356) |
Amortization of prior service cost | 236 | 233 | 239 |
Recognized actuarial loss | 31 | 7,721 | |
Net periodic benefit cost | (66) | (1,921) | 4,713 |
Defined Benefit Other Postretirement Benefit Plan | |||
Components of net periodic pension cost and postretirement health care benefit cost | |||
Service cost | 1,389 | 1,825 | 1,095 |
Interest cost | 3,199 | 2,234 | 2,292 |
Recognized actuarial loss | (2,279) | (240) | |
Net periodic benefit cost | $ 2,309 | $ 3,819 | $ 3,387 |
Pension Plan and Retirement B_8
Pension Plan and Retirement Benefits - Benefit Obligation Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jan. 01, 2007 | Sep. 30, 2027 | Sep. 30, 2026 | Sep. 30, 2025 | Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension Plans Defined Benefit Us [Member] | |||||||
Assumptions used to determine benefit obligation | |||||||
Discount rate (as a percent) | 5.63% | 5.13% | |||||
Rate of compensation increase (as a percent) | 3.50% | 2.50% | |||||
Pension Plans Defined Benefit Non Us [Member] | |||||||
Assumptions used to determine benefit obligation | |||||||
Discount rate (as a percent) | 5.70% | 5.90% | |||||
Defined Benefit Other Postretirement Benefit Plan | |||||||
Assumptions relating to health care cost trend rates | |||||||
Annual rate of increase for the costs of covered health care benefits on the basis of age (as a percent) | 5% | 5.50% | 6% | 6.50% | 7% | ||
Effect of one percentage point change in assumed health care cost trend rates | |||||||
Maximum liability related to total retiree health care costs under plan amendment | $ 5,000 | ||||||
Assumptions used to determine benefit obligation | |||||||
Discount rate (as a percent) | 5.63% | 5.13% | |||||
Defined Benefit Other Postretirement Benefit Plan | Minimum | |||||||
Assumptions relating to health care cost trend rates | |||||||
Employee age required to participate in the plan | 65 years | 65 years | |||||
Defined Benefit Other Postretirement Benefit Plan | Maximum | |||||||
Assumptions relating to health care cost trend rates | |||||||
Employee age required to participate in the plan | 65 years | ||||||
Defined Benefit Other Postretirement Benefit Plan | Under Sixty Five Age Group [Member] | |||||||
Assumptions relating to health care cost trend rates | |||||||
Annual rate of increase for the costs of covered health care benefits on the basis of age (as a percent) | 5% | ||||||
Defined Benefit Other Postretirement Benefit Plan | Over Sixty Five Age Group [Member] | |||||||
Assumptions relating to health care cost trend rates | |||||||
Annual rate of increase for the costs of covered health care benefits on the basis of age (as a percent) | 5% |
Pension Plan and Retirement B_9
Pension Plan and Retirement Benefits - Cost Assumptions (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Other Postretirement Benefit Plan | |||
Assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 5.13% | 2.75% | 2.50% |
Pension Plans Defined Benefit Us [Member] | |||
Assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 5.13% | 2.63% | 2.25% |
Expected return on plan assets (as a percent) | 6.88% | 5.25% | 7.25% |
Rate of compensation increase (as a percent) | 2.50% | 2.50% | 2.50% |
Pension Plans Defined Benefit Non Us [Member] | |||
Assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 5.90% | 2% | 1.50% |
Expected return on plan assets (as a percent) | 5.50% | 3% | 2% |
Pension Plan and Retirement _10
Pension Plan and Retirement Benefits - Plan Assets (Details) $ in Thousands | Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) |
Defined Benefit Pension Plan | |||
Asset allocation | |||
Total pension plan assets | $ 219,971 | $ 218,321 | $ 297,703 |
Defined Benefit Pension Plan | Fair Value, Inputs, Level 1 [Member] | |||
Asset allocation | |||
Total pension plan assets | 32,155 | 15,926 | |
Defined Benefit Pension Plan | Fair Value, Inputs, Level 2 [Member] | |||
Asset allocation | |||
Total pension plan assets | 154,686 | 158,582 | |
Defined Benefit Pension Plan | NAV | |||
Asset allocation | |||
Total pension plan assets | $ 33,130 | 43,813 | |
Pension Plans Defined Benefit Us [Member] | |||
Defined Benefit Plans | |||
Number of issuances of fixed income securities | item | 301 | ||
Number of issuers of fixed income securities | item | 238 | ||
Asset allocation | |||
Total pension plan assets | $ 203,771 | 203,216 | |
Pension Plans Defined Benefit Us [Member] | U.S. corporate and government bonds | |||
Asset allocation | |||
Total pension plan assets | 181,333 | 174,508 | |
Pension Plans Defined Benefit Us [Member] | Mutual Fund [Member] | |||
Asset allocation | |||
Total pension plan assets | 16,471 | ||
Pension Plans Defined Benefit Us [Member] | U.S. common stock | |||
Asset allocation | |||
Total pension plan assets | 17,900 | 6,847 | |
Pension Plans Defined Benefit Us [Member] | International equity | |||
Asset allocation | |||
Total pension plan assets | 4,538 | 5,390 | |
Pension Plans Defined Benefit Us [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Asset allocation | |||
Total pension plan assets | 26,647 | 15,926 | |
Pension Plans Defined Benefit Us [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. corporate and government bonds | |||
Asset allocation | |||
Total pension plan assets | 26,647 | 15,926 | |
Pension Plans Defined Benefit Us [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Asset allocation | |||
Total pension plan assets | 154,686 | 158,582 | |
Pension Plans Defined Benefit Us [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. corporate and government bonds | |||
Asset allocation | |||
Total pension plan assets | 154,686 | 158,582 | |
Pension Plans Defined Benefit Us [Member] | NAV | |||
Asset allocation | |||
Total pension plan assets | 22,438 | 28,708 | |
Pension Plans Defined Benefit Us [Member] | NAV | Mutual Fund [Member] | |||
Asset allocation | |||
Total pension plan assets | 16,471 | ||
Pension Plans Defined Benefit Us [Member] | NAV | U.S. common stock | |||
Asset allocation | |||
Total pension plan assets | 17,900 | 6,847 | |
Pension Plans Defined Benefit Us [Member] | NAV | International equity | |||
Asset allocation | |||
Total pension plan assets | 4,538 | 5,390 | |
Pension Plans Defined Benefit Non Us [Member] | |||
Asset allocation | |||
Total pension plan assets | 16,200 | 15,105 | |
Pension Plans Defined Benefit Non Us [Member] | Bonds [Member] | |||
Asset allocation | |||
Total pension plan assets | 10,692 | 8,006 | |
Pension Plans Defined Benefit Non Us [Member] | Money Market Funds [Member] | |||
Asset allocation | |||
Total pension plan assets | 5,508 | ||
Pension Plans Defined Benefit Non Us [Member] | Equity | |||
Asset allocation | |||
Total pension plan assets | 5,135 | ||
Pension Plans Defined Benefit Non Us [Member] | Other | |||
Asset allocation | |||
Total pension plan assets | 1,964 | ||
Pension Plans Defined Benefit Non Us [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Asset allocation | |||
Total pension plan assets | 5,508 | ||
Pension Plans Defined Benefit Non Us [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | |||
Asset allocation | |||
Total pension plan assets | 5,508 | ||
Pension Plans Defined Benefit Non Us [Member] | NAV | |||
Asset allocation | |||
Total pension plan assets | 10,692 | 15,105 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | Bonds [Member] | |||
Asset allocation | |||
Total pension plan assets | $ 10,692 | 8,006 | |
Pension Plans Defined Benefit Non Us [Member] | NAV | Equity | |||
Asset allocation | |||
Total pension plan assets | 5,135 | ||
Pension Plans Defined Benefit Non Us [Member] | NAV | Other | |||
Asset allocation | |||
Total pension plan assets | $ 1,964 |
Pension Plan and Retirement _11
Pension Plan and Retirement Benefits - Investment Strategy (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Plans Defined Benefit Us [Member] | |||
Asset allocation | |||
Plan's return on assets assumption (as a percent) | 6.88% | 5.25% | 7.25% |
Pension Plans Defined Benefit Us [Member] | Equity | |||
Asset allocation | |||
Target plan asset allocation (as a percent) | 11% | ||
Pension Plans Defined Benefit Us [Member] | Fixed Income | |||
Asset allocation | |||
Target plan asset allocation (as a percent) | 89% | ||
Pension Plans Defined Benefit Non Us [Member] | |||
Asset allocation | |||
Plan's return on assets assumption (as a percent) | 5.50% | 3% | 2% |
Pension Plan and Retirement _12
Pension Plan and Retirement Benefits - Expected benefit payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Defined Benefit Pension Plan | |
Expected benefit payments | |
2024 | $ 16,001 |
2025 | 16,308 |
2026 | 16,623 |
2027 | 16,953 |
2028 | 17,002 |
2029-2033 (in total) | 86,225 |
Defined Benefit Other Postretirement Benefit Plan | |
Expected benefit payments | |
2024 | 3,988 |
2025 | 4,021 |
2026 | 4,124 |
2027 | 4,063 |
2028 | 4,101 |
2029-2033 (in total) | $ 21,333 |
Legal, Environmental and Othe_3
Legal, Environmental and Other Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Environmental post-closure monitoring and maintenance activities | $ 355 | $ 407 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Capital Leases Future Minimum Payments And Accrual For Environmental Loss Contingencies Noncurrent | Capital Leases Future Minimum Payments And Accrual For Environmental Loss Contingencies Noncurrent |
Long Term Obligations | ||
Maturities of long-term obligations (discounted) | ||
2025 | $ 62 | |
2026 | 60 | |
2027 | 63 | |
2028 | 65 | |
2029 and thereafter | 16 | |
Long-term obligations (less current portion) | 266 | |
Pending Litigation | ||
Environmental post-closure monitoring and maintenance activities | $ 355 |
Stockholders Equity - Dividends
Stockholders Equity - Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stockholder's Equity | |||
Dividends paid | $ 11,192 | $ 11,072 | $ 11,175 |
Stockholders Equity - Treasury
Stockholders Equity - Treasury stock activity (Details) - shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stockholder's Equity | |||
Number of shares at beginning of year | 375,032 | 195,638 | 58,909 |
Repurchases of common stock to satisfy employee payroll taxes | 17,708 | 37,002 | 23,751 |
Repurchases of common stock from share repurchase plan | 142,392 | 112,978 | |
Number of shares at end of year | 392,740 | 375,032 | 195,638 |
Stockholders Equity - Share Rep
Stockholders Equity - Share Repurchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Jul. 28, 2021 | |
Stockholder's Equity | ||||
Repurchases of common stock from share repurchase plan | 142,392 | 112,978 | ||
Repurchases of common stock to satisfy employee payroll taxes | 17,708 | 37,002 | 23,751 | |
Aggregate purchase price of shares repurchased to satisfy employee payroll taxes | $ 934 | |||
Share Repurchase Plan | ||||
Stockholder's Equity | ||||
Available cash to purchase shares | $ 20,000 | |||
Repurchases of common stock from share repurchase plan | 142,392 | 112,978 | ||
Repurchase of common stock price (dollars per share) | $ 40.09 | $ 37.57 | ||
Aggregate purchase price of shares repurchased from share repurchase plan | $ 5,709 | $ 4,245 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Plan and Performance Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Feb. 25, 2022 | Jan. 24, 2020 | Mar. 01, 2016 | |
Restricted Stock | 2009 Restricted Stock Plan | ||||||
Restricted stock plan activity, number of shares | ||||||
Unvested and deferred at beginning of the period (in shares) | 96,536 | |||||
Granted (in shares) | 30,159 | |||||
Forfeited / Canceled (in shares) | (510) | |||||
Vested and deferred (in shares) | (36,342) | |||||
Unvested and deferred at end of the period (in shares) | 89,843 | 96,536 | ||||
Expected to vest (in shares) | 89,843 | |||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Unvested and deferred at beginning of the period (in dollars per share) | $ 33.23 | |||||
Granted (in dollars per share) | 49.23 | |||||
Forfeited / Canceled (in dollars per share) | 30.11 | |||||
Vested and deferred (in dollars per share) | 36.82 | |||||
Unvested and deferred at end of the period (in dollars per share) | 37.17 | $ 33.23 | ||||
Expected to vest (in dollars per share) | $ 37.17 | |||||
Deferred Restricted Stock plan activity, number of shares | ||||||
Vested (in shares) | 36,342 | |||||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Vested and deferred (in dollars per share) | $ 36.82 | |||||
Restricted stock plan activity, other disclosures | ||||||
Compensation expense | $ 1,257 | $ 1,474 | $ 2,024 | |||
Remaining unrecognized compensation expense | $ 1,451 | |||||
Weighted average period for recognition | 1 year 2 months 1 day | |||||
Restricted Stock | 2009 Restricted Stock Plan | Employee | ||||||
Restricted stock plan activity, other disclosures | ||||||
Repurchase of stock from employees (in shares) | 17,708 | |||||
Average purchase price (in dollars per share) | $ 52.72 | |||||
Restricted Stock | 2016 Restricted Stock Plan | ||||||
Restricted stock plan activity, number of shares | ||||||
Unvested and deferred at beginning of the period (in shares) | 3,801 | |||||
Granted (in shares) | 8,974 | |||||
Vested and deferred (in shares) | (3,801) | |||||
Unvested and deferred at end of the period (in shares) | 8,974 | 3,801 | ||||
Expected to vest (in shares) | 21,351 | |||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Unvested and deferred at beginning of the period (in dollars per share) | $ 44.07 | |||||
Granted (in dollars per share) | 49.19 | |||||
Vested and deferred (in dollars per share) | 44.07 | |||||
Unvested and deferred at end of the period (in dollars per share) | 49.19 | $ 44.07 | ||||
Expected to vest (in dollars per share) | $ 31.32 | |||||
Deferred Restricted Stock plan activity, number of shares | ||||||
Vested (in shares) | 3,801 | |||||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Vested and deferred (in dollars per share) | $ 44.07 | |||||
Restricted stock plan activity, other disclosures | ||||||
Compensation expense | $ 378 | $ 168 | 188 | |||
Remaining unrecognized compensation expense | $ 91 | |||||
Weighted average period for recognition | 2 months 15 days | |||||
Restricted Stock, Restricted Stock Units and Performance Shares | ||||||
Stock-Based Compensation | ||||||
Number of shares authorized under the plan | 275,000 | |||||
Restricted Stock, Restricted Stock Units and Performance Shares | 2020 Incentive Compensation Plan | ||||||
Stock-Based Compensation | ||||||
Number of shares authorized under the plan | 575,000 | 250,000 | ||||
Performance Shares | ||||||
Stock-Based Compensation | ||||||
Award vesting period | 3 years | |||||
Performance Shares | Certain Employees | ||||||
Restricted stock plan activity, number of shares | ||||||
Unvested and deferred at beginning of the period (in shares) | 76,420 | |||||
Granted (in shares) | 19,555 | |||||
Vested and deferred (in shares) | (25,226) | |||||
Unvested and deferred at end of the period (in shares) | 70,749 | 76,420 | ||||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Unvested and deferred at beginning of the period (in dollars per share) | $ 41.37 | |||||
Granted (in dollars per share) | 69.39 | |||||
Forfeited / Canceled (in dollars per share) | 0 | |||||
Vested and deferred (in dollars per share) | 42.83 | |||||
Unvested and deferred at end of the period (in dollars per share) | $ 48.60 | $ 41.37 | ||||
Deferred Restricted Stock plan activity, number of shares | ||||||
Vested (in shares) | 25,226 | |||||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||||||
Vested and deferred (in dollars per share) | $ 42.83 | |||||
Restricted stock plan activity, other disclosures | ||||||
Compensation expense | $ 1,224 | $ 1,021 | $ 1,082 | |||
Remaining unrecognized compensation expense | $ 1,376 | |||||
Weighted average period for recognition | 1 year 6 months 10 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Plans (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Jun. 16, 2023 | Feb. 07, 2023 | Nov. 22, 2022 | Nov. 23, 2021 | Nov. 24, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Feb. 25, 2022 | |
Information relating to stock options | |||||||||
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) | $ 20.82 | $ 22.70 | $ 20.52 | $ 15.02 | $ 5.91 | ||||
Dividend Yield (as a percent) | 1.70% | 1.65% | 1.80% | 2% | 3.89% | ||||
Risk-Free Interest Rate (as a percent) | 3.91% | 3.81% | 3.97% | 1.22% | 0.39% | ||||
Expected Volatility (as a percent) | 48% | 51% | 51% | 45% | 43% | ||||
Expected Life | 5 years | 5 years | 5 years | 5 years | 5 years | ||||
Stock-based employee compensation expense | $ 650 | $ 937 | $ 1,180 | ||||||
Remaining unrecognized compensation expense | $ 686 | ||||||||
Weighted average period for recognition | 1 year 29 days | ||||||||
Activity under stock option plans, number of shares | |||||||||
Outstanding at beginning of the period (in shares) | 697,220 | ||||||||
Granted (in shares) | 32,985 | ||||||||
Exercised (in shares) | (218,576) | ||||||||
Surrendered (in share) | (13,081) | ||||||||
Outstanding at end of the period (in shares) | 498,548 | 697,220 | |||||||
Vested or expected to vest (in shares) | 479,274 | ||||||||
Exercisable at end of period (in shares) | 399,672 | ||||||||
Outstanding at end of period, Aggregate Intrinsic Value | $ 6,346 | ||||||||
Vested or expected to vest, Aggregate Intrinsic Value | 6,046 | ||||||||
Exercisable at end of the period, Aggregate Intrinsic Value | $ 5,313 | ||||||||
Weighted Average Exercise Prices | |||||||||
Outstanding at beginning of the period (in dollars per share) | $ 34.75 | ||||||||
Granted (in dollars per share) | 49.08 | ||||||||
Exercised (in dollars per share) | 37.90 | ||||||||
Surrendered (in dollars per share) | 47.96 | ||||||||
Outstanding at end of period (in dollars per share) | 33.96 | $ 34.75 | |||||||
Vested or expected to vest (in dollars per share) | 34.07 | ||||||||
Exercisable at end of the period (in dollars per share) | $ 33.23 | ||||||||
Outstanding at end of the period, Weighted Average Remaining Contractual Life | 6 years 3 months 3 days | ||||||||
Vested or expected to vest, Weighted Average Remaining Contractual Life | 6 years 2 months 12 days | ||||||||
Exercisable at end of the period, Weighted Average Remaining Contractual Life | 5 years 9 months 18 days | ||||||||
2020 Incentive Compensation Plan | |||||||||
Information relating to stock options | |||||||||
Number of shares authorized | 350,000 | 400,000 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Segment Reporting | |||
Number of Business Segment | segment | 1 | ||
Net revenues | $ 589,956 | $ 490,461 | $ 337,661 |
Long-lived assets | 142,540 | 142,772 | |
High Temperature Resistant Alloys [Member] | |||
Segment Reporting | |||
Net revenues | 501,463 | 387,464 | 253,246 |
Corrosive Resistant Alloys [Member] | |||
Segment Reporting | |||
Net revenues | 88,493 | 102,997 | 84,415 |
UNITED STATES | |||
Segment Reporting | |||
Net revenues | 344,381 | 278,473 | 179,127 |
Long-lived assets | 134,596 | 135,698 | |
Europe | |||
Segment Reporting | |||
Net revenues | 135,403 | 116,599 | 85,555 |
Long-lived assets | 7,799 | 6,921 | |
CHINA | |||
Segment Reporting | |||
Net revenues | 27,097 | 33,910 | 30,668 |
Long-lived assets | 145 | 153 | |
Other Countries [Member] | |||
Segment Reporting | |||
Net revenues | $ 83,075 | $ 61,479 | $ 42,311 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - Credit Losses - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 428 | $ 553 | $ 545 |
Charges (credits) to Expense | 286 | 171 | 74 |
Deductions | (255) | (296) | (66) |
Balance at End of Period | $ 459 | $ 428 | $ 553 |
Deferred Revenue (Details)
Deferred Revenue (Details) - Conversion Services Arrangement $ in Thousands, lb in Millions | 12 Months Ended | |
Nov. 17, 2006 USD ($) lb | Sep. 30, 2023 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 | ||
Deferred revenue | ||
Annual volume of titanium metal to be converted (in pounds) | lb | 10 | 10 |
Amount of loan offered by counterparty | $ 12,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - Estimate of Fair Value Measurement [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Assets: | ||
Total fair value | $ 219,971 | $ 218,321 |
Defined Benefit Pension Plan | ||
Assets: | ||
Total fair value | 219,971 | 218,321 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Total fair value | 32,155 | 15,926 |
Fair Value, Inputs, Level 1 [Member] | Defined Benefit Pension Plan | ||
Assets: | ||
Total fair value | 32,155 | 15,926 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Total fair value | 154,686 | 158,582 |
Fair Value, Inputs, Level 2 [Member] | Defined Benefit Pension Plan | ||
Assets: | ||
Total fair value | 154,686 | 158,582 |
NAV | ||
Assets: | ||
Total fair value | 33,130 | 43,813 |
NAV | Defined Benefit Pension Plan | ||
Assets: | ||
Total fair value | $ 33,130 | $ 43,813 |
Comprehensive Income (Loss) a_3
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Comprehensive Income (Loss) | |||
Net income (loss) | $ 41,975 | $ 45,087 | $ (8,683) |
Other comprehensive income (loss), Pre-tax | 20,691 | 5,173 | 80,158 |
Other comprehensive income (loss), Tax | (3,226) | (3,924) | (17,898) |
Other comprehensive income (loss) | 17,465 | 1,249 | 62,260 |
Comprehensive income | 59,440 | 46,336 | 53,577 |
Pension and postretirement: Net gain (loss) arising during period | |||
Comprehensive Income (Loss) | |||
Other comprehensive income (loss), Pre-tax | 16,008 | 16,991 | 68,941 |
Other comprehensive income (loss), Tax | (3,700) | (3,924) | (16,044) |
Other comprehensive income (loss) | 12,308 | 13,067 | 52,897 |
Pension and postretirement: Less: amortization of prior service cost | |||
Comprehensive Income (Loss) | |||
Other comprehensive income (loss), Pre-tax | 233 | 239 | 228 |
Other comprehensive income (loss), Tax | (55) | (56) | (52) |
Other comprehensive income (loss) | 178 | 183 | 176 |
Pension and postretirement: Less: amortization of gain (loss) | |||
Comprehensive Income (Loss) | |||
Other comprehensive income (loss), Pre-tax | (2,279) | (240) | 7,735 |
Other comprehensive income (loss), Tax | 529 | 56 | (1,802) |
Other comprehensive income (loss) | (1,750) | (184) | 5,933 |
Accumulated Translation Adjustment | |||
Comprehensive Income (Loss) | |||
Other comprehensive income (loss), Pre-tax | 6,729 | (11,817) | 3,254 |
Other comprehensive income (loss) | $ 6,729 | $ (11,817) | $ 3,254 |
Comprehensive Income (Loss) a_4
Comprehensive Income (Loss) and Changes in Accumulated Other Comprehensive Income (Loss) by Component - Other (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated other comprehensive income (loss) | |||
Balance | $ 375,488 | $ 343,321 | $ 301,501 |
Other comprehensive income (loss) | 17,465 | 1,249 | 62,260 |
Balance | 434,324 | 375,488 | 343,321 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated other comprehensive income (loss) | |||
Balance | (11,092) | (12,341) | (74,601) |
Other comprehensive income (loss) before reclassifications | 19,037 | 1,250 | |
Amounts reclassified from accumulated other comprehensive income (loss), Tax provision (benefit) | 474 | ||
Other comprehensive income (loss) | 17,465 | 1,249 | 62,260 |
Balance | 6,373 | (11,092) | (12,341) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plan | |||
Accumulated other comprehensive income (loss) | |||
Balance | (17,165) | (14,791) | |
Other comprehensive income (loss) before reclassifications | 1,401 | (2,557) | |
Amounts reclassified from accumulated other comprehensive income (loss), Tax provision (benefit) | (55) | (56) | |
Other comprehensive income (loss) | 1,579 | (2,374) | |
Balance | (15,586) | (17,165) | (14,791) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Other Postretirement Benefit Plan | |||
Accumulated other comprehensive income (loss) | |||
Balance | 24,457 | 9,017 | |
Other comprehensive income (loss) before reclassifications | 10,907 | 15,624 | |
Amounts reclassified from accumulated other comprehensive income (loss), Tax provision (benefit) | 529 | 56 | |
Other comprehensive income (loss) | 9,157 | 15,440 | |
Balance | 33,614 | 24,457 | 9,017 |
Pension and postretirement: Less: amortization of prior service cost | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 233 | 239 | |
Other comprehensive income (loss) | 178 | 183 | 176 |
Pension and postretirement: Less: amortization of prior service cost | Defined Benefit Pension Plan | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 233 | 239 | |
Pension and postretirement: Less: amortization of gain (loss) | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (2,279) | (240) | |
Other comprehensive income (loss) | (1,750) | (184) | 5,933 |
Pension and postretirement: Less: amortization of gain (loss) | Defined Benefit Other Postretirement Benefit Plan | |||
Accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (2,279) | (240) | |
Accumulated Translation Adjustment | |||
Accumulated other comprehensive income (loss) | |||
Balance | (18,384) | (6,567) | |
Other comprehensive income (loss) before reclassifications | 6,729 | (11,817) | |
Other comprehensive income (loss) | 6,729 | (11,817) | 3,254 |
Balance | $ (11,655) | $ (18,384) | $ (6,567) |
Long-term Obligations (Details)
Long-term Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Long-term obligations (less current portion) | ||
Finance lease obligations | $ 7,118 | $ 7,384 |
Environmental post-closure monitoring and maintenance activities | 355 | 407 |
Long-term disability | 189 | 210 |
Deferred dividends | 198 | 199 |
Less amounts due within one year | (412) | (352) |
Long-term obligations (less current portion) | $ 7,448 | $ 7,848 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Long-term obligations (less current portion) | Long-term obligations (less current portion) |
Leases - Other (Details)
Leases - Other (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2015 | Sep. 30, 2023 | |
Lessee, Operating Lease, Existence of Residual Value Guarantee | true | |
Lessee, Operating Lease, Existence of Option to Terminate | true | |
Lease, Practical Expedients, Package | true | |
Construction costs related to buildout of the facility | ||
Lease term | 20 years | |
Minimum | ||
Operating lease remaining term | 1 year | |
Finance lease remaining term | 1 year | |
Maximum | ||
Operating lease remaining term | 15 years | |
Finance lease remaining term | 15 years | |
Property Plant And Equipment | ||
Construction costs related to buildout of the facility | ||
Build out of facility | $ 4,100 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Finance lease cost: | ||
Amortization of ROU asset | $ 430 | $ 430 |
Interest on lease liabilities | 759 | 784 |
Total finance lease cost | 1,189 | 1,214 |
Operating lease costs: | ||
Operating lease cost | 1,173 | 1,100 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flow from finance leases | 759 | 784 |
Operating cash flow from operating leases | 1,173 | 1,100 |
Financing cash flows from finance leases | 265 | 228 |
Total cash paid for amount included in measurement of lease liabilities | $ 2,197 | $ 2,112 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Leases | ||
Finance lease assets (included in Property, plant and equipment, net) | $ 5,230 | $ 5,643 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Operating ROU lease assets (included in Other assets) | $ 1,067 | $ 1,085 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Prepaid Expenses and Deferred Costs, Noncurrent | Prepaid Expenses and Deferred Costs, Noncurrent |
Finance lease liabilities | ||
Accrued expenses | $ 302 | $ 265 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Long-term obligations (less current portion) | $ 6,816 | $ 7,119 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Capital Leases Future Minimum Payments And Accrual For Environmental Loss Contingencies Noncurrent | Capital Leases Future Minimum Payments And Accrual For Environmental Loss Contingencies Noncurrent |
Total Finance lease liabilities | $ 7,118 | $ 7,384 |
Operating lease liabilities | ||
Operating lease liabilities | $ 1,067 | $ 1,085 |
Weighted average lease term Finance leases | 12 years 1 month 6 days | 13 years 1 month 6 days |
Weighted average lease term Operating leases | 2 years | 3 years |
Weighted average discount rate Finance leases (as a percent) | 10.32% | 10.32% |
Weighted average discount rate Operating leases (as a percent) | 5.84% | 5.25% |
Leases - Rolling Maturity (Deta
Leases - Rolling Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Finance Leases Rolling Maturity | ||
2024 | $ 1,032 | |
2025 | 1,037 | |
2026 | 1,044 | |
2027 | 1,049 | |
2028 | 1,050 | |
Thereafter | 7,357 | |
Total minimum lease payments | 12,569 | |
Less: amount representing interest | (5,451) | |
Total Finance lease liabilities | 7,118 | $ 7,384 |
Operating Leases Rolling Maturity | ||
2024 | 718 | |
2025 | 276 | |
2026 | 126 | |
2027 | 62 | |
Total minimum lease payments | 1,182 | |
Less: amount representing interest | (115) | |
Present value of minimum lease payments | $ 1,067 | $ 1,085 |
Foreign Currency Forward Cont_3
Foreign Currency Forward Contracts (Details) - Selling, General and Administrative Expenses - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Foreign currency balance sheet hedging | |||
Foreign currency net gain (loss) | $ (1,135) | $ (1,673) | $ (574) |
Foreign Currency Transaction | |||
Foreign currency balance sheet hedging | |||
Foreign currency net gain (loss) | (2,538) | 4,393 | (42) |
Foreign Exchange Forward | |||
Foreign currency balance sheet hedging | |||
Foreign currency net gain (loss) | $ 1,403 | $ (6,066) | $ (532) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 41,975 | $ 45,087 | $ (8,683) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |