Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Sep. 03, 2014 | Dec. 31, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'MATRIX SERVICE CO | ' | ' |
Entity Central Index Key | '0000866273 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $635 |
Entity Common Stock, Shares Outstanding | ' | 26,376,223 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Revenues | $1,263,089 | $892,574 | $739,046 |
Cost of revenues | 1,126,616 | 797,872 | 659,428 |
Gross profit | 136,473 | 94,702 | 79,618 |
Selling, general and administrative expenses | 77,866 | 57,988 | 47,983 |
Operating income | 58,607 | 36,714 | 31,635 |
Other income (expense): | ' | ' | ' |
Interest expense | -1,436 | -800 | -814 |
Interest income | 112 | 32 | 26 |
Other | -472 | -30 | -357 |
Income before income tax expense | 56,811 | 35,916 | 30,490 |
Provision for federal, state and foreign income taxes | 19,934 | 11,908 | 13,302 |
Net income | 36,877 | 24,008 | 17,188 |
Less: Net income attributable to noncontrolling interest | 1,067 | 0 | 0 |
Net income attributable to Matrix Service Company | $35,810 | $24,008 | $17,188 |
Basic earnings per common share (in dollars per share) | $1.36 | $0.92 | $0.66 |
Diluted earnings per common share (in dollars per share) | $1.33 | $0.91 | $0.65 |
Weighted average common shares outstanding: | ' | ' | ' |
Basic (in shares) | 26,288 | 25,962 | 25,921 |
Diluted (in shares) | 26,976 | 26,358 | 26,298 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $36,877 | $24,008 | $17,188 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Foreign currency translation adjustments (net of tax of $116, $190 and $214) | -409 | -544 | -665 |
Comprehensive income | 36,468 | 23,464 | 16,523 |
Less: Comprehensive income attributable to noncontrolling interest | 1,067 | 0 | 0 |
Comprehensive income attributable to Matrix Service Company | $35,401 | $23,464 | $16,523 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Foreign currency translation adjustments, tax effect | $116 | $190 | $214 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $77,115 | $63,750 |
Accounts receivable, less allowances (2014—$204; 2013—$795) | 204,692 | 140,840 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 73,008 | 73,773 |
Inventories | 3,045 | 2,988 |
Income taxes receivable | 2,797 | 3,032 |
Deferred income taxes | 5,994 | 5,657 |
Other current assets | 8,897 | 6,234 |
Total current assets | 375,548 | 296,274 |
Property, plant and equipment, at cost: | ' | ' |
Land and buildings | 31,737 | 29,649 |
Construction equipment | 82,745 | 69,998 |
Transportation equipment | 42,087 | 34,366 |
Office equipment and software | 26,026 | 18,426 |
Construction in progress | 9,892 | 9,080 |
Property, plant and equipment at cost, gross | 192,487 | 161,519 |
Accumulated depreciation | -103,315 | -90,218 |
Property, plant and equipment at cost, net | 89,172 | 71,301 |
Goodwill | 69,837 | 30,836 |
Other intangible assets | 28,676 | 7,551 |
Other assets | 5,699 | 4,016 |
Total assets | 568,932 | 409,978 |
Current liabilities: | ' | ' |
Accounts payable | 111,863 | 68,961 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 108,440 | 62,848 |
Accrued wages and benefits | 36,226 | 21,919 |
Accrued insurance | 8,605 | 7,599 |
Other accrued expenses | 4,727 | 3,039 |
Total current liabilities | 269,861 | 164,366 |
Deferred income taxes | 5,167 | 7,450 |
Borrowings under senior credit facility | 11,621 | 0 |
Total liabilities | 286,649 | 171,816 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock—$.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of June 30, 2014 and June 30, 2013 | 279 | 279 |
Additional paid-in capital | 119,777 | 118,190 |
Retained earnings | 177,237 | 141,427 |
Accumulated other comprehensive income (loss) | -182 | 227 |
Total stockholders' equity before treasury stock | 297,111 | 260,123 |
Less treasury stock, at cost— 1,453,770 and 1,779,593 shares as of June 30, 2014 and June 30, 2013 | -16,595 | -21,961 |
Stockholders' Equity Attributable to Parent | 280,516 | 238,162 |
Noncontrolling interest | 1,767 | 0 |
Total Matrix Service Company stockholders' equity | 282,283 | 238,162 |
Total liabilities and stockholders' equity | $568,932 | $409,978 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances | $204 | $795 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 27,888,217 | 27,888,217 |
Treasury stock, shares | 1,453,770 | 1,779,593 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Operating activities: | ' | ' | ' |
Net income | $36,877 | $24,008 | $17,188 |
Adjustments to reconcile net income to net cash provided by operating activities, net of effects of acquisitions : | ' | ' | ' |
Depreciation and amortization | 18,518 | 12,782 | 11,485 |
Stock-based compensation expense | 5,688 | 3,831 | 3,504 |
Deferred income taxes | -3,852 | 1,932 | 83 |
Allowance for uncollectible accounts | -159 | 714 | 24 |
Impairment of Intangible Assets, Finite-lived | 0 | 255 | 0 |
(Gain) loss on sale of property, plant and equipment | 109 | -1 | -158 |
Other | 208 | 163 | 65 |
Changes in operating assets and liabilities increasing (decreasing) cash, net of effects from acquisitions: | ' | ' | ' |
Accounts receivable | -31,395 | -32,408 | -4,575 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 13,540 | -5,211 | -28,506 |
Inventories | -11 | -1,394 | -233 |
Other assets | -1,379 | -2,194 | -1,888 |
Accounts payable | 29,234 | 19,256 | 12,862 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 3,142 | 32,555 | -5,192 |
Accrued expenses | 6,468 | 2,796 | -1,718 |
Net cash provided by operating activities | 76,988 | 57,084 | 2,941 |
Investing activities: | ' | ' | ' |
Acquisition of property, plant and equipment | -23,589 | -23,231 | -13,534 |
Acquisition | -51,607 | -9,394 | 0 |
Acquisition related adjustment | 0 | 0 | 241 |
Proceeds from asset sales | 553 | 186 | 598 |
Net cash used for investing activities | -74,643 | -32,439 | -12,695 |
Financing activities: | ' | ' | ' |
Exercise of stock options | 1,175 | 875 | 167 |
Capital lease payments | 0 | -42 | -258 |
Excess tax benefit of exercised stock options and vesting of deferred shares | 1,730 | 37 | 0 |
Advances under credit agreement | 87,826 | 25,565 | 9,105 |
Repayments of advances under credit agreement | -76,205 | -25,565 | -9,105 |
Payment of debt amendment fees | -657 | 0 | -643 |
Treasury shares sold to Employee Stock Purchase Plan | 136 | 54 | 47 |
Open market purchase of treasury shares | 0 | 0 | -8,126 |
Other treasury share purchases | -1,776 | -1,162 | -537 |
Net cash used by financing activities | 12,229 | -238 | -9,350 |
Effect of exchange rate changes on cash | -1,209 | -383 | -527 |
Net increase (decrease) in cash and cash equivalents | 13,365 | 24,024 | -19,631 |
Cash and cash equivalents, beginning of period | 63,750 | 39,726 | 59,357 |
Cash and cash equivalents, end of period | 77,115 | 63,750 | 39,726 |
Other cash flow information: | ' | ' | ' |
Income taxes | 19,160 | 12,242 | 12,016 |
Interest | 1,224 | 610 | 478 |
Non-cash investing: | ' | ' | ' |
Purchases of property, plant and equipment on account | $527 | $1,146 | $457 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income(Loss) | Noncontrolling Interest |
In Thousands, unless otherwise specified | |||||||
Balances, beginning at Jun. 30, 2011 | $199,671 | $279 | $113,686 | $100,231 | ($15,961) | $1,436 | $0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 17,188 | ' | ' | 17,188 | ' | ' | ' |
Other comprehensive loss | -665 | ' | ' | ' | ' | -665 | ' |
Exercise of stock options | 167 | ' | 98 | 0 | 69 | ' | ' |
Tax effect of exercised stock options and vesting of deferred shares | -152 | ' | -152 | ' | ' | ' | ' |
Issuance of deferred shares | ' | ' | -479 | ' | 479 | ' | ' |
Treasury Shares Sold to Employee Stock Purchase Plan (Note 12) | 47 | ' | 36 | ' | 11 | ' | ' |
Open market purchase of treasury shares (886,503 shares) | -8,126 | ' | ' | ' | -8,126 | ' | ' |
Other treasury share purchases | -537 | ' | ' | ' | -537 | ' | ' |
Stock-based compensation expense | 3,504 | ' | 3,504 | ' | ' | ' | ' |
Balances, ending at Jun. 30, 2012 | 211,097 | 279 | 116,693 | 117,419 | -24,065 | 771 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 24,008 | ' | ' | 24,008 | ' | ' | ' |
Other comprehensive loss | -544 | ' | ' | ' | ' | -544 | ' |
Exercise of stock options | 875 | ' | -662 | 0 | 1,537 | ' | ' |
Tax effect of exercised stock options and vesting of deferred shares | 3 | ' | 3 | ' | ' | ' | ' |
Issuance of deferred shares | ' | ' | -1,667 | ' | 1,667 | ' | ' |
Treasury Shares Sold to Employee Stock Purchase Plan (Note 12) | 54 | ' | -8 | ' | 62 | ' | ' |
Other treasury share purchases | -1,162 | ' | ' | ' | -1,162 | ' | ' |
Stock-based compensation expense | 3,831 | ' | 3,831 | ' | ' | ' | ' |
Balances, ending at Jun. 30, 2013 | 238,162 | 279 | 118,190 | 141,427 | -21,961 | 227 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 36,877 | ' | ' | 35,810 | ' | ' | 1,067 |
Other comprehensive loss | -409 | ' | ' | ' | ' | -409 | ' |
Consolidated joint venture included in acquisition (Note 2) | 700 | ' | ' | ' | ' | ' | 700 |
Exercise of stock options | 1,175 | ' | -1,190 | ' | 2,365 | ' | ' |
Tax effect of exercised stock options and vesting of deferred shares | 1,730 | ' | 1,730 | ' | ' | ' | ' |
Issuance of deferred shares | ' | ' | -4,680 | ' | 4,680 | ' | ' |
Treasury Shares Sold to Employee Stock Purchase Plan (Note 12) | 136 | ' | 39 | ' | 97 | ' | ' |
Other treasury share purchases | -1,776 | ' | ' | ' | -1,776 | ' | ' |
Stock-based compensation expense | 5,688 | ' | 5,688 | ' | ' | ' | ' |
Balances, ending at Jun. 30, 2014 | $282,283 | $279 | $119,777 | $177,237 | ($16,595) | ($182) | $1,767 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Exercise of stock options, shares | 134,450 | 97,840 | 26,500 |
Issuance of deferred shares, shares | 266,209 | 367,449 | 184,149 |
Employee Stock Purchase Plans, shares | 5,440 | 4,452 | 4,395 |
Open market purchase of treasury shares, shares | ' | ' | 886,503 |
Other treasury share purchases | 80,096 | 107,344 | 52,992 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
Summary of Significant Accounting Policies | ||
Organization and Basis of Presentation | ||
The consolidated financial statements include the accounts of Matrix Service Company (“Matrix” or the “Company”) and its subsidiaries, all of which are wholly owned. Intercompany transactions and balances have been eliminated in consolidation. | ||
The Company operates in the United States and Canada. The Company’s reportable segments are Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions and Industrial. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We believe the most significant estimates and judgments are associated with revenue recognition, the recoverability tests that must be periodically performed with respect to our goodwill and other intangible assets, valuation reserves on our accounts receivable and deferred tax assets, and the estimation of loss contingencies, including liabilities associated with litigation and with the self insured retentions on our insurance programs. Actual results could materially differ from those estimates. | ||
Revenue Recognition | ||
Matrix records profits on fixed-price contracts on a percentage-of-completion basis, primarily based on costs incurred to date compared to the total estimated contract cost. The Company records revenue on reimbursable and time and material contracts on a proportional performance basis as costs are incurred. Contracts in process are valued at cost plus accrued profits less billings on uncompleted contracts. Contracts are generally considered substantially complete when field construction is completed. The elapsed time from award of a contract to completion of performance may be in excess of one year. Matrix includes pass-through revenue and costs on cost-plus contracts, which are customer-reimbursable materials, equipment and subcontractor costs, when Matrix determines that it is responsible for the procurement and management of such cost components. | ||
Matrix has numerous contracts that are in various stages of completion which require estimates to determine the appropriate cost and revenue recognition. The Company has a history of making reasonably dependable estimates of the extent of progress towards completion, contract revenues and contract costs, and accordingly, does not believe significant fluctuations are likely to materialize. However, current estimates may be revised as additional information becomes available. If estimates of costs to complete fixed-price contracts indicate a loss, provision is made through a contract write-down for the total loss anticipated. A number of our contracts contain various cost and performance incentives and penalties that impact the earnings we realize from our contracts, and adjustments related to these incentives and penalties are recorded in the period, on a percentage-of-completion basis, when estimable and probable. | ||
Indirect costs, such as salaries and benefits, supplies and tools, equipment costs and insurance costs, are charged to projects based upon direct labor hours and overhead allocation rates per direct labor hour. Warranty costs are normally incurred prior to project completion and are charged to project costs as they are incurred. Warranty costs incurred subsequent to project completion were not material for the periods presented. Overhead allocation rates are established annually during the budgeting process. | ||
Precontract Costs | ||
Precontract costs are expensed as incurred. | ||
Change Orders and Claims Recognition | ||
Change orders are modifications of an original contract that effectively change the existing provisions of the contract. Change orders may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Matrix or our clients may initiate change orders. The client's agreement to the terms of change orders is, in many cases, reached prior to work commencing; however, sometimes circumstances require that work progress prior to obtaining client agreement. Costs related to change orders are recognized as incurred. Revenues attributable to change orders that are unapproved as to price or scope are recognized to the extent that costs have been incurred if the amounts can be reliably estimated and their realization is probable. Revenues in excess of the costs attributable to change orders that are unapproved as to price or scope are recognized only when realization is assured beyond a reasonable doubt. Change orders that are unapproved as to both price and scope are evaluated as claims. | ||
Claims are amounts in excess of the agreed contract price that we seek to collect from customers or others for delays, errors in specifications and designs, contract terminations, change orders in dispute or unapproved as to both scope and price or other causes of anticipated additional costs incurred by us. Recognition of amounts as additional contract revenue related to claims is appropriate only if it is probable that the claims will result in additional contract revenue and if the amount can be reliably estimated. We must determine if: | ||
• | there is a legal basis for the claim; | |
• | the additional costs were caused by circumstances that were unforeseen by the Company and are not the result of deficiencies in our performance; | |
• | the costs are identifiable or determinable and are reasonable in view of the work performed; and | |
• | the evidence supporting the claim is objective and verifiable. | |
If all of these requirements are met, revenue from a claim is recorded only to the extent that we have incurred costs relating to the claim. Unapproved change orders and claims are more fully discussed in Note 7—Contingencies. | ||
Cash Equivalents | ||
The Company includes as cash equivalents all investments with original maturities of three months or less which are readily convertible into cash. The Company had approximately $0.3 million of restricted cash related to a customer deposit at June 30, 2014 and $0.3 million of restricted cash at June 30, 2013. | ||
Accounts Receivable | ||
Accounts receivable are carried on a gross basis, less the allowance for uncollectible accounts. The Company’s customers consist primarily of major integrated oil companies, independent refiners and marketers, power companies, petrochemical companies, pipeline companies, mining companies, contractors and engineering firms. The Company is exposed to the risk of individual customer defaults or depressed cycles in our customers’ industries. To mitigate this risk many of our contracts require payment as projects progress or advance payment in some circumstances. In addition, in most cases the Company can place liens against the property, plant or equipment constructed or terminate the contract if a material contract default occurs. Management estimates the allowance for uncollectible accounts based on existing economic conditions, the financial condition of its customers and the amount and age of past due accounts. Accounts are written off against the allowance for uncollectible accounts only after all collection attempts have been exhausted. | ||
Retentions | ||
Accounts receivable at June 30, 2014 and June 30, 2013 included retentions to be collected within one year of $30.0 million and $19.9 million, respectively. Contract retentions collectible beyond one year are included in Other Assets on the Consolidated Balance Sheets and totaled $4.3 million at June 30, 2014 and $3.1 million at June 30, 2013. Accounts payable included retentions of $10.4 million at June 30, 2014 and $3.1 million at June 30, 2013. | ||
Loss Contingencies | ||
Various legal actions, claims and other contingencies arise in the normal course of our business. Contingencies are recorded in the consolidated financial statements, or are otherwise disclosed, in accordance with ASC 450-20, “Loss Contingencies”. Specific reserves are provided for loss contingencies to the extent we conclude that a loss is both probable and estimable. We use a case-by-case evaluation of the underlying data and update our evaluation as further information becomes known. We believe that any amounts exceeding our recorded accruals should not materially affect our financial position, results of operations or liquidity. However, the results of litigation are inherently unpredictable and the possibility exists that the ultimate resolution of one or more of these matters could result in a material effect on our financial position, results of operations or liquidity. | ||
Legal costs are expensed as incurred. | ||
Inventories | ||
Inventories consist primarily of steel plate and pipe and are stated at the lower of cost or net realizable value. Cost is determined primarily using the average cost method. | ||
Depreciation | ||
Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable assets. Depreciable lives are as follows: buildings—40 years, construction equipment—3 to 15 years, transportation equipment—3 to 5 years, and office equipment and software—3 to 10 years. Leasehold improvements are amortized over the shorter of the useful life of the asset or the lease term. | ||
Internal-Use Computer Software | ||
We expense or capitalize costs associated with the development of internal-use software as follows: | ||
Preliminary Project Stage: Both internal and external costs incurred during this stage are expensed as incurred. | ||
Application Development Stage: Both internal and external costs incurred to purchase or develop computer software are capitalized after the preliminary project stage is completed and management authorizes the computer software project. However, training costs and data conversion costs, which includes purging or cleansing of existing data, reconciling or balancing of data, are expensed as incurred. | ||
Post-Implementation/Operation Stage: All training costs and maintenance costs incurred during this stage are expensed as incurred. | ||
Costs of upgrades and enhancements are capitalized if the expenditures will result in adding functionality to the software. Capitalized software costs are depreciated using the straight-line method over the estimated useful life of the related software, which may be up to ten years. | ||
Impairment of Long-Lived Assets | ||
The Company evaluates long-lived assets for impairment when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets used in operations may not be recoverable. The determination of whether an impairment has occurred is based on management’s estimate of undiscounted future cash flows attributable to the assets as compared to the carrying value of the assets. If an impairment has occurred, the amount of the impairment recognized is determined by estimating the fair value of the assets and, to the extent the carrying value exceeds the fair value of the assets, recording a loss provision. | ||
For assets identified to be disposed of in the future, the carrying value of the assets are compared to the estimated fair value less the cost of disposal to determine if an impairment has occurred. Until the assets are disposed of, an estimate of the fair value is redetermined when related events or circumstances change. | ||
Goodwill | ||
Goodwill represents the excess of the purchase price of acquisitions over the acquisition date fair value of the net identifiable tangible and intangible assets acquired. In accordance with current accounting guidance, goodwill is not amortized and is tested at least annually for impairment at the reporting unit level. | ||
We perform our annual analysis during the fourth quarter of each fiscal year and in any other period in which indicators of impairment warrant additional analysis. Goodwill impairment reviews involve a two-step process. Goodwill is first evaluated for impairment by comparing management’s estimate of the fair value of a reporting unit with its carrying value, including goodwill. | ||
Management utilizes a discounted cash flow analysis, referred to as an income approach, to determine the estimated fair value of our reporting units. Significant judgments and assumptions including the discount rate, anticipated revenue growth rate and gross margins, estimated operating and interest expense, and capital expenditures are inherent in these fair value estimates, which are based on our operating and capital budgets and on our strategic plan. As a result, actual results may differ from the estimates utilized in our income approach. The use of alternate judgments and/or assumptions could result in a fair value that differs from our estimate and could result in the recognition of an impairment charge in the financial statements. As a result of these uncertainties, we utilize multiple scenarios and assign probabilities to each of the scenarios in the income approach. | ||
We also consider indications obtained from market-based approaches. We compare market multiples derived from market prices of stock of companies that are engaged in a similar line of business to the corresponding measures of the Company. We also consider the combined carrying values of our reporting units to our market capitalization. | ||
If the carrying value of our reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment. The amount of impairment is determined by comparing the implied fair value of the reporting unit's goodwill to the carrying value of the goodwill calculated in the same manner as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill is less than its carrying value, we would record an impairment charge for the difference. | ||
Other Intangible Assets | ||
Intangible assets that have finite useful lives are amortized by the straight-line method over their useful lives ranging from 1 to 15 years. Intangible assets that have indefinite useful lives are not amortized but are tested at least annually for impairment. Each reporting period, we evaluate the remaining useful lives of intangible assets not being amortized to determine whether facts and circumstances continue to support an indefinite useful life. Intangible assets are considered impaired if the fair value of the intangible asset is less than its net book value. If quoted market prices are not available, the fair values of the intangible assets are based on present values of expected future cash flows or royalties avoided using discount rates commensurate with the risks involved. | ||
Insurance Reserves | ||
We maintain insurance coverage for various aspects of our operations. However, we retain exposure to potential losses through the use of deductibles, coverage limits and self-insured retentions. We establish reserves for claims using a combination of actuarially determined estimates and case-by-case evaluations of the underlying claim data and update our evaluations as further information becomes known. Judgments and assumptions are inherent in our reserve accruals; as a result, changes in assumptions or claims experience could result in changes to these estimates in the future. If actual results of claim settlements are different than the amounts estimated we may be exposed to future gains and losses that could be material. | ||
Stock-Based Compensation | ||
The Company has issued stock options and nonvested deferred share awards under its long-term incentive compensation plans. The fair value of these awards is calculated at grant date. The fair value of time-based, nonvested deferred shares is the value of the Company’s common stock at the grant date. The fair value of market-based nonvested deferred shares is based on several factors, including the probability that the market condition specified in the grant will be achieved. The fair value of stock options is determined based on the Black-Scholes option pricing model. The detailed assumptions used in the model are included in Note 10—Stock Based Compensation. | ||
For all stock-based awards, expense is recognized over the requisite service period, net of estimated forfeitures. The expense related to performance based shares is recognized only if management believes it is probable that the performance targets specified in the awards will be achieved. | ||
Income Taxes | ||
The Company complies with ASC 740, “Income Taxes”. Deferred income taxes are computed using the liability method whereby deferred tax assets and liabilities are recognized based on temporary differences between the financial statement and tax basis of assets and liabilities using presently enacted tax rates. Valuation allowances are established against deferred tax assets to the extent management believes that it is not probable that the assets will be recovered. | ||
The Company provides for income taxes regardless of whether it has received a tax assessment. Taxes are provided when we consider it probable that additional taxes will be due in excess of the amounts included in our tax returns. We continually review our exposure to additional income taxes due, and as further information is known or events occur, adjustments may be recorded. | ||
Foreign Currency | ||
The functional currency of the Company’s operations in Canada is the Canadian dollar. The assets and liabilities are translated at the year end exchange rate and the income statement accounts are translated at average exchange rates throughout the year. Translation gains and losses are reported in Accumulated Other Comprehensive Income (Loss) in the Consolidated Statements of Changes in Stockholders’ Equity and in Other Comprehensive Income (Loss) in the Consolidated Statements of Comprehensive Income. Transaction gains and losses are reported as a component of Other income (expense) in the Consolidated Statements of Income. | ||
Recently Issued Accounting Standards | ||
Accounting Standards Update 2014-09 (Topic 606), Revenue from Contracts with Customers | ||
In May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers." The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity: | ||
• Identifies the contract(s) with a customer (step 1). | ||
• Identifies the performance obligations in the contract (step 2). | ||
• Determines the transaction price (step 3). | ||
• Allocates the transaction price to the performance obligations in the contract (step 4). | ||
• Recognizes revenue when (or as) the entity satisfies a performance obligation (step 5). | ||
The ASU also requires entities to disclose both quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU’s disclosure requirements are significantly more comprehensive than those in existing revenue standards. The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification ("ASC"). For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. We expect to adopt this standard in fiscal 2018 and are currently evaluating its expected impact on our financial statements. | ||
Accounting Standards Update 2014- 12 (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force "EITF") | ||
On June 19, 2014, the FASB issued ASU 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force)" in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. For all entities, the ASU is effective for reporting periods beginning after December 15, 2015. Early adoption is permitted. We expect to adopt this standard in fiscal 2016 and do not expect the adoption of this standard to have a material impact on our consolidated financial statements. | ||
Accounting Standards Update 2014-08 (Topics 205 and 360), Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | ||
On April 10, 2014, the FASB issued ASU 2014-08, " Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued-operations criteria. The FASB issued the ASU to provide more decision-useful information and to make it more difficult for a disposal transaction to qualify as a discontinued operation (since the FASB believes that too many disposal transactions were qualifying as discontinued operations under the old definition). Under the previous guidance in ASC 205-20-45-1, the results of operations of a component of an entity were classified as a discontinued operation if all of the following conditions were met: | ||
• "The component “has been disposed of or is classified as held for sale.” | ||
• “The operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity | ||
as a result of the disposal transaction.” | ||
• “The entity will not have any significant continuing involvement in the operations of the component after the disposal | ||
transaction.” | ||
The new guidance eliminates the second and third criteria above and instead requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. The ASU also expands the scope of ASC 205-20 to disposals of equity method investments and businesses that, upon initial acquisition, qualify as held for sale.The ASU is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted. We expect to adopt this standard in fiscal 2015 and do not expect the adoption of this standard to have a material impact on our consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Business Combinations [Abstract] | ' | ||||||
Acquisitions | ' | ||||||
Acquisitions | |||||||
Purchase of Kvaerner North American Construction | |||||||
Effective as of December 21, 2013, the Company acquired 100% of the stock of Kvaerner North American Construction Ltd. and substantially all of the assets of Kvaerner North American Construction Inc,. together referenced as "KNAC". The businesses are now known as Matrix North American Construction Ltd. and Matrix North American Construction, Inc., together referenced as "Matrix NAC". Matrix NAC is a premier provider of maintenance and capital construction services to power generation, integrated iron and steel, and industrial process facilities. The acquisition significantly expands the Company's presence in the Electrical Infrastructure and Industrial Segments, and to a lesser extent, the Oil Gas and Chemical segment. | |||||||
The Company purchased KNAC for $88.3 million The acquisition was funded through a combination of cash-on-hand and borrowings under our senior revolving credit facility. The purchase price was allocated to the major categories of assets and liabilities based on their estimated fair value at the acquisition date. The following table summarizes the preliminary purchase price allocation (in thousands): | |||||||
Current assets | $ | 83,575 | |||||
Property, plant and equipment | 11,377 | ||||||
Goodwill | 39,076 | ||||||
Other intangible assets | 24,009 | ||||||
Total assets acquired | 158,037 | ||||||
Current liabilities | 67,959 | ||||||
Deferred income taxes | 1,116 | ||||||
Noncontrolling interest of consolidated joint venture | 700 | ||||||
Net assets acquired | 88,262 | ||||||
Cash acquired | 36,655 | ||||||
Net purchase price | $ | 51,607 | |||||
Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. This acquisition generated $39.1 million of goodwill, of which $30.7 million is tax deductible. | |||||||
The equity in consolidated joint venture represents the acquired equity in KVPB Power Partners. KVPB Power Partners was subsequently renamed MXPB Power Partners (the "Joint Venture"). The Joint Venture was formed by Kvaerner North American Construction Inc. and an engineering firm to engineer and construct a combined cycle power plant in Dover, Delaware. The Company now holds a 65% voting and economic interest in the Joint Venture. The total acquired equity of the Joint Venture was $2.0 million of which the Company's portion was approximately $1.3 million and the other party's non-controlling portion was approximately $0.7 million. At June 30, 2014, the noncontrolling interest holder's share of the equity of the Joint Venture totaled $1.8 million. The Company's share at June 30, 2014 was $3.3 million. | |||||||
For the twelve months ended June 30, 2014, Matrix NAC revenues of $154.8 million and operating income of $2.7 million are included in the Company's results. The Company incurred approximately $2.0 million of expenses related to the acquisition in the second quarter of fiscal 2014; therefore, such expenses are included in our results as selling, general and administrative costs for the year ended June 30, 2014. | |||||||
The unaudited financial information in the table below summarizes the combined results of operations of Matrix Service Company and Matrix NAC for the for the twelve months ended June 30, 2014 and June 30, 2013, on a pro forma basis, as though the companies had been combined as of July 1, 2012. The pro forma earnings for the twelve months ended June 30, 2014 and June 30, 2013 were adjusted to include incremental intangible amortization expense of $4.1 million, respectively and depreciation expenses of $1.3 million, respectively. Additionally, $0.6 million of income from a one-time KNAC tax settlement and $2.0 million of acquisition-related expenses were removed from the twelve months ended June 30, 2014. The $2.0 million of acquisition-related expenses were included in the twelve months ended June 30, 2013 as if the acquisition occurred at July 1, 2012. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at July 1, 2012 nor should it be taken as indicative of our future consolidated results of operations. | |||||||
June 30, | June 30, | ||||||
2014 | 2013 | ||||||
(In thousands, except per share data) | |||||||
Revenues | $ | 1,397,706 | $ | 1,096,267 | |||
Net income attributable to Matrix Service Company | $ | 38,786 | $ | 28,444 | |||
Basic earnings per common share | $ | 1.48 | $ | 1.1 | |||
Diluted earnings per common share | $ | 1.44 | $ | 1.08 | |||
Purchase of Pelichem Industrial Cleaning Services, LLC | |||||||
On December 31, 2012, the Company acquired substantially all of the assets of Pelichem Industrial Cleaning Services, LLC (“Pelichem”). Pelichem is an industrial cleaning company based in Reserve, Louisiana that performs hydroblasting, vacuum services, chemical cleaning and industrial services. Pelichem's operating results are included in the Oil Gas & Chemical Segment. | |||||||
The purchase price was allocated to the major categories of assets and liabilities based on their estimated fair value at the acquisition date. The following table summarizes the final purchase price allocation: | |||||||
Current assets | $ | 1,112 | |||||
Property, plant and equipment | 4,299 | ||||||
Tax deductible goodwill | 2,247 | ||||||
Other intangible assets | 1,853 | ||||||
Total assets acquired | 9,511 | ||||||
Current liabilities | 117 | ||||||
Net assets acquired | $ | 9,394 | |||||
The operating data related to this acquisition was not material. The acquisition was funded with cash on hand. |
Customer_Contracts
Customer Contracts | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Contractors [Abstract] | ' | ||||||||
Customer Contracts | ' | ||||||||
Customer Contracts | |||||||||
Contract terms of the Company’s construction contracts generally provide for progress billings based on project milestones. The excess of costs incurred and estimated earnings over amounts billed on uncompleted contracts is reported as a current asset. The excess of amounts billed over costs incurred and estimated earnings on uncompleted contracts is reported as a current liability. Gross and net amounts on uncompleted contracts are as follows: | |||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Costs and estimated earnings recognized on uncompleted contracts | $ | 1,435,242 | $ | 802,588 | |||||
Billings on uncompleted contracts | 1,470,674 | 791,663 | |||||||
$ | (35,432 | ) | $ | 10,925 | |||||
Shown on balance sheet as: | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 73,008 | $ | 73,773 | |||||
Billings on uncompleted contracts in excess of costs and estimated earnings | 108,440 | 62,848 | |||||||
$ | (35,432 | ) | $ | 10,925 | |||||
SME Receivables | |||||||||
The Company continues to pursue collection of a receivable acquired in connection with the purchase of S.M. Electric Company, Inc. in February 2009. The recorded values at June 30, 2014 and June 30, 2013 include $0.7 million in claim receivables, which represents the Company's best estimate of the amount to be collected under the claim, and an additional $2.9 million for amounts due under the related contract. Recovering the remaining receivables will require mediation or litigation and the ultimate amount realized may be significantly different than the recorded amounts, which could result in a material adjustment to future earnings. | |||||||||
Other | |||||||||
In the twelve months ended June 30, 2014 our results of operations were materially impacted by a charge resulting from a change in estimate on an aboveground storage tank project. The charge resulted in an $8.4 million decrease in operating income for the twelve months ended June 30, 2014. The project is a loss project; therefore, the entire projected loss has been recorded. The charge reflects management's best estimate of the total contract revenues to be recognized and total costs at completion. | |||||||||
In the twelve months ended June 30, 2013, our gross profit was materially impacted by a $3.7 million charge resulting from a change in estimate for a project to construct aboveground storage tanks. This project was completed in the fourth quarter of fiscal 2013. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||
Goodwill | |||||||||||||||||||||
The changes in the carrying amount of goodwill by segment are as follows: | |||||||||||||||||||||
Electrical | Oil Gas & | Storage | Industrial | Total | |||||||||||||||||
Infrastructure | Chemical | Solutions | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Goodwill | $ | 29,666 | $ | 5,841 | $ | 11,071 | $ | 7,097 | $ | 53,675 | |||||||||||
Cumulative impairment loss | (17,653 | ) | (3,000 | ) | (922 | ) | (3,425 | ) | (25,000 | ) | |||||||||||
Net balance at June 30, 2012 | 12,013 | 2,841 | 10,149 | 3,672 | 28,675 | ||||||||||||||||
Purchase of Pelichem (Note 2) | — | 2,247 | — | — | 2,247 | ||||||||||||||||
Translation adjustment | — | — | (86 | ) | — | (86 | ) | ||||||||||||||
Net balance at June 30, 2013 | 12,013 | 5,088 | 10,063 | 3,672 | 30,836 | ||||||||||||||||
Purchase of Kvaerner North American Construction (Note 2) | 31,259 | 5,855 | — | 1,962 | 39,076 | ||||||||||||||||
Translation adjustment | (29 | ) | — | (36 | ) | (10 | ) | (75 | ) | ||||||||||||
Net balance at June 30, 2014 | $ | 43,243 | $ | 10,943 | $ | 10,027 | $ | 5,624 | $ | 69,837 | |||||||||||
The translation adjustments relate to the periodic translation of Canadian Dollar denominated goodwill recorded as a part of a prior Canadian acquisition as well as the periodic translation of the Canadian entity acquired with the purchase of Kvaerner North American Construction (Note 2) through June 30, 2014. The cumulative impairment loss shown in the table above occurred as a result of the Company’s operating performance in fiscal 2005. | |||||||||||||||||||||
Other Intangible Assets | |||||||||||||||||||||
Information on the carrying value of other intangible assets is as follows: | |||||||||||||||||||||
At June 30, 2014 | |||||||||||||||||||||
Useful Life | Gross | Accumulated | Net Carrying | ||||||||||||||||||
Carrying | Amortization | Amount | |||||||||||||||||||
Amount | |||||||||||||||||||||
(Years) | (In thousands) | ||||||||||||||||||||
Intellectual property | 6 to 15 | $ | 2,460 | $ | (920 | ) | $ | 1,540 | |||||||||||||
Customer based | 1.5 to 15 | 27,662 | (2,949 | ) | 24,713 | ||||||||||||||||
Non-compete agreements | 3 to 5 | 1,312 | (471 | ) | 841 | ||||||||||||||||
Trade name | 5 | 165 | (33 | ) | 132 | ||||||||||||||||
Total amortizing intangibles | 31,599 | (4,373 | ) | 27,226 | |||||||||||||||||
Trade name | Indefinite | 1,450 | — | 1,450 | |||||||||||||||||
Total intangible assets | $ | 33,049 | $ | (4,373 | ) | $ | 28,676 | ||||||||||||||
At June 30, 2013 | |||||||||||||||||||||
Useful Life | Gross | Accumulated | Net Carrying | ||||||||||||||||||
Carrying | Amortization | Amount | |||||||||||||||||||
Amount | |||||||||||||||||||||
(Years) | (In thousands) | ||||||||||||||||||||
Intellectual property | 6 to 15 | $ | 2,460 | $ | (753 | ) | $ | 1,707 | |||||||||||||
Customer based | 1.5 to 15 | 4,250 | (542 | ) | 3,708 | ||||||||||||||||
Non-compete agreements | 3 to 5 | 808 | (287 | ) | 521 | ||||||||||||||||
Trade name | 5 | 165 | — | 165 | |||||||||||||||||
Total amortizing intangibles | 7,683 | (1,582 | ) | 6,101 | |||||||||||||||||
Trade name | Indefinite | 1,450 | — | 1,450 | |||||||||||||||||
Total intangible assets | $ | 9,133 | $ | (1,582 | ) | $ | 7,551 | ||||||||||||||
The increase in other intangible assets at June 30, 2014 compared to June 30, 2013 is due to the acquisition of Matrix NAC. The Matrix NAC intangible assets consist of amortizing intangible assets including customer-based intangibles with a fair value of $23.4 million and useful lives ranging from 1.5 to 15 years and a non-compete agreement with a fair value of $0.5 million and a useful life of 4 years. Please refer to Note 2 - Acquisitions for additional information. | |||||||||||||||||||||
Each reporting period, the Company evaluates the remaining useful lives of intangible assets not being amortized to determine whether facts and circumstances continue to support an indefinite useful life. Based on this analysis, for the twelve months ended June 30, 2013, Matrix revised its assumption of the useful life of the "EDC" trade name, which resulted in a reclassification of the asset from an indefinite-lived intangible to a finite-lived intangible with a five year useful life. This reclassification resulted in an impairment charge of $0.3 million which was recorded as a selling, general and administrative cost in the Industrial segment. | |||||||||||||||||||||
Amortization expense totaled $2.8 million, $0.4 million, and $0.5 million in fiscal 2014, 2013, and 2012, respectively. We estimate that future amortization of other intangible assets will be as follows (in thousands): | |||||||||||||||||||||
For year ending: | |||||||||||||||||||||
June 30, 2015 | $4,726 | ||||||||||||||||||||
June 30, 2016 | 2,854 | ||||||||||||||||||||
June 30, 2017 | 2,769 | ||||||||||||||||||||
June 30, 2018 | 2,670 | ||||||||||||||||||||
June 30, 2019 | 2,545 | ||||||||||||||||||||
Thereafter | 11,662 | ||||||||||||||||||||
Total estimated amortization expense | $27,226 | ||||||||||||||||||||
Debt
Debt | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Debt | |||||||||
The Company has a five-year, $200.0 million senior secured revolving credit facility under a credit agreement (the "Credit Agreement") that expires March 13, 2019. Advances under the credit facility may be used for working capital, acquisitions, capital expenditures, issuance of letters of credit and other lawful corporate purposes. | |||||||||
The Credit Agreement includes the following covenants and borrowing limitations: | |||||||||
• | Our Senior Leverage Ratio, as defined in the agreement, may not exceed 2.50 to 1.00 as of the end of each fiscal quarter. | ||||||||
• | We are required to maintain a Fixed Charge Coverage Ratio, as defined in the agreement, greater than or equal to 1.25 to 1.00 as of the end of each fiscal quarter. | ||||||||
• | Asset dispositions (other than inventory and obsolete or unneeded equipment disposed of in the ordinary course of business) are limited to $20.0 million per 12-month period. | ||||||||
Amounts borrowed under the Credit Agreement bear interest at LIBOR or an Alternate Base Rate, plus in each case, an additional margin based on the Senior Leverage Ratio. The additional margin on Alternate Base Rate and LIBOR-based loans ranges between 0.25% and 1.0% and between 1.25% and 2.0% on LIBOR-based loans. | |||||||||
The Credit Agreement also permits us to borrow in Canadian dollars with a sublimit of U.S. $40.0 million. Amounts borrowed in Canadian dollars will bear interest either at the CDOR Rate, plus an additional margin based on the Senior Leverage Ratio ranging from 1.25% to 2.0%, or at the Canadian Prime Rate, plus an additional margin based on the Senior Leverage Ratio ranging from 1.75% to 2.5%. The CDOR Rate is equal to the sum of the annual rate of interest, which is the rate determined as being the arithmetic average of the quotations of all institutions listed in respect of the relevant CDOR interest period for Canadian Dollar denominated bankers’ acceptances, plus 0.1%. The Canadian Prime Rate is equal to the greater of (i) the rate of interest per annum most recently announced or established by JPMorgan Chase Bank, N.A., Toronto Branch as its reference rate in effect on such day for determining interest rates for Canadian Dollar denominated commercial loans in Canada and (ii) the CDOR Rate plus 1.0%. | |||||||||
The Unused Credit Facility Fee is between 0.20% and 0.35% based on the Senior Leverage Ratio. | |||||||||
The Credit Agreement includes a Senior Leverage Ratio covenant, which provides that Consolidated Funded Indebtedness, as of the end of any fiscal quarter, may not exceed 2.5 times Consolidated EBITDA, as defined in the Credit Agreement, over the previous four quarters. For the four quarters ended June 30, 2014, Consolidated EBITDA, as defined in the Credit Agreement, was $87.8 million. Accordingly, at June 30, 2014, the Company had full availability of the $200.0 million credit facility. Consolidated Funded Indebtedness at June 30, 2014 was $29.8 million. | |||||||||
Availability under the credit facility is as follows: | |||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Credit facility availability | $ | 200,000 | $ | 125,000 | |||||
Borrowings outstanding | 11,621 | — | |||||||
Letters of credit | 23,017 | 13,372 | |||||||
Availability under the credit facility | $ | 165,362 | $ | 111,628 | |||||
On September 2, 2014, the Company received a waiver relating to a non-financial technical covenant violation of the Credit Agreement. The violation relates to a program, which the Company has terminated, that permitted the Company to monetize certain trade receivables. The Company is in compliance with all other affirmative, negative, and financial covenants under the Credit Agreement. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The sources of pretax income are as follows: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Domestic | $ | 60,129 | $ | 37,876 | $ | 27,346 | |||||||
Foreign | (3,318 | ) | (1,960 | ) | 3,144 | ||||||||
Total | $ | 56,811 | $ | 35,916 | $ | 30,490 | |||||||
The components of the provision for income taxes are as follows: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 19,870 | $ | 8,260 | $ | 11,320 | |||||||
State | 3,117 | 1,268 | 1,129 | ||||||||||
Foreign | 613 | 449 | 762 | ||||||||||
23,600 | 9,977 | 13,211 | |||||||||||
Deferred: | |||||||||||||
Federal | (3,951 | ) | 1,801 | (151 | ) | ||||||||
State | (51 | ) | 126 | 283 | |||||||||
Foreign | 336 | 4 | (41 | ) | |||||||||
(3,666 | ) | 1,931 | 91 | ||||||||||
$ | 19,934 | $ | 11,908 | $ | 13,302 | ||||||||
The difference between the expected income tax provision applying the domestic federal statutory tax rate and the reported income tax provision is as follows: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Expected provision for Federal income taxes at the statutory rate | $ | 19,887 | $ | 12,570 | $ | 10,670 | |||||||
State income taxes, net of Federal benefit | 2,275 | 1,252 | 970 | ||||||||||
Charges without tax benefit | 1,405 | 1,231 | 1,004 | ||||||||||
Change in valuation allowance | — | (140 | ) | (544 | ) | ||||||||
Cumulative non-deductible expenses | — | — | 2,139 | ||||||||||
IRC S199 deduction | (1,546 | ) | (844 | ) | (687 | ) | |||||||
Research & Development Credit | (1,793 | ) | (1,450 | ) | — | ||||||||
Foreign tax differential | (182 | ) | (160 | ) | — | ||||||||
Other | (112 | ) | (551 | ) | (250 | ) | |||||||
Provision for income taxes | $ | 19,934 | $ | 11,908 | $ | 13,302 | |||||||
Significant components of the Company’s deferred tax assets and liabilities are as follows: | |||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Warranty reserve | $ | 234 | $ | — | |||||||||
Bad debt reserve | 80 | 310 | |||||||||||
Paid-time-off accrual | 712 | 602 | |||||||||||
Insurance reserve | 2,519 | 2,227 | |||||||||||
Legal reserve | 356 | 462 | |||||||||||
Net operating loss benefit and credit carryforwards | 4,061 | 3,885 | |||||||||||
Valuation allowance | (90 | ) | (90 | ) | |||||||||
Accrued compensation and pension | 2,187 | 850 | |||||||||||
Stock compensation expense on nonvested deferred shares | 1,969 | 943 | |||||||||||
Accrued losses | 1,488 | 232 | |||||||||||
Other—net | 314 | 204 | |||||||||||
Total deferred tax assets | 13,830 | 9,625 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Tax over book depreciation | 8,537 | 9,064 | |||||||||||
Tax over book amortization | 1,903 | 1,137 | |||||||||||
Prepaid insurance | 2,104 | 1,217 | |||||||||||
Other—net | 459 | — | |||||||||||
Total deferred tax liabilities | 13,003 | 11,418 | |||||||||||
Net deferred tax asset (liability) | $ | 827 | $ | (1,793 | ) | ||||||||
As reported in the consolidated balance sheets: | |||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Current deferred tax assets | $ | 5,994 | $ | 5,657 | |||||||||
Non-current deferred tax liabilities | (5,167 | ) | (7,450 | ) | |||||||||
Net deferred tax asset (liability) | $ | 827 | $ | (1,793 | ) | ||||||||
The Company has state net operating loss carryforwards, state tax credit carryforwards, federal foreign tax credit carryforwards, foreign net operating loss carryforwards and foreign tax credit carryforwards. The valuation allowance at June 30, 2014 and June 30, 2013 reduces the recognized tax benefit of these carryforwards to an amount that is more likely than not to be realized. These carryforwards will generally expire as shown below: | |||||||||||||
Item | Expiration Period | ||||||||||||
State net operating losses | June 2023 to June 2030 | ||||||||||||
State tax credits | No expiration | ||||||||||||
Federal foreign tax credits | June 2016 to June 2024 | ||||||||||||
Foreign net operating losses | June 2027 to June 2034 | ||||||||||||
Foreign tax credits | Jun-33 | ||||||||||||
In general, it is the practice and intention of the Company to reinvest the earnings of its Canadian subsidiaries in these operations. Such amounts become subject to United States taxation upon the remittance of dividends and under certain other circumstances. As of June 30, 2014, unremitted earnings of foreign subsidiaries, which have been or are intended to be permanently invested, aggregated to approximately $5.1 million. We anticipate that any deferred tax liability related to the investment in these foreign subsidiaries could be offset by foreign tax credits. | |||||||||||||
The Company files tax returns in several taxing jurisdictions in the United States and Canada. With few exceptions, the Company is no longer subject to examination by taxing authorities through fiscal 2008. At June 30, 2014, the Company updated its evaluation of its open tax years in all known jurisdictions. Based on this evaluation, the Company did not identify any material uncertain tax positions. |
Contingencies
Contingencies | 12 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
Insurance Reserves | |
The Company maintains insurance coverage for various aspects of its operations. However, exposure to potential losses is retained through the use of deductibles, self-insured retentions and coverage limits. | |
Typically our contracts require us to indemnify our customers for injury, damage or loss arising from the performance of our services and provide warranties for materials and workmanship. The Company may also be required to name the customer as an additional insured up to the limits of insurance available, or we may be required to purchase special insurance policies or surety bonds for specific customers or provide letters of credit in lieu of bonds to satisfy performance and financial guarantees on some projects. Matrix maintains a performance and payment bonding line sufficient to support the business. The Company generally requires its subcontractors to indemnify the Company and the Company’s customer and name the Company as an additional insured for activities arising out of the subcontractors’ work. We also require certain subcontractors to provide additional insurance policies, including surety bonds in favor of the Company, to secure the subcontractors’ work or as required by the subcontract. | |
There can be no assurance that our insurance and the additional insurance coverage provided by our subcontractors will fully protect us against a valid claim or loss under the contracts with our customers. | |
Unapproved Change Orders and Claims | |
As of June 30, 2014 and June 30, 2013, costs and estimated earnings in excess of billings on uncompleted contracts included revenues for unapproved change orders and claims of $13.1 million and $9.1 million, respectively. Generally, collection of amounts related to unapproved change orders and claims is expected within twelve months. However, customers may not pay these amounts until final resolution of related claims, and accordingly, collection of these amounts may extend beyond one year. | |
Other | |
The Company and its subsidiaries are participants in various legal actions. It is the opinion of management that none of the known legal actions will have a material impact on the Company’s financial position, results of operations or liquidity. |
Operating_Leases
Operating Leases | 12 Months Ended |
Jun. 30, 2014 | |
Leases [Abstract] | ' |
Operating Leases | ' |
Operating Leases | |
The Company is the lessee under operating leases covering real estate and office equipment under non-cancelable operating lease agreements that expire at various times. Future minimum lease payments under non-cancelable operating leases that were in effect at June 30, 2014 total $9.9 million and are payable as follows: fiscal 2015—$4.9 million; fiscal 2016—$3.0 million; fiscal 2017—$1.4 million; fiscal 2018—$0.5 million; fiscal 2019—$0.3 million and thereafter—$0.0 million. Operating lease expense was $5.3 million, $4.5 million and $4.1 million for the twelve months ended June 30, 2014, June 30, 2013 and June 30, 2012, respectively. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders’ Equity | |
Preferred Stock | |
The Company has 5.0 million shares of preferred stock authorized, none of which was issued or outstanding at June 30, 2014 or June 30, 2013. | |
Treasury Shares | |
On November 6, 2012 the Board of Directors approved an extension of a stock buyback program through calendar year 2014. The program allows the Company to purchase up to 2,113,497 shares of common stock provided that such purchases do not exceed $25.0 million in any calendar year if sufficient liquidity exists and we believe that it is in the best interest of the stockholders. The Company has not purchased any shares under this program since the Board of Directors approved the extension. | |
In addition to the stock buyback program, the Company may withhold shares of common stock to satisfy the tax withholding obligations upon vesting of an employee’s deferred shares. Matrix withheld 80,096 and 107,344 shares of common stock during fiscal 2014 and fiscal 2013, respectively, to satisfy these obligations. These shares were returned to the Company’s pool of treasury shares. The Company has 1,453,770 treasury shares as of June 30, 2014 and intends to utilize these treasury shares solely in connection with equity awards under the Company’s stock incentive plans. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||
Total stock-based compensation expense for the twelve months ended June 30, 2014, June 30, 2013, and June 30, 2012 was $5.7 million, $3.8 million and $3.5 million, respectively. Measured but unrecognized stock-based compensation expense at June 30, 2014 was $9.7 million, of which $9.5 million related to nonvested deferred shares and $0.2 million related to stock options. These amounts are expected to be recognized as expense over a weighted average period of 1.8 years. The recognized tax benefit related to the stock-based compensation expense for the 12 months ended June 30, 2014, June 30, 2013 and June 30, 2012 totaled $2.8 million, $1.6 million and $1.3 million, respectively. | |||||||||||||||||||
Plan Information | |||||||||||||||||||
Matrix Service Company's 2012 Stock and Incentive Compensation Plan ("2012 Plan") provides stock-based and cash-based incentives for officers, other key employees and directors. Stock options, restricted stock, restricted stock units, stock appreciation rights, performance shares and cash-based awards can be issued under this plan. All future grants of stock and cash-based awards will be made through the 2012 Plan. Upon approval of the 2012 Plan by the Company's stockholders, the 2004 Stock Incentive Plan ("2004 Plan") was frozen with the exception of normal vesting, forfeiture and other activity associated with awards previously granted under the 2004 Plan. Awards totaling 2,300,000 shares and 1,300,000 shares have been authorized under the 2004 and 2012 Plans, respectively. At June 30, 2014 there were 713,223 shares available for grant under the 2012 Plan. | |||||||||||||||||||
Stock Options | |||||||||||||||||||
Stock options are granted at the market value of the Company’s common stock on the grant date and expire after 10 years. The Company’s policy is to issue shares upon the exercise of stock options from its treasury shares, if available. The Company did not award any new stock options in fiscal years 2013 or 2014. | |||||||||||||||||||
Stock option activity and related information for the year ended June 30, 2014 is as follows: | |||||||||||||||||||
Number of | Weighted-Average | Weighted-Average | Aggregate | ||||||||||||||||
Options | Remaining | Exercise Price | Intrinsic Value | ||||||||||||||||
Contractual Life | |||||||||||||||||||
(Years) | (In thousands) | ||||||||||||||||||
Outstanding at June 30, 2013 | 392,000 | 5.5 | $ | 9.38 | |||||||||||||||
Granted | — | $ | — | ||||||||||||||||
Exercised | (134,450 | ) | $ | 8.78 | $ | 2,394 | |||||||||||||
Cancelled | (12,250 | ) | $ | 10.19 | |||||||||||||||
Outstanding at June 30, 2014 | 245,300 | 6.4 | $ | 9.68 | $ | 5,669 | |||||||||||||
Vested or expected to vest at June 30, 2014 | 243,477 | 6.4 | $ | 9.68 | $ | 5,627 | |||||||||||||
Exercisable at June 30, 2014 | 37,000 | 1 | $ | 6.84 | $ | 960 | |||||||||||||
The Company uses the Black-Scholes option pricing model to estimate grant date fair value for each stock option granted. Expected volatility is based on the historic volatility of the Company’s stock. The risk-free rate is based on the applicable United States Treasury Note rate. The expected life of the option is based on historical and expected future exercise behavior. | |||||||||||||||||||
Assumptions used to calculate the fiscal 2012 grant date fair value and the fair value calculated was as follows: | |||||||||||||||||||
2012 | |||||||||||||||||||
Grant date fair value | $5.61 | ||||||||||||||||||
Risk-free interest rate | 0.88% | ||||||||||||||||||
Expected volatility | 66.19% | ||||||||||||||||||
Expected life in years | 5 | ||||||||||||||||||
Expected dividend yield | — | ||||||||||||||||||
The total intrinsic value of stock options exercised during fiscal 2014, 2013, and 2012 was $2.4 million, $0.6 million and $0.1 million, respectively. | |||||||||||||||||||
The following table summarizes information about stock options at June 30, 2014: | |||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | ||||||||||||||||||
Range of Exercise Price | Options | Weighted- | Weighted- | Options | Weighted- | Weighted- | |||||||||||||
Outstanding | Average | Average | Exercisable | Average | Average | ||||||||||||||
Exercise Price | Remaining | Exercise Price | Remaining | ||||||||||||||||
Contractual Life | Contractual Life | ||||||||||||||||||
(Years) | (Years) | ||||||||||||||||||
$4.60 – $ 5.49 | 20,500 | $ | 5.16 | 1 | 20,500 | $ | 5.16 | 1 | |||||||||||
8.93 – 12.20 | 224,800 | 10.1 | 6.9 | 16,500 | 8.93 | 1.3 | |||||||||||||
$4.60 – $12.20 | 245,300 | $ | 9.68 | 6.4 | 37,000 | $ | 6.84 | 1 | |||||||||||
Nonvested Deferred Shares | |||||||||||||||||||
The Company has issued nonvested deferred shares under the following types of arrangements: | |||||||||||||||||||
• | Time-based awards—Employee awards generally vest in four or five equal annual installments beginning one year after the grant date. Director awards cliff vest on the earlier of three years or upon retirement from the Board. | ||||||||||||||||||
• | Market-based awards—These awards are in the form of performance units which vest 3 years after the grant date only if the Company’s common stock achieves certain levels when compared to the total shareholder return of a peer group of companies as selected by the Compensation Committee of the Board of Directors. The payout is pro-rated and can range from zero to 200% of the original award. These awards are settled entirely in stock. As of June 30, 2014, there are approximately 218,000 and 154,000 performance units that are scheduled to vest in fiscal 2016 and fiscal 2017, respectively. | ||||||||||||||||||
All awards vest upon the death or disability of the participant or upon a change of control of the Company. | |||||||||||||||||||
The grant date fair value of the time-based awards is determined by the market value of the Company's common stock on the grant date. The grant date fair value of the market-based awards is calculated using a Monte Carlo model. For the fiscal 2014 grant, the model estimated the fair value of the award based on approximately 100,000 simulations of the future prices of the Company's common stock compared to the future prices of the common stock of its peer companies based on historical volatilities. The model also took into account the expected dividends over the performance period. | |||||||||||||||||||
Nonvested deferred share activity for the twelve months ended June 30, 2014 is as follows: | |||||||||||||||||||
Shares | Weighted Average Grant | ||||||||||||||||||
Date Fair Value per Share | |||||||||||||||||||
Nonvested shares at June 30, 2013 | 1,030,660 | $ | 10.71 | ||||||||||||||||
Shares granted | 381,038 | $ | 18.01 | ||||||||||||||||
Shares vested and released | (266,029 | ) | $ | 10.41 | |||||||||||||||
Shares cancelled | (39,968 | ) | $ | 11.87 | |||||||||||||||
Nonvested shares at June 30, 2014 | 1,105,701 | $ | 13.22 | ||||||||||||||||
There were 503,268 and 364,600 deferred shares granted in fiscal 2013 and 2012 with average grant date fair values of $10.96 and $9.99, respectively. There were 266,029, 367,449 and 184,149 deferred shares that vested and were released in fiscal 2014, 2013 and 2012 with weighted average fair values of $22.38, $10.69 and $10.23 per share, respectively. |
Earnings_per_Common_Share
Earnings per Common Share | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings per Common Share | ' | ||||||||||||
Earnings per Common Share | |||||||||||||
Basic earnings per share (“EPS”) is calculated based on the weighted average shares outstanding during the period. Diluted earnings per share includes the dilutive effect of employee and director stock options and nonvested deferred shares. Stock options are considered dilutive whenever the exercise price is less than the average market price of the stock during the period and antidilutive whenever the exercise price exceeds the average market price of the common stock during the period. Nonvested deferred shares are considered dilutive (antidilutive) whenever the average market value of the shares during the period exceeds (is less than) the sum or the related average unamortized compensation expense during the period plus the related hypothetical estimated excess tax benefit that will be realized when the shares vest. Stock options and nonvested deferred shares are considered antidilutive in the event we report a net loss. | |||||||||||||
The computation of basic and diluted EPS is as follows: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Basic EPS: | |||||||||||||
Net income attributable to Matrix Service Company | $ | 35,810 | $ | 24,008 | $ | 17,188 | |||||||
Weighted average shares outstanding | 26,288 | 25,962 | 25,921 | ||||||||||
Basic EPS | $ | 1.36 | $ | 0.92 | $ | 0.66 | |||||||
Diluted EPS: | |||||||||||||
Weighted average shares outstanding—basic | 26,288 | 25,962 | 25,921 | ||||||||||
Dilutive stock options | 180 | 81 | 79 | ||||||||||
Dilutive nonvested deferred shares | 508 | 315 | 298 | ||||||||||
Diluted weighted average shares | 26,976 | 26,358 | 26,298 | ||||||||||
Diluted EPS | $ | 1.33 | $ | 0.91 | $ | 0.65 | |||||||
The following securities are considered antidilutive and have been excluded from the calculation of diluted earnings per share: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Stock options | — | 193 | 267 | ||||||||||
Nonvested deferred shares | — | 2 | 3 | ||||||||||
Total antidilutive securities | — | 195 | 270 | ||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||||||||
Employee Benefit Plans | ||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||
The Company sponsors defined contribution savings plans for all eligible employees meeting length of service requirements. Under the primary plan, participants may contribute an amount up to 25% of pretax annual compensation subject to certain limitations. The Company matches 100% of the first 3% of employee contributions and 50% of the next 2% of employee contributions. The Company matching contributions vest immediately. | ||||||||||||||||||||||||
The Company’s matching contributions were $4.1 million, $3.4 million and $3.3 million for the twelve months ended June 30, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||
Multiemployer Pension Plans | ||||||||||||||||||||||||
The Company contributes to various union sponsored multiemployer benefit plans in the U.S. and Canada. Benefits under these plans are generally based on compensation levels and years of service. | ||||||||||||||||||||||||
For the Company, the financial risks of participating in multiemployer plans are different from single-employer plans in the following respects: | ||||||||||||||||||||||||
• | Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. | |||||||||||||||||||||||
• | If a participating employer discontinues contributions to a plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | |||||||||||||||||||||||
• | If a participating employer chooses to stop participating in a plan, a withdrawal liability may be created based on the unfunded vested benefits for all employees in the plan. | |||||||||||||||||||||||
Under federal legislation regarding multiemployer pension plans, in the event of a withdrawal from a plan or plan termination, companies are required to continue funding their proportionate share of such plan’s unfunded vested benefits. We are a participant in multiple union sponsored multiemployer plans, and, as a plan participant, our potential obligation could be significant. The amount of the potential obligation is not currently ascertainable because the information required to determine such amount is not identifiable or readily available. | ||||||||||||||||||||||||
Our participation in significant plans for the fiscal year ended June 30, 2014 is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three digit plan number. The zone status is based on the latest information that the Company received from the plan and is certified by the plan’s actuary. Plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are generally less than 80 percent funded, and plans in the green zone are generally at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. The “Surcharge Imposed” column includes plans in a red zone status that require a payment of a surcharge in excess of regular contributions. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. | ||||||||||||||||||||||||
Pension Fund | EIN/Pension | Pension | FIP/RP | Company Contributions | Surcharge | Expiration | ||||||||||||||||||
Plan Number | Protection Act | Status | Fiscal Year | Imposed | Date of | |||||||||||||||||||
Zone Status | Pending or | Collective- | ||||||||||||||||||||||
Implemented | Bargaining | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | Agreement | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Joint Pension Fund Local Union 164 IBEW (1) | 22-6031199/001 | Yellow | Yellow | Yes | $ | 2,955 | $ | 3,943 | $ | 1,538 | No | 5/31/17 | ||||||||||||
Boilermaker-Blacksmith National Pension Trust | 48-6168020/001 | Yellow | Yellow | Yes | 3,271 | 2,882 | 2,845 | No | Described below (2) | |||||||||||||||
Joint Pension Fund of Local Union No 102 | 22-1615726/001 | Green | Green | Yes | 2,381 | 2,387 | 1,608 | No | 5/31/15 | |||||||||||||||
IBEW Local 456 Pension Plan | 22-6238995/001 | Yellow | Yellow | Yes | 940 | 2,384 | 977 | No | 5/31/17 | |||||||||||||||
Local 351 IBEW Pension Plan | 22-3417366/001 | Described below (3) | Yellow | Yes | 2,218 | 2,281 | 1,140 | No | 9/27/16 | |||||||||||||||
Steamfitters Local Union No 420 Pension Plan | 23-2004424/001 | Red | Red | Yes | 1,677 | 1,622 | 813 | Yes | 4/30/17 | |||||||||||||||
Indiana Laborers Pension Fund | 35-6027150/001 | Yellow | Yellow | Yes | 1,268 | — | — | No | 5/31/17 | |||||||||||||||
Iron Workers Mid-America Pension Plan | 36-6488227/001 | Green | Green | N/A | 1,156 | — | — | No | 5/31/15 | |||||||||||||||
Contributions to other multiemployer plans | 14,503 | 8,966 | 7,616 | |||||||||||||||||||||
Total contributions made | $ | 30,369 | $ | 24,465 | $ | 16,537 | ||||||||||||||||||
-1 | Our contributions for the Joint Pension Fund Local Union 164 IBEW exceeded 5% of total contributions for the 2012 plan year. This information was not available for the 2013 plan year. | |||||||||||||||||||||||
-2 | Our collective bargaining agreements with the Boilermaker-Blacksmith National Pension Trust are under a National Maintenance Agreement platform which is evergreen in terms of expiration. However, the agreements allow for termination of the collective bargaining agreement by either party with a predetermined written notice. | |||||||||||||||||||||||
-3 | For the Local 351 IBEW Pension Plan, the Company has not received a funding notification that covers the Company's fiscal year 2014 during the preparation of this Form 10-K. Under Federal pension law, if a multiemployer pension plan is determined to be in critical or endangered status, the plan must provide notice of this status to participants, beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Department of Labor. The Company also observed that the Local 351 IBEW Pension Plan has not submitted any Critical or Endangered Status Notices to the Department of Labor for 2014 (which can be accessed at http://www.dol.gov/ebsa/criticalstatusnotices.html). | |||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||||
The Matrix Service Company 2011 Employee Stock Purchase Plan (“ESPP”) was effective January 1, 2011. The ESPP allows employees to purchase shares through payroll deductions and members of the Board of Directors to purchase shares from amounts withheld from their cash retainers. Share purchases are limited to an aggregate market value of no greater than $60,000 per calendar year per participant and are purchased at market value with no discount to the participant. Contributions are with after tax earnings and are accumulated in non-interest bearing accounts for quarterly purchases of company stock. Upon the purchase of shares, the participants receive all stockholder rights including dividend and voting rights, and are permitted to sell their shares at any time. The Company has made 1,000,000 shares available under the ESPP. The ESPP can be terminated at the discretion of the Board of Directors or on January 2, 2021. Shares are issued from Treasury Stock under the ESPP. There were 5,440 shares issued in fiscal 2014, 4,452 shares in fiscal 2013, and 4,395 shares in fiscal 2012. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||
Segment Information | |||||||||||||||||||||||||
We operate our business through four reportable segments: Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions, and Industrial. | |||||||||||||||||||||||||
The Electrical Infrastructure segment primarily encompasses construction and maintenance services to a variety of power generation facilities, such as combined cycle plants, natural gas fired power stations, and renewable energy installations. We also provide high voltage services to investor owned utilities, including construction of new substations, upgrades of existing substations, short-run transmission line installations, distribution upgrades and maintenance, and storm restoration services. | |||||||||||||||||||||||||
The Oil Gas & Chemical segment includes our traditional turnaround activities, plant maintenance services and construction in the downstream petroleum industry. Another key offering is industrial cleaning services, which include hydroblasting, hydroexcavating, chemical cleaning and vacuum services. We also perform work in the petrochemical, natural gas, gas processing and compression, and upstream petroleum markets. | |||||||||||||||||||||||||
The Storage Solutions segment includes new construction of crude and refined products ASTs, as well as planned and emergency maintenance services. Also included in the Storage Solutions segment is work related to specialty storage tanks including LNG, liquid nitrogen/liquid oxygen LIN/LOX, LPG tanks and other specialty vessels including spheres. We also offer aboveground storage tank products including floating roof seals. Finally, the Storage Solutions segment includes balance of plant work in storage terminals and tank farms. | |||||||||||||||||||||||||
The Industrial segment includes construction and maintenance work in the iron and steel and mining and minerals industries, bulk material handling and fertilizer production facilities, as well as work for clients in other industrial markets. | |||||||||||||||||||||||||
The Company evaluates performance and allocates resources based on operating income. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are recorded at cost; therefore, no intercompany profit or loss recognized. | |||||||||||||||||||||||||
Segment assets consist primarily of accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts, property, plant and equipment and goodwill. | |||||||||||||||||||||||||
Results of Operations | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Electrical | Oil Gas & | Storage | Industrial | Unallocated Corporate | Total | ||||||||||||||||||||
Infrastructure | Chemical | Solutions | |||||||||||||||||||||||
Twelve months ended June 30, 2014 | |||||||||||||||||||||||||
Gross revenues | $ | 205,570 | $ | 240,131 | $ | 611,826 | $ | 206,933 | $ | — | $ | 1,264,460 | |||||||||||||
Less: inter-segment revenues | — | 441 | 930 | — | 1,371 | ||||||||||||||||||||
Consolidated revenues | 205,570 | 239,690 | 610,896 | 206,933 | — | 1,263,089 | |||||||||||||||||||
Gross profit | 20,629 | 26,912 | 68,448 | 20,484 | — | 136,473 | |||||||||||||||||||
Operating income | 7,703 | 9,939 | 34,310 | 6,655 | — | 58,607 | |||||||||||||||||||
Segment assets | 120,264 | 72,406 | 200,493 | 105,049 | 70,720 | 568,932 | |||||||||||||||||||
Capital expenditures | 9,055 | 5,421 | 2,519 | 1,157 | 5,437 | 23,589 | |||||||||||||||||||
Depreciation and amortization expense | 3,292 | 3,768 | 7,707 | 3,751 | — | 18,518 | |||||||||||||||||||
Twelve months ended June 30, 2013 | |||||||||||||||||||||||||
Gross revenues | $ | 171,204 | $ | 273,979 | $ | 395,794 | $ | 54,321 | $ | — | $ | 895,298 | |||||||||||||
Less: inter-segment revenues | — | 131 | 2,593 | — | — | 2,724 | |||||||||||||||||||
Consolidated revenues | 171,204 | 273,848 | 393,201 | 54,321 | — | 892,574 | |||||||||||||||||||
Gross profit | 21,754 | 32,879 | 37,455 | 2,614 | — | 94,702 | |||||||||||||||||||
Operating income (loss) | 11,185 | 15,415 | 11,904 | (1,790 | ) | — | 36,714 | ||||||||||||||||||
Segment assets | 64,771 | 75,591 | 159,149 | 27,347 | 83,120 | 409,978 | |||||||||||||||||||
Capital expenditures | 2,129 | 2,942 | 9,929 | 1,645 | 6,586 | 23,231 | |||||||||||||||||||
Depreciation and amortization expense | 2,167 | 2,943 | 6,740 | 932 | — | 12,782 | |||||||||||||||||||
Twelve months ended June 30, 2012 | |||||||||||||||||||||||||
Gross revenues | $ | 135,086 | $ | 206,031 | $ | 380,488 | $ | 19,983 | $ | — | $ | 741,588 | |||||||||||||
Less: inter-segment revenues | — | 208 | 2,334 | — | — | 2,542 | |||||||||||||||||||
Consolidated revenues | 135,086 | 205,823 | 378,154 | 19,983 | — | 739,046 | |||||||||||||||||||
Gross profit | 16,676 | 20,070 | 42,393 | 479 | — | 79,618 | |||||||||||||||||||
Operating income (loss) | 7,609 | 8,134 | 17,493 | (1,601 | ) | — | 31,635 | ||||||||||||||||||
Segment assets | 51,998 | 53,567 | 150,543 | 14,018 | 53,009 | 323,135 | |||||||||||||||||||
Capital expenditures | 2,581 | 2,346 | 3,929 | 741 | 3,937 | 13,534 | |||||||||||||||||||
Depreciation and amortization expense | 1,823 | 2,838 | 6,309 | 515 | — | 11,485 | |||||||||||||||||||
Geographical information is as follows: | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Domestic | $ | 1,149,262 | $ | 814,879 | $ | 674,496 | |||||||||||||||||||
International | 113,827 | 77,695 | 64,550 | ||||||||||||||||||||||
$ | 1,263,089 | $ | 892,574 | $ | 739,046 | ||||||||||||||||||||
Long-Lived Assets | |||||||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Domestic | $ | 164,894 | $ | 101,581 | $ | 85,290 | |||||||||||||||||||
International | 28,490 | 12,378 | 6,132 | ||||||||||||||||||||||
$ | 193,384 | $ | 113,959 | $ | 91,422 | ||||||||||||||||||||
Information about Significant Customers | |||||||||||||||||||||||||
In fiscal 2014, two customers accounted for 17.3% and 12.7% of our consolidated revenue and 35.8% and 26.3% of our Storage Solutions revenue, respectively. Four other customers accounted for 20.8%, 17.5%, 17.0%, and 10.8% of our Electrical Infrastructure revenue, respectively. An additional three customers accounted for 18.3%, 14.0%, and 10.2% of our Oil Gas & Chemical revenue, respectively. Five more customers accounted for 23.3%, 15.1%, 13.0%, 12.7%, and 11.3% of our Industrial revenue, respectively. | |||||||||||||||||||||||||
In fiscal 2013, one customer accounted for 10.7% of our consolidated revenue and 24.3% of our Storage Solutions revenue and an additional customer accounted for 10.6% of our Storage Solutions revenue. Four other customers accounted for 24.9%, 19.6%, 12.6% and 11.1% of our Electrical Infrastructure revenue, respectively. An additional three customers accounted for 20.7%, 16.1% and 10.0% of our Oil Gas & Chemical revenue, respectively. Three more customers accounted for 23.3%, 20.5% and 16.4% of our Industrial revenue, respectively. | |||||||||||||||||||||||||
In fiscal 2012, one customer accounted for 11.0% of our consolidated revenue and 35.1% of our Oil Gas & Chemical revenue and an additional customer accounted for 16.2% of our Oil Gas & Chemical revenue. Another customer accounted for 10.7% of our consolidated revenue and 20.9% of our Storage Solutions revenue. Three other customers accounted for 18.6%, 11.8% and 11.2% of our Electrical Infrastructure revenue, respectively. An additional four customers accounted for 25.7%, 18.1%, 15.3% and 12.2% of our Industrial revenue, respectively. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 12 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 14—Subsequent Event | |
On August 22, 2014 the Company purchased substantially all of the assets of HDB Ltd. Limited Partnership ("HDB"). HDB, with an office in Bakersfield, California provides construction, fabrication and turnaround services to energy companies throughout California’s central valley. The acquisition advances a strategic goal of the Company's to expand into the upstream energy market. The acquisition purchase price was $5.25 million and was funded with cash on hand. The accounting for this acquisition is incomplete; however, the Company does not expect the impact of the acquisition to be material to the financial statements. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Matrix Service Company | |||||||||||||||||
Quarterly Financial Data (Unaudited) | |||||||||||||||||
Fiscal Years Ended June 30, 2014 and June 30, 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Fiscal Year 2014 | |||||||||||||||||
Revenues | $ | 226,217 | $ | 310,998 | $ | 381,516 | $ | 344,358 | |||||||||
Gross profit | 25,476 | 34,150 | 39,944 | 36,903 | |||||||||||||
Operating income | 10,762 | 14,817 | 18,819 | 14,209 | |||||||||||||
Net income | 6,552 | 10,306 | 11,396 | 7,556 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | 0.25 | 0.39 | 0.43 | 0.29 | |||||||||||||
Diluted | 0.25 | 0.38 | 0.42 | 0.28 | |||||||||||||
Fiscal Year 2013 | |||||||||||||||||
Revenues | $ | 209,608 | $ | 221,436 | $ | 225,970 | $ | 235,560 | |||||||||
Gross profit | 22,244 | 22,333 | 23,126 | 26,999 | |||||||||||||
Operating income | 7,924 | 8,722 | 8,431 | 11,587 | |||||||||||||
Net income | 4,684 | 5,436 | 6,521 | 7,367 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | 0.18 | 0.21 | 0.25 | 0.28 | |||||||||||||
Diluted | 0.18 | 0.21 | 0.25 | 0.28 | |||||||||||||
The sum of earnings per share for the four quarters may not equal the total earnings per share for the year due to changes in the average number of common shares outstanding and rounding. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||||||
Valuation and Qualifying Accounts | ' | |||||||||||||||||||||||
Matrix Service Company | ||||||||||||||||||||||||
Schedule II—Valuation and Qualifying Accounts | ||||||||||||||||||||||||
June 30, 2014, June 30, 2013, and June 30, 2012 | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
COL. A | COL. B | COL. C | COL. D | COL. E | ||||||||||||||||||||
ADDITIONS | ||||||||||||||||||||||||
Balance at | Charged to | Charged to Other | Deductions—Describe | Balance at | ||||||||||||||||||||
Beginning of | Costs and | Accounts—Describe | End of | |||||||||||||||||||||
Period | Expenses | Period | ||||||||||||||||||||||
Fiscal Year 2014 | ||||||||||||||||||||||||
Deducted from asset accounts: | ||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 795 | $ | 121 | $ | — | $ | (712 | ) | (A) | $ | 204 | ||||||||||||
Valuation reserve for deferred tax assets | 90 | — | — | — | 90 | |||||||||||||||||||
Total | $ | 885 | $ | 121 | $ | — | $ | (712 | ) | $ | 294 | |||||||||||||
Fiscal Year 2013 | ||||||||||||||||||||||||
Deducted from asset accounts: | ||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,201 | $ | 725 | $ | (666 | ) | (C) | $ | (465 | ) | $ | 795 | |||||||||||
Valuation reserve for deferred tax assets | 230 | (140 | ) | (B) | — | — | 90 | |||||||||||||||||
Total | $ | 1,431 | $ | 585 | $ | (666 | ) | $ | (465 | ) | $ | 885 | ||||||||||||
Fiscal Year 2012 | ||||||||||||||||||||||||
Deducted from asset accounts: | ||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,428 | $ | 23 | $ | (250 | ) | $ | — | $ | 1,201 | |||||||||||||
Valuation reserve for deferred tax assets | 774 | (544 | ) | — | — | 230 | ||||||||||||||||||
Total | $ | 2,202 | $ | (521 | ) | $ | (250 | ) | $ | — | $ | 1,431 | ||||||||||||
(A) | Receivables written off against allowance for doubtful accounts. | |||||||||||||||||||||||
(B) | Release of the valuation allowance on foreign tax credit carryovers which have now been determined to be utilizable | |||||||||||||||||||||||
(C) | Collection of a fully reserved receivable recognized as revenue |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Organization and Basis of Presentation | ' | |
Organization and Basis of Presentation | ||
The consolidated financial statements include the accounts of Matrix Service Company (“Matrix” or the “Company”) and its subsidiaries, all of which are wholly owned. Intercompany transactions and balances have been eliminated in consolidation. | ||
The Company operates in the United States and Canada. The Company’s reportable segments are Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions and Industrial. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We believe the most significant estimates and judgments are associated with revenue recognition, the recoverability tests that must be periodically performed with respect to our goodwill and other intangible assets, valuation reserves on our accounts receivable and deferred tax assets, and the estimation of loss contingencies, including liabilities associated with litigation and with the self insured retentions on our insurance programs. Actual results could materially differ from those estimates. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Matrix records profits on fixed-price contracts on a percentage-of-completion basis, primarily based on costs incurred to date compared to the total estimated contract cost. The Company records revenue on reimbursable and time and material contracts on a proportional performance basis as costs are incurred. Contracts in process are valued at cost plus accrued profits less billings on uncompleted contracts. Contracts are generally considered substantially complete when field construction is completed. The elapsed time from award of a contract to completion of performance may be in excess of one year. Matrix includes pass-through revenue and costs on cost-plus contracts, which are customer-reimbursable materials, equipment and subcontractor costs, when Matrix determines that it is responsible for the procurement and management of such cost components. | ||
Matrix has numerous contracts that are in various stages of completion which require estimates to determine the appropriate cost and revenue recognition. The Company has a history of making reasonably dependable estimates of the extent of progress towards completion, contract revenues and contract costs, and accordingly, does not believe significant fluctuations are likely to materialize. However, current estimates may be revised as additional information becomes available. If estimates of costs to complete fixed-price contracts indicate a loss, provision is made through a contract write-down for the total loss anticipated. A number of our contracts contain various cost and performance incentives and penalties that impact the earnings we realize from our contracts, and adjustments related to these incentives and penalties are recorded in the period, on a percentage-of-completion basis, when estimable and probable. | ||
Indirect costs, such as salaries and benefits, supplies and tools, equipment costs and insurance costs, are charged to projects based upon direct labor hours and overhead allocation rates per direct labor hour. Warranty costs are normally incurred prior to project completion and are charged to project costs as they are incurred. Warranty costs incurred subsequent to project completion were not material for the periods presented. Overhead allocation rates are established annually during the budgeting process. | ||
Precontract Costs | ' | |
Precontract Costs | ||
Precontract costs are expensed as incurred. | ||
Change Orders and Claims Recognition | ' | |
Change Orders and Claims Recognition | ||
Change orders are modifications of an original contract that effectively change the existing provisions of the contract. Change orders may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Matrix or our clients may initiate change orders. The client's agreement to the terms of change orders is, in many cases, reached prior to work commencing; however, sometimes circumstances require that work progress prior to obtaining client agreement. Costs related to change orders are recognized as incurred. Revenues attributable to change orders that are unapproved as to price or scope are recognized to the extent that costs have been incurred if the amounts can be reliably estimated and their realization is probable. Revenues in excess of the costs attributable to change orders that are unapproved as to price or scope are recognized only when realization is assured beyond a reasonable doubt. Change orders that are unapproved as to both price and scope are evaluated as claims. | ||
Claims are amounts in excess of the agreed contract price that we seek to collect from customers or others for delays, errors in specifications and designs, contract terminations, change orders in dispute or unapproved as to both scope and price or other causes of anticipated additional costs incurred by us. Recognition of amounts as additional contract revenue related to claims is appropriate only if it is probable that the claims will result in additional contract revenue and if the amount can be reliably estimated. We must determine if: | ||
• | there is a legal basis for the claim; | |
• | the additional costs were caused by circumstances that were unforeseen by the Company and are not the result of deficiencies in our performance; | |
• | the costs are identifiable or determinable and are reasonable in view of the work performed; and | |
• | the evidence supporting the claim is objective and verifiable. | |
If all of these requirements are met, revenue from a claim is recorded only to the extent that we have incurred costs relating to the claim. Unapproved change orders and claims are more fully discussed in Note 7—Contingencies. | ||
Cash Equivalents | ' | |
Cash Equivalents | ||
The Company includes as cash equivalents all investments with original maturities of three months or less which are readily convertible into cash. The Company had approximately $0.3 million of restricted cash related to a customer deposit at June 30, 2014 and $0.3 million of restricted cash at June 30, 2013. | ||
Accounts Receivable | ' | |
Accounts Receivable | ||
Accounts receivable are carried on a gross basis, less the allowance for uncollectible accounts. The Company’s customers consist primarily of major integrated oil companies, independent refiners and marketers, power companies, petrochemical companies, pipeline companies, mining companies, contractors and engineering firms. The Company is exposed to the risk of individual customer defaults or depressed cycles in our customers’ industries. To mitigate this risk many of our contracts require payment as projects progress or advance payment in some circumstances. In addition, in most cases the Company can place liens against the property, plant or equipment constructed or terminate the contract if a material contract default occurs. Management estimates the allowance for uncollectible accounts based on existing economic conditions, the financial condition of its customers and the amount and age of past due accounts. Accounts are written off against the allowance for uncollectible accounts only after all collection attempts have been exhausted. | ||
Retentions | ' | |
Accounts receivable are carried on a gross basis, less the allowance for uncollectible accounts. The Company’s customers consist primarily of major integrated oil companies, independent refiners and marketers, power companies, petrochemical companies, pipeline companies, mining companies, contractors and engineering fir | ||
Loss Contingencies | ' | |
Loss Contingencies | ||
Various legal actions, claims and other contingencies arise in the normal course of our business. Contingencies are recorded in the consolidated financial statements, or are otherwise disclosed, in accordance with ASC 450-20, “Loss Contingencies”. Specific reserves are provided for loss contingencies to the extent we conclude that a loss is both probable and estimable. We use a case-by-case evaluation of the underlying data and update our evaluation as further information becomes known. We believe that any amounts exceeding our recorded accruals should not materially affect our financial position, results of operations or liquidity. However, the results of litigation are inherently unpredictable and the possibility exists that the ultimate resolution of one or more of these matters could result in a material effect on our financial position, results of operations or liquidity. | ||
Legal costs are expensed as incurred. | ||
Inventories | ' | |
Inventories | ||
Inventories consist primarily of steel plate and pipe and are stated at the lower of cost or net realizable value. Cost is determined primarily using the average cost method. | ||
Depreciation | ' | |
Depreciation | ||
Depreciation is computed using the straight-line method over the estimated useful lives of the depreciable assets. Depreciable lives are as follows: buildings—40 years, construction equipment—3 to 15 years, transportation equipment—3 to 5 years, and office equipment and software—3 to 10 years. Leasehold improvements are amortized over the shorter of the useful life of the asset or the lease term. | ||
Internal Use Computer Software | ' | |
Internal-Use Computer Software | ||
We expense or capitalize costs associated with the development of internal-use software as follows: | ||
Preliminary Project Stage: Both internal and external costs incurred during this stage are expensed as incurred. | ||
Application Development Stage: Both internal and external costs incurred to purchase or develop computer software are capitalized after the preliminary project stage is completed and management authorizes the computer software project. However, training costs and data conversion costs, which includes purging or cleansing of existing data, reconciling or balancing of data, are expensed as incurred. | ||
Post-Implementation/Operation Stage: All training costs and maintenance costs incurred during this stage are expensed as incurred. | ||
Costs of upgrades and enhancements are capitalized if the expenditures will result in adding functionality to the software. Capitalized software costs are depreciated using the straight-line method over the estimated useful life of the related software, which may be up to ten years. | ||
Impairment of Long-Lived Assets | ' | |
Impairment of Long-Lived Assets | ||
The Company evaluates long-lived assets for impairment when events or changes in circumstances indicate, in management’s judgment, that the carrying value of such assets used in operations may not be recoverable. The determination of whether an impairment has occurred is based on management’s estimate of undiscounted future cash flows attributable to the assets as compared to the carrying value of the assets. If an impairment has occurred, the amount of the impairment recognized is determined by estimating the fair value of the assets and, to the extent the carrying value exceeds the fair value of the assets, recording a loss provision. | ||
For assets identified to be disposed of in the future, the carrying value of the assets are compared to the estimated fair value less the cost of disposal to determine if an impairment has occurred. Until the assets are disposed of, an estimate of the fair value is redetermined when related events or circumstances change. | ||
Goodwill | ' | |
Goodwill | ||
Goodwill represents the excess of the purchase price of acquisitions over the acquisition date fair value of the net identifiable tangible and intangible assets acquired. In accordance with current accounting guidance, goodwill is not amortized and is tested at least annually for impairment at the reporting unit level. | ||
We perform our annual analysis during the fourth quarter of each fiscal year and in any other period in which indicators of impairment warrant additional analysis. Goodwill impairment reviews involve a two-step process. Goodwill is first evaluated for impairment by comparing management’s estimate of the fair value of a reporting unit with its carrying value, including goodwill. | ||
Management utilizes a discounted cash flow analysis, referred to as an income approach, to determine the estimated fair value of our reporting units. Significant judgments and assumptions including the discount rate, anticipated revenue growth rate and gross margins, estimated operating and interest expense, and capital expenditures are inherent in these fair value estimates, which are based on our operating and capital budgets and on our strategic plan. As a result, actual results may differ from the estimates utilized in our income approach. The use of alternate judgments and/or assumptions could result in a fair value that differs from our estimate and could result in the recognition of an impairment charge in the financial statements. As a result of these uncertainties, we utilize multiple scenarios and assign probabilities to each of the scenarios in the income approach. | ||
We also consider indications obtained from market-based approaches. We compare market multiples derived from market prices of stock of companies that are engaged in a similar line of business to the corresponding measures of the Company. We also consider the combined carrying values of our reporting units to our market capitalization. | ||
If the carrying value of our reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment. The amount of impairment is determined by comparing the implied fair value of the reporting unit's goodwill to the carrying value of the goodwill calculated in the same manner as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill is less than its carrying value, we would record an impairment charge for the difference. | ||
Other Intangible Assets | ' | |
Other Intangible Assets | ||
Intangible assets that have finite useful lives are amortized by the straight-line method over their useful lives ranging from 1 to 15 years. Intangible assets that have indefinite useful lives are not amortized but are tested at least annually for impairment. Each reporting period, we evaluate the remaining useful lives of intangible assets not being amortized to determine whether facts and circumstances continue to support an indefinite useful life. Intangible assets are considered impaired if the fair value of the intangible asset is less than its net book value. If quoted market prices are not available, the fair values of the intangible assets are based on present values of expected future cash flows or royalties avoided using discount rates commensurate with the risks involved. | ||
Insurance Reserves | ' | |
Insurance Reserves | ||
We maintain insurance coverage for various aspects of our operations. However, we retain exposure to potential losses through the use of deductibles, coverage limits and self-insured retentions. We establish reserves for claims using a combination of actuarially determined estimates and case-by-case evaluations of the underlying claim data and update our evaluations as further information becomes known. Judgments and assumptions are inherent in our reserve accruals; as a result, changes in assumptions or claims experience could result in changes to these estimates in the future. If actual results of claim settlements are different than the amounts estimated we may be exposed to future gains and losses that could be material. | ||
Stock-Based Compensation | ' | |
Stock-Based Compensation | ||
The Company has issued stock options and nonvested deferred share awards under its long-term incentive compensation plans. The fair value of these awards is calculated at grant date. The fair value of time-based, nonvested deferred shares is the value of the Company’s common stock at the grant date. The fair value of market-based nonvested deferred shares is based on several factors, including the probability that the market condition specified in the grant will be achieved. The fair value of stock options is determined based on the Black-Scholes option pricing model. The detailed assumptions used in the model are included in Note 10—Stock Based Compensation. | ||
For all stock-based awards, expense is recognized over the requisite service period, net of estimated forfeitures. The expense related to performance based shares is recognized only if management believes it is probable that the performance targets specified in the awards will be achieved. | ||
Income Taxes | ' | |
Income Taxes | ||
The Company complies with ASC 740, “Income Taxes”. Deferred income taxes are computed using the liability method whereby deferred tax assets and liabilities are recognized based on temporary differences between the financial statement and tax basis of assets and liabilities using presently enacted tax rates. Valuation allowances are established against deferred tax assets to the extent management believes that it is not probable that the assets will be recovered. | ||
The Company provides for income taxes regardless of whether it has received a tax assessment. Taxes are provided when we consider it probable that additional taxes will be due in excess of the amounts included in our tax returns. We continually review our exposure to additional income taxes due, and as further information is known or events occur, adjustments may be recorded. | ||
Foreign Currency | ' | |
Foreign Currency | ||
The functional currency of the Company’s operations in Canada is the Canadian dollar. The assets and liabilities are translated at the year end exchange rate and the income statement accounts are translated at average exchange rates throughout the year. Translation gains and losses are reported in Accumulated Other Comprehensive Income (Loss) in the Consolidated Statements of Changes in Stockholders’ Equity and in Other Comprehensive Income (Loss) in the Consolidated Statements of Comprehensive Income. Transaction gains and losses are reported as a component of Other income (expense) in the Consolidated Statements of Income. | ||
Recently Issued Accounting Standards | ' | |
Recently Issued Accounting Standards | ||
Accounting Standards Update 2014-09 (Topic 606), Revenue from Contracts with Customers | ||
In May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers." The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity: | ||
• Identifies the contract(s) with a customer (step 1). | ||
• Identifies the performance obligations in the contract (step 2). | ||
• Determines the transaction price (step 3). | ||
• Allocates the transaction price to the performance obligations in the contract (step 4). | ||
• Recognizes revenue when (or as) the entity satisfies a performance obligation (step 5). | ||
The ASU also requires entities to disclose both quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU’s disclosure requirements are significantly more comprehensive than those in existing revenue standards. The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification ("ASC"). For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. We expect to adopt this standard in fiscal 2018 and are currently evaluating its expected impact on our financial statements. | ||
Accounting Standards Update 2014- 12 (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force "EITF") | ||
On June 19, 2014, the FASB issued ASU 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force)" in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. For all entities, the ASU is effective for reporting periods beginning after December 15, 2015. Early adoption is permitted. We expect to adopt this standard in fiscal 2016 and do not expect the adoption of this standard to have a material impact on our consolidated financial statements. | ||
Accounting Standards Update 2014-08 (Topics 205 and 360), Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity | ||
On April 10, 2014, the FASB issued ASU 2014-08, " Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued-operations criteria. The FASB issued the ASU to provide more decision-useful information and to make it more difficult for a disposal transaction to qualify as a discontinued operation (since the FASB believes that too many disposal transactions were qualifying as discontinued operations under the old definition). Under the previous guidance in ASC 205-20-45-1, the results of operations of a component of an entity were classified as a discontinued operation if all of the following conditions were met: | ||
• "The component “has been disposed of or is classified as held for sale.” | ||
• “The operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity | ||
as a result of the disposal transaction.” | ||
• “The entity will not have any significant continuing involvement in the operations of the component after the disposal | ||
transaction.” | ||
The new guidance eliminates the second and third criteria above and instead requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. The ASU also expands the scope of ASC 205-20 to disposals of equity method investments and businesses that, upon initial acquisition, qualify as held for sale.The ASU is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted. We expect to adopt this standard in fiscal 2015 and do not expect the adoption of this standard to have a material impact on our consolidated financial statements. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Business Acquisition [Line Items] | ' | ||||||
Business Acquisition, Pro Forma Information | ' | ||||||
The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at July 1, 2012 nor should it be taken as indicative of our future consolidated results of operations. | |||||||
June 30, | June 30, | ||||||
2014 | 2013 | ||||||
(In thousands, except per share data) | |||||||
Revenues | $ | 1,397,706 | $ | 1,096,267 | |||
Net income attributable to Matrix Service Company | $ | 38,786 | $ | 28,444 | |||
Basic earnings per common share | $ | 1.48 | $ | 1.1 | |||
Diluted earnings per common share | $ | 1.44 | $ | 1.08 | |||
Kvaerner North American Construction [Member] | ' | ||||||
Business Acquisition [Line Items] | ' | ||||||
Schedule of Business Acquisitions, by Acquisition | ' | ||||||
The following table summarizes the preliminary purchase price allocation (in thousands): | |||||||
Current assets | $ | 83,575 | |||||
Property, plant and equipment | 11,377 | ||||||
Goodwill | 39,076 | ||||||
Other intangible assets | 24,009 | ||||||
Total assets acquired | 158,037 | ||||||
Current liabilities | 67,959 | ||||||
Deferred income taxes | 1,116 | ||||||
Noncontrolling interest of consolidated joint venture | 700 | ||||||
Net assets acquired | 88,262 | ||||||
Cash acquired | 36,655 | ||||||
Net purchase price | $ | 51,607 | |||||
Pelichem Industrial Cleaning Services, LLC [Member] | ' | ||||||
Business Acquisition [Line Items] | ' | ||||||
Schedule of Business Acquisitions, by Acquisition | ' | ||||||
The following table summarizes the final purchase price allocation: | |||||||
Current assets | $ | 1,112 | |||||
Property, plant and equipment | 4,299 | ||||||
Tax deductible goodwill | 2,247 | ||||||
Other intangible assets | 1,853 | ||||||
Total assets acquired | 9,511 | ||||||
Current liabilities | 117 | ||||||
Net assets acquired | $ | 9,394 | |||||
Customer_Contracts_Tables
Customer Contracts (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Contractors [Abstract] | ' | ||||||||
Gross and net amount of uncompleted contracts | ' | ||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Costs and estimated earnings recognized on uncompleted contracts | $ | 1,435,242 | $ | 802,588 | |||||
Billings on uncompleted contracts | 1,470,674 | 791,663 | |||||||
$ | (35,432 | ) | $ | 10,925 | |||||
Shown on balance sheet as: | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 73,008 | $ | 73,773 | |||||
Billings on uncompleted contracts in excess of costs and estimated earnings | 108,440 | 62,848 | |||||||
$ | (35,432 | ) | $ | 10,925 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Carrying value of goodwill by segment | ' | ||||||||||||||||||||
The changes in the carrying amount of goodwill by segment are as follows: | |||||||||||||||||||||
Electrical | Oil Gas & | Storage | Industrial | Total | |||||||||||||||||
Infrastructure | Chemical | Solutions | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Goodwill | $ | 29,666 | $ | 5,841 | $ | 11,071 | $ | 7,097 | $ | 53,675 | |||||||||||
Cumulative impairment loss | (17,653 | ) | (3,000 | ) | (922 | ) | (3,425 | ) | (25,000 | ) | |||||||||||
Net balance at June 30, 2012 | 12,013 | 2,841 | 10,149 | 3,672 | 28,675 | ||||||||||||||||
Purchase of Pelichem (Note 2) | — | 2,247 | — | — | 2,247 | ||||||||||||||||
Translation adjustment | — | — | (86 | ) | — | (86 | ) | ||||||||||||||
Net balance at June 30, 2013 | 12,013 | 5,088 | 10,063 | 3,672 | 30,836 | ||||||||||||||||
Purchase of Kvaerner North American Construction (Note 2) | 31,259 | 5,855 | — | 1,962 | 39,076 | ||||||||||||||||
Translation adjustment | (29 | ) | — | (36 | ) | (10 | ) | (75 | ) | ||||||||||||
Net balance at June 30, 2014 | $ | 43,243 | $ | 10,943 | $ | 10,027 | $ | 5,624 | $ | 69,837 | |||||||||||
Carrying value of other intangible assets | ' | ||||||||||||||||||||
Information on the carrying value of other intangible assets is as follows: | |||||||||||||||||||||
At June 30, 2014 | |||||||||||||||||||||
Useful Life | Gross | Accumulated | Net Carrying | ||||||||||||||||||
Carrying | Amortization | Amount | |||||||||||||||||||
Amount | |||||||||||||||||||||
(Years) | (In thousands) | ||||||||||||||||||||
Intellectual property | 6 to 15 | $ | 2,460 | $ | (920 | ) | $ | 1,540 | |||||||||||||
Customer based | 1.5 to 15 | 27,662 | (2,949 | ) | 24,713 | ||||||||||||||||
Non-compete agreements | 3 to 5 | 1,312 | (471 | ) | 841 | ||||||||||||||||
Trade name | 5 | 165 | (33 | ) | 132 | ||||||||||||||||
Total amortizing intangibles | 31,599 | (4,373 | ) | 27,226 | |||||||||||||||||
Trade name | Indefinite | 1,450 | — | 1,450 | |||||||||||||||||
Total intangible assets | $ | 33,049 | $ | (4,373 | ) | $ | 28,676 | ||||||||||||||
At June 30, 2013 | |||||||||||||||||||||
Useful Life | Gross | Accumulated | Net Carrying | ||||||||||||||||||
Carrying | Amortization | Amount | |||||||||||||||||||
Amount | |||||||||||||||||||||
(Years) | (In thousands) | ||||||||||||||||||||
Intellectual property | 6 to 15 | $ | 2,460 | $ | (753 | ) | $ | 1,707 | |||||||||||||
Customer based | 1.5 to 15 | 4,250 | (542 | ) | 3,708 | ||||||||||||||||
Non-compete agreements | 3 to 5 | 808 | (287 | ) | 521 | ||||||||||||||||
Trade name | 5 | 165 | — | 165 | |||||||||||||||||
Total amortizing intangibles | 7,683 | (1,582 | ) | 6,101 | |||||||||||||||||
Trade name | Indefinite | 1,450 | — | 1,450 | |||||||||||||||||
Total intangible assets | $ | 9,133 | $ | (1,582 | ) | $ | 7,551 | ||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||||||||||
Amortization expense totaled $2.8 million, $0.4 million, and $0.5 million in fiscal 2014, 2013, and 2012, respectively. We estimate that future amortization of other intangible assets will be as follows (in thousands): | |||||||||||||||||||||
For year ending: | |||||||||||||||||||||
June 30, 2015 | $4,726 | ||||||||||||||||||||
June 30, 2016 | 2,854 | ||||||||||||||||||||
June 30, 2017 | 2,769 | ||||||||||||||||||||
June 30, 2018 | 2,670 | ||||||||||||||||||||
June 30, 2019 | 2,545 | ||||||||||||||||||||
Thereafter | 11,662 | ||||||||||||||||||||
Total estimated amortization expense | $27,226 | ||||||||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Availability under the senior credit facility | ' |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of sources of pretax income | ' | ||||||||||||
The sources of pretax income are as follows: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Domestic | $ | 60,129 | $ | 37,876 | $ | 27,346 | |||||||
Foreign | (3,318 | ) | (1,960 | ) | 3,144 | ||||||||
Total | $ | 56,811 | $ | 35,916 | $ | 30,490 | |||||||
Components of the provision for income taxes | ' | ||||||||||||
The components of the provision for income taxes are as follows: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 19,870 | $ | 8,260 | $ | 11,320 | |||||||
State | 3,117 | 1,268 | 1,129 | ||||||||||
Foreign | 613 | 449 | 762 | ||||||||||
23,600 | 9,977 | 13,211 | |||||||||||
Deferred: | |||||||||||||
Federal | (3,951 | ) | 1,801 | (151 | ) | ||||||||
State | (51 | ) | 126 | 283 | |||||||||
Foreign | 336 | 4 | (41 | ) | |||||||||
(3,666 | ) | 1,931 | 91 | ||||||||||
$ | 19,934 | $ | 11,908 | $ | 13,302 | ||||||||
Difference between expected income tax provision applying domestic federal statutory tax rate and reported income tax provision | ' | ||||||||||||
The difference between the expected income tax provision applying the domestic federal statutory tax rate and the reported income tax provision is as follows: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Expected provision for Federal income taxes at the statutory rate | $ | 19,887 | $ | 12,570 | $ | 10,670 | |||||||
State income taxes, net of Federal benefit | 2,275 | 1,252 | 970 | ||||||||||
Charges without tax benefit | 1,405 | 1,231 | 1,004 | ||||||||||
Change in valuation allowance | — | (140 | ) | (544 | ) | ||||||||
Cumulative non-deductible expenses | — | — | 2,139 | ||||||||||
IRC S199 deduction | (1,546 | ) | (844 | ) | (687 | ) | |||||||
Research & Development Credit | (1,793 | ) | (1,450 | ) | — | ||||||||
Foreign tax differential | (182 | ) | (160 | ) | — | ||||||||
Other | (112 | ) | (551 | ) | (250 | ) | |||||||
Provision for income taxes | $ | 19,934 | $ | 11,908 | $ | 13,302 | |||||||
Significant components of Company's deferred tax assets and liabilities | ' | ||||||||||||
Significant components of the Company’s deferred tax assets and liabilities are as follows: | |||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Warranty reserve | $ | 234 | $ | — | |||||||||
Bad debt reserve | 80 | 310 | |||||||||||
Paid-time-off accrual | 712 | 602 | |||||||||||
Insurance reserve | 2,519 | 2,227 | |||||||||||
Legal reserve | 356 | 462 | |||||||||||
Net operating loss benefit and credit carryforwards | 4,061 | 3,885 | |||||||||||
Valuation allowance | (90 | ) | (90 | ) | |||||||||
Accrued compensation and pension | 2,187 | 850 | |||||||||||
Stock compensation expense on nonvested deferred shares | 1,969 | 943 | |||||||||||
Accrued losses | 1,488 | 232 | |||||||||||
Other—net | 314 | 204 | |||||||||||
Total deferred tax assets | 13,830 | 9,625 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Tax over book depreciation | 8,537 | 9,064 | |||||||||||
Tax over book amortization | 1,903 | 1,137 | |||||||||||
Prepaid insurance | 2,104 | 1,217 | |||||||||||
Other—net | 459 | — | |||||||||||
Total deferred tax liabilities | 13,003 | 11,418 | |||||||||||
Net deferred tax asset (liability) | $ | 827 | $ | (1,793 | ) | ||||||||
Significant components of Company's deferred tax assets and liabilities as reported in consolidated balance sheets | ' | ||||||||||||
As reported in the consolidated balance sheets: | |||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Current deferred tax assets | $ | 5,994 | $ | 5,657 | |||||||||
Non-current deferred tax liabilities | (5,167 | ) | (7,450 | ) | |||||||||
Net deferred tax asset (liability) | $ | 827 | $ | (1,793 | ) | ||||||||
Summary of Operating Loss Carryforwards | ' | ||||||||||||
These carryforwards will generally expire as shown below: | |||||||||||||
Item | Expiration Period | ||||||||||||
State net operating losses | June 2023 to June 2030 | ||||||||||||
State tax credits | No expiration | ||||||||||||
Federal foreign tax credits | June 2016 to June 2024 | ||||||||||||
Foreign net operating losses | June 2027 to June 2034 | ||||||||||||
Foreign tax credits | Jun-33 | ||||||||||||
Summary of Tax Credit Carryforwards | ' | ||||||||||||
These carryforwards will generally expire as shown below: | |||||||||||||
Item | Expiration Period | ||||||||||||
State net operating losses | June 2023 to June 2030 | ||||||||||||
State tax credits | No expiration | ||||||||||||
Federal foreign tax credits | June 2016 to June 2024 | ||||||||||||
Foreign net operating losses | June 2027 to June 2034 | ||||||||||||
Foreign tax credits | Jun-33 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||
Stock option activity and related information | ' | ||||||||||||||||||
Stock options are granted at the market value of the Company’s common stock on the g | |||||||||||||||||||
Assumptions used to calculate grant date fair value | ' | ||||||||||||||||||
Assumptions used to calculate the fiscal 2012 grant date fair value and the fair value calculated was as follows: | |||||||||||||||||||
2012 | |||||||||||||||||||
Grant date fair value | $5.61 | ||||||||||||||||||
Risk-free interest rate | 0.88% | ||||||||||||||||||
Expected volatility | 66.19% | ||||||||||||||||||
Expected life in years | 5 | ||||||||||||||||||
Expected dividend yield | — | ||||||||||||||||||
Stock options information | ' | ||||||||||||||||||
The following table summarizes information about stock options at June 30, 2014: | |||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | ||||||||||||||||||
Range of Exercise Price | Options | Weighted- | Weighted- | Options | Weighted- | Weighted- | |||||||||||||
Outstanding | Average | Average | Exercisable | Average | Average | ||||||||||||||
Exercise Price | Remaining | Exercise Price | Remaining | ||||||||||||||||
Contractual Life | Contractual Life | ||||||||||||||||||
(Years) | (Years) | ||||||||||||||||||
$4.60 – $ 5.49 | 20,500 | $ | 5.16 | 1 | 20,500 | $ | 5.16 | 1 | |||||||||||
8.93 – 12.20 | 224,800 | 10.1 | 6.9 | 16,500 | 8.93 | 1.3 | |||||||||||||
$4.60 – $12.20 | 245,300 | $ | 9.68 | 6.4 | 37,000 | $ | 6.84 | 1 | |||||||||||
Nonvested deferred share activity | ' | ||||||||||||||||||
Nonvested deferred share activity for the twelve months ended June 30, 2014 is as follows: | |||||||||||||||||||
Shares | Weighted Average Grant | ||||||||||||||||||
Date Fair Value per Share | |||||||||||||||||||
Nonvested shares at June 30, 2013 | 1,030,660 | $ | 10.71 | ||||||||||||||||
Shares granted | 381,038 | $ | 18.01 | ||||||||||||||||
Shares vested and released | (266,029 | ) | $ | 10.41 | |||||||||||||||
Shares cancelled | (39,968 | ) | $ | 11.87 | |||||||||||||||
Nonvested shares at June 30, 2014 | 1,105,701 | $ | 13.22 | ||||||||||||||||
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of basic and diluted earnings per share | ' | ||||||||||||
The computation of basic and diluted EPS is as follows: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Basic EPS: | |||||||||||||
Net income attributable to Matrix Service Company | $ | 35,810 | $ | 24,008 | $ | 17,188 | |||||||
Weighted average shares outstanding | 26,288 | 25,962 | 25,921 | ||||||||||
Basic EPS | $ | 1.36 | $ | 0.92 | $ | 0.66 | |||||||
Diluted EPS: | |||||||||||||
Weighted average shares outstanding—basic | 26,288 | 25,962 | 25,921 | ||||||||||
Dilutive stock options | 180 | 81 | 79 | ||||||||||
Dilutive nonvested deferred shares | 508 | 315 | 298 | ||||||||||
Diluted weighted average shares | 26,976 | 26,358 | 26,298 | ||||||||||
Diluted EPS | $ | 1.33 | $ | 0.91 | $ | 0.65 | |||||||
Schedule of antidilutive securities excluded from computation of diluted earnings per share | ' | ||||||||||||
The following securities are considered antidilutive and have been excluded from the calculation of diluted earnings per share: | |||||||||||||
Twelve Months Ended | |||||||||||||
June 30, | June 30, | June 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Stock options | — | 193 | 267 | ||||||||||
Nonvested deferred shares | — | 2 | 3 | ||||||||||
Total antidilutive securities | — | 195 | 270 | ||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Multiemployer Pension Plans | ' | |||||||||||||||||||||||
Our participation in significant plans for the fiscal year ended June 30, 2014 is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three digit plan number. The zone status is based on the latest information that the Company received from the plan and is certified by the plan’s actuary. Plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are generally less than 80 percent funded, and plans in the green zone are generally at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. The “Surcharge Imposed” column includes plans in a red zone status that require a payment of a surcharge in excess of regular contributions. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. | ||||||||||||||||||||||||
Pension Fund | EIN/Pension | Pension | FIP/RP | Company Contributions | Surcharge | Expiration | ||||||||||||||||||
Plan Number | Protection Act | Status | Fiscal Year | Imposed | Date of | |||||||||||||||||||
Zone Status | Pending or | Collective- | ||||||||||||||||||||||
Implemented | Bargaining | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | Agreement | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Joint Pension Fund Local Union 164 IBEW (1) | 22-6031199/001 | Yellow | Yellow | Yes | $ | 2,955 | $ | 3,943 | $ | 1,538 | No | 5/31/17 | ||||||||||||
Boilermaker-Blacksmith National Pension Trust | 48-6168020/001 | Yellow | Yellow | Yes | 3,271 | 2,882 | 2,845 | No | Described below (2) | |||||||||||||||
Joint Pension Fund of Local Union No 102 | 22-1615726/001 | Green | Green | Yes | 2,381 | 2,387 | 1,608 | No | 5/31/15 | |||||||||||||||
IBEW Local 456 Pension Plan | 22-6238995/001 | Yellow | Yellow | Yes | 940 | 2,384 | 977 | No | 5/31/17 | |||||||||||||||
Local 351 IBEW Pension Plan | 22-3417366/001 | Described below (3) | Yellow | Yes | 2,218 | 2,281 | 1,140 | No | 9/27/16 | |||||||||||||||
Steamfitters Local Union No 420 Pension Plan | 23-2004424/001 | Red | Red | Yes | 1,677 | 1,622 | 813 | Yes | 4/30/17 | |||||||||||||||
Indiana Laborers Pension Fund | 35-6027150/001 | Yellow | Yellow | Yes | 1,268 | — | — | No | 5/31/17 | |||||||||||||||
Iron Workers Mid-America Pension Plan | 36-6488227/001 | Green | Green | N/A | 1,156 | — | — | No | 5/31/15 | |||||||||||||||
Contributions to other multiemployer plans | 14,503 | 8,966 | 7,616 | |||||||||||||||||||||
Total contributions made | $ | 30,369 | $ | 24,465 | $ | 16,537 | ||||||||||||||||||
-1 | Our contributions for the Joint Pension Fund Local Union 164 IBEW exceeded 5% of total contributions for the 2012 plan year. This information was not available for the 2013 plan year. | |||||||||||||||||||||||
-2 | Our collective bargaining agreements with the Boilermaker-Blacksmith National Pension Trust are under a National Maintenance Agreement platform which is evergreen in terms of expiration. However, the agreements allow for termination of the collective bargaining agreement by either party with a predetermined written notice. | |||||||||||||||||||||||
-3 | For the Local 351 IBEW Pension Plan, the Company has not received a funding notification that covers the Company's fiscal year 2014 during the preparation of this Form 10-K. Under Federal pension law, if a multiemployer pension plan is determined to be in critical or endangered status, the plan must provide notice of this status to participants, beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Department of Labor. The Company also observed that the Local 351 IBEW Pension Plan has not submitted any Critical or Endangered Status Notices to the Department of Labor for 2014 (which can be accessed at http://www.dol.gov/ebsa/criticalstatusnotices.html). |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Results of Operations | ' | ||||||||||||||||||||||||
Results of Operations | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Electrical | Oil Gas & | Storage | Industrial | Unallocated Corporate | Total | ||||||||||||||||||||
Infrastructure | Chemical | Solutions | |||||||||||||||||||||||
Twelve months ended June 30, 2014 | |||||||||||||||||||||||||
Gross revenues | $ | 205,570 | $ | 240,131 | $ | 611,826 | $ | 206,933 | $ | — | $ | 1,264,460 | |||||||||||||
Less: inter-segment revenues | — | 441 | 930 | — | 1,371 | ||||||||||||||||||||
Consolidated revenues | 205,570 | 239,690 | 610,896 | 206,933 | — | 1,263,089 | |||||||||||||||||||
Gross profit | 20,629 | 26,912 | 68,448 | 20,484 | — | 136,473 | |||||||||||||||||||
Operating income | 7,703 | 9,939 | 34,310 | 6,655 | — | 58,607 | |||||||||||||||||||
Segment assets | 120,264 | 72,406 | 200,493 | 105,049 | 70,720 | 568,932 | |||||||||||||||||||
Capital expenditures | 9,055 | 5,421 | 2,519 | 1,157 | 5,437 | 23,589 | |||||||||||||||||||
Depreciation and amortization expense | 3,292 | 3,768 | 7,707 | 3,751 | — | 18,518 | |||||||||||||||||||
Twelve months ended June 30, 2013 | |||||||||||||||||||||||||
Gross revenues | $ | 171,204 | $ | 273,979 | $ | 395,794 | $ | 54,321 | $ | — | $ | 895,298 | |||||||||||||
Less: inter-segment revenues | — | 131 | 2,593 | — | — | 2,724 | |||||||||||||||||||
Consolidated revenues | 171,204 | 273,848 | 393,201 | 54,321 | — | 892,574 | |||||||||||||||||||
Gross profit | 21,754 | 32,879 | 37,455 | 2,614 | — | 94,702 | |||||||||||||||||||
Operating income (loss) | 11,185 | 15,415 | 11,904 | (1,790 | ) | — | 36,714 | ||||||||||||||||||
Segment assets | 64,771 | 75,591 | 159,149 | 27,347 | 83,120 | 409,978 | |||||||||||||||||||
Capital expenditures | 2,129 | 2,942 | 9,929 | 1,645 | 6,586 | 23,231 | |||||||||||||||||||
Depreciation and amortization expense | 2,167 | 2,943 | 6,740 | 932 | — | 12,782 | |||||||||||||||||||
Twelve months ended June 30, 2012 | |||||||||||||||||||||||||
Gross revenues | $ | 135,086 | $ | 206,031 | $ | 380,488 | $ | 19,983 | $ | — | $ | 741,588 | |||||||||||||
Less: inter-segment revenues | — | 208 | 2,334 | — | — | 2,542 | |||||||||||||||||||
Consolidated revenues | 135,086 | 205,823 | 378,154 | 19,983 | — | 739,046 | |||||||||||||||||||
Gross profit | 16,676 | 20,070 | 42,393 | 479 | — | 79,618 | |||||||||||||||||||
Operating income (loss) | 7,609 | 8,134 | 17,493 | (1,601 | ) | — | 31,635 | ||||||||||||||||||
Segment assets | 51,998 | 53,567 | 150,543 | 14,018 | 53,009 | 323,135 | |||||||||||||||||||
Capital expenditures | 2,581 | 2,346 | 3,929 | 741 | 3,937 | 13,534 | |||||||||||||||||||
Depreciation and amortization expense | 1,823 | 2,838 | 6,309 | 515 | — | 11,485 | |||||||||||||||||||
Summary of revenues and long lived assets according to geographic areas | ' | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Electrical | Oil Gas & | Storage | Industrial | Unallocated Corporate | Total | ||||||||||||||||||||
Infrastructure | Chemical | Solutions | |||||||||||||||||||||||
Twelve months ended June 30, 2014 | |||||||||||||||||||||||||
Gross revenues | $ | 205,570 | $ | 240,131 | $ | 611,826 | $ | 206,933 | $ | — | $ | 1,264,460 | |||||||||||||
Less: inter-segment revenues | — | 441 | 930 | — | 1,371 | ||||||||||||||||||||
Consolidated revenues | 205,570 | 239,690 | 610,896 | 206,933 | — | 1,263,089 | |||||||||||||||||||
Gross profit | 20,629 | 26,912 | 68,448 | 20,484 | — | 136,473 | |||||||||||||||||||
Operating income | 7,703 | 9,939 | 34,310 | 6,655 | — | 58,607 | |||||||||||||||||||
Segment assets | 120,264 | 72,406 | 200,493 | 105,049 | 70,720 | 568,932 | |||||||||||||||||||
Capital expenditures | 9,055 | 5,421 | 2,519 | 1,157 | 5,437 | 23,589 | |||||||||||||||||||
Depreciation and amortization expense | 3,292 | 3,768 | 7,707 | 3,751 | — | 18,518 | |||||||||||||||||||
Twelve months ended June 30, 2013 | |||||||||||||||||||||||||
Gross revenues | $ | 171,204 | $ | 273,979 | $ | 395,794 | $ | 54,321 | $ | — | $ | 895,298 | |||||||||||||
Less: inter-segment revenues | — | 131 | 2,593 | — | — | 2,724 | |||||||||||||||||||
Consolidated revenues | 171,204 | 273,848 | 393,201 | 54,321 | — | 892,574 | |||||||||||||||||||
Gross profit | 21,754 | 32,879 | 37,455 | 2,614 | — | 94,702 | |||||||||||||||||||
Operating income (loss) | 11,185 | 15,415 | 11,904 | (1,790 | ) | — | 36,714 | ||||||||||||||||||
Segment assets | 64,771 | 75,591 | 159,149 | 27,347 | 83,120 | 409,978 | |||||||||||||||||||
Capital expenditures | 2,129 | 2,942 | 9,929 | 1,645 | 6,586 | 23,231 | |||||||||||||||||||
Depreciation and amortization expense | 2,167 | 2,943 | 6,740 | 932 | — | 12,782 | |||||||||||||||||||
Twelve months ended June 30, 2012 | |||||||||||||||||||||||||
Gross revenues | $ | 135,086 | $ | 206,031 | $ | 380,488 | $ | 19,983 | $ | — | $ | 741,588 | |||||||||||||
Less: inter-segment revenues | — | 208 | 2,334 | — | — | 2,542 | |||||||||||||||||||
Consolidated revenues | 135,086 | 205,823 | 378,154 | 19,983 | — | 739,046 | |||||||||||||||||||
Gross profit | 16,676 | 20,070 | 42,393 | 479 | — | 79,618 | |||||||||||||||||||
Operating income (loss) | 7,609 | 8,134 | 17,493 | (1,601 | ) | — | 31,635 | ||||||||||||||||||
Segment assets | 51,998 | 53,567 | 150,543 | 14,018 | 53,009 | 323,135 | |||||||||||||||||||
Capital expenditures | 2,581 | 2,346 | 3,929 | 741 | 3,937 | 13,534 | |||||||||||||||||||
Depreciation and amortization expense | 1,823 | 2,838 | 6,309 | 515 | — | 11,485 | |||||||||||||||||||
Geographical information i |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Matrix Service Company | |||||||||||||||||
Quarterly Financial Data (Unaudited) | |||||||||||||||||
Fiscal Years Ended June 30, 2014 and June 30, 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Fiscal Year 2014 | |||||||||||||||||
Revenues | $ | 226,217 | $ | 310,998 | $ | 381,516 | $ | 344,358 | |||||||||
Gross profit | 25,476 | 34,150 | 39,944 | 36,903 | |||||||||||||
Operating income | 10,762 | 14,817 | 18,819 | 14,209 | |||||||||||||
Net income | 6,552 | 10,306 | 11,396 | 7,556 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | 0.25 | 0.39 | 0.43 | 0.29 | |||||||||||||
Diluted | 0.25 | 0.38 | 0.42 | 0.28 | |||||||||||||
Fiscal Year 2013 | |||||||||||||||||
Revenues | $ | 209,608 | $ | 221,436 | $ | 225,970 | $ | 235,560 | |||||||||
Gross profit | 22,244 | 22,333 | 23,126 | 26,999 | |||||||||||||
Operating income | 7,924 | 8,722 | 8,431 | 11,587 | |||||||||||||
Net income | 4,684 | 5,436 | 6,521 | 7,367 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | 0.18 | 0.21 | 0.25 | 0.28 | |||||||||||||
Diluted | 0.18 | 0.21 | 0.25 | 0.28 | |||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Textual) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Minimum [Member] | Maximum [Member] | Building [Member] | Construction Equipment [Member] | Construction Equipment [Member] | Transportation Equipment [Member] | Transportation Equipment [Member] | Office Equipment and Software [Member] | Office Equipment and Software [Member] | ||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciable life of office equipment and software | ' | ' | ' | ' | '40 years | '3 years | '15 years | '3 years | '5 years | '3 years | '10 years |
Useful life of intangible assets | ' | ' | '1 year | '15 years | ' | ' | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | $0.30 | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Account receivables | 30 | 19.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | 4.3 | 3.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | $10.40 | $3.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Details_Textual
Acquisitions (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 21, 2013 | Jun. 30, 2014 | Dec. 21, 2013 | |
Kvaerner North American Construction [Member] | Kvaerner North American Construction [Member] | Kvaerner North American Construction [Member] | MXPB Power Partners [Member] | MXPB Power Partners [Member] | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock acquired, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Acquisition price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $88,262,000 | ' | ' | ' | ' |
Goodwill | 69,837,000 | ' | ' | ' | 30,836,000 | ' | ' | ' | 69,837,000 | 30,836,000 | 28,675,000 | 39,076,000 | ' | ' | ' | ' |
Tax deductible goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,700,000 | ' | ' | ' | ' |
Ownership interest in joint venture, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' |
Equity of joint venture acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 |
Company's portion of joint venture equity acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 |
Noncontrolling interest in joint venture | 1,767,000 | ' | ' | ' | 0 | ' | ' | ' | 1,767,000 | 0 | ' | ' | ' | ' | 1,800,000 | 700,000 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,263,089,000 | 892,574,000 | 739,046,000 | ' | 154,800,000 | ' | ' | ' |
Operating income | 14,209,000 | 18,819,000 | 14,817,000 | 10,762,000 | 11,587,000 | 8,431,000 | 8,722,000 | 7,924,000 | 58,607,000 | 36,714,000 | 31,635,000 | ' | 2,700,000 | ' | ' | ' |
Acquisition-related expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' |
Incremental intangible amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | ' | ' | ' | ' | ' |
Depreciation expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' |
Income from one-time tax settlement | ' | ' | ' | ' | ' | ' | ' | ' | $600,000 | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Kvaerner North American Construction [Member] | Kvaerner North American Construction [Member] | Pelichem Industrial Cleaning Services, LLC [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' | $83,575 | $1,112 |
Property, plant and equipment | ' | ' | ' | ' | 11,377 | 4,299 |
Goodwill | 69,837 | 30,836 | 28,675 | ' | 39,076 | ' |
Tax deductible goodwill | ' | ' | ' | ' | 30,700 | 2,247 |
Other intangible assets | ' | ' | ' | ' | 24,009 | 1,853 |
Total assets acquired | ' | ' | ' | ' | 158,037 | 9,511 |
Current liabilities | ' | ' | ' | ' | 67,959 | 117 |
Deferred income taxes | ' | ' | ' | ' | 1,116 | ' |
Noncontrolling interest of consolidated joint venture | ' | ' | ' | ' | 700 | ' |
Net assets acquired | ' | ' | ' | ' | 88,262 | 9,394 |
Cash acquired | ' | ' | ' | ' | 36,655 | ' |
Net purchase price | ' | ' | ' | 51,607 | ' | ' |
Pro Forma Information: | ' | ' | ' | ' | ' | ' |
Revenues | 1,397,706 | 1,096,267 | ' | ' | ' | ' |
Net income attributable to Matrix Service Company | $38,786 | $28,444 | ' | ' | ' | ' |
Basic earnings per common share (in dollars per share) | $1.48 | $1.10 | ' | ' | ' | ' |
Diluted earnings per common share (in dollars per share) | $1.44 | $1.08 | ' | ' | ' | ' |
Customer_Contracts_Details
Customer Contracts (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Gross and net amount of uncompleted contracts | ' | ' |
Costs and estimated earnings recognized on uncompleted contracts | $1,435,242 | $802,588 |
Billings on uncompleted contracts | 1,470,674 | 791,663 |
Total | -35,432 | 10,925 |
Shown on balance sheet as: | ' | ' |
Costs and estimated earnings in excess of billings on uncompleted contracts | 73,008 | 73,773 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 108,440 | 62,848 |
Total | ($35,432) | $10,925 |
Customer_Contracts_Details_Tex
Customer Contracts (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Business Acquisition [Line Items] | ' | ' |
Provision for Loss on Contracts | $8.40 | $3.70 |
SME [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Record amount of claims | 0.7 | 0.7 |
S.M. Electric Company [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Contracts Receivable, Claims and Uncertain Amounts, Expected to be Collected in Next Rolling Twelve Months | $2.90 | $2.90 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Carrying value of goodwill by segment | ' | ' | ' |
Goodwill | ' | ' | $53,675 |
Cumulative impairment loss | ' | ' | -25,000 |
Net Goodwill | 30,836 | 28,675 | ' |
Purchase of Kvaerner North American Construction and Pelichem | 39,076 | 2,247 | ' |
Translation adjustment | -75 | -86 | ' |
Net Goodwill | 69,837 | 30,836 | ' |
Electrical Infrastructure [Member] | ' | ' | ' |
Carrying value of goodwill by segment | ' | ' | ' |
Goodwill | ' | ' | 29,666 |
Cumulative impairment loss | ' | ' | -17,653 |
Net Goodwill | 12,013 | ' | 12,013 |
Purchase of Kvaerner North American Construction and Pelichem | 31,259 | ' | ' |
Translation adjustment | -29 | ' | ' |
Net Goodwill | 43,243 | ' | 12,013 |
Oil Gas & Chemical [Member] | ' | ' | ' |
Carrying value of goodwill by segment | ' | ' | ' |
Goodwill | ' | ' | 5,841 |
Cumulative impairment loss | ' | ' | -3,000 |
Net Goodwill | 5,088 | 2,841 | ' |
Purchase of Kvaerner North American Construction and Pelichem | 5,855 | 2,247 | ' |
Net Goodwill | 10,943 | 5,088 | ' |
Storage Solutions [Member] | ' | ' | ' |
Carrying value of goodwill by segment | ' | ' | ' |
Goodwill | ' | ' | 11,071 |
Cumulative impairment loss | ' | ' | -922 |
Net Goodwill | 10,063 | 10,149 | ' |
Purchase of Kvaerner North American Construction and Pelichem | 0 | ' | ' |
Translation adjustment | -36 | -86 | ' |
Net Goodwill | 10,027 | 10,063 | ' |
Industrial [Member] | ' | ' | ' |
Carrying value of goodwill by segment | ' | ' | ' |
Goodwill | ' | ' | 7,097 |
Cumulative impairment loss | ' | ' | -3,425 |
Net Goodwill | 3,672 | 3,672 | ' |
Purchase of Kvaerner North American Construction and Pelichem | 1,962 | 0 | ' |
Translation adjustment | -10 | ' | ' |
Net Goodwill | $5,624 | $3,672 | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Carrying value of other intangible assets | ' | ' |
Gross carrying amount | 31,599 | 7,683 |
Accumulated amortization | -4,373 | -1,582 |
Net carrying amount | 27,226 | 6,101 |
Intangible assets, gross, excluding Goodwill | 33,049 | 9,133 |
Accumulated amortization - Intangible assets, excluding Goodwill | -4,373 | -1,582 |
Intangible assets, net, excluding Goodwill | 28,676 | 7,551 |
Minimum [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Useful life of intangible assets | '1 year | ' |
Maximum [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Useful life of intangible assets | '15 years | ' |
Trade Names [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Indefinite-lived trade names | 1,450 | 1,450 |
Accumulated amortization - Intangible assets, excluding Goodwill | ' | ' |
Intellectual Property [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Gross carrying amount | 2,460 | 2,460 |
Accumulated amortization | -920 | -753 |
Net carrying amount | 1,540 | 1,707 |
Intellectual Property [Member] | Minimum [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Useful life of intangible assets | '6 years | '6 years |
Intellectual Property [Member] | Maximum [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Useful life of intangible assets | '15 years | '15 years |
Customer based [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Gross carrying amount | 27,662 | 4,250 |
Accumulated amortization | -2,949 | -542 |
Net carrying amount | 24,713 | 3,708 |
Customer based [Member] | Minimum [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Useful life of intangible assets | '1 year | '1 year |
Customer based [Member] | Maximum [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Useful life of intangible assets | '15 years | '15 years |
Noncompete Agreements [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Gross carrying amount | 1,312 | 808 |
Accumulated amortization | -471 | -287 |
Net carrying amount | 841 | 521 |
Noncompete Agreements [Member] | Minimum [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Useful life of intangible assets | '3 years | '3 years |
Noncompete Agreements [Member] | Maximum [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Useful life of intangible assets | '5 years | '5 years |
Trade Names [Member] | ' | ' |
Carrying value of other intangible assets | ' | ' |
Useful life of intangible assets | '5 years | ' |
Gross carrying amount | 165 | 165 |
Accumulated amortization | -33 | ' |
Net carrying amount | 132 | 165 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details Textual) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Goodwill [Line Items] | ' | ' | ' |
Impairment of Intangible Assets, Finite-lived | $0 | $255,000 | $0 |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ' | ' | ' |
Amortization expense | 2,800,000 | 400,000 | 500,000 |
30-Jun-15 | 4,726,000 | ' | ' |
30-Jun-16 | 2,854,000 | ' | ' |
30-Jun-17 | 2,769,000 | ' | ' |
30-Jun-18 | 2,670,000 | ' | ' |
30-Jun-19 | 2,545,000 | ' | ' |
Thereafter | 11,662,000 | ' | ' |
Net carrying amount | 27,226,000 | 6,101,000 | ' |
Minimum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '15 years | ' | ' |
Customer Based [Member] | ' | ' | ' |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ' | ' | ' |
Net carrying amount | 24,713,000 | 3,708,000 | ' |
Customer Based [Member] | Minimum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '1 year | '1 year | ' |
Customer Based [Member] | Maximum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '15 years | '15 years | ' |
Noncompete Agreements [Member] | ' | ' | ' |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ' | ' | ' |
Net carrying amount | 841,000 | 521,000 | ' |
Noncompete Agreements [Member] | Minimum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '3 years | '3 years | ' |
Noncompete Agreements [Member] | Maximum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years | '5 years | ' |
Matrix NAC [Member] | Customer Based [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | 23,400,000 | ' | ' |
Matrix NAC [Member] | Customer Based [Member] | Minimum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '1 year 6 months | ' | ' |
Matrix NAC [Member] | Customer Based [Member] | Maximum [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '15 years | ' | ' |
Matrix NAC [Member] | Noncompete Agreements [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Finite-lived Intangible Assets, Fair Value Disclosure | $500,000 | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '4 years | ' | ' |
Debt_Details
Debt (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Availability under senior credit facility | ' | ' |
Senior credit facility | $200,000 | $125,000 |
Borrowings outstanding | 11,621 | 0 |
Letters of credit issued | 23,017 | 13,372 |
Availability under the senior credit facility | $165,362 | $111,628 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Line of Credit Facility [Line Items] | ' | ' |
Line Of Credit Facility Maximum Borrowing Capacity After Consideration Of Capacity Constraint | $200,000,000 | ' |
Debt (Textual) [Abstract] | ' | ' |
Senior secured revolving credit facility | 200,000,000 | 125,000,000 |
Line of Credit Facility, Expiration Date | 13-Mar-19 | ' |
Senior Leverage Ratio, Maximum | 2.5 | ' |
Senior Leverage Ratio, Minimum | 1 | ' |
Fixed Charge Coverage Ratio, Maximum | 1.25 | ' |
Fixed Charge Coverage Ratio, Minimum | 1 | ' |
Limit on asset dispositions | 20,000,000 | ' |
Additional Margin on alternate base rate loans, Minimum | 0.25% | ' |
Additional Margin on alternate base rate loans, Maximum | 1.00% | ' |
Additional Margin on LIBOR loans, Minimum | 1.25% | ' |
Additional Margin on LIBOR loans, Maximum | 2.00% | ' |
Sublimit on Canadian dollar borrowings | 40,000,000 | ' |
Additional Margin on CDOR loans, Minimum | 1.25% | ' |
Additional Margin on CDOR loans, Maximum | 2.00% | ' |
Additional Margin on Canadian prime rate loans, Minimum | 1.75% | ' |
Additional Margin on Canadian prime rate loans, Maximum | 2.50% | ' |
Maximum limit of consolidated funded indebtedness | 2.5 | ' |
Consolidated EBITDA as defined in the Credit Agreement | 87,800,000 | ' |
Consolidated Funded Indebtedness | $29,800,000 | ' |
CDOR Rate description | 'Sum of the annual rate of interest which is the rate determined as being the arithmetic average of the quotations of all institutions listed in respect of the relevant CDOR interest period for Canadian Dollar denominated bankers’ acceptances, plus 0.1% | ' |
Canadian prime rate description | 'Greater of (i)Â the rate of interest per annum most recently announced or established by JPMorgan Chase Bank, N.A., Toronto Branch as its reference rate in effect on such day for determining interest rates for Canadian Dollar denominated commercial loans in Canada and (ii)Â the CDOR Rate plus 1.0% | ' |
Minimum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Unused Credit Facility Fee | 0.20% | ' |
Maximum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Unused Credit Facility Fee | 0.35% | ' |
CDOR Rate [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Spread on variable rate basis (percent) | 0.10% | ' |
Canadian Prime Rate [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Spread on variable rate basis (percent) | 1.00% | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Components of pretax income | ' | ' | ' |
Domestic | $60,129 | $37,876 | $27,346 |
Foreign | -3,318 | -1,960 | 3,144 |
Income before income tax expense | $56,811 | $35,916 | $30,490 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Current: | ' | ' | ' |
Federal | $19,870 | $8,260 | $11,320 |
State | 3,117 | 1,268 | 1,129 |
Foreign | 613 | 449 | 762 |
Total | 23,600 | 9,977 | 13,211 |
Deferred: | ' | ' | ' |
Federal | -3,951 | 1,801 | -151 |
State | -51 | 126 | 283 |
Foreign | 336 | 4 | -41 |
Total | -3,666 | 1,931 | 91 |
Provision for income taxes | $19,934 | $11,908 | $13,302 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Difference between expected income tax provision applying domestic federal statutory tax rate and reported income tax provision | ' | ' | ' |
Expected provision for Federal income taxes at the statutory rate | $19,887 | $12,570 | $10,670 |
State income taxes, net of Federal benefit | 2,275 | 1,252 | 970 |
Charges without tax benefit | 1,405 | 1,231 | 1,004 |
Change in valuation allowance | 0 | -140 | -544 |
Cumulative non-deductible expenses | 0 | 0 | 2,139 |
IRS S199 deduction | -1,546 | -844 | -687 |
Research & Development Credit | -1,793 | -1,450 | 0 |
Foreign tax differential | -182 | -160 | 0 |
Other | -112 | -551 | -250 |
Provision for income taxes | $19,934 | $11,908 | $13,302 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Warranty reserve | $234 | $0 |
Bad debt reserve | 80 | 310 |
Paid time-off accrual | 712 | 602 |
Insurance reserve | 2,519 | 2,227 |
Legal reserve | 356 | 462 |
Net operating loss benefit and credit carryforwards | 4,061 | 3,885 |
Valuation allowance | -90 | -90 |
Accrued compensation and pension | 2,187 | 850 |
Stock compensation expense on nonvested deferred shares | 1,969 | 943 |
Accrued losses | 1,488 | 232 |
Other-net | 314 | 204 |
Total deferred tax assets | 13,830 | 9,625 |
Deferred tax liabilities: | ' | ' |
Tax over book depreciation | 8,537 | 9,064 |
Tax over book amortization | 1,903 | 1,137 |
Prepaid insurance | 2,104 | 1,217 |
Other-net | 459 | 0 |
Total deferred tax liabilities | 13,003 | 11,418 |
Net deferred tax asset (liability) | $827 | ($1,793) |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Significant components of Company's deferred tax assets and liabilities as reported in consolidated balance sheets | ' | ' |
Current deferred tax assets | $5,994 | $5,657 |
Non-current deferred tax liabilities | -5,167 | -7,450 |
Net deferred tax liability | $827 | ($1,793) |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Income Tax Disclosure [Abstract] | ' |
Unremitted earnings | $5.10 |
Contingencies_Details_Textual
Contingencies (Details Textual) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Claims related to unapproved change orders | $13.10 | $9.10 |
Operating_Leases_Details_Textu
Operating Leases (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Leases [Abstract] | ' | ' | ' |
Future minimum operating lease payable, in total | $9.90 | ' | ' |
Minimum operating lease payable, Fiscal 2015 | 4.9 | ' | ' |
Minimum operating lease payable, Fiscal 2016 | 3 | ' | ' |
Minimum operating lease payable, Fiscal 2017 | 1.4 | ' | ' |
Minimum operating lease payable, Fiscal 2018 | 0.5 | ' | ' |
Minimum operating lease payable, Fiscal 2019 | 0.3 | ' | ' |
Minimum operating lease payable, Thereafter | 0 | ' | ' |
Operating lease expense | $5.30 | $4.50 | $4.10 |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 06, 2012 |
Stockholders' Equity Note [Abstract] | ' | ' | ' |
Preferred stock shares authorized | 5,000,000 | 5,000,000 | ' |
Preferred stock shares issued | 0 | 0 | ' |
Preferred stock shares outstanding | 0 | 0 | ' |
Purchase of common stock on stock buyback program | ' | ' | 2,113,497 |
Annual maximum purchases authorized under stock buyback program | $25 | ' | ' |
Common stock shares withheld | 80,096 | 107,344 | ' |
Treasury stock, shares | 1,453,770 | 1,779,593 | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Stock option activity and related information | ' | ' | ' |
Number of options outstanding at June 30, 2013 | 392,000 | ' | ' |
Number of options granted | 0 | ' | ' |
Number of options exercised | -134,450 | -97,840 | -26,500 |
Number of options cancelled | -12,250 | ' | ' |
Number of options outstanding at June 30, 2014 | 245,300 | 392,000 | ' |
Number of options vested or expected to vest at June 30, 2014 | 243,477 | ' | ' |
Number of options exercisable at June 30, 2014 | 37,000 | ' | ' |
Weighted average remaining contractual life | '6 years 5 months | '5 years 6 months | ' |
Weighted average remaining contractual life vested or expected to vest at June 30, 2014 | '6 years 5 months | ' | ' |
Weighted average remaining contractual life exercisable at June 30, 2014 | '1 year 0 months | ' | ' |
Weighted average exercise price at June 30, 2013 | $9.38 | ' | ' |
Weighted average exercise price granted | $0 | ' | ' |
Weighted average exercise price exercised | $8.78 | ' | ' |
Weighted average exercise price cancelled | $10.19 | ' | ' |
Weighted average exercise price at June 30, 2014 | $9.68 | $9.38 | ' |
Weighted average exercise price vested or expected to vest at June 30, 2014 | $9.68 | ' | ' |
Weighted average exercise price exercisable at June 30, 2014 | $6.84 | ' | ' |
Aggregate intrinsic value exercised | $2,394 | $600 | $100 |
Aggregate intrinsic value outstanding at June 30, 2014 | 5,669 | ' | ' |
Aggregate intrinsic value vested or expected to be vest at June 30, 2014 | 5,627 | ' | ' |
Aggregate intrinsic value exercisable at June 30, 2014 | $960 | ' | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (USD $) | 12 Months Ended |
Jun. 30, 2012 | |
Assumptions used to calculate grant date fair value | ' |
Grant date fair value | $5.61 |
Risk-free interest rate | 0.88% |
Expected volatility | 66.19% |
Expected life in years | '5 years |
Expected dividend yield | 0.00% |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Stock options information | ' | ' |
Range of exercise price lower limit | $4.60 | ' |
Range of exercise price upper limit | $12.20 | ' |
Stock options outstanding, option outstanding | 245,300 | 392,000 |
Stock options outstanding weighted average exercise price | $9.68 | ' |
Stock options outstanding weighted average remaining contractual life | '6 years 5 months | '5 years 6 months |
Stock options exercisable option outstanding | 37,000 | ' |
Stock options exercisable weighted average exercise price | $6.84 | ' |
Stock options exercisable weighted average remaining contractual life | '1 year 0 months | ' |
Range One [Member] | ' | ' |
Stock options information | ' | ' |
Range of exercise price lower limit | $4.60 | ' |
Range of exercise price upper limit | $5.49 | ' |
Stock options outstanding, option outstanding | 20,500 | ' |
Stock options outstanding weighted average exercise price | $5.16 | ' |
Stock options outstanding weighted average remaining contractual life | '1 year 0 months | ' |
Stock options exercisable option outstanding | 20,500 | ' |
Stock options exercisable weighted average exercise price | $5.16 | ' |
Stock options exercisable weighted average remaining contractual life | '1 year 0 months | ' |
Range Two [Member] | ' | ' |
Stock options information | ' | ' |
Range of exercise price lower limit | $8.93 | ' |
Range of exercise price upper limit | $12.20 | ' |
Stock options outstanding, option outstanding | 224,800 | ' |
Stock options outstanding weighted average exercise price | $10.10 | ' |
Stock options outstanding weighted average remaining contractual life | '6 years 11 months | ' |
Stock options exercisable option outstanding | 16,500 | ' |
Stock options exercisable weighted average exercise price | $8.93 | ' |
Stock options exercisable weighted average remaining contractual life | '1 year 3 months | ' |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Nonvested deferred share activity | ' |
Nonvested shares at June 30, 2013 | 1,030,660 |
Shares granted | 381,038 |
Shares vested and released | -266,029 |
Shares cancelled | -39,968 |
Nonvested shares at June 30, 2014 | 1,105,701 |
Weighted average grant date fair value per share at June 30, 2013 | $10.71 |
Weighted average grant date fair value per share granted | $18.01 |
Weighted average grant date fair value per share vested and released | $10.41 |
Weighted average grant date fair value per share cancelled | $11.87 |
Weighted average grant date fair value per share at June 30, 2014 | $13.22 |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details Textual) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $5,688,000 | $3,831,000 | $3,504,000 |
Unrecognized stock-based compensation expense | 9,700,000 | ' | ' |
Unrecognized stock-based compensation expense related to nonvested deferred shares | 9,500,000 | ' | ' |
Unrecognized stock-based compensation expense related to stock options | 200,000 | ' | ' |
Weighted average period | '1 year 9 months | ' | ' |
Stock based compensation expense recognized tax | 2,800,000 | 1,600,000 | 1,300,000 |
Common stock grant expiration term | '10 years | ' | ' |
Total intrinsic value of stock option | $2,394,000 | $600,000 | $100,000 |
Vesting period | '3 years | ' | ' |
Vesting period of director awards | '3 years | ' | ' |
Description of vesting period of director awards | '3 years | ' | ' |
Deferred shares granted | ' | 503,268 | 364,600 |
Average grant date fair value | ' | $10.96 | $9.99 |
Deferred shares vested and released | 266,029 | 367,449 | 184,149 |
Weighted average fair value | $22.38 | $10.69 | $10.23 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | 'Monte Carlo model | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Method Number of Simulations Used | 100,000 | ' | ' |
Employee Award [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period, equal annual installments | '1 year | ' | ' |
Employee Award [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '4 years | ' | ' |
Employee Award [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Market Based Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Pro-rate of original awards, minimum | 0.00% | ' | ' |
Pro-rate of original awards maximum | 200.00% | ' | ' |
Vest in 2016 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Minimum threshold shares scheduled to vest for performance based shares | 218,000 | ' | ' |
Vest in 2017 [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Minimum threshold shares scheduled to vest for performance based shares | 154,000 | ' | ' |
Matrix Service Company's 2004 Stock and Incentive Compensation Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share awards authorized | 2,300,000 | ' | ' |
Matrix Service Company's 2012 Stock and Incentive Compensation Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share awards authorized | 1,300,000 | ' | ' |
Share awards grant | 713,223 | ' | ' |
Earnings_per_Common_Share_Deta
Earnings per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Basic EPS: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $7,556 | $11,396 | $10,306 | $6,552 | $7,367 | $6,521 | $5,436 | $4,684 | $35,810 | $24,008 | $17,188 |
Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 26,288 | 25,962 | 25,921 |
Basic EPS (in dollars per share) | $0.29 | $0.43 | $0.39 | $0.25 | $0.28 | $0.25 | $0.21 | $0.18 | $1.36 | $0.92 | $0.66 |
Diluted EPS: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 26,288 | 25,962 | 25,921 |
Dilutive stock options | ' | ' | ' | ' | ' | ' | ' | ' | 180 | 81 | 79 |
Dilutive nonvested deferred shares | ' | ' | ' | ' | ' | ' | ' | ' | 508 | 315 | 298 |
Diluted weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | 26,976 | 26,358 | 26,298 |
Diluted EPS (in dollars per share) | $0.28 | $0.42 | $0.38 | $0.25 | $0.28 | $0.25 | $0.21 | $0.18 | $1.33 | $0.91 | $0.65 |
Earnings_per_Common_Share_Deta1
Earnings per Common Share (Details 1) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Antidilutive Securities Excluded From Computation Of Diluted Earnings Per Share | ' | ' | ' |
Total antidilutive securities | 0 | 195 | 270 |
Stock Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Diluted Earnings Per Share | ' | ' | ' |
Total antidilutive securities | 0 | 193 | 267 |
Nonvested Deferred Shares [Member] | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Diluted Earnings Per Share | ' | ' | ' |
Total antidilutive securities | 0 | 2 | 3 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||||
Multiemployer Pension Plans | ' | ' | ' | |||
Total contributions made | $30,369 | $24,465 | $16,537 | |||
Contributions to other multiemployer plans | 14,503 | 8,966 | 7,616 | |||
Joint Pension Fund Local Union One Six Four Ibew [Member] | ' | ' | ' | |||
Multiemployer Pension Plans | ' | ' | ' | |||
EIN/Pension Plan Number | '22-6031199/001 | ' | ' | |||
Pension Protection Act Zone Status | 'Yellow | 'Yellow | ' | |||
Total contributions made | 2,955 | [1] | 3,943 | [1] | 1,538 | [1] |
Surcharge Imposed | 'No | ' | ' | |||
Expiration Date of Collective-Bargaining Agreement | 31-May-17 | ' | ' | |||
Boilermaker-Blacksmith National Pension Trust [Member] | ' | ' | ' | |||
Multiemployer Plans [Line Items] | ' | ' | ' | |||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, Description | 'Described below (2) | [2] | ' | ' | ||
Multiemployer Pension Plans | ' | ' | ' | |||
EIN/Pension Plan Number | '48-6168020/001 | ' | ' | |||
Pension Protection Act Zone Status | 'Yellow | 'Yellow | ' | |||
FIP/RP Status Pending or Implemented | 'Implemented | ' | ' | |||
Total contributions made | 3,271 | 2,882 | 2,845 | |||
Surcharge Imposed | 'No | ' | ' | |||
Joint Pension Fund Local Union Number One Zero Two [Member] [Domain] | ' | ' | ' | |||
Multiemployer Pension Plans | ' | ' | ' | |||
EIN/Pension Plan Number | '22-1615726/001 | ' | ' | |||
Pension Protection Act Zone Status | 'Green | 'Green | ' | |||
FIP/RP Status Pending or Implemented | 'Implemented | ' | ' | |||
Total contributions made | 2,381 | 2,387 | 1,608 | |||
Surcharge Imposed | 'No | ' | ' | |||
Expiration Date of Collective-Bargaining Agreement | 31-May-15 | ' | ' | |||
IBEW Local Four Five Six Pension Plan [Member] [Domain] | ' | ' | ' | |||
Multiemployer Pension Plans | ' | ' | ' | |||
EIN/Pension Plan Number | '22-6238995/001 | ' | ' | |||
Pension Protection Act Zone Status | 'Yellow | 'Yellow | ' | |||
FIP/RP Status Pending or Implemented | 'Implemented | ' | ' | |||
Total contributions made | 940 | 2,384 | 977 | |||
Surcharge Imposed | 'No | ' | ' | |||
Expiration Date of Collective-Bargaining Agreement | 31-May-17 | ' | ' | |||
Local 351 IBEW Pension Plan [Member] | ' | ' | ' | |||
Multiemployer Pension Plans | ' | ' | ' | |||
EIN/Pension Plan Number | '22-3417366/001 | ' | ' | |||
Multiemployer Plans, Certified Zone Status, Description | 'Described below (3) | [3] | ' | ' | ||
Pension Protection Act Zone Status | ' | 'Yellow | ' | |||
FIP/RP Status Pending or Implemented | 'Implemented | ' | ' | |||
Total contributions made | 2,218 | 2,281 | 1,140 | |||
Surcharge Imposed | 'No | ' | ' | |||
Expiration Date of Collective-Bargaining Agreement | 27-Sep-16 | ' | ' | |||
Steamfitters Local Union Number Four Two Zero Pension Plan [Member] [Domain] | ' | ' | ' | |||
Multiemployer Pension Plans | ' | ' | ' | |||
EIN/Pension Plan Number | '23-2004424/001 | ' | ' | |||
Pension Protection Act Zone Status | 'Red | 'Red | ' | |||
FIP/RP Status Pending or Implemented | 'Implemented | ' | ' | |||
Total contributions made | 1,677 | 1,622 | 813 | |||
Surcharge Imposed | 'Yes | ' | ' | |||
Expiration Date of Collective-Bargaining Agreement | 30-Apr-17 | ' | ' | |||
Indiana Laborers Pension Fund [Domain] | ' | ' | ' | |||
Multiemployer Pension Plans | ' | ' | ' | |||
EIN/Pension Plan Number | '35-6027150/001 | ' | ' | |||
Pension Protection Act Zone Status | 'Yellow | 'Yellow | ' | |||
Total contributions made | 1,268 | 0 | 0 | |||
Surcharge Imposed | 'No | ' | ' | |||
Expiration Date of Collective-Bargaining Agreement | 31-May-17 | ' | ' | |||
Ironworkers Mid-America Pension Plan [Member] | ' | ' | ' | |||
Multiemployer Pension Plans | ' | ' | ' | |||
EIN/Pension Plan Number | '36-6488227/001 | ' | ' | |||
Pension Protection Act Zone Status | 'Green | 'Green | ' | |||
Total contributions made | $1,156 | $0 | $0 | |||
Surcharge Imposed | 'No | ' | ' | |||
Expiration Date of Collective-Bargaining Agreement | 31-May-15 | ' | ' | |||
[1] | Our contributions for the Joint Pension Fund Local Union 164 IBEW exceeded 5% of total contributions for the 2012 plan year. This information was not available for the 2013 plan year. | |||||
[2] | Our collective bargaining agreements with the Boilermaker-Blacksmith National Pension Trust are under a National Maintenance Agreement platform which is evergreen in terms of expiration. However, the agreements allow for termination of the collective bargaining agreement by either party with a predetermined written notice. | |||||
[3] | For the Local 351 IBEW Pension Plan, the Company has not received a funding notification that covers the Company's fiscal year 2014 during the preparation of this Form 10-K. Under Federal pension law, if a multiemployer pension plan is determined to be in critical or endangered status, the plan must provide notice of this status to participants, beneficiaries, the bargaining parties, the Pension Benefit Guaranty Corporation, and the Department of Labor. The Company also observed that the Local 351 IBEW Pension Plan has not submitted any Critical or Endangered Status Notices to the Department of Labor for 2014 (which can be accessed at http://www.dol.gov/ebsa/criticalstatusnotices.html). |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Employee Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Percentage of limitation on pretax compensation | 25.00% | ' | ' |
Company match of first 3% of employee contributions | 100.00% | ' | ' |
Percentage of employee contribution for first half | 3.00% | ' | ' |
Employee contribution for next 2% | 50.00% | ' | ' |
Percentage of employee contribution for next half | 2.00% | ' | ' |
Contribution made by company | $4,100,000 | $3,400,000 | $3,300,000 |
Employee share purchase limit aggregate market value | $60,000 | ' | ' |
Shares available at ESPP | 1,000,000 | ' | ' |
Employee Stock Purchase Plan, Termination Date | 2-Jan-21 | ' | ' |
Shares issued under ESPP | 5,440 | 4,452 | 4,395 |
Zone Red [Member] | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Percentage of plan funded | 65.00% | ' | ' |
Description of plans funded | 'less than 65 percent | ' | ' |
Zone Yellow [Member] | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Percentage of plan funded | 80.00% | ' | ' |
Description of plans funded | 'less than 80 percent | ' | ' |
Zone Green [Member] | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Percentage of plan funded | 80.00% | ' | ' |
Description of plans funded | 'at least 80 percent | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $1,263,089 | $892,574 | $739,046 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,263,089 | 892,574 | 739,046 |
Gross profit | 36,903 | 39,944 | 34,150 | 25,476 | 26,999 | 23,126 | 22,333 | 22,244 | 136,473 | 94,702 | 79,618 |
Operating income (loss) | 14,209 | 18,819 | 14,817 | 10,762 | 11,587 | 8,431 | 8,722 | 7,924 | 58,607 | 36,714 | 31,635 |
Segment assets | 568,932 | ' | ' | ' | 409,978 | ' | ' | ' | 568,932 | 409,978 | 323,135 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 23,589 | 23,231 | 13,534 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 18,518 | 12,782 | 11,485 |
Electrical Infrastructure [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 205,570 | 171,204 | 135,086 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 205,570 | 171,204 | 135,086 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 20,629 | 21,754 | 16,676 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 7,703 | 11,185 | 7,609 |
Segment assets | 120,264 | ' | ' | ' | 64,771 | ' | ' | ' | 120,264 | 64,771 | 51,998 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 9,055 | 2,129 | 2,581 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,292 | 2,167 | 1,823 |
Oil Gas & Chemical [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 239,690 | 273,848 | 205,823 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 239,690 | 273,848 | 205,823 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 26,912 | 32,879 | 20,070 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 9,939 | 15,415 | 8,134 |
Segment assets | 72,406 | ' | ' | ' | 75,591 | ' | ' | ' | 72,406 | 75,591 | 53,567 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 5,421 | 2,942 | 2,346 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,768 | 2,943 | 2,838 |
Storage Solutions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 68,448 | 37,455 | 42,393 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 34,310 | 11,904 | 17,493 |
Segment assets | 200,493 | ' | ' | ' | 159,149 | ' | ' | ' | 200,493 | 159,149 | 150,543 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 2,519 | 9,929 | 3,929 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 7,707 | 6,740 | 6,309 |
Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 20,484 | 2,614 | 479 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 6,655 | -1,790 | -1,601 |
Segment assets | 105,049 | ' | ' | ' | 27,347 | ' | ' | ' | 105,049 | 27,347 | 14,018 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,157 | 1,645 | 741 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,751 | 932 | 515 |
Unallocated Corporate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment assets | 70,720 | ' | ' | ' | 83,120 | ' | ' | ' | 70,720 | 83,120 | 53,009 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 5,437 | 6,586 | 3,937 |
Gross [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,264,460 | 895,298 | 741,588 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,264,460 | 895,298 | 741,588 |
Gross [Member] | Electrical Infrastructure [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 205,570 | 171,204 | 135,086 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 205,570 | 171,204 | 135,086 |
Gross [Member] | Oil Gas & Chemical [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 240,131 | 273,979 | 206,031 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 240,131 | 273,979 | 206,031 |
Gross [Member] | Storage Solutions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 611,826 | 395,794 | 380,488 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 611,826 | 395,794 | 380,488 |
Gross [Member] | Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 206,933 | 54,321 | 19,983 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 206,933 | 54,321 | 19,983 |
Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 206,933 | 54,321 | 19,983 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 206,933 | 54,321 | 19,983 |
Storage Solutions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 610,896 | 393,201 | 378,154 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 610,896 | 393,201 | 378,154 |
Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,371 | 2,724 | 2,542 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,371 | 2,724 | 2,542 |
Intersegment Eliminations [Member] | Electrical Infrastructure [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Oil Gas & Chemical [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 441 | 131 | 208 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 441 | 131 | 208 |
Intersegment Eliminations [Member] | Storage Solutions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 930 | 2,593 | 2,334 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 930 | 2,593 | 2,334 |
Intersegment Eliminations [Member] | Industrial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Results of Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Less: Inter-segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Summary of revenues and long lived assets according to geographic areas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $344,358 | $381,516 | $310,998 | $226,217 | $235,560 | $225,970 | $221,436 | $209,608 | $1,263,089 | $892,574 | $739,046 |
Long-Lived Assets | 193,384 | ' | ' | ' | 113,959 | ' | ' | ' | 193,384 | 113,959 | 91,422 |
Domestic [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of revenues and long lived assets according to geographic areas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,149,262 | 814,879 | 674,496 |
Long-Lived Assets | 164,894 | ' | ' | ' | 101,581 | ' | ' | ' | 164,894 | 101,581 | 85,290 |
International [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of revenues and long lived assets according to geographic areas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 113,827 | 77,695 | 64,550 |
Long-Lived Assets | $28,490 | ' | ' | ' | $12,378 | ' | ' | ' | $28,490 | $12,378 | $6,132 |
Segment_Information_Details_Te
Segment Information (Details Textual) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Customer One [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 17.30% | 10.70% | 11.00% |
Customer Two [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 12.70% | ' | ' |
Another Customer [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | ' | ' | 10.70% |
Electrical Infrastructure [Member] | Customer One [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 20.80% | 24.90% | 18.60% |
Electrical Infrastructure [Member] | Customer Two [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 17.50% | 19.60% | 11.80% |
Electrical Infrastructure [Member] | Customer Three [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 17.00% | 12.60% | 11.20% |
Electrical Infrastructure [Member] | Customer Four [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 10.80% | 11.10% | ' |
Oil Gas & Chemical [Member] | Customer One [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 18.30% | 20.70% | 35.10% |
Oil Gas & Chemical [Member] | Customer Two [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 14.00% | 16.10% | 16.20% |
Oil Gas & Chemical [Member] | Customer Three [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 10.20% | 10.00% | ' |
Storage Solutions [Member] | Customer One [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 35.80% | 24.30% | ' |
Storage Solutions [Member] | Customer Two [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 26.30% | 10.60% | ' |
Storage Solutions [Member] | Another Customer [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | ' | ' | 20.90% |
Industrial [Member] | Customer One [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 23.30% | 23.30% | 25.70% |
Industrial [Member] | Customer Two [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 15.10% | 20.50% | 18.10% |
Industrial [Member] | Customer Three [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 13.00% | 16.40% | 15.30% |
Industrial [Member] | Customer Four [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 12.70% | ' | 12.20% |
Industrial [Member] | Customer Five [Member] [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Percentage of Revenue | 11.30% | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Aug. 22, 2014 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Acquisition purchase price | $5.25 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales Revenue, Services, Net | $344,358 | $381,516 | $310,998 | $226,217 | $235,560 | $225,970 | $221,436 | $209,608 | $1,263,089 | $892,574 | $739,046 |
Gross Profit | 36,903 | 39,944 | 34,150 | 25,476 | 26,999 | 23,126 | 22,333 | 22,244 | 136,473 | 94,702 | 79,618 |
Operating income | 14,209 | 18,819 | 14,817 | 10,762 | 11,587 | 8,431 | 8,722 | 7,924 | 58,607 | 36,714 | 31,635 |
Net income | $7,556 | $11,396 | $10,306 | $6,552 | $7,367 | $6,521 | $5,436 | $4,684 | $35,810 | $24,008 | $17,188 |
Basic earnings per common share (in dollars per share) | $0.29 | $0.43 | $0.39 | $0.25 | $0.28 | $0.25 | $0.21 | $0.18 | $1.36 | $0.92 | $0.66 |
Diluted earnings per common share (in dollars per share) | $0.28 | $0.42 | $0.38 | $0.25 | $0.28 | $0.25 | $0.21 | $0.18 | $1.33 | $0.91 | $0.65 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | ||
Balance at Beginning of Period | $885 | $1,431 | $2,202 | ||
Charged to Costs and Expenses | 121 | 585 | -521 | ||
Charged to Other Accounts | 0 | -666 | -250 | ||
Deductions | -712 | -465 | 0 | ||
Balance at End of Period | 294 | 885 | 1,431 | ||
Allowance for Doubtful Accounts [Member] | ' | ' | ' | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | ||
Balance at Beginning of Period | 795 | 1,201 | 1,428 | ||
Charged to Costs and Expenses | 121 | 725 | 23 | ||
Charged to Other Accounts | 0 | -666 | [1] | -250 | |
Deductions | -712 | [2] | -465 | 0 | |
Balance at End of Period | 204 | 795 | 1,201 | ||
Valuation Allowance of Deferred Tax Assets [Member] | ' | ' | ' | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | ||
Balance at Beginning of Period | 90 | 230 | 774 | ||
Charged to Costs and Expenses | 0 | -140 | [3] | -544 | |
Charged to Other Accounts | 0 | 0 | 0 | ||
Deductions | 0 | 0 | 0 | ||
Balance at End of Period | $90 | $90 | $230 | ||
[1] | Collection of a fully reserved receivable recognized as revenue | ||||
[2] | Receivables written off against allowance for doubtful accounts. | ||||
[3] | Release of the valuation allowance on foreign tax credit carryovers which have now been determined to be utilizable |