Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2017 | Feb. 05, 2018 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MTRX | |
Entity Registrant Name | MATRIX SERVICE CO | |
Entity Central Index Key | 866,273 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,817,064 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 282,911 | $ 312,655 | $ 552,821 | $ 654,436 |
Cost of revenues | 256,208 | 284,443 | 497,227 | 593,946 |
Gross profit | 26,703 | 28,212 | 55,594 | 60,490 |
Selling, general and administrative expenses | 21,529 | 19,975 | 43,099 | 37,952 |
Operating income | 5,174 | 8,237 | 12,495 | 22,538 |
Other income (expense): | ||||
Interest expense | (819) | (497) | (1,437) | (740) |
Interest income | 65 | 26 | 104 | 38 |
Other | (135) | 47 | 14 | 54 |
Income before income tax expense | 4,285 | 7,813 | 11,176 | 21,890 |
Provision for federal, state and foreign income taxes | (247) | 2,563 | 2,820 | 7,298 |
Net income | $ 4,532 | $ 5,250 | $ 8,356 | $ 14,592 |
Basic earnings (loss) per common share (US$ per share) | $ 0.17 | $ 0.20 | $ 0.31 | $ 0.55 |
Diluted earnings (loss) per common share (US$ per share) | $ 0.17 | $ 0.20 | $ 0.31 | $ 0.54 |
Weighted average common shares outstanding: | ||||
Basic (shares) | 26,771 | 26,553 | 26,713 | 26,470 |
Diluted (shares) | 27,078 | 26,832 | 26,933 | 26,842 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,532 | $ 5,250 | $ 8,356 | $ 14,592 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) (net of tax of $16 and $37 for the three months ended September 30, 2017 and 2016, respectively) | 429 | (1,718) | 1,536 | (1,997) |
Comprehensive income | $ 4,961 | $ 3,532 | $ 9,892 | $ 12,595 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 20 | $ 69 | $ 36 | $ 106 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 74,087 | $ 43,805 |
Accounts receivable, less allowances (September 30, 2017— $9,889 and June 30, 2017—$9,887) | 183,451 | 210,953 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 64,221 | 91,180 |
Inventories | 4,525 | 3,737 |
Income taxes receivable | 3,396 | 4,042 |
Other current assets | 7,826 | 4,913 |
Total current assets | 337,506 | 358,630 |
Property, plant and equipment at cost: | ||
Land and buildings | 39,622 | 38,916 |
Construction equipment | 90,710 | 94,298 |
Transportation equipment | 48,647 | 48,574 |
Office equipment and software | 37,169 | 36,556 |
Construction in progress | 3,719 | 5,952 |
Property, plant and equipment at cost, gross | 219,867 | 224,296 |
Accumulated depreciation | (143,680) | (144,022) |
Property, plant and equipment at cost, net | 76,187 | 80,274 |
Goodwill | 113,845 | 113,501 |
Other intangible assets | 25,364 | 26,296 |
Deferred income taxes | 2,794 | 3,385 |
Other assets | 2,170 | 3,944 |
Total assets | 557,866 | 586,030 |
Current liabilities: | ||
Accounts payable | 71,253 | 105,649 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 66,376 | 75,127 |
Accrued wages and benefits | 19,378 | 20,992 |
Accrued insurance | 8,691 | 9,340 |
Income taxes payable | 17 | 169 |
Other accrued expenses | 4,183 | 7,699 |
Total current liabilities | 169,898 | 218,976 |
Deferred income taxes | 1,158 | 128 |
Borrowings under senior revolving credit facility | 50,908 | 44,682 |
Other liabilities | 316 | 435 |
Total liabilities | 222,280 | 264,221 |
Commitments and contingencies | ||
Matrix Service Company stockholders' equity: | ||
Common stock—$.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of September 30, 2017, and June 30, 2017; 26,727,975 and 26,600,562 shares outstanding as of September 30, 2017 and June 30, 2017 | 279 | 279 |
Additional paid-in capital | 128,235 | 128,419 |
Retained earnings | 231,330 | 222,974 |
Accumulated other comprehensive loss | (5,788) | (7,324) |
Matrix Service Company stockholders' equity | 354,056 | 344,348 |
Less: Treasury stock, at cost — 1,160,242 shares as of September 30, 2017, and 1,287,655 shares as of June 30, 2017 | (18,470) | (22,539) |
Total stockholders' equity | 335,586 | 321,809 |
Total stockholders' equity | 335,586 | 321,809 |
Total liabilities and stockholders’ equity | $ 557,866 | $ 586,030 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Statement Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowances | $ 6,342 | $ 9,887 |
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 |
Common stock, shares outstanding | 26,811,676 | 26,600,562 |
Treasury stock, shares | 1,076,541 | 1,287,655 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | ||
Net income | $ 8,356 | $ 14,592 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 10,906 | 9,988 |
Deferred income tax | 1,657 | 970 |
Gain on sale of property, plant and equipment | (103) | (131) |
Provision for uncollectible accounts | 12 | (34) |
Stock-based compensation expense | 4,353 | 3,547 |
Other | 194 | 133 |
Changes in operating assets and liabilities increasing (decreasing) cash: | ||
Accounts receivable | 25,489 | (48,972) |
Costs and estimated earnings in excess of billings on uncompleted contracts | 26,959 | 24,451 |
Inventories | (788) | (259) |
Other assets and liabilities | (475) | (3,974) |
Accounts payable | (34,018) | (34,276) |
Billings on uncompleted contracts in excess of costs and estimated earnings | (8,751) | 4,883 |
Accrued expenses | (4,211) | (1,826) |
Net cash provided (used) by operating activities | 29,580 | (30,908) |
Investing activities: | ||
Acquisition, net of cash acquired | (1,687) | (39,798) |
Acquisition of property, plant and equipment | (4,051) | (4,208) |
Proceeds from asset sales | 420 | 196 |
Net cash used by investing activities | (5,318) | (43,810) |
Financing activities: | ||
Advances under senior revolving credit facility | 85,669 | 102,084 |
Repayments of advances under senior revolving credit facility | (79,443) | (29,672) |
Payments of debt issuance costs | (364) | (168) |
Issuances of common stock | 0 | 222 |
Proceeds from issuance of common stock under employee stock purchase plan | 144 | 169 |
Repurchase of common stock for payment of statutory taxes due on equity-based compensation | (612) | (2,270) |
Net cash provided (used) by financing activities | 5,394 | 70,365 |
Effect of exchange rate changes on cash and cash equivalents | 626 | (1,073) |
Increase (decrease) in cash and cash equivalents | 30,282 | (5,426) |
Cash and cash equivalents, beginning of period | 43,805 | 71,656 |
Cash and cash equivalents, end of period | 74,087 | 66,230 |
Supplemental disclosure of cash flow information: | ||
Income taxes | 665 | 8,361 |
Interest | 1,340 | 399 |
Non-cash investing and financing activities: | ||
Purchases of property, plant and equipment on account | $ 105 | $ 421 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning equity balances, as adjusted | $ 315,566 | $ 279 | $ 127,058 | $ 223,157 | $ (26,907) | $ (6,845) | $ (1,176) |
Retrospective adjustment upon adoption of ASU 2016-09 | 0 | 100 | (100) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2016 | 315,566 | 279 | 126,958 | 223,257 | (26,907) | (6,845) | (1,176) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 14,592 | 14,592 | 0 | ||||
Other comprehensive income (loss) | (1,997) | (1,997) | |||||
Treasury shares sold to Employee Stock Purchase Plan | 169 | 12 | 157 | ||||
Exercise of stock options | 222 | (273) | 495 | ||||
Issuance of deferred shares | 0 | (5,685) | 5,685 | ||||
Other treasury share purchases | (2,270) | (2,270) | |||||
Stock-based compensation expense | 3,547 | 3,547 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2016 | 329,829 | 279 | 124,659 | 237,749 | (22,840) | (8,842) | (1,176) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2017 | 321,809 | 279 | 128,419 | 222,974 | (22,539) | (7,324) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 8,356 | 8,356 | 0 | ||||
Other comprehensive income (loss) | 1,536 | 1,536 | |||||
Treasury shares sold to Employee Stock Purchase Plan | 144 | (109) | 253 | ||||
Issuance of deferred shares | 0 | (4,428) | 4,428 | ||||
Other treasury share purchases | (612) | (612) | |||||
Stock-based compensation expense | 4,353 | 4,353 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2017 | $ 335,586 | $ 279 | $ 128,235 | $ 231,330 | $ (18,470) | $ (5,788) | $ 0 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares | 6 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Exercise of stock options, shares | 0 | 21,713 |
Issuance of deferred shares, shares | 250,874 | 393,530 |
Employee Stock Purchase Plan, shares | 12,283 | 9,577 |
Other treasury shares purchases, shares | 52,043 | 133,322 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 6 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Accounting Policies The condensed consolidated financial statements include the accounts of Matrix Service Company (“Matrix”, “we”, “our”, “us”, “its” or the “Company”) and its subsidiaries, unless otherwise indicated. Intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission and do not include all information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. The information furnished reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair statement of the results of operations, cash flows and financial position for the interim periods presented. The accompanying condensed financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2017 , included in the Company’s Annual Report on Form 10-K for the year then ended. The results of operations for the six month period ended December 31, 2017 may not necessarily be indicative of the results of operations for the full year ending June 30, 2018 . Recently Issued Accounting Standards Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09. 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.” 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"). The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted on a limited basis. The Company is currently evaluating the impact of adopting the ASU on the Company's financial position, results of operations, cash flows and related disclosures. Adoption of this ASU is expected to affect the manner in which the Company determines the unit of account for its projects (i.e., performance obligations). Under existing guidance, the Company may have multiple performance obligations for large, complex projects. Upon adoption, the Company expects that similar projects may have fewer performance obligations, possibly just one in some cases, which will result in a more constant recognition of revenue and profit over the term of the project. In addition, management expects that profit could be recognized earlier for contract amounts related to unapproved change orders and claims. The Company will adopt this standard on July 1, 2018 using the modified retrospective method of application, which may result in a cumulative effect adjustment to retained earnings as of the date of adoption. The Company has developed its revised accounting policy for revenue recognition and continues to review its contracts in order to validate the new accounting policy and reassess its processes and internal controls. At this time, we cannot reliably estimate the amount of any potential retrospective adjustment. Accounting Standards Update 2016-02, Leases (Topic 842) On February 25, 2016, the FASB issued ASU 2016-02. The amendments in this update require, among other things, that lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, but we do not plan to do so at this time. We are currently evaluating the ASU's expected impact on our financial statements. See Note 8 of Item 8. Financial Statements and Supplementary Data in our 2017 Form 10-K for more information about the timing and amount of future operating lease payments, which we believe is indicative of the materiality of adoption of the ASU to our financial statements. Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments On June 16, 2016, the FASB issued ASU 2016-13, which will change how the Company accounts for its allowance for uncollectible accounts. The amendments in this update require a financial asset (or a group of financial assets) to be presented at the net amount expected to be collected. The income statement will reflect any increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. Current GAAP delays the recognition of the full amount of credit losses until the loss is probable of occurring. The amendments in this update eliminate the probable initial recognition threshold and, instead, reflect the Company's current estimate of all expected credit losses. In addition, current guidance limits the information the Company may consider in measuring a credit loss to its past events and current conditions. The amendments in this update broaden the information the Company may consider in developing its expected credit loss estimate to include forecasted information. The amendments in this update are effective for the Company on July 1, 2020 and the Company may early adopt on July 1, 2019. The Company must apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. At this time, the Company does not expect this update to have a material impact to its estimate of the allowance for uncollectible accounts. Accounting Standards Update 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. Entities should apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. ASU 2017-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted and prospective application is required. The Company does not expect the adoption of ASU 2017-09 to have a material impact on its financial position, results of operations or cash flows. |
Acquisitions (Notes)
Acquisitions (Notes) | 6 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions Purchase of Houston Interests, LLC On December 12, 2016 , the Company completed the acquisition of Houston Interests, LLC ("Houston Interests"), a premier global solutions company that provides consulting, engineering, design, construction services and systems integration. Houston Interests brings expertise to the Company in natural gas processing; sulfur recovery, processing and handling; liquid terminals, silos and other bulk storage; process plant design; power generation environmental controls and material handling; industrial power distribution; electrical, instrumentation and controls; marine structures; material handling systems and terminals for cement, sulfur, fertilizer, coal and grain facilities; and process heaters. The business has been included in our Matrix PDM Engineering, Inc. subsidiary, and its operating results impact primarily the Oil Gas & Chemical and Industrial segments. The Company purchased all of the equity interests of Houston Interests for $42.5 million in cash, net of working capital adjustments and cash acquired. The consideration paid is as follows (in thousands): Cash paid for equity interest $ 46,000 Cash paid for working capital 6,837 Less: cash acquired (10,331 ) Net purchase price $ 42,506 The Company funded the equity interest portion of the consideration paid from borrowings under the Company's senior secured revolving credit facility (See Note 5). The purchase of working capital was paid with cash on hand. Cash paid for acquisitions of $39.8 million for the six months ended December 31, 2016 does not reflect $1.0 million of working capital that was paid subsequent to December 31, 2016. The net 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 net purchase price allocation (in thousands): Cash $ 10,331 Accounts receivable 10,273 Costs and estimated earnings in excess of billings on uncompleted contracts 746 Other current assets 454 Current assets 21,804 Property, plant and equipment 942 Goodwill 35,146 Other intangible assets 10,220 Total assets acquired 68,112 Accounts payable 962 Billings on uncompleted contracts in excess of costs and estimated earnings 11,648 Other accrued expenses 2,475 Current liabilities 15,085 Other liabilities 190 Net assets acquired 52,837 Less: cash acquired 10,331 Net purchase price $ 42,506 The goodwill recognized from the acquisition is primarily attributable to the technical expertise of the acquired workforce and the complementary nature of Houston Interests' operations, which the Company believes will enable the combined entity to expand its service offerings and enter new markets. All of the goodwill recognized is deductible for income tax purposes. The Company has agreed to pay the previous owners up to $2.6 million for any unused portion of acquired warranty obligations outstanding as of June 30, 2017. This agreement was settled for $1.7 million , which was paid in July 2017. This settlement was reflected as a decrease to the acquired current liabilities and an increase to the net purchase price. The unaudited financial information in the table below summarizes the combined results of operations of Matrix Service Company and Houston Interests for the three and six months ended December 31, 2016, on a pro forma basis, as though the companies had been combined as of July 1, 2015. The pro forma financial information presented in the table below is 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, 2015 nor should it be taken as indicative of future consolidated results of operations. Three Months Ended Six Months Ended December 31, 2016 December 31, 2016 (In thousands, except per share data) Revenues $ 329,523 $ 690,485 Net income $ 7,884 $ 18,763 Basic earnings per common share $ 0.30 $ 0.71 Diluted earnings per common share $ 0.29 $ 0.70 The pro forma financial information presented in the table above includes the following adjustments to the combined entities' historical financial statements: • Pro forma earnings were adjusted to include $0.4 million and $0.8 million of integration expenses during the three and six months ended December 31, 2016, respectively, that would have been recognized had the acquisition occurred on July 1, 2015. • Pro forma earnings were adjusted to include $0.3 million and $0.7 million of interest expense during the three and six months ended December 31, 2016, respectively. The interest was attributable to the assumption that the Company's borrowings of $46.0 million used to fund the net purchase price had been outstanding as of July 1, 2015. This interest was partially offset by the assumption that Houston Interests' former debt was extinguished as of July 1, 2015. • Pro forma earnings were adjusted to exclude $0.2 million and $0.3 million of depreciation and intangible asset amortization expense during the three and six months ended December 31, 2016, respectively. This adjustment is due to the recognition of amortizable intangible assets as part of the acquisition and the effect of fair value adjustments to acquired property, plant and equipment. • Pro forma earnings were adjusted to include income tax expense of $1.9 million and $3.3 million during the three and six months ended December 31, 2016, respectively. Houston Interests was previously an exempt entity and income taxes were not assessed in its historical financial information. |
Uncompleted Contracts (Notes)
Uncompleted Contracts (Notes) | 6 Months Ended |
Dec. 31, 2017 | |
Disclosure Customer Contracts Additional Information [Abstract] | |
Uncompleted Contracts | Uncompleted 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 recognized on uncompleted contracts is reported as a current liability. Gross and net amounts on uncompleted contracts are as follows: December 31, June 30, (in thousands) Costs incurred and estimated earnings recognized on uncompleted contracts $ 2,152,981 $ 1,919,054 Billings on uncompleted contracts 2,155,136 1,903,001 $ (2,155 ) $ 16,053 Shown in balance sheet as: Costs and estimated earnings in excess of billings on uncompleted contracts $ 64,221 $ 91,180 Billings on uncompleted contracts in excess of costs and estimated earnings 66,376 75,127 $ (2,155 ) $ 16,053 Progress billings in accounts receivable at December 31, 2017 and June 30, 2017 included retentions to be collected within one year of $32.2 million and $54.3 million , respectively. Contract retentions collectible beyond one year are included in other assets in the condensed consolidated balance sheet and totaled $1.9 million as of June 30, 2017. There were no retentions collectible beyond one year as of December 31, 2017. |
Intangible Assets Including Goo
Intangible Assets Including Goodwill (Notes) | 6 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Including Goodwill | Intangible Assets Including Goodwill Goodwill The changes in the carrying value of goodwill by segment are as follows: Electrical Infrastructure Oil Gas & Chemical Storage Solutions Industrial Total (In thousands) Net balance at June 30, 2017 $ 42,152 $ 33,604 $ 16,764 $ 20,981 $ 113,501 Translation adjustment (1) 184 — 126 34 344 Net balance at December 31, 2017 $ 42,336 $ 33,604 $ 16,890 $ 21,015 $ 113,845 (1) The translation adjustments relate to the periodic translation of Canadian Dollar and South Korean Won denominated goodwill recorded as a part of prior acquisitions in Canada and South Korea, in which the local currency was determined to be the functional currency. We performed our annual goodwill impairment test as of May 31, 2017, which resulted in no impairment. However, the aggregate difference between the fair values of our reporting units and their carrying amounts decreased significantly since the previous year's test as a result of market conditions at that time. The fair value of one reporting unit (carrying value of goodwill of $8.0 million ) only exceeded its carrying amount by 9% . The valuation model for this reporting unit assumed the award of a significant project prior to the end of the second fiscal quarter, with project work to commence shortly thereafter. This project award was subsequently obtained during the first fiscal quarter of 2018. Management is not aware of any qualitative indicators of goodwill impairment as of December 31, 2017. The Company will continue to monitor for indicators of impairment and perform additional tests as needed. Other Intangible Assets Information on the carrying value of other intangible assets is as follows: At December 31, 2017 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 9 to 15 $ 2,579 $ (1,514 ) $ 1,065 Customer-based 6 to 15 40,339 (16,092 ) 24,247 Non-compete agreements 4 1,453 (1,401 ) 52 Trade names — 1,630 (1,630 ) — Total amortizing intangible assets $ 46,001 $ (20,637 ) $ 25,364 At June 30, 2017 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 9 to 15 $ 2,579 $ (1,425 ) $ 1,154 Customer-based 1 to 15 38,207 (13,543 ) 24,664 Non-compete agreements 4 to 5 1,453 (1,298 ) 155 Trade names 1 to 3 1,630 (1,307 ) 323 Total amortizing intangible assets $ 43,869 $ (17,573 ) $ 26,296 In December 2017, the Company settled a portion of an account receivable with a customer in exchange for $50.0 million of backlog, which the Company expects to recognize as revenue over the next six years. The Company has recognized the backlog as a customer-based intangible asset with an estimated fair value of $2.0 million . The value assigned to the backlog approximated the net book value of the account receivable included in the settlement. The amortization expense will be recognized as the work is completed. Amortization expense totaled $1.4 million and $3.0 million during the three and six months ended December 31, 2017 , respectively, and $1.0 million and $1.8 million during the three and six months ended December 31, 2016 , respectively. We estimate that the remaining amortization expense related to December 31, 2017 amortizing intangible assets will be as follows (in thousands): Period ending: Remainder of Fiscal 2018 $ 1,932 Fiscal 2019 3,851 Fiscal 2020 3,834 Fiscal 2021 3,822 Fiscal 2022 2,954 Fiscal 2023 2,418 Thereafter 6,553 Total estimated remaining amortization expense at December 31, 2017 $ 25,364 |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt On February 8, 2017, the Company entered into the Fourth Amended and Restated Credit Agreement (the "Credit Agreement"), by and among the Company and certain foreign subsidiaries, as Borrowers, various subsidiaries of the Company, as Guarantors, JPMorgan Chase Bank, N.A., as Administrative Agent, Sole Lead Arranger and Sole Bookrunner, and the other Lenders party thereto. The Credit Agreement provides for a five-year senior secured revolving credit facility of $300.0 million that expires February 8, 2022 . The credit facility may be used for working capital, acquisitions, capital expenditures, issuances of letters of credit and other lawful purposes. Except as described in the paragraph below for the August 31, 2017 amendment, the Credit Agreement includes the following covenants and borrowing limitations: • Our Leverage Ratio, determined as of the end of each fiscal quarter, may not exceed 3.00 to 1.00 . • We are required to maintain a Fixed Charge Coverage Ratio, determined as of the end of each fiscal quarter, greater than or equal to 1.25 to 1.00 . • Asset dispositions (other than dispositions in which all of the net cash proceeds therefrom are reinvested into the Company and dispositions of inventory and obsolete or unneeded equipment in the ordinary course of business) are limited to $20.0 million per 12-month period. The credit facility includes a sub-facility for revolving loans denominated in Australian Dollars, Canadian Dollars, Euros and Pounds Sterling in an aggregate amount not to exceed the U.S. Dollar equivalent of $75.0 million and a $200.0 million sublimit for letters of credit. Each revolving borrowing under the Credit Agreement will bear interest at a rate per annum equal to: • The ABR or the Adjusted LIBO Rate, in the case of revolving loans denominated in U.S. Dollars; • The Canadian Prime Rate or the CDOR rate, in the case of revolving loans denominated in Canadian Dollars; • The Adjusted LIBO Rate, in the case of revolving loans denominated in Pounds Sterling or Australian Dollars; or • The EURIBO Rate, in the case of revolving loans denominated in Euros, in each case, plus the Applicable Margin, which is based on the Company's Leverage Ratio. The Applicable Margin on ABR loans ranges between 0.625% and 1.625% . The Applicable Margin for Adjusted LIBO, EURIBO and CDOR loans ranges between 1.625% and 2.625% and the Applicable Margin for Canadian Prime Rate loans ranges between 2.125% and 3.125% . The unused credit facility fee is between 0.25% and 0.45% based on the Leverage Ratio. The Credit Agreement includes a Leverage Ratio covenant, which provides that Consolidated Funded Indebtedness, as of the end of any fiscal quarter, may not exceed 3.0 times Consolidated EBITDA, as defined in the Credit Agreement, over the previous four quarters. For the four quarters ended December 31, 2017 , Consolidated EBITDA was $25.9 million . Consolidated Funded Indebtedness at December 31, 2017 was $77.9 million . On August 31, 2017, the Company entered in to an amendment to its Credit Agreement, which provided the following: • The maximum permitted Leverage Ratio was temporarily increased to 4.00 to 1.00 for the quarters ending September 30, 2017, and December 31, 2017. The maximum Leverage Ratio will revert back to 3.00 to 1.00 beginning with the quarter ending March 31, 2018. • The Fixed Charge Coverage Ratio will not be tested for the quarters ending September 30, 2017 and December 31, 2017, but will be in effect and tested quarterly thereafter beginning with the quarter ending March 31, 2018. • A new minimum Consolidated EBITDA covenant was added solely for the four-quarter period ending December 31, 2017. For this period, the Company is required to achieve Consolidated EBITDA of $15.0 million . • The Restricted Payments covenant was amended to restrict cash dividends and share repurchases during the period beginning August 31, 2017 and ending December 31, 2017 to an aggregate basket of $5.0 million . In addition, during such period, both cash dividends and share repurchases are prohibited unless the pro forma Leverage Ratio is less than or equal to 2.50 to 1.00 . Thereafter, the restriction reverts back to limiting cash dividends to 50% of net income for each fiscal year, and limiting share repurchases to $30.0 million per calendar year. • An additional increased pricing tier was added for the "Covenant Relief Period" beginning on August 31, 2017 and ending on the date we deliver our financial statements and compliance certificate for the fiscal quarter ending December 31, 2017. If our Leverage Ratio as of any quarterly calculation date during the Covenant Relief Period exceeds 3.00 to 1.00: (1) the Applicable Margin on ABR loans will be 1.875% ; (2) the Applicable Margin for Adjusted LIBO, EURIBO and CDOR will be 2.875% ; (3) the Applicable Margin for Canadian Prime Rate loans will be 3.375% ; and (4) the unused credit facility fee will be 0.50% . Availability under the senior secured revolving credit facility at December 31, 2017 was as follows: December 31, June 30, (In thousands) Senior secured revolving credit facility $ 300,000 $ 300,000 Capacity constraint due to the Senior Leverage Ratio 196,484 169,092 Capacity under the credit facility 103,516 130,908 Borrowings outstanding 50,908 44,682 Letters of credit 27,026 7,825 Availability under the senior secured revolving credit facility $ 25,582 $ 78,401 Outstanding borrowings at December 31, 2017 under our Credit Agreement were primarily used to fund the acquisition of Houston Interests (See Note 2) and working capital needs in our Canadian business due to the timing of collections and disbursements on on a major project in the Electrical Infrastructure segment. At December 31, 2017 , the Company was in compliance with all affirmative, negative, and financial covenants under the Credit Agreement. |
Income Taxes (Notes)
Income Taxes (Notes) | 6 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We use the asset and liability approach for financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances based on our judgments and estimates are established when necessary to reduce deferred tax assets to the amount expected to be realized in future operating results. Company management believes that realization of deferred tax assets in excess of the valuation allowance is more likely than not. Our estimates are based on facts and circumstances in existence as well as interpretations of existing tax regulations and laws applied to the facts and circumstances. The Company provides for income taxes regardless of whether it has received a tax assessment. Taxes are provided when it is considered probable that additional taxes will be due in excess of amounts included in the tax return. The Company regularly reviews exposure to additional income taxes due, and as further information is known or events occur, adjustments may be recorded. Tax Cuts and Jobs Act The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act makes broad and complex changes to the U.S. tax code, which have affected our current results and will affect our future results. The following are significant changes in the tax code that are effective for the Company beginning January 1, 2018: • reducing the Company's U.S. federal corporate income tax rate from 35% to a blended rate of 28.06% for fiscal 2018 as stipulated by the Internal Revenue Code for companies using a June 30th fiscal year end and to 21% for fiscal years thereafter; • generally eliminating U.S. federal income tax on dividends from foreign subsidiaries; • requiring current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; • allowing full expensing of certain assets placed in service from September 27, 2017 and before January 1, 2023; • restricting further deductibility of executive performance compensation in excess of $1.0 million ; and • disallowing certain entertainment expenses. The following are significant changes in the tax code that are effective for the Company beginning July 1, 2018: • eliminating the deduction for domestic production activity; • limiting the annual deduction for business interest; • taxing global intangible low-tax income; • allowing a deduction for domestically earned foreign intangible income; and • establishing a new base erosion and anti-abuse tax on payments between U.S. taxpayers and foreign related parties. As of December 31, 2017 we have not completed our accounting for the tax effects of the Act. However, in certain cases as described below, we have made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. In other cases, we have not been able to make a reasonable estimate and continue to account for those items based on our existing accounting under ASC 740. One-time Transition Tax on Unrepatriated Earnings of Certain Foreign Subsidiaries The Act includes a one-time transition tax based on our total post-1986 foreign earnings and profits (E&P) for which we have previously deferred from U.S. income taxes. We have not completed in its entirety the calculations surrounding this tax, but based on our preliminary calculations, our foreign subsidiaries have overall negative E&P. Therefore, we do not anticipate incurring tax related to this provision of the Act since any return of assets would be a return of capital, not earnings. Due to the preliminary nature of our calculations, no additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax and any outside basis difference inherent in these entities as these amounts continue to be indefinitely reinvested in foreign operations. Deferred Taxes Remeasurement We remeasured our domestic deferred tax assets and liabilities based on the rates at which we expect them to reverse in the future. Section 15 of the Internal Revenue Code stipulates that our fiscal year ending June 30, 2018 will have a blended U.S. federal corporate income tax rate of 28.06%, which is based on the applicable tax rates before and after the Act and the number of days in the tax year. Therefore, domestic deferred taxes reversing prior to July 1, 2018 will be taxed based on the blended rate and reversals occurring thereafter will be taxed at the new 21% tax rate. Our domestic subsidiaries had a net deferred tax liability position as of December 31, 2017, which resulted in a $1.2 million remeasurement reduction of our domestic net deferred tax liabilities. This remeasurement adjustment was based on our best estimate of the timing of our deferred tax reversals. As a fiscal year taxpayer, the timing of the reversal of certain deferred tax assets and liabilities during this fiscal year and beyond is uncertain. Although we have made a reasonable estimate as of December 31, 2017, we will continue to analyze certain aspects of the Act and refine our calculations, which could potentially affect the measurement of our deferred tax balances. Effective Tax Rate Our effective tax rate for the three and six months ended December 31, 2017 was (5.8)% and 25.2% compared to 32.8% and 33.3% in the same period last year. The effective tax rates in fiscal 2018 were positively impacted by the $1.2 million deferred taxes remeasurement adjustment discussed in the previous paragraph and the use of the lower blended U.S. corporate income tax rate, which resulted in a benefit of $0.7 million , of which $0.5 million related to the remeasurement of the first quarter. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 6 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and 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 Costs and estimated earnings in excess of billings on uncompleted contracts included revenues for unapproved change orders and claims of $10.5 million at December 31, 2017 and $11.0 million at June 30, 2017 . Generally, collection of amounts related to unapproved change orders and claims is expected within twelve months. However, since customers may not pay these amounts until final resolution of related claims, 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. |
Earnings per Common Share (Note
Earnings per Common Share (Notes) | 6 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share (“Basic EPS”) is calculated based on the weighted average shares outstanding during the period. Diluted earnings per share (“Diluted EPS”) includes the dilutive effect of stock options and nonvested deferred shares. The computation of basic and diluted earnings per share is as follows: Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, (In thousands, except per share data) Basic EPS: Net income $ 4,532 $ 5,250 $ 8,356 $ 14,592 Weighted average shares outstanding 26,771 26,553 26,713 26,470 Basic earnings per share $ 0.17 $ 0.20 $ 0.31 $ 0.55 Diluted EPS: Weighted average shares outstanding – basic 26,771 26,553 26,713 26,470 Dilutive stock options 34 55 24 53 Dilutive nonvested deferred shares 273 224 196 319 Diluted weighted average shares 27,078 26,832 26,933 26,842 Diluted earnings per share $ 0.17 $ 0.20 $ 0.31 $ 0.54 The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, (In thousands) Nonvested deferred shares 342 64 442 137 |
Segment Information (Notes)
Segment Information (Notes) | 6 Months Ended |
Dec. 31, 2017 | |
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 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. We also provide construction and maintenance services to a variety of power generation facilities, such as combined cycle plants, and natural gas fired power stations. The Oil Gas & Chemical segment includes turnaround activities, plant maintenance, engineering and construction in primarily the downstream and midstream petroleum industries. Our customers in these industries are engaged in refining crude oil and processing, fractionating, and marketing of natural gas and natural gas liquids. Another offering is industrial cleaning services, which include hydroblasting, hydroexcavating, chemical cleaning and vacuum services. We also perform work in the petrochemical, upstream petroleum, and sulfur extraction, recovery and processing markets. The Storage Solutions segment includes new construction of crude and refined products aboveground storage tanks (“ASTs”), as well as planned and emergency maintenance services. The Storage Solutions segment also includes balance of plant work in storage terminals and tank farms. Also included in the Storage Solutions segment is work related to specialty storage tanks, including liquefied natural gas (“LNG”), liquid nitrogen/liquid oxygen (“LIN/LOX”), liquid petroleum (“LPG”) tanks and other specialty vessels, including spheres. Finally, we offer AST products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems and floating roof seals. The Industrial segment primarily includes construction and maintenance work in the iron and steel, mining and minerals, and agricultural industries. Our work in the iron and steel industry is primarily for customers engaged in the production of raw steel. Our work in the mining and minerals industry is primarily for customers engaged in the extraction of copper. Our work in the agricultural industry includes the engineering and design of grain silos, docks and handling systems; the design of control system automation and materials handling for the food industry; and engineering, construction, process design and balance of plant work for fertilizer production facilities. We also perform work in bulk material handling, thermal vacuum chambers, and 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 footnote included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2017 . Intersegment sales and transfers are recorded at cost; therefore, no intersegment profit or loss is recognized. Segment assets consist primarily of cash and cash equivalents, accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts, property, plant and equipment, goodwill and other intangible assets. Results of Operations (In thousands) Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, Gross revenues Electrical Infrastructure $ 64,852 $ 103,158 $ 144,823 $ 191,183 Oil Gas & Chemical 88,396 56,913 174,257 94,741 Storage Solutions 71,233 128,927 142,805 328,577 Industrial 59,260 25,026 92,531 47,753 Total gross revenues $ 283,741 $ 314,024 $ 554,416 $ 662,254 Less: Inter-segment revenues Oil Gas & Chemical $ 37 $ 1,199 $ 245 $ 6,485 Storage Solutions 792 170 1,349 298 Industrial 1 — 1 1,035 Total inter-segment revenues $ 830 $ 1,369 $ 1,595 $ 7,818 Consolidated revenues Electrical Infrastructure $ 64,852 $ 103,158 $ 144,823 $ 191,183 Oil Gas & Chemical 88,359 55,714 174,012 88,256 Storage Solutions 70,441 128,757 141,456 328,279 Industrial 59,259 25,026 92,530 46,718 Total consolidated revenues $ 282,911 $ 312,655 $ 552,821 $ 654,436 Gross profit Electrical Infrastructure $ 5,541 $ 7,225 $ 13,808 $ 12,475 Oil Gas & Chemical 11,768 2,431 22,806 2,432 Storage Solutions 5,298 17,071 12,838 43,524 Industrial 4,096 1,485 6,142 2,059 Total gross profit $ 26,703 $ 28,212 $ 55,594 $ 60,490 Operating income (loss) Electrical Infrastructure $ 1,079 $ 2,164 $ 4,656 $ 3,221 Oil Gas & Chemical 5,198 (1,950 ) 9,332 (4,855 ) Storage Solutions (2,609 ) 8,242 (2,684 ) 25,015 Industrial 1,506 (219 ) 1,191 (843 ) Total operating income $ 5,174 $ 8,237 $ 12,495 $ 22,538 Total assets by segment were as follows: December 31, June 30, Electrical Infrastructure $ 182,568 $ 183,351 Oil Gas & Chemical 127,278 129,177 Storage Solutions 114,057 166,742 Industrial 53,473 53,754 Unallocated assets 80,490 53,006 Total segment assets $ 557,866 $ 586,030 |
Acquisitions (Tables)
Acquisitions (Tables) - Houston Interests, LLC [Member] | 6 Months Ended |
Dec. 31, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Consideration transferred [Table Text Block] | The Company purchased all of the equity interests of Houston Interests for $42.5 million in cash, net of working capital adjustments and cash acquired. The consideration paid is as follows (in thousands): Cash paid for equity interest $ 46,000 Cash paid for working capital 6,837 Less: cash acquired (10,331 ) Net purchase price $ 42,506 |
Schedule of Preliminary Purchase Price Allocation | The following table summarizes the final net purchase price allocation (in thousands): Cash $ 10,331 Accounts receivable 10,273 Costs and estimated earnings in excess of billings on uncompleted contracts 746 Other current assets 454 Current assets 21,804 Property, plant and equipment 942 Goodwill 35,146 Other intangible assets 10,220 Total assets acquired 68,112 Accounts payable 962 Billings on uncompleted contracts in excess of costs and estimated earnings 11,648 Other accrued expenses 2,475 Current liabilities 15,085 Other liabilities 190 Net assets acquired 52,837 Less: cash acquired 10,331 Net purchase price $ 42,506 |
Pro Forma Information | The unaudited financial information in the table below summarizes the combined results of operations of Matrix Service Company and Houston Interests for the three and six months ended December 31, 2016, on a pro forma basis, as though the companies had been combined as of July 1, 2015. The pro forma financial information presented in the table below is 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, 2015 nor should it be taken as indicative of future consolidated results of operations. Three Months Ended Six Months Ended December 31, 2016 December 31, 2016 (In thousands, except per share data) Revenues $ 329,523 $ 690,485 Net income $ 7,884 $ 18,763 Basic earnings per common share $ 0.30 $ 0.71 Diluted earnings per common share $ 0.29 $ 0.70 |
Uncompleted Contracts (Tables)
Uncompleted Contracts (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Disclosure Customer Contracts Additional Information [Abstract] | |
Gross and Net Amount of Uncompleted Contracts | Gross and net amounts on uncompleted contracts are as follows: December 31, June 30, (in thousands) Costs incurred and estimated earnings recognized on uncompleted contracts $ 2,152,981 $ 1,919,054 Billings on uncompleted contracts 2,155,136 1,903,001 $ (2,155 ) $ 16,053 Shown in balance sheet as: Costs and estimated earnings in excess of billings on uncompleted contracts $ 64,221 $ 91,180 Billings on uncompleted contracts in excess of costs and estimated earnings 66,376 75,127 $ (2,155 ) $ 16,053 |
Intangible Assets Including G21
Intangible Assets Including Goodwill (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |
Carrying Value of Goodwill by Segment | The changes in the carrying value of goodwill by segment are as follows: Electrical Infrastructure Oil Gas & Chemical Storage Solutions Industrial Total (In thousands) Net balance at June 30, 2017 $ 42,152 $ 33,604 $ 16,764 $ 20,981 $ 113,501 Translation adjustment (1) 184 — 126 34 344 Net balance at December 31, 2017 $ 42,336 $ 33,604 $ 16,890 $ 21,015 $ 113,845 (1) The translation adjustments relate to the periodic translation of Canadian Dollar and South Korean Won denominated goodwill recorded as a part of prior acquisitions in Canada and South Korea, in which the local currency was determined to be the functional currency. |
Carrying Value of Other Intangible Assets | Information on the carrying value of other intangible assets is as follows: At December 31, 2017 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 9 to 15 $ 2,579 $ (1,514 ) $ 1,065 Customer-based 6 to 15 40,339 (16,092 ) 24,247 Non-compete agreements 4 1,453 (1,401 ) 52 Trade names — 1,630 (1,630 ) — Total amortizing intangible assets $ 46,001 $ (20,637 ) $ 25,364 At June 30, 2017 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 9 to 15 $ 2,579 $ (1,425 ) $ 1,154 Customer-based 1 to 15 38,207 (13,543 ) 24,664 Non-compete agreements 4 to 5 1,453 (1,298 ) 155 Trade names 1 to 3 1,630 (1,307 ) 323 Total amortizing intangible assets $ 43,869 $ (17,573 ) $ 26,296 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Period ending: Remainder of Fiscal 2018 $ 1,932 Fiscal 2019 3,851 Fiscal 2020 3,834 Fiscal 2021 3,822 Fiscal 2022 2,954 Fiscal 2023 2,418 Thereafter 6,553 Total estimated remaining amortization expense at December 31, 2017 $ 25,364 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Availability Under the Senior Credit Facility | Availability under the senior secured revolving credit facility at December 31, 2017 was as follows: December 31, June 30, (In thousands) Senior secured revolving credit facility $ 300,000 $ 300,000 Capacity constraint due to the Senior Leverage Ratio 196,484 169,092 Capacity under the credit facility 103,516 130,908 Borrowings outstanding 50,908 44,682 Letters of credit 27,026 7,825 Availability under the senior secured revolving credit facility $ 25,582 $ 78,401 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is as follows: Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, (In thousands, except per share data) Basic EPS: Net income $ 4,532 $ 5,250 $ 8,356 $ 14,592 Weighted average shares outstanding 26,771 26,553 26,713 26,470 Basic earnings per share $ 0.17 $ 0.20 $ 0.31 $ 0.55 Diluted EPS: Weighted average shares outstanding – basic 26,771 26,553 26,713 26,470 Dilutive stock options 34 55 24 53 Dilutive nonvested deferred shares 273 224 196 319 Diluted weighted average shares 27,078 26,832 26,933 26,842 Diluted earnings per share $ 0.17 $ 0.20 $ 0.31 $ 0.54 |
Antidilutive Securities Excluded from the Calculation of Diluted EPS | The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, (In thousands) Nonvested deferred shares 342 64 442 137 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Results of Operations | Results of Operations (In thousands) Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, Gross revenues Electrical Infrastructure $ 64,852 $ 103,158 $ 144,823 $ 191,183 Oil Gas & Chemical 88,396 56,913 174,257 94,741 Storage Solutions 71,233 128,927 142,805 328,577 Industrial 59,260 25,026 92,531 47,753 Total gross revenues $ 283,741 $ 314,024 $ 554,416 $ 662,254 Less: Inter-segment revenues Oil Gas & Chemical $ 37 $ 1,199 $ 245 $ 6,485 Storage Solutions 792 170 1,349 298 Industrial 1 — 1 1,035 Total inter-segment revenues $ 830 $ 1,369 $ 1,595 $ 7,818 Consolidated revenues Electrical Infrastructure $ 64,852 $ 103,158 $ 144,823 $ 191,183 Oil Gas & Chemical 88,359 55,714 174,012 88,256 Storage Solutions 70,441 128,757 141,456 328,279 Industrial 59,259 25,026 92,530 46,718 Total consolidated revenues $ 282,911 $ 312,655 $ 552,821 $ 654,436 Gross profit Electrical Infrastructure $ 5,541 $ 7,225 $ 13,808 $ 12,475 Oil Gas & Chemical 11,768 2,431 22,806 2,432 Storage Solutions 5,298 17,071 12,838 43,524 Industrial 4,096 1,485 6,142 2,059 Total gross profit $ 26,703 $ 28,212 $ 55,594 $ 60,490 Operating income (loss) Electrical Infrastructure $ 1,079 $ 2,164 $ 4,656 $ 3,221 Oil Gas & Chemical 5,198 (1,950 ) 9,332 (4,855 ) Storage Solutions (2,609 ) 8,242 (2,684 ) 25,015 Industrial 1,506 (219 ) 1,191 (843 ) Total operating income $ 5,174 $ 8,237 $ 12,495 $ 22,538 Total assets by segment were as follows: December 31, June 30, Electrical Infrastructure $ 182,568 $ 183,351 Oil Gas & Chemical 127,278 129,177 Storage Solutions 114,057 166,742 Industrial 53,473 53,754 Unallocated assets 80,490 53,006 Total segment assets $ 557,866 $ 586,030 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Dec. 12, 2016 | Dec. 31, 2017 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 113,845 | $ 113,501 | |
Houston Interests, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash paid for equity interest | $ 46,000 | ||
Acquisition related adjustment for working capital settlement | 6,837 | ||
Accounts Receivable | 10,273 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 746 | ||
Other current assets | 454 | ||
Current assets | 21,804 | ||
Property, plant and equipment | 942 | ||
Goodwill | 35,146 | ||
Other intangible assets | 10,220 | ||
Total assets acquired | 68,112 | ||
Accounts payable | 962 | ||
Billings on uncompleted contracts in excess of costs and estimated earnings | 11,648 | ||
Other accrued expenses | 2,475 | ||
Current liabilities | 15,085 | ||
Other liabilities | 190 | ||
Net assets acquired | 52,837 | ||
Less: cash acquired | 10,331 | ||
Business Combination, Consideration Transferred | $ 42,506 | ||
Warranty reserve working capital provision | 2,600 | ||
Settlement of warranty reserve | $ 1,700 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - Houston Interests, LLC [Member] - USD ($) $ in Thousands | Dec. 12, 2016 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | Dec. 12, 2016 | |
Business Acquisition, Name of Acquired Entity | Houston Interests, LLC | |
Business Combination, Consideration Transferred | $ 42,506 | |
Working capital payment made in period not presented | $ 1,000 |
Acquisitions Pro Forma (Details
Acquisitions Pro Forma (Details) - Houston Interests, LLC [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Revenues | $ 329,523 | $ 690,485 |
Net income attributable to Matrix Service Company | $ 7,884 | $ 18,763 |
Basic earnings per common share | $ 0.30 | $ 0.71 |
Diluted earnings per common share | $ 0.29 | $ 0.70 |
Acquisitions Pro Forma Narrativ
Acquisitions Pro Forma Narrative (Details) - Houston Interests, LLC [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Pro forma acquisition costs | $ 0.4 | $ 0.8 |
Pro forma interest expense | 0.3 | 0.7 |
Pro forma depreciation and amortization expense | 0.2 | 0.3 |
Pro forma income tax expense | $ 1.9 | $ 3.3 |
Uncompleted Contracts - Gross a
Uncompleted Contracts - Gross and Net Amounts of Uncompleted Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Disclosure Customer Contracts Additional Information [Abstract] | ||
Costs incurred and estimated earnings recognized on uncompleted contracts | $ 2,152,981 | $ 1,919,054 |
Billings on uncompleted contracts | 2,155,136 | 1,903,001 |
Total | (2,155) | 16,053 |
Shown on balance sheet as: | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 64,221 | 91,180 |
Billings on uncompleted contracts in excess of costs and estimated earnings | $ 66,376 | $ 75,127 |
Uncompleted Contracts - Additio
Uncompleted Contracts - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 |
Customer Contracts [Line Items] | ||
Contract Receivable Retainage, Due in Next Twelve Months | $ 32.2 | $ 54.3 |
Contract Receivable Retainage, Due after Next Twelve Months | $ 1.9 |
Intangible Assets Including G31
Intangible Assets Including Goodwill - Carrying Value of Goodwill By Segment (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2017 | May 31, 2017 | Dec. 12, 2016 | |
Goodwill [Line Items] | |||
Goodwill | $ 113,501 | ||
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 113,501 | ||
Translation adjustment | 344 | ||
Net balance at September 30, 2017 | 113,845 | ||
Electrical Infrastructure [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 42,152 | ||
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 42,152 | ||
Translation adjustment | 184 | ||
Net balance at September 30, 2017 | 42,336 | ||
Oil Gas & Chemical [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 33,604 | ||
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 33,604 | ||
Translation adjustment | 0 | ||
Net balance at September 30, 2017 | 33,604 | ||
Storage Solutions [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 16,764 | ||
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 16,764 | ||
Translation adjustment | 126 | ||
Net balance at September 30, 2017 | 16,890 | ||
Industrial [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 20,981 | ||
Goodwill [Roll Forward] | |||
Net balance at June 30, 2015 | 20,981 | ||
Translation adjustment | 34 | ||
Net balance at September 30, 2017 | $ 21,015 | ||
Reporting Unit [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 8,000 | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 9.00% | ||
Houston Interests, LLC [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 35,146 |
Intangible Assets Including G32
Intangible Assets Including Goodwill - Carrying Value of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 46,001 | $ 46,001 | $ 43,869 | ||
Accumulated Amortization | (20,637) | (20,637) | (17,573) | ||
Net Carrying Amount | 25,364 | 25,364 | 26,296 | ||
Total intangible assets, net carrying amount | 25,364 | 25,364 | 26,296 | ||
Amortization expense | 1,400 | $ 1,000 | 3,000 | $ 1,800 | |
Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 2,579 | 2,579 | 2,579 | ||
Accumulated Amortization | (1,514) | (1,514) | (1,425) | ||
Net Carrying Amount | 1,065 | $ 1,065 | 1,154 | ||
Intellectual Property [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 9 years | 9 years | |||
Intellectual Property [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 40,339 | $ 40,339 | 38,207 | ||
Accumulated Amortization | (16,092) | (16,092) | (13,543) | ||
Net Carrying Amount | 24,247 | $ 24,247 | 24,664 | ||
Customer Relationships [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 6 years | 1 year | |||
Customer Relationships [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 1,453 | $ 1,453 | 1,453 | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Accumulated Amortization | (1,401) | $ (1,401) | (1,298) | ||
Net Carrying Amount | 52 | 52 | 155 | ||
Noncompete Agreements [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Noncompete Agreements [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 1,630 | $ 1,630 | 1,630 | ||
Finite-Lived Intangible Asset, Useful Life | 0 years | ||||
Accumulated Amortization | (1,630) | $ (1,630) | (1,307) | ||
Net Carrying Amount | $ 0 | $ 0 | $ 323 | ||
Trade Names [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Trade Names [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Intangible Assets Including G33
Intangible Assets Including Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization expense | $ 1,400 | $ 1,000 | $ 3,000 | $ 1,800 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Asset, Residual Value | 2,000 | 2,000 | |||
Finite-Lived Intangible Assets, Gross | 46,001 | 46,001 | $ 43,869 | ||
Backlog received in exchange for settled account receivable | 50,000 | ||||
Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 2,579 | 2,579 | 2,579 | ||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 40,339 | 40,339 | 38,207 | ||
Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 1,453 | $ 1,453 | 1,453 | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 1,630 | $ 1,630 | $ 1,630 | ||
Finite-Lived Intangible Asset, Useful Life | 0 years | ||||
Minimum [Member] | Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 9 years | 9 years | |||
Minimum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 6 years | 1 year | |||
Minimum [Member] | Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Minimum [Member] | Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Maximum [Member] | Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Maximum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Maximum [Member] | Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Maximum [Member] | Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Intangible Assets Including G34
Intangible Assets Including Goodwill Future Expected Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 1,932 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Year | 3,851 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,834 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,822 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,954 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2,418 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 6,553 | |
Finite-Lived Intangible Assets, Net | $ 25,364 | $ 26,296 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Thousands | 6 Months Ended | |
Dec. 31, 2017USD ($)Rate | Jun. 30, 2017USD ($) | |
Credit Agreement Terms | ||
Senior secured revolving credit facility | $ | $ 300,000 | $ 300,000 |
Line Of Credit Facility Expiration Date | Feb. 8, 2022 | |
Senior Leverage Ratio, Maximum | 3 | |
Senior Leverage Ratio, Minimum | 1 | |
Fixed Charge Coverage Ratio, Maximum | 1.25 | |
Fixed Charge Coverage Ratio, Minimum | 1 | |
Amount of Limit on Asset Dispositions | $ | $ 20,000 | |
Additional Margin on alternate base rate loans, Minimum | 0.625% | |
Additional Margin on alternate base rate loans, Maximum | 1.625% | |
Sublimit on Australian Dollar, Canadian Dollar, Euro and Pounds Sterling | $ | $ 75,000 | |
Sub-limit on letters of credit under the credit facility | $ | $ 200,000 | |
Additional Margin on Adjusted LIBO, EURIBO and CDOR loans, Minimum | 1.625% | |
Additional Margin on Adjusted LIBO, EURIBO and CDOR loans, Maximum | 2.625% | |
Additional Margin on Canadian prime rate loans, Minimum | 2.125% | |
Additional Margin on Canadian prime rate loans, Maximum | 3.125% | |
Consolidated EBITDA as defined in the Credit Agreement | $ | $ 25,900 | |
Consolidated funded indebtedness | $ | $ 77,900 | |
Dividend Restriction Under Credit Agreement, Percent | 100.00% | |
Dividend Restriction Under Credit Agreement, Amount | $ | $ 30,000 | |
Minimum [Member] | ||
Credit Agreement Terms | ||
Unused Credit Facility Fee | 0.25% | |
Maximum [Member] | ||
Credit Agreement Terms | ||
Unused Credit Facility Fee | 0.45% | |
Debt Amendment [Member] | ||
Credit Agreement Terms | ||
Senior Leverage Ratio, Maximum | 4 | |
Senior Leverage Ratio, Minimum | 1 | |
Additional Margin on alternate base rate loans, Maximum | 1.875% | |
Additional Margin on Adjusted LIBO, EURIBO and CDOR loans, Maximum | 2.875% | |
Additional Margin on Canadian prime rate loans, Maximum | 3.375% | |
Minimum Consolidated EBITDA Required | $ | $ 15,000 | |
Restricted Payments Under Credit Amendment | $ | $ 5,000 | |
Leverage Ratio Allowed for Restricted Payments, Maximum | 2.50 | |
Leverage Ratio Allowed for Restricted Payments, Minimum | 1 | |
Debt Amendment [Member] | Maximum [Member] | ||
Credit Agreement Terms | ||
Unused Credit Facility Fee | 0.50% |
Debt - Availability Under The S
Debt - Availability Under The Senior Credit Facility (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 30, 2017 |
Debt Disclosure [Abstract] | ||
Senior credit facility | $ 300,000 | $ 300,000 |
Capacity Constraint Due To Senior Leverage Ratio | 196,484 | 169,092 |
Line Of Credit Facility Maximum Borrowing Capacity After Consideration Of Capacity Constraint | 103,516 | 130,908 |
Line of Credit Facility, Amount Outstanding | 50,908 | 44,682 |
Letters of credit subject to the credit facility | 27,026 | 7,825 |
Availability under the senior credit facility | $ 25,582 | $ 78,401 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Prior federal income tax rate | 35.00% | ||||
Blended income tax rate | 28.06% | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 21.00% | ||||
Restriction of deductibility of certain executive compensation | $ 1 | ||||
Effective Income Tax Rate Reconciliation, Percent | (5.80%) | 32.80% | 25.20% | 33.30% | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ 1.2 | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 0.5 | $ 0.7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Jun. 30, 2017 |
Project Unapproved Change Orders and Claims [Line Items] | ||
Unapproved change orders and claims | $ 10.5 | $ 11 |
Earnings per Common Share - Com
Earnings per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share, Basic [Abstract] | ||||
Net income | $ 4,532 | $ 5,250 | $ 8,356 | $ 14,592 |
Weighted average shares outstanding - basic (shares) | 26,771 | 26,553 | 26,713 | 26,470 |
Basic EPS (US$ per share) | $ 0.17 | $ 0.20 | $ 0.31 | $ 0.55 |
Earnings Per Share, Diluted [Abstract] | ||||
Dilutive stock options | 34 | 55 | 24 | 53 |
Dilutive nonvested deferred shares | 273 | 224 | 196 | 319 |
Diluted weighted average shares (shares) | 27,078 | 26,832 | 26,933 | 26,842 |
Diluted EPS (US$ per share) | $ 0.17 | $ 0.20 | $ 0.31 | $ 0.54 |
Earnings per Common Share - Ant
Earnings per Common Share - Antidilutive Securities Excluded from the Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nonvested Deferred Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities | 342 | 64 | 442 | 137 |
Segment Information - Results o
Segment Information - Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||
Gross revenues | $ 283,741 | $ 314,024 | $ 554,416 | $ 662,254 | |
Revenues | 282,911 | 312,655 | 552,821 | 654,436 | |
Gross profit | 26,703 | 28,212 | 55,594 | 60,490 | |
Operating income | 5,174 | 8,237 | 12,495 | 22,538 | |
Segment assets | 557,866 | 557,866 | $ 586,030 | ||
Electrical Infrastructure [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 64,852 | 103,158 | 144,823 | 191,183 | |
Revenues | 64,852 | 103,158 | 144,823 | 191,183 | |
Gross profit | 5,541 | 7,225 | 13,808 | 12,475 | |
Operating income | 1,079 | 2,164 | 4,656 | 3,221 | |
Segment assets | 182,568 | 182,568 | 183,351 | ||
Oil Gas & Chemical [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 88,396 | 56,913 | 174,257 | 94,741 | |
Revenues | 88,359 | 55,714 | 174,012 | 88,256 | |
Gross profit | 11,768 | 2,431 | 22,806 | 2,432 | |
Operating income | 5,198 | (1,950) | 9,332 | (4,855) | |
Segment assets | 127,278 | 127,278 | 129,177 | ||
Storage Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 71,233 | 128,927 | 142,805 | 328,577 | |
Revenues | 70,441 | 128,757 | 141,456 | 328,279 | |
Gross profit | 5,298 | 17,071 | 12,838 | 43,524 | |
Operating income | (2,609) | 8,242 | (2,684) | 25,015 | |
Segment assets | 114,057 | 114,057 | 166,742 | ||
Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 59,260 | 25,026 | 92,531 | 47,753 | |
Revenues | 59,259 | 25,026 | 92,530 | 46,718 | |
Gross profit | 4,096 | 1,485 | 6,142 | 2,059 | |
Operating income | 1,506 | (219) | 1,191 | (843) | |
Segment assets | 53,473 | 53,473 | 53,754 | ||
Other Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment assets | 80,490 | 80,490 | $ 53,006 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 830 | 1,369 | 1,595 | 7,818 | |
Intersegment Eliminations [Member] | Oil Gas & Chemical [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 37 | 1,199 | 245 | 6,485 | |
Intersegment Eliminations [Member] | Storage Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 792 | 170 | 1,349 | 298 | |
Intersegment Eliminations [Member] | Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | $ 1 | $ 0 | $ 1 | $ 1,035 |