Tuesday Morning (TUEMQ) 10-Q 1 Nov 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2018	Oct. 30, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	TUESDAY MORNING CORP/DE
Entity Central Index Key	878,726
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Trading Symbol	TUES
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		46,725,912

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 12,552	$ 9,510
Inventories	291,932	234,365
Prepaid expenses	6,349	6,301
Other current assets	1,976	1,206
Total Current Assets	312,809	251,382
Property and equipment, net	118,934	121,117
Deferred financing costs	592	671
Other assets	3,225	3,086
Total Assets	435,560	376,256
Current liabilities:
Accounts payable	131,950	88,912
Accrued liabilities	47,878	41,765
Income taxes payable	238	66
Total Current Liabilities	180,066	130,743
Borrowings under revolving credit facility	55,600	38,480
Deferred rent	23,254	22,883
Asset retirement obligation — non-current	2,967	3,100
Other liabilities — non-current	757	796
Total Liabilities	262,644	196,002
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share, authorized 10,000,000 shares; none issued or outstanding
Common stock, par value $0.01 per share, authorized 100,000,000 shares; 48,509,573 shares issued and 46,725,912 shares outstanding at September 30, 2018 and 47,648,958 shares issued and 45,865,297 shares outstanding at June 30, 2018	469	469
Additional paid-in capital	238,728	237,957
Retained deficit	(59,469)	(51,360)
Less: 1,783,661 common shares in treasury, at cost, at September 30, 2018 and 1,783,661 common shares in treasury, at cost, at June 30, 2018	(6,812)	(6,812)
Total Stockholders’ Equity	172,916	180,254
Total Liabilities and Stockholders’ Equity	$ 435,560	$ 376,256

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Jun. 30, 2018
Stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	48,509,573	47,648,958
Common stock, shares outstanding	46,725,912	45,865,297
Treasury stock, shares	1,783,661	1,783,661

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net sales	$ 227,313	$ 218,756
Cost of sales	144,895	140,806
Gross profit	82,418	77,950
Selling, general and administrative expenses	90,006	89,944
Operating loss	(7,588)	(11,994)
Other income/(expense):
Interest expense	(587)	(439)
Other income, net	190	358
Other income/(expense), total	(397)	(81)
Loss before income taxes	(7,985)	(12,075)
Income tax provision	124	179
Net loss	$ (8,109)	$ (12,254)
Net loss per common share:
Basic	$ (0.18)	$ (0.28)
Diluted	$ (0.18)	$ (0.28)
Weighted average number of common shares:
Basic	44,490	44,085
Diluted	44,490	44,085
Dividends per common share	$ 0	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (8,109)	$ (12,254)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation and amortization	6,554	6,208
Amortization of financing fees	79	78
Gain on disposal of assets	(9)	(24)
Gain on sale-leaseback		(185)
Share-based compensation	724	775
Construction allowances from landlords	542	2,043
Change in operating assets and liabilities:
Inventories	(57,520)	(61,896)
Prepaid and other current assets	(696)	(1,673)
Accounts payable	33,630	60,260
Accrued liabilities	6,570	6,381
Deferred rent	(172)	2,894
Income taxes payable	174	94
Other liabilities — non-current	(132)	(92)
Net cash provided by/(used in) operating activities	(18,365)	2,609
Cash flows from investing activities:
Capital expenditures	(4,831)	(11,759)
Purchase of intellectual property	(262)	(8)
Proceeds from sale of assets	12	24
Net cash used in investing activities	(5,081)	(11,743)
Cash flows from financing activities:
Proceeds under revolving credit facility	38,300	43,100
Repayments under revolving credit facility	(21,180)	(30,600)
Change in cash overdraft	9,408	1,434
Payments on capital leases	(40)	(39)
Net cash provided by financing activities	26,488	13,895
Net increase in cash and cash equivalents	3,042	4,761
Cash and cash equivalents, beginning of period	9,510	6,263
Cash and cash equivalents, end of period	$ 12,552	$ 11,024

Basis of Presentation

Basis of Presentation	3 Months Ended
	Sep. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of presentation — The unaudited interim consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These financial statements include all adjustments, consisting only of those of a normal recurring nature, which, in the opinion of management, are necessary to present fairly the results of the interim periods presented and should be read in conjunction with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018. The consolidated balance sheet at June 30, 2018 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018. The results of operations for the three month period ended September 30, 2018 are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2019, which we refer to as fiscal 2019. We do not present a consolidated statement of comprehensive income as there are no other comprehensive income items in either the current or prior fiscal periods. The preparation of unaudited interim consolidated financial statements, in conformity with GAAP, requires us to make assumptions and use estimates that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to: inventory valuation under the retail method and estimation of reserves and valuation allowances specifically related to insurance, income taxes and litigation. Actual results could differ materially from these estimates. Our fiscal year ends on June 30 and we operate our business as a single operating segment.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Sep. 30, 2018
Revenue From Contract With Customer [Abstract]
Revenue Recognition	2. Revenue Recognition — Our revenue is earned from sales of merchandise within our stores and is recorded at the point of sale and conveyance of merchandise to customers. Revenue is measured based on the amount of consideration that we expect to receive, reduced by point of sale discounts and estimates for sales returns, and excludes sales tax. Payment for our sales is due at the time of sale. We maintain a reserve for estimated returns, and we use historical customer return behavior to estimate our reserve requirements. Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), adopted in the first quarter of fiscal 2019 as discussed in Note 14 below, required a change in presentation of the sales return reserve on the balance sheet, which we previously presented net of the estimated value of returned merchandise, but is now being presented on a gross basis. In the first quarter of fiscal 2019, we recorded an immaterial adjustment to present the reserve on a gross basis, increasing “Accrued Liabilities” and recording the corresponding returns asset, as evaluated for impairment, in “Other Assets,” in the Consolidated Balance Sheet at September 30, 2018. No impairment of the returns asset was indicated or recorded as of September 30, 2018. Gift cards are sold to customers in our stores and we issue gift cards for merchandise returns in our stores. Revenue from sales of gift cards and issuances of merchandise credits is recognized when the gift card is redeemed by the customer, or if the likelihood of the gift card being redeemed by the customer is remote (gift card breakage). The gift card breakage rate is determined based upon historical redemption patterns. An estimate of the rate of gift card breakage is applied over the period of estimated performance and the breakage amounts are included in net sales in the Consolidated Statement of Operations. Breakage income recognized was $0.1 million in the first quarters of both fiscal 2019 and fiscal 2018. The gift card liability is included in “Accrued Liabilities” in the Consolidated Balance Sheet at September 30, 2018.

Share-Based Incentive Plans

Share-Based Incentive Plans	3 Months Ended
	Sep. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Incentive Plans	3. Share-based incentive plans — Stock Option Awards. On November 16, 2016, our stockholders approved amendments to the 2014 Plan to increase the number of shares of the Company’s common stock available for issuance under the 2014 Plan by 2,500,000 shares and to make additional amendments to the 2014 Plan, including (i) reducing the percentage of shares exempt from the minimum vesting requirements under the 2014 Plan, (ii) adding a clawback policy, (iii) generally eliminating the discretion of the Board of Directors to accelerate the vesting of outstanding and unvested awards upon a change of control and (iv) providing that certain shares surrendered in payment of the exercise price of awards or withheld for tax withholding would count against the shares available under the 2014 Plan. Stock options were awarded with a strike price at a fair market value equal to the closing price of our common stock on the date of the grant under the 2008 Plan and the 2014 Plan. Options granted under the 2008 Plan and the 2014 Plan typically vest over periods of one to four years and expire ten years from the date of grant. Options granted under the 2008 Plan and the 2014 Plan may have certain performance requirements in addition to service terms. If the performance conditions are not satisfied, the options are forfeited. The exercise prices of stock options outstanding on September 30, 2018, range between $1.24 per share and $20.91 per share. The 2008 Plan terminated as to new awards as of September 16, 2014. There were 1.8 million shares available for grant under the 2014 Plan at September 30, 2018. Restricted Stock Awards —The 2008 Plan and the 2014 Plan authorize the grant of restricted stock awards to directors, officers, key employees and certain other key individuals who perform services for us and our subsidiaries. Equity awards may no longer be granted under the 2008 Plan, but restricted stock awards granted under the 2008 Plan are still outstanding. Restricted stock awards are not transferable, but bear certain rights of common stock ownership including voting and dividend rights. The 2014 Plan also authorizes the issuance of restricted stock units which, upon vesting, provide for the issuance of an equivalent number of shares of common stock. Restricted units are not transferable and do not provide voting or dividend rights. Shares and units are valued at the fair market value of our common stock at the date of award. Shares and units may be subject to certain performance requirements. If the performance requirements are not met, the restricted shares or units are forfeited. Under the 2008 Plan and the 2014 Plan, as of September 30, 2018, there were 2,053,793 shares of restricted stock and 230,770 restricted stock units outstanding with award vesting periods, both performance-based and service-based, of one to four years and a weighted average grant date fair value of $3.53 and $3.25 per share, respectively. Performance-Based Restricted Stock Awards and Performance-Based Stock Option Awards. As of September 30, 2018 there were 1,502,762 unvested performance-based restricted stock awards and performance-based stock options outstanding under the 2014 Plan. Share-based Compensation Costs. Share-based compensation costs were recognized as follows (in thousands): Three Months Ended September, 2018 2017 Amortization of share-based compensation during the period $ 771 $ 844 Amounts capitalized in ending inventory (285 ) (360 ) Amounts recognized and charged to cost of sales 238 291 Amounts charged against income for the period before tax $ 724 $ 775

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	4. Commitments and contingencies — we are involved in legal and governmental proceedings as part of the normal course of our business. Reserves have been established when a loss is considered probable and are based on management’s best estimates of our potential liability in these matters. These estimates have been developed in consultation with internal and external counsel and are based on a combination of litigation and settlement strategies. Management believes that such litigation and claims will be resolved without material effect on our financial position or results of operations.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Common Share	5. Earnings per common share — The following table sets forth the computation of basic and diluted income/(loss) per common share (in thousands, except per share amounts): Three Months Ended September 30, 2018 2017 Net loss $ (8,109 ) $ (12,254 ) Less: Income to participating securities — — Net loss attributable to common shares $ (8,109 ) $ (12,254 ) Weighted average number of common shares outstanding basic 44,490 44,085 Effect of dilutive stock equivalents — — Weighted average number of common shares outstanding diluted 44,490 44,085 Net loss per common share basic $ (0.18 ) $ (0.28 ) Net loss per common share diluted $ (0.18 ) $ (0.28 ) For the quarters ended September 30, 2018 and September 30, 2017, all options representing the rights to purchase shares, respectively, were not included in the dilutive income per share calculation, because the assumed exercise of such options would have been anti-dilutive.

Revolving Credit Facility

Revolving Credit Facility	3 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Revolving Credit Facility	6. Revolving credit facility — We have a credit agreement providing for an asset-based, five-year senior secured revolving credit facility in the amount of up to $180.0 million which matures on August 18, 2020 (the “Revolving Credit Facility”). The availability of funds under the Revolving Credit Facility is limited to the lesser of a calculated borrowing base and the lenders’ aggregate commitments under the Revolving Credit Facility. Our indebtedness under the Revolving Credit Facility is secured by a lien on substantially all of our assets. The Revolving Credit Facility contains certain restrictive covenants, which affect, among others, our ability to incur liens or incur additional indebtedness, change the nature of our business, sell assets or merge or consolidate with any other entity, or make investments or acquisitions unless they meet certain requirements. The Revolving Credit Facility requires that we satisfy a fixed charge coverage ratio at any time that our availability is less than the greater of 10% of our calculated borrowing base or $12.5 million. Our Revolving Credit Facility may, in some instances, limit our ability to pay cash dividends and repurchase our common stock. In order for the borrower under the Revolving Credit Facility, our subsidiary, to make a restricted payment to us for the payment of a dividend or a repurchase of shares, we must, among other things, maintain availability of 20% of the lesser of our calculated borrowing base or our lenders’ aggregate commitments under the Revolving Credit Facility on a pro forma basis for a specified period prior to and immediately following the restricted payment. As of September 30, 2018, we were in compliance with all of the Revolving Credit Facility covenants. At September 30, 2018, we had $55.6 million outstanding under the Revolving Credit Facility, $9.5 million of outstanding letters of credit and availability of $72.0 million. Letters of credit under the Revolving Credit Facility are primarily for self-insurance purposes. We incur commitment fees of up to 0.25% on the unused portion of the Revolving Credit Facility, payable quarterly. Any borrowing under the Revolving Credit Facility incurs interest at LIBOR or the prime rate, plus an applicable margin, at our election (except with respect to swing loans, which incur interest solely at the prime rate plus the applicable margin), subject to a floor of one month LIBOR plus an applicable margin in the case of loans based on the prime rate. Interest expense for the first quarter of the current fiscal year from the Revolving Credit Facility of $0.6 million was comprised of interest of $0.4 million, commitment fees of $0.1 million and the amortization of financing fees of $0.1 million. Interest expense for the first quarter of the prior fiscal year from the Revolving Credit Facility of $0.4 million was comprised of interest of $0.2 million, commitment fees of $0.1 million and the amortization of financing fees of $0.1 million. The fair value of the Company’s debt approximated its carrying amount as of September 30, 2018.

Depreciation

Depreciation	3 Months Ended
	Sep. 30, 2018
Property Plant And Equipment [Abstract]
Depreciation	7. Depreciation — Accumulated depreciation of owned property and equipment at September 30, 2018 and June 30, 2018 was $161.7 million and $157.0 million, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	8. Income taxes — The Company or one of its subsidiaries files income tax returns in the U.S. federal, state and local taxing jurisdictions. With few exceptions, the Company and its subsidiaries are no longer subject to state and local income tax examinations for years through fiscal 2013. The Internal Revenue Service has concluded an examination of the Company for years ending on or before June 30, 2010. The effective tax rates for the quarters ended September 30, 2018 and September 30, 2017 were (1.6%) and (1.5%), respectively. A full valuation allowance is currently recorded against substantially all of the Company’s deferred tax assets. A deviation from the customary relationship between income tax expense/(benefit) and pretax income/(loss) results from the effects of the valuation allowance. We continue to assess our accounting for the tax effects of the Tax Cuts and Jobs Act of 2017 (“TCJA”), which was enacted on December 22, 2017. Any final calculations will be completed within the one year measurement period ending December 22, 2018, as required under the rules issued by the SEC. The Company currently expects the effect of the TCJA to have a nominal impact on its annual effective tax rate, given its cumulative loss position and the related valuation allowance. The future impacts of the TCJA may differ due to, among other things, changes in interpretations, assumptions made, the issuance of additional guidance, and actions we may take as a result of the TCJA.

Cash and Cash Equivalents

Cash and Cash Equivalents	3 Months Ended
	Sep. 30, 2018
Cash And Cash Equivalents [Abstract]
Cash and Cash Equivalents	9. Cash and cash equivalents — Cash and cash equivalents include credit card receivables and all highly liquid instruments with original maturities of three months or less. Cash equivalents are carried at cost, which approximates fair value. At September 30, 2018 and June 30, 2018, credit card receivables from third party consumer credit card providers were $10.2 million and $7.9 million, respectively. Such receivables are generally collected within one week of the balance sheet date.

Intellectual Property

Intellectual Property	3 Months Ended
	Sep. 30, 2018
Intangible Assets Net Excluding Goodwill [Abstract]
Intellectual Property	10. Intellectual property — Our intellectual property primarily consists of indefinite lived trademarks. We evaluate annually whether the trademarks continue to have an indefinite life. Trademarks and other intellectual property are reviewed for impairment annually in the fourth quarter, and may be reviewed more frequently if indicators of impairment are present. As of September 30, 2018, the carrying value of the intellectual property, which included indefinite-lived trademarks, was $1.3 million, and no impairment was identified or recorded.

Cease Use Liability

Cease Use Liability	3 Months Ended
	Sep. 30, 2018
Cease Use Liability [Abstract]
Cease Use Liability	11. Cease use liability — Amounts in “Accrued liabilities” in the Consolidated Balance Sheet at September 30, 2018 include the current portions of accruals for the net present value of future minimum lease payments, net of estimated sublease income, attributable to closed stores with remaining lease obligations. The cease use liability at September 30, 2018 was $47 thousand, and was all classified as short-term. The cease use liability at June 30, 2018 was $77 thousand, and was all classified as short-term. Expenses related to store closings are included in “Selling, general and administrative expenses” in the Consolidated Statements of Operations.

Sale-leaseback

Sale-leaseback	3 Months Ended
	Sep. 30, 2018
Leases [Abstract]
Sale-leaseback	12. Sale-leaseback —During the fourth quarter of fiscal 2016, we entered into a sale-leaseback transaction to sell two buildings and land utilized in our Dallas distribution center operations, which we did not consider part of our long-term distribution network, and leased back these facilities through December 2017. We subsequently exercised our option to extend the related lease through March 2018, which was accounted for as an operating lease and has now expired. We had no continuing involvement with the properties sold other than a normal leaseback. The consideration received for the sale, as reduced by closing and transaction costs, was $8.8 million, and the net book value of properties sold was $5.2 million, resulting in a $3.6 million gain. The gain recognized in fiscal 2016 was $2.5 million, which included the portion of the gain in excess of the present value of the minimum lease payments for the leaseback, and was included in “Other income” in our Consolidated Statement of Operations. During fiscal 2017, we recognized $0.7 million of the gain. During the first three months of fiscal 2018, we recognized $0.2 million of the gain. The final $0.2 million gain deferred on the Consolidated Balance Sheet at September 30, 2017 was classified as short-term and was recognized in the second quarter of fiscal 2018.

Capital Lease

Capital Lease	3 Months Ended
	Sep. 30, 2018
Leases [Abstract]
Capital Lease	13. Capital lease — During fiscal 2017, we entered into a 5-year capital lease maturing on January 31, 2022 for equipment and software. At September 30, 2018, the capital lease asset balance was $0.6 million, the current lease liability was $0.2 million and the long-term lease liability was $0.4 million. The capital lease asset is amortized on a straight-line basis. Capital lease amortization was less than $0.1 million in the first quarters of both fiscal 2019 and 2018.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Sep. 30, 2018
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Pronouncements	14. Recent accounting pronouncements — In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118),” which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. As discussed in Note 8, the Company will complete its analysis of the effects of the TJCA within the measurement period in accordance with SAB 118. In August 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which provides guidance on eight specific cash flow issues in regard to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and required adoption on a retrospective basis. The Company adopted ASU 2016-15 in the first quarter of fiscal 2019. The adoption of this standard did not materially impact our consolidated financial statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which is intended to improve financial reporting in connection with leasing transactions. ASU 2016-02 will require entities (“lessees”) that lease assets with lease terms of more than twelve months to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or finance, while the income statement will reflect lease expense for operating leases and amortization/interest expense for finance leases. Accounting by entities that own the assets leased by lessees (“lessors”) will remain largely unchanged from current GAAP. In addition, ASU 2016-02 requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the financial statements. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements,” which provided an additional transition option that allows companies to continue applying the guidance under the current lease standard in the comparative periods presented in the consolidated financial statements. Companies that elect this option would record a cumulative-effect adjustment to the opening balance of retained earnings on the date of adoption. The Company is in the process of determining which transition method to apply. The Company currently expects to adopt this standard in the first quarter of fiscal 2020. While the Company is currently evaluating the provisions of ASU 2016-02 to assess the impact on the Company’s consolidated financial statements and disclosures, the primary effect of adopting the new standard will be to record assets and obligations for current operating leases. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), an updated standard on revenue recognition, and has since modified the standard with additional ASUs. The new guidance provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration, or payment, to which the company expects to be entitled in exchange for those goods or services. The Company adopted this standard in the first quarter of fiscal 2019 using the modified retrospective method, and the adoption did not have a material impact on its consolidated financial statements and disclosures. See Note 2 for further information.

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Recent Accounting Pronouncements	14. Recent accounting pronouncements — In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118),” which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. As discussed in Note 8, the Company will complete its analysis of the effects of the TJCA within the measurement period in accordance with SAB 118. In August 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which provides guidance on eight specific cash flow issues in regard to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and required adoption on a retrospective basis. The Company adopted ASU 2016-15 in the first quarter of fiscal 2019. The adoption of this standard did not materially impact our consolidated financial statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which is intended to improve financial reporting in connection with leasing transactions. ASU 2016-02 will require entities (“lessees”) that lease assets with lease terms of more than twelve months to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or finance, while the income statement will reflect lease expense for operating leases and amortization/interest expense for finance leases. Accounting by entities that own the assets leased by lessees (“lessors”) will remain largely unchanged from current GAAP. In addition, ASU 2016-02 requires disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the financial statements. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements,” which provided an additional transition option that allows companies to continue applying the guidance under the current lease standard in the comparative periods presented in the consolidated financial statements. Companies that elect this option would record a cumulative-effect adjustment to the opening balance of retained earnings on the date of adoption. The Company is in the process of determining which transition method to apply. The Company currently expects to adopt this standard in the first quarter of fiscal 2020. While the Company is currently evaluating the provisions of ASU 2016-02 to assess the impact on the Company’s consolidated financial statements and disclosures, the primary effect of adopting the new standard will be to record assets and obligations for current operating leases. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), an updated standard on revenue recognition, and has since modified the standard with additional ASUs. The new guidance provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration, or payment, to which the company expects to be entitled in exchange for those goods or services. The Company adopted this standard in the first quarter of fiscal 2019 using the modified retrospective method, and the adoption did not have a material impact on its consolidated financial statements and disclosures. See Note 2 for further information.

Share-Based Incentive Plans (Ta

Share-Based Incentive Plans (Tables)	3 Months Ended
	Sep. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Recognized Share-Based Compensation Costs	Share-based compensation costs were recognized as follows (in thousands): Three Months Ended September, 2018 2017 Amortization of share-based compensation during the period $ 771 $ 844 Amounts capitalized in ending inventory (285 ) (360 ) Amounts recognized and charged to cost of sales 238 291 Amounts charged against income for the period before tax $ 724 $ 775

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Computation of Basic and Diluted Income/(Loss) Per Common Share	The following table sets forth the computation of basic and diluted income/(loss) per common share (in thousands, except per share amounts): Three Months Ended September 30, 2018 2017 Net loss $ (8,109 ) $ (12,254 ) Less: Income to participating securities — — Net loss attributable to common shares $ (8,109 ) $ (12,254 ) Weighted average number of common shares outstanding basic 44,490 44,085 Effect of dilutive stock equivalents — — Weighted average number of common shares outstanding diluted 44,490 44,085 Net loss per common share basic $ (0.18 ) $ (0.28 ) Net loss per common share diluted $ (0.18 ) $ (0.28 )

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - Accounting Standards Update 2014-09 - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Disaggregation Of Revenue [Line Items]
Impairment charges	$ 0
Breakage
Disaggregation Of Revenue [Line Items]
Breakage income recognized	$ 100,000	$ 100,000

Share-Based Incentive Plans - N

Share-Based Incentive Plans - Narrative (Details) - $ / shares	3 Months Ended
	Sep. 30, 2018	Nov. 16, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price of stock options outstanding, low end of range	$ 1.24
Exercise price of stock option outstanding, high end of range	$ 20.91
2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock shares available for issuance		2,500,000
2014 Plan | Stock Option Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period (in years)	10 years
Shares available for grant	1,800,000
2014 Plan | Stock Option Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
2014 Plan | Stock Option Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years
2014 Plan | Performance-Based Restricted Stock Awards and Stock Option Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards outstanding	1,502,762
2008 Plan | Stock Option Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period (in years)	10 years
2008 Plan | Stock Option Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
2008 Plan | Stock Option Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years
2008 and 2014 Plan | Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards outstanding	2,053,793
Weighted average grant date fair value of awards granted (in dollars per share)	$ 3.53
2008 and 2014 Plan | Restricted Stock Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
2008 and 2014 Plan | Restricted Stock Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years
2008 and 2014 Plan | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards outstanding	230,770
Weighted average grant date fair value of awards granted (in dollars per share)	$ 3.25
2008 and 2014 Plan | Restricted Stock Units | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
2008 and 2014 Plan | Restricted Stock Units | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years

Share-Based Incentive Plans - S

Share-Based Incentive Plans - Schedule of Recognized Share-Based Compensation Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based incentive plans
Share-based compensation	$ 724	$ 775
Amounts capitalized in ending inventory	(285)	(360)
Share Based Compensation Amortization
Share-based incentive plans
Share-based compensation	771	844
Cost of Sales
Share-based incentive plans
Share-based compensation	$ 238	$ 291

Earnings Per Common Share - Com

Earnings Per Common Share - Computation of Basic and Diluted Income/(Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net loss	$ (8,109)	$ (12,254)
Net loss attributable to common shares	$ (8,109)	$ (12,254)
Weighted average number of common shares outstanding basic	44,490	44,085
Weighted average number of common shares outstanding diluted	44,490	44,085
Net loss per common share basic	$ (0.18)	$ (0.28)
Net loss per common share diluted	$ (0.18)	$ (0.28)

Revolving Credit Facility - Nar

Revolving Credit Facility - Narrative (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Line Of Credit Facility [Line Items]
Revolving credit facility outstanding amount	$ 55,600,000		$ 38,480,000
Amortization of financing fees	$ 79,000	$ 78,000
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Term of credit facility (in years)	5 years
Maximum borrowing capacity	$ 180,000,000
Revolving credit facility maturity date	Aug. 18, 2020
Availability to be maintained under credit facility	$ 12,500,000
Availability to be maintained under credit facility before restriction on investments, percentage	20.00%
Covenant terms	The Revolving Credit Facility requires that we satisfy a fixed charge coverage ratio at any time that our availability is less than the greater of 10% of our calculated borrowing base or $12.5 million.
Revolving credit facility outstanding amount	$ 55,600,000
Outstanding letters of credit	9,500,000
Availability under the credit facility	$ 72,000,000
Frequency of commitment fee payment	Payable quarterly
Revolving credit facility, description of variable rate basis	One month LIBOR
Interest expense	$ 600,000	400,000
Commitment fees	100,000	100,000
Interest expense, debt	400,000	200,000
Amortization of financing fees	$ 100,000	$ 100,000
Revolving Credit Facility | Minimum
Line Of Credit Facility [Line Items]
Availability to be maintained under credit facility, percentage	10.00%
Revolving Credit Facility | Maximum
Line Of Credit Facility [Line Items]
Commitment fees (as a percent)	0.25%

Depreciation - Narrative (Detai

Depreciation - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2018	Jun. 30, 2018
Property Plant And Equipment [Abstract]
Accumulated depreciation	$ 161.7	$ 157

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - Subsidiary	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Number of subsidiaries filing income tax returns in the U.S. federal jurisdiction, and various state jurisdictions	1
Effective tax rate	(1.60%)	(1.50%)

Cash and Cash Equivalents - Nar

Cash and Cash Equivalents - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2018	Jun. 30, 2018
Cash And Cash Equivalents [Abstract]
Credit card receivables from third party consumer credit card providers	$ 10.2	$ 7.9

Intellectual Property - Narrati

Intellectual Property - Narrative (Details) - Intellectual Property	3 Months Ended
	Sep. 30, 2018USD ($)
Indefinite Lived Intangible Assets By Major Class [Line Items]
Carrying value of intellectual property	$ 1,300,000
Impairment of intellectual property	$ 0

Cease Use Liability - Narrative

Cease Use Liability - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Cease Use Liability [Abstract]
Short-term cease use liabilities	$ 47	$ 77

Sale-leaseback - Narrative (Det

Sale-leaseback - Narrative (Details)	3 Months Ended			12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)Building
Sale Leaseback Transaction [Line Items]
Sale-leaseback transaction, gain recognized in other income			$ 185,000
Dallas | Buildings and Land
Sale Leaseback Transaction [Line Items]
Sale-leaseback transaction, asset description	transaction to sell two buildings and land
Transaction to sell, number of buildings | Building					2
Sale-leaseback transaction, extended period	2018-03
Consideration received reduced by closing and transaction costs					$ 8,800,000
Sale-leaseback transaction, net book value					5,200,000
Gain on sale-leaseback transaction					3,600,000
Sale-leaseback transaction, gain recognized in other income		$ 200,000	200,000	$ 700,000	$ 2,500,000
Sale-leaseback transaction, remaining deferred gain			$ 200,000

Capital Lease - Narrative (Deta

Capital Lease - Narrative (Details) - Equipment and Software - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2017
Capital Leased Assets [Line Items]
Term of capital lease			5 years
Capital lease maturity date			Jan. 31, 2022
Capital lease asset	$ 600,000
Current capital lease liability	200,000
Long-term capital lease liability	400,000
Maximum
Capital Leased Assets [Line Items]
Capital lease amortization expense	$ 100,000	$ 100,000