Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Jun. 30, 2014 | |
Document Information [Line Items] | ' |
Entity Registrant Name | 'SIFCO INDUSTRIES INC |
Entity Central Index Key | '0000090168 |
Current Fiscal Year End Date | '--09-30 |
Entity Filer Category | 'Smaller Reporting Company |
Document Type | '10-Q |
Document Period End Date | 30-Jun-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 5,413,129 |
Trading Symbol | 'SIF |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net sales | $30,999 | $28,672 | $86,696 | $84,121 |
Cost of goods sold | 23,842 | 20,959 | 67,665 | 64,637 |
Gross profit | 7,157 | 7,713 | 19,031 | 19,484 |
Selling, general and administrative expenses | 4,062 | 3,064 | 10,965 | 9,562 |
Amortization of intangible assets | 545 | 492 | 1,635 | 1,544 |
Loss (gain) on disposal of operating assets | -1 | 33 | -3 | -89 |
Operating income | 2,551 | 4,124 | 6,434 | 8,467 |
Interest income | -4 | -4 | -14 | -18 |
Interest expense | 45 | 76 | 181 | 261 |
Foreign currency exchange (gain) loss, net | -2 | 7 | 4 | 7 |
Other income, net | -108 | -108 | -325 | -294 |
Income from continuing operations before income tax provision | 2,620 | 4,153 | 6,588 | 8,511 |
Income tax provision | 637 | 1,288 | 1,940 | 2,701 |
Income from continuing operations | 1,983 | 2,865 | 4,648 | 5,810 |
Income (loss) from discontinued operations, net of tax | -76 | -387 | -368 | 1,518 |
Net income | $1,907 | $2,478 | $4,280 | $7,328 |
Income per share from continuing operations | ' | ' | ' | ' |
Basic (in dollars per share) | $0.37 | $0.53 | $0.86 | $1.08 |
Diluted (in dollars per share) | $0.37 | $0.53 | $0.86 | $1.08 |
Income (loss) per share from discontinued operations, net of tax | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.01) | ($0.07) | ($0.07) | $0.28 |
Diluted (in dollars per share) | ($0.01) | ($0.07) | ($0.07) | $0.28 |
Net income per share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.36 | $0.46 | $0.79 | $1.36 |
Diluted (in dollars per share) | $0.36 | $0.46 | $0.79 | $1.36 |
Weighted-average common shares outstanding (basic) (in shares) | 5,413 | 5,374 | 5,399 | 5,359 |
Weighted-average common shares outstanding (diluted) (in shares) | 5,431 | 5,402 | 5,420 | 5,399 |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income | $1,907 | $2,478 | $4,280 | $7,328 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | 0 | 0 | 0 | -285 |
Retirement plan liability adjustment | 37 | 337 | 338 | 895 |
Interest rate swap agreement adjustment | 9 | 13 | 27 | 43 |
Comprehensive income | $1,953 | $2,828 | $4,645 | $7,981 |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $4,590 | $4,508 |
Receivables, net of allowance for doubtful accounts of $270 and $481, respectively | 20,865 | 24,811 |
Inventories, net | 22,462 | 18,340 |
Deferred income taxes | 987 | 987 |
Prepaid expenses and other current assets | 2,525 | 1,767 |
Assets held for sale | 264 | 278 |
Current assets of business from discontinued operations | 145 | 2,059 |
Total current assets | 51,838 | 52,750 |
Property, plant and equipment, net | 34,478 | 29,632 |
Intangible assets, net | 12,016 | 13,651 |
Goodwill | 7,658 | 7,620 |
Other assets | 1,293 | 1,240 |
Noncurrent assets of business from discontinued operations | 0 | 872 |
Total assets | 107,283 | 105,765 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 2,000 | 4,392 |
Accounts payable | 12,488 | 6,773 |
Accrued liabilities | 4,970 | 7,670 |
Current liabilities of business from discontinued operations | 116 | 1,086 |
Total current liabilities | 19,574 | 19,921 |
Long-term debt, net of current maturities | 4,504 | 7,381 |
Deferred income taxes | 1,774 | 1,733 |
Other long-term liabilities | 3,979 | 4,717 |
Shareholders’ equity: | ' | ' |
Serial preferred shares, no par value, authorized 1,000 shares | 0 | 0 |
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares – 5,448 at June 30, 2014 and 5,407 at September 30, 2013 | 5,448 | 5,407 |
Additional paid-in capital | 8,352 | 7,599 |
Retained earnings | 73,029 | 68,750 |
Accumulated other comprehensive loss | -9,377 | -9,743 |
Total shareholders’ equity | 77,452 | 72,013 |
Total liabilities and shareholders’ equity | $107,283 | $105,765 |
Consolidated_Condensed_Balance1
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Receivables, allowance for doubtful accounts | $297 | $481 |
Serial preferred shares, no par value (in dollars per share) | $0 | $0 |
Serial preferred shares, number of shares authorized | 1,000,000 | 1,000,000 |
Common shares, par value (in dollars per share) | $1 | $1 |
Common shares, number of shares authorized | 10,000,000 | 10,000,000 |
Common shares, number of shares issued | 5,448,000 | 5,407,000 |
Common shares, number of shares outstanding | 5,448,000 | 5,407,000 |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $4,280 | $7,328 |
Loss (income) from discontinued operations, net of tax | 368 | -1,518 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 5,104 | 4,205 |
Gain on disposal of operating assets | -3 | -89 |
LIFO income | -246 | -787 |
Share transactions under company stock plan | 790 | 179 |
Other long-term liabilities | -370 | 192 |
Deferred income taxes | 41 | -879 |
Changes in operating assets and liabilities: | ' | ' |
Receivables | 3,946 | -1,842 |
Inventories | -3,875 | -2,280 |
Accounts payable | 5,678 | -1,928 |
Other accrued liabilities | -713 | -898 |
Accrued income and other taxes | -905 | 1,128 |
Other operating activities | -814 | -630 |
Net cash provided by operating activities of continuing operations | 13,281 | 2,181 |
Net cash provided by operating activities of discontinued operations | 509 | 564 |
Cash flows from investing activities: | ' | ' |
Proceeds from disposal of operating assets | 0 | 164 |
Capital expenditures | -8,312 | -2,540 |
Net cash used for investing activities of continuing operations | -8,312 | -2,376 |
Net cash provided by investing activities of discontinued operations | 950 | 8,345 |
Cash flows from financing activities: | ' | ' |
Payments on long term debt | -3,892 | -1,500 |
Proceeds from revolving credit agreement | 28,464 | 37,563 |
Repayments of revolving credit agreement | -29,841 | -46,271 |
Proceeds from exercise of stock options | 4 | 0 |
Cash dividends paid | -1,081 | -1,073 |
Net cash used for financing activities of continuing operations | -6,346 | -11,281 |
Increase (decrease) in cash and cash equivalents | 82 | -2,567 |
Cash and cash equivalents at the beginning of the period | 4,508 | 7,176 |
Cash and cash equivalents at the end of the period | 4,590 | 4,609 |
Supplemental disclosure of cash flow information of continuing operations: | ' | ' |
Cash paid for interest | -155 | -239 |
Cash paid for income taxes, net | ($2,384) | ($3,626) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||
A. Principles of Consolidation | ||||||||||||||||
The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated. | ||||||||||||||||
The U.S. dollar is the functional currency for all of the Company’s U.S. operations and its Irish subsidiary. For these operations, all gains and losses from completed currency transactions are included in income currently. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements. | ||||||||||||||||
These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2013 Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year. | ||||||||||||||||
B. Net Income per Share | ||||||||||||||||
The Company’s net income per basic share has been computed based on the weighted-average number of common shares outstanding. Net income per diluted share reflects the effect of the Company’s outstanding stock options, restricted shares and performance shares under the treasury stock method. The dilutive effect of the Company’s stock options, restricted shares and performance shares were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income from continuing operations | $ | 1,983 | $ | 2,865 | $ | 4,648 | $ | 5,810 | ||||||||
Income (loss) from discontinued operations, net of tax | (76 | ) | (387 | ) | (368 | ) | 1,518 | |||||||||
Net income | $ | 1,907 | $ | 2,478 | $ | 4,280 | $ | 7,328 | ||||||||
Weighted-average common shares outstanding (basic) | 5,413 | 5,374 | 5,399 | 5,359 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options | — | 1 | — | 1 | ||||||||||||
Restricted shares | 18 | 14 | 16 | 10 | ||||||||||||
Performance shares | — | 13 | 5 | 29 | ||||||||||||
Weighted-average common shares outstanding (diluted) | 5,431 | 5,402 | 5,420 | 5,399 | ||||||||||||
Net income per share – basic | ||||||||||||||||
Continuing operations | $ | 0.37 | $ | 0.53 | $ | 0.86 | $ | 1.08 | ||||||||
Discontinued operations | (0.01 | ) | (0.07 | ) | (0.07 | ) | 0.28 | |||||||||
Net income | $ | 0.36 | $ | 0.46 | $ | 0.79 | $ | 1.36 | ||||||||
Net income per share – diluted: | ||||||||||||||||
Continuing operations | $ | 0.37 | $ | 0.53 | $ | 0.86 | $ | 1.08 | ||||||||
Discontinued operations | (0.01 | ) | (0.07 | ) | (0.07 | ) | 0.28 | |||||||||
Net income | $ | 0.36 | $ | 0.46 | $ | 0.79 | $ | 1.36 | ||||||||
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share | 17 | 18 | 20 | 58 | ||||||||||||
C. Derivative Financial Instruments | ||||||||||||||||
The Company uses an interest rate swap agreement to reduce risk related to variable-rate debt, which is subject to changes in market rates of interest. The interest rate swap is designated as a cash flow hedge. At June 30, 2014 and at September 30, 2013, the Company held one interest rate swap agreement with a notional amount of $4,500 and $6,000, respectively. Cash flows related to the interest rate swap agreement are included in interest expense. The Company’s interest rate swap agreement and its variable-rate term debt are based upon LIBOR. During the first nine months of fiscal 2014, the Company’s interest rate swap agreement qualified as a fully effective cash flow hedge against the Company’s variable-rate term note interest risk. | ||||||||||||||||
D. Impact on Newly Issued Accounting Standards Not Yet Adopted | ||||||||||||||||
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2014-08, "Presentation of Financial Statements and Property, Plant, and Equipment — Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,'' which revises what qualifies as a discontinued operation, changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This ASU will be effective for the Company for applicable transactions occurring after October 1, 2015. The Company will prospectively apply the guidance to applicable transactions. | ||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which clarifies existing accounting literature relating to how and when a company recognizes revenue. Under ASU 2014-09, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. ASU 2014-09 will be effective for the Company October 1, 2017. The Company is in the process of determining what impact, if any, the adoption of this ASU will have on its financial position, results of operations and cash flows. | ||||||||||||||||
In June 2014, the FASB issued ASU 2014-12, "Compensation – Stock Compensation," which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee is able to cease rendering service and still be eligible to vest in the award if the performance target is achieved. The ASU will be effective for the Company October 1, 2016. The Company will prospectively apply the guidance to applicable transactions. | ||||||||||||||||
E. Reclassifications | ||||||||||||||||
Certain prior period amounts were reclassified to conform to the current consolidated financial statement presentation. |
Inventories
Inventories | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist of: | ||||||||
30-Jun-14 | 30-Sep-13 | |||||||
Raw materials and supplies | $ | 6,176 | $ | 5,906 | ||||
Work-in-process | 8,299 | 7,049 | ||||||
Finished goods | 7,987 | 5,385 | ||||||
Total inventories | $ | 22,462 | $ | 18,340 | ||||
Inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (“LIFO”) method for 42.1% and 35.8% of the Company’s inventories at June 30, 2014 and September 30, 2013, respectively. The first-in, first-out (“FIFO”) method is used for the remainder of the inventories. If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $7,731 and $7,977 higher than reported at June 30, 2014 and September 30, 2013, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||
Goodwill and Intangible Assets | ||||||||||||||
The Company’s intangible assets by major asset class subject to amortization consist of: | ||||||||||||||
30-Jun-14 | Estimated | Original | Accumulated | Net Book | ||||||||||
Useful Life | Cost | Amortization | Value | |||||||||||
Intangible assets: | ||||||||||||||
Trade name | 10 years | $ | 2,000 | $ | 596 | $ | 1,404 | |||||||
Non-compete agreement | 5 years | 1,600 | 908 | 692 | ||||||||||
Below market lease | 5 years | 900 | 640 | 260 | ||||||||||
Customer relationships | 10 years | 13,800 | 4,146 | 9,654 | ||||||||||
Order backlog | 1 year | 2,200 | 2,194 | 6 | ||||||||||
Transition services | < 1 year | 23 | 23 | — | ||||||||||
Total intangible assets | $ | 20,523 | $ | 8,507 | $ | 12,016 | ||||||||
September 30, 2013 | Estimated | Original | Accumulated | Net Book | ||||||||||
Useful Life | Cost | Amortization | Value | |||||||||||
Intangible assets: | ||||||||||||||
Trade name | 10 years | $ | 2,000 | $ | 446 | $ | 1,554 | |||||||
Non-compete agreement | 5 years | 1,600 | 668 | 932 | ||||||||||
Below market lease | 5 years | 900 | 505 | 395 | ||||||||||
Customer relationships | 10 years | 13,800 | 3,111 | 10,689 | ||||||||||
Order backlog | 1 year | 2,200 | 2,119 | 81 | ||||||||||
Transition services | < 1 year | 23 | 23 | — | ||||||||||
Total intangible assets | $ | 20,523 | $ | 6,872 | $ | 13,651 | ||||||||
The amortization expense on identifiable intangible assets for the nine months ended June 30, 2014 and 2013 was $1,635 and $1,544, and $545 and $492 during the third quarter of fiscal 2014 and 2013, respectively. Amortization expense associated with the identified intangible assets is expected to be as follows: | ||||||||||||||
Amortization | ||||||||||||||
Expense | ||||||||||||||
Fiscal year 2014 | $ | 2,161 | ||||||||||||
Fiscal year 2015 | 2,080 | |||||||||||||
Fiscal year 2016 | 1,854 | |||||||||||||
Fiscal year 2017 | 1,617 | |||||||||||||
Fiscal year 2018 | 1,596 | |||||||||||||
The Company’s goodwill is not being amortized and is subject to annual impairment tests. All of the goodwill is expected to be deductible for tax purposes. Changes in the net carrying amount of goodwill were as follows: | ||||||||||||||
Balance at September 30, 2013 | $ | 7,620 | ||||||||||||
Goodwill purchase price adjustment | 38 | |||||||||||||
Balance at June 30, 2014 | $ | 7,658 | ||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Accumulated Other Comprehensive Loss | ' | |||||||
Accumulated Other Comprehensive Loss | ||||||||
The components of accumulated other comprehensive loss are as follows: | ||||||||
30-Jun-14 | September 30, | |||||||
2013 | ||||||||
Foreign currency translation adjustment, net of tax | $ | (5,851 | ) | $ | (5,851 | ) | ||
Retirement plan liability adjustment, net of tax | (3,527 | ) | (3,866 | ) | ||||
Interest rate swap agreement adjustment, net of tax | 1 | (26 | ) | |||||
Total accumulated other comprehensive loss | $ | (9,377 | ) | $ | (9,743 | ) |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ||||||||
Long-term debt consists of: | ||||||||
June 30, | 30-Sep-13 | |||||||
2014 | ||||||||
Revolving credit agreement | $ | 2,004 | $ | 3,381 | ||||
Term loan | 4,500 | 6,000 | ||||||
Promissory Note | — | 2,392 | ||||||
6,504 | 11,773 | |||||||
Less – current maturities | 2,000 | 4,392 | ||||||
Total long-term debt | $ | 4,504 | $ | 7,381 | ||||
In October 2011, the Company entered into an amendment to its existing credit agreement (the “Credit Agreement Amendment”) with its bank increasing the maximum borrowing amount from $30,000 to $40,000, of which $10,000 is a five (5) year term loan and $30,000 is a five (5) year revolving loan, secured by substantially all of the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its Irish subsidiary. The term loan is repayable in quarterly installments of $500 starting December 1, 2011. | ||||||||
The term loan has a LIBOR-based variable interest rate that was 2.2% at June 30, 2014. This rate becomes an effective fixed rate of 2.9% after giving effect to an interest rate swap agreement. | ||||||||
Borrowing under the revolving loan bears interest at a rate equal to LIBOR plus 0.75% to 1.75%, which percentage fluctuates based on the Company’s leverage ratio of outstanding indebtedness to EBITDA. At June 30, 2014, the interest rate was 1.0%. The loans are subject to certain customary financial covenants including, without limitation, covenants that require the Company to not exceed a maximum leverage ratio and to maintain a minimum fixed charge coverage ratio. There is also a commitment fee ranging from 0.10% to 0.25% to be incurred on the unused balance. The Company was in compliance with all applicable loan covenants as of June 30, 2014. | ||||||||
In connection with the purchase of the forging business and substantially all related operating assets from GEL Industries, Inc. (DBA Quality Aluminum Forge) (“QAF”), the Company issued a non-interest bearing promissory note to the seller, which note was paid by the Company in November 2013. The imputed interest rate used to discount the note was 2.0% per annum. |
Income_Taxes
Income Taxes | 9 Months Ended | |||
Jun. 30, 2014 | ||||
Income Tax Disclosure [Abstract] | ' | |||
Income Taxes | ' | |||
Income Taxes | ||||
For each interim reporting period, the Company makes an estimate of the effective tax rate it expects to be applicable for the full fiscal year for its continuing operations. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company’s effective tax rate through the first nine months of fiscal 2014 was 29%, compared to 32% for the same period of fiscal 2013, and differs from the U.S. federal statutory rate due primarily to (i) application of foreign tax credits and other U.S. credits, (ii) the impact of U.S. state and local income taxes, (iii) a domestic production activities deduction, and (iv) the decrease in the reserve for uncertain tax positions. | ||||
The effective rate for the first nine months of fiscal 2014 reflects a $158 foreign tax credit related to prior years and a $110 decrease in the reserve for uncertain tax positions, compared to the comparable period in fiscal 2013. | ||||
In September 2013, the Internal Revenue Service issued final regulations governing the income tax treatment of acquisitions, dispositions, and repairs of tangible property. Taxpayers are required to follow the new regulations in taxable years beginning on or after January 1, 2014. Management is currently assessing the impact of the regulations and does not expect they will have a material impact on the Company’s consolidated financial statements. | ||||
The Company is subject to income taxes in the U.S. federal jurisdiction, and various states, local and non-U.S. jurisdictions. The Company believes it has appropriate support for its federal income tax returns. The Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for fiscal years prior to 2008 or non-U.S. income tax examinations by tax authorities for fiscal years prior to 2006. | ||||
At June 30, 2014 and September 30, 2013, the Company recorded liabilities of $67 and $177, respectively, for uncertain tax positions and any related interest and penalties. The Company classifies any interest and penalties related to uncertain tax positions in income tax expense. A summary of activity related to the Company’s uncertain tax positions is as follows: | ||||
Balance at September 30, 2013 | $ | 177 | ||
Decrease due to tax positions effectively settled | (110 | ) | ||
Balance at June 30, 2014 | $ | 67 | ||
Retirement_Benefit_Plans
Retirement Benefit Plans | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Retirement Benefit Plans | ' | |||||||||||||||
Retirement Benefit Plans | ||||||||||||||||
The Company and certain of its subsidiaries sponsor defined benefit pension plans covering most of its employees. The components of net periodic benefit cost of the Company’s defined benefit plans are as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 31 | $ | 72 | $ | 94 | $ | 216 | ||||||||
Interest cost | 247 | 212 | 740 | 638 | ||||||||||||
Expected return on plan assets | (393 | ) | (371 | ) | (1,180 | ) | (1,114 | ) | ||||||||
Amortization of prior service cost | — | 13 | — | 39 | ||||||||||||
Amortization of net loss | 112 | 219 | 337 | 656 | ||||||||||||
Settlement cost | — | 191 | — | 382 | ||||||||||||
Net periodic (benefit) cost | $ | (3 | ) | $ | 336 | $ | (9 | ) | $ | 817 | ||||||
During the nine months ended June 30, 2014 and 2013, the Company has made contributions in the amount of $382 and $670, respectively to its defined benefit pension plans. The Company anticipates making $127 of additional contributions to fund its defined benefit pension plans during the balance of fiscal 2014. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
In previous periods, the Company awarded stock options under its shareholder approved 1995 Stock Option Plan (“1995 Plan”) and 1998 Long-Term Incentive Plan (“1998 Plan”). No further options may be awarded under either the 1995 Plan or the 1998 Plan. The option exercise price is not less than fair market value on date of grant and options are exercisable no later than ten years from date of grant. All options awarded under both plans are fully vested as of June 30, 2014. | |
At June 30, 2014 and 2013, there was no unrecognized compensation cost related to the stock options granted under the Company’s stock option plans. There was no compensation expense related to stock options recognized in the nine months ended June 30, 2014 and 2013. As of June 30, 2014, all options have been exercised. | |
The Company has awarded performance and restricted shares under its shareholder approved 2007 Long-Term Incentive Plan (“2007 Plan”). The aggregate number of shares that may be awarded under the 2007 Plan is 600 less any shares previously awarded and subject to an adjustment for the forfeiture of any unissued shares. In addition, shares that may be awarded are subject to individual recipient award limitations. The shares awarded under the 2007 Plan may be made in multiple forms including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such awards are exercisable no later than ten years from the date of the grant. | |
The performance shares that have been awarded under the 2007 Plan generally provide for the issuance of the Company’s common shares upon the Company achieving certain defined financial performance objectives during a period up to three years following the making of such award. The ultimate number of common shares of the Company that may be earned pursuant to an award ranges from a minimum of no shares to a maximum of 150% of the initial target number of performance shares awarded, depending on the level of the Company’s achievement of its financial performance objectives. | |
With respect to such performance shares, compensation expense is being accrued. During each future reporting period, such expense may be subject to adjustment based upon the Company's financial performance, which impacts the number of common shares that it expects to issue upon the completion of the performance period. The performance shares were valued at the closing market price of the Company’s common shares on the date of grant. The vesting of such shares is determined at the end of the performance period. | |
During the first nine months of fiscal 2014, the Company granted 68 performance share awards under the 2007 Plan with a grant date fair value of $26.50 per share. The shares vest over a three year performance period. The Company terminated one of its performance share awards under the 2007 Plan that consisted of 45 performance share awards with a fair value of $16.03 per share. The Company granted a replacement award for 43 performance shares under the 2007 Plan with a grant date fair value of $26.50 per share. The shares vest over a two year performance period. | |
The Company has awarded restricted shares to its directors, officers, and other employees of the Company. The restricted shares were valued at the closing market price of the Company’s common shares on the date of grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one (1) year. | |
During the first nine months of fiscal 2014, the Company granted 18 restricted shares under the 2007 Plan with a grant date fair value of $22.02 per share. The Company granted an additional 10 restricted shares under the 2007 Plan with a grant date fair value of $31.12 per share. The shares vest over a one year service period. | |
If all outstanding share awards are ultimately earned and issued at the target number of shares, there are approximately 290 shares that remain available for award at June 30, 2014. If any of the outstanding share awards are ultimately earned and issued at greater than the target number of shares, up to a maximum of 150% of such target, then a fewer number of shares would be available for award. | |
Stock-based compensation under the 2007 Plan was $1,051 and $515 during the first nine months of fiscal 2014 and 2013 and $498 and $148 during the third quarter of fiscal 2014 and 2013, respectively. As of June 30, 2014, there was $2,514 of total unrecognized compensation cost related to the performance and restricted shares awarded under the 2007 Plan. The Company expects to recognize this cost over the next 2.3 years. |
Business_Acquisition
Business Acquisition | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Business Acquisition | ' | |||||||
Business Acquisition | ||||||||
On July 23, 2013, SIFCO Industries, Inc.'s subsidiary completed the purchase of the forging business and substantially all related operating assets from MW General, Inc. (DBA General Aluminium Forgings). The forging business is operated in General Aluminum Forgings, LLC's ("GAF") Colorado Springs, Colorado facility, which is leased. The purchase price for the business and related assets of GAF was approximately $4,400, after certain adjustments related principally to the final working capital level. | ||||||||
The GAF purchase transaction was accounted for under the purchase method of accounting. The Company has completed the purchase accounting related to the GAF acquisition. | ||||||||
The results of operations of GAF are included in the Company’s unaudited consolidated condensed statements of operations for the three months ended and nine months ended June 30, 2014. The following unaudited pro forma information presents a summary of the results of operations for the Company including GAF as if the acquisition had occurred on October 1, 2012: | ||||||||
Three Months Ended June 30, 2013 | Nine Months Ended June 30, 2013 | |||||||
Net sales | $ | 30,123 | $ | 88,343 | ||||
Net income | $ | 2,457 | $ | 7,270 | ||||
Net income per share (basic) | $ | 0.46 | $ | 1.36 | ||||
Net income per share (diluted) | $ | 0.45 | $ | 1.35 | ||||
Discontinued_Operations_Assets
Discontinued Operations, Assets Held for Sale, and Business Divestiture | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Discontinued Operations, Assets Held for Sale, and Business Divestiture | ' | |||||||||||||||
Discontinued Operations, Assets Held for Sale, and Business Divestiture | ||||||||||||||||
As part of the Company’s strategy to focus on its core competencies in the Aerospace and Energy ("A&E") market, the Company decided to exit the Turbine Component Service and Repair ("Repair Group") business in the fourth quarter of fiscal 2013. | ||||||||||||||||
The table below presents the components of the balance sheet accounts classified as assets and liabilities held for sale at June 30, 2014 and September 30, 2013, respectively. | ||||||||||||||||
30-Jun-14 | 30-Sep-13 | |||||||||||||||
Assets: | ||||||||||||||||
Receivables, net | $ | 103 | $ | 1,067 | ||||||||||||
Inventories, net | — | 660 | ||||||||||||||
Deferred income taxes | 42 | 317 | ||||||||||||||
Prepaid expenses and other current assets | — | 15 | ||||||||||||||
Total current assets of business from discontinued operations | $ | 145 | $ | 2,059 | ||||||||||||
Current assets held for sale | $ | 264 | $ | 278 | ||||||||||||
Property, plant and equipment, net | $ | — | $ | 840 | ||||||||||||
Other assets | — | 32 | ||||||||||||||
Total noncurrent assets of business from discontinued operations | $ | — | $ | 872 | ||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | 116 | 278 | ||||||||||||||
Accrued liabilities | — | 808 | ||||||||||||||
Total current liabilities of business from discontinued operations | $ | 116 | $ | 1,086 | ||||||||||||
As of June 30, 2014 and September 30, 2013, certain assets were recorded at the lower of their carrying value or fair value. | ||||||||||||||||
The financial results of the Repair Group included in discontinued operations were as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales | $ | — | $ | 1,612 | $ | 1,339 | $ | 4,457 | ||||||||
Loss before income tax provision | (109 | ) | (494 | ) | (576 | ) | (1,430 | ) | ||||||||
Income tax benefit | (33 | ) | (186 | ) | (208 | ) | (567 | ) | ||||||||
Loss from discontinued operations, net of tax | $ | (76 | ) | $ | (308 | ) | $ | (368 | ) | $ | (863 | ) | ||||
As the Company exited the Repair Group, the Company recognized $959 in workforce reduction costs of which $274 was incurred in the first nine months of fiscal 2014 and $701 was paid as of June 30, 2014. | ||||||||||||||||
On December 10, 2012, the Company completed the divestiture of its Applied Surface Concepts ("ASC") business. There were no assets or liabilities held for sale at June 30, 2014 and September 30, 2013. | ||||||||||||||||
The financial results of ASC included in discontinued operations were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
30-Jun-13 | 30-Jun-13 | |||||||||||||||
Net sales | $ | — | $ | 2,727 | ||||||||||||
Income before income tax provision | — | 180 | ||||||||||||||
Income tax provision | 79 | 127 | ||||||||||||||
Income (loss) from operations, net of tax | (79 | ) | 53 | |||||||||||||
Gain (loss) on sale of discontinued operations, net of tax | — | 2,328 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | $ | (79 | ) | $ | 2,381 | |||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated. | |
The U.S. dollar is the functional currency for all of the Company’s U.S. operations and its Irish subsidiary. For these operations, all gains and losses from completed currency transactions are included in income currently. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements. | |
These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2013 Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year. | |
Net Income per Share | ' |
Net Income per Share | |
The Company’s net income per basic share has been computed based on the weighted-average number of common shares outstanding. Net income per diluted share reflects the effect of the Company’s outstanding stock options, restricted shares and performance shares under the treasury stock method. | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments | |
The Company uses an interest rate swap agreement to reduce risk related to variable-rate debt, which is subject to changes in market rates of interest. The interest rate swap is designated as a cash flow hedge. At June 30, 2014 and at September 30, 2013, the Company held one interest rate swap agreement with a notional amount of $4,500 and $6,000, respectively. Cash flows related to the interest rate swap agreement are included in interest expense. The Company’s interest rate swap agreement and its variable-rate term debt are based upon LIBOR. During the first nine months of fiscal 2014, the Company’s interest rate swap agreement qualified as a fully effective cash flow hedge against the Company’s variable-rate term note interest risk. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period amounts were reclassified to conform to the current consolidated financial statement presentation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Schedule of dilutive effect of company's stock options | ' | |||||||||||||||
The dilutive effect of the Company’s stock options, restricted shares and performance shares were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income from continuing operations | $ | 1,983 | $ | 2,865 | $ | 4,648 | $ | 5,810 | ||||||||
Income (loss) from discontinued operations, net of tax | (76 | ) | (387 | ) | (368 | ) | 1,518 | |||||||||
Net income | $ | 1,907 | $ | 2,478 | $ | 4,280 | $ | 7,328 | ||||||||
Weighted-average common shares outstanding (basic) | 5,413 | 5,374 | 5,399 | 5,359 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options | — | 1 | — | 1 | ||||||||||||
Restricted shares | 18 | 14 | 16 | 10 | ||||||||||||
Performance shares | — | 13 | 5 | 29 | ||||||||||||
Weighted-average common shares outstanding (diluted) | 5,431 | 5,402 | 5,420 | 5,399 | ||||||||||||
Net income per share – basic | ||||||||||||||||
Continuing operations | $ | 0.37 | $ | 0.53 | $ | 0.86 | $ | 1.08 | ||||||||
Discontinued operations | (0.01 | ) | (0.07 | ) | (0.07 | ) | 0.28 | |||||||||
Net income | $ | 0.36 | $ | 0.46 | $ | 0.79 | $ | 1.36 | ||||||||
Net income per share – diluted: | ||||||||||||||||
Continuing operations | $ | 0.37 | $ | 0.53 | $ | 0.86 | $ | 1.08 | ||||||||
Discontinued operations | (0.01 | ) | (0.07 | ) | (0.07 | ) | 0.28 | |||||||||
Net income | $ | 0.36 | $ | 0.46 | $ | 0.79 | $ | 1.36 | ||||||||
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share | 17 | 18 | 20 | 58 | ||||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule for components of inventories | ' | |||||||
Inventories consist of: | ||||||||
30-Jun-14 | 30-Sep-13 | |||||||
Raw materials and supplies | $ | 6,176 | $ | 5,906 | ||||
Work-in-process | 8,299 | 7,049 | ||||||
Finished goods | 7,987 | 5,385 | ||||||
Total inventories | $ | 22,462 | $ | 18,340 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Schedule of intangible assets by major class subject to amortization | ' | |||||||||||||
The Company’s intangible assets by major asset class subject to amortization consist of: | ||||||||||||||
30-Jun-14 | Estimated | Original | Accumulated | Net Book | ||||||||||
Useful Life | Cost | Amortization | Value | |||||||||||
Intangible assets: | ||||||||||||||
Trade name | 10 years | $ | 2,000 | $ | 596 | $ | 1,404 | |||||||
Non-compete agreement | 5 years | 1,600 | 908 | 692 | ||||||||||
Below market lease | 5 years | 900 | 640 | 260 | ||||||||||
Customer relationships | 10 years | 13,800 | 4,146 | 9,654 | ||||||||||
Order backlog | 1 year | 2,200 | 2,194 | 6 | ||||||||||
Transition services | < 1 year | 23 | 23 | — | ||||||||||
Total intangible assets | $ | 20,523 | $ | 8,507 | $ | 12,016 | ||||||||
September 30, 2013 | Estimated | Original | Accumulated | Net Book | ||||||||||
Useful Life | Cost | Amortization | Value | |||||||||||
Intangible assets: | ||||||||||||||
Trade name | 10 years | $ | 2,000 | $ | 446 | $ | 1,554 | |||||||
Non-compete agreement | 5 years | 1,600 | 668 | 932 | ||||||||||
Below market lease | 5 years | 900 | 505 | 395 | ||||||||||
Customer relationships | 10 years | 13,800 | 3,111 | 10,689 | ||||||||||
Order backlog | 1 year | 2,200 | 2,119 | 81 | ||||||||||
Transition services | < 1 year | 23 | 23 | — | ||||||||||
Total intangible assets | $ | 20,523 | $ | 6,872 | $ | 13,651 | ||||||||
Schedule of expected amortization expense | ' | |||||||||||||
Amortization expense associated with the identified intangible assets is expected to be as follows: | ||||||||||||||
Amortization | ||||||||||||||
Expense | ||||||||||||||
Fiscal year 2014 | $ | 2,161 | ||||||||||||
Fiscal year 2015 | 2,080 | |||||||||||||
Fiscal year 2016 | 1,854 | |||||||||||||
Fiscal year 2017 | 1,617 | |||||||||||||
Fiscal year 2018 | 1,596 | |||||||||||||
Schedule of goodwill activity for period end | ' | |||||||||||||
Changes in the net carrying amount of goodwill were as follows: | ||||||||||||||
Balance at September 30, 2013 | $ | 7,620 | ||||||||||||
Goodwill purchase price adjustment | 38 | |||||||||||||
Balance at June 30, 2014 | $ | 7,658 | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Schedule for components of accumulated other comprehensive loss | ' | |||||||
The components of accumulated other comprehensive loss are as follows: | ||||||||
30-Jun-14 | September 30, | |||||||
2013 | ||||||||
Foreign currency translation adjustment, net of tax | $ | (5,851 | ) | $ | (5,851 | ) | ||
Retirement plan liability adjustment, net of tax | (3,527 | ) | (3,866 | ) | ||||
Interest rate swap agreement adjustment, net of tax | 1 | (26 | ) | |||||
Total accumulated other comprehensive loss | $ | (9,377 | ) | $ | (9,743 | ) |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of components of long-term debt | ' | |||||||
Long-term debt consists of: | ||||||||
June 30, | 30-Sep-13 | |||||||
2014 | ||||||||
Revolving credit agreement | $ | 2,004 | $ | 3,381 | ||||
Term loan | 4,500 | 6,000 | ||||||
Promissory Note | — | 2,392 | ||||||
6,504 | 11,773 | |||||||
Less – current maturities | 2,000 | 4,392 | ||||||
Total long-term debt | $ | 4,504 | $ | 7,381 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||
Jun. 30, 2014 | ||||
Income Tax Disclosure [Abstract] | ' | |||
Summary of activity related to uncertain tax positions | ' | |||
A summary of activity related to the Company’s uncertain tax positions is as follows: | ||||
Balance at September 30, 2013 | $ | 177 | ||
Decrease due to tax positions effectively settled | (110 | ) | ||
Balance at June 30, 2014 | $ | 67 | ||
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Schedule of components of net periodic benefit cost | ' | |||||||||||||||
The components of net periodic benefit cost of the Company’s defined benefit plans are as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 31 | $ | 72 | $ | 94 | $ | 216 | ||||||||
Interest cost | 247 | 212 | 740 | 638 | ||||||||||||
Expected return on plan assets | (393 | ) | (371 | ) | (1,180 | ) | (1,114 | ) | ||||||||
Amortization of prior service cost | — | 13 | — | 39 | ||||||||||||
Amortization of net loss | 112 | 219 | 337 | 656 | ||||||||||||
Settlement cost | — | 191 | — | 382 | ||||||||||||
Net periodic (benefit) cost | $ | (3 | ) | $ | 336 | $ | (9 | ) | $ | 817 | ||||||
Business_Acquisition_Tables
Business Acquisition (Tables) | 9 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Pro forma results of operations | ' | |||||||
The following unaudited pro forma information presents a summary of the results of operations for the Company including GAF as if the acquisition had occurred on October 1, 2012: | ||||||||
Three Months Ended June 30, 2013 | Nine Months Ended June 30, 2013 | |||||||
Net sales | $ | 30,123 | $ | 88,343 | ||||
Net income | $ | 2,457 | $ | 7,270 | ||||
Net income per share (basic) | $ | 0.46 | $ | 1.36 | ||||
Net income per share (diluted) | $ | 0.45 | $ | 1.35 | ||||
Discontinued_Operations_Assets1
Discontinued Operations, Assets Held for Sale, and Business Divestiture (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||||||||||
Schedule for components of balance sheet accounts classified as assets and liabilities held for sale | ' | |||||||||||||||
The table below presents the components of the balance sheet accounts classified as assets and liabilities held for sale at June 30, 2014 and September 30, 2013, respectively. | ||||||||||||||||
30-Jun-14 | 30-Sep-13 | |||||||||||||||
Assets: | ||||||||||||||||
Receivables, net | $ | 103 | $ | 1,067 | ||||||||||||
Inventories, net | — | 660 | ||||||||||||||
Deferred income taxes | 42 | 317 | ||||||||||||||
Prepaid expenses and other current assets | — | 15 | ||||||||||||||
Total current assets of business from discontinued operations | $ | 145 | $ | 2,059 | ||||||||||||
Current assets held for sale | $ | 264 | $ | 278 | ||||||||||||
Property, plant and equipment, net | $ | — | $ | 840 | ||||||||||||
Other assets | — | 32 | ||||||||||||||
Total noncurrent assets of business from discontinued operations | $ | — | $ | 872 | ||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | 116 | 278 | ||||||||||||||
Accrued liabilities | — | 808 | ||||||||||||||
Total current liabilities of business from discontinued operations | $ | 116 | $ | 1,086 | ||||||||||||
Repair group | ' | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||||||||||
Schedule of financial results in discontinued operations | ' | |||||||||||||||
The financial results of the Repair Group included in discontinued operations were as follows: | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales | $ | — | $ | 1,612 | $ | 1,339 | $ | 4,457 | ||||||||
Loss before income tax provision | (109 | ) | (494 | ) | (576 | ) | (1,430 | ) | ||||||||
Income tax benefit | (33 | ) | (186 | ) | (208 | ) | (567 | ) | ||||||||
Loss from discontinued operations, net of tax | $ | (76 | ) | $ | (308 | ) | $ | (368 | ) | $ | (863 | ) | ||||
ASC group | ' | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||||||||||
Schedule of financial results in discontinued operations | ' | |||||||||||||||
There were no assets or liabilities held for sale at June 30, 2014 and September 30, 2013. | ||||||||||||||||
The financial results of ASC included in discontinued operations were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
30-Jun-13 | 30-Jun-13 | |||||||||||||||
Net sales | $ | — | $ | 2,727 | ||||||||||||
Income before income tax provision | — | 180 | ||||||||||||||
Income tax provision | 79 | 127 | ||||||||||||||
Income (loss) from operations, net of tax | (79 | ) | 53 | |||||||||||||
Gain (loss) on sale of discontinued operations, net of tax | — | 2,328 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | $ | (79 | ) | $ | 2,381 | |||||||||||
Dilutive_Effect_of_Companys_St
Dilutive Effect of Company's Stock Options Restricted Shares and Performance Shares (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' |
Income from continuing operations | $1,983 | $2,865 | $4,648 | $5,810 |
Income (loss) from discontinued operations, net of tax | -76 | -387 | -368 | 1,518 |
Net income | $1,907 | $2,478 | $4,280 | $7,328 |
Weighted-average common shares outstanding (basic) (in shares) | 5,413 | 5,374 | 5,399 | 5,359 |
Weighted-average common shares outstanding (diluted) (in shares) | 5,431 | 5,402 | 5,420 | 5,399 |
Net income per share – basic | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.37 | $0.53 | $0.86 | $1.08 |
Discontinued operations (in dollars per share) | ($0.01) | ($0.07) | ($0.07) | $0.28 |
Net income (in dollars per share) | $0.36 | $0.46 | $0.79 | $1.36 |
Net income per share – diluted: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.37 | $0.53 | $0.86 | $1.08 |
Discontinued operations (in dollars per share) | ($0.01) | ($0.07) | ($0.07) | $0.28 |
Net income (in dollars per share) | $0.36 | $0.46 | $0.79 | $1.36 |
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares) | 17 | 18 | 20 | 58 |
Stock options | ' | ' | ' | ' |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' |
Effect of dilutive securities (in shares) | 0 | 1 | 0 | 1 |
Restricted shares | ' | ' | ' | ' |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' |
Effect of dilutive securities (in shares) | 18 | 14 | 16 | 10 |
Performance shares | ' | ' | ' | ' |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' |
Effect of dilutive securities (in shares) | 0 | 13 | 5 | 29 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (Interest Rate Swap [Member], USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Interest Rate Swap [Member] | ' | ' |
Accounting Policies [Line Items] | ' | ' |
Interest rate swap agreement amount | $4,500 | $6,000 |
Inventories_Detail
Inventories (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and supplies | $6,176 | $5,906 |
Work-in-process | 8,299 | 7,049 |
Finished goods | 7,987 | 5,385 |
Total inventories | $22,462 | $18,340 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Percentage of inventories determined using LIFO method | 42.10% | 35.80% |
Difference between cost of inventories if FIFO method had been used | $7,731 | $7,977 |
Intangible_Assets_by_Major_Cla
Intangible Assets by Major Class Subject to Amortization (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Sep. 30, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Original Cost | $20,523 | $20,523 |
Accumulated Amortization | 8,507 | 6,872 |
Net Book Value | 12,016 | 13,651 |
Trade name | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life (in years) | '10 years | '10 years |
Original Cost | 2,000 | 2,000 |
Accumulated Amortization | 596 | 446 |
Net Book Value | 1,404 | 1,554 |
Non-compete agreement | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life (in years) | '5 years | '5 years |
Original Cost | 1,600 | 1,600 |
Accumulated Amortization | 908 | 668 |
Net Book Value | 692 | 932 |
Below market lease | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life (in years) | '5 years | '5 years |
Original Cost | 900 | 900 |
Accumulated Amortization | 640 | 505 |
Net Book Value | 260 | 395 |
Customer relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life (in years) | '10 years | '10 years |
Original Cost | 13,800 | 13,800 |
Accumulated Amortization | 4,146 | 3,111 |
Net Book Value | 9,654 | 10,689 |
Order backlog | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life (in years) | '1 year | '1 year |
Original Cost | 2,200 | 2,200 |
Accumulated Amortization | 2,194 | 2,119 |
Net Book Value | 6 | 81 |
Transition services | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Original Cost | 23 | 23 |
Accumulated Amortization | 23 | 23 |
Net Book Value | $0 | $0 |
Maximum | Transition services | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life (in years) | '1 year | '1 year |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $545 | $492 | $1,635 | $1,544 |
Expected_Amortization_Expense_
Expected Amortization Expense (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Fiscal year 2014 | $2,161 |
Fiscal year 2015 | 2,080 |
Fiscal year 2016 | 1,854 |
Fiscal year 2017 | 1,617 |
Fiscal year 2018 | $1,596 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets Goodwill rollforward (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
Goodwill, beginning of period | $7,620 |
Goodwill purchase price adjustment | 38 |
Goodwill, end of period | $7,658 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Loss (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ' | ' |
Foreign currency translation adjustment, net of tax | ($5,851) | ($5,851) |
Retirement plan liability adjustment, net of tax | -3,527 | -3,866 |
Interest rate swap agreement adjustment, net of tax | 1 | -26 |
Total accumulated other comprehensive loss | ($9,377) | ($9,743) |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Non current maturities | $6,504 | $11,773 |
Less – current maturities | 2,000 | 4,392 |
Total long-term debt | 4,504 | 7,381 |
Revolving credit agreement | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Non current maturities | 2,004 | 3,381 |
Term loan | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Non current maturities | 4,500 | 6,000 |
Promissory Note | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Non current maturities | $0 | $2,392 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Oct. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 31, 2011 | Oct. 31, 2011 | Jun. 30, 2014 | Oct. 31, 2011 | Oct. 31, 2011 | |
Revolving loan | Revolving loan | Revolving loan | Credit Agreement Amendment | Term loan | Term loan | Credit Facility Term One | Credit Facility Term Two | |||
Minimum | Maximum | Credit Agreement Amendment | Credit Agreement Amendment | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement, maximum borrowing amount | ' | ' | $30,000,000 | ' | ' | $40,000,000 | ' | ' | ' | ' |
Proceeds from revolving credit agreement | 28,464,000 | 37,563,000 | ' | ' | ' | ' | ' | ' | 10,000,000 | 30,000,000 |
Period of credit agreement (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years |
Percentage of stock of non-U.S. subsidiaries pledged | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' |
Quarterly installments payment | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' |
Quarterly installments payment starting date | ' | ' | ' | ' | ' | ' | ' | 1-Dec-11 | ' | ' |
Libor-based variable interest rate of term loan | ' | ' | ' | ' | ' | ' | ' | 2.20% | ' | ' |
Effective fixed rate on term loan | ' | ' | ' | ' | ' | ' | ' | 2.90% | ' | ' |
Interest rate on revolving loan, percentage added to Libor | ' | ' | ' | 0.75% | 1.75% | ' | ' | ' | ' | ' |
Interest rate | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee | ' | ' | ' | 0.10% | 0.25% | ' | ' | ' | ' | ' |
Promissory note payable period | '2013-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Imputed interest rate used to discount | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective tax rate | 29.00% | 32.00% | ' |
Foreign tax credits | $158 | ' | ' |
Decrease in reserves for uncertain tax positions | 110 | ' | ' |
Liabilities recorded for uncertain tax positions and related interest and penalties | $67 | ' | $177 |
Summary_of_Activity_Related_to
Summary of Activity Related to Uncertain Tax Positions (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' |
Balance at September 30, 2013 | $177 |
Decrease due to tax positions effectively settled | -110 |
Balance at June 30, 2014 | $67 |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Service cost | $31 | $72 | $94 | $216 |
Interest cost | 247 | 212 | 740 | 638 |
Expected return on plan assets | -393 | -371 | -1,180 | -1,114 |
Amortization of prior service cost | 0 | 13 | 0 | 39 |
Amortization of net loss | 112 | 219 | 337 | 656 |
Settlement cost | 0 | 191 | 0 | 382 |
Net periodic (benefit) cost | ($3) | $336 | ($9) | $817 |
Retirement_Benefit_Plans_Addit
Retirement Benefit Plans - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Contributions amount in defined benefit pension plans | $382 | $670 |
Anticipated additional contributions in defined benefit pension plans | $127 | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock options, vesting period (in years) | ' | ' | '10 years | ' |
2007 Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock options, vesting period (in years) | ' | ' | '10 years | ' |
Aggregate number of shares that may be awarded | 600,000 | ' | 600,000 | ' |
Performance period (in years) | ' | ' | '3 years | ' |
Stock options may be awarded (in shares) | 290,000 | ' | 290,000 | ' |
Compensation expense related to performance and restricted shares awarded | $498 | $148 | $1,051 | $515 |
Total unrecognized compensation cost related to performance and restricted shares awarded | $2,514 | ' | $2,514 | ' |
Period of recognized compensation cost (in years) | ' | ' | '2 years 3 months | ' |
2007 Plan | Maximum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common shares earned as percentage of initial target number shares awarded | ' | ' | 150.00% | ' |
Outstanding share awards earned and issued at greater than the target number of shares | ' | ' | 150.00% | ' |
Performance shares | 2007 Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock options, vesting period (in years) | ' | ' | '3 years | ' |
Awards forfeited (in shares) | ' | ' | 45,000 | ' |
Shares forfeited fair value (in dollars per share) | ' | ' | $16.03 | ' |
Additional shares granted (in shares) | ' | ' | 43,000 | ' |
Additional shares granted fair value (in dollars per share) | ' | ' | $26.50 | ' |
Additional shares granted, vesting period | ' | ' | '2 years | ' |
Share granted (in shares) | ' | ' | 68,000 | ' |
Granted shares fair value (in dollars per share) | ' | ' | $26.50 | ' |
Restricted shares | Minimum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock options, vesting period (in years) | ' | ' | '1 year | ' |
Restricted shares | 2007 Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock options, vesting period (in years) | ' | ' | '1 year | ' |
Additional shares granted (in shares) | ' | ' | 10,000 | ' |
Additional shares granted fair value (in dollars per share) | ' | ' | $31.12 | ' |
Share granted (in shares) | ' | ' | 18,000 | ' |
Granted shares fair value (in dollars per share) | ' | ' | $22.02 | ' |
Business_Acquisition_Details
Business Acquisition (Details) (General Aluminum Forgings, LLC, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jul. 23, 2013 |
General Aluminum Forgings, LLC | ' |
Business Acquisition [Line Items] | ' |
Purchase price for forging business and related operating assets | $4,400 |
Pro_Forma_Results_of_Operation
Pro Forma Results of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Business Combinations [Abstract] | ' | ' |
Net sales | $30,123 | $88,343 |
Net income | $2,457 | $7,270 |
Net income per share (basic) (in dollars per share) | $0.46 | $1.36 |
Net income per share (diluted) (in dollars per share) | $0.45 | $1.35 |
Components_of_Balance_Sheet_Ac
Components of Balance Sheet Accounts Classified as Assets and Liabilities Held for Sale (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Receivables, net | $103 | $1,067 |
Inventories, net | 0 | 660 |
Deferred income taxes | 42 | 317 |
Prepaid expenses and other current assets | 0 | 15 |
Total current assets of business from discontinued operations | 145 | 2,059 |
Assets held for sale | 264 | 278 |
Property, plant and equipment, net | 0 | 840 |
Other assets | 0 | 32 |
Total noncurrent assets of business from discontinued operations | 0 | 872 |
Liabilities: | ' | ' |
Accounts payable | 116 | 278 |
Accrued liabilities | 0 | 808 |
Total current liabilities of business from discontinued operations | $116 | $1,086 |
Financial_Results_in_Discontin
Financial Results in Discontinued Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Income (loss) from discontinued operations, net of tax | ' | ' | $368 | ($1,518) |
ASC group | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Net sales | ' | 0 | ' | 2,727 |
Income (loss) before income tax provision | ' | 0 | ' | 180 |
Income tax provision (benefit) | ' | 79 | ' | 127 |
Income (loss) from operations, net of tax | ' | -79 | ' | 53 |
Gain (loss) on sale of discontinued operations, net of tax | ' | 0 | ' | 2,328 |
Income (loss) from discontinued operations, net of tax | ' | -79 | ' | 2,381 |
Repair group | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Net sales | 0 | 1,612 | 1,339 | 4,457 |
Income (loss) before income tax provision | -109 | -494 | -576 | -1,430 |
Income tax provision (benefit) | -33 | -186 | -208 | -567 |
Income (loss) from discontinued operations, net of tax | ($76) | ($308) | ($368) | ($863) |
Discontinued_Operations_Assets2
Discontinued Operations, Assets Held for Sale, and Business Divestiture Narrative (Details) (Repair group, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Repair group | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Workforce reduction costs expected | $959 |
Workforce reduction costs incurred | 274 |
Workforce reduction costs paid | $701 |