Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Mar. 31, 2015 | |
Document Documentand Entity Information [Abstract] | |
Entity Registrant Name | SIFCO INDUSTRIES INC |
Entity Central Index Key | 90168 |
Current Fiscal Year End Date | -21 |
Entity Filer Category | Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 5,448,007 |
Trading Symbol | SIF |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Net sales | $24,615 | $29,044 | $44,695 | $55,696 |
Cost of goods sold | 20,914 | 22,740 | 37,992 | 43,822 |
Gross profit | 3,701 | 6,304 | 6,703 | 11,874 |
Selling, general and administrative expenses | 4,486 | 3,444 | 8,930 | 6,902 |
Amortization of intangible assets | 520 | 545 | 1,040 | 1,090 |
Loss (gain) on disposal of operating assets | 2 | 0 | 2 | -2 |
Operating income (loss) | -1,307 | 2,315 | -3,269 | 3,884 |
Interest income | -3 | -5 | -7 | -9 |
Interest expense | 48 | 51 | 108 | 136 |
Foreign currency exchange (gain) loss, net | -48 | -1 | -57 | 6 |
Other income, net | -107 | -108 | -214 | -217 |
Income (loss) from continuing operations before income tax provision (benefit) | -1,197 | 2,378 | -3,099 | 3,968 |
Income tax provision (benefit) | -334 | 867 | -894 | 1,303 |
Income (loss) from continuing operations | -863 | 1,511 | -2,205 | 2,665 |
Income (loss) from discontinued operations, net of tax | 799 | -85 | 736 | -292 |
Net income (loss) | ($64) | $1,426 | ($1,469) | $2,373 |
Income (loss) per share from continuing operations | ||||
Basic (in dollars per share) | ($0.16) | $0.28 | ($0.41) | $0.49 |
Diluted (in dollars per share) | ($0.16) | $0.28 | ($0.41) | $0.49 |
Income (loss) per share from discontinued operations, net of tax | ||||
Basic (in dollars per share) | $0.15 | ($0.02) | $0.14 | ($0.05) |
Diluted (in dollars per share) | $0.15 | ($0.02) | $0.14 | ($0.05) |
Net income (loss) per share | ||||
Basic (in dollars per share) | ($0.01) | $0.26 | ($0.27) | $0.44 |
Diluted (in dollars per share) | ($0.01) | $0.26 | ($0.27) | $0.44 |
Weighted-average common shares outstanding (basic) (in shares) | 5,438 | 5,407 | 5,430 | 5,393 |
Weighted-average common shares outstanding (diluted) (in shares) | 5,446 | 5,423 | 5,447 | 5,415 |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Net income (loss) | ($64) | $1,426 | ($1,469) | $2,373 |
Other comprehensive income (loss), net of tax: | ||||
Retirement plan liability adjustment | 132 | 153 | 261 | 302 |
Interest rate swap agreement adjustment | 0 | 8 | 5 | 17 |
Comprehensive income (loss) | $68 | $1,587 | ($1,203) | $2,692 |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $4,687 | $4,596 |
Receivables, net of allowance for doubtful accounts of $505 and $333, respectively | 23,245 | 25,915 |
Inventories, net | 25,660 | 18,919 |
Refundable income taxes | 1,802 | 410 |
Deferred income taxes | 791 | 791 |
Prepaid expenses and other current assets | 3,302 | 1,878 |
Current assets of business from discontinued operations | 0 | 392 |
Total current assets | 59,487 | 52,901 |
Property, plant and equipment, net | 36,729 | 37,148 |
Intangible assets, net | 10,450 | 11,490 |
Goodwill | 7,658 | 7,658 |
Other assets | 521 | 500 |
Total assets | 114,845 | 109,697 |
Current liabilities: | ||
Current maturities of long-term debt | 2,000 | 2,000 |
Accounts payable | 9,617 | 10,526 |
Accrued liabilities | 6,702 | 6,432 |
Current liabilities of business from discontinued operations | 10 | 196 |
Total current liabilities | 18,329 | 19,154 |
Long-term debt, net of current maturities | 15,575 | 8,429 |
Deferred income taxes | 772 | 774 |
Pension liability | 4,056 | 4,331 |
Other long-term liabilities | 331 | 389 |
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 – 5,470 at March 31, 2015 and 5,448 at September 30, 2014 | 5,470 | 5,448 |
Additional paid-in capital | 9,444 | 9,102 |
Retained earnings | 71,215 | 72,683 |
Accumulated other comprehensive loss | -10,347 | -10,613 |
Total shareholders’ equity | 75,782 | 76,620 |
Total liabilities and shareholders’ equity | $114,845 | $109,697 |
Consolidated_Condensed_Balance1
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Receivables, allowance for doubtful accounts | $505 | $333 |
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 | 5,470,000 | 5,448,000 |
Common shares, number of shares outstanding | 5,470,000 | 5,448,000 |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | ($1,469) | $2,373 |
(Income) loss from discontinued operations, net of tax | -736 | 292 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 3,535 | 3,358 |
Loss (gain) on disposal of operating assets | 2 | -2 |
LIFO (income) expense | 185 | -164 |
Share transactions under company stock plan | 365 | 292 |
Other long-term liabilities | -68 | -26 |
Deferred income taxes | -2 | 41 |
Changes in operating assets and liabilities: | ||
Receivables | 2,670 | 2,617 |
Inventories | -6,927 | -2,871 |
Refundable taxes | -1,392 | 0 |
Prepaid expenses and other current assets | -1,424 | -569 |
Other assets | -22 | -40 |
Accounts payable | 1,617 | 4,850 |
Other accrued liabilities | 1,259 | -380 |
Accrued income and other taxes | 101 | -1,258 |
Net cash provided by (used for) operating activities of continuing operations | -2,306 | 8,513 |
Net cash provided by (used for) operating activities of discontinued operations | -479 | 471 |
Cash flows from investing activities: | ||
Proceeds from disposal of operating assets | 2 | 0 |
Capital expenditures | -4,604 | -3,714 |
Net cash used for investing activities of continuing operations | -4,602 | -3,714 |
Net cash provided by investing activities of discontinued operations | 1,422 | 950 |
Cash flows from financing activities: | ||
Payments on long term debt | -1,000 | -3,393 |
Proceeds from revolving credit agreement | 27,154 | 17,027 |
Repayments of revolving credit agreement | -19,008 | -18,774 |
Proceeds from exercise of stock options | 0 | 4 |
Cash dividends paid | -1,090 | -1,081 |
Net cash provided by (used for) financing activities of continuing operations | 6,056 | -6,217 |
Increase in cash and cash equivalents | 91 | 3 |
Cash and cash equivalents at the beginning of the period | 4,596 | 4,508 |
Cash and cash equivalents at the end of the period | 4,687 | 4,511 |
Supplemental disclosure of cash flow information of continuing operations: | ||
Cash paid for interest | -103 | -108 |
Cash paid for income taxes, net | ($817) | ($1,268) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 2014 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. Accounting Policies | ||||||||||||||||
A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company's fiscal 2014 Annual Report on Form 10-K. Since the Annual Report, the Company has changed its estimates process for its workers' compensation reserve. The Company uses a third party actuary to evaluate its reserves annually. Effective in the first quarter of fiscal 2015, the Company changed to a new third party administrator that also evaluates the reserve on a monthly basis. The change in administrators resulted in a reduction in the Company's reserve and a corresponding decrease in expense of approximately $400. The change is reflected in the Company's first six months of fiscal 2015 results. | ||||||||||||||||
C. Net Income (Loss) per Share | ||||||||||||||||
The Company’s net income (loss) per basic share has been computed based on the weighted-average number of common shares outstanding. Net income (loss) 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 restricted shares and performance shares were as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Income (loss) from continuing operations | $ | (863 | ) | $ | 1,511 | $ | (2,205 | ) | $ | 2,665 | ||||||
Income (loss) from discontinued operations, net of tax | 799 | (85 | ) | 736 | (292 | ) | ||||||||||
Net income (loss) | $ | (64 | ) | $ | 1,426 | $ | (1,469 | ) | $ | 2,373 | ||||||
Weighted-average common shares outstanding (basic) | 5,438 | 5,407 | 5,430 | 5,393 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Restricted shares | 6 | 13 | 16 | 15 | ||||||||||||
Performance shares | 2 | 3 | 1 | 7 | ||||||||||||
Weighted-average common shares outstanding (diluted) | 5,446 | 5,423 | 5,447 | 5,415 | ||||||||||||
Net income (loss) per share – basic | ||||||||||||||||
Continuing operations | $ | (0.16 | ) | $ | 0.28 | $ | (0.41 | ) | $ | 0.49 | ||||||
Discontinued operations | 0.15 | (0.02 | ) | 0.14 | (0.05 | ) | ||||||||||
Net income (loss) | $ | (0.01 | ) | $ | 0.26 | $ | (0.27 | ) | $ | 0.44 | ||||||
Net income (loss) per share – diluted: | ||||||||||||||||
Continuing operations | $ | (0.16 | ) | $ | 0.28 | $ | (0.41 | ) | $ | 0.49 | ||||||
Discontinued operations | 0.15 | (0.02 | ) | 0.14 | (0.05 | ) | ||||||||||
Net income (loss) | $ | (0.01 | ) | $ | 0.26 | $ | (0.27 | ) | $ | 0.44 | ||||||
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share | 20 | 24 | 14 | 22 | ||||||||||||
D. 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 September 30, 2014, the Company held one interest rate swap agreement with a notional amount of $4,000. The interest rate swap matured as of December 31, 2014. 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 were based upon LIBOR. During the first quarter of fiscal 2015, 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. | ||||||||||||||||
E. Reclassifications | ||||||||||||||||
Certain prior period amounts were reclassified to conform to the current consolidated financial statement presentation. |
Inventories
Inventories | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consist of: | ||||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
Raw materials and supplies | $ | 6,843 | $ | 5,957 | ||||
Work-in-process | 9,682 | 6,232 | ||||||
Finished goods | 9,135 | 6,730 | ||||||
Total inventories | $ | 25,660 | $ | 18,919 | ||||
Inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (“LIFO”) method for 50% and 40% of the Company’s inventories at March 31, 2015 and September 30, 2014, 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 $8,064 and $7,879 higher than reported at March 31, 2015 and September 30, 2014, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Equity [Abstract] | ||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||
The components of accumulated other comprehensive loss are as follows: | ||||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
Foreign currency translation adjustment, net of tax | $ | (5,851 | ) | $ | (5,851 | ) | ||
Retirement plan liability adjustment, net of tax | (4,496 | ) | (4,757 | ) | ||||
Interest rate swap agreement adjustment, net of tax | — | (5 | ) | |||||
Total accumulated other comprehensive loss | $ | (10,347 | ) | $ | (10,613 | ) |
LongTerm_Debt
Long-Term Debt | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Long-Term Debt | |||||||
Long-term debt consists of: | ||||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
Revolving credit agreement | $ | 14,575 | $ | 6,429 | ||||
Term loan | 3,000 | 4,000 | ||||||
17,575 | 10,429 | |||||||
Less – current maturities | 2,000 | 2,000 | ||||||
Total long-term debt | $ | 15,575 | $ | 8,429 | ||||
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 year term loan and $30,000 is a five 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 2.3% at March 31, 2015. 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 March 31, 2015, 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. In September 2014, the Company entered into an amendment to its existing credit agreement to revise the definition of the fixed charge 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 March 31, 2015. |
Income_Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2015 | |
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 six months of fiscal 2015 was 29%, compared with 33% for the same period of fiscal 2014. This decrease is primarily attributed to an increase in U.S. federal tax credits applied against forecasted income in fiscal 2015 as well as discrete tax expense of $63 related to prior periods, applied against a year-to-date domestic loss. The effective tax rate differs from the U.S. federal statutory rate due primarily to the application of U.S. tax credits as well as income in Ireland that is taxed at a rate that is less than the U.S. statutory federal income tax rate. | |
The Internal Revenue Service finalized regulations, as of August 2014, 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, Ireland and various states and local jurisdictions. The Company believes it has appropriate support for its federal income tax returns. |
Retirement_Benefit_Plans
Retirement Benefit Plans | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 37 | $ | 30 | $ | 73 | $ | 61 | ||||||||
Interest cost | 244 | 250 | 487 | 501 | ||||||||||||
Expected return on plan assets | (418 | ) | (393 | ) | (835 | ) | (786 | ) | ||||||||
Amortization of net loss | 136 | 151 | 273 | 301 | ||||||||||||
Settlement cost | — | 50 | — | 125 | ||||||||||||
Net periodic cost | $ | (1 | ) | $ | 88 | $ | (2 | ) | $ | 202 | ||||||
During the six months ended March 31, 2015 and 2014, the Company has made no contributions and $255, respectively, to its defined benefit pension plans. The Company does not anticipate making any additional contributions to fund its defined benefit pension plans during the balance of fiscal 2015. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation |
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 unvested 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 award is 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 vesting 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 vest 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 the grant. The vesting of such shares is determined at the end of the performance period. | |
During the first six months of fiscal 2015, 56 performance share awards were granted, 11 performance shares were vested and 71 performance share awards expired or were forfeited under the 2007 Plan. The shares vest over a three 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 the grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one year. | |
During the first six months months of fiscal 2015, 26 restricted shares were granted, 33 restricted shares were vested and 5 restricted shares were forfeited under the 2007 Plan. The shares vest over a one year service period. | |
If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 283 shares that remain available for award at March 31, 2015. If any of the outstanding share awards are ultimately earned and vest 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 $400 and $553 during the first six months of fiscal 2015 and 2014, and a benefit of $129 and expense of $315 during the second quarter of fiscal 2015 and 2014, respectively. Included in severance expense is stock-based compensation expense for shares issued to a former executive officer as part of the executive's severance package in the amount of $233 for the six months ended and three months ended of fiscal 2015. As of March 31, 2015, there was $2,174 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 2.5 years. |
Discontinued_Operations_Assets
Discontinued Operations, Assets Held for Sale, and Business Divestiture | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 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 of discontinued operations at March 31, 2015 and September 30, 2014, respectively. | ||||||||||||||||
March 31, | September 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Assets: | ||||||||||||||||
Receivables, net | $ | — | $ | 91 | ||||||||||||
Deferred income taxes | — | 15 | ||||||||||||||
Prepaid expenses and other current assets | — | 22 | ||||||||||||||
Asset held for sale | — | 264 | ||||||||||||||
Total current assets of business from discontinued operations | $ | — | $ | 392 | ||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 10 | $ | 23 | ||||||||||||
Accrued liabilities | — | 173 | ||||||||||||||
Total current liabilities of business from discontinued operations | $ | 10 | $ | 196 | ||||||||||||
At September 30, 2014, certain assets were recorded at the lower of their carrying value or fair value. The Company completed a transaction on January 30, 2015 for the sale of the building and land for the cash proceeds of $1,422, net of selling expenses. | ||||||||||||||||
The financial results of the Repair Group included in discontinued operations were as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net sales | $ | — | $ | — | $ | — | $ | 1,339 | ||||||||
Income (loss) before income tax provision | 1,259 | (136 | ) | 1,160 | (467 | ) | ||||||||||
Income tax (benefit) expense | 460 | (51 | ) | 424 | (175 | ) | ||||||||||
Income (loss) from discontinued operations, net of tax | $ | 799 | $ | (85 | ) | $ | 736 | $ | (292 | ) | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2015 | |
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 2014 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 (Loss) per Share |
The Company’s net income (loss) per basic share has been computed based on the weighted-average number of common shares outstanding. Net income (loss) 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 September 30, 2014, the Company held one interest rate swap agreement with a notional amount of $4,000. The interest rate swap matured as of December 31, 2014. 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 were based upon LIBOR. During the first quarter of fiscal 2015, 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) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Schedule of dilutive effect of company's stock options | The dilutive effect of the Company’s restricted shares and performance shares were as follows: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Income (loss) from continuing operations | $ | (863 | ) | $ | 1,511 | $ | (2,205 | ) | $ | 2,665 | ||||||
Income (loss) from discontinued operations, net of tax | 799 | (85 | ) | 736 | (292 | ) | ||||||||||
Net income (loss) | $ | (64 | ) | $ | 1,426 | $ | (1,469 | ) | $ | 2,373 | ||||||
Weighted-average common shares outstanding (basic) | 5,438 | 5,407 | 5,430 | 5,393 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Restricted shares | 6 | 13 | 16 | 15 | ||||||||||||
Performance shares | 2 | 3 | 1 | 7 | ||||||||||||
Weighted-average common shares outstanding (diluted) | 5,446 | 5,423 | 5,447 | 5,415 | ||||||||||||
Net income (loss) per share – basic | ||||||||||||||||
Continuing operations | $ | (0.16 | ) | $ | 0.28 | $ | (0.41 | ) | $ | 0.49 | ||||||
Discontinued operations | 0.15 | (0.02 | ) | 0.14 | (0.05 | ) | ||||||||||
Net income (loss) | $ | (0.01 | ) | $ | 0.26 | $ | (0.27 | ) | $ | 0.44 | ||||||
Net income (loss) per share – diluted: | ||||||||||||||||
Continuing operations | $ | (0.16 | ) | $ | 0.28 | $ | (0.41 | ) | $ | 0.49 | ||||||
Discontinued operations | 0.15 | (0.02 | ) | 0.14 | (0.05 | ) | ||||||||||
Net income (loss) | $ | (0.01 | ) | $ | 0.26 | $ | (0.27 | ) | $ | 0.44 | ||||||
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share | 20 | 24 | 14 | 22 | ||||||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule for components of inventories | Inventories consist of: | |||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
Raw materials and supplies | $ | 6,843 | $ | 5,957 | ||||
Work-in-process | 9,682 | 6,232 | ||||||
Finished goods | 9,135 | 6,730 | ||||||
Total inventories | $ | 25,660 | $ | 18,919 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Equity [Abstract] | ||||||||
Schedule for components of accumulated other comprehensive loss | The components of accumulated other comprehensive loss are as follows: | |||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
Foreign currency translation adjustment, net of tax | $ | (5,851 | ) | $ | (5,851 | ) | ||
Retirement plan liability adjustment, net of tax | (4,496 | ) | (4,757 | ) | ||||
Interest rate swap agreement adjustment, net of tax | — | (5 | ) | |||||
Total accumulated other comprehensive loss | $ | (10,347 | ) | $ | (10,613 | ) |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of components of long-term debt | Long-term debt consists of: | |||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
Revolving credit agreement | $ | 14,575 | $ | 6,429 | ||||
Term loan | 3,000 | 4,000 | ||||||
17,575 | 10,429 | |||||||
Less – current maturities | 2,000 | 2,000 | ||||||
Total long-term debt | $ | 15,575 | $ | 8,429 | ||||
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 37 | $ | 30 | $ | 73 | $ | 61 | ||||||||
Interest cost | 244 | 250 | 487 | 501 | ||||||||||||
Expected return on plan assets | (418 | ) | (393 | ) | (835 | ) | (786 | ) | ||||||||
Amortization of net loss | 136 | 151 | 273 | 301 | ||||||||||||
Settlement cost | — | 50 | — | 125 | ||||||||||||
Net periodic cost | $ | (1 | ) | $ | 88 | $ | (2 | ) | $ | 202 | ||||||
Discontinued_Operations_Assets1
Discontinued Operations, Assets Held for Sale, and Business Divestiture (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
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 of discontinued operations at March 31, 2015 and September 30, 2014, respectively. | |||||||||||||||
March 31, | September 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Assets: | ||||||||||||||||
Receivables, net | $ | — | $ | 91 | ||||||||||||
Deferred income taxes | — | 15 | ||||||||||||||
Prepaid expenses and other current assets | — | 22 | ||||||||||||||
Asset held for sale | — | 264 | ||||||||||||||
Total current assets of business from discontinued operations | $ | — | $ | 392 | ||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 10 | $ | 23 | ||||||||||||
Accrued liabilities | — | 173 | ||||||||||||||
Total current liabilities of business from discontinued operations | $ | 10 | $ | 196 | ||||||||||||
Schedule of financial results in discontinued operations | The financial results of the Repair Group included in discontinued operations were as follows: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net sales | $ | — | $ | — | $ | — | $ | 1,339 | ||||||||
Income (loss) before income tax provision | 1,259 | (136 | ) | 1,160 | (467 | ) | ||||||||||
Income tax (benefit) expense | 460 | (51 | ) | 424 | (175 | ) | ||||||||||
Income (loss) from discontinued operations, net of tax | $ | 799 | $ | (85 | ) | $ | 736 | $ | (292 | ) | ||||||
Dilutive_Effect_of_Companys_St
Dilutive Effect of Company's Stock Options Restricted Shares and Performance Shares (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Income (loss) from continuing operations | ($863) | $1,511 | ($2,205) | $2,665 |
Income (loss) from discontinued operations, net of tax | 799 | -85 | 736 | -292 |
Net income (loss) | ($64) | $1,426 | ($1,469) | $2,373 |
Weighted-average common shares outstanding (basic) (in shares) | 5,438 | 5,407 | 5,430 | 5,393 |
Weighted-average common shares outstanding (diluted) (in shares) | 5,446 | 5,423 | 5,447 | 5,415 |
Net income (loss) per share – basic | ||||
Continuing operations (in dollars per share) | ($0.16) | $0.28 | ($0.41) | $0.49 |
Discontinued operations (in dollars per share) | $0.15 | ($0.02) | $0.14 | ($0.05) |
Net income (in dollars per share) | ($0.01) | $0.26 | ($0.27) | $0.44 |
Net income (loss) per share – diluted: | ||||
Continuing operations (in dollars per share) | ($0.16) | $0.28 | ($0.41) | $0.49 |
Discontinued operations (in dollars per share) | $0.15 | ($0.02) | $0.14 | ($0.05) |
Net income (in dollars per share) | ($0.01) | $0.26 | ($0.27) | $0.44 |
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares) | 20 | 24 | 14 | 22 |
Restricted shares | ||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Effect of dilutive securities (in shares) | 6 | 13 | 16 | 15 |
Performance shares | ||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Effect of dilutive securities (in shares) | 2 | 3 | 1 | 7 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 |
Interest Rate Swap | ||
Accounting Policies [Line Items] | ||
Interest rate swap agreement amount | $4,000 | |
Change in Third Party Actuary | Adjustment | ||
Accounting Policies [Line Items] | ||
Decrease in workers compensation expense | 400 | |
Change in workers compensation reserve | $400 |
Inventories_Detail
Inventories (Detail) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $6,843 | $5,957 |
Work-in-process | 9,682 | 6,232 |
Finished goods | 9,135 | 6,730 |
Total inventories | $25,660 | $18,919 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Percentage of inventories determined using LIFO method | 50.00% | 40.00% |
Difference between cost of inventories if FIFO method had been used | $8,064 | $7,879 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Loss (Detail) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
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 | -4,496 | -4,757 |
Interest rate swap agreement adjustment, net of tax | 0 | -5 |
Total accumulated other comprehensive loss | ($10,347) | ($10,613) |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $17,575 | $10,429 |
Less – current maturities | -2,000 | -2,000 |
Long-term debt, net of current maturities | 15,575 | 8,429 |
Revolving credit agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 14,575 | 6,429 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $3,000 | $4,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 6 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Oct. 31, 2011 | |
Debt Instrument [Line Items] | |||
Proceeds from revolving credit agreement | $27,154,000 | $17,027,000 | |
Interest rate | 1.00% | ||
Promissory note payable period | 2013-11 | ||
Revolving loan | |||
Debt Instrument [Line Items] | |||
Credit agreement, maximum borrowing amount | 30,000,000 | ||
Revolving loan | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate on revolving loan, percentage added to Libor | 0.75% | ||
Commitment fee | 0.10% | ||
Revolving loan | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate on revolving loan, percentage added to Libor | 1.75% | ||
Commitment fee | 0.25% | ||
Credit Agreement Amendment | |||
Debt Instrument [Line Items] | |||
Credit agreement, maximum borrowing amount | 40,000,000 | ||
Percentage of stock of non-U.S. subsidiaries pledged | 65.00% | ||
Term loan | |||
Debt Instrument [Line Items] | |||
Quarterly installments payment | 500,000 | ||
Quarterly installments payment starting date | 1-Dec-11 | ||
Libor-based variable interest rate of term loan | 2.30% | ||
Credit Facility Term One | Credit Agreement Amendment | |||
Debt Instrument [Line Items] | |||
Proceeds from revolving credit agreement | 10,000,000 | ||
Period of credit agreement (in years) | 5 years | ||
Credit Facility Term Two | Credit Agreement Amendment | |||
Debt Instrument [Line Items] | |||
Proceeds from revolving credit agreement | $30,000,000 | ||
Period of credit agreement (in years) | 5 years |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 6 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 29.00% | 33.00% |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Service cost | $37 | $30 | $73 | $61 |
Interest cost | 244 | 250 | 487 | 501 |
Expected return on plan assets | -418 | -393 | -835 | -786 |
Amortization of net loss | 136 | 151 | 273 | 301 |
Settlement cost | 0 | 50 | 0 | 125 |
Net periodic cost | ($1) | $88 | ($2) | $202 |
Retirement_Benefit_Plans_Addit
Retirement Benefit Plans - Additional Information (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Contributions amount in defined benefit pension plans | $0 | $255 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
2007 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares that may be awarded | 600,000 | 600,000 | ||
Stock options, vesting period (in years) | 10 years | |||
Performance period (in years) | 3 years | |||
Stock options may be awarded (in shares) | 283,000 | 283,000 | ||
Compensation expense related to performance and restricted shares awarded | $129 | $315 | $400 | $553 |
Total unrecognized compensation cost related to performance and restricted shares awarded | 2,174 | 2,174 | ||
Period of recognized compensation cost (in years) | 2 years 6 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 | |||
Share granted (in shares) | 56,000 | |||
Shares vested (in shares) | 11,000 | |||
Shares expired and forfeited (in shares) | 71,000 | |||
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 | |||
Share granted (in shares) | 26,000 | |||
Shares vested (in shares) | 33,000 | |||
Shares forfeited (in shares) | 5,000 | |||
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Severance costs | $233 | $233 |
Discontinued_Operations_Assets2
Discontinued Operations, Assets Held for Sale, and Business Divestiture - Components of Balance Sheet Accounts Classified as Assets and Liabilities Held for Sale (Detail) (USD $) | Mar. 31, 2015 | Jan. 30, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |||
Assets: | |||
Receivables, net | $0 | $91 | |
Deferred income taxes | 0 | 15 | |
Prepaid expenses and other current assets | 0 | 22 | |
Asset held for sale | 0 | 264 | |
Current assets of business from discontinued operations | 0 | 392 | |
Liabilities: | |||
Accounts payable | 10 | 23 | |
Accrued liabilities | 0 | 173 | |
Total current liabilities of business from discontinued operations | 10 | 196 | |
Cash proceeds from sale of building and land, net of selling expenses | $1,422 |
Discontinued_Operations_Assets3
Discontinued Operations, Assets Held for Sale, and Business Divestiture - Financial Results in Discontinued Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations, net of tax | ($736) | $292 | ||
Repair Group | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 0 | 0 | 0 | 1,339 |
Income (loss) before income tax provision | 1,259 | -136 | 1,160 | -467 |
Income tax (benefit) expense | 460 | -51 | 424 | -175 |
Income (loss) from discontinued operations, net of tax | $799 | ($85) | $736 | ($292) |