Document and Entity Information
Document and Entity Information | 9 Months Ended |
Jun. 30, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | SIFCO INDUSTRIES INC |
Entity Central Index Key | 90,168 |
Current Fiscal Year End Date | --09-30 |
Entity Filer Category | Smaller Reporting Company |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 5,595,779 |
Trading Symbol | SIF |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 30,167 | $ 31,004 | $ 92,942 | $ 87,240 |
Cost of goods sold | 26,599 | 28,009 | 81,546 | 78,574 |
Gross profit | 3,568 | 2,995 | 11,396 | 8,666 |
Selling, general and administrative expenses | 3,918 | 4,157 | 13,617 | 12,907 |
Asset impairment | 4,366 | 0 | 4,366 | 0 |
Amortization of intangible assets | 579 | 633 | 1,744 | 1,961 |
(Gain) loss on disposal of operating assets | 3 | 0 | (3) | 32 |
Operating loss | (5,298) | (1,795) | (8,328) | (6,234) |
Interest income | (12) | (9) | (42) | (41) |
Interest expense | 464 | 428 | 1,682 | 1,273 |
Foreign currency exchange loss (gain), net | (6) | (8) | 11 | 27 |
Other income, net | (110) | (107) | (324) | (322) |
Loss from operations before income tax expense (benefit) | (5,634) | (2,099) | (9,655) | (7,171) |
Income tax expense (benefit) | 568 | (1,049) | 812 | (3,224) |
Net loss | $ (6,202) | $ (1,050) | $ (10,467) | $ (3,947) |
Net loss per share | ||||
Basic (in dollars per share) | $ (1.13) | $ (0.19) | $ (1.91) | $ (0.72) |
Diluted (in dollars per share) | $ (1.13) | $ (0.19) | $ (1.91) | $ (0.72) |
Weighted-average number of common shares (basic) (in shares) | 5,499 | 5,466 | 5,480 | 5,460 |
Weighted-average number of common shares (diluted) (in shares) | 5,499 | 5,466 | 5,480 | 5,460 |
Consolidated Condensed Stateme3
Consolidated Condensed Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (6,202) | $ (1,050) | $ (10,467) | $ (3,947) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 1,132 | (443) | 329 | (128) |
Retirement plan liability adjustment, net of tax | 217 | 134 | 665 | 390 |
Interest rate swap agreement adjustment, net of tax | (1) | (50) | 30 | (50) |
Comprehensive loss | $ (4,854) | $ (1,409) | $ (9,443) | $ (3,735) |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,099 | $ 471 |
Receivables, net of allowance for doubtful accounts of $328 and $706, respectively | 26,408 | 25,158 |
Inventories, net | 23,798 | 28,496 |
Refundable income taxes | 319 | 1,773 |
Prepaid expenses and other current assets | 1,863 | 2,177 |
Assets held for sale | 1,447 | 0 |
Total current assets | 54,934 | 58,075 |
Property, plant and equipment, net | 42,219 | 48,958 |
Intangible assets, net | 7,131 | 11,138 |
Goodwill | 11,874 | 11,748 |
Other assets | 284 | 538 |
Total assets | 116,442 | 130,457 |
Current liabilities: | ||
Current maturities of long-term debt | 7,545 | 18,258 |
Revolving credit agreement | 20,387 | 12,751 |
Accounts payable | 14,048 | 14,520 |
Accrued liabilities | 5,325 | 5,234 |
Total current liabilities | 47,305 | 50,763 |
Long-term debt, net of current maturities | 6,241 | 7,623 |
Deferred income taxes | 3,144 | 2,929 |
Pension liability | 7,917 | 8,341 |
Other long-term liabilities | 458 | 431 |
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 – 5,596 at June 30, 2017 and 5,525 at September 30, 2016 | 5,596 | 5,525 |
Additional paid-in capital | 9,598 | 9,219 |
Retained earnings | 48,009 | 58,476 |
Accumulated other comprehensive loss | (11,826) | (12,850) |
Total shareholders’ equity | 51,377 | 60,370 |
Total liabilities and shareholders’ equity | $ 116,442 | $ 130,457 |
Consolidated Condensed Balance5
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 328 | $ 706 |
Serial preferred shares, no par value (in dollars per share) | ||
Serial preferred shares, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common shares, shares issued (in shares) | 5,596,000 | 5,525,000 |
Common shares, shares outstanding (in shares) | 5,596,000 | 5,525,000 |
Consolidated Condensed Stateme6
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (10,467) | $ (3,947) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 7,526 | 8,021 |
Amortization and write-off of debt issuance cost | 382 | 109 |
(Gain) loss on disposal of operating assets | (3) | 32 |
Asset impairment | 4,366 | 0 |
LIFO expense (benefit) | 204 | (144) |
Share transactions under company stock plan | 450 | (406) |
Purchase price inventory adjustment | 0 | 266 |
Other | 0 | (101) |
Other long-term liabilities | 295 | 201 |
Deferred income taxes | 185 | 619 |
Changes in operating assets and liabilities: | ||
Receivables | (1,062) | 6,660 |
Inventories | 4,595 | (1,555) |
Refundable taxes | 1,455 | (91) |
Prepaid expenses and other current assets | 626 | (268) |
Other assets | 255 | 32 |
Accounts payable | (1,172) | 2,534 |
Other accrued liabilities | (500) | (79) |
Accrued income and other taxes | 542 | (508) |
Net cash provided by operating activities | 7,677 | 11,375 |
Cash flows from investing activities: | ||
Acquisition of business | 0 | 270 |
Proceeds from disposal of operating assets | 70 | 0 |
Capital expenditures | (1,598) | (2,034) |
Net cash used for investing activities | (1,528) | (1,764) |
Cash flows from financing activities: | ||
Payments on long term debt | (13,659) | (3,866) |
Proceeds from revolving credit agreement | 63,628 | 35,533 |
Repayments of revolving credit agreement | (55,992) | (40,320) |
Payment of debt issue costs | (498) | 0 |
Short-term debt borrowings | 2,649 | 1,904 |
Short-term debt repayments | (1,650) | (2,728) |
Net cash used for financing activities | (5,522) | (9,477) |
Increase in cash and cash equivalents | 627 | 134 |
Cash and cash equivalents at the beginning of the period | 471 | 667 |
Effect of exchange rate changes on cash and cash equivalents | 1 | 18 |
Cash and cash equivalents at the end of the period | 1,099 | 819 |
Supplemental disclosure of cash flow information of operations: | ||
Cash paid for interest | (1,224) | (1,059) |
Cash refund for income taxes, net | $ 1,425 | $ 2,885 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2017 | |
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. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange for the period. 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 2016 Annual Report on Form 10-K. The year-end consolidated condensed balance sheet data was derived from audited financial statements and disclosures required by accounting principles generally accepted accounting in the United States ("U.S."). 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 2016 Annual Report on Form 10-K, with the exception of the following: Restructuring Costs On May 31, 2017, the Company approved the decision to close its Alliance, Ohio ("Alliance") manufacturing plant as disclosed in the June 1, 2017 Form 8-K, as amended on July 17, 2017. The closure is a result of decreased sales from a key customer, which led to the reduction in sales volumes at this location. This closure falls in line with management's key strategic initiatives to make organizational and operational changes needed to improve profitability. Orders after September 30, 2017 will be processed and manufactured by its Cleveland, Ohio ("Cleveland") location. Alliance will continue to manufacture products through September 30, 2017. As a result of the announcement of the decision to close Alliance, $ 4,430 non-cash costs were incurred, of which $4,366 relates to asset impairment discussed below and $ 64 accelerated depreciation of assets due to useful lives been reassessed as of June 30, 2017. The remaining estimated exit costs are to be expensed as incurred, which include workforce reduction costs and accelerated depreciation costs totaling approximately $ 413 . Asset Impairment The announcement of the decision to close Alliance resulted in a triggering event, requiring an interim impairment analysis to be performed by the Company. In accordance with Accounting Standard Codification ("ASC") 360 and ASC 350, the Company performed an interim impairment test of Alliance's goodwill and an impairment test of Alliance's long-lived assets. As required by ASC 360, an impairment loss shall be recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. The Company used May 31, 2017 as the triggering date to evaluate the carrying values and test for recoverability of the Alliance machinery and equipment, customer list and trade name. The fair value of the assets was estimated using Level 2 and Level 3 inputs based on the orderly liquidation value as determined by a third party appraisal (a decision to sell has not been determined) and undiscounted cash flows. As a result of the analysis, the Company recorded an asset impairment charge at Alliance of $ 4,366 , which is labeled as asset impairment in the consolidated condensed statement of operations; $ 2,077 of the total impairment charge related to machinery and equipment and the remaining $ 2,289 related to intangible assets. As noted above, the announcement of the decision to close Alliance and the transfer of future orders to the Cleveland plant resulted in the re-allocation of goodwill from the Alliance reporting unit to the Cleveland reporting unit. This triggering event requires an interim impairment test to be performed at the Cleveland reporting unit as of May 31, 2017 as required by ASC 350. The carrying value of the reporting unit, inclusive of assigned goodwill, was compared to its fair value using the market and income approach to estimate the fair value of this reporting unit. Significant assumptions inherent in the valuation methodologies for goodwill were employed and include, but are not limited to, prospective financial information, growth rates, terminal value and discount rates and requires the Company to make certain assumptions and estimates regarding industry economic factors and future profitability of its business. When performing the income and market approach for the reporting unit, SIFCO incorporated the use of projected financial information and a discount rate that was developed using market participant based assumptions. The cash flow projections are based on five-year financial forecasts developed by management that include revenue projections, capital spending trends, and investment in working capital to support anticipated revenue growth. The selected discount rate considers the risk and nature of the reporting unit's cash flows and ratios of return that market participants would require to invest their capital in our plant. Although the Company believes its assumptions are reasonable, actual results may vary significantly and may expose the Company to material impairment charges in the future. The methodology for determining fair values was consistent for the periods presented. Based on this quantitative test, we determined that the fair value (using Level 3 inputs) of this reporting unit exceeded the carrying value; as such there was no goodwill impairment. Asset Held for Sale As noted within the Company's 2016 Form 10-K, the Company's Irish subsidiary sold its operating business in June 2007, but retained ownership of its Cork, Ireland building. This property is subject to a lease arrangement with the acquirer of the business that expires in June 2027. At June 30, 2017, the Company has a formal plan to sell the Irish building which represents the assets held for sale in the consolidated condensed balance sheets. The Company expects to sell this asset within the next 12 months. C. Net Loss per Share The Company’s net loss per basic share has been computed based on the weighted-average number of common shares outstanding. Due to the net loss for each reporting period, zero restricted shares are included because the effect would be anti-dilutive. The dilutive effect of the Company’s restricted shares and performance shares were as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Net loss $ (6,202 ) $ (1,050 ) $ (10,467 ) $ (3,947 ) Weighted-average common shares outstanding (basic) 5,499 5,466 5,480 5,460 Effect of dilutive securities: Restricted shares — — — — Weighted-average common shares outstanding (diluted) 5,499 5,466 5,480 5,460 Net loss per share – basic: $ (1.13 ) $ (0.19 ) (1.91 ) (0.72 ) Net loss per share – diluted: $ (1.13 ) (0.19 ) $ (1.91 ) $ (0.72 ) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 98 38 93 23 D. Derivative Financial Instruments The Company entered an interest rate swap agreement on March 29, 2016 to reduce risk related to variable-rate debt, which was subject to changes in market rates of interest. The interest rate swap was designated as a cash flow hedge. The agreement was canceled as part of the debt modification on November 9, 2016, as further discussed in Note 4 - Debt. The Company accounted for the interest rate swap termination by recording the loss in accumulated other comprehensive loss as of December 31, 2016. The amount incurred in interest expense was nominal. As part of the new Credit Facility (described further in Note 5 - Debt, below) on November 9, 2016, the Company entered a new interest rate swap on November 30, 2016 to reduce risk related to the variable debt over the life of the new term loan. At June 30, 2017, the Company held one interest rate swap agreement with a notional amount of $ 4,302 . 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. At June 30, 2017 and September 30, 2016, the Company’s interest rate swap agreement qualified as a fully effective cash flow hedge against the Company’s variable-rate term note. The mark-to-market valuation was nominal and $ 30 liability at June 30, 2017 and September 30, 2016, respectively. E. Impact of Recently Issued Accounting Standards In May 2014, and as subsequently updated (Accounting Standard Update ("ASU") 2016-20 being most recent), the Financial Accounting Standards Board ("FASB") issued new accounting guidance that creates a single revenue recognition model, while clarifying the principles for recognizing revenue. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods. The Company will adopt the new guidance on October 1, 2018. The Company is executing a bottom up approach to analyze the standard's impact on its revenues by looking at historical policies and practices and identifying the differences from applying the new standard to its revenue streams. The Company has determined that many of its long-term agreements contain variable consideration clauses and is in the process of quantifying the impact to its consolidated condensed financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The standard requires a modified retrospective transition for capital and operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial adoption. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of ASU 2016-02 and has not yet determined its impact on its consolidated condensed financial statements. In March 2016, the FASB issued ASU 2016-09, which makes a number of changes meant to simplify and improve accounting for share-based payments. The ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has considered the potential implications of adoption of the ASU and due to the valuation allowance recorded at June 30, 2017 and September 30, 2016 in the U.S., the Company does not expect a material impact from a tax perspective. The Company is still evaluating other non-tax components it may have on its consolidated condensed financial statements. In October 2016, the FASB issued ASU 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact it may have on its consolidated condensed financial statements, together with evaluating the adoption date. In November 2016, the FASB issued ASU 2016-18 requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash would be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The Company is currently evaluating its plans regarding the adoption, but does not believe that this ASU would have a material impact to the consolidated condensed statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations, which clarified existing guidance on the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted and the guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted as of the beginning of the annual reporting period in which the ASU was issued. The Company does not expect the adoption of this ASU to have a material impact on its consolidated condensed financial statements. In March 2017, the FASB issued ASU 2017-07, which relates to pension related costs that require an entity to report the following service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs. The other components of the net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside of any subtotal of operating income. Additionally, only the service cost component will be eligible for capitalization in assets. The ASU is effective for October 1, 2018, early adoption is permitted and the ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the income statement and prospectively for the capitalization of the service cost component. The amendment allows for a practical expedient that permits an employer to use the amounts disclosed in its pension and other post-retirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company would need to disclose if the practical expedient was used. The Company is currently evaluating the impact it may have on its consolidated condensed financial statements and it does not plan to early adopt the ASU. In May 2017, the FASB issued ASU 2017-09, which clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on October 1, 2018, with early adoption permitted. This new guidance is not expected to have an impact on the Company’s consolidated condensed financial statements as it is not the Company’s practice to change either the terms or conditions of share-based payment awards once they are granted. F. Recently Adopted Accounting Standards In January 2017, the FASB issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The Company performs Step 1 of the annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount exceeds the fair value, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU must be applied prospectively and is effective for any annual and interim goodwill impairment test in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company adopted the standard in its second quarter of fiscal 2017. |
Inventories
Inventories | 9 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of: June 30, September 30, Raw materials and supplies $ 6,580 $ 7,724 Work-in-process 8,826 10,459 Finished goods 8,392 10,313 Total inventories $ 23,798 $ 28,496 Inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (“LIFO”) method for 36% and 44% of the Company’s inventories at June 30, 2017 and September 30, 2016, 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 $8,231 and $8,026 higher than reported at June 30, 2017 and September 30, 2016 , respectively. |
Intangibles
Intangibles | 9 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles The Company’s intangible assets by major asset class subject to amortization as of: June 30, 2017 Weighted Average Life, Original Cost Accumulated Amortization Impairment Currency Translation Net Book Value Intangible assets: Trade name 8 years $ 2,776 $ 1,496 $ 310 $ 3 $ 973 Non-compete agreement 5 years 1,600 1,579 — — 21 Technology asset 5 years 1,869 643 — 7 1,233 Customer relationships 10 years 15,568 8,701 1,979 16 4,904 Total intangible assets $ 21,813 $ 12,419 $ 2,289 $ 26 $ 7,131 September 30, 2016 Intangible assets: Trade name 8 years $ 2,776 $ 1,240 $ — $ 9 $ 1,545 Non-compete agreement 5 years 1,600 1,547 — — 53 Below market lease 5 years 900 900 — — — Technology asset 5 years 1,869 389 — 37 1,517 Customer relationships 10 years 15,568 7,571 — 26 8,023 Total intangible assets $ 22,713 $ 11,647 $ — $ 72 $ 11,138 The amortization expense on identifiable intangible assets for the nine months ended fiscal 2017 and 2016 was $ 1,744 and $ 1,961 , respectively and $ 579 and $633 for the three months ended 2017 and 2016, respectively. Amortization expense associated with the identified intangible assets is expected to be as follows: Amortization Expense Fiscal year 2017 (July 1 to September 30, 2017) $ 416 Fiscal year 2018 1,660 Fiscal year 2019 1,643 Fiscal year 2020 1,503 Fiscal year 2021 1,004 See Note 1 for further discussion on asset impairment charges incurred as of June 30, 2017 due to the approval for the decision to close Alliance. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: June 30, September 30, Foreign currency translation adjustment $ (5,295 ) $ (5,623 ) Retirement plan liability adjustment, net of tax (6,531 ) (7,197 ) Interest rate swap agreement adjustment, net of tax — (30 ) Total accumulated other comprehensive loss $ (11,826 ) $ (12,850 ) |
Debt
Debt | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of: June 30, September 30, Revolving credit agreement $ 20,387 $ 12,751 Foreign subsidiary borrowings 9,158 9,540 Capital lease obligations 377 153 Term loan 4,302 16,429 Less: unamortized debt issuance cost (51 ) (241 ) Term loan less unamortized debt issuance cost 4,251 16,188 Total debt 34,173 38,632 Less – current maturities (27,932 ) (31,009 ) Total long-term debt $ 6,241 $ 7,623 On November 9, 2016, the Company entered into an Amended and Restated Credit and Security Agreement ("Credit Facility") with its Lender. The Credit Facility matures on June 25, 2020 and consisted of secured loans in an aggregate principal amount of up to $39,871 . The Credit Facility was comprised of (i) a senior secured revolving credit facility of a maximum borrowing amount of $ 35,000 , including swing line loans and letters of credit provided by the Lender and (ii) senior secured term loan facility in the amount of $ 4,871 (the "Term Facility"). The new Term Facility is repayable in monthly installments of $ 81 , which commenced December 1, 2016. The terms of the Credit Facility contain both a lockbox arrangement and subjective acceleration clause. As a result, the amounts outstanding on the revolving credit facility are classified as a short-term liability. The amounts borrowed under the Amended and Restated Agreement were used to repay the amounts outstanding under the Company's 2015 Credit Agreement, for working capital, for general corporate purposes and to pay fees and expenses associated with this transaction. In connection with entering into the Credit Facility, the Company terminated its interest rate swap agreement with the Lender, as referenced in Note 1 - D. Derivative Financial Instruments. The Company entered into its First Amendment Agreement ("First Amendment") to the Credit Facility on February 16, 2017. The First Amendment assigned its Lender as Administrative Agent and assigned a portion of its Credit Facility to a participating Lender. Borrowings bear interest at the LIBOR rate, prime rate, or the eurocurrency reference rate depending on the type of loan requested by the Company, in each case, plus the applicable margin as set forth in the Amended and Restated Agreement. The revolver has a rate based on LIBOR plus a 3.75% spread and a prime rate, which resulted in a weighted average rate of 4.6% at June 30, 2017 and the term loan has a rate of 5.3% at June 30, 2017, which was based on LIBOR plus a 4.25% spread. This rate becomes an effective fixed rate of 5.8% after giving effect to the interest rate swap agreement. There is also a commitment fee ranging from 0.15% to 0.375% to be incurred on the unused balance. Under the Company's Credit Facility, the Company is subject to certain customary loan covenants. These include, without limitation, covenants that require maintenance of certain specified financial ratios, including that the Company meeting a minimum EBITDA and the maintenance of a minimum fixed charge coverage ratio to commence on September 30, 2017. On August 4, 2017, the Company entered into its Second Amendment Agreement ("Second Amendment") with its lender to (i) amend certain definitions within its Credit Facility to, among other things, effect the changes described herein and to reset the Fixed Charge Coverage Ratio (as defined in the Credit Facility) to build to a trailing four quarters in each of the fiscal 2018 quarters, commencing with the quarter ended December 31, 2017; (ii) replace certain of its financial covenants outlined in the description of Credit Facility and amend its financial covenants with a revised minimum EBITDA for the four fiscal quarters ending September 30, 2017 and to maintain a fixed charge coverage ratio commencing on December 31, 2017; (iii) reduce its maximum revolving amount of $35,000 to $30,000 ; and (iv) the Company must use its cash proceeds from the sale of the Irish building discussed in Note 1 Asset Held for Sale to reduce the Term Facility by $ 700 and use the remaining proceeds to reduce the revolver. The Second Amendment, as described above, waived compliance requirements with its loan covenants as of June 30, 2017. On June 26, 2015, the Company entered a Credit and Security Agreement (the "2015 Credit Agreement") with its Lender. The credit facility was comprised of (i) a five -year revolving credit facility with a maximum borrowing amount of up to $25,000 , which reduced to $20,000 on January 1, 2016, and (ii) a five -year term loan of $20,000 . Amounts borrowed under the credit facility were secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 65% of the stock of its non-U.S. subsidiaries. The term loan was repayable in quarterly installments of $714 starting September 30, 2015. The amounts borrowed under the 2015 Credit Agreement were used to repay the Company's previous revolver and term note, to fund the acquisition of the Maniago, Italy location and for working capital and general corporate purposes. The 2015 Credit Agreement also had an accordion feature, which allowed the Company to increase the availability by up to $ 15,000 upon consent of the existing lenders or upon additional lenders being joined to the facility. Borrowings bore interest at the LIBOR rate, prime rate, or the eurocurrency reference rate depending on the type of loan requested by the Company, in each case, plus the applicable margin as set forth in the Credit Agreement. Foreign subsidiary borrowings As of June 30, 2017 and September 30, 2016, the total foreign debt borrowings (excluding capital leases) were $ 9,158 and $ 9,540 , respectively, of which $ 6,481 and $5,833 , respectively is the current portion. Current debt as of June 30, 2017 and September 30, 2016, consist of $ 3,856 and $ 3,262 of short-term borrowings, $ 1,483 and $ 2,014 is the current portion of long-term debt, and $ 1,142 and $ 557 of factoring. Interest rates on the term note are based on Euribor rates which range from 1.0% to 4.0% . The factoring programs are uncommitted, whereby the Company offers receivables for sale to an unaffiliated financial institution, which are then subject to acceptance by the unaffiliated financial institution. Following the sale and transfer of the receivables to the unaffiliated financial institution, the receivables are not isolated from the Company, and effective control of the receivables is not passed to the unaffiliated financial institution, which does not have the right to pledge or sell the receivables. The Company accounts for the pledge of receivables under this agreement as short-term debt and continues to carry the receivables on its consolidated condensed balance sheet. The carrying value of the receivables pledged as collateral were $ 1,790 and $ 1,156 at June 30, 2017 and September 30, 2016. Future payment schedule Payments on long-term debt under the Credit Facility and foreign subsidiary borrowings (excluding capital lease obligations, see below) for the remainder of this fiscal year and each of the four succeeding fiscal years are as follows: Minimum long-term debt payments 2017 (July 1 to September 30, 2017) $ 671 2018 2,269 2019 2,153 2020 3,117 2021 256 Total minimum long-term debt payments $ 8,466 Debt issuance costs The Company incurred debt issuance costs related to its 2015 Credit Agreement in the amount of $724 . However, with the Credit Facility, the Company incurred an additional $ 498 of costs in November 2016 and wrote off $241 of debt issuance costs as of December 31, 2016 due to debt modification accounting for deferred financing costs as it relates to the term note, which is included in interest expense in the accompanying consolidated condensed financial statements. Total debt issuance cost in the amount of $786 is split between the Term Facility and the revolving credit facility. The portion noted above within debt table relates to the Term Facility in the amount of $61 , net of amortization of $ 10 at June 30, 2017. The remaining $ 725 of debt issuance cost relates to the revolving credit facility. This portion is shown in the consolidated condensed balance sheet as a deferred charge in other current assets, which was reclassed from other long-term assets due to the classification of the revolving credit facility noted above, net of amortization of $ 232 at June 30, 2017. Capital leases The Company entered into new capital leases for equipment in the first quarter of fiscal 2017. The minimum rental commitments under non-cancelable leases are for the remainder of this fiscal year and each of the succeeding fiscal years are as follows: Capital Leases 2017 (July 1 to September 30, 2017) $ 27 2018 123 2019 113 2020 66 2021 66 Thereafter 15 Total minimum lease payments $ 410 Less: Amount representing interest $ (33 ) Present value of minimum lease payments $ 377 Amortization of the cost of equipment under capital leases is included in depreciation expense. Assets recorded under capital leases consist of the following: June 30, September 30, Machinery and equipment $ 541 $ 250 Accumulated depreciation (131 ) (60 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2017 | |
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 2017 was (10)% , compared with 45% for the same period of fiscal 2016. This decrease is primarily attributable to year-to-date U.S. loss with no tax benefit due to a valuation allowance in fiscal 2017. Additionally, in fiscal 2016, the effective tax rate was higher in comparison to fiscal 2017 driven by discrete tax benefits of $ 568 primarily related to tax legislation enacted during the first quarter of fiscal 2016, applied against a year-to-date loss. The effective tax rate differs from the U.S. federal statutory rate due primarily to the valuation allowance against the Company's U.S. deferred tax assets and income in foreign jurisdictions that are taxed at different rates that the U.S. statutory tax rate. The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland, Italy, and various state and local jurisdictions. The Company believes it has appropriate support for its federal income tax returns. |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans The Company and certain of its subsidiaries sponsor defined benefit pension plans covering some of its employees. The components of net periodic benefit cost of the Company’s defined benefit plans are as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Service cost $ 78 $ 69 $ 235 $ 209 Interest cost 221 256 662 767 Expected return on plan assets (404 ) (407 ) (1,211 ) (1,222 ) Amortization of net loss 215 210 646 630 Net periodic cost $ 110 $ 128 $ 332 $ 384 During the nine months ended June 30, 2017 and 2016, the Company made no contributions to its defined benefit pension plans. The Company has carryover balances from previous periods that have been available for use as a credit to reduce the amount of contributions that the Company is required to make to certain defined benefit plans in fiscal 2017. The Company's ability to elect to use such carryover balance will be determined based on the actual funded status of each defined benefit pension plan relative to the plan's minimum regulatory funding requirements. The Company does not anticipate making cash contributions above the minimum funding requirement to fund its defined benefit pension plans during the balance of fiscal 2017. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company, with the approval of its shareholders on January 25, 2017, amended and restated its 2007 Long-Term Incentive Plan ("2007 Plan") to the 2016 Long-Term Incentive Plan ("2016 Plan"). The amendment increased the aggregate number of shares that may be awarded under the 2016 Plan to 646 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 2016 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 both plans 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 nine months of fiscal 2017, one award for 10 performance shares under the 2007 Plan vested, of which 4 performance shares were tendered back to the Company to cover payroll taxes. For the fiscal 2017 award, the Company granted 107 shares under the 2007 Plan to certain key employees. The award was split into two tranches, 69 performance shares and 38 shares of time-based restricted shares, with a grant date fair value of $7.45 . The award vests over three years . 24 performance shares and 7 restricted shares were forfeited. 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 or three years. During the first nine months of fiscal 2017, the Company granted its non-employee directors 33 restricted shares under the 2016 Plan, with a grant date fair value of $8.05 , which vest over one year . One award for 29 restricted shares vested. If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 391 shares that remain available for award at June 30, 2017 . 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 $484 expense and $236 benefit during the first nine months of fiscal 2017 and 2016, respectively and expense of $139 and $ 228 for the third quarter of fiscal 2017 and 2016, respectively. As of June 30, 2017 , there was $962 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2007 Plan. The Company expects to recognize this cost over the next 1.8 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company may be involved in ordinary, routine legal actions. The Company cannot reasonably estimate future costs, if any, related to these matters; however, it does not believe any such matters are material to its financial condition or results of operations. The Company maintains various liability insurance coverages to protect its assets from losses arising out of or involving activities associated with ongoing and normal business operations; however, it is possible that the Company’s future operating results could be affected by future costs of litigation. The Company is currently a defendant in a class action lawsuit filed in the Superior Court of California, County of Orange, alleging violations of California wage-and-hour laws, rules and regulations pertaining primarily to failure to accurately calculate and pay hourly and overtime wages; failure to provide meal periods; failure to authorize and permit rest periods; failure to indemnify necessary expenditures; failure to timely pay wages; and unfair competition. Although the Company records reserves for legal disputes and other matters in accordance with generally accepted accounting principles in the United States of America, ("GAAP"), the ultimate outcomes of these types of matters are inherently uncertain. Actual results may differ significantly from current estimates. Given the current status of this matter, the Company has not concluded that a loss is probable, as such an estimate of a loss has not been recorded. The Company's Cleveland, Ohio location had an Occupational Safety and Health Administration ("OSHA") inspection at the facility on September 1, 2016. This inspection resulted in OSHA issuing citations to the location. Since the inspection, SIFCO has abated or is in the process of abating all issues identified. These findings resulted in penalties to be assessed in the amount of $ 127 as of March 31, 2017. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 4, 2017, the Company entered into its Second Amendment with its lender. See Note 5 Debt for further discussion on the Second Amendment. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2017 | |
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. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange for the period. 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 2016 Annual Report on Form 10-K. The year-end consolidated condensed balance sheet data was derived from audited financial statements and disclosures required by accounting principles generally accepted accounting in the United States ("U.S."). 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. |
Restructuring Costs | Restructuring Costs On May 31, 2017, the Company approved the decision to close its Alliance, Ohio ("Alliance") manufacturing plant as disclosed in the June 1, 2017 Form 8-K, as amended on July 17, 2017. The closure is a result of decreased sales from a key customer, which led to the reduction in sales volumes at this location. This closure falls in line with management's key strategic initiatives to make organizational and operational changes needed to improve profitability. Orders after September 30, 2017 will be processed and manufactured by its Cleveland, Ohio ("Cleveland") location. Alliance will continue to manufacture products through September 30, 2017. As a result of the announcement of the decision to close Alliance, $ 4,430 non-cash costs were incurred, of which $4,366 relates to asset impairment discussed below and $ 64 accelerated depreciation of assets due to useful lives been reassessed as of June 30, 2017. The remaining estimated exit costs are to be expensed as incurred, which include workforce reduction costs and accelerated depreciation costs totaling approximately $ 413 . |
Asset Impairment | Asset Impairment The announcement of the decision to close Alliance resulted in a triggering event, requiring an interim impairment analysis to be performed by the Company. In accordance with Accounting Standard Codification ("ASC") 360 and ASC 350, the Company performed an interim impairment test of Alliance's goodwill and an impairment test of Alliance's long-lived assets. As required by ASC 360, an impairment loss shall be recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. The Company used May 31, 2017 as the triggering date to evaluate the carrying values and test for recoverability of the Alliance machinery and equipment, customer list and trade name. The fair value of the assets was estimated using Level 2 and Level 3 inputs based on the orderly liquidation value as determined by a third party appraisal (a decision to sell has not been determined) and undiscounted cash flows. As a result of the analysis, the Company recorded an asset impairment charge at Alliance of $ 4,366 , which is labeled as asset impairment in the consolidated condensed statement of operations; $ 2,077 of the total impairment charge related to machinery and equipment and the remaining $ 2,289 related to intangible assets. As noted above, the announcement of the decision to close Alliance and the transfer of future orders to the Cleveland plant resulted in the re-allocation of goodwill from the Alliance reporting unit to the Cleveland reporting unit. This triggering event requires an interim impairment test to be performed at the Cleveland reporting unit as of May 31, 2017 as required by ASC 350. The carrying value of the reporting unit, inclusive of assigned goodwill, was compared to its fair value using the market and income approach to estimate the fair value of this reporting unit. Significant assumptions inherent in the valuation methodologies for goodwill were employed and include, but are not limited to, prospective financial information, growth rates, terminal value and discount rates and requires the Company to make certain assumptions and estimates regarding industry economic factors and future profitability of its business. When performing the income and market approach for the reporting unit, SIFCO incorporated the use of projected financial information and a discount rate that was developed using market participant based assumptions. The cash flow projections are based on five-year financial forecasts developed by management that include revenue projections, capital spending trends, and investment in working capital to support anticipated revenue growth. The selected discount rate considers the risk and nature of the reporting unit's cash flows and ratios of return that market participants would require to invest their capital in our plant. Although the Company believes its assumptions are reasonable, actual results may vary significantly and may expose the Company to material impairment charges in the future. The methodology for determining fair values was consistent for the periods presented. Based on this quantitative test, we determined that the fair value (using Level 3 inputs) of this reporting unit exceeded the carrying value; as such there was no goodwill impairment. |
Net Loss per Share | Net Loss per Share The Company’s net loss per basic share has been computed based on the weighted-average number of common shares outstanding. |
Derivative Financial Instruments | Derivative Financial Instruments The Company entered an interest rate swap agreement on March 29, 2016 to reduce risk related to variable-rate debt, which was subject to changes in market rates of interest. The interest rate swap was designated as a cash flow hedge. |
Impact of Recently Issued Accounting Standards and Recently Adopted Accounting Standards | Impact of Recently Issued Accounting Standards In May 2014, and as subsequently updated (Accounting Standard Update ("ASU") 2016-20 being most recent), the Financial Accounting Standards Board ("FASB") issued new accounting guidance that creates a single revenue recognition model, while clarifying the principles for recognizing revenue. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods. The Company will adopt the new guidance on October 1, 2018. The Company is executing a bottom up approach to analyze the standard's impact on its revenues by looking at historical policies and practices and identifying the differences from applying the new standard to its revenue streams. The Company has determined that many of its long-term agreements contain variable consideration clauses and is in the process of quantifying the impact to its consolidated condensed financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers. The standard requires a modified retrospective transition for capital and operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial adoption. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of ASU 2016-02 and has not yet determined its impact on its consolidated condensed financial statements. In March 2016, the FASB issued ASU 2016-09, which makes a number of changes meant to simplify and improve accounting for share-based payments. The ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has considered the potential implications of adoption of the ASU and due to the valuation allowance recorded at June 30, 2017 and September 30, 2016 in the U.S., the Company does not expect a material impact from a tax perspective. The Company is still evaluating other non-tax components it may have on its consolidated condensed financial statements. In October 2016, the FASB issued ASU 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This ASU will be effective for the Company for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact it may have on its consolidated condensed financial statements, together with evaluating the adoption date. In November 2016, the FASB issued ASU 2016-18 requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash would be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amendment is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods. Early adoption is permitted. The Company is currently evaluating its plans regarding the adoption, but does not believe that this ASU would have a material impact to the consolidated condensed statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations, which clarified existing guidance on the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted and the guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017 with early adoption permitted as of the beginning of the annual reporting period in which the ASU was issued. The Company does not expect the adoption of this ASU to have a material impact on its consolidated condensed financial statements. In March 2017, the FASB issued ASU 2017-07, which relates to pension related costs that require an entity to report the following service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs. The other components of the net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside of any subtotal of operating income. Additionally, only the service cost component will be eligible for capitalization in assets. The ASU is effective for October 1, 2018, early adoption is permitted and the ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the income statement and prospectively for the capitalization of the service cost component. The amendment allows for a practical expedient that permits an employer to use the amounts disclosed in its pension and other post-retirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. The Company would need to disclose if the practical expedient was used. The Company is currently evaluating the impact it may have on its consolidated condensed financial statements and it does not plan to early adopt the ASU. In May 2017, the FASB issued ASU 2017-09, which clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on October 1, 2018, with early adoption permitted. This new guidance is not expected to have an impact on the Company’s consolidated condensed financial statements as it is not the Company’s practice to change either the terms or conditions of share-based payment awards once they are granted. F. Recently Adopted Accounting Standards In January 2017, the FASB issued ASU 2017-04, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The Company performs Step 1 of the annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount exceeds the fair value, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU must be applied prospectively and is effective for any annual and interim goodwill impairment test in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company adopted the standard in its second quarter of fiscal 2017. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of dilutive effect of company's restricted shares and performance shares | The dilutive effect of the Company’s restricted shares and performance shares were as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Net loss $ (6,202 ) $ (1,050 ) $ (10,467 ) $ (3,947 ) Weighted-average common shares outstanding (basic) 5,499 5,466 5,480 5,460 Effect of dilutive securities: Restricted shares — — — — Weighted-average common shares outstanding (diluted) 5,499 5,466 5,480 5,460 Net loss per share – basic: $ (1.13 ) $ (0.19 ) (1.91 ) (0.72 ) Net loss per share – diluted: $ (1.13 ) (0.19 ) $ (1.91 ) $ (0.72 ) Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 98 38 93 23 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of: June 30, September 30, Raw materials and supplies $ 6,580 $ 7,724 Work-in-process 8,826 10,459 Finished goods 8,392 10,313 Total inventories $ 23,798 $ 28,496 |
Intangibles (Tables)
Intangibles (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets by Major Class Subject to Amortization | The Company’s intangible assets by major asset class subject to amortization as of: June 30, 2017 Weighted Average Life, Original Cost Accumulated Amortization Impairment Currency Translation Net Book Value Intangible assets: Trade name 8 years $ 2,776 $ 1,496 $ 310 $ 3 $ 973 Non-compete agreement 5 years 1,600 1,579 — — 21 Technology asset 5 years 1,869 643 — 7 1,233 Customer relationships 10 years 15,568 8,701 1,979 16 4,904 Total intangible assets $ 21,813 $ 12,419 $ 2,289 $ 26 $ 7,131 September 30, 2016 Intangible assets: Trade name 8 years $ 2,776 $ 1,240 $ — $ 9 $ 1,545 Non-compete agreement 5 years 1,600 1,547 — — 53 Below market lease 5 years 900 900 — — — Technology asset 5 years 1,869 389 — 37 1,517 Customer relationships 10 years 15,568 7,571 — 26 8,023 Total intangible assets $ 22,713 $ 11,647 $ — $ 72 $ 11,138 |
Expected Future Amortization Expense | Amortization expense associated with the identified intangible assets is expected to be as follows: Amortization Expense Fiscal year 2017 (July 1 to September 30, 2017) $ 416 Fiscal year 2018 1,660 Fiscal year 2019 1,643 Fiscal year 2020 1,503 Fiscal year 2021 1,004 |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: June 30, September 30, Foreign currency translation adjustment $ (5,295 ) $ (5,623 ) Retirement plan liability adjustment, net of tax (6,531 ) (7,197 ) Interest rate swap agreement adjustment, net of tax — (30 ) Total accumulated other comprehensive loss $ (11,826 ) $ (12,850 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of: June 30, September 30, Revolving credit agreement $ 20,387 $ 12,751 Foreign subsidiary borrowings 9,158 9,540 Capital lease obligations 377 153 Term loan 4,302 16,429 Less: unamortized debt issuance cost (51 ) (241 ) Term loan less unamortized debt issuance cost 4,251 16,188 Total debt 34,173 38,632 Less – current maturities (27,932 ) (31,009 ) Total long-term debt $ 6,241 $ 7,623 |
Schedule of Payments of Long-term Debt | Payments on long-term debt under the Credit Facility and foreign subsidiary borrowings (excluding capital lease obligations, see below) for the remainder of this fiscal year and each of the four succeeding fiscal years are as follows: Minimum long-term debt payments 2017 (July 1 to September 30, 2017) $ 671 2018 2,269 2019 2,153 2020 3,117 2021 256 Total minimum long-term debt payments $ 8,466 |
Schedule of Minimum Rental Commitments Under Non-Cancelable Capital Leases | The minimum rental commitments under non-cancelable leases are for the remainder of this fiscal year and each of the succeeding fiscal years are as follows: Capital Leases 2017 (July 1 to September 30, 2017) $ 27 2018 123 2019 113 2020 66 2021 66 Thereafter 15 Total minimum lease payments $ 410 Less: Amount representing interest $ (33 ) Present value of minimum lease payments $ 377 |
Schedule of Assets Under Capital Leases | Assets recorded under capital leases consist of the following: June 30, September 30, Machinery and equipment $ 541 $ 250 Accumulated depreciation (131 ) (60 ) |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [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 Nine Months Ended 2017 2016 2017 2016 Service cost $ 78 $ 69 $ 235 $ 209 Interest cost 221 256 662 767 Expected return on plan assets (404 ) (407 ) (1,211 ) (1,222 ) Amortization of net loss 215 210 646 630 Net periodic cost $ 110 $ 128 $ 332 $ 384 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Restructuring Costs and Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | |||||
Non-cash restructuring costs incurred | $ 4,430 | ||||
Asset impairment | $ 4,366 | $ 0 | 4,366 | $ 0 | |
Accelerated depreciation of assets | 64 | ||||
Estimated exit costs | 413 | ||||
Impairment of machinery and equipment | 2,077 | ||||
Impairment of intangible assets | $ 2,289 | $ 0 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Net loss | $ (6,202) | $ (1,050) | $ (10,467) | $ (3,947) |
Weighted-average common shares outstanding (basic) (in shares) | 5,499,000 | 5,466,000 | 5,480,000 | 5,460,000 |
Effect of dilutive securities: | ||||
Weighted-average common shares outstanding (diluted) (in shares) | 5,499,000 | 5,466,000 | 5,480,000 | 5,460,000 |
Net loss per share - basic (in dollars per share) | $ (1.13) | $ (0.19) | $ (1.91) | $ (0.72) |
Net loss per share - diluted (in dollars per share) | $ (1.13) | $ (0.19) | $ (1.91) | $ (0.72) |
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares) | 98,000 | 38,000 | 93,000 | 23,000 |
Restricted Stock | ||||
Effect of dilutive securities: | ||||
Restricted shares (in shares) | 0 | 0 | 0 | 0 |
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares) | 0 | 0 | 0 | 0 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Derivative Financial Instruments (Details) - Interest Rate Swap $ in Thousands | Jun. 30, 2017USD ($)instrument | Sep. 30, 2016USD ($) |
Derivative [Line Items] | ||
Number of interest rate swaps | instrument | 1 | |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Interest rate swap notional amount | $ 4,302 | |
Interest rate swap fair value, liability | $ 0 | $ 30 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 6,580 | $ 7,724 |
Work-in-process | 8,826 | 10,459 |
Finished goods | 8,392 | 10,313 |
Total inventories | $ 23,798 | $ 28,496 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Percentage of inventories determined using LIFO method | 36.00% | 44.00% |
Additional amount that would have been reported in inventory if FIFO method had been used | $ 8,231 | $ 8,026 |
Intangibles - Intangible Assets
Intangibles - Intangible Assets by Major Class Subject to Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Original Cost | $ 21,813 | $ 22,713 |
Accumulated Amortization | 12,419 | 11,647 |
Impairment | 2,289 | 0 |
Currency Translation | 26 | 72 |
Net Book Value | $ 7,131 | $ 11,138 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life, | 8 years | 8 years |
Original Cost | $ 2,776 | $ 2,776 |
Accumulated Amortization | 1,496 | 1,240 |
Impairment | 310 | 0 |
Currency Translation | 3 | 9 |
Net Book Value | $ 973 | $ 1,545 |
Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life, | 5 years | 5 years |
Original Cost | $ 1,600 | $ 1,600 |
Accumulated Amortization | 1,579 | 1,547 |
Impairment | 0 | 0 |
Currency Translation | 0 | 0 |
Net Book Value | $ 21 | $ 53 |
Below market lease | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life, | 5 years | |
Original Cost | $ 900 | |
Accumulated Amortization | 900 | |
Impairment | 0 | |
Currency Translation | 0 | |
Net Book Value | $ 0 | |
Technology asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life, | 5 years | 5 years |
Original Cost | $ 1,869 | $ 1,869 |
Accumulated Amortization | 643 | 389 |
Impairment | 0 | 0 |
Currency Translation | 7 | 37 |
Net Book Value | $ 1,233 | $ 1,517 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life, | 10 years | 10 years |
Original Cost | $ 15,568 | $ 15,568 |
Accumulated Amortization | 8,701 | 7,571 |
Impairment | 1,979 | 0 |
Currency Translation | 16 | 26 |
Net Book Value | $ 4,904 | $ 8,023 |
Intangibles - Additional Inform
Intangibles - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 579 | $ 633 | $ 1,744 | $ 1,961 |
Intangibles - Expected Future A
Intangibles - Expected Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Fiscal year 2017 (July 1 to September 30, 2017) | $ 416 |
Fiscal year 2018 | 1,660 |
Fiscal year 2019 | 1,643 |
Fiscal year 2020 | 1,503 |
Fiscal year 2021 | $ 1,004 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total shareholders' equity | $ 51,377 | $ 60,370 |
Foreign currency translation adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total shareholders' equity | (5,295) | (5,623) |
Retirement plan liability adjustment, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total shareholders' equity | (6,531) | (7,197) |
Interest rate swap agreement adjustment, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total shareholders' equity | 0 | (30) |
Total accumulated other comprehensive loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total shareholders' equity | $ (11,826) | $ (12,850) |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 34,173 | $ 38,632 |
Less – current maturities | (27,932) | (31,009) |
Total long-term debt | 6,241 | 7,623 |
Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Total debt | 377 | 153 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 4,251 | 16,188 |
Long-term debt, gross | 4,302 | 16,429 |
Less: unamortized debt issuance cost | (51) | (241) |
Foreign Subsidiary Borrowings | ||
Debt Instrument [Line Items] | ||
Total debt | 9,158 | 9,540 |
Less – current maturities | (6,481) | (5,833) |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt | $ 20,387 | $ 12,751 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Nov. 09, 2016 | Jun. 26, 2015 | Dec. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2018 | Aug. 04, 2017 | Aug. 03, 2017 | Nov. 30, 2016 | Sep. 30, 2016 | Jan. 01, 2016 |
Line of Credit Facility [Line Items] | |||||||||||
Repayments of Long-term Debt | $ 13,659,000 | $ 3,866,000 | |||||||||
Outstanding borrowings | 8,466,000 | ||||||||||
Foreign debt borrowings, current | 27,932,000 | $ 31,009,000 | |||||||||
Revolving credit agreement | 20,387,000 | 12,751,000 | |||||||||
Foreign debt borrowings, long-term debt, current portion | 7,545,000 | 18,258,000 | |||||||||
Foreign Subsidiary Borrowings | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Outstanding borrowings | 9,158,000 | 9,540,000 | |||||||||
Foreign debt borrowings, current | 6,481,000 | 5,833,000 | |||||||||
Revolving credit agreement | 3,856,000 | 3,262,000 | |||||||||
Foreign debt borrowings, long-term debt, current portion | 1,483,000 | 2,014,000 | |||||||||
Foreign debt borrowings, factoring payable, current | 1,142,000 | 557,000 | |||||||||
Receivables pledged as collateral, carrying value | $ 1,790,000 | $ 1,156,000 | |||||||||
Euro Interbank Offered Rate (Euribor) | Minimum | Foreign Subsidiary Borrowings | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Euribor variable interest rates | 1.00% | ||||||||||
Euro Interbank Offered Rate (Euribor) | Maximum | Foreign Subsidiary Borrowings | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Euribor variable interest rates | 4.00% | ||||||||||
Term Loan | Forecast | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Repayments of Long-term Debt | $ 700,000 | ||||||||||
Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Revolving credit facility, maximum borrowing capacity | $ 39,871,000 | ||||||||||
Debt issuance costs incurred | $ 498,000 | ||||||||||
Debt issuance costs related to the term loan and revolving credit facility, gross | $ 786,000 | ||||||||||
Credit Facility | Term Loan | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Issued amount of debt | 4,871,000 | ||||||||||
Installment payment | $ 81,000 | ||||||||||
Weighted average interest rate, term loan | 5.30% | ||||||||||
Fixed interest rate after effect of interest rate swap | 5.80% | ||||||||||
Debt issuance costs incurred | $ 61,000 | ||||||||||
Accumulated amortization of debt issuance costs | $ 10,000 | ||||||||||
Credit Facility | Term Loan | London Interbank Offered Rate (LIBOR) | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on LIBOR | 4.25% | ||||||||||
Credit Facility | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Revolving credit facility, maximum borrowing capacity | $ 35,000,000 | ||||||||||
Weighted average interest rate, revolving credit facility | 4.60% | ||||||||||
Revolving line of credit, debt Issuance costs incurred, gross | $ 725,000 | ||||||||||
Revolving line of credit, accumulated amortization of debt issuance costs | $ 232,000 | ||||||||||
Credit Facility | Line of Credit | Minimum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment fee percentage | 0.15% | ||||||||||
Credit Facility | Line of Credit | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Commitment fee percentage | 0.375% | ||||||||||
Credit Facility | Line of Credit | London Interbank Offered Rate (LIBOR) | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on LIBOR | 3.75% | ||||||||||
Second Amendment | Line of Credit | Subsequent Event | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Revolving credit facility, maximum borrowing capacity | $ 30,000,000 | $ 35,000,000 | |||||||||
2015 Credit Agreement | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt issuance costs incurred | $ 724,000 | ||||||||||
Write off of deferred debt issuance cost due to debt modification | $ 241,000 | ||||||||||
2015 Credit Agreement | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 | $ 20,000,000 | |||||||||
Debt agreement term | 5 years | ||||||||||
Percentage of stock of non-U.S. subsidiaries pledged | 65.00% | ||||||||||
Accordion feature, amount of increase in borrowing capacity | $ 15,000,000 | ||||||||||
2015 Credit Agreement | Term Loan | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Issued amount of debt | 20,000,000 | ||||||||||
Installment payment | $ 714,000 | ||||||||||
Debt agreement term | 5 years |
Debt - Schedule of Payments of
Debt - Schedule of Payments of Long-term Debt (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Maturities of Long-term Debt [Abstract] | |
2017 (July 1 to September 30, 2017) | $ 671 |
2,018 | 2,269 |
2,019 | 2,153 |
2,020 | 3,117 |
2,021 | 256 |
Total minimum long-term debt payments | $ 8,466 |
Debt - Schedule of Minimum Rent
Debt - Schedule of Minimum Rental Commitments Under Non-Cancelable Capital Leases (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Capital Leases, Future Minimum Payments, Net Present Value [Abstract] | |
2017 (July 1 to September 30, 2017) | $ 27 |
2,018 | 123 |
2,019 | 113 |
2,020 | 66 |
2,021 | 66 |
Thereafter | 15 |
Total minimum lease payments | 410 |
Less: Amount representing interest | (33) |
Present value of minimum lease payments | $ 377 |
Debt - Schedule of Assets Under
Debt - Schedule of Assets Under Capital Leases (Details) - Machinery and Equipment - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Capital Leased Assets [Line Items] | ||
Capital lease assets, gross | $ 541 | $ 250 |
Capital lease assets, accumulated depreciation | $ (131) | $ (60) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate, percent | (10.00%) | 45.00% | |
Income tax expense (benefit) | $ (568) |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 78 | $ 69 | $ 235 | $ 209 |
Interest cost | 221 | 256 | 662 | 767 |
Expected return on plan assets | (404) | (407) | (1,211) | (1,222) |
Amortization of net loss | 215 | 210 | 646 | 630 |
Net periodic cost | $ 110 | $ 128 | $ 332 | $ 384 |
Retirement Benefit Plans - Addi
Retirement Benefit Plans - Additional Information (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions amount in defined benefit pension plans | $ 0 | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | Jan. 25, 2017shares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)tranche$ / sharesshares | Jun. 30, 2016USD ($) |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Outstanding share awards earned and issued at greater than the target number of shares | 150.00% | ||||
Restricted Stock | Minimum | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
Restricted Stock | Maximum | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
2007 Plan | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Aggregate number of shares that may be awarded (in shares) | 646,000 | ||||
Vesting period (in years) | 10 years | ||||
Number of tranches in award | tranche | 2 | ||||
Outstanding share awards that may be awarded (in shares) | 391,000 | 391,000 | |||
Share-based compensation expense (benefit) | $ | $ 139 | $ 228 | $ 484 | $ (236) | |
Total unrecognized compensation cost related to performance and restricted shares | $ | $ 962 | $ 962 | |||
Period of recognized compensation cost (in years) | 1 year 9 months | ||||
2007 Plan | Performance shares | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Performance period (in years) | 3 years | ||||
Shares vested in period (in shares) | 10,000 | ||||
Performance shares paid for payroll costs (in shares) | 4,000 | ||||
Shares granted in period (in shares) | 69,000 | ||||
Shares forfeited in period (in shares) | 24,000 | ||||
2007 Plan | Performance shares | Minimum | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Common shares earned pursuant to award (in shares) | 0 | ||||
2007 Plan | Performance shares | Maximum | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Common shares earned as percentage of initial target number shares awarded | 150.00% | ||||
2007 Plan | Performance and Restricted Shares | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Shares granted in period (in shares) | 107,000 | ||||
Shares granted in period, grant date fair value (in dollars per share) | $ / shares | $ 7.45 | ||||
2007 Plan | Restricted Stock | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Shares granted in period (in shares) | 38,000 | ||||
Shares forfeited in period (in shares) | 7,000 | ||||
2007 Plan | Restricted Stock | Non-Employee Directors | |||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
Shares vested in period (in shares) | 29,000 | ||||
Shares granted in period (in shares) | 33,000 | ||||
Shares granted in period, grant date fair value (in dollars per share) | $ / shares | $ 8.05 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Penalty assessed | $ 127 |