Cover Page
Cover Page | 6 Months Ended |
Mar. 31, 2022shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity File Number | 1-5978 |
Entity Registrant Name | SIFCO Industries, Inc |
Entity Incorporation, State or Country Code | OH |
Entity Tax Identification Number | 34-0553950 |
Entity Address, Address Line One | 970 East 64th Street, |
Entity Address, City or Town | Cleveland |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 44103 |
City Area Code | (216) |
Local Phone Number | 881-8600 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Title of 12(b) Security | Common Shares |
Trading Symbol | SIF |
Security Exchange Name | NYSEAMER |
Entity Common Stock, Shares Outstanding (in shares) | 6,039,617 |
Entity Central Index Key | 0000090168 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 24,568 | $ 24,866 | $ 43,815 | $ 49,944 |
Cost of goods sold | 23,109 | 22,123 | 42,347 | 43,278 |
Gross profit | 1,459 | 2,743 | 1,468 | 6,666 |
Selling, general and administrative expenses | 2,680 | 3,596 | 6,216 | 7,423 |
Amortization of intangible assets | 65 | 248 | 190 | 517 |
Gain on disposal of operating assets | (2) | 0 | (2) | 0 |
Gain on insurance recoveries | 0 | 0 | 0 | (2,495) |
Operating (loss) income | (1,284) | (1,101) | (4,936) | 1,221 |
Interest expense, net | 193 | 169 | 307 | 335 |
Gain on extinguishment of debt | (5,106) | 0 | (5,106) | 0 |
Foreign currency exchange loss, net | 3 | 14 | 9 | 21 |
Other loss (income), net | (36) | 42 | (68) | 103 |
(Loss) income before income tax expense (benefit) | 3,662 | (1,326) | (78) | 762 |
Income tax expense (benefit) | 23 | 165 | (26) | (740) |
Net (loss) income | $ 3,639 | $ (1,491) | $ (52) | $ 1,502 |
Net (loss) income per share | ||||
Basic (in dollars per share) | $ 0.62 | $ (0.26) | $ (0.01) | $ 0.26 |
Diluted (in dollars per share) | $ 0.61 | $ (0.26) | $ (0.01) | $ 0.25 |
Weighted-average number of common shares (basic) (in shares) | 5,840 | 5,777 | 5,819 | 5,735 |
Weighted-average number of common shares (diluted) (in shares) | 5,961 | 5,777 | 5,819 | 5,932 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ 3,639 | $ (1,491) | $ (52) | $ 1,502 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment, net of tax $0 and $0 for the three months ended and net of tax $0 and $0 for the six months ended, respectively | (136) | (303) | (259) | (17) |
Retirement plan liability adjustment, net of tax $0 and $0 for the three months ended, net of tax $0 and $0 for the six months ended, respectively | 119 | 211 | 238 | 423 |
Comprehensive (loss) income | $ 3,622 | $ (1,583) | $ (73) | $ 1,908 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Retirement plan liability adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 124 | $ 346 |
Receivables, net of allowance for doubtful accounts of $99 and $167, respectively | 18,284 | 19,914 |
Contract assets | 13,113 | 12,874 |
Inventories, net | 14,535 | 12,546 |
Refundable income taxes | 101 | 101 |
Prepaid expenses and other current assets | 1,279 | 1,792 |
Total current assets | 47,436 | 47,573 |
Property, plant and equipment, net | 41,342 | 42,708 |
Operating lease right-of-use assets, net | 15,477 | 15,943 |
Intangible assets, net | 659 | 874 |
Goodwill | 3,493 | 3,493 |
Other assets | 72 | 77 |
Total assets | 108,479 | 110,668 |
Current liabilities: | ||
Current maturities of long-term debt | 4,259 | 9,566 |
Revolver | 12,838 | 8,930 |
Short-term operating lease liabilities | 773 | 788 |
Accounts payable | 10,522 | 9,811 |
Accrued liabilities | 5,429 | 6,871 |
Total current liabilities | 33,821 | 35,966 |
Long-term debt, net of current maturities | 3,266 | 2,669 |
Long-term operating lease liabilities, net of short-term | 15,050 | 15,439 |
Deferred income taxes | 148 | 158 |
Pension liability | 5,716 | 6,073 |
Other long-term liabilities | 730 | 741 |
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 6,040 at March 31, 2022 and 5,987 at September 30, 2021 | 6,040 | 5,987 |
Additional paid-in capital | 11,264 | 11,118 |
Retained earnings | 41,544 | 41,596 |
Accumulated other comprehensive loss | (9,100) | (9,079) |
Total shareholders’ equity | 49,748 | 49,622 |
Total liabilities and shareholders’ equity | $ 108,479 | $ 110,668 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 99 | $ 167 |
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) | 6,040,000 | 5,987,000 |
Common shares, shares outstanding (in shares) | 6,040,000 | 5,987,000 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (52) | $ 1,502 |
Adjustments to reconcile net (loss) income to net cash (used for) provided by operating activities: | ||
Depreciation and amortization | 3,210 | 3,730 |
Amortization of debt issuance costs | 20 | 52 |
Gain on disposal of operating assets | (2) | 0 |
Gain on insurance proceeds received for damaged property | 0 | (2,495) |
LIFO effect | 383 | 335 |
Share transactions under company stock plan | 199 | 277 |
Gain on extinguishment of debt | (5,106) | 0 |
Other long-term liabilities | (107) | (2) |
Deferred income taxes | (15) | (830) |
Changes in operating assets and liabilities: | ||
Receivables | 1,441 | 4,149 |
Contract assets | (239) | (1,569) |
Inventories | (2,598) | (301) |
Prepaid expenses and other current assets | 490 | 40 |
Other assets | 4 | 47 |
Accounts payable | 387 | 2,749 |
Other accrued liabilities | (1,191) | (2,077) |
Accrued income and other taxes | (20) | 182 |
Net cash (used for) provided by operating activities | (3,196) | 5,789 |
Cash flows from investing activities: | ||
Insurance proceeds received for damaged property | 0 | 4,101 |
Proceeds from disposal of operating assets | 2 | 0 |
Capital expenditures | (1,493) | (5,416) |
Net cash used for investing activities | (1,491) | (1,315) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 1,402 | 0 |
Payments on long-term debt | (696) | (264) |
Proceeds from revolving credit agreement | 41,912 | 44,666 |
Repayments of revolving credit agreement | (38,004) | (49,794) |
Payment of debt issuance costs | 0 | (45) |
Short-term debt borrowings | 1,623 | 2,471 |
Short-term debt repayments | (1,755) | (1,631) |
Net cash (used for) provided by financing activities | 4,482 | (4,597) |
Decrease in cash and cash equivalents | (205) | (123) |
Cash and cash equivalents at the beginning of the period | 346 | 427 |
Effect of exchange rate changes on cash and cash equivalents | (17) | 7 |
Cash and cash equivalents at the end of the period | 124 | 311 |
Supplemental disclosure of cash flow information of operations: | ||
Cash paid for interest | (249) | (203) |
Cash paid for income taxes, net | $ (15) | $ (22) |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Sep. 30, 2020 | 5,916,000 | ||||
Beginning balance at Sep. 30, 2020 | $ 45,523 | $ 5,916 | $ 10,736 | $ 42,339 | $ (13,468) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 1,908 | 1,502 | 406 | ||
Performance and restricted share expense | 293 | 293 | |||
Share transactions under equity based plans (in shares) | 73,000 | ||||
Share transactions under equity based plans | (16) | $ 73 | (89) | ||
Ending balance (in shares) at Mar. 31, 2021 | 5,989,000 | ||||
Ending balance at Mar. 31, 2021 | 47,708 | $ 5,989 | 10,940 | 43,841 | (13,062) |
Beginning balance (in shares) at Dec. 31, 2020 | 5,959,000 | ||||
Beginning balance at Dec. 31, 2020 | 49,141 | $ 5,959 | 10,820 | 45,332 | (12,970) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | (1,583) | (1,491) | (92) | ||
Performance and restricted share expense | 150 | 150 | |||
Share transactions under equity based plans (in shares) | 30,000 | ||||
Share transactions under equity based plans | 0 | $ 30 | (30) | ||
Ending balance (in shares) at Mar. 31, 2021 | 5,989,000 | ||||
Ending balance at Mar. 31, 2021 | 47,708 | $ 5,989 | 10,940 | 43,841 | (13,062) |
Beginning balance (in shares) at Sep. 30, 2021 | 5,987,000 | ||||
Beginning balance at Sep. 30, 2021 | 49,622 | $ 5,987 | 11,118 | 41,596 | (9,079) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | (73) | (52) | (21) | ||
Performance and restricted share expense | 306 | 306 | |||
Share transactions under equity based plans (in shares) | 53,000 | ||||
Share transactions under equity based plans | (107) | $ 53 | (160) | ||
Ending balance (in shares) at Mar. 31, 2022 | 6,040,000 | ||||
Ending balance at Mar. 31, 2022 | 49,748 | $ 6,040 | 11,264 | 41,544 | (9,100) |
Beginning balance (in shares) at Dec. 31, 2021 | 6,003,000 | ||||
Beginning balance at Dec. 31, 2021 | 45,981 | $ 6,003 | 11,156 | 37,905 | (9,083) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 3,622 | 3,639 | (17) | ||
Performance and restricted share expense | 145 | 145 | |||
Share transactions under equity based plans (in shares) | 37,000 | ||||
Share transactions under equity based plans | 0 | $ 37 | (37) | ||
Ending balance (in shares) at Mar. 31, 2022 | 6,040,000 | ||||
Ending balance at Mar. 31, 2022 | $ 49,748 | $ 6,040 | $ 11,264 | $ 41,544 | $ (9,100) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2022 | |
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 in consolidation. The U.S. dollar is the functional currency for all of the Company’s operations in the United States ("U.S.") and its non-operating subsidiaries. For these operations, all gains and losses from completed currency transactions are included in income. 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 2021 Annual Report on Form 10-K. The year-end consolidated balance sheet data was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the 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 Annual Report on From 10-K for the year ended September 30, 2021. C. Net (Loss)/Income per Share The Company’s net loss and net income per basic share has been computed based on the weighted-average number of common shares outstanding. During a period of net loss, zero restricted and performance shares are included in the calculation of diluted earnings per share because the effect would be anti-dilutive. In a period of net income, the net income per diluted share reflects the effect of the Company's outstanding restricted shares and performance shares under the treasury method. The dilutive effect is as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Net (loss) income $ 3,639 $ (1,491) $ (52) $ 1,502 Weighted-average common shares outstanding (basic) 5,840 5,777 5,819 5,735 Effect of dilutive securities: Restricted shares 100 — — 144 Performance shares 21 — — 53 Weighted-average common shares outstanding (diluted) 5,961 5,777 5,819 5,932 Net (loss) income per share – basic: $ 0.62 $ (0.26) $ (0.01) $ 0.26 Net (loss) income per share – diluted: $ 0.61 $ (0.26) $ (0.01) $ 0.25 Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 196 411 307 217 D. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, " Income Taxes (ASC 740) – Simplifying the Accounting for Income Taxes ," which is intended to reduce complexity in the accounting for income taxes while maintaining or improving the usefulness of information provided to financial statement users. The guidance amends certain existing provisions under ASC 740 to address a number of distinct items. The Company adopted ASU 2019-12 effective October 1, 2021. Adoption of the amendments in this ASU did not have an impact to the Company's results of operations and financial condition. |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of: March 31, September 30, Raw materials and supplies $ 5,099 $ 4,111 Work-in-process 5,046 3,560 Finished goods 4,390 4,875 Total inventories $ 14,535 $ 12,546 For a portion of the Company's inventory, cost is determined using the last-in, first-out ("LIFO") method. Approximately 43% and 39% of the Company’s inventories at March 31, 2022 and September 30, 2021, respectively, use the LIFO method. An actual valuation of inventory under the LIFO method is made at the end of each fiscal year based on the inventory levels and costs existing at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because the actual results may vary from these estimates, calculations are subject to many factors beyond management’s control, and annual results may differ from interim results as they are subject to adjustments based on the differences between the estimates and the actual results. The first-in, first-out (“FIFO”) method is used for the remainder of the inventories, which are stated at the lower of cost or net realizable value. If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $9,593 and $9,210 higher than reported at March 31, 2022 and September 30, 2021, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: March 31, September 30, Foreign currency translation adjustment $ (5,618) $ (5,359) Retirement plan liability adjustment, net of tax (3,482) (3,720) Total accumulated other comprehensive loss $ (9,100) $ (9,079) |
Leases
Leases | 6 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Finance lease expense: Amortization of right-of use assets on finance leases $ 2 $ 13 $ 14 $ 27 Interest on lease liabilities — 1 — 2 Operating lease expense 429 540 828 1,092 Variable lease cost 30 35 60 69 Total lease expense $ 461 $ 589 $ 902 $ 1,190 The following table presents the impact of leasing on the consolidated condensed balance sheet. Classification in the consolidated condensed balance sheets March 31, September 30, Assets: Finance lease assets Property, plant and equipment, net $ 20 $ 34 Operating lease assets Operating lease right-of-use assets, net 15,477 15,943 Total lease assets $ 15,497 $ 15,977 Current liabilities: Finance lease liabilities Current maturities of long-term debt $ 10 $ 17 Operating lease liabilities Short-term operating lease liabilities 773 788 Non-current liabilities: Finance lease liabilities Long-term debt, net of current maturities — 5 Operating lease liabilities Long-term operating lease liabilities, net of short-term 15,050 15,439 Total lease liabilities $ 15,833 $ 16,249 Supplemental cash flow and other information related to leases were as follows: March 31, March 31, Other Information Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 834 $ 1,097 Operating cash flows from finance leases — 2 Financing cash flows from finance leases 15 29 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases — 43 March 31, September 30, Weighted-average remaining lease term (years): Finance leases 1.1 1.1 Operating leases 13.9 14.4 Weighted-average discount rate: Finance leases — % 2.8 % Operating leases 5.9 % 5.9 % Future minimum lease under non-cancellable leases at March 31, 2022 were as follows: Finance Leases Operating Leases Year ending September 30, 2022 (excluding the six months ended March 31, 2022) $ 5 $ 829 2023 5 1,632 2024 — 1,647 2025 — 1,644 2026 — 1,620 Thereafter — 15,912 Total lease payments $ 10 $ 23,284 Less: Imputed interest — (7,461) Present value of lease liabilities $ 10 $ 15,823 |
Leases | Leases The components of lease expense were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Finance lease expense: Amortization of right-of use assets on finance leases $ 2 $ 13 $ 14 $ 27 Interest on lease liabilities — 1 — 2 Operating lease expense 429 540 828 1,092 Variable lease cost 30 35 60 69 Total lease expense $ 461 $ 589 $ 902 $ 1,190 The following table presents the impact of leasing on the consolidated condensed balance sheet. Classification in the consolidated condensed balance sheets March 31, September 30, Assets: Finance lease assets Property, plant and equipment, net $ 20 $ 34 Operating lease assets Operating lease right-of-use assets, net 15,477 15,943 Total lease assets $ 15,497 $ 15,977 Current liabilities: Finance lease liabilities Current maturities of long-term debt $ 10 $ 17 Operating lease liabilities Short-term operating lease liabilities 773 788 Non-current liabilities: Finance lease liabilities Long-term debt, net of current maturities — 5 Operating lease liabilities Long-term operating lease liabilities, net of short-term 15,050 15,439 Total lease liabilities $ 15,833 $ 16,249 Supplemental cash flow and other information related to leases were as follows: March 31, March 31, Other Information Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 834 $ 1,097 Operating cash flows from finance leases — 2 Financing cash flows from finance leases 15 29 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases — 43 March 31, September 30, Weighted-average remaining lease term (years): Finance leases 1.1 1.1 Operating leases 13.9 14.4 Weighted-average discount rate: Finance leases — % 2.8 % Operating leases 5.9 % 5.9 % Future minimum lease under non-cancellable leases at March 31, 2022 were as follows: Finance Leases Operating Leases Year ending September 30, 2022 (excluding the six months ended March 31, 2022) $ 5 $ 829 2023 5 1,632 2024 — 1,647 2025 — 1,644 2026 — 1,620 Thereafter — 15,912 Total lease payments $ 10 $ 23,284 Less: Imputed interest — (7,461) Present value of lease liabilities $ 10 $ 15,823 |
Debt
Debt | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of: March 31, September 30, Revolving credit agreement $ 12,838 $ 8,930 Foreign subsidiary borrowings 6,809 6,632 Finance lease obligations 10 22 Other, net of unamortized debt issuance costs $(26) and $(32), respectively 706 5,581 Total debt 20,363 21,165 Less – current maturities (17,097) (18,496) Total long-term debt $ 3,266 $ 2,669 Credit Agreement and Security Agreement The Credit Agreement (as amended, the "Credit Agreement") contains affirmative and negative covenants and events of default. On March 23, 2022, the Company entered into the Sixth Amendment (the "Sixth Amendment") to the Credit Agreement (as previously amended, the "Credit Agreement") and the Second Amendment (the "Second Amendment") to the Export Credit Agreement (the "Export Credit Agreement"), with its lender. The total collateral at March 31, 2022 and September 30, 2021 was $26,126 and $25,370, respectively, and the revolving commitment was $35,000 for both periods. Total availability at March 31, 2022 and September 30, 2021 was $12,759 and $14,570, respectively, which exceed both the collateral and total commitment threshold. Since the availability was greater than the 10.0% of the revolving commitment as of March 31, 2022 and September 30, 2021, no covenant calculations were required. The Company has letter of credit balance of $1,800 as of March 31, 2022 and September 30, 2021, respectively. The Sixth Amendment amends the Credit Agreement to, among other things, (i) revise the fixed coverage ratio to exclude the first $1,500 of unfunded capital expenditures through April 20, 2023, (ii) increase the letter of credit sub-limit from $2,000 to $3,000, (iii) modify the reference rate from the London interbank offered rate ("LIBOR") to the secured overnight financing rate ("SOFR") under the Credit Agreement, and (iv) revise the property, plant and equipment component of the borrowing base under the Credit Agreement. The Second Amendment amends the Export Credit Agreement to replace the reference rate from LIBOR to SOFR under the Export Credit Agreement. The revolver has a rate based on SOFR plus 2.0% spread, which was 2.3% at March 31, 2022 and a rate based on LIBOR plus 1.75% spread, which was 1.8% at September 30, 2021. The Export Credit Agreement as amended has a rate based on SOFR plus 1.5% spread, which was 1.8% at March 31, 2022 and a rate based on LIBOR plus 1.25% spread, which was 1.3% at September 30, 2021, respectively. The Company also has a commitment fee of 0.25% under the Credit Agreement as amended to be incurred on the unused balance of the revolver. Foreign subsidiary borrowings Foreign debt consists of: March 31, September 30, Term loan $ 3,545 $ 3,127 Short-term borrowings 2,553 1,867 Factor 711 1,638 Total debt $ 6,809 $ 6,632 Less – current maturities (4,012) (4,551) Total long-term debt $ 2,797 $ 2,081 Receivables pledged as collateral $ 594 $ 485 Interest rates on foreign borrowings are based on Euribor rates which range from 1.0% to 4.2%. The Maniago, Italy ("Maniago") location obtained borrowings from one lender in the first six months of fiscal 2022. The loan was for $1,141 with repayment terms of six years. Under the terms of the borrowing, repayments are made quarterly in the amount of $56, beginning on December 31, 2022. The Company factors receivables from one of its customers. 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 sheets. Debt issuance costs The Company had debt issuance costs of $86, which is included in the consolidated condensed balance sheets as a deferred charge in other current assets, net of amortization of $31 and $17 at March 31, 2022 and September 30, 2021, respectively. Other |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesFor 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 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 2022 was 33%, compared with (97)% for the same period of fiscal 2021. The increase in the effective rate was primarily attributable to tax benefits from adjusting deferred taxes recorded in Italy recognized on a discrete basis in fiscal 2021, which were non-recurring in fiscal 2022. 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 than 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. |
Retirement Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Mar. 31, 2022 | |
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 Six Months Ended 2022 2021 2022 2021 Service cost $ 11 $ 26 $ 21 $ 52 Interest cost 178 175 357 350 Expected return on plan assets (340) (355) (681) (711) Amortization of net loss 119 211 238 423 Net periodic cost $ (32) $ 57 $ (65) $ 114 During the six months ended March 31, 2022 and 2021, the Company made $0 and $56 in contributions, respectively to its defined benefit pension plans. The Company anticipates making $3 in cash contributions to fund its defined benefit pension plans for the balance of fiscal 2022 and will use carryover balances from previous periods that have been available for use as a credit to reduce the amount of cash contributions that the Company is required to make to certain defined benefit plans in fiscal 2022. 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 2022. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company awards performance and restricted shares under the Company's 2007 Long-Term Incentive Plan ("2007 Plan") and the Company's 2007 Long-Term Incentive Plan (Amended and Restated as of November 16, 2016) (as further amended, the "2016 Plan"). In fiscal 2022, the Company granted 74 shares under the 2016 Plan to certain key employees. The awards were split into two tranches, 44 performance shares and 30 shares of time-based restricted shares, with a grant date fair value of $8.00 per share. The awards vest over three years. There were 5 shares forfeited during the period. In fiscal 2022, the Company granted its non-employee directors 42 restricted shares under the 2016 Plan, with a grant date fair value of $6.59 per share, which vests over one year. One award for 30 restricted shares vested in January 2022. If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 433 shares that remain available for award at March 31, 2022. 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 200% or 150% of such target, then a fewer number of shares would be available for award. Stock-based compensation under the 2016 Plan was $306 and $293 during the first six months of fiscal 2022 and 2021, respectively and $145 and $150 during the three months ended of fiscal 2022 and 2021, respectively. As of March 31, 2022, there was $847 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2016 Plan. The Company expects to recognize this cost over the next 1.4 years. |
Revenue
Revenue | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company produces forged components for (i) turbine engines that power commercial, business and regional aircraft as well as military aircraft and other military applications; (ii) airframe applications for a variety of aircraft; (iii) industrial gas and steam turbine engines for power generation units; and (iv) other commercial applications. The following table represents a breakout of total revenue by customer type: Three Months Ended Six Months Ended 2022 2021 2022 2021 Commercial revenue $ 9,506 $ 9,247 $ 17,866 $ 20,000 Military revenue 15,062 15,619 25,949 29,944 Total $ 24,568 $ 24,866 $ 43,815 $ 49,944 The following table represents revenue by the various components: Three Months Ended Six Months Ended Net Sales 2022 2021 2022 2021 Aerospace components for: Fixed wing aircraft $ 10,071 $ 10,176 $ 19,960 $ 19,966 Rotorcraft 4,371 7,872 7,914 15,603 Energy components for power generation units 4,346 5,102 8,003 11,565 Commercial product and other revenue 5,780 1,716 7,938 2,810 Total $ 24,568 $ 24,866 $ 43,815 $ 49,944 The following table represents revenue by geographic region based on the Company's selling operation locations: Three Months Ended Six Months Ended Net Sales 2022 2021 2022 2021 North America $ 20,426 $ 20,019 $ 36,288 $ 39,784 Europe 4,142 4,847 7,527 10,160 Total $ 24,568 $ 24,866 $ 43,815 $ 49,944 In addition to the disaggregated revenue information provided above, approximately 62% and 61% of total net sales as of March 31, 2022 and 2021, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time. Contract Balances The following table contains a roll forward of contract assets and contract liabilities for the period ended March 31, 2022: Contract assets - Beginning balance, October 1, 2021 $ 12,874 Additional revenue recognized over-time 27,375 Less amounts billed to the customers (27,136) Contract assets - Ending balance, March 31, 2022 $ 13,113 Contract liabilities (included within Accrued liabilities) - Beginning balance, October 1, 2021 $ (236) Payments received in advance of performance obligations (1,209) Performance obligations satisfied 1,169 Contract liabilities (included within Accrued liabilities) - Ending balance, March 31, 2022 $ (276) There were no impairment losses recorded on contract assets as of March 31, 2022 and September 30, 2021. Remaining performance obligations As of March 31, 2022, the Company has $72,045 of remaining performance obligations, the majority of which are anticipated to be completed within the next twelve months. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
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 in consolidation. The U.S. dollar is the functional currency for all of the Company’s operations in the United States ("U.S.") and its non-operating subsidiaries. For these operations, all gains and losses from completed currency transactions are included in income. 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 2021 Annual Report on Form 10-K. The year-end consolidated balance sheet data was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the 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. |
Net (Loss)/Income per Share | Net (Loss)/Income per ShareThe Company’s net loss and net income per basic share has been computed based on the weighted-average number of common shares outstanding. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, " Income Taxes (ASC 740) – Simplifying the Accounting for Income Taxes ," which is intended to reduce complexity in the accounting for income taxes while maintaining or improving the usefulness of information provided to financial statement users. The guidance amends certain existing provisions under ASC 740 to address a number of distinct items. The Company adopted ASU 2019-12 effective October 1, 2021. Adoption of the amendments in this ASU did not have an impact to the Company's results of operations and financial condition. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Dilutive Effect of Company's Restricted Shares and Performance Shares | The dilutive effect is as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Net (loss) income $ 3,639 $ (1,491) $ (52) $ 1,502 Weighted-average common shares outstanding (basic) 5,840 5,777 5,819 5,735 Effect of dilutive securities: Restricted shares 100 — — 144 Performance shares 21 — — 53 Weighted-average common shares outstanding (diluted) 5,961 5,777 5,819 5,932 Net (loss) income per share – basic: $ 0.62 $ (0.26) $ (0.01) $ 0.26 Net (loss) income per share – diluted: $ 0.61 $ (0.26) $ (0.01) $ 0.25 Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 196 411 307 217 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of: March 31, September 30, Raw materials and supplies $ 5,099 $ 4,111 Work-in-process 5,046 3,560 Finished goods 4,390 4,875 Total inventories $ 14,535 $ 12,546 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: March 31, September 30, Foreign currency translation adjustment $ (5,618) $ (5,359) Retirement plan liability adjustment, net of tax (3,482) (3,720) Total accumulated other comprehensive loss $ (9,100) $ (9,079) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost Components, Supplemental Cash Flow and Other information, and Weighted-Average Remaining Lease Term Schedules | The components of lease expense were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 Finance lease expense: Amortization of right-of use assets on finance leases $ 2 $ 13 $ 14 $ 27 Interest on lease liabilities — 1 — 2 Operating lease expense 429 540 828 1,092 Variable lease cost 30 35 60 69 Total lease expense $ 461 $ 589 $ 902 $ 1,190 Supplemental cash flow and other information related to leases were as follows: March 31, March 31, Other Information Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 834 $ 1,097 Operating cash flows from finance leases — 2 Financing cash flows from finance leases 15 29 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases — 43 March 31, September 30, Weighted-average remaining lease term (years): Finance leases 1.1 1.1 Operating leases 13.9 14.4 Weighted-average discount rate: Finance leases — % 2.8 % Operating leases 5.9 % 5.9 % |
Schedule of Supplemental Balance Sheet Information Schedule | The following table presents the impact of leasing on the consolidated condensed balance sheet. Classification in the consolidated condensed balance sheets March 31, September 30, Assets: Finance lease assets Property, plant and equipment, net $ 20 $ 34 Operating lease assets Operating lease right-of-use assets, net 15,477 15,943 Total lease assets $ 15,497 $ 15,977 Current liabilities: Finance lease liabilities Current maturities of long-term debt $ 10 $ 17 Operating lease liabilities Short-term operating lease liabilities 773 788 Non-current liabilities: Finance lease liabilities Long-term debt, net of current maturities — 5 Operating lease liabilities Long-term operating lease liabilities, net of short-term 15,050 15,439 Total lease liabilities $ 15,833 $ 16,249 |
Schedule of Maturities of Finance Lease Liabilities by Fiscal Year Schedule | Future minimum lease under non-cancellable leases at March 31, 2022 were as follows: Finance Leases Operating Leases Year ending September 30, 2022 (excluding the six months ended March 31, 2022) $ 5 $ 829 2023 5 1,632 2024 — 1,647 2025 — 1,644 2026 — 1,620 Thereafter — 15,912 Total lease payments $ 10 $ 23,284 Less: Imputed interest — (7,461) Present value of lease liabilities $ 10 $ 15,823 |
Schedule of Maturities of Operating Lease Liabilities by Fiscal Year Schedule | Future minimum lease under non-cancellable leases at March 31, 2022 were as follows: Finance Leases Operating Leases Year ending September 30, 2022 (excluding the six months ended March 31, 2022) $ 5 $ 829 2023 5 1,632 2024 — 1,647 2025 — 1,644 2026 — 1,620 Thereafter — 15,912 Total lease payments $ 10 $ 23,284 Less: Imputed interest — (7,461) Present value of lease liabilities $ 10 $ 15,823 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of: March 31, September 30, Revolving credit agreement $ 12,838 $ 8,930 Foreign subsidiary borrowings 6,809 6,632 Finance lease obligations 10 22 Other, net of unamortized debt issuance costs $(26) and $(32), respectively 706 5,581 Total debt 20,363 21,165 Less – current maturities (17,097) (18,496) Total long-term debt $ 3,266 $ 2,669 |
Schedule of Foreign Debt | Foreign debt consists of: March 31, September 30, Term loan $ 3,545 $ 3,127 Short-term borrowings 2,553 1,867 Factor 711 1,638 Total debt $ 6,809 $ 6,632 Less – current maturities (4,012) (4,551) Total long-term debt $ 2,797 $ 2,081 Receivables pledged as collateral $ 594 $ 485 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Six Months Ended 2022 2021 2022 2021 Service cost $ 11 $ 26 $ 21 $ 52 Interest cost 178 175 357 350 Expected return on plan assets (340) (355) (681) (711) Amortization of net loss 119 211 238 423 Net periodic cost $ (32) $ 57 $ (65) $ 114 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table represents a breakout of total revenue by customer type: Three Months Ended Six Months Ended 2022 2021 2022 2021 Commercial revenue $ 9,506 $ 9,247 $ 17,866 $ 20,000 Military revenue 15,062 15,619 25,949 29,944 Total $ 24,568 $ 24,866 $ 43,815 $ 49,944 The following table represents revenue by the various components: Three Months Ended Six Months Ended Net Sales 2022 2021 2022 2021 Aerospace components for: Fixed wing aircraft $ 10,071 $ 10,176 $ 19,960 $ 19,966 Rotorcraft 4,371 7,872 7,914 15,603 Energy components for power generation units 4,346 5,102 8,003 11,565 Commercial product and other revenue 5,780 1,716 7,938 2,810 Total $ 24,568 $ 24,866 $ 43,815 $ 49,944 The following table represents revenue by geographic region based on the Company's selling operation locations: Three Months Ended Six Months Ended Net Sales 2022 2021 2022 2021 North America $ 20,426 $ 20,019 $ 36,288 $ 39,784 Europe 4,142 4,847 7,527 10,160 Total $ 24,568 $ 24,866 $ 43,815 $ 49,944 |
Schedule of Contract Assets and Liabilities | The following table contains a roll forward of contract assets and contract liabilities for the period ended March 31, 2022: Contract assets - Beginning balance, October 1, 2021 $ 12,874 Additional revenue recognized over-time 27,375 Less amounts billed to the customers (27,136) Contract assets - Ending balance, March 31, 2022 $ 13,113 Contract liabilities (included within Accrued liabilities) - Beginning balance, October 1, 2021 $ (236) Payments received in advance of performance obligations (1,209) Performance obligations satisfied 1,169 Contract liabilities (included within Accrued liabilities) - Ending balance, March 31, 2022 $ (276) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net (loss) income | $ 3,639 | $ (1,491) | $ (52) | $ 1,502 |
Weighted-average common shares outstanding (basic) (in shares) | 5,840,000 | 5,777,000 | 5,819,000 | 5,735,000 |
Effect of dilutive securities: | ||||
Weighted-average common shares outstanding (diluted) (in shares) | 5,961,000 | 5,777,000 | 5,819,000 | 5,932,000 |
Net income per share | ||||
Net income per share – basic (in dollars per share) | $ 0.62 | $ (0.26) | $ (0.01) | $ 0.26 |
Net income per share – diluted (in dollars per share) | $ 0.61 | $ (0.26) | $ (0.01) | $ 0.25 |
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares) | 196,000 | 411,000 | 307,000 | 217,000 |
Restricted shares | ||||
Effect of dilutive securities: | ||||
Restricted and performance shares (in shares) | 100,000 | 0 | 0 | 144,000 |
Performance shares | ||||
Effect of dilutive securities: | ||||
Restricted and performance shares (in shares) | 21,000 | 0 | 0 | 53,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 5,099 | $ 4,111 |
Work-in-process | 5,046 | 3,560 |
Finished goods | 4,390 | 4,875 |
Total inventories | $ 14,535 | $ 12,546 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Percentage of inventories determined using LIFO method | 43.00% | 39.00% |
Additional amount that would have been reported in inventory if FIFO method had been used | $ 9,593 | $ 9,210 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | $ 49,748 | $ 45,981 | $ 49,622 | $ 47,708 | $ 49,141 | $ 45,523 |
Foreign currency translation adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | (5,618) | (5,359) | ||||
Retirement plan liability adjustment, net of tax | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | (3,482) | (3,720) | ||||
Total accumulated other comprehensive loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | $ (9,100) | $ (9,083) | $ (9,079) | $ (13,062) | $ (12,970) | $ (13,468) |
Leases - Lease Cost Components
Leases - Lease Cost Components Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Finance lease expense: | ||||
Amortization of right-of use assets on finance leases | $ 2 | $ 13 | $ 14 | $ 27 |
Interest on lease liabilities | 0 | 1 | 0 | 2 |
Operating lease expense | 429 | 540 | 828 | 1,092 |
Variable lease cost | 30 | 35 | 60 | 69 |
Total lease expense | $ 461 | $ 589 | $ 902 | $ 1,190 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Assets: | ||
Property, plant and equipment, net | $ 20 | $ 34 |
Operating lease right-of-use assets, net | 15,477 | 15,943 |
Total lease assets | 15,497 | 15,977 |
Current liabilities: | ||
Current maturities of long-term debt | 10 | 17 |
Short-term operating lease liabilities | 773 | 788 |
Non-current liabilities: | ||
Long-term debt, net of current maturities | 0 | 5 |
Long-term operating lease liabilities, net of short-term | 15,050 | 15,439 |
Total lease liabilities | $ 15,833 | $ 16,249 |
Finance lease, asset, statement of financial position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Current finance lease, liability, statement of financial position [Extensible List] | Current maturities of long-term debt | Current maturities of long-term debt |
Noncurrent finance lease, liability, statement of financial position [Extensible List] | Total long-term debt | Total long-term debt |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Schedule (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid for amounts included in measurement of liabilities: | ||
Operating cash flows from operating leases | $ 834 | $ 1,097 |
Operating cash flows from finance leases | 0 | 2 |
Financing cash flows from finance leases | 15 | 29 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating leases | $ 0 | $ 43 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate Schedule (Details) | Mar. 31, 2022 | Sep. 30, 2021 |
Weighted-average remaining lease term (years): | ||
Finance leases | 1 year 1 month 6 days | 1 year 1 month 6 days |
Operating leases | 13 years 10 months 24 days | 14 years 4 months 24 days |
Weighted-average discount rate: | ||
Finance leases | 0.00% | 2.80% |
Operating leases | 5.90% | 5.90% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities by Fiscal Year Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Finance Leases | ||
2022 (excluding the six months ended March 31, 2022) | $ 5 | |
2023 | 5 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total lease payments | 10 | |
Less: Imputed interest | 0 | |
Present value of lease liabilities | 10 | $ 22 |
Operating Leases | ||
2022 (excluding the six months ended March 31, 2022) | 829 | |
2023 | 1,632 | |
2024 | 1,647 | |
2025 | 1,644 | |
2026 | 1,620 | |
Thereafter | 15,912 | |
Total lease payments | 23,284 | |
Less: Imputed interest | (7,461) | |
Present value of lease liabilities | $ 15,823 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 10 | $ 22 |
Total debt | 20,363 | 21,165 |
Less – current maturities | (17,097) | (18,496) |
Total long-term debt | 3,266 | 2,669 |
Unamortized debt issuance costs | (26) | (32) |
Other, net of unamortized debt issuance costs $(26) and $(32), respectively | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 706 | 5,581 |
Revolving credit agreement | Revolving credit agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 12,838 | 8,930 |
Foreign subsidiary borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 6,809 | $ 6,632 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jan. 31, 2022USD ($) | Mar. 31, 2022USD ($)lender | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)customerlender | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Mar. 23, 2022USD ($) | Mar. 22, 2022USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Number of customer invoices factored | customer | 1 | |||||||
Gain on extinguishment of debt | $ 5,106,000 | $ 0 | $ 5,106,000 | $ 0 | ||||
Foreign subsidiary borrowings | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Receivables pledged as collateral | 594,000 | 594,000 | $ 485,000 | |||||
Remaining debt balance | $ 6,809,000 | $ 6,809,000 | 6,632,000 | |||||
Foreign subsidiary borrowings | Euribor | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Euribor variable interest rates | 1.00% | 1.00% | ||||||
Foreign subsidiary borrowings | Euribor | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Euribor variable interest rates | 4.20% | 4.20% | ||||||
First Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, number of lenders | lender | 1 | 1 | ||||||
Face amount | $ 1,141,000 | $ 1,141,000 | ||||||
Debt instrument, term | 6 years | |||||||
Quarterly payment | $ 56,000 | |||||||
Revolving credit agreement | Credit Agreement | Revolving credit agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Receivables pledged as collateral | 26,126,000 | 26,126,000 | 25,370,000 | |||||
Revolving credit facility, maximum borrowing capacity | 35,000,000 | 35,000,000 | 35,000,000 | |||||
Remaining borrowing capacity | 12,759,000 | $ 12,759,000 | $ 14,570,000 | |||||
Percent availability under revolving commitment | 10.00% | 10.00% | ||||||
Letters of credit outstanding, amount | $ 1,800,000 | $ 1,800,000 | $ 1,800,000 | |||||
Line of credit facility, unfunded capital expenditures | $ 1,500,000 | |||||||
Line of credit facility, accordion feature, letter of credit sub limit | $ 3,000,000 | $ 2,000,000 | ||||||
Weighted average interest rate, revolving credit facility | 2.30% | 2.30% | 1.80% | |||||
Commitment fee percentage | 0.25% | |||||||
Revolving credit agreement | Credit Agreement | Revolving credit agreement | LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on LIBOR | 1.75% | |||||||
Revolving credit agreement | Credit Agreement | Revolving credit agreement | SOFR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on LIBOR | 2.00% | |||||||
Revolving credit agreement | Export Credit Facility | Revolving credit agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Weighted average interest rate, revolving credit facility | 1.80% | 1.80% | 1.30% | |||||
Revolving credit agreement | Export Credit Facility | Revolving credit agreement | LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on LIBOR | 1.25% | |||||||
Revolving credit agreement | Export Credit Facility | Revolving credit agreement | SOFR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on LIBOR | 1.50% | |||||||
Revolving credit agreement | 2018 Credit Agreement | Revolving credit agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Remaining unamortized amount | $ 86,000 | $ 86,000 | ||||||
Revolving line of credit, accumulated amortization of debt issuance costs | 31,000 | 31,000 | $ 17,000 | |||||
Unsecured Promissory Note | PPP Loan | JPMorgan Chase Bank, N.A. | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Remaining debt balance | $ 0 | 0 | $ 4,764,000 | |||||
Debt instrument, decrease, forgiveness | $ 5,025,000 | |||||||
Repayment debt | $ 261,000 | |||||||
Gain on extinguishment of debt | 5,106,000 | |||||||
Debt Instrument, decrease, interest forgiven | $ 81,000 |
Debt - Schedule of Foreign Subs
Debt - Schedule of Foreign Subsidiary Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Line of Credit Facility [Line Items] | ||
Less – current maturities | $ (4,259) | $ (9,566) |
Total long-term debt | 3,266 | 2,669 |
Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 6,809 | 6,632 |
Less – current maturities | (4,012) | (4,551) |
Total long-term debt | 2,797 | 2,081 |
Receivables pledged as collateral | 594 | 485 |
Term loan | Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 3,545 | 3,127 |
Short-term borrowings | Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 2,553 | 1,867 |
Factor | Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | $ 711 | $ 1,638 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, percent | 33.00% | (97.00%) |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 11 | $ 26 | $ 21 | $ 52 |
Interest cost | 178 | 175 | 357 | 350 |
Expected return on plan assets | (340) | (355) | (681) | (711) |
Amortization of net loss | 119 | 211 | 238 | 423 |
Net periodic cost | $ (32) | $ 57 | $ (65) | $ 114 |
Retirement Benefit Plans - Narr
Retirement Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Contributions amount in defined benefit pension plans | $ 0 | $ 56 |
Additional cash contributions planned for fiscal 2022 | $ 3 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022shares | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)tranche$ / sharesshares | Mar. 31, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense (benefit) | $ | $ 145 | $ 150 | |||
2016 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding share awards that may be awarded (in shares) | 433 | 433 | |||
Outstanding share awards earned and issued at greater than the target number of shares | 200.00% | ||||
Outstanding share awards earned and issued at greater than the target number of shares next fiscal year | 150.00% | ||||
Share-based compensation expense (benefit) | $ | $ 306 | $ 293 | |||
Total unrecognized compensation cost related to performance and restricted shares | $ | $ 847 | $ 847 | |||
Period of recognized compensation cost (in years) | 1 year 4 months 24 days | ||||
2016 Plan | Performance and Restricted Shares | Key employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted in period (in shares) | 74 | ||||
Number of tranches in award | tranche | 2 | ||||
Shares granted in period, grant date fair value (in dollars per share) | $ / shares | $ 8 | ||||
Vesting period | 3 years | ||||
Shares forfeited (in shares) | 5 | ||||
2016 Plan | Performance shares | Key employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted in period (in shares) | 44 | ||||
2016 Plan | Restricted shares | Key employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted in period (in shares) | 30 | ||||
2016 Plan | Restricted shares | Non-employee directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted in period (in shares) | 42 | ||||
Shares granted in period, grant date fair value (in dollars per share) | $ / shares | $ 6.59 | ||||
Vesting period | 1 year | ||||
Vested in period (in shares) | 30 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 24,568 | $ 24,866 | $ 43,815 | $ 49,944 |
Revenue from Contract with Customer | Customer Concentration Risk | Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk | 62.00% | 61.00% | ||
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,426 | 20,019 | $ 36,288 | $ 39,784 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,142 | 4,847 | 7,527 | 10,160 |
Fixed wing aircraft | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,071 | 10,176 | 19,960 | 19,966 |
Rotorcraft | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,371 | 7,872 | 7,914 | 15,603 |
Energy components for power generation units | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,346 | 5,102 | 8,003 | 11,565 |
Commercial product and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,780 | 1,716 | 7,938 | 2,810 |
Commercial revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,506 | 9,247 | 17,866 | 20,000 |
Military revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 15,062 | $ 15,619 | $ 25,949 | $ 29,944 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Sep. 30, 2021 | |
Change In Contract With Customer, Assets [Roll Forward] | ||
Contract assets - Beginning balance | $ 12,874,000 | |
Additional revenue recognized over-time | 27,375,000 | |
Less amounts billed to the customers | (27,136,000) | |
Contract assets - Ending balance | 13,113,000 | $ 12,874,000 |
Change In Contract With Customer, Liability [Roll Forward] | ||
Contract liabilities (included within Accrued liabilities) - Beginning balance | (236,000) | |
Payments received in advance of performance obligations | (1,209,000) | |
Performance obligations satisfied | 1,169,000 | |
Contract liabilities (included within Accrued liabilities) - Ending balance | (276,000) | (236,000) |
Impairment loss on contract assets | $ 0 | $ 0 |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 72,045 |