Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Jan. 31, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | STARRETT L S CO | |
Entity Central Index Key | 93,676 | |
Trading Symbol | scx | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 6,293,967 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 765,837 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Current assets: | ||
Cash | $ 16,727 | $ 19,794 |
Accounts receivable (less allowance for doubtful accounts of $752 and $887, respectively) | 31,388 | 34,367 |
Inventories | 58,204 | 56,321 |
Current deferred income tax assets | 4,518 | |
Prepaid expenses and other current assets | 7,316 | 5,911 |
Total current assets | 113,635 | 120,911 |
Property, plant and equipment, net | 39,870 | 41,010 |
Income taxes receivable | 2,517 | 2,655 |
Deferred income tax assets, net of current portion | 25,069 | 25,284 |
Intangible assets, net | 6,126 | 6,490 |
Goodwill | 3,034 | 3,034 |
Other assets | 2,258 | 2,214 |
Total assets | 192,509 | 201,598 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 1,578 | 1,543 |
Accounts payable | 8,056 | 8,981 |
Accrued expenses | 5,758 | 6,372 |
Accrued compensation | 3,924 | 4,922 |
Total current liabilities | 19,316 | 21,818 |
Long-term debt, net of current portion | 16,311 | 17,109 |
Other income tax obligations | 4,609 | 3,813 |
Deferred income tax liabilities | 187 | |
Postretirement benefit and pension obligations | 55,308 | 67,158 |
Total liabilities | 95,544 | 110,085 |
Stockholders' equity: | ||
Additional paid-in capital | 55,567 | 55,227 |
Retained earnings | 81,643 | 81,228 |
Accumulated other comprehensive loss | (47,299) | (51,965) |
Total stockholders' equity | 96,965 | 91,513 |
Total liabilities and stockholders’ equity | 192,509 | 201,598 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 6,287 | 6,250 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | $ 767 | $ 773 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Allowance for doubtful accounts | $ 752 | $ 887 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, outstanding (in shares) | 6,286,978 | 6,249,563 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, outstanding (in shares) | 766,623 | 772,742 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Net sales | $ 53,187 | [1] | $ 53,671 | [2] | $ 102,100 | [3] | $ 104,709 | [4] |
Cost of goods sold | 36,365 | 37,672 | 71,364 | 72,858 | ||||
Gross margin | $ 16,822 | $ 15,999 | $ 30,736 | $ 31,851 | ||||
% of Net sales | 31.60% | 29.80% | 30.10% | 30.40% | ||||
Selling, general and administrative expenses | $ 14,942 | $ 14,796 | $ 30,363 | $ 30,469 | ||||
Restructuring charges | 51 | 394 | ||||||
Operating income (loss) | 1,829 | 1,203 | (21) | 1,382 | ||||
Other income (expense) | (312) | (211) | (75) | 92 | ||||
Gain on sale of building | 3,089 | |||||||
Income before income taxes | 1,517 | 992 | 2,993 | 1,474 | ||||
Income tax expense | 454 | 534 | 1,171 | 1,194 | ||||
Net income | $ 1,063 | $ 458 | $ 1,822 | $ 280 | ||||
Basic and diluted income per share (in dollars per share) | $ 0.15 | $ 0.07 | $ 0.26 | $ 0.04 | ||||
Weighted average outstanding shares used in per share calculations: | ||||||||
Basic (in shares) | 7,050 | 7,022 | 7,039 | 7,018 | ||||
Diluted (in shares) | 7,068 | 7,043 | 7,068 | 7,050 | ||||
Dividends per share declared (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 | ||||
[1] | Excludes $2,339 of North American segment sales to the International segment and $2,968 of International segment sales to the North American segment. | |||||||
[2] | Excludes $2,333 of North American segment sales to the International segment and $2,416 of International segment sales to the North American segment. | |||||||
[3] | Excludes $4,696 of North American segment sales to the International segment and $6,049 of International segment sales to the North American segment. | |||||||
[4] | Excludes $4,242 of North American segment sales to the International segment and $4,679 of International segment sales to the North American segment. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 1,063 | $ 458 | $ 1,822 | $ 280 |
Other comprehensive income (loss): | ||||
Translation gain (loss) | (988) | 102 | (1,756) | (9,678) |
Pension and postretirement plans, net of tax of $3,958,$0,$3,958 and $0 respectively | 6,469 | 6,422 | ||
Other comprehensive income (loss) | 5,481 | 102 | 4,666 | (9,678) |
Total comprehensive income (loss) | $ 6,544 | $ 560 | $ 6,488 | $ (9,398) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension and postretirement plans, tax | $ 3,958 | $ 0 | $ 3,958 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Accumulated balance consists of: | ||||||
$ (51,965) | ||||||
Balance at Jun. 30, 2016 | $ 6,250 | $ 773 | $ 55,227 | $ 81,228 | $ (51,965) | 91,513 |
Total comprehensive income | 1,822 | 4,666 | 6,488 | |||
Dividends ($0.20 per share) | (1,407) | (1,407) | ||||
Repurchase of shares | (3) | (30) | (33) | |||
Issuance of stock | 11 | 7 | 163 | 181 | ||
Stock-based compensation | 16 | 207 | 223 | |||
Conversion | 10 | (10) | ||||
Balance at Dec. 31, 2016 | $ 6,287 | $ 767 | $ 55,567 | $ 81,643 | (47,299) | 96,965 |
Accumulated balance consists of: | ||||||
Translation loss | (43,642) | |||||
Pension and postretirement plans, net of taxes | (3,657) | |||||
$ (47,299) | $ (47,299) |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) | 6 Months Ended |
Dec. 31, 2016$ / shares | |
Retained Earnings [Member] | |
Dividends per share declared (in dollars per share) | $ 0.20 |
Dividends per share declared (in dollars per share) | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 1,822 | $ 280 |
Non-cash operating activities: | ||
Gain on sale of building | (3,089) | |
Depreciation | 2,732 | 3,052 |
Amortization | 732 | 667 |
Stock-based compensation | 223 | 227 |
Net long-term tax obligations | 842 | 320 |
Deferred taxes | 413 | (1) |
Postretirement benefit and pension obligations | 1,743 | 1,561 |
Income from equity method investment | (43) | (73) |
Working capital changes: | ||
Accounts receivable | 1,849 | 4,666 |
Inventories | (3,389) | (661) |
Other current assets | (1,563) | (235) |
Other current liabilities | (1,026) | (1,307) |
Prepaid pension expense | (2,418) | (2,238) |
Other | 188 | (79) |
Net cash provided by (used in) operating activities | (984) | 6,179 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (2,412) | (3,611) |
Software development | (368) | (325) |
Proceeds from sale of investments | 7,621 | |
Proceeds from sale of building | 3,321 | |
Net cash provided by investing activities | 541 | 3,685 |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 750 | |
Long-term debt repayments | (762) | (1,448) |
Proceeds from common stock issued | 181 | 217 |
Shares repurchased | (33) | (297) |
Dividends paid | (1,407) | (1,407) |
Net cash used in financing activities | (2,021) | (2,185) |
Effect of exchange rate changes on cash | (603) | (407) |
Net increase (decrease) in cash | (3,067) | 7,272 |
Cash, beginning of period | 19,794 | 11,108 |
Cash, end of period | 16,727 | 18,380 |
Supplemental cash flow information: | ||
Interest paid | 302 | 349 |
Income taxes paid, net | $ 113 | $ 557 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Summary of Significant Account Policies | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Note 1: The unaudited interim financial statements as of and for the three six December 31, 2016 10 June 30, 2016. may The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect amounts reported in the consolidated financial statements and accompanying notes. Note 2 10 June 30, 2016 |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 2: Recent A ccounting Pronouncements In May 2014, December 15, 2017 December 15, 2016, July 1, 2018. In July 2015, 2015 11, 330): 330 2015 11 December 15, 2016. 2015 11 In February 2016, 2016 02, 842)”. December 15, 2018, 2016 02 |
Note 3 - Stock-based Compensati
Note 3 - Stock-based Compensation | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 3: On September 5, 2012, 2012 “2012 2012 October 17, 2012. 2012 2012 500,000 Options granted vest in periods ranging from one three ten one three December 31, 2016, 20,000 105,634 346,600 2012 December 31, 2016. For stock option grants the fair value of each grant is estimated at the date of grant using the Binomial Options pricing model. The Binomial Options pricing model utilizes assumptions related to stock volatility, the risk-free interest rate, the dividend yield, and employee exercise behavior. Expected volatilities utilized in the model are based on the historic volatility of the Company’s stock price. The risk free interest rate is derived from the U.S. Treasury Yield curve in effect at the time of the grant. The expected life is determined using the average of the vesting period and contractual term of the options (Simplified Method). No stock options were granted during the six December 31, 2016 2015. The weighted average contractual term for stock options outstanding as of December 31, 2016 6 December 31, 2016 December 31, 2016 20,000. In recognizing stock compensation expense for the 2012 The Company accounts for stock options and RSU awards by recognizing the expense of the grant date fair value ratably over vesting periods generally ranging from one three There were 45,000 $10.86 six December 31, 2016. 12,733 six December 31, 2016. December 31, 2016 $1.0 December 31, 2016 On February 5, 2013, 2013 “2013 4975 (7) 1986, Compensation expense related to all stock based plans for the six December 31, 2016 2015 $0.2 $0.2 December 31, 2016, $1.4 $1.1 $0.3 1.6 |
Note 4 - Inventories
Note 4 - Inventories | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4: Inventories consist of the following (in thousands): 12/31/2016 6/30/2016 Raw material and supplies $ 28,568 $ 29,209 Goods in process and finished parts 15,394 16,459 Finished goods 42,584 39,449 86,546 85,117 LIFO Reserve (28,342 ) (28,796 ) Inventories $ 58,204 $ 56,321 LIFO inventories were $9.7 $10.5 December 31, 2016 June 30, 2016, $28.3 $28.8 $0.5 six December 31, 2016 $0.4 six December 31, 2015. |
Note 5 - Goodwill and Intangibl
Note 5 - Goodwill and Intangible Assets | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 5: The Company’s acquisition of Bytewise in 2011 2011 08 October 1, 2016 October 1, 2016. Amortizable intangible assets consist of the following (in thousands): 12/31/2016 6/30/2016 Non-compete agreement $ 600 $ 600 Trademarks and trade names 1,480 1,480 Completed technology 2,358 2,358 Customer relationships 4,950 4,950 Software development 2,770 2,402 Other intangible assets 325 325 Total 12,483 12,115 Accumulated amortization (6,357 ) (5,625 ) Total net balance $ 6,126 $ 6,490 Amortizable intangible assets are being amortized on a straight-line basis over the period of expected economic benefit. The estimated useful lives of the intangible assets subject to amortization are 14 8 10 8 5 The estimated aggregate amortization expense for the remainder of fiscal 2017 five 2017 (Remainder of year) $ 862 2018 1,587 2019 1,491 2020 984 2021 581 2022 262 Thereafter 359 |
Note 6 - Pension and Post-retir
Note 6 - Pension and Post-retirement Benefits | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 6: The Company has two one 2009. On December 21, 2016, December 31, 2016. December 31, 2016. The amendment of the defined benefit pension plan triggered a pension curtailment which required a remeasurement of the Plan's obligation as of December 31, 2016. $6.9 3.77% 4.31%, $4.2 Reconciliation of Funded Status of U.S. Defined Benefit Pension Plan as of December 31, 2016 Benefit obligation as of June 30, 2016 $ 130,863 Service cost 1,405 Interest cost 2,457 Benefits paid (2,374 ) Actuarial (gain)/loss (8,443 ) Benefit obligation prior to curtailment 123,908 Effect of curtailment (4,170 ) Benefit obligation as of December 31, 2016 119,738 Fair value of assets 80,989 Funded status as of December 31, 2016 $ (38,749 ) Net periodic benefit costs for all of the Company's defined benefit pension plans consist of the following (in thousands): Three Months Ended Six Months Ended 12/31/2016 (Unaudited) 12/31/2015 12/31/2016 (Unaudited) 12/31/2015 Service cost $ 614 $ 715 $ 1,405 $ 1,429 Interest cost 1,533 1,759 3,085 3,527 Expected return on plan assets (1,288 ) (1,585 ) (2,594 ) (3,179 ) Amortization of net loss 68 12 96 26 $ 927 $ 901 $ 1,992 $ 1,803 Net periodic benefit costs for the Company's Postretirement Medical Plan consists of the following (in thousands): Three Months Ended Six Months Ended 12/31/2016 (Unaudited) 12/31/2015 12/31/2016 (Unaudited) 12/31/2015 Service cost $ 24 $ 27 $ 47 $ 53 Interest cost 68 72 136 144 Amortization of prior service credit (169 ) (196 ) (337 ) (391 ) Amortization of net loss 30 3 60 7 $ (47 ) $ (94 ) $ (94 ) $ (187 ) For the six December 31, 2016, $1.9 $0.5 $3.0 2017. The Company’s pension plans use fair value as the market-related value of plan assets and recognize net actuarial gains or losses in excess of ten (10%) 10% |
Note 7 - Debt
Note 7 - Debt | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 7: Debt is comprised of the following (in thousands): 12/31/2016 6/30/2016 Notes payable and current maturities of long term debt Loan and Security Agreement $ 1,578 $ 1,543 Long-term debt Loan and Security Agreement 16,311 17,109 $ 17,889 $ 18,652 The Company amended its Loan and Security Agreement, which includes a Line of Credit and a Term Loan, in January 2015 April 25, 2015. may $23.0 April 30, 2018 1.5%. six December 31, 2016 2015 2.4% 2.1%, three December 31, 2016, $9.4 On November 22, 2011, $15.5 ten 4.5% $160,640. $8.5 December 31, 2016. The material financial covenants of the amended Loan and Security Agreement are: 1) 2.25 1.2) $15.0 3) 1.25 1 4) $10.0 December 31, 2016. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 8: The Company is subject to U.S. federal income tax and various state, local and foreign income taxes in numerous jurisdictions. The Company’s domestic and foreign tax liabilities are subject to the allocation of revenues and expenses in different jurisdictions and the timing of recognizing revenues and expenses. Additionally, the amount of income taxes paid is subject to the Company’s interpretation of applicable tax laws in the jurisdictions in which it files. The Company provides for income taxes on an interim basis based on an estimate of the effective tax rate for the year. This estimate is reassessed on a quarterly basis. Discrete tax items are accounted for in the quarterly period in which they occur. The effective tax rate for the second 2017 29.9% second 2016, 53.8%. first 2017, 39.1% first 2016, 81.0%. The tax rate in the second 2017 $298,000 first 2016, first 2016, $200,000. U.S. Federal tax returns through fiscal 2012 2012 December 31, 2016, may 2011 2015. twelve Accounting for income taxes requires estimates of future benefits and tax liabilities. Due to the temporary differences in the timing of recognition of items included in income for accounting and tax purposes, deferred tax assets or liabilities are recorded to reflect the impact arising from these differences on future tax payments. With respect to recorded tax assets, the Company assesses the likelihood that the asset will be realized by addressing the positive and negative evidence to determine whether realization is more likely than not to occur. If realization is in doubt because of uncertainty regarding future profitability, the Company provides a valuation allowance related to the asset to the extent that it is more likely than not that the deferred tax asset will not be realized. Should any significant changes in the tax law or the estimate of the necessary valuation allowance occur the Company would record the impact of the change, which could have a material effect on the Company’s financial position. No valuation allowance has been recorded for the Company’s domestic deferred tax assets related to temporary differences in items included in taxable income. The Company continues to believe that due to forecasted future taxable income and certain tax planning strategies available, it is more likely than not that it will be able to utilize the tax benefit provided by those differences. In the U.S., there is a valuation allowance against foreign tax credits to the extent they are limited. In certain other countries where company operations are in a loss position, the deferred tax assets for tax loss carryforwards and other temporary differences are fully offset by a valuation allowance. In November 2015, 2015 17 2015 17") 740 2015 17 2015 17 first 2017. In March 2016, 2016 09, 718), December 15, 2016, first 2017. |
Note 9 - Contingencies
Note 9 - Contingencies | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 9: The Company is involved in certain legal matters which arise in the normal course of business. These matters are not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. |
Note 10 - Segment Information
Note 10 - Segment Information | 6 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 10. The segment information and the accounting policies of each segment are the same as those described in the notes to the consolidated financial statements entitled “Financial Information by Segment & Geographic Area” included in our Annual Report on Form 10 June 30, 2016. two North American Operations International Operations Unallocated Total Three Months ended December 31, 2016 Sales 1 $ 32,151 $ 21,036 $ — $ 53,187 Operating Income (Loss) $ 2,805 $ 636 $ (1,612 ) $ 1,829 Three Months ended December 31, 2015 Sales 2 $ 34,304 $ 19,367 $ — $ 53,671 Operating Income (Loss) $ 2,804 $ (423 ) $ (1,178 ) $ 1,203 1. Excludes $2,339 $2,968 2. Excludes $2,333 $2,416 North American Operations International Operations Unallocated Total Six Months ended December 31, 2016 Sales 3 $ 60,554 $ 41,546 $ — $ 102,100 Operating Income (Loss) $ 2,957 $ 550 $ (3,528 ) $ (21 ) Six Months ended December 31, 2015 Sales 4 $ 66,715 $ 37,994 $ — $ 104,709 Operating Income (Loss) $ 5,630 $ (1,471 ) $ (2,777 ) $ 1,382 3. Excludes $4,696 $6,049 4. Excludes $4,242 $4,679 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | The unaudited interim financial statements as of and for the three six December 31, 2016 10 June 30, 2016. may The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect amounts reported in the consolidated financial statements and accompanying notes. Note 2 10 June 30, 2016 |
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2014, December 15, 2017 December 15, 2016, July 1, 2018. In July 2015, 2015 11, 330): 330 2015 11 December 15, 2016. 2015 11 In February 2016, 2016 02, 842)”. December 15, 2018, 2016 02 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 12/31/2016 6/30/2016 Raw material and supplies $ 28,568 $ 29,209 Goods in process and finished parts 15,394 16,459 Finished goods 42,584 39,449 86,546 85,117 LIFO Reserve (28,342 ) (28,796 ) Inventories $ 58,204 $ 56,321 |
Note 5 - Goodwill and Intangi22
Note 5 - Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 12/31/2016 6/30/2016 Non-compete agreement $ 600 $ 600 Trademarks and trade names 1,480 1,480 Completed technology 2,358 2,358 Customer relationships 4,950 4,950 Software development 2,770 2,402 Other intangible assets 325 325 Total 12,483 12,115 Accumulated amortization (6,357 ) (5,625 ) Total net balance $ 6,126 $ 6,490 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2017 (Remainder of year) $ 862 2018 1,587 2019 1,491 2020 984 2021 581 2022 262 Thereafter 359 |
Note 6 - Pension and Post-ret23
Note 6 - Pension and Post-retirement Benefits (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | Reconciliation of Funded Status of U.S. Defined Benefit Pension Plan as of December 31, 2016 Benefit obligation as of June 30, 2016 $ 130,863 Service cost 1,405 Interest cost 2,457 Benefits paid (2,374 ) Actuarial (gain)/loss (8,443 ) Benefit obligation prior to curtailment 123,908 Effect of curtailment (4,170 ) Benefit obligation as of December 31, 2016 119,738 Fair value of assets 80,989 Funded status as of December 31, 2016 $ (38,749 ) |
Post Retirement Medical and Life Insurance Plan [Member] | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended Six Months Ended 12/31/2016 (Unaudited) 12/31/2015 12/31/2016 (Unaudited) 12/31/2015 Service cost $ 24 $ 27 $ 47 $ 53 Interest cost 68 72 136 144 Amortization of prior service credit (169 ) (196 ) (337 ) (391 ) Amortization of net loss 30 3 60 7 $ (47 ) $ (94 ) $ (94 ) $ (187 ) |
Pension Plan [Member] | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended Six Months Ended 12/31/2016 (Unaudited) 12/31/2015 12/31/2016 (Unaudited) 12/31/2015 Service cost $ 614 $ 715 $ 1,405 $ 1,429 Interest cost 1,533 1,759 3,085 3,527 Expected return on plan assets (1,288 ) (1,585 ) (2,594 ) (3,179 ) Amortization of net loss 68 12 96 26 $ 927 $ 901 $ 1,992 $ 1,803 |
Note 7 - Debt (Tables)
Note 7 - Debt (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | 12/31/2016 6/30/2016 Notes payable and current maturities of long term debt Loan and Security Agreement $ 1,578 $ 1,543 Long-term debt Loan and Security Agreement 16,311 17,109 $ 17,889 $ 18,652 |
Note 10 - Segment Information (
Note 10 - Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | North American Operations International Operations Unallocated Total Three Months ended December 31, 2016 Sales 1 $ 32,151 $ 21,036 $ — $ 53,187 Operating Income (Loss) $ 2,805 $ 636 $ (1,612 ) $ 1,829 Three Months ended December 31, 2015 Sales 2 $ 34,304 $ 19,367 $ — $ 53,671 Operating Income (Loss) $ 2,804 $ (423 ) $ (1,178 ) $ 1,203 North American Operations International Operations Unallocated Total Six Months ended December 31, 2016 Sales 3 $ 60,554 $ 41,546 $ — $ 102,100 Operating Income (Loss) $ 2,957 $ 550 $ (3,528 ) $ (21 ) Six Months ended December 31, 2015 Sales 4 $ 66,715 $ 37,994 $ — $ 104,709 Operating Income (Loss) $ 5,630 $ (1,471 ) $ (2,777 ) $ 1,382 |
Note 3 - Stock-based Compensa26
Note 3 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | |
The 2012 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 346,600 | |
Allocated Share-based Compensation Expense | $ 0.2 | $ 0.2 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.3 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 219 days | |
The 2012 Stock Incentive Plan [Member] | Total Unrecognized Compensation Including Portion Relating to Grants Not Expected to Be Awarded [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 1 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 1.4 | |
The 2012 Stock Incentive Plan [Member] | Portion Relating to RSU Grants Not Expected to be Awarded [Member] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1.1 | |
Employee Stock Option [Member] | The 2012 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 20,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 105,634 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 20,000 | |
Employee Stock Option [Member] | Minimum [Member] | The 2012 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |
Employee Stock Option [Member] | Maximum [Member] | The 2012 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted Stock Units (RSUs) [Member] | The 2012 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 45,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.86 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 12,733 | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | The 2012 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | The 2012 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Note 4 - Inventories (Details T
Note 4 - Inventories (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
LIFO Inventory Amount | $ 9.7 | $ 10.5 | |
Inventory Difference Using FIFO Basis | 28.3 | $ 28.8 | |
Cost of Sales [Member] | |||
Inventory, LIFO Reserve, Effect on Income, Net | $ 0.5 | $ 0.4 |
Note 4 - Inventories - Inventor
Note 4 - Inventories - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Raw material and supplies | $ 28,568 | $ 29,209 |
Goods in process and finished parts | 15,394 | 16,459 |
Finished goods | 42,584 | 39,449 |
86,546 | 85,117 | |
LIFO Reserve | (28,342) | (28,796) |
Inventories | $ 58,204 | $ 56,321 |
Note 5 - Goodwill and Intangi29
Note 5 - Goodwill and Intangible Assets (Details Textual) | 6 Months Ended |
Dec. 31, 2016 | |
Trademarks and Trade Names [Member] | |
Finite-Lived Intangible Asset, Useful Life | 14 years |
Noncompete Agreements [Member] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Completed Technology [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Customer Relationships [Member] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Software Developement [Member] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Note 5 - Goodwill and Intangi30
Note 5 - Goodwill and Intangible Assets - Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Intangible assets, gross | $ 12,483 | $ 12,115 |
Accumulated amortization | (6,357) | (5,625) |
Total net balance | 6,126 | 6,490 |
Noncompete Agreements [Member] | ||
Intangible assets, gross | 600 | 600 |
Trademarks and Trade Names [Member] | ||
Intangible assets, gross | 1,480 | 1,480 |
Completed Technology [Member] | ||
Intangible assets, gross | 2,358 | 2,358 |
Customer Relationships [Member] | ||
Intangible assets, gross | 4,950 | 4,950 |
Software Developement [Member] | ||
Intangible assets, gross | 2,770 | 2,402 |
Other Intangible Assets [Member] | ||
Intangible assets, gross | $ 325 | $ 325 |
Note 5 - Goodwill and Intangi31
Note 5 - Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2017 (Remainder of year) | $ 862 |
2,018 | 1,587 |
2,019 | 1,491 |
2,020 | 984 |
2,021 | 581 |
2,022 | 262 |
Thereafter | $ 359 |
Note 6 - Pension and Post-ret32
Note 6 - Pension and Post-retirement Benefits (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 20, 2015 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 3,000 | |
United States Pension Plan of US Entity [Member] | ||
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, before Tax | $ 6,900 | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.31% | 3.77% |
Defined Benefit Plan, Curtailments | $ 4,170 | |
Defined Benefit Plan, Contributions by Employer | 1,900 | |
UK Plan [Member] | ||
Defined Benefit Plan, Contributions by Employer | $ 500 |
Note 6 - Pension and Post-ret33
Note 6 - Pension and Post-retirement Benefits - Changed in Benefit Obligation (Details) - United States Pension Plan of US Entity [Member] - USD ($) $ in Thousands | 6 Months Ended |
Dec. 31, 2016 | |
Benefit obligation as of June 30, 2016 | $ 130,863 |
Service cost | 1,405 |
Interest cost | 2,457 |
Benefits paid | (2,374) |
Actuarial (gain)/loss | (8,443) |
Benefit obligation prior to curtailment | 123,908 |
Effect of curtailment | (4,170) |
Benefit obligation as of December 31, 2016 | 119,738 |
Fair value of assets | 80,989 |
Funded status as of December 31, 2016 | $ (38,749) |
Note 6 - Pension and Post-ret34
Note 6 - Pension and Post-retirement Benefits - Net Periodic Costs (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Service cost | $ 614 | $ 715 | $ 1,405 | $ 1,429 |
Interest cost | 1,533 | 1,759 | 3,085 | 3,527 |
Expected return on plan assets | (1,288) | (1,585) | (2,594) | (3,179) |
Amortization of net loss | 68 | 12 | 96 | 26 |
$ 927 | $ 901 | $ 1,992 | $ 1,803 |
Note 6 - Pensions and Post-reti
Note 6 - Pensions and Post-retirement Benefits - Net Periodic Benefit Costs for Postretirement Medical Plan (Details) - Post Retirement Medical and Life Insurance Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Service cost | $ 24 | $ 27 | $ 47 | $ 53 |
Interest cost | 68 | 72 | 136 | 144 |
Amortization of prior service credit | (169) | (196) | (337) | (391) |
Amortization of net loss | 30 | 3 | 60 | 7 |
$ (47) | $ (94) | $ (94) | $ (187) |
Note 7 - Debt (Details Textual)
Note 7 - Debt (Details Textual) | Nov. 22, 2011USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 23,000,000 | ||
Line of Credit Facility, Interest Rate During Period | 2.40% | 2.10% | |
Long-term Line of Credit | $ 9,400,000 | ||
Minimum Consolidated Cash and Liquid Investments Pursuant to New Loan and Security Agreement | 10,000,000 | ||
Maximum [Member] | |||
Annual Capital Expenditures | $ 15,000,000 | ||
Maximum [Member] | Amended Agreement [Member] | |||
Current Funded Debt to EBITDA Ratio | 2.25 | ||
Minimum [Member] | |||
Debt Service Coverage Rate | 1.25 | ||
Term Loan [Member] | |||
Long-term Line of Credit | $ 8,500,000 | ||
Debt Instrument, Face Amount | $ 15,500,000 | ||
Debt Instrument, Term | 10 years | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
Line of Credit Facility, Periodic Payment | $ 160,640 | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Note 7 - Debt - Debt Schedule (
Note 7 - Debt - Debt Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Notes payable and current maturities of long term debt | ||
Loan and Security Agreement | $ 1,578 | $ 1,543 |
Long-term debt | ||
Loan and Security Agreement | 16,311 | 17,109 |
$ 17,889 | $ 18,652 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent | 29.90% | 53.80% | 39.10% | 81.00% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 298,000 | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount, Return to Provision Adjustment | $ 200,000 |
Note 10 - Segment Information39
Note 10 - Segment Information (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |||||
Number of Reportable Segments | 2 | |||||||
Revenue, Net | $ 53,187 | [1] | $ 53,671 | [2] | $ 102,100 | [3] | $ 104,709 | [4] |
North American Segment [Member] | ||||||||
Revenue, Net | 32,151 | [1] | 34,304 | [2] | 60,554 | [3] | 66,715 | [4] |
North American Segment [Member] | Intersegment Eliminations [Member] | ||||||||
Revenue, Net | 2,339 | 2,333 | 4,696 | 4,242 | ||||
International Segment [Member] | ||||||||
Revenue, Net | 21,036 | [1] | 19,367 | [2] | 41,546 | [3] | 37,994 | [4] |
International Segment [Member] | Intersegment Eliminations [Member] | ||||||||
Revenue, Net | $ 2,968 | $ 2,416 | $ 6,049 | $ 4,679 | ||||
[1] | Excludes $2,339 of North American segment sales to the International segment and $2,968 of International segment sales to the North American segment. | |||||||
[2] | Excludes $2,333 of North American segment sales to the International segment and $2,416 of International segment sales to the North American segment. | |||||||
[3] | Excludes $4,696 of North American segment sales to the International segment and $6,049 of International segment sales to the North American segment. | |||||||
[4] | Excludes $4,242 of North American segment sales to the International segment and $4,679 of International segment sales to the North American segment. |
Note 10 - Segment Information -
Note 10 - Segment Information - Financial Results for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Sales | $ 53,187 | [1] | $ 53,671 | [2] | $ 102,100 | [3] | $ 104,709 | [4] |
Operating Income (Loss) | 1,829 | 1,203 | (21) | 1,382 | ||||
North American Segment [Member] | ||||||||
Sales | 32,151 | [1] | 34,304 | [2] | 60,554 | [3] | 66,715 | [4] |
Operating Income (Loss) | 2,805 | 2,804 | 2,957 | 5,630 | ||||
International Segment [Member] | ||||||||
Sales | 21,036 | [1] | 19,367 | [2] | 41,546 | [3] | 37,994 | [4] |
Operating Income (Loss) | 636 | (423) | 550 | (1,471) | ||||
Unallocated [Member] | ||||||||
Sales | [1] | [2] | [3] | [4] | ||||
Operating Income (Loss) | $ (1,612) | $ (1,178) | $ (3,528) | $ (2,777) | ||||
[1] | Excludes $2,339 of North American segment sales to the International segment and $2,968 of International segment sales to the North American segment. | |||||||
[2] | Excludes $2,333 of North American segment sales to the International segment and $2,416 of International segment sales to the North American segment. | |||||||
[3] | Excludes $4,696 of North American segment sales to the International segment and $6,049 of International segment sales to the North American segment. | |||||||
[4] | Excludes $4,242 of North American segment sales to the International segment and $4,679 of International segment sales to the North American segment. |