Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | Apr. 27, 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 | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 6,296,769 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 761,630 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
ASSETS | ||
Cash | $ 17,061 | $ 19,794 |
Accounts receivable (less allowance for doubtful accounts of $773 and $887, respectively) | 28,006 | 34,367 |
Inventories | 58,225 | 56,321 |
Current deferred income tax assets | 4,518 | |
Prepaid expenses and other current assets | 7,381 | 5,911 |
Total current assets | 110,673 | 120,911 |
Property, plant and equipment, net | 39,963 | 41,010 |
Income taxes receivable | 2,547 | 2,655 |
Deferred income tax assets, net of current portion | 24,198 | 25,284 |
Intangible assets, net | 8,370 | 6,490 |
Goodwill | 5,652 | 3,034 |
Other assets | 2 | 2,214 |
Total assets | 191,405 | 201,598 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Notes payable and current maturities of long-term debt | 1,596 | 1,543 |
Accounts payable | 8,278 | 8,981 |
Accrued expenses | 5,016 | 6,372 |
Accrued compensation | 4,441 | 4,922 |
Total current liabilities | 19,331 | 21,818 |
Long-term debt, net of current portion | 15,904 | 17,109 |
Other income tax obligations | 3,773 | 3,813 |
Deferred income tax liabilities | 187 | |
Postretirement benefit and pension obligations | 53,804 | 67,158 |
Other non-current liabilities | 1,569 | |
Total liabilities | 94,381 | 110,085 |
Stockholders' equity: | ||
Additional paid-in capital | 55,702 | 55,227 |
Retained earnings | 80,151 | 81,228 |
Accumulated other comprehensive loss | (45,888) | (51,965) |
Total stockholders' equity | 97,024 | 91,513 |
Total liabilities and stockholders’ equity | 191,405 | 201,598 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 6,297 | 6,250 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | $ 762 | $ 773 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Allowance for doubtful accounts | $ 773 | $ 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) | 6,296,769 | 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) | 761,630 | 772,742 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |||||
Net sales | $ 50,670 | [1] | $ 50,329 | [2] | $ 152,770 | [3] | $ 155,038 | [4] |
Cost of goods sold | 36,191 | 35,596 | 107,555 | 108,454 | ||||
Gross margin | $ 14,479 | $ 14,733 | $ 45,215 | $ 46,584 | ||||
% of Net sales | 28.60% | 29.30% | 29.60% | 30.00% | ||||
Selling, general and administrative expenses | $ 15,326 | $ 13,819 | $ 45,689 | $ 44,288 | ||||
Restructuring charges | 6 | 400 | ||||||
Operating income (loss) | (853) | 914 | (874) | 2,296 | ||||
Other income (expense) | (391) | 285 | (466) | 377 | ||||
Gain on sale of building | 3,089 | |||||||
Income (loss) before income taxes | (1,244) | 1,199 | 1,749 | 2,673 | ||||
Income tax expense (benefit) | (458) | 602 | 713 | 1,796 | ||||
Net income (loss) | $ (786) | $ 597 | $ 1,036 | $ 877 | ||||
Basic income (loss) per share (in dollars per share) | $ (0.11) | $ 0.09 | $ 0.15 | $ 0.13 | ||||
Diluted income (loss) per share (in dollars per share) | $ (0.11) | $ 0.08 | $ 0.15 | $ 0.12 | ||||
Weighted average outstanding shares used in per share calculations: | ||||||||
Basic (in shares) | 7,058 | 7,013 | 7,046 | 7,016 | ||||
Diluted (in shares) | 7,058 | 7,031 | 7,078 | 7,045 | ||||
Dividends (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 | ||||
[1] | Excludes $1,493 of North American segment sales to the International segment and $2,536 of International segment sales to the North American segment. | |||||||
[2] | Excludes $2,238 of North American segment sales to the International segment and $2,120 of International segment sales to the North American segment. | |||||||
[3] | Excludes $6,189 of North American segment sales to the International segment and $8,585 of International segment sales to the North American segment. | |||||||
[4] | Excludes $6,480 of North American segment sales to the International segment and $6,799 of International segment sales to the North American segment. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net income | $ (786) | $ 597 | $ 1,036 | $ 877 |
Other comprehensive income (loss): | ||||
Translation gain (loss) | 1,456 | 2,906 | (300) | (6,772) |
Pension and postretirement plans, net of tax of $0,$0,$3,958 and $0 respectively | (45) | 6,377 | ||
Other comprehensive income (loss) | 1,411 | 2,906 | 6,077 | (6,772) |
Total comprehensive income (loss) | $ 625 | $ 3,503 | $ 7,113 | $ (5,895) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Pension and postretirement plans, tax | $ 0 | $ 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 | 1,036 | 6,077 | 7,113 | |||
Dividends ($0.30 per share) | (2,113) | (2,113) | ||||
Repurchase of shares | (5) | (46) | (51) | |||
Issuance of stock | 18 | 7 | 217 | 242 | ||
Stock-based compensation | 16 | 304 | 320 | |||
Conversion | 13 | (13) | ||||
Balance at Mar. 31, 2017 | $ 6,297 | $ 762 | $ 55,702 | $ 80,151 | (45,888) | 97,024 |
Accumulated balance consists of: | ||||||
Translation loss | (42,186) | |||||
Pension and postretirement plans, net of taxes | (3,702) | |||||
$ (45,888) | $ (45,888) |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) | 9 Months Ended |
Mar. 31, 2017$ / shares | |
Retained Earnings [Member] | |
Dividends (in dollars per share) | $ 0.30 |
Dividends (in dollars per share) | $ 0.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 1,036 | $ 877 |
Non-cash operating activities: | ||
Gain on sale of building | (3,089) | |
Depreciation | 4,020 | 4,385 |
Amortization | 1,280 | 1,036 |
Stock-based compensation | 320 | 315 |
Net long-term tax obligations | (31) | 627 |
Deferred taxes | 702 | 57 |
Postretirement benefit and pension obligations | 1,916 | 2,342 |
(Income) loss from equity method investment | 223 | (89) |
Working capital changes, net of effects of business acquisition: | ||
Accounts receivable | 6,200 | 4,744 |
Inventories | (2,184) | 1,425 |
Other current assets | (1,501) | 190 |
Other current liabilities | (1,790) | 507 |
Prepaid pension expense | (4,303) | (4,823) |
Other | 222 | 60 |
Net cash provided by operating activities | 3,021 | 11,653 |
Cash flows from investing activities: | ||
Business acquisition, net of cash acquired and long-term liability | (1,324) | |
Additions to property, plant and equipment | (3,478) | (4,048) |
Software development | (750) | (557) |
Proceeds from sale of investments | 7,621 | |
Proceeds from sale of building | 3,321 | |
Net cash provided by (used in) investing activities | (2,231) | 3,016 |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 750 | |
Long-term debt repayments | (1,151) | (1,822) |
Proceeds from common stock issued | 242 | 280 |
Shares repurchased | (51) | (446) |
Dividends paid | (2,113) | (2,108) |
Net cash used in financing activities | (3,073) | (3,346) |
Effect of exchange rate changes on cash | (450) | (200) |
Net increase (decrease) in cash | (2,733) | 11,123 |
Cash, beginning of period | 19,794 | 11,108 |
Cash, end of period | 17,061 | 22,231 |
Supplemental cash flow information: | ||
Interest paid | 474 | 487 |
Income taxes paid, net | $ (213) | $ 732 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Summary of Significant Account Policies | 9 Months Ended |
Mar. 31, 2017 | |
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 nine March 31, 2017 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 | 9 Months Ended |
Mar. 31, 2017 | |
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 In October 2016, 2016 16, 740): within the consolidated entity. The current exception to defer the recognition of any tax impact on the transfer of inventory within the consolidated entity until it is sold to a third December 15, 2017. In January 2017, the FASB issued ASU No. 2017 01, 805) 2017 01 the screen is not met, the amendments in ASU 2017 01 December 15, 2017 2017 01, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company is currently assessing the impact of the adoption of this update on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017 04, 350): 2, 1 December 15, 2019 January 1, 2017. |
Note 3 - Stock-based Compensati
Note 3 - Stock-based Compensation | 9 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017, 20,000 105,634 346,600 2012 March 31, 2017. 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 nine March 31, 2017 2016. The weighted average contractual term for stock options outstanding as of March 31, 2017 5.75 March 31, 2017 March 31, 2017 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 nine March 31, 2017. 12,733 nine March 31, 2017. March 31, 2017 $1.1 March 31, 2017 On February 5, 2013, 2013 “2013 4975 (7) 1986, Compensation expense related to all stock based plans for the nine March 31, 2017 2016 $0.3 $0.3 March 31, 2017, $1.3 $1.1 $0.2 1.4 |
Note 4 - Inventories
Note 4 - Inventories | 9 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4: Inventories consist of the following (in thousands): 3/31/2017 6/30/2016 Raw material and supplies $ 26,919 $ 29,209 Goods in process and finished parts 17,356 16,459 Finished goods 41,220 39,449 85,495 85,117 LIFO Reserve (27,270 ) (28,796 ) Inventories $ 58,225 $ 56,321 LIFO inventories were $7.2 $10.5 March 31, 2017 June 30, 2016, $27.3 $28.8 $1.5 nine March 31, 2017 $0.3 nine March 31, 2016. |
Note 5 - Business Acquisition
Note 5 - Business Acquisition | 9 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 5: In fiscal 2010, $1.5 36% third 2017, $3.6 63% $1.8 $1.8 three $1.6 30% three The acquisition has been accounted for as a business combination and the financial results of the company have been included in our consolidated financial statements as of the date of acquisition. Under the acquisition method of accounting, the purchase price was allocated to net tangible and intangible assets based upon their estimated fair values as of the acquisition date. The Company expects to finalize the valuation in the fourth 2017 . The table below presents the preliminary allocation of the purchase price to the acquired net assets (in thousands): Cash $ 509 Accounts receivable 273 Inventories 243 Other current assets 18 Deferred software development costs 2,397 Fixed assets 47 Goodwill 2,618 Deferred tax liability (647 ) Accounts payable & current liabilities (80 ) Purchase Price (1) $ 5,378 (1) $1,833 1,555 ($1.8 5%) $3,388 63% $5.378 Pro-forma financial information has not been presented for this acquisition because it is not considered material to the Company’s financial position or results of operations. |
Note 6 - Goodwill and Intangibl
Note 6 - Goodwill and Intangible Assets | 9 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 6: The following represents the change in the carrying amount of goodwill for the nine March 31, 2017 Balance at June 30, 2016 $ 3,034 Acquisition of software company 2,618 Balance at March 31, 2017 $ 5,652 The Company’s acquisition of Bytewise in 2011 $3,034. 2011 08 October 1, 2016 October 1, 2016. Amortizable intangible assets consist of the following (in thousands): 3/31/2017 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 5,548 2,402 Other intangible assets 325 325 Total 15,261 12,115 Accumulated amortization (6,891 ) (5,625 ) Total net balance $ 8,370 $ 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) $ 653 2018 2,421 2019 2,186 2020 1,480 2021 872 2022 400 Thereafter 358 |
Note 7 - Pension and Post-retir
Note 7 - Pension and Post-retirement Benefits | 9 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 7: 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 Net periodic benefit costs for all of the Company's defined benefit pension plans consist of the following (in thousands): Three Months Ended Nine Months Ended 3/31/2017 (Unaudited) 3/31/2016 (Unaudited) 3/31/2017 (Unaudited) 3/31/2016 (Unaudited) Service cost $ - $ 714 $ 1,405 $ 2,143 Interest cost 1,574 1,732 4,659 5,259 Expected return on plan assets (1,284 ) (1,560 ) (3,878 ) (4,739 ) Amortization of net loss 6 13 102 39 $ 296 $ 899 $ 2,288 $ 2,702 Net periodic benefit costs for the Company's Postretirement Medical Plan consists of the following (in thousands): Three Months Ended Nine Months Ended 3/31/2017 (Unaudited) 3/31/2016 (Unaudited) 3/31/2017 (Unaudited) 3/31/2016 (Unaudited) Service cost $ 23 $ 26 $ 70 $ 79 Interest cost 67 71 203 215 Amortization of prior service credit (168 ) (195 ) (505 ) (586 ) Amortization of net loss 30 4 90 11 $ (48 ) $ (94 ) $ (142 ) $ (281 ) For the nine March 31, 2017, $3.5 $0.8 $1.1 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 8 - Debt
Note 8 - Debt | 9 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 8 : Debt Debt is comprised of the following (in thousands): 3/31/2017 6/30/2016 Notes payable and current maturities of long term debt Loan and Security Agreement $ 1,596 $ 1,543 Long-term debt Loan and Security Agreement 15,904 17,109 $ 17,500 $ 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%. nine March 31, 2017 2016 2.5% 2.2%, three March 31, 2017, $9.4 On November 22, 2011, $15.5 ten 4.5% $160.6 $8.1 March 31, 2017. 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 March 31, 2017. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 9 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 9: 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 third 2017 36.8% third 2016, 50.2%. first nine 2017, 40.8% first nine 2016, 67.2%. The tax rate in fiscal 2017 $298,000 first 2016, $216,000. U.S. Federal tax returns through fiscal 2013 2014 March 31, 2017, may 2011 2016. twelve $931,000. 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 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 10 - Contingencies
Note 10 - Contingencies | 9 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 10: 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 11 - Segment Information
Note 11 - Segment Information | 9 Months Ended |
Mar. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 11 . Segment Information 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 March 31, 2017 Sales 1 $ 31,791 $ 18,879 $ $ 50,670 Operating Income (Loss) $ 1,563 $ (693 ) $ (1,723 ) $ (853 ) Three Months ended March 31, 2016 Sales 2 $ 32,473 $ 17,856 $ $ 50,329 Operating Income (Loss) $ 2,542 $ (112 ) $ (1,515 ) $ 914 1. Excludes $1,493 $2,536 2. Excludes $2,238 $2,120 North American Operations International Operations Unallocated Total Nine Months ended March 31, 2017 Sales 3 $ 92,345 $ 60,425 $ $ 152,770 Operating Income (Loss) $ 4,520 $ (143 ) $ (5,251 ) $ (874 ) Nine Months ended March 31, 2016 Sales 4 $ 99,188 $ 55,850 $ $ 155,038 Operating Income (Loss) $ 8,172 $ (1,583 ) $ (4,292 ) $ 2,296 3. Excludes $6,189 $8,585 4. Excludes $6,480 $6,799 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 3/31/2017 6/30/2016 Raw material and supplies $ 26,919 $ 29,209 Goods in process and finished parts 17,356 16,459 Finished goods 41,220 39,449 85,495 85,117 LIFO Reserve (27,270 ) (28,796 ) Inventories $ 58,225 $ 56,321 |
Note 5 - Business Acquisition (
Note 5 - Business Acquisition (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash $ 509 Accounts receivable 273 Inventories 243 Other current assets 18 Deferred software development costs 2,397 Fixed assets 47 Goodwill 2,618 Deferred tax liability (647 ) Accounts payable & current liabilities (80 ) Purchase Price (1) $ 5,378 |
Note 6 - Goodwill and Intangi23
Note 6 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Balance at June 30, 2016 $ 3,034 Acquisition of software company 2,618 Balance at March 31, 2017 $ 5,652 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 3/31/2017 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 5,548 2,402 Other intangible assets 325 325 Total 15,261 12,115 Accumulated amortization (6,891 ) (5,625 ) Total net balance $ 8,370 $ 6,490 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2017 (Remainder of year) $ 653 2018 2,421 2019 2,186 2020 1,480 2021 872 2022 400 Thereafter 358 |
Note 7 - Pension and Post-ret24
Note 7 - Pension and Post-retirement Benefits (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended Nine Months Ended 3/31/2017 (Unaudited) 3/31/2016 (Unaudited) 3/31/2017 (Unaudited) 3/31/2016 (Unaudited) Service cost $ - $ 714 $ 1,405 $ 2,143 Interest cost 1,574 1,732 4,659 5,259 Expected return on plan assets (1,284 ) (1,560 ) (3,878 ) (4,739 ) Amortization of net loss 6 13 102 39 $ 296 $ 899 $ 2,288 $ 2,702 Three Months Ended Nine Months Ended 3/31/2017 (Unaudited) 3/31/2016 (Unaudited) 3/31/2017 (Unaudited) 3/31/2016 (Unaudited) Service cost $ 23 $ 26 $ 70 $ 79 Interest cost 67 71 203 215 Amortization of prior service credit (168 ) (195 ) (505 ) (586 ) Amortization of net loss 30 4 90 11 $ (48 ) $ (94 ) $ (142 ) $ (281 ) |
Note 8 - Debt (Tables)
Note 8 - Debt (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | 3/31/2017 6/30/2016 Notes payable and current maturities of long term debt Loan and Security Agreement $ 1,596 $ 1,543 Long-term debt Loan and Security Agreement 15,904 17,109 $ 17,500 $ 18,652 |
Note 11 - Segment Information (
Note 11 - Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | North American Operations International Operations Unallocated Total Three Months ended March 31, 2017 Sales 1 $ 31,791 $ 18,879 $ $ 50,670 Operating Income (Loss) $ 1,563 $ (693 ) $ (1,723 ) $ (853 ) Three Months ended March 31, 2016 Sales 2 $ 32,473 $ 17,856 $ $ 50,329 Operating Income (Loss) $ 2,542 $ (112 ) $ (1,515 ) $ 914 North American Operations International Operations Unallocated Total Nine Months ended March 31, 2017 Sales 3 $ 92,345 $ 60,425 $ $ 152,770 Operating Income (Loss) $ 4,520 $ (143 ) $ (5,251 ) $ (874 ) Nine Months ended March 31, 2016 Sales 4 $ 99,188 $ 55,850 $ $ 155,038 Operating Income (Loss) $ 8,172 $ (1,583 ) $ (4,292 ) $ 2,296 |
Note 3 - Stock-based Compensa27
Note 3 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 273 days | |
Allocated Share-based Compensation Expense | $ 0.3 | $ 0.3 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0.2 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 146 days | |
The 2012 Stock Incentive Plan [Member] | Total Unrecognized Compensation Including Portion Relating to Grants Not Expected to Be Awarded [Member] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1.3 | |
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, Options, Exercisable, Number | 20,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 |
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, Non-Option Equity Instruments, Outstanding, Number | 105,634 | |
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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 1.1 | |
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 | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
LIFO Inventory Amount | $ 7.2 | $ 10.5 | |
Inventory Difference Using FIFO Basis | 27.3 | $ 28.8 | |
Cost of Sales [Member] | |||
Inventory, LIFO Reserve, Effect on Income, Net | $ 1.5 | $ 0.3 |
Note 4 - Inventories - Componen
Note 4 - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Raw material and supplies | $ 26,919 | $ 29,209 |
Goods in process and finished parts | 17,356 | 16,459 |
Finished goods | 41,220 | 39,449 |
85,495 | 85,117 | |
LIFO Reserve | (27,270) | (28,796) |
Inventories | $ 58,225 | $ 56,321 |
Note 5 - Business Acquisition30
Note 5 - Business Acquisition (Details Textual) - Private Software Company [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jun. 30, 2010 | |
Business Combination, Consideration Transferred | $ 3.6 | $ 1.5 |
Business Acquisition, Percentage of Voting Interests Acquired | 63.00% | 36.00% |
Payments to Acquire Businesses, Gross | $ 1.8 | |
Business Combination, Consideration Transferred, Liabilities Incurred | $ 1.8 | |
Business Combination, Consideration Transferred, Subsequent Period | 3 years | |
Business Combination, Consideration Transferred, Liabilities Incurred, Discounted | $ 1.6 | |
Business Combination, Operating Profits, Percentage | 30.00% | |
Business Combination, Operating Profits, Term | 3 years |
Note 5 - Business Acquisition -
Note 5 - Business Acquisition - Allocation of the Purchase Price to the Acquired Net Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Feb. 02, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Nov. 22, 2011 | |
Goodwill | $ 5,652 | $ 3,034 | $ 3,034 | $ 3,034 | ||
Private Software Company [Member] | ||||||
Cash | $ 509 | |||||
Accounts receivable | 273 | |||||
Inventories | 243 | |||||
Other current assets | 18 | |||||
Deferred software development costs | 2,397 | |||||
Fixed assets | 47 | |||||
Goodwill | 2,618 | |||||
Deferred tax liability | (647) | |||||
Accounts payable & current liabilities | (80) | |||||
Purchase Price (1) | [1] | $ 5,378 | ||||
[1] | $1,833 + 1,555 ($1.8 million discounted at 5%) = $3,388 purchase price divided by 63% = $5.378 |
Note 6 - Goodwill and Intangi32
Note 6 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Nov. 22, 2011 | |
Goodwill | $ 5,652 | $ 3,034 | $ 3,034 | $ 3,034 |
Trademarks and Trade Names [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 14 years | |||
Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||
Technology-Based Intangible Assets [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||
Computer Software, Intangible Asset [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Note 6 - Goodwill and Intangi33
Note 6 - Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Balance | $ 3,034 |
Acquisition of software company | 2,618 |
Balance | $ 5,652 |
Note 6 - Goodwill and Intangi34
Note 6 - Goodwill and Intangible Assets - Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Intangible assets, gross | $ 15,261 | $ 12,115 |
Accumulated amortization | (6,891) | (5,625) |
Total net balance | 8,370 | 6,490 |
Noncompete Agreements [Member] | ||
Intangible assets, gross | 600 | 600 |
Trademarks and Trade Names [Member] | ||
Intangible assets, gross | 1,480 | 1,480 |
Technology-Based Intangible Assets [Member] | ||
Intangible assets, gross | 2,358 | 2,358 |
Customer Relationships [Member] | ||
Intangible assets, gross | 4,950 | 4,950 |
Computer Software, Intangible Asset [Member] | ||
Intangible assets, gross | 5,548 | 2,402 |
Other Intangible Assets [Member] | ||
Intangible assets, gross | $ 325 | $ 325 |
Note 6 - Goodwill and Intangi35
Note 6 - Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) $ in Thousands | Mar. 31, 2017USD ($) |
2017 (Remainder of year) | $ 653 |
2,018 | 2,421 |
2,019 | 2,186 |
2,020 | 1,480 |
2,021 | 872 |
2,022 | 400 |
Thereafter | $ 358 |
Note 7 - Pension and Post-ret36
Note 7 - Pension and Post-retirement Benefits (Details Textual) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2017 | Dec. 30, 2016 | |
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 1.1 | ||
Pension Plan [Member] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | $ 6.9 | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.31% | 3.77% | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 4.2 | ||
Pension Plan [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 3.5 | ||
Pension Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0.8 |
Note 7 - Pension and Post-ret37
Note 7 - Pension and Post-retirement Benefits - Net Periodic Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Plan [Member] | ||||
Service cost | $ 714 | $ 1,405 | $ 2,143 | |
Interest cost | 1,574 | 1,732 | 4,659 | 5,259 |
Expected return on plan assets | (1,284) | (1,560) | (3,878) | (4,739) |
Amortization of net loss | 6 | 13 | 102 | 39 |
296 | 899 | 2,288 | 2,702 | |
Other Postretirement Benefits Plan [Member] | ||||
Service cost | 23 | 26 | 70 | 79 |
Interest cost | 67 | 71 | 203 | 215 |
Amortization of net loss | 30 | 4 | 90 | 11 |
(48) | (94) | (142) | (281) | |
Amortization of prior service credit | $ (168) | $ (195) | $ (505) | $ (586) |
Note 8 - Debt (Details Textual)
Note 8 - Debt (Details Textual) | Nov. 22, 2011USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 23,000,000 | ||
Line of Credit Facility, Interest Rate During Period | 2.50% | 2.20% | |
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] | |||
Current Funded Debt to EBITDA Ratio | 2.25 | ||
Annual Capital Expenditures | $ 15,000,000 | ||
Minimum [Member] | |||
Debt Service Coverage Rate | 1.25 | ||
Line of Credit [Member] | |||
Debt Instrument, Term | 3 years | ||
Term Loan [Member] | |||
Debt Instrument, Term | 10 years | ||
Long-term Line of Credit | $ 8,100,000 | ||
Debt Instrument, Face Amount | $ 15,500,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
Line of Credit Facility, Periodic Payment | $ 160,600 | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Note 8 - Debt - Debt Schedule (
Note 8 - Debt - Debt Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Notes payable and current maturities of long term debt | ||
Loan and Security Agreement | $ 1,596 | $ 1,543 |
Long-term debt | ||
Loan and Security Agreement | 15,904 | 17,109 |
$ 17,500 | $ 18,652 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Effective Income Tax Rate Reconciliation, Percent | 36.80% | 50.20% | 40.80% | 67.20% | ||
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 | $ 216,000 | |||||
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 | ||||
Foreign Tax Authority [Member] | Secretariat of the Federal Revenue Bureau of Brazil [Member] | ||||||
Unrecognized Tax Benefits | $ 931,000 | $ 931,000 |
Note 11 - Segment Information41
Note 11 - Segment Information (Details Textual) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |||||
Number of Reportable Segments | 2 | |||||||
Revenue, Net | $ 50,670,000 | [1] | $ 50,329,000 | [2] | $ 152,770,000 | [3] | $ 155,038,000 | [4] |
North American Segment [Member] | ||||||||
Revenue, Net | 31,791,000 | [1] | 32,473,000 | [2] | 92,345,000 | [3] | 99,188,000 | [4] |
North American Segment [Member] | Intersegment Eliminations [Member] | ||||||||
Revenue, Net | 1,493 | 2,238 | 6,189 | 6,480 | ||||
International Segment [Member] | ||||||||
Revenue, Net | 18,879,000 | [1] | 17,856,000 | [2] | 60,425,000 | [3] | 55,850,000 | [4] |
International Segment [Member] | Intersegment Eliminations [Member] | ||||||||
Revenue, Net | $ 2,536 | $ 2,120 | $ 8,585 | $ 6,799 | ||||
[1] | Excludes $1,493 of North American segment sales to the International segment and $2,536 of International segment sales to the North American segment. | |||||||
[2] | Excludes $2,238 of North American segment sales to the International segment and $2,120 of International segment sales to the North American segment. | |||||||
[3] | Excludes $6,189 of North American segment sales to the International segment and $8,585 of International segment sales to the North American segment. | |||||||
[4] | Excludes $6,480 of North American segment sales to the International segment and $6,799 of International segment sales to the North American segment. |
Note 11 - Segment Information -
Note 11 - Segment Information - Financial Results for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |||||
Sales | $ 50,670 | [1] | $ 50,329 | [2] | $ 152,770 | [3] | $ 155,038 | [4] |
Operating Income (Loss) | (853) | 914 | (874) | 2,296 | ||||
North American Segment [Member] | ||||||||
Sales | 31,791 | [1] | 32,473 | [2] | 92,345 | [3] | 99,188 | [4] |
Operating Income (Loss) | 1,563 | 2,542 | 4,520 | 8,172 | ||||
International Segment [Member] | ||||||||
Sales | 18,879 | [1] | 17,856 | [2] | 60,425 | [3] | 55,850 | [4] |
Operating Income (Loss) | (693) | (112) | (143) | (1,583) | ||||
Unallocated [Member] | ||||||||
Sales | [1] | [2] | [3] | [4] | ||||
Operating Income (Loss) | $ (1,723) | $ (1,515) | $ (5,251) | $ (4,292) | ||||
[1] | Excludes $1,493 of North American segment sales to the International segment and $2,536 of International segment sales to the North American segment. | |||||||
[2] | Excludes $2,238 of North American segment sales to the International segment and $2,120 of International segment sales to the North American segment. | |||||||
[3] | Excludes $6,189 of North American segment sales to the International segment and $8,585 of International segment sales to the North American segment. | |||||||
[4] | Excludes $6,480 of North American segment sales to the International segment and $6,799 of International segment sales to the North American segment. |