Delaware | 06-0865505 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
One Colonial Road, Manchester, Connecticut | 06042 |
(Address of principal executive offices) | (zip code) |
Total Shares outstanding April 18, 2016 | 17,126,712 |
Page Number | |||
Cautionary Note Concerning Forward – Looking Statements | |||
Part I. | Financial Information | ||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Part II. | Other Information | ||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 5. | |||
Item 6. | |||
Signature | |||
Exhibit Index |
• | Overall economic and business conditions and the effects on the Company’s markets; |
• | Outlook for the second quarter of 2016; |
• | Expected vehicle production in the North American, European or Asian markets; |
• | Growth opportunities in markets served by the Company; |
• | Expected gross margin, operating margin and working capital improvements from the application of Lean Six Sigma; |
• | Product development and new business opportunities; |
• | Future strategic transactions, including but not limited to: acquisitions, joint ventures, alliances, licensing agreements and divestitures; |
• | Pension plan funding; |
• | Future cash flow and uses of cash; |
• | Future amounts of stock-based compensation expense; |
• | Future earnings and other measurements of financial performance; |
• | Ability to meet cash operating requirements; |
• | Future levels of indebtedness and capital spending; |
• | Ability to meet financial covenants in the Company's revolving credit facility; |
• | Future impact of the variability of interest rates and foreign currency exchange rates; |
• | Expected future impact of recently issued accounting pronouncements upon adoption; |
• | Future effective income tax rates and realization of deferred tax assets; |
• | Estimates of fair values of reporting units and long-lived assets used in assessing goodwill and long-lived assets for possible impairment; and |
• | The expected outcomes of legal proceedings and other contingencies. |
Quarter Ended March 31, | |||||||
2016 | 2015 | ||||||
(Unaudited) | |||||||
Net sales | $ | 129,700 | $ | 127,306 | |||
Cost of sales | 97,323 | 99,606 | |||||
Gross profit | 32,377 | 27,700 | |||||
Selling, product development and administrative expenses | 18,698 | 17,622 | |||||
Operating income | 13,679 | 10,078 | |||||
Gain on sale of business | — | (18,647 | ) | ||||
Interest expense | 144 | 222 | |||||
Other income, net | (167 | ) | (1,022 | ) | |||
Income before income taxes | 13,702 | 29,525 | |||||
Income tax expense | 4,533 | 10,588 | |||||
Net income | $ | 9,169 | $ | 18,937 | |||
Earnings per share: | |||||||
Basic | $ | 0.54 | $ | 1.12 | |||
Diluted | $ | 0.54 | $ | 1.11 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 16,825 | 16,837 | |||||
Diluted | 17,036 | 17,109 |
Quarter Ended March 31, | |||||||
2016 | 2015 | ||||||
(Unaudited) | |||||||
Net income | $ | 9,169 | $ | 18,937 | |||
Other comprehensive income: | |||||||
Foreign currency translation adjustments | 2,758 | (9,919 | ) | ||||
Pension liability adjustment, net of tax | 146 | 137 | |||||
Comprehensive income | $ | 12,073 | $ | 9,155 |
March 31, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 69,525 | $ | 75,909 | |||
Accounts receivable, less allowances (2016 - $1,084; 2015 - $1,251) | 93,279 | 82,149 | |||||
Inventories | 51,151 | 46,530 | |||||
Taxes receivable | 2,069 | 4,194 | |||||
Prepaid expenses | 2,519 | 3,009 | |||||
Other current assets | 3,012 | 7,512 | |||||
Total current assets | 221,555 | 219,303 | |||||
Property, plant and equipment, at cost | 312,478 | 302,618 | |||||
Accumulated depreciation | (195,147 | ) | (188,185 | ) | |||
Net, property, plant and equipment | 117,331 | 114,433 | |||||
Goodwill | 17,027 | 16,841 | |||||
Other intangible assets, net | 5,278 | 5,399 | |||||
Other assets, net | 1,786 | 2,284 | |||||
Total assets | $ | 362,977 | $ | 358,260 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 196 | $ | 323 | |||
Accounts payable | 46,725 | 42,470 | |||||
Accrued payroll and other compensation | 9,853 | 10,210 | |||||
Accrued taxes | 3,724 | 1,200 | |||||
Other accrued liabilities | 7,107 | 6,797 | |||||
Total current liabilities | 67,605 | 61,000 | |||||
Long-term debt | 10,145 | 20,156 | |||||
Deferred tax liabilities | 10,388 | 14,997 | |||||
Benefit plan liabilities | 14,260 | 14,222 | |||||
Other long-term liabilities | 2,680 | 2,660 | |||||
Commitments and Contingencies (Note 12) | |||||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 248 | 247 | |||||
Capital in excess of par value | 78,166 | 76,746 | |||||
Retained earnings | 297,448 | 288,358 | |||||
Accumulated other comprehensive loss | (31,681 | ) | (34,585 | ) | |||
Treasury stock, at cost | (86,282 | ) | (85,541 | ) | |||
Total stockholders’ equity | 257,899 | 245,225 | |||||
Total liabilities and stockholders’ equity | $ | 362,977 | $ | 358,260 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 9,169 | $ | 18,937 | |||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||
Gain on sale of business | — | (18,647 | ) | ||||
Depreciation and amortization | 4,332 | 4,362 | |||||
Deferred income taxes | (106 | ) | (1,746 | ) | |||
Stock based compensation | 1,132 | 635 | |||||
Loss on disposition of property, plant and equipment | — | 106 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (10,412 | ) | (12,017 | ) | |||
Inventories | (4,059 | ) | (6,465 | ) | |||
Accounts payable | 7,341 | 3,644 | |||||
Accrued payroll and other compensation | (566 | ) | (4,409 | ) | |||
Accrued taxes | 2,575 | 8,978 | |||||
Other, net | 3,377 | 5,525 | |||||
Net cash provided by (used for) operating activities | 12,783 | (1,097 | ) | ||||
Cash flows from investing activities: | |||||||
Proceeds from the sale of business, net | — | 28,370 | |||||
Capital expenditures | (9,616 | ) | (7,396 | ) | |||
Net cash (used for) provided by investing activities | (9,616 | ) | 20,974 | ||||
Cash flows from financing activities: | |||||||
Debt repayments | (10,147 | ) | (140 | ) | |||
Common stock issued | 320 | 605 | |||||
Common stock repurchased | (710 | ) | (7,246 | ) | |||
Excess tax benefit on stock awards | — | 286 | |||||
Net cash used for financing activities | (10,537 | ) | (6,495 | ) | |||
Effect of exchange rate changes on cash | 986 | (3,330 | ) | ||||
(Decrease) Increase in cash and cash equivalents | (6,384 | ) | 10,052 | ||||
Cash and cash equivalents at beginning of period | 75,909 | 62,051 | |||||
Cash and cash equivalents at end of period | $ | 69,525 | $ | 72,103 |
1. | Basis of Financial Statement Presentation |
2. | Divestiture |
In thousands | March 31, 2016 | December 31, 2015 | ||||||
Raw materials | $ | 20,956 | $ | 17,128 | ||||
Work in process | 16,288 | 14,670 | ||||||
Finished goods | 14,143 | 15,048 | ||||||
51,387 | 46,846 | |||||||
Less: Progress billings | (236 | ) | (316 | ) | ||||
Total inventories | $ | 51,151 | $ | 46,530 |
December 31, 2015 | Currency translation adjustments | Other Activity | March 31, 2016 | |||||||||||||
In thousands | ||||||||||||||||
Performance Materials | $ | 12,898 | $ | 186 | $ | — | $ | 13,084 | ||||||||
Industrial Filtration | 3,943 | — | — | 3,943 | ||||||||||||
Total goodwill | $ | 16,841 | $ | 186 | $ | — | $ | 17,027 |
March 31, 2016 | December 31, 2015 | |||||||||||||||
In thousands | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Amortized intangible assets | ||||||||||||||||
License agreements | $ | 616 | $ | (616 | ) | $ | 771 | $ | (771 | ) | ||||||
Technology | 2,500 | (352 | ) | 2,500 | (310 | ) | ||||||||||
Customer Relationships | 2,397 | (463 | ) | 2,412 | (411 | ) | ||||||||||
Patents | 4,304 | (3,436 | ) | 4,137 | (3,272 | ) | ||||||||||
Other | 619 | (291 | ) | 612 | (269 | ) | ||||||||||
Total amortized intangible assets | $ | 10,436 | $ | (5,158 | ) | $ | 10,432 | $ | (5,033 | ) |
March 31, | December 31, | ||||||||||||
In thousands | Effective Rate | Maturity | 2016 | 2015 | |||||||||
Revolver Loan, due January 31, 2019 | 1.43 | % | 2019 | $ | 10,000 | $ | 20,000 | ||||||
Capital Lease, land and building, St. Nazaire, France | 5.44 | % | 2016 | 150 | 277 | ||||||||
Capital Lease, manufacturing equipment, Hamptonville, North Carolina | 5.00 | % | 2017 | 7 | 9 | ||||||||
Capital Lease, manufacturing equipment, Hamptonville, North Carolina | 1.65 | % | 2020 | 184 | 193 | ||||||||
10,341 | 20,479 | ||||||||||||
Less portion due within one year | (196 | ) | (323 | ) | |||||||||
Total long-term debt | $ | 10,145 | $ | 20,156 |
In thousands except per share amounts and years | Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | |||||||||
Outstanding at March 31, 2016 | 447 | $ | 20.73 | 7.1 | $ | 5,654 | |||||||
Exercisable at March 31, 2016 | 223 | $ | 12.27 | 5.3 | $ | 4,510 | |||||||
Unvested at March 31, 2016 | 224 | $ | 29.15 | 8.9 | $ | 1,144 |
Quarter Ended March 31, | ||||||||
In thousands | 2016 | 2015 | ||||||
Components of net periodic benefit cost | ||||||||
Interest cost | $ | 535 | $ | 516 | ||||
Expected return on assets | (605 | ) | (590 | ) | ||||
Amortization of actuarial loss | 233 | 225 | ||||||
Net periodic benefit cost | $ | 163 | $ | 151 |
Quarter Ended March 31, | ||||||
In thousands | 2016 | 2015 | ||||
Basic average common shares outstanding | 16,825 | 16,837 | ||||
Effect of dilutive options and restricted stock awards | 211 | 272 | ||||
Diluted average common shares outstanding | 17,036 | 17,109 |
Quarter Ended March 31, | ||||||||
In thousands | 2016 | 2015 | ||||||
Performance Materials Segment: | ||||||||
Filtration | $ | 17,159 | $ | 15,067 | ||||
Thermal Insulation | 6,275 | 7,485 | ||||||
Life Sciences Filtration | 2,949 | 2,506 | ||||||
Performance Materials Segment net sales | 26,383 | 25,058 | ||||||
Industrial Filtration Segment: | ||||||||
Industrial Filtration (1) | 31,207 | 34,200 | ||||||
Industrial Filtration net sales | 31,207 | 34,200 | ||||||
Thermal/Acoustical Metals Segment: | ||||||||
Metal parts | 36,783 | 35,022 | ||||||
Tooling | 5,214 | 3,093 | ||||||
Thermal/Acoustical Metals Segment net sales | 41,997 | 38,115 | ||||||
Thermal/Acoustical Fibers Segment: | ||||||||
Fiber parts | 35,677 | 30,411 | ||||||
Tooling | 184 | 706 | ||||||
Thermal/Acoustical Fibers Segment net sales | 35,861 | 31,117 | ||||||
Other Products and Services: | ||||||||
Life Sciences Vital Fluids (2) | — | 1,671 | ||||||
Other Products and Services net sales | — | 1,671 | ||||||
Eliminations and Other (1) | (5,748 | ) | (2,855 | ) | ||||
Consolidated Net Sales | $ | 129,700 | $ | 127,306 |
Quarter Ended March 31, | ||||||||
In thousands | 2016 | 2015 | ||||||
Performance Materials | $ | 2,138 | $ | 1,306 | ||||
Industrial Filtration | 3,926 | 3,154 | ||||||
Thermal/Acoustical Metals | 3,557 | 3,581 | ||||||
Thermal/Acoustical Fibers | 10,324 | 7,093 | ||||||
Other Products and Services (2) | — | 118 | ||||||
Corporate Office Expenses | (6,266 | ) | (5,174 | ) | ||||
Consolidated Operating Income | $ | 13,679 | $ | 10,078 |
(1) | Included in the Industrial Filtration segment and Eliminations and Other is $4.5 million and $2.0 million in intercompany sales to the T/A Fibers segment for the quarters ended March 31, 2016 and 2015, respectively. |
(2) | Other Products and Services reports results for the period preceding the date of disposition of January 30, 2015. |
In thousands | Foreign Currency Translation Adjustment | Defined Benefit Pension Adjustment | Total Accumulated Other Comprehensive (Loss) Income | |||||||||
Balance at December 31, 2014 | $ | (6,586 | ) | $ | (17,575 | ) | $ | (24,161 | ) | |||
Other Comprehensive loss | (9,919 | ) | — | (9,919 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss (a) | — | 137 | 137 | |||||||||
Balance at March 31, 2015 | (16,505 | ) | (17,438 | ) | (33,943 | ) | ||||||
Balance at December 31, 2015 | (16,920 | ) | (17,665 | ) | (34,585 | ) | ||||||
Other Comprehensive income | 2,758 | — | 2,758 | |||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | — | 146 | 146 | |||||||||
Balance at March 31, 2016 | $ | (14,162 | ) | $ | (17,519 | ) | $ | (31,681 | ) |
(a) | Amount represents amortization of actuarial losses, a component of net periodic benefit cost. This amount was $0.1 million, net of $0.1 million tax benefit for the quarters ended March 31, 2016 and 2015, respectively. |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Net sales were $129.7 million in Q1 2016, compared to $127.3 million in Q1 2015, an increase of $2.4 million, or 1.9%. The change in consolidated net sales is summarized in the following table. |
Components | Change in Net Sales | Percent Change | |||||
Volume and pricing change | 3,675 | 2.9 | % | ||||
Change in tooling sales | 1,668 | 1.3 | % | ||||
Divestiture of Life Sciences Vital Fluids (January 30, 2015) | (1,671 | ) | (1.3 | )% | |||
Foreign currency translation | (1,278 | ) | (1.0 | )% | |||
Total | $ | 2,394 | 1.9 | % |
• | Gross margin increased 320 basis points to 25.0%, compared to 21.8% in Q1 2015 primarily due to lower raw material costs and improved mix of products. The T/A Fibers segment benefited from increased parts sales of $5.3 million, resulting in improved absorption of overhead costs, as well as lower raw material costs and other labor and overhead efficiencies. The Industrial Filtration segment was impacted by improved mix of products and lower raw material costs. |
• | Operating income was $13.7 million, or 10.5% of net sales, compared to $10.1 million, or 7.9% of net sales, in Q1 2015; |
- | Operating income and operating margin were positively impacted by improved gross margin compared to Q1 2015, principally led by the T/A Fibers and Industrial Filtration segments; | |
- | Operating income was negatively impacted by an increase in selling, product development and administrative expenses of $1.1 million, primarily due to increased salaries and benefits and professional services expense; and | |
- | Operating income from the Life Sciences Vital Fluids business, (reported as Other Products and Services), which was divested in the first quarter of 2015, was $0.1 million in Q1 2015. |
• | Other income, net, in the first quarter of 2015 included foreign currency transaction gains of $1.0 million primarily from intercompany loans denominated in currencies other than the functional currencies of the Company's subsidiaries. |
• | Effective tax rate was 33.1% compared to 35.9% in Q1 2015. As a result of the adoption of ASU No. 2016-09, the Company recognized a discrete tax benefit of $0.3 million in Q1 2016 related to excess tax benefits from stock award exercises and vesting. |
• | Net income was $9.2 million, or $0.54 per diluted share, in Q1 2016, compared to $18.9 million, or $1.11 per diluted share, in Q1 2015, which included $0.69 per diluted share from the sale of the Life Sciences Vital Fluids business. |
Quarter Ended | |||||||||||
In thousands | Q1-16 | Q1-15 | Percent Change | ||||||||
Net sales | $ | 129,700 | $ | 127,306 | 1.9 | % |
Quarter Ended | |||||||||||
In thousands of dollars | Q1-16 | Q1-15 | Percent Change | ||||||||
Cost of sales | $ | 97,323 | $ | 99,606 | (2.3 | )% |
Quarter Ended | |||||||||||
In thousands | Q1-16 | Q1-15 | Percent Change | ||||||||
Gross profit | $ | 32,377 | $ | 27,700 | 16.9 | % | |||||
Gross margin | 25.0 | % | 21.8 | % |
Quarter Ended | |||||||||||
In thousands | Q1-16 | Q1-15 | Percent Change | ||||||||
Selling, product development and administrative expenses | $ | 18,698 | $ | 17,622 | 6.1 | % | |||||
Percentage of sales | 14.4 | % | 13.8 | % |
Quarter Ended | |||||||||||
In thousands | Q1-16 | Q1-15 | Percent Change | ||||||||
Interest expense | $ | 144 | $ | 222 | (35.1 | )% | |||||
Weighted average interest rate | 1.5 | % | 1.3 | % |
Quarter Ended | |||||||||||
In thousands | Q1-16 | Q1-15 | Dollar Change | ||||||||
Gain on sale of business | $ | — | $ | (18,647 | ) | 18,647 |
Quarter Ended | |||||||||||
In thousands | Q1-16 | Q1-15 | Dollar Change | ||||||||
Other income, net | $ | (167 | ) | $ | (1,022 | ) | 855 |
Quarter Ended | ||||||||||||
In thousands | Q1-16 | Q1-15 | Dollar Change | |||||||||
Performance Materials Segment: | ||||||||||||
Filtration | $ | 17,159 | $ | 15,067 | $ | 2,092 | ||||||
Thermal Insulation | 6,275 | 7,485 | (1,210 | ) | ||||||||
Life Sciences Filtration | 2,949 | 2,506 | 443 | |||||||||
Performance Materials Segment net sales | 26,383 | 25,058 | 1,325 | |||||||||
Industrial Filtration Segment: | ||||||||||||
Industrial Filtration (1) | 31,207 | 34,200 | (2,993 | ) | ||||||||
Industrial Filtration net sales | 31,207 | 34,200 | (2,993 | ) | ||||||||
Thermal/Acoustical Metals Segment: | ||||||||||||
Metal parts | 36,783 | 35,022 | 1,761 | |||||||||
Tooling | 5,214 | 3,093 | 2,121 | |||||||||
Thermal/Acoustical Metals Segment net sales | 41,997 | 38,115 | 3,882 | |||||||||
Thermal/Acoustical Fibers Segment: | ||||||||||||
Fiber parts | 35,677 | 30,411 | 5,266 | |||||||||
Tooling | 184 | 706 | (522 | ) | ||||||||
Thermal/Acoustical Fibers Segment net sales | 35,861 | 31,117 | 4,744 | |||||||||
Other Products and Services: | ||||||||||||
Life Sciences Vital Fluids (2) | — | 1,671 | (1,671 | ) | ||||||||
Other Products and Services net sales | — | 1,671 | (1,671 | ) | ||||||||
Eliminations and Other (1) | (5,748 | ) | (2,855 | ) | (2,893 | ) | ||||||
Consolidated Net Sales | $ | 129,700 | $ | 127,306 | $ | 2,394 |
Quarter Ended | ||||||||||||||||
Q1-16 | Q1-15 | |||||||||||||||
In thousands | Operating Income | Operating Margin % | Operating Income | Operating Margin % | Dollar Change | |||||||||||
Performance Materials | $ | 2,138 | 8.1% | $ | 1,306 | 5.2% | $ | 832 | ||||||||
Industrial Filtration | 3,926 | 12.6% | 3,154 | 9.2% | 772 | |||||||||||
Thermal/Acoustical Metals | 3,557 | 8.5% | 3,581 | 9.4% | (24 | ) | ||||||||||
Thermal/Acoustical Fibers | 10,324 | 28.8% | 7,093 | 22.8% | 3,231 | |||||||||||
Other Products and Services | — | —% | 118 | 7.1% | (118 | ) | ||||||||||
Corporate Office Expenses | (6,266 | ) | (5,174 | ) | (1,092 | ) | ||||||||||
Consolidated Operating Income | $ | 13,679 | 10.5% | $ | 10,078 | 7.9% | $ | 3,601 |
(1) | Included in the Industrial Filtration segment and Eliminations and Other is $4.5 million and $2.0 million in intercompany sales to the T/A Fibers segment for the quarters ended March 31, 2016 and 2015, respectively. |
(2) | Other Products and Services reports results for the period preceding the date of disposition of January 30, 2015. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Number of Shares That May Yet Be Purchased Under the Program | |||||||||
January 1, 2016 - January 31, 2016 | — | $ | — | — | — | ||||||||
February 1, 2016 - February 29, 2016 | 26,842 | $ | 27.63 | — | — | ||||||||
March 1, 2016 - March 31, 2016 | — | $ | — | — | — | ||||||||
26,842 | $ | 27.63 | — | — |
Item 5. | Other Information |
Director | For | Withheld | Broker Non-Votes | ||||||
Dale G. Barnhart | 14,598,065 | 206,766 | 981,974 | ||||||
Kathleen Burdett | 13,625,410 | 1,179,421 | 981,974 | ||||||
W. Leslie Duffy | 13,667,825 | 1,137,006 | 981,974 | ||||||
Matthew T. Farrell | 14,597,967 | 206,864 | 981,974 | ||||||
Marc T. Giles | 13,717,251 | 1,087,580 | 981,974 | ||||||
William D. Gurley | 13,636,331 | 1,168,500 | 981,974 | ||||||
Suzanne Hammett | 14,586,325 | 218,506 | 981,974 | ||||||
S. Carl Soderstorm, Jr. | 12,539,023 | 2,265,808 | 981,974 |
For | 14,716,091 | |
Against | 76,245 | |
Abstain | 12,495 | |
Broker Non-Votes | 981,974 |
For | 15,495,930 | |
Against | 256,135 | |
Abstain | 34,740 |
Item 6. | Exhibits |
Exhibit Number | Description | ||
10.1 | Lydall, Inc. Annual Incentive Performance Program adopted March 30, 2016 and effective January 1, 2016, filed as Exhibit 99.1 to the Registrant's Form 8-K dated April 1, 2016 and incorporated herein by reference. | ||
31.1 | Certification Pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, of principal executive officer, filed herewith. | ||
31.2 | Certification Pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, of principal financial officer, filed herewith. | ||
32.1 | Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith. | ||
101.INS | XBRL Instance Document | ||
101.SCH | XBRL Taxonomy Extension Schema Document | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
LYDALL, INC. | ||
May 3, 2016 | By: | /s/ Scott M. Deakin |
Scott M. Deakin Executive Vice President and Chief Financial Officer (On behalf of the Registrant and as Principal Financial Officer) |
Exhibit Number | Description | ||
10.1 | Lydall, Inc. Annual Incentive Performance Program adopted March 30, 2016 and effective January 1, 2016, filed as Exhibit 99.1 to the Registrant's Form 8-K dated April 1, 2016 and incorporated herein by reference. | ||
31.1 | Certification Pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, of principal executive officer, filed herewith. | ||
31.2 | Certification Pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, of principal financial officer, filed herewith. | ||
32.1 | Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith. | ||
101.INS | XBRL Instance Document | ||
101.SCH | XBRL Taxonomy Extension Schema Document | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
1. | I have reviewed this quarterly report on Form 10-Q of Lydall, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting ,to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 3, 2016 | /s/ Dale G. Barnhart | |
Dale G. Barnhart President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Lydall, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 3, 2016 | /s/ Scott M. Deakin | |
Scott M. Deakin Executive Vice President and Chief Financial Officer (On behalf of the Registrant and as Principal Financial Officer) |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
May 3, 2016 | /s/ Dale G. Barnhart | |
Dale G. Barnhart President and Chief Executive Officer | ||
May 3, 2016 | /s/ Scott M. Deakin | |
Scott M. Deakin Executive Vice President and Chief Financial Officer (On behalf of the Registrant and as Principal Financial Officer) |
Document And Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2016 |
Apr. 18, 2016 |
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Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LDL | |
Entity Common Stock, Shares Outstanding | 17,126,712 | |
Entity Registrant Name | LYDALL INC /DE/ | |
Entity Central Index Key | 0000060977 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Income Statement [Abstract] | ||
Net sales | $ 129,700 | $ 127,306 |
Cost of sales | 97,323 | 99,606 |
Gross profit | 32,377 | 27,700 |
Selling, product development and administrative expenses | 18,698 | 17,622 |
Operating income | 13,679 | 10,078 |
Gain on sale of business | 0 | (18,647) |
Interest expense | 144 | 222 |
Other income, net | (167) | (1,022) |
Income before income taxes | 13,702 | 29,525 |
Income tax expense | 4,533 | 10,588 |
Net income | $ 9,169 | $ 18,937 |
Earnings per share: | ||
Basic (usd per share) | $ 0.54 | $ 1.12 |
Diluted (usd per share) | $ 0.54 | $ 1.11 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 16,825 | 16,837 |
Diluted (in shares) | 17,036 | 17,109 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2016 |
Mar. 31, 2015 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 9,169 | $ 18,937 |
Other comprehensive income: | ||
Foreign currency translation adjustments | 2,758 | (9,919) |
Pension liability adjustment, net of tax | 146 | 137 |
Comprehensive income | $ 12,073 | $ 9,155 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Statement of Financial Position [Abstract] | ||
Allowances of accounts receivable | $ 1,084 | $ 1,251 |
Basis of Financial Statement Presentation |
3 Months Ended |
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Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation Description of Business Lydall, Inc. and its subsidiaries (the “Company” or “Lydall”) design and manufacture specialty engineered filtration media, life science filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications. Basis of Presentation The accompanying Condensed Consolidated Financial Statements include the accounts of Lydall, Inc. and its subsidiaries. All financial information is unaudited for the interim periods reported. All significant intercompany transactions have been eliminated in the Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The operating results of the Life Sciences Vital Fluids business have been included in the Consolidated Statement of Operations through the date of disposition, January 30, 2015. The year-end Condensed Consolidated Balance Sheet was derived from the December 31, 2015 audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Management believes that all adjustments, which include only normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position, results of operations and cash flows for the periods reported, have been included. For further information, refer to the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Recent Accounting Pronouncements In June 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period". This ASU affects entities that grant their employees share-based payments in which terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments in this ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This ASU was effective for fiscal years beginning after December 15, 2015. The adoption of this ASU did not have any impact on the Company's consolidated financial statements and disclosures. In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". This ASU requires an entity to classify all deferred tax assets and liabilities, along with any related valuation allowance, as noncurrent on the balance sheet. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. This ASU is effective for fiscal years beginning after December 15, 2016, and early adoption is permitted. The Company adopted this standard prospectively during the quarter ended March 31, 2016. The adoption of this standard resulted in the reclassification of $4.6 million from current deferred income tax assets in the Consolidated Balance Sheet as of March 31, 2016 to noncurrent deferred income tax assets. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)". This ASU requires entities that lease assets with lease terms of more than 12 months to recognize right-of-use assets and lease liabilities created by those leases on their balance sheets. The ASU will also require new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. This ASU is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the method and impact the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing". This ASU clarifies the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The effective date for this ASU is the same as the effective date for ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", which deferred the effective date of ASU 2014-09 to fiscal years beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the method and impact the adoption of ASU 2016-10 will have on the Company’s consolidated financial statements and disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and accounting for forfeitures. This ASU is effective for fiscal years beginning after December 15, 2016 and early adoption is permitted. The Company adopted this accounting standard update effective January 1, 2016. As a result of the adoption of this ASU, the Company recognized excess tax benefits from first quarter 2016 stock award exercises and vesting as a discrete tax benefit of $0.3 million during the quarter ended March 31, 2016. In addition, as a result of this change, excess tax benefits were excluded from the calculation of assumed proceeds in the Company’s calculation of diluted weighted shares. The Company’s diluted weighted shares outstanding as of March 31, 2016 increased 28,027 shares due to adoption of this amendment. Within the statement of cash flows, excess tax benefits of $0.3 million are included in net income and are therefore classified as an operating activity. The Company applied these changes prospectively, and therefore prior periods have not been adjusted. As permitted by this ASU, the Company has made an accounting policy election to record forfeitures as they occur rather than estimating expected forfeitures and, as a result, the cumulative effect of this change in accounting principle of $0.1 million was recorded as an adjustment to retained earnings as of January 1, 2016. The ASU permits equity classification of awards for tax withholding up to the maximum individual tax rate in a given jurisdiction for the net settlement of an award. As of March 31, 2016 the Company did not have liability classified awards and is currently evaluating its policy on tax withholding for award net settlement. |
Divestiture |
3 Months Ended |
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Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | Divestiture On January 30, 2015, the Company sold all of the outstanding shares of common stock of its Life Sciences Vital Fluids business, reported as Other Products and Services, for a cash purchase price of $30.1 million (including a post-closing adjustment of $0.2 million). The disposition was completed pursuant to a Stock Purchase and Sale Agreement, dated January 30, 2015, by and among the Company, and the buyer. The Company recognized a pre-tax gain on the sale of $18.6 million, reported as non-operating income in the first quarter of 2015. Net of income taxes, the Company reported a gain on sale of $11.8 million. In accordance with the revised accounting guidance for reporting discontinued operations, the Company did not report Life Sciences Vital Fluids as a discontinued operation as it would not be considered a strategic shift in Lydall's business. Accordingly, the operating results of Life Sciences Vital Fluids are included in the operating results of the Company through the sale date. |
Inventories |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories as of March 31, 2016 and December 31, 2015 were as follows:
Included in work in process is gross tooling inventory of $9.8 million and $9.5 million at March 31, 2016 and December 31, 2015, respectively. Tooling inventory, net of progress billings, was $9.6 million and $9.2 million at March 31, 2016 and December 31, 2015, respectively. |
Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill: The Company tests its goodwill for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate that the carrying value may exceed its fair value. The changes in the carrying amount of goodwill by segment as of and for the quarter ended March 31, 2016 were as follows:
Other Intangible Assets: The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015:
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Long-term Debt and Financing Arrangements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt and Financing Arrangements | Long-term Debt and Financing Arrangements On February 18, 2014, the Company amended and restated its $35.0 million senior secured domestic revolving credit facility (as further amended May 5, 2015, “Amended Credit Facility”) with a financial institution and two additional lenders, increasing the available borrowing from $35 million to $100 million. The Amended Credit Facility is secured by substantially all of the assets of the Company. The maturity date for the Amended Credit Facility is January 31, 2019, at which time amounts outstanding under the Amended Credit Facility are due and payable. The Company entered into this Amended Credit Facility in part to fund a majority of the purchase price of the Industrial Filtration acquisition. Under the terms of the Amended Credit Facility, the lenders are providing a $100 million revolving credit facility to the Company, under which the lenders may make revolving loans and issue letters of credit to or for the benefit of the Company and its subsidiaries. The Company may request the Amended Credit Facility to be increased by an aggregate amount not to exceed $50 million through an accordion feature, subject to specified conditions. The Amended Credit Facility contains a number of affirmative and negative covenants, including financial and operational covenants. The Company is required to meet a minimum interest coverage ratio. The interest coverage ratio requires that, at the end of each fiscal quarter, the ratio of consolidated EBIT to Consolidated Interest Charges, both as defined in the Amended Credit Facility, may not be less than 2.0 to 1.0 for the immediately preceding 12 month period. In addition, the Company must maintain a Consolidated Leverage Ratio, as defined in the Amended Credit Facility, as of the end of each fiscal quarter of no greater than 3.0 to 1.0. The Company must also meet minimum consolidated EBITDA as of the end of each fiscal quarter for the preceding 12 month period of $30.0 million. The Company was in compliance with all covenants at March 31, 2016 and December 31, 2015. Interest is charged on borrowings at the Company’s option of either: (i) Base Rate plus the Applicable Rate, or (ii) the Eurodollar Rate plus the Applicable Rate. The Base Rate is a fluctuating rate equal to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate as set by Bank of America, and (c) the Eurocurrency Rate plus 1.00%. The Eurocurrency Rate means (i) if denominated in LIBOR quoted currency, a fluctuating LIBOR per annum rate equal to the London Interbank Offered Rate; (ii) if denominated in Canadian Dollars, the rate per annum equal to the Canadian Dealer Offered Rate; or (iii) the rate per annum as designated with respect to such alternative currency at the time such alternative currency is approved by the Lenders. The Applicable Rate is determined based on the Company’s Consolidated Leverage Ratio (as defined in the Amended Credit Agreement). The Applicable Rate added to the Base Rate Committed Loans ranges from 15 basis points to 100 basis points, and the Applicable Rate added to Eurocurrency Rate Committed Loans and Letters of Credit ranges from 75 basis points to 175 basis points. The Company pays a quarterly fee ranging from 20 basis points to 30 basis points on the unused portion of the $100 million available under the Amended Credit Agreement. At March 31, 2016, the Company had borrowing availability of $88.1 million under the Amended Credit Facility net of standby letters of credit outstanding of $1.9 million. The Company has a capital lease agreement for the land and building at the St. Nazaire, France operating facility, included in the Thermal/Acoustical Metals segment, requiring monthly principal and interest payments through 2016. The capital lease provides an option for the Company to purchase the land and building at the end of the lease for a nominal amount. In the first quarter of 2016, the Company notified the lessor of its intention to exercise its purchase option. Total outstanding debt consists of:
The carrying value of the Company’s Amended Credit Facility approximates fair value given the variable rate nature of the debt. As such this debt would be classified as a Level 2 liability within the fair value hierarchy. The weighted average interest rate on long-term debt was 1.5% for the three months ended March 31, 2016 and 1.3% for the year ended December 31, 2015. |
Equity Compensation Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Compensation Plans | Equity Compensation Plans As of March 31, 2016, the Company’s equity compensation plans consisted of the 2003 Stock Incentive Compensation Plan (the “2003 Plan”) and the 2012 Stock Incentive Plan (the “2012 Plan” and together with the 2003 Plan, the “Plans”) under which incentive and non-qualified stock options and time and performance based restricted shares have been granted to employees and directors from authorized but unissued shares of common stock or treasury shares. The 2003 Plan is not active, but continues to govern all outstanding awards granted under the plan until the awards themselves are exercised or terminate in accordance with their terms. The 2012 Plan, approved by shareholders on April 27, 2012, authorizes 1.75 million shares of common stock for awards. The 2012 Plan also authorizes an additional 1.2 million shares of common stock to the extent awards granted under prior stock plans that were outstanding as of April 27, 2012 are forfeited. The 2012 Plan provides for the following types of awards: options, restricted stock, restricted stock units and other stock-based awards. The Company accounts for the expense of all share-based compensation by measuring the awards at fair value on the date of grant. The Company recognizes expense on a straight-line basis over the vesting period of the entire award. Options issued by the Company under its stock option plans have a term of ten years and generally vest ratably over a period of three to four years. Time-based restricted stock grants are expensed over the vesting period of the award, which is typically two to four years. The number of performance based restricted shares that vest or forfeit depend upon achievement of certain targets during the performance period. Prior to January 1, 2016, stock compensation expense included estimated effects of forfeitures. Upon adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, in the first quarter of 2016, an accounting policy election has been made to account for forfeitures as they occur. Compensation expense for performance based awards is recorded based upon the service period and management’s assessment of the probability of achieving the performance goals and will be adjusted based upon actual achievement. The Company incurred equity compensation expense of $1.1 million and $0.6 million for the quarters ended March 31, 2016 and March 31, 2015, respectively, for the Plans, including restricted stock awards. No equity compensation costs were capitalized as part of inventory. Stock Options The following table is a summary of outstanding and exercisable options as of March 31, 2016:
There were 18,300 stock options granted and 18,326 stock options exercised during the quarter ended March 31, 2016 and no stock options granted and 59,582 stock options exercised during the quarter ended March 31, 2015. The amount of cash received from the exercise of stock options was $0.3 million during the quarter ended March 31, 2016 and $0.6 million during the quarter ended March 31, 2015. The intrinsic value of stock options exercised was $0.3 million with a tax benefit of $0.1 million during the quarter ended March 31, 2016 and the intrinsic value of stock options exercised was $1.2 million with a tax benefit of $0.4 million during the quarter ended March 31, 2015. At March 31, 2016, the total unrecognized compensation cost related to non-vested stock option awards was approximately $2.5 million, with a weighted average expected amortization period of 3.1 years. Restricted Stock Restricted stock includes both performance-based and time-based awards. There were 7,930 time-based restricted shares granted during the quarter ended March 31, 2016 and no time-based restricted shares granted during the quarter ended March 31, 2015. There were 7,380 performance-based restricted shares granted during the quarter ended March 31, 2016, which have a 2018 earnings per share target, and there were no performance-based awards granted in the quarter ended March 31, 2015. There were 65,087 performance-based shares that vested during the quarter ended March 31, 2016 in accordance with Plan provisions and there were no performance-based restricted shares that vested in the quarter ended March 31, 2015. There were 8,129 time-based restricted shares that vested during the quarter ended March 31, 2016 and there were 10,321 time-based shares that vested during the quarter ended March 31, 2015. At March 31, 2016, there were 266,533 unvested restricted stock awards with total unrecognized compensation cost related to these awards of $4.3 million with a weighted average expected amortization period of 2.1 years. Compensation expense for performance based awards is recorded based on the service period and management’s assessment of the probability of achieving the performance goals. |
Stock Repurchases |
3 Months Ended |
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Mar. 31, 2016 | |
Equity [Abstract] | |
Stock Repurchases | Stock Repurchases During the three months ended March 31, 2016, the Company purchased 26,842 shares of common stock valued at $0.7 million, through withholding, pursuant to provisions in agreements with recipients of restricted stock granted under the Company’s equity compensation plans, which allow the Company to withhold the number of shares having fair value equal to each recipient’s tax withholding due. |
Employer Sponsored Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employer Sponsored Benefit Plans | Employer Sponsored Benefit Plans As of March 31, 2016, the Company maintains a defined benefit pension plan that covers certain domestic Lydall employees (“domestic pension plan”) that is closed to new employees and benefits are no longer accruing. The domestic pension plan is noncontributory and benefits are based on either years of service or eligible compensation paid while a participant is in the plan. The Company’s funding policy is to fund not less than the ERISA minimum funding standard and not more than the maximum amount that can be deducted for federal income tax purposes. The Company expects to contribute approximately $3.6 million in cash to its domestic pension plan in 2016. There were no contributions made during the first quarter of 2016 or 2015. The following is a summary of the components of net periodic benefit cost, which is recorded primarily within selling, product development and administrative expenses, for the domestic pension plan for the quarters and nine months ended March 31, 2016 and 2015:
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Income Taxes |
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Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the first quarter of 2016 was 33.1% compared to an effective tax rate of 35.9% for the first quarter of 2015. The difference in the Company’s effective tax rate for the quarter ended March 31, 2016 compared to the quarter ended March 31, 2015 was primarily related to excess tax benefits from stock award exercises and vesting of $0.3 million, as a result of the adoption of ASU 2016-09 in the first quarter of 2016. The Company and its subsidiaries file a consolidated federal income tax return, as well as returns required by various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities, including such major jurisdictions as the United States, France, Germany, China, the United Kingdom and the Netherlands. With few exceptions, the Company is no longer subject to U.S. federal examinations for years before 2012, state and local examinations for years before 2011, and non-U.S. income tax examinations for years before 2003. The Company’s effective tax rates in future periods could be affected by earnings being lower or higher than anticipated in countries where tax rates differ from the United States federal tax rate, the relative impact of permanent tax adjustments on higher or lower earnings from domestic operations, changes in net deferred tax asset valuation allowances, the impact of the completion of acquisitions or divestitures, changes in tax rates or tax laws and the completion of tax projects and audits. |
Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share For the quarters ended March 31, 2016 and 2015, basic earnings per share were computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Unexercised stock options and unvested restricted shares are excluded from this calculation but are included in the diluted earnings per share calculation using the treasury stock method as long as their effect is not antidilutive. The following table provides a reconciliation of weighted-average shares used to determine basic and diluted earnings per share.
For the quarters ended March 31, 2016 and 2015, stock options for 0.2 million and 0.1 million shares of Common Stock, respectively, were not considered in computing diluted earnings per common share because they were antidilutive. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company’s reportable segments are Performance Materials, Industrial Filtration, Thermal/Acoustical Metals, and Thermal/Acoustical Fibers. Other Products and Services (“OPS”) included Life Sciences Vital Fluids, which was sold on January 30, 2015. Performance Materials Segment The Performance Materials segment includes filtration media solutions primarily for air, fluid power, and industrial applications (“Filtration”), thermal insulation solutions for building products, appliances, and energy and industrial markets (“Thermal Insulation”) and air and liquid life science applications (“Life Sciences Filtration”). Filtration products include LydAir® MG (Micro-Glass) Air Filtration Media, LydAir® MB (Melt Blown) Air Filtration Media, LydAir® SC (Synthetic Composite) Air Filtration Media, and Arioso™ Membrane Composite Media. These products constitute the critical media component of clean-air systems for applications in clean-space, commercial, industrial and residential HVAC, power generation, and industrial processes. Lydall has leveraged its extensive technical expertise and applications knowledge into a suite of media products covering the vast liquid filtration landscape across the engine and industrial fields. The LyPore® Liquid Filtration Media series address a variety of application needs in fluid power including hydraulic filters, air-water and air-oil coalescing, industrial fluid processes and diesel fuel filtration. Thermal Insulation products are high performance non-woven veils, papers, mats and specialty composites for the building products, appliance, and energy and industrial markets. The Manniglas® Thermal Insulation brand is diverse in its product application ranging from high temperature seals and gaskets in ovens and ranges to specialty veils for HVAC and cavity wall insulation. The appLY® Mat Needled Glass Mats have been developed to expand Lydall’s high temperature technology portfolio for broad application into the appliance market and supplements the Lytherm® Insulation Media product brand, traditionally utilized in the industrial market for kilns and furnaces used in metal processing. Lydall’s Cryotherm® Super-Insulating Media, CRS-Wrap® Super-Insulating Media and Cryo-Lite™ Cryogenic Insulation products are industry standards for state-of-the-art cryogenic insulation designs used by manufacturers of cryogenic equipment for liquid gas storage, piping, and transportation. Life Sciences Filtration products have been developed to meet the requirements of life science applications including biopharmaceutical pre-filtration and clarification, diagnostic and analytical testing, respiratory protection, life protection, medical air filtration, drinking water filtration and high purity process filtration such as that found in food and beverage and medical applications. Lydall also offers Solupor® Membrane specialty microporous membranes that are utilized in various markets and applications including air and liquid filtration and transdermal drug delivery. Solupor® membranes incorporate a unique combination of mechanical strength, chemical inertness, and high porosity in a unique open structure. Industrial Filtration Segment The Industrial Filtration segment includes non-woven felt media and filter bags used primarily in industrial air and liquid filtration applications. Non-woven filter media is the most commonly used filter technology to satisfy increasing emission control regulations in a wide range of industries, including power, cement, steel, asphalt, incineration, mining, food, and pharmaceutical. The business also produces non-woven rolled-good media that is used in other commercial applications and media for automotive applications that is supplied to the Company's Thermal/Acoustical Fibers segment. Industrial Filtration segment products include air and liquid filtration media sold under the brand names Fiberlox® high performance filtration felts, Checkstatic™ conductive filtration felts, Microfelt® high efficiency filtration felts, Pleatlox® pleatable filtration felts, Ultratech™ PTFE filtration felts, Powertech® and Powerlox® power generation filtration felts, Microcap® high efficiency liquid filtration felts, Duotech membrane composite filtration felts, along with traditional scrim supported filtration felts. Industrial Filtration also offers extensive finishing and coating capabilities which provide custom engineered properties tailored to meet the most demanding filtration applications. The business leverages a wide range of fiber types and extensive technical capabilities to provide products that meet our customers’ needs across a variety of applications providing both high performance and durability. Thermal/Acoustical Metals Segment The Thermal/Acoustical Metals segment offers a full range of innovative engineered products for the transportation sector to assist primarily in the reduction of powertrain and road noise as well as thermally shield sensitive components from high heat. Lydall products are found in the underbody (tunnel, fuel tank, exhaust, rear muffler and spare tire) and under hood (engine compartment, turbo charger, and manifolds) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. Thermal/Acoustical Metals segment products are formed on production lines capable of combining multiple layers of metal and thermal or acoustical media to provide an engineered thermal and acoustical shielding solution for an array of application areas in the global automotive and truck markets. The flux® product family in Thermal/Acoustical Metals includes several patented or IP-rich products that address applications which include: Direct Exhaust Mount heat shields, which are mounted to high temperature surfaces like exhaust down-pipes, turbochargers or engine manifolds using aluminized and stainless steel with high performance heat insulating materials; Powertrain heat shields that absorb noise at the source or are acoustically transparent and do not contribute to the engine’s noise budget; and Durable and thermally robust solutions for sensitive plastic components such as fuel tanks that are in proximity to high temperature heat sources. Thermal/Acoustical Fibers Segment The Thermal/Acoustical Fibers segment offers innovative engineered products to assist primarily in noise vibration and harshness (NVH) abatement within the transportation sector. Lydall products are found in the interior (dash insulators, cabin flooring), underbody (wheel well, aerodynamic belly pan, fuel tank, exhaust) and under hood (engine compartment) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles. Thermal/Acoustical Fibers segment products offer thermal and acoustical insulating solutions comprised of organic and inorganic fiber composites for the automotive and truck markets primarily in North America. Lydall’s dBCore® is a lightweight acoustical composite that emphasizes absorption principles over heavy-mass type systems. Lydall’s dBLyte® is a high-performance acoustical barrier with sound absorption and blocking properties and can be used throughout a vehicle’s interior to minimize intrusive noise from an engine compartment and road. Lydall’s ZeroClearance® is an innovative thermal solution that utilizes an adhesive backing for attachment and is used to protect vehicle components from excessive heat. Lydall’s specially engineered products provide a solution that provides weight reduction, superior noise suppression, and increased durability over conventional designs. Thermal/Acoustical Metals segment and Thermal/Acoustical Fibers segment operating results include allocations of certain costs shared between the segments. Other Products and Services The Life Sciences Vital Fluids business offered specialty products for blood filtration devices, blood transfusion single-use containers and the design and manufacture of single-use solutions for cell growth, frozen storage and fluid handling, as well as equipment for bioprocessing applications. On January 30, 2015, the Company sold all of the outstanding shares of common stock of its Life Sciences Vital Fluids business for a cash purchase price of $30.1 million. The disposition was completed pursuant to a Stock Purchase and Sale Agreement, dated January 30, 2015, by and among the Company, and the Buyer. The Company recognized an after tax gain on the sale of this business of approximately $11.8 million in the first quarter of 2015. The tables below present net sales and operating income by segment for the quarters ended March 31, 2016 and 2015, and also a reconciliation of total segment net sales and operating income to total consolidated net sales and operating income. Consolidated net sales by segment:
Operating income by segment:
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Commitments and Contingencies |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to legal proceedings, claims, investigations and inquiries that arise in the ordinary course of business such as, but not limited to, actions with respect to commercial, intellectual property, employment, personal injury, and environmental matters. The Company believes that it has meritorious defenses against the claims currently asserted against it and intends to defend them vigorously. While the outcome of litigation is inherently uncertain and the Company cannot be sure that it will prevail in any of the cases, subject to the matter referenced below, the Company is not aware of any matters pending that are expected to have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. Lydall Gerhardi GmbH & Co. KG ("Lydall Gerhardi"), which is an indirect wholly-owned subsidiary of the Company and part of the Thermal/Acoustical Metals segment, is cooperating with the German Federal Cartel Office (Bundeskartellamt) in connection with an investigation, initiated in the second quarter of 2014, relating to possible violations of German anti-trust laws by and among certain European automotive heat shield manufacturers, including Lydall Gerhardi. The Company conducted an internal investigation utilizing outside counsel. In the course of this internal investigation, the Company discovered instances of inappropriate conduct by certain German employees of Lydall Gerhardi. The Company disclosed its findings in an application for leniency submitted to the German Federal Cartel Office on July 22, 2014. The Company has taken, and will continue to take as necessary, remedial actions. The German Federal Cartel Office has wide discretion in fixing the amount of a fine, up to a maximum fine of ten percent (10%) of the Company’s annual revenue of the year preceding the year in which the fine is imposed. The Company believes a loss is probable and that such loss may be incurred in 2016. However, in light of the uncertainties and variables involved, the Company remains unable to estimate the amount of the loss associated with this matter. There can be no assurance that this matter will not have a material adverse effect on the Company. |
Changes in Accumulated Other Comprehensive Income (Loss) |
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Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The following table discloses the changes by classification within accumulated other comprehensive income (loss) for the periods ended March 31, 2016 and 2015:
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Basis of Financial Statement Presentation (Policies) |
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Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements include the accounts of Lydall, Inc. and its subsidiaries. All financial information is unaudited for the interim periods reported. All significant intercompany transactions have been eliminated in the Condensed Consolidated Financial Statements. The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The operating results of the Life Sciences Vital Fluids business have been included in the Consolidated Statement of Operations through the date of disposition, January 30, 2015. The year-end Condensed Consolidated Balance Sheet was derived from the December 31, 2015 audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Management believes that all adjustments, which include only normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position, results of operations and cash flows for the periods reported, have been included. For further information, refer to the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period". This ASU affects entities that grant their employees share-based payments in which terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments in this ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This ASU was effective for fiscal years beginning after December 15, 2015. The adoption of this ASU did not have any impact on the Company's consolidated financial statements and disclosures. In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". This ASU requires an entity to classify all deferred tax assets and liabilities, along with any related valuation allowance, as noncurrent on the balance sheet. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. This ASU is effective for fiscal years beginning after December 15, 2016, and early adoption is permitted. The Company adopted this standard prospectively during the quarter ended March 31, 2016. The adoption of this standard resulted in the reclassification of $4.6 million from current deferred income tax assets in the Consolidated Balance Sheet as of March 31, 2016 to noncurrent deferred income tax assets. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)". This ASU requires entities that lease assets with lease terms of more than 12 months to recognize right-of-use assets and lease liabilities created by those leases on their balance sheets. The ASU will also require new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. This ASU is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the method and impact the adoption of ASU 2016-02 will have on the Company’s consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-10, "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing". This ASU clarifies the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The effective date for this ASU is the same as the effective date for ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", which deferred the effective date of ASU 2014-09 to fiscal years beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the method and impact the adoption of ASU 2016-10 will have on the Company’s consolidated financial statements and disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and accounting for forfeitures. This ASU is effective for fiscal years beginning after December 15, 2016 and early adoption is permitted. The Company adopted this accounting standard update effective January 1, 2016. As a result of the adoption of this ASU, the Company recognized excess tax benefits from first quarter 2016 stock award exercises and vesting as a discrete tax benefit of $0.3 million during the quarter ended March 31, 2016. In addition, as a result of this change, excess tax benefits were excluded from the calculation of assumed proceeds in the Company’s calculation of diluted weighted shares. The Company’s diluted weighted shares outstanding as of March 31, 2016 increased 28,027 shares due to adoption of this amendment. Within the statement of cash flows, excess tax benefits of $0.3 million are included in net income and are therefore classified as an operating activity. The Company applied these changes prospectively, and therefore prior periods have not been adjusted. As permitted by this ASU, the Company has made an accounting policy election to record forfeitures as they occur rather than estimating expected forfeitures and, as a result, the cumulative effect of this change in accounting principle of $0.1 million was recorded as an adjustment to retained earnings as of January 1, 2016. The ASU permits equity classification of awards for tax withholding up to the maximum individual tax rate in a given jurisdiction for the net settlement of an award. As of March 31, 2016 the Company did not have liability classified awards and is currently evaluating its policy on tax withholding for award net settlement. |
Inventories (Tables) |
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Inventories | Inventories as of March 31, 2016 and December 31, 2015 were as follows:
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment as of and for the quarter ended March 31, 2016 were as follows:
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Amortization of the Company's Acquired Intangible Assets other than Goodwill | The table below presents the gross carrying amount and, as applicable, the accumulated amortization of the Company’s acquired intangible assets other than goodwill included in “Other intangible assets, net” in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015:
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Long-term Debt and Financing Arrangements (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | Total outstanding debt consists of:
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Equity Compensation Plans (Tables) |
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Summary Of Outstanding And Exercisable Options | The following table is a summary of outstanding and exercisable options as of March 31, 2016:
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Employer Sponsored Benefit Plans (Tables) |
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Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of The Components of Net Periodic Benefit Cost for the Domestic Pension Plan | The following is a summary of the components of net periodic benefit cost, which is recorded primarily within selling, product development and administrative expenses, for the domestic pension plan for the quarters and nine months ended March 31, 2016 and 2015:
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Earnings Per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Weighted Average Shares Used to Determine Basic and Diluted Earnings Per Share | The following table provides a reconciliation of weighted-average shares used to determine basic and diluted earnings per share.
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Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Net Sales by Segment | The tables below present net sales and operating income by segment for the quarters ended March 31, 2016 and 2015, and also a reconciliation of total segment net sales and operating income to total consolidated net sales and operating income. Consolidated net sales by segment:
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Operating Income by Segment |
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Changes in Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes By Classification Within Accumulated Other Comprehensive Income (Loss) | The following table discloses the changes by classification within accumulated other comprehensive income (loss) for the periods ended March 31, 2016 and 2015:
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Divestiture (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jan. 30, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from the sale of business, net | $ 0 | $ 28,370 | |
Gain on disposition of business | $ 0 | 18,647 | |
Vital Fluids | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from the sale of business, net | $ 30,100 | ||
Post closing adjustment to cash purchase price | $ 200 | ||
Gain on disposition of business | 18,600 | ||
Gain on sale of business, net of tax | $ 11,800 |
Inventories (Detail) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory, Net [Abstract] | ||
Raw materials | $ 20,956 | $ 17,128 |
Work in process | 16,288 | 14,670 |
Finished goods | 14,143 | 15,048 |
Gross inventory total | 51,387 | 46,846 |
Less: Progress billings | (236) | (316) |
Total inventories | $ 51,151 | $ 46,530 |
Inventories - Additional Information (Detail) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Gross tooling inventory | $ 9.8 | $ 9.5 |
Tooling inventory net of progress billings | $ 9.6 | $ 9.2 |
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Thousands |
3 Months Ended |
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Mar. 31, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning Balance | $ 16,841 |
Currency translation adjustments | 186 |
Other Activity | 0 |
Ending Balance | 17,027 |
Performance Materials | |
Goodwill [Roll Forward] | |
Beginning Balance | 12,898 |
Currency translation adjustments | 186 |
Other Activity | 0 |
Ending Balance | 13,084 |
Industrial Filtration | |
Goodwill [Roll Forward] | |
Beginning Balance | 3,943 |
Currency translation adjustments | 0 |
Other Activity | 0 |
Ending Balance | $ 3,943 |
Equity Compensation Plans (Detail) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
$ / shares
shares
| |
Shares | |
Outstanding at March 31, 2016 (shares) | shares | 447 |
Exercisable at March 31, 2016 (shares) | shares | 223 |
Unvested at March 31, 2016 (shares) | shares | 224 |
Weighted-Average Exercise Price (usd per share) | |
Outstanding at March 31, 2016 (in dollars per share) | $ / shares | $ 20.73 |
Exercisable at March 31, 2016 (in dollars per share) | $ / shares | 12.27 |
Unvested at March 31, 2016 (in dollars per share) | $ / shares | $ 29.15 |
Weighted- Average Remaining Contractual Term (years) | |
Outstanding at March 31, 2016 | 7 years 1 month |
Exercisable at March 31, 2016 | 5 years 4 months |
Unvested at March 31, 2016 | 8 years 10 months 20 days |
Aggregate Intrinsic Value | |
Outstanding at March 31, 2016 | $ | $ 5,654 |
Exercisable at March 31, 2016 | $ | 4,510 |
Unvested at March 31, 2016 | $ | $ 1,144 |
Stock Repurchases (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
shares
| |
Equity [Abstract] | |
Aggregate purchase price of shares repurchased | $ | $ 0.7 |
Stock repurchased during period (shares) | shares | 26,842 |
Employer Sponsored Benefit Plans (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
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Components of net periodic benefit cost | ||
Interest cost | $ 535 | $ 516 |
Expected return on assets | (605) | (590) |
Amortization of actuarial loss | 233 | 225 |
Net periodic benefit cost | $ 163 | $ 151 |
Employer Sponsored Benefit Plans - Additional Information (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
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Compensation and Retirement Disclosure [Abstract] | ||
Expected domestic pension plan cash contribution in current year | $ 3,600,000 | |
Contributions made by company to domestic pension plan | $ 0 | $ 0 |
Income Taxes (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
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New Accounting Pronouncement, Early Adoption [Line Items] | ||
Effective tax rate for income from continuing operations | 33.10% | 35.90% |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2016-09 | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Discrete tax benefit | $ (0.3) |
Earnings Per Share (Detail) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Earnings Per Share [Abstract] | ||
Basic average common shares outstanding (in shares) | 16,825 | 16,837 |
Effect of dilutive options and restricted stock awards (in shares) | 211 | 272 |
Diluted average common shares outstanding (in shares) | 17,036 | 17,109 |
Earnings Per Share - Additional Information (Detail) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Earnings Per Share [Abstract] | ||
Shares excluded from computation of diluted earnings per share (in shares) | 0.2 | 0.1 |
Segment Information - Operating Income by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Segment Reporting Information [Line Items] | ||
Consolidated Operating Income | $ 13,679 | $ 10,078 |
Operating Segments | Performance Materials | ||
Segment Reporting Information [Line Items] | ||
Consolidated Operating Income | 2,138 | 1,306 |
Operating Segments | Industrial Filtration | ||
Segment Reporting Information [Line Items] | ||
Consolidated Operating Income | 3,926 | 3,154 |
Operating Segments | Thermal/Acoustical Metals | ||
Segment Reporting Information [Line Items] | ||
Consolidated Operating Income | 3,557 | 3,581 |
Operating Segments | Thermal/Acoustical Fibers | ||
Segment Reporting Information [Line Items] | ||
Consolidated Operating Income | 10,324 | 7,093 |
Operating Segments | Other Products and Services | ||
Segment Reporting Information [Line Items] | ||
Consolidated Operating Income | 0 | 118 |
Corporate Office Expenses | ||
Segment Reporting Information [Line Items] | ||
Consolidated Operating Income | $ (6,266) | $ (5,174) |
Segment Information - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jan. 30, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from the sale of business, net | $ 0 | $ 28,370 | |
Intersegment Eliminations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Intercompany revenue | 4,500 | 2,000 | |
Industrial Filtration | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Intercompany revenue | $ 4,500 | 2,000 | |
Vital Fluids | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from the sale of business, net | $ 30,100 | ||
Gain on sale of business, net of tax | $ 11,800 |
Commitments and Contingencies (Details) |
Mar. 31, 2016 |
---|---|
Lydall Gerhardi | Unfavorable Regulatory Action | |
Loss Contingencies [Line Items] | |
Maximum potential fine, percent of revenue | 10.00% |
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ 245,225 | ||||
Other Comprehensive loss | 2,758 | $ (9,919) | |||
Amounts reclassified from accumulated other comprehensive income | [1] | 146 | 137 | ||
Ending balance | 257,899 | ||||
Loss reclassified from AOCI for defined benefit pension plans | 100 | ||||
Tax benefit reclassified from AOCI for defined benefit pension plans | 100 | ||||
Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (16,920) | (6,586) | |||
Other Comprehensive loss | 2,758 | (9,919) | |||
Amounts reclassified from accumulated other comprehensive income | [1] | 0 | 0 | ||
Ending balance | (14,162) | (16,505) | |||
Defined Benefit Pension Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (17,665) | (17,575) | |||
Other Comprehensive loss | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income | [1] | 146 | 137 | ||
Ending balance | (17,519) | (17,438) | |||
AOCI Attributable to Parent | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (34,585) | (24,161) | |||
Ending balance | $ (31,681) | $ (33,943) | |||
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