QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
☐ | Smaller reporting company | ||||||||||
Emerging growth company |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Amortization of intangible assets | |||||||||||||||||||||||
Loss on disposal of operating assets | |||||||||||||||||||||||
Gain on insurance recoveries | ( | ( | ( | ||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Foreign currency exchange loss, net | |||||||||||||||||||||||
Other loss (income), net | ( | ( | ( | ||||||||||||||||||||
Income before income tax expense (benefit) | |||||||||||||||||||||||
Income tax expense (benefit) | ( | ( | ( | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average number of common shares (basic) | |||||||||||||||||||||||
Weighted-average number of common shares (diluted) |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Foreign currency translation adjustment, net of tax $ | |||||||||||||||||||||||
Retirement plan liability adjustment, net of tax $ | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
June 30, 2021 | September 30, 2020 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables, net of allowance for doubtful accounts of $ | |||||||||||
Other receivables | |||||||||||
Contract assets | |||||||||||
Inventories, net | |||||||||||
Refundable income taxes | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current maturities of long-term debt | $ | $ | |||||||||
Revolver | |||||||||||
Short-term operating lease liabilities | |||||||||||
Accounts payable | |||||||||||
Accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current maturities | |||||||||||
Long-term operating lease liabilities, net of short-term | |||||||||||
Deferred income taxes | |||||||||||
Pension liability | |||||||||||
Other long-term liabilities | |||||||||||
Shareholders’ equity: | |||||||||||
Serial preferred shares, no par value, authorized | |||||||||||
Common shares, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Nine Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of debt issuance costs | |||||||||||
Loss on disposal of operating assets | |||||||||||
Gain on insurance proceeds received | ( | ( | |||||||||
LIFO effect | ( | ||||||||||
Share transactions under company stock plan | |||||||||||
Gain on extinguishment of debt | ( | ||||||||||
Other long-term liabilities | ( | ||||||||||
Deferred income taxes | ( | ( | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | |||||||||||
Contract assets | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Refundable income taxes | |||||||||||
Prepaid expenses and other current assets | ( | ||||||||||
Other assets | |||||||||||
Accounts payable | ( | ||||||||||
Other accrued liabilities | ( | ||||||||||
Accrued income and other taxes | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Insurance proceeds received | |||||||||||
Capital expenditures | ( | ( | |||||||||
Net cash used for investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from long-term debt | |||||||||||
Payments on long-term debt | ( | ( | |||||||||
Proceeds from revolving credit agreement | |||||||||||
Repayments of revolving credit agreement | ( | ( | |||||||||
Payment of debt issuance costs | ( | ||||||||||
Short-term debt borrowings | |||||||||||
Short-term debt repayments | ( | ( | |||||||||
Net cash used for financing activities | ( | ( | |||||||||
Decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at the beginning of the period | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | |||||||||||
Cash and cash equivalents at the end of the period | $ | $ | |||||||||
Supplemental disclosure of cash flow information of operations: | |||||||||||
Cash paid for interest | $ | ( | $ | ( | |||||||
Cash paid for income taxes, net | $ | ( | $ | ( | |||||||
Nine Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Common | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance - September 30, 2020 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | |||||||||||||||||||||||||||||||||||
Performance and restricted share expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share transactions under equity based plans | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Balance - June 30, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Common | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance - March 31, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Comprehensive loss | — | — | — | |||||||||||||||||||||||||||||||||||
Performance and restricted share expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance - June 30, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Nine Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Common | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance - September 30, 2019 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | |||||||||||||||||||||||||||||||||||
Other | — | — | — | |||||||||||||||||||||||||||||||||||
Performance and restricted share expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share transactions under equity based plans | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Balance - June 30, 2020 | $ | $ | $ | $ | ( | $ |
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Common | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Balance - March 31, 2020 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Comprehensive loss | — | — | — | |||||||||||||||||||||||||||||||||||
Performance and restricted share expense | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share transactions under equity based plans | — | — | ||||||||||||||||||||||||||||||||||||
Balance - June 30, 2020 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding (basic and diluted) | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Restricted shares | |||||||||||||||||||||||
Performance shares | |||||||||||||||||||||||
Weighted-average common shares outstanding (basic and diluted) | |||||||||||||||||||||||
Net income per share – basic: | $ | $ | $ | $ | |||||||||||||||||||
Net income per share – diluted: | $ | $ | $ | $ | |||||||||||||||||||
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share |
June 30, 2021 | September 30, 2020 | ||||||||||
Raw materials and supplies | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
June 30, 2021 | September 30, 2020 | ||||||||||
Foreign currency translation adjustment | $ | ( | $ | ( | |||||||
Retirement plan liability adjustment, net of tax | ( | ( | |||||||||
Total accumulated other comprehensive loss | $ | ( | $ | ( |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Finance lease expense: | |||||||||||||||||||||||
Amortization of right-of use assets on finance leases | $ | $ | $ | $ | |||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Operating lease expense: | |||||||||||||||||||||||
Variable lease cost: | |||||||||||||||||||||||
Total lease expense | $ | $ | $ | $ |
Classification in the consolidated condensed balance sheets | June 30, 2021 | September 30, 2020 | ||||||||||||
Assets: | ||||||||||||||
Finance lease assets | $ | $ | ||||||||||||
Operating lease assets | Operating lease right-of-use assets, net | |||||||||||||
Total lease assets | $ | $ | ||||||||||||
Current liabilities: | ||||||||||||||
Finance lease liabilities | $ | $ | ||||||||||||
Operating lease liabilities | Short-term operating lease liabilities | |||||||||||||
Non-current liabilities: | ||||||||||||||
Finance lease liabilities | ||||||||||||||
Operating lease liabilities | Long-term operating lease liabilities, net of short-term | |||||||||||||
Total lease liabilities | $ | $ |
June 30, 2021 | June 30, 2020 | ||||||||||
Other Information | |||||||||||
Cash paid for amounts included in measurement of liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Operating cash flows from finance leases | |||||||||||
Financing cash flows from finance leases | |||||||||||
Right-of-use assets obtained in exchange for new lease liabilities: | |||||||||||
Operating leases |
June 30, 2021 | September 30, 2020 | ||||||||||
Weighted-average remaining lease term (years): | |||||||||||
Finance leases | |||||||||||
Operating leases | |||||||||||
Weighted-average discount rate: | |||||||||||
Finance leases | % | % | |||||||||
Operating leases | % | % |
Finance Leases | Operating Leases | |||||||
Year ending September 30, | ||||||||
2021 (excluding the nine months ended June 30, 2021) | $ | $ | ||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Total lease payments | $ | $ | ||||||
Less: Imputed interest | ( | ( | ||||||
Present value of lease liabilities | $ | $ |
June 30, 2021 | September 30, 2020 | ||||||||||
Revolving credit agreement | $ | $ | |||||||||
Foreign subsidiary borrowings | |||||||||||
Finance lease obligations | |||||||||||
Other, net of unamortized debt issuance costs $( | |||||||||||
Total debt | |||||||||||
Less – current maturities | ( | ( | |||||||||
Total long-term debt | $ | $ |
June 30, 2021 | September 30, 2020 | ||||||||||
Term loan | $ | $ | |||||||||
Short-term borrowings | |||||||||||
Factor | |||||||||||
Total debt | $ | $ | |||||||||
Less – current maturities | ( | ( | |||||||||
Total long-term debt | $ | $ | |||||||||
Receivables pledged as collateral | $ | $ |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of net loss | |||||||||||||||||||||||
Net periodic cost | $ | $ | $ | $ |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Commercial revenue | $ | $ | $ | $ | |||||||||||||||||||
Military revenue | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
Net Sales | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Aerospace components for: | |||||||||||||||||||||||
Fixed wing aircraft | $ | $ | $ | $ | |||||||||||||||||||
Rotorcraft | |||||||||||||||||||||||
Energy components for power generation units | |||||||||||||||||||||||
Commercial product and other revenue | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
Net Sales | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
North America | $ | $ | $ | $ | |||||||||||||||||||
Europe | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Contract assets - Beginning balance, October 1, 2020 | $ | |||||||
Additional revenue recognized over-time | ||||||||
Less amounts billed to the customers | ( | |||||||
Contract assets - Ending balance, June 30, 2021 | $ |
Contract liabilities (included within Accrued liabilities) - Beginning balance, October 1, 2020 | $ | ( | ||||||
Payments received in advance of performance obligations | ( | |||||||
Performance obligations satisfied | ||||||||
Contract liabilities (included within Accrued liabilities) - Ending balance, June 30, 2021 | $ | ( |
Balance sheet (Other receivables): | ||||||||
September 30, 2020 | $ | |||||||
Cash proceeds | ( | |||||||
Capital expenditures (equipment) | ||||||||
Other expenses | ||||||||
Business interruption | ||||||||
June 30, 2021 | $ |
Nine Months Ended June 30, 2021 | |||||||||||
Balance without insurance proceeds | Insurance recoveries | Balance with insurance proceeds | |||||||||
Cost of goods sold | $ | ( | $ | ||||||||
Gain on insurance proceeds received | $ | ( | $ | ( | |||||||
Income (loss) before income tax (benefit) expense | $ | ( | ( | $ |
Nine Months Ended June 30, 2020 | |||||||||||
Balance without insurance proceeds | Insurance recoveries | Balance with insurance proceeds | |||||||||
Cost of goods sold | $ | ( | $ | ||||||||
Gain on insurance proceeds received | $ | ( | $ | ( | |||||||
Income (loss) before income tax (benefit) expense | $ | ( | ( | $ |
Total Claim | |||||
Property & damage ** | $ | ||||
Extra expense & mitigation expense | |||||
Business interruption | |||||
$ |
(Dollars in millions) | Nine Months Ended June 30, | Increase/ (Decrease) | |||||||||||||||
Net Sales | 2021 | 2020 | |||||||||||||||
Aerospace components for: | |||||||||||||||||
Fixed wing aircraft | $ | 28.9 | $ | 39.1 | $ | (10.2) | |||||||||||
Rotorcraft | 21.7 | 22.3 | (0.6) | ||||||||||||||
Energy components for power generation units | 14.8 | 9.9 | 4.9 | ||||||||||||||
Commercial product and other revenue | 9.9 | 13.2 | (3.3) | ||||||||||||||
Total | $ | 75.3 | $ | 84.5 | $ | (9.2) |
Weighted Average Interest Rate Nine Months Ended June 30, | Weighted Average Outstanding Balance Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revolving credit agreement | 1.5 | % | 3.2 | % | $ 8.8 million | $ 14.8 million | |||||||||||||||||
Foreign term debt | 3.5 | % | 3.9 | % | $ 7.0 million | $ 5.5 million | |||||||||||||||||
Other debt | 0.9 | % | 0.4 | % | $ 5.7 million | $ 6.1 million |
(Dollars in millions) | Three Months Ended June 30, | Increase (Decrease) | |||||||||||||||
Net Sales | 2021 | 2020 | |||||||||||||||
Aerospace components for: | |||||||||||||||||
Fixed wing aircraft | $ | 8.9 | $ | 13.7 | $ | (4.8) | |||||||||||
Rotorcraft | 6.1 | 8.7 | (2.6) | ||||||||||||||
Energy components for power generation units | 3.2 | 3.8 | (0.6) | ||||||||||||||
Commercial product and other revenue | 7.1 | 1.6 | 5.5 | ||||||||||||||
Total | $ | 25.3 | $ | 27.8 | $ | (2.5) |
Weighted Average Interest Rate Three Months Ended June 30, | Weighted Average Outstanding Balance Three Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revolving credit agreement | 1.5 | % | 2.0 | % | $ 8.0 million | $ 12.5 million | |||||||||||||||||
Foreign term debt | 3.4 | % | 3.9 | % | $ 6.8 million | $ 5.3 million | |||||||||||||||||
Other debt | 0.9 | % | 0.9 | % | $ 5.6 million | $ 6.1 million |
Dollars in thousands | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income | $ | 254 | $ | 2,250 | $ | 1,756 | $ | 4,168 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Depreciation and amortization expense | 1,980 | 1,845 | 5,710 | 5,576 | |||||||||||||||||||
Interest expense, net | 143 | 183 | 478 | 697 | |||||||||||||||||||
Income tax expense (benefit) | (36) | 33 | (776) | (101) | |||||||||||||||||||
EBITDA | 2,341 | 4,311 | 7,168 | 10,340 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Foreign currency exchange loss, net (1) | 1 | 12 | 22 | 12 | |||||||||||||||||||
Other loss (income), net (2) | (232) | 27 | (129) | (58) | |||||||||||||||||||
Loss on disposal of assets (3) | — | 55 | — | 98 | |||||||||||||||||||
Gain on insurance recoveries (4) | — | (1,683) | (2,495) | (2,683) | |||||||||||||||||||
Equity compensation (5) | 85 | 37 | 378 | 262 | |||||||||||||||||||
LIFO impact (6) | 248 | (5) | 582 | (16) | |||||||||||||||||||
Adjusted EBITDA | $ | 2,443 | $ | 2,754 | $ | 5,526 | $ | 7,955 |
Exhibit No. | Description | |||||||
2.1 | ||||||||
2.2 | ||||||||
3.1 | ||||||||
3.2 | ||||||||
9.1 | ||||||||
9.2 | ||||||||
9.3 | ||||||||
9.4 | ||||||||
9.5 |
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 | ||||||||
10.10 | ||||||||
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 | ||||||||
10.15 | ||||||||
10.16 | ||||||||
10.17 | ||||||||
10.18 | ||||||||
10.19 | ||||||||
10.20 |
10.21 | ||||||||
10.22 | ||||||||
10.23 | ||||||||
14.1 | ||||||||
*31.1 | ||||||||
*31.2 | ||||||||
*32.1 | ||||||||
*32.2 | ||||||||
*101 | The following financial information from SIFCO Industries, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 filed with the SEC on August 6, 2021, formatted in XBRL includes: (i) Consolidated Condensed Statements of Operations for the fiscal periods ended June 30, 2021 and 2020, (ii) Consolidated Condensed Statements of Comprehensive Income for the fiscal periods ended June 30, 2021 and 2020, (iii) Consolidated Condensed Balance Sheets at June 30, 2021 and September 30, 2020, (iv) Consolidated Condensed Statements of Cash Flow for the fiscal periods ended June 30, 2021 and 2020, (iv) Consolidated Condensed Statements of Shareholders' Equity for the periods June 30, 2021 and 2020, and (v) the Notes to the Consolidated Condensed Financial Statements. | |||||||
*104 | Cover Page Interactive Data File: the cover page XBRL tags are embedded within the Inline XBRL document and are contained with Exhibit 101 |
SIFCO Industries, Inc. | ||||||||
(Registrant) | ||||||||
Date: August 6, 2021 | /s/ Peter W. Knapper | |||||||
Peter W. Knapper | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Date: August 6, 2021 | /s/ Thomas R. Kubera | |||||||
Thomas R. Kubera | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: August 6, 2021 | /s/ Peter W. Knapper | |||||||
Peter W. Knapper | ||||||||
President and Chief Executive Officer |
Date: August 6, 2021 | /s/ Thomas R. Kubera | |||||||
Thomas R. Kubera | ||||||||
Chief Financial Officer | ||||||||
Date: August 6, 2021 | /s/ Peter W. Knapper | |||||||
Peter W. Knapper | ||||||||
President and Chief Executive Officer |
Date: August 6, 2021 | /s/ Thomas R. Kubera | |||||||
Thomas R. Kubera | ||||||||
Chief Financial Officer | ||||||||
Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Statement [Abstract] | ||||
Net sales | $ 25,330 | $ 27,777 | $ 75,274 | $ 84,521 |
Cost of goods sold | 22,040 | 23,628 | 65,317 | 70,771 |
Gross profit | 3,290 | 4,149 | 9,957 | 13,750 |
Selling, general and administrative expenses | 2,912 | 2,864 | 10,336 | 10,393 |
Amortization of intangible assets | 248 | 408 | 765 | 1,224 |
Loss on disposal of operating assets | 0 | 55 | 0 | 98 |
Gain on insurance recoveries | 0 | (1,683) | (2,495) | (2,683) |
Operating income | 130 | 2,505 | 1,351 | 4,718 |
Interest expense | 143 | 183 | 478 | 697 |
Foreign currency exchange loss, net | 1 | 12 | 22 | 12 |
Other loss (income), net | (232) | 27 | (129) | (58) |
Income before income tax expense (benefit) | 218 | 2,283 | 980 | 4,067 |
Income tax expense (benefit) | (36) | 33 | (776) | (101) |
Net income | $ 254 | $ 2,250 | $ 1,756 | $ 4,168 |
Net income per share | ||||
Basic (in dollars per share) | $ 0.04 | $ 0.40 | $ 0.31 | $ 0.74 |
Diluted (in dollars per share) | $ 0.04 | $ 0.39 | $ 0.29 | $ 0.72 |
Weighted-average number of common shares (basic) (in shares) | 5,779 | 5,676 | 5,753 | 5,656 |
Weighted-average number of common shares (diluted) (in shares) | 6,006 | 5,807 | 5,960 | 5,768 |
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 254 | $ 2,250 | $ 1,756 | $ 4,168 |
Other comprehensive income: | ||||
Foreign currency translation adjustment, net of tax $0 and $0 for the three months ended and net of tax $0 and $0 for the nine months ended, respectively | 79 | 113 | 62 | 175 |
Retirement plan liability adjustment, net of tax $0 and $0 for the three months end and net of tax $0 and $0 for the nine month ended, respectively | 211 | 188 | 634 | 626 |
Comprehensive income | $ 544 | $ 2,551 | $ 2,452 | $ 4,969 |
Consolidated Condensed Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
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Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Retirement plan liability adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
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Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 120 | $ 249 |
Serial preferred shares, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common shares, shares issued (in shares) | 5,989,000 | 5,916,000 |
Common shares, shares outstanding (in shares) | 5,989,000 | 5,916,000 |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies A. Principles of Consolidation The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the "Company"). All significant intercompany accounts and transactions have been eliminated in consolidation. The U.S. dollar is the functional currency for all of the Company’s U.S. operations and its non-operating subsidiaries. For these operations, all gains and losses from completed currency transactions are included in income. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange for the period. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements. These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2020 Annual Report on Form 10-K. The year-end consolidated balance sheet data was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the United States ("U.S."). The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year. B. Accounting Policies A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company's fiscal 2020 Annual Report on Form 10-K. C. Net Income per Share The Company’s net income per basic share has been computed based on the weighted-average number of common shares outstanding. Net income per diluted share reflects the effect of the Company's outstanding restricted shares and performance shares under the treasury method. The dilutive effect is as follows:
D. Impact of Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" and subsequent updates. ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The new guidance will replace the current incurred loss approach with an expected loss model. The new expected credit loss impairment model will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt instruments, net investments in leases, loan commitments and standby letters of credit. Upon initial recognition of the exposure, the expected credit loss model requires entities to estimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses should consider historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. Financial instruments with similar risk characteristics should be grouped together when estimating expected credit losses. ASU 2016-13 does not prescribe a specific method to make the estimate, so its application will require significant judgment. ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. However, in November 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)," which defers the effective date for public filers that qualify as a smaller reporting company("SRC"), as defined by the Securities and Exchange Commission, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Because SIFCO is considered a SRC, the Company does not need to implement ASU 2016-13 until October 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company's results within the consolidated condensed statements of operations and financial condition. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which was issued to (i) reduce the complexity of the standard by removing certain exceptions to the general principles in Topic 740 and (ii) improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective beginning October 1, 2021. The Company continues to evaluate the effect that adopting this ASU will have on the Company's results within the consolidated condensed statements of operations and financial condition. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This ASU, along with recently issued ASU 2021-01, which further clarifies the scope of Topic 848, is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. ASU 2020-04 was effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company has not applied any optional expedients and exceptions to date, and will continue to evaluate the impact of the guidance and whether it will apply the optional expedients and exceptions. In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20)," which adds the following disclosure requirements: (1) the weighted-average interest crediting rates used in the Company's cash balance pension plans and other similar plans; (2) a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period; and (3) an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by Accounting Standards Codification ("ASC") Topic 715, "Compensation - Retirement Benefits." The ASU also clarifies the guidance included in ASC 715-20-50-3 on defined benefit plans disclosure requirements. This ASU will be effective October 1, 2021 and the Company is currently assessing the impact that this standard will have on our consolidated condensed financial statements.
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Inventories |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consist of:
For a portion of the Company's inventory, cost is determined using the last-in, first-out ("LIFO") method. Approximately 37% and 47% of the Company’s inventories at June 30, 2021 and September 30, 2020, respectively, use the LIFO method. An actual valuation of inventory under the LIFO method is made at the end of each fiscal year based on the inventory levels and costs existing at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because the actual results may vary from these estimates, calculations are subject to many factors beyond management’s control, and annual results may differ from interim results as they are subject to adjustments based on the differences between the estimates and the actual results. The first-in, first-out (“FIFO”) method is used for the remainder of the inventories, which are stated at the lower of cost or net realizable value. If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $8,868 and $8,286 higher than reported at June 30, 2021 and September 30, 2020, respectively.
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Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The components of lease expense were as follows:
The following table presents the impact of leasing on the consolidated condensed balance sheet.
Supplemental cash flow and other information related to leases were as follows:
Future minimum lease under non-cancellable leases at June 30, 2021 were as follows:
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Leases | Leases The components of lease expense were as follows:
The following table presents the impact of leasing on the consolidated condensed balance sheet.
Supplemental cash flow and other information related to leases were as follows:
Future minimum lease under non-cancellable leases at June 30, 2021 were as follows:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consists of:
Credit Agreement and Security Agreement The Company's asset-based Credit Agreement (as amended, the "Credit Agreement"), Security Agreement (“Security Agreement”) and Export Credit Agreement (as amended, the "Export Credit Agreement") are secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 66.67% of the stock of its first-tier non-U.S. subsidiaries. The Credit Agreement (as amended by Fifth Amendment (the "Fifth Amendment") described below), consists of a senior secured revolving credit facility with a maximum borrowing of $28,000. The revolving commitment through the Export Credit Agreement, as amended, which lends amounts to the Company on foreign receivables is $7,000. The Credit Agreement also has an accordion feature, which allows the Company to increase maximum borrowings by up to $10,000 upon consent of the Lender (as defined below) or upon additional lenders joining the Credit Agreement. The Credit Agreement and the Export Agreement were amended on February 19, 2021, when the Company and certain of its subsidiaries (collectively, the "borrowers") entered into the Fifth Amendment to the Credit Agreement and the First Amendment (the "First Amendment") to the Export Credit Agreement, in each case, with JPMorgan Chase Bank, N.A., a national banking association, (the "Lender"). The combined maximum borrowings remain unchanged at $35,000; however the maximum borrowing under the Credit Agreement was decreased to $28,000 (from $30,000) and the revolving commitment through the Export Agreement was increased to $7,000 (from $5,000). The Fifth Amendment, among other things, extended the maturity date from August 6, 2021 to February 19, 2024. The Credit Agreement contains affirmative and negative covenants and events of defaults. Prior to the Fifth Amendment, the Credit Agreement required the Company to maintain a fixed charge coverage ratio ("FCCR") of 1.1:1.0 any time the availability is equal to or less than 12.5% of the revolving commitment. However, the Fifth Amendment provides that the Company will not permit the fixed charge coverage ratio to be less than 1.1 to 1.0 as of the last day of any calendar month; provided that the fixed charge coverage ratio will not be tested unless (i) a default has occurred and is continuing, (ii) when the combined availability was less than or equal to the greater of (x) 10% of the lesser of the combined commitments or (y) 10% of the combined borrowing base, and $2,000, for three or more business days in any consecutive 30 day period. In the event of a default, the Company may not be able to access the revolver, which could impact the ability to fund working capital needs, capital expenditures and invest in new business opportunities. The total collateral at June 30, 2021 and September 30, 2020 was $28,628 and $26,964, respectively and the revolving commitment was $35,000 for both periods. Total availability at June 30, 2021 and September 30, 2020 was $17,543 and $13,284, respectively, which exceed both the collateral and total commitment threshold. Since the availability was greater than the 10.0% of the revolving commitment as of June 30, 2021 and 12.5% of the revolving commitment at September 30, 2020, the FCCR calculation was not required. Borrowings will bear interest at the Lender's established domestic rate or LIBOR, plus the applicable margin as set forth in the Fifth Amendment. The revolver has a rate based on LIBOR plus 1.75% spread, which was 1.84% at June 30, 2021 and a rate based on LIBOR plus 1.5% spread, which was 1.7% at September 30, 2020. The Export Credit Agreement has a rate based on LIBOR plus 1.25% spread, which was 1.3% at June 30, 2021 and a rate based on LIBOR plus 1.0% spread, which was 1.2% at September 30, 2020, respectively. The Company also has a commitment fee of 0.25% under the Credit Agreement as amended to be incurred on the unused balance of the revolver. Foreign subsidiary borrowings Foreign debt consists of:
Interest rates on foreign borrowings are based on Euribor rates which range from 1.0% to 4.2%. The Maniago, Italy ("Maniago") location obtained borrowings from two separate lenders in the third quarter of fiscal 2021. The first loan was for $717 with repayment terms of 6.5 years, of which $287 was forgiven in the same period and was recorded in other income within the consolidated condensed statements of operations and treated as a gain in debt extinguishment. A second loan with a five year term was obtained in the amount of $303. The proceeds of these loans were to be used for working capital purposes. The Company factors receivables from one of its customers. The Company accounts for the pledge of receivables under this agreement as short-term debt and continues to carry the receivables on its consolidated condensed balance sheets. Debt issuance costs The Company incurred debt issuance costs as it pertains to the Fifth Amendment in the amount of $45 and combined the amount with the remaining unamortized debt issuance costs prior to the amendment for a total of $86, which is included in the consolidated condensed balance sheets as a deferred charge in other current assets, net of amortization of $10 and $205 at June 30, 2021 and September 30, 2020, respectively. Other On April 10, 2020, the Company entered into an unsecured promissory note under the Paycheck Protection Program (the “PPP Loan”). The PPP Loan to the Company was made through JPMorgan Chase Bank, N.A., a national banking association and the Company’s existing lender. The note has an aggregate principal amount of approximately $5,025, of which $261 was repaid in fiscal 2020 and has a two year term. The interest rate on the PPP Loan is 0.98%, which was deferred for the first six months of the term of the loan. The promissory note evidencing the PPP Loan contains customary events of default. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owed from the Company, and/or filing suit and obtaining judgment against the Company. The loan proceeds were received on April 10, 2020 and were used for payroll payments. As of June 30, 2021 and September 30, 2020, the PPP loan balance was $4,764. PPP Loan recipients can apply for and potentially be granted forgiveness for all or a portion of loans granted under the Paycheck Protection Program. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payroll costs. As of June 30, 2021, the Company has submitted the application for forgiveness to the Small Business Administration. However, no assurance is provided that the Company will obtain forgiveness of the PPP Loan in whole or in part.
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Income Taxes |
9 Months Ended |
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Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 27, 2020, the Consolidated Appropriations Act, 2021 (the "Appropriations Act") was enacted in response to the COVID-19 pandemic. The Appropriations Act, among other actions temporarily extends through December 31, 2025 certain expiring tax credit and other provisions. Additionally, the Appropriations Act enacts new provisions and extends certain provisions originated within the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), enacted on March 27, 2020. The CARES Act included provisions relating to refundable payroll tax credits, deferral of certain payment requirements for the employer portion of Social Security taxes, net operating loss carryback periods and temporarily increasing the amount of net operating losses that corporations can use to offset income, alternative minimum tax ("AMT") credit refunds, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The Appropriations Act and CARES Act did not materially affect the Company’s income tax provision, deferred tax assets and liabilities, or related taxes payable through the third quarter of fiscal 2021. The Company will continue to assess the implications of these and any new relief provisions on its consolidated condensed financial statements but does not expect the impact to be material. For each interim reporting period, the Company makes an estimate of the effective tax rate it expects to be applicable for the full fiscal year for its operations. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company’s effective tax rate through the first nine months of fiscal 2021 was (79)%, compared with (2)% for the same period of fiscal 2020. The decrease in the effective rate was primarily attributable to tax benefits from adjusting deferred taxes recorded in Italy recognized on a discrete basis, partially offset by changes in jurisdictional mix of income in fiscal 2021 compared to the same period of fiscal 2020. The effective tax rate differs from the U.S. federal statutory rate due primarily to the valuation allowance against the Company’s U.S. deferred tax assets and income in foreign jurisdictions that are taxed at different rates than the U.S. statutory tax rate. Recent positive evidence related to the potential or partial release of the Company's valuation allowance includes profitable U.S. results, however, there continues to be uncertainty as a result of the ongoing COVID-19 pandemic. As such, the Company has maintained a full valuation allowance on its U.S. net deferred tax assets in the third quarter of fiscal 2021. It is reasonably possible that sufficient positive evidence required to release all, or a portion of the valuation allowance in the U.S. will exist within the next 12 months. The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland, Italy, and various state and local jurisdictions.
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Retirement Benefit Plans |
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Retirement Benefit Plans | Retirement Benefit Plans The Company and certain of its subsidiaries sponsor defined benefit pension plans covering some of its employees. The components of net periodic benefit cost of the Company’s defined benefit plans are as follows:
During the nine months ended June 30, 2021 and 2020, the Company made $67 and $604 in contributions, respectively, to its defined benefit pension plans. The Company anticipates making no additional cash contributions to fund its defined benefit pension plans for the balance of fiscal 2021 and will use carryover balances from previous periods that have been available for use as a credit to reduce the amount of cash contributions that the Company is required to make to certain defined benefit plans in fiscal 2021. The Company's ability to elect to use such carryover balance will be determined based on the actual funded status of each defined benefit pension plan relative to the plan's minimum regulatory funding requirements. The Company does not anticipate making cash contributions above the minimum funding requirement to fund its defined benefit pension plans during the balance of fiscal 2021.
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Stock-Based Compensation |
9 Months Ended |
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Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has awarded performance and restricted shares under the Company's 2007 Long-Term Incentive Plan ("2007 Plan") and the Company's 2007 Long-Term Incentive Plan (Amended and Restated as of November 16, 2016) (as further amended, the "2016 Plan"). The aggregate number of shares that may be awarded by the Company under the 2016 Plan is 1,196 shares, less any shares previously awarded and subject to an adjustment for the forfeiture of any unvested shares. In addition, shares that may be awarded are subject to individual recipient award limitations. The shares awarded under the 2016 Plan may be made in multiple forms, including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such award is exercisable no later than ten years from the date of the grant. The performance shares that have been awarded under both plans generally provide for the vesting of the Company’s common shares upon the Company achieving certain defined financial performance objectives during a period up to three years following the making of such award. The ultimate number of common shares of the Company that may be earned pursuant to an award ranges from a minimum of no shares to a maximum of 200% of the initial target number of performance shares awarded, depending on the level of the Company’s achievement of its financial performance objectives. Beginning in fiscal 2020, the maximum share amount that may be achieved was reduced to 150% of target. With respect to such performance shares, compensation expense is being accrued based on the probability of meeting the performance target. The Company is currently recognizing compensation expense for two tranches of awards at 50% of target where it has concluded it is probable that the performance criteria for those awards will be met, while the Company is currently not recognizing compensation expense for one tranche of awards where it has concluded that it is not probable that the performance criteria for those awards will be met. During each future reporting period, such expense may be subject to adjustment based upon the Company's financial performance, which impacts the number of common shares that it expects to vest upon the completion of the performance period. The performance shares were valued at the closing market price of the Company’s common shares on the date of the grant. The vesting of such shares is determined at the end of the performance period. The Company has awarded restricted shares to its directors, officers, and other employees of the Company. The restricted shares were valued at the closing market price of the Company’s common shares on the date of the grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one year or three years. In fiscal 2021, the Company granted 120 shares under the 2016 Plan to certain key employees. The awards were split into two tranches, 71 performance shares and 49 shares of time-based restricted shares, with a grant date fair value of $3.74 per share. The awards vest over three years. In fiscal 2021, the Company granted its non-employee directors 30 restricted shares under the 2016 Plan, with a grant date fair value of $9.08, which vests over one year. One award for 57 restricted shares vested. If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 442 shares that remain available for award at June 30, 2021. If any of the outstanding share awards are ultimately earned and vest at greater than the target number of shares, up to a maximum of 200% or 150% of such target, then a fewer number of shares would be available for award. Stock-based compensation under the 2016 Plan was $378 and $262 during the first nine months of fiscal 2021 and 2020, respectively and $85 and $37 during the three months of fiscal 2021 and 2020, respectively. As of June 30, 2021, there was $505 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2016 Plan. The Company expects to recognize this cost over the next 1.3 years.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue The Company produces forged components for (i) turbine engines that power commercial, business and regional aircraft as well as military aircraft and other military applications; (ii) airframe applications for a variety of aircraft; (iii) industrial gas and steam turbine engines for power generation units; and (iv) other commercial applications. The following table represents a breakout of total revenue by customer type:
The following table represents revenue by the various components:
The following table represents revenue by geographic region based on the Company's selling operation locations:
In addition to the disaggregated revenue information provided above, approximately 65% and 60% of total net sales as of June 30, 2021 and 2020, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time. Contract Balances The following table contains a roll forward of contract assets and contract liabilities for the period ended June 30, 2021:
There were no impairment losses recorded on contract assets as of June 30, 2021 and September 30, 2020. Remaining performance obligations As of June 30, 2021, the Company has $78,083 of remaining performance obligations, the majority of which are anticipated to be completed within the next twelve months.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company may be involved in ordinary, routine legal actions. The Company cannot reasonably estimate future costs, if any, related to these matters; however, it does not believe any such matters are material to its financial condition or results of operations. The Company maintains various liability insurance coverages to protect its assets from losses arising out of or involving activities associated with ongoing and normal business operations; however, it is possible that the Company’s future operating results could be affected by future costs of litigation. A subsidiary of the Company, Quality Aluminum Forge, LLC ("Orange"), is currently a defendant in a lawsuit filed by Avco Corporation (“Avco”) in the Pennsylvania State Court, which was filed in August 2019, alleging that certain forged pistons delivered by the Orange plant failed to meet material specifications required by Avco. Avco also sued Arconic, Inc. (“Arconic”), which was the raw material supplier. No specific amount of damages was claimed by Avco and discovery has only recently begun. Orange disputes the allegations made by Avco and has made cross claims against Arconic. Previously, Orange was a defendant with respect to the same action in the United States District Court for the District of Rhode Island, which action was dismissed in connection with the movement of the matter to Pennsylvania State Court. Although the Company records reserves for legal disputes and other matters in accordance with GAAP, the ultimate outcomes of these types of matters are inherently uncertain. Actual results may differ significantly from current estimates. Given the current status of this matter, the Company has not accrued for any expected losses, as the Company has not deemed it probable and does not have a reasonable basis on which to establish an estimate. The Company is a defendant in a purported class action lawsuit filed in the Superior Court of California, County of Orange, which was filed in August 2017, arising from employee wage-and-hour claims under California law for alleged meal period, rest break, hourly and overtime wage calculation, timely wage payment and necessary expenditure indemnification violations; failure to maintain required wage records and furnish accurate wage statements; and unfair competition. A settlement has been reached and the Company received preliminary court approval on July 13, 2020. Class action notices were sent at the end of September and there were no objections to the settlement. On February 4, 2021, the court issued a tentative ruling to grant final approval. The final approval was granted and the previously recorded liability of $315 was paid on March 29, 2021. During fiscal 2020, the Company received notice from the International Association of Machinists and Aerospace Workers Union that they were disclaiming all interest in representing certain hourly employees at the Company’s Cleveland facility. Subsequently, the International Brotherhood of Boilermakers Union filed a petition to represent this same group of hourly employees. A mail ballot election took place in June 2020 and the National Labor Relations Board certified the International Brotherhood of Boilermakers as the elected representative of the Company’s hourly production employees. The Company’s obligations will be more fully understood following the ratification of a collective bargaining agreement. In the first quarter of fiscal 2021, the insurance claim related to the fire on December 26, 2018 at the Orange location was finalized with the Company's insurance carrier. In the third quarter of fiscal 2021, the Company completed the restoration of the final two of the six presses damaged in the fire. Restoration of the building structure is nearly complete. Having finalized the claim with its insurance carrier, proceeds in the amount of $3,148 were received in December 2020. The Company received the remaining balance from the landlord, resulting in cash proceeds of $4,646 in fiscal 2021. As noted in the table below, $3,099 was recognized within the consolidated condensed statements of operations and the balance was separately designated to the landlord for the continued restoration of the damaged building as prescribed under the lease arrangement. The Company has business interruption insurance coverage, of which $546 of the amount received was reflected within the cost of goods sold line within the consolidated condensed statement of operations.
The tables below reflect how the proceeds received impacted the consolidated condensed statements of operations for the nine months ended June 30, 2021 and 2020, respectively.
The following table demonstrates the total settlement amount since December 26, 2018:
**$3,640 of total was directed to the landlord of the property for the restoration of the building as prescribed by the lease arrangement.
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Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the "Company"). All significant intercompany accounts and transactions have been eliminated in consolidation. The U.S. dollar is the functional currency for all of the Company’s U.S. operations and its non-operating subsidiaries. For these operations, all gains and losses from completed currency transactions are included in income. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange for the period. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements. These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2020 Annual Report on Form 10-K. The year-end consolidated balance sheet data was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the United States ("U.S."). The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year.
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Net Income per Share | Net Income per ShareThe Company’s net income per basic share has been computed based on the weighted-average number of common shares outstanding. |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" and subsequent updates. ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The new guidance will replace the current incurred loss approach with an expected loss model. The new expected credit loss impairment model will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt instruments, net investments in leases, loan commitments and standby letters of credit. Upon initial recognition of the exposure, the expected credit loss model requires entities to estimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses should consider historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. Financial instruments with similar risk characteristics should be grouped together when estimating expected credit losses. ASU 2016-13 does not prescribe a specific method to make the estimate, so its application will require significant judgment. ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. However, in November 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)," which defers the effective date for public filers that qualify as a smaller reporting company("SRC"), as defined by the Securities and Exchange Commission, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Because SIFCO is considered a SRC, the Company does not need to implement ASU 2016-13 until October 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company's results within the consolidated condensed statements of operations and financial condition. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which was issued to (i) reduce the complexity of the standard by removing certain exceptions to the general principles in Topic 740 and (ii) improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective beginning October 1, 2021. The Company continues to evaluate the effect that adopting this ASU will have on the Company's results within the consolidated condensed statements of operations and financial condition. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This ASU, along with recently issued ASU 2021-01, which further clarifies the scope of Topic 848, is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. ASU 2020-04 was effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company has not applied any optional expedients and exceptions to date, and will continue to evaluate the impact of the guidance and whether it will apply the optional expedients and exceptions. In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20)," which adds the following disclosure requirements: (1) the weighted-average interest crediting rates used in the Company's cash balance pension plans and other similar plans; (2) a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period; and (3) an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by Accounting Standards Codification ("ASC") Topic 715, "Compensation - Retirement Benefits." The ASU also clarifies the guidance included in ASC 715-20-50-3 on defined benefit plans disclosure requirements. This ASU will be effective October 1, 2021 and the Company is currently assessing the impact that this standard will have on our consolidated condensed financial statements.
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Summary of Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dilutive Effect of Company's Restricted Shares and Performance Shares | The dilutive effect is as follows:
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Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of:
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Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost Components, Supplemental Cash Flow and Other information, and Weighted-Average Remaining Lease Term Schedules | The components of lease expense were as follows:
Supplemental cash flow and other information related to leases were as follows:
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Schedule of Supplemental Balance Sheet Information Schedule | The following table presents the impact of leasing on the consolidated condensed balance sheet.
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Schedule of Maturities of Finance Lease Liabilities by Fiscal Year Schedule | Future minimum lease under non-cancellable leases at June 30, 2021 were as follows:
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Schedule of Maturities of Operating Lease Liabilities by Fiscal Year Schedule | Future minimum lease under non-cancellable leases at June 30, 2021 were as follows:
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Debt (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt consists of:
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Schedule of Foreign Debt | Foreign debt consists of:
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Retirement Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Cost | The components of net periodic benefit cost of the Company’s defined benefit plans are as follows:
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Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table represents a breakout of total revenue by customer type:
The following table represents revenue by the various components:
The following table represents revenue by geographic region based on the Company's selling operation locations:
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Schedule of Contract Assets and Liabilities | The following table contains a roll forward of contract assets and contract liabilities for the period ended June 30, 2021:
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Commitments and Contingencies (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Insurance Recoveries Within Consolidated Condensed Financial Statements | The Company has business interruption insurance coverage, of which $546 of the amount received was reflected within the cost of goods sold line within the consolidated condensed statement of operations.
The tables below reflect how the proceeds received impacted the consolidated condensed statements of operations for the nine months ended June 30, 2021 and 2020, respectively.
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Schedule of Total Settlement Amount | The following table demonstrates the total settlement amount since December 26, 2018:
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Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
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Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 5,443 | $ 6,548 |
Work-in-process | 5,142 | 3,786 |
Finished goods | 5,279 | 5,235 |
Total inventories | $ 15,864 | $ 15,569 |
Inventories - Narrative (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
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Inventory Disclosure [Abstract] | ||
Percentage of inventories determined using LIFO method | 37.00% | 47.00% |
Additional amount that would have been reported in inventory if FIFO method had been used | $ 8,868 | $ 8,286 |
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
---|---|---|---|---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | $ 48,337 | $ 47,708 | $ 45,523 | $ 41,323 | $ 38,689 | $ 36,054 |
Foreign currency translation adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | (5,195) | (5,257) | ||||
Retirement plan liability adjustment, net of tax | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | (7,577) | (8,211) | ||||
Total accumulated other comprehensive loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | $ (12,772) | $ (13,062) | $ (13,468) | $ (12,508) | $ (12,809) | $ (13,309) |
Leases - Lease Cost Components Schedule (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Finance lease expense: | ||||
Amortization of right-of use assets on finance leases | $ 13 | $ 14 | $ 41 | $ 41 |
Interest on lease liabilities | 1 | 1 | 2 | 4 |
Operating lease expense: | 431 | 664 | 1,523 | 1,743 |
Variable lease cost: | 34 | 39 | 104 | 118 |
Total lease expense | $ 479 | $ 718 | $ 1,670 | $ 1,906 |
Leases - Supplemental Balance Sheet Information Schedule (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Assets: | ||
Property, plant and equipment, net | $ 48 | $ 89 |
Operating lease right-of-use assets, net | 16,174 | 17,021 |
Total lease assets | 16,222 | 17,110 |
Current liabilities: | ||
Current maturities of long-term debt | 29 | 58 |
Short-term operating lease liabilities | 800 | 991 |
Non-current liabilities: | ||
Long-term debt, net of current maturities | 7 | 22 |
Long-term operating lease liabilities, net of short-term | 15,624 | 16,188 |
Total lease liabilities | $ 16,460 | $ 17,259 |
Finance lease, asset, statement of financial position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Current finance lease, liability, statement of financial position [Extensible List] | Current maturities of long-term debt | Current maturities of long-term debt |
Noncurrent finance lease, liability, statement of financial position [Extensible List] | Total long-term debt | Total long-term debt |
Leases - Supplemental Cash Flow Information and Non-Cash Activity Schedule (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Cash paid for amounts included in measurement of liabilities: | ||
Operating cash flows from operating leases | $ 1,525 | $ 1,628 |
Operating cash flows from finance leases | 2 | 4 |
Financing cash flows from finance leases | 44 | 42 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating leases | $ 43 | $ 278 |
Leases - Weighted-Average Remaining Lease Term and Discount Rate Schedule (Details) |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Weighted-average remaining lease term (years): | ||
Finance leases | 1 year 1 month 6 days | 1 year 7 months 6 days |
Operating leases | 14 years 7 months 6 days | 15 years 2 months 12 days |
Weighted-average discount rate: | ||
Finance leases | 3.90% | 4.80% |
Operating leases | 5.90% | 5.90% |
Leases - Maturities of Lease Liabilities by Fiscal Year Schedule (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Finance Leases | ||
2021 (excluding the nine months ended June 30, 2021) | $ 15 | |
2022 | 21 | |
2023 | 1 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total lease payments | 37 | |
Less: Imputed interest | (1) | |
Present value of lease liabilities | 36 | $ 80 |
Operating Leases | ||
2021 (excluding the nine months ended June 30, 2021) | 425 | |
2022 | 1,697 | |
2023 | 1,633 | |
2024 | 1,648 | |
2025 | 1,644 | |
Thereafter | 17,526 | |
Total lease payments | 24,573 | |
Less: Imputed interest | (8,149) | |
Present value of lease liabilities | $ 16,424 |
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 36 | $ 80 |
Total debt | 22,556 | 24,620 |
Less – current maturities | (19,653) | (20,014) |
Total long-term debt | 2,903 | 4,606 |
Unamortized debt issuance costs | (34) | (20) |
Other, net of unamortized debt issuance costs $(34) and $(20), respectively | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 5,594 | 5,911 |
Revolving credit agreement | Revolving credit agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 9,825 | 12,870 |
Foreign subsidiary borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 7,101 | $ 5,759 |
Debt - Schedule of Foreign Subsidiary Borrowings (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Less – current maturities | $ (9,828) | $ (7,144) |
Total long-term debt | 2,903 | 4,606 |
Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 7,101 | 5,759 |
Less – current maturities | (4,801) | (3,544) |
Total long-term debt | 2,300 | 2,215 |
Receivables pledged as collateral | 1,547 | 1,859 |
Term loan | Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 3,391 | 2,670 |
Short-term borrowings | Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 1,991 | 2,620 |
Factor | Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | $ 1,719 | $ 469 |
Income Taxes (Details) |
9 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rate, percent | (79.00%) | (2.00%) |
Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 26 | $ 85 | $ 78 | $ 255 |
Interest cost | 175 | 208 | 525 | 624 |
Expected return on plan assets | (355) | (363) | (1,066) | (1,090) |
Amortization of net loss | 211 | 188 | 634 | 564 |
Net periodic cost | $ 57 | $ 118 | $ 171 | $ 353 |
Retirement Benefit Plans - Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Retirement Benefits [Abstract] | ||
Contributions amount in defined benefit pension plans | $ 67 | $ 604 |
Additional cash contributions planned for fiscal 2021 | $ 0 |
Revenue - Contract Balances (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2021 |
Sep. 30, 2020 |
|
Change In Contract With Customer, Assets [Roll Forward] | ||
Contract assets - Beginning balance | $ 11,997,000 | |
Additional revenue recognized over-time | 49,070,000 | |
Less amounts billed to the customers | (46,401,000) | |
Contract assets - Ending balance | 14,666,000 | $ 11,997,000 |
Change In Contract With Customer, Liability [Roll Forward] | ||
Contract liabilities (included within Accrued liabilities) - Beginning balance | (636,000) | |
Payments received in advance of performance obligations | (628,000) | |
Performance obligations satisfied | 763,000 | |
Contract liabilities (included within Accrued liabilities) - Ending balance | (501,000) | (636,000) |
Impairment loss on contract assets | $ 0 | $ 0 |
Revenue - Performance Obligation (Details) $ in Thousands |
Jun. 30, 2021
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 78,083 |
Commitments and Contingencies - Insurance Receivable Balance Sheet Rollforward (Details) $ in Thousands |
9 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Insurance Recoveries Within Consolidated Condensed Financial Statements [Roll Forward] | |
Cash proceeds | $ (4,646) |
Business interruption | 546 |
Insurance recoveries | |
Insurance Recoveries Within Consolidated Condensed Financial Statements [Roll Forward] | |
Other receivable, beginning balance | 1,547 |
Cash proceeds | (4,646) |
Other expenses | 58 |
Business interruption | 546 |
Other receivable, ending balance | 0 |
Insurance recoveries | Equipment | |
Insurance Recoveries Within Consolidated Condensed Financial Statements [Roll Forward] | |
Capital expenditures (equipment) | $ 2,495 |
Commitment and Contingencies - Total Settlement (Details) $ in Thousands |
30 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Loss Contingencies [Line Items] | |
Proceeds directed to landlord | $ 3,640 |
Insurance recoveries | Insurance Settlement | |
Loss Contingencies [Line Items] | |
Property and damage | 20,364 |
Extra expense & mitigation expense | 4,404 |
Business interruption | 2,932 |
Total settlement amount | $ 27,700 |
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