Business Acquisition

6 Months Ended

Mar. 31, 2012

Business Acquisition [Abstract]

Business Acquisition

11. Business Acquisition

On October 28, 2011, through its wholly-owned subsidiary, Forge Acquisition, LLC – now known as Quality Aluminum Forge, LLC ("QAF"), the Company completed the purchase of the forging business and substantially all related operating assets from GEL Industries, Inc. (DBA Quality Aluminum Forge). The forging business is operated in QAF's Orange and Long Beach, California facilities, all of which are leased. The purchase price for the forging business and related operating assets was approximately $24.8 million payable in cash, subject to certain adjustments related principally to the delivered working capital level and/or indemnification holdback provisions under the purchase agreement. In addition, the Company has assumed certain current operating liabilities of the forging business.

The QAF purchase transaction is accounted for under the purchase method of accounting. The Company has not yet completed the purchase accounting related to the QAF acquisition. The final purchase price allocation will be allocated to the assets acquired and liabilities assumed based upon their fair values when appraisals, other studies and additional information become available.

The preliminary allocation of the purchase price and the estimated goodwill and intangible assets, all of which belong to the Forge Group, are as follows:

	October 28, 2011 (As Initially Reported)		Measurement Period Adjustments			As Adjusted
Assets acquired:
Accounts receivable	$	3,801	$	(98	)	$	3,703
Inventory		3,823		161			3,984
Property and equipment		4,965		0			4,965
Intangible assets		9,100		(300	)		8,800
Goodwill		3,337		196			3,533
Other assets		200		(47	)		153
		25,226		(88	)		25,138
Liabilities assumed:
Accounts payable and accrued liabilities		417		0			417
Total purchase price	$	24,809	$	(88	)	$	24,721

On December 10, 2010, through its wholly-owned subsidiary, TWF Acquisition, LLC – now known as T&W Forge, LLC ("TWF"), the Company completed the purchase of the forging business and substantially all related operating assets from T&W Forge, Inc. ("T&W Forge"). TWF operates in T&W Forge's Alliance, Ohio facility under a long-term lease arrangement, with an option to purchase the facility at a nominal price. The TWF purchase transaction is accounted for under the purchase method of accounting.

The results of operation of QAF and TWF from their respective dates of acquisition are included in the Company's unaudited consolidated condensed statements of operations and are reported in the Forge Group. The following unaudited pro forma information presents a summary of the results of operations for the Company including QAF and TWF as if the acquisitions had occurred on October 1, 2010 and 2009, respectively:

	Three Months Ended March 31,		Six Months Ended March 31,
	2011		2012		2011
Net sales	$	31,599	$	64,102	$	60,305
Net income		2,500		3,644		3,990
Net income per share (basic)		0.47		0.69		0.76
Net income per share (diluted)		0.47		0.68		0.75