Business Acquisition

9 Months Ended

Jun. 30, 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, Inc.). 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 allocation of the purchase price, including amounts attributable to goodwill and intangible assets, all of which belong to the Forged Component Group, is as follows:

	October 28, 2011 (As Initially Reported)		Measurement Period Adjustments			October 28, 2011 (As Adjusted)
Assets acquired:
Accounts receivable	$	3,801	$	(98	)	$	3,703
Inventory		3,823		138			3,961
Property and equipment		4,965		0			4,965
Intangible assets		9,100		(100	)		9,000
Goodwill		3,337		185			3,522
Other assets		200		(47	)		153
		25,226		78			25,304
Liabilities assumed:
Accounts payable and accrued liabilities		417		1			418
Total purchase price	$	24,809	$	77		$	24,886

The above fair values of assets acquired and liabilities assumed, as initially reported, were based upon appraisals, other studies and additional information available at the time of the acquisition of QAF. Measurement period adjustments reflect new information obtained about facts and circumstances that existed as of the acquisition date. The Company believes that such information provided a reasonable basis for determining the fair values of the assets acquired and liabilities assumed.

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 June 30, 2011		Nine Months Ended June 30,
			2012		2011
Net sales	$	33,694	$	95,070	$	93,999
Net income		2,602		6,208		6,580
Net income per share (basic)		0.49		1.17		1.25
Net income per share (diluted)		0.49		1.16		1.25