Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 27, 2019 | Jan. 30, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | TWIN DISC INC | |
Entity Central Index Key | 0000100378 | |
Trading Symbol | twin | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 13,405,993 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Dec. 27, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock (No Par Value) | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Dec. 27, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash | $ 14,836 | $ 12,362 |
Trade accounts receivable, net | 33,302 | 44,013 |
Inventories | 134,658 | 125,893 |
Prepaid expenses | 5,522 | 11,681 |
Other | 7,544 | 8,420 |
Total current assets | 195,862 | 202,369 |
Property, plant and equipment, net | 73,768 | 71,258 |
Goodwill, net | 25,561 | 25,954 |
Intangible assets, net | 22,625 | 25,353 |
Deferred income taxes | 21,459 | 18,178 |
Other assets | 4,006 | 3,758 |
Total assets | 343,281 | 346,870 |
Current liabilities: | ||
Current maturities of long-term debt | 2,000 | 2,000 |
Accounts payable | 26,259 | 31,468 |
Accrued liabilities | 47,730 | 41,646 |
Total current liabilities | 75,989 | 75,114 |
Long-term debt | 50,512 | 40,491 |
Lease obligations | 13,850 | 12,646 |
Accrued retirement benefits | 24,607 | 25,878 |
Deferred income taxes | 6,744 | 7,429 |
Other long-term liabilities | 2,094 | 2,494 |
Total liabilities | 173,796 | 164,052 |
Commitments and contingencies (Note D) | ||
Twin Disc shareholders' equity: | ||
Preferred shares authorized: 200,000; issued: none; no par value | 0 | 0 |
Common shares authorized: 30,000,000; issued: 14,632,802; no par value | 42,305 | 45,047 |
Retained earnings | 183,645 | 196,472 |
Accumulated other comprehensive loss | (38,230) | (37,971) |
Equity before treasury stock | 187,720 | 203,548 |
Less treasury stock, at cost (1,226,809 and 1,392,524 shares, respectively) | 18,796 | 21,332 |
Total Twin Disc shareholders' equity | 168,924 | 182,216 |
Noncontrolling interest | 561 | 602 |
Total equity | 169,485 | 182,818 |
Total liabilities and equity | $ 343,281 | $ 346,870 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Dec. 27, 2019 | Jun. 30, 2019 |
Preferred Shares, Authorized (in shares) | 200,000 | 200,000 |
Preferred Shares, Issued (in shares) | 0 | 0 |
Preferred Shares, No Par Value (in dollars per share) | $ 0 | $ 0 |
Common shares, authorized (in shares) | 30,000,000 | 30,000,000 |
Common shares, shares issued (in shares) | 14,632,802 | 14,632,802 |
Common shares, no par value (in dollars per share) | $ 0 | $ 0 |
Treasury Stock, Shares (in shares) | 1,266,809 | 1,392,524 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Net Sales | $ 59,536 | $ 78,107 | $ 118,826 | $ 152,796 |
Cost of goods sold | 43,825 | 52,019 | 93,479 | 102,723 |
Gross profit | 15,711 | 26,088 | 25,347 | 50,073 |
Marketing, engineering and administrative expenses | 16,413 | 18,909 | 32,759 | 37,894 |
Restructuring expenses | 4,248 | 434 | 4,369 | 607 |
(Loss) income from operations | (4,950) | 6,745 | (11,781) | 11,572 |
Interest expense | 447 | 417 | 836 | 1,134 |
Other expense (income), net | 29 | 798 | 720 | 1,118 |
Non-operating income (expense) | 476 | 1,215 | 1,556 | 2,252 |
(Loss) income before income taxes and noncontrolling interest | (5,426) | 5,530 | (13,337) | 9,320 |
Income tax expense (benefit) | 1,040 | 1,451 | (578) | 2,338 |
Net (loss) income | (6,466) | 4,079 | (12,759) | 6,982 |
Less: Net earnings attributable to noncontrolling interest, net of tax | (50) | (6) | (68) | (47) |
Net (loss) income attributable to Twin Disc | $ (6,516) | $ 4,073 | $ (12,827) | $ 6,935 |
(Loss) income per share data: | ||||
Basic (loss) income per share attributable to Twin Disc common shareholders (in dollars per share) | $ (0.49) | $ 0.31 | $ (0.98) | $ 0.56 |
Diluted (loss) income per share attributable to Twin Disc common shareholders (in dollars per share) | $ (0.49) | $ 0.31 | $ (0.98) | $ 0.56 |
Weighted average shares outstanding data: | ||||
Basic shares outstanding (in shares) | 13,164 | 12,909 | 13,135 | 12,233 |
Diluted shares outstanding (in shares) | 13,164 | 12,997 | 13,135 | 12,304 |
Comprehensive (loss) income | ||||
Net (loss) income | $ (6,466) | $ 4,079 | $ (12,759) | $ 6,982 |
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively | 548 | 478 | 1,105 | 949 |
Foreign currency translation adjustment | 1,647 | (1,786) | (1,349) | (2,347) |
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively | 146 | 3 | ||
Comprehensive (loss) income | (4,125) | 2,771 | (13,000) | 5,584 |
Less: Comprehensive (income) loss attributable to noncontrolling interest | (50) | 7 | (86) | (9) |
Comprehensive (loss) income attributable to Twin Disc | $ (4,175) | $ 2,778 | $ (13,086) | $ 5,575 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Benefit plan adjustments, income taxes | $ 169 | $ 146 | $ 338 | $ 292 |
Unrealized loss on cash flow hedge, income taxes | $ (45) | $ 0 | $ (1) | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (12,759) | $ 6,982 |
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities, net of acquired assets: | ||
Depreciation and amortization | 5,926 | 4,510 |
Restructuring expenses | 3,844 | |
Provision for deferred income taxes | (3,901) | 2,555 |
Stock compensation expense and other non-cash changes, net | 774 | 1,506 |
Amortization of inventory fair value step-up | 2,173 | |
Net change in operating assets and liabilities | 6,232 | (21,505) |
Net cash provided (used) by operating activities | 116 | (3,779) |
Cash flows from investing activities: | ||
Acquisitions of fixed assets | (6,860) | (6,676) |
Proceeds from sale of fixed assets | 55 | 63 |
Other, net | (129) | (129) |
Acquisition of Veth Propulsion, less cash acquired | (59,651) | |
Net cash used by investing activities | (6,934) | (66,393) |
Cash flows from financing activities: | ||
Borrowings under revolving loan arrangement | 58,993 | 93,675 |
Repayments of revolver loans | (48,130) | (62,326) |
Repayments of long term debt | (603) | (24,230) |
Dividends paid to noncontrolling interest | (127) | (115) |
Payments of withholding taxes on stock compensation | (913) | (926) |
Proceeds from issuance of common stock, net | 32,210 | |
Proceeds from exercise of stock options | 36 | |
Borrowings under term debt arrangement | 35,000 | |
Net cash provided by financing activities | 9,220 | 73,324 |
Effect of exchange rate changes on cash | 72 | 219 |
Net change in cash | 2,474 | 3,371 |
Cash: | ||
Beginning of period | 12,362 | 15,171 |
End of period | $ 14,836 | $ 18,542 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | A. Basis of Presentation The unaudited condensed consolidated financial statements have been prepared by Twin Disc, Incorporated (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of the Company, include adjustments, consisting primarily of normal recurring items, necessary for a fair statement of results for each period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not 10 June 30, 2019. not The consolidated financial statements and information presented herein include the financial results of Veth Propulsion Holding BV (“Veth Propulsion”), the acquisition of which was completed on July 2, 2018. 10 Recently Adopted Accounting Standards In June 2018, 2018 07 July 1, 2019. not New Accounting Releases In August 2018, 2018 13 820, December 15, 2019 ( 2021 In August 2018, 2018 14 December 15, 2020 ( 2021 In December 2019, 2019 12 December 15, 2020 ( 2022 Special Note Regarding Smaller Reporting Company Status Under SEC Release 33 10513; 34 83550, |
Note B - Inventories
Note B - Inventories | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | B . Inventor ies The major classes of inventories were as follows: December 27, 2019 June 30, 2019 Inventories: Finished parts $ 68,315 $ 57,682 Work in process 22,222 23,812 Raw materials 44,121 44,399 $ 134,658 $ 125,893 |
Note C - Warranty
Note C - Warranty | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | C . Warranty The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its suppliers. However, its warranty obligation is affected by product failure rates, the number of units affected by the failure and the expense involved in satisfactorily addressing the situation. The warranty reserve is established based on our best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. When evaluating the adequacy of the reserve for warranty costs, management takes into consideration the term of the warranty coverage, historical claim rates and costs of repair, knowledge of the type and volume of new products and economic trends. While we believe the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable in the future could differ materially from what actually transpires. The following is a listing of the activity in the warranty reserve for the quarters ended December 27, 2019 December 28, 2018: For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Reserve balance, beginning of period $ 7,107 $ 4,667 $ 3,736 $ 4,407 Current period expense and adjustments 681 128 6,129 1,414 Payments or credits to customers (2,035 ) (926 ) (4,067 ) (1,946 ) Translation 22 (26 ) (23 ) (32 ) Reserve balance, end of period $ 5,775 $ 3,843 $ 5,775 $ 3,843 Included in the current fiscal half expense is a non-recurring warranty charge in the amount of $3,889, The current portion of the warranty accrual ( $4,856 $3,309 December 27, 2019 December 28, 2018, $919 $534 December 27, 2019 December 28, 2018, |
Note D - Contingencies
Note D - Contingencies | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | D . Contingencies The Company is involved in litigation of which the ultimate outcome and liability to the Company, if any, is not not |
Note E - Business Segments
Note E - Business Segments | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | E . Business Segments The Company and its subsidiaries are engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. Principal products include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. The Company sells to both domestic and foreign customers in a variety of market areas, principally pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company's worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network. The Company has two Information about the Company’s segments is summarized as follows: For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Net sales Manufacturing segment sales $ 57,173 $ 70,986 $ 111,734 $ 139,899 Distribution segment sales 22,025 27,090 44,452 50,010 Inter/Intra segment elimination – manufacturing (15,105 ) (14,931 ) (28,935 ) (29,681 ) Inter/Intra segment elimination – distribution (4,557 ) (5,038 ) (8,425 ) (7,432 ) $ 59,536 $ 78,107 $ 118,826 $ 152,796 Net (loss) income attributable to Twin Disc Manufacturing segment net (loss) income $ (2,936 ) $ 7,924 $ (7,791 ) $ 15,159 Distribution segment net income 842 569 1,934 1,434 Corporate and eliminations (4,422 ) (4,420 ) (6,970 ) (9,658 ) $ (6,516 ) $ 4,073 $ (12,827 ) $ 6,935 December 27, 2019 June 30, 2019 Assets Manufacturing segment assets $ 380,275 $ 384,612 Distribution segment assets 51,277 46,076 Corporate assets and elimination of intercompany assets (88,271 ) (83,818 ) $ 343,281 $ 346,870 Disaggregated revenue: The following table presents details deemed most relevant to the users of the financial statements for the quarters and two December 27, 2019 December 28, 2018. Net sales by product group for the quarter ended December 27, 2019 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 5,892 $ 1,484 $ (751 ) $ 6,625 Land-based transmissions 16,559 6,238 (7,492 ) 15,305 Marine and propulsion systems 34,700 13,418 (11,419 ) 36,699 Other 22 885 - 907 Total $ 57,173 $ 22,025 $ (19,662 ) $ 59,536 Net sales by product group for the quarter ended December 28, 2018 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 8,253 $ 2,580 $ (1,717 ) $ 9,116 Land-based transmissions 30,309 6,846 (7,377 ) 29,778 Marine and propulsion systems 32,412 16,307 (10,863 ) 37,856 Other 12 1,357 (12 ) 1,357 Total $ 70,986 $ 27,090 $ (19,969 ) $ 78,107 Net sales by product group for the two December 27, 2019 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 12,700 $ 2,952 $ (1,564 ) $ 14,088 Land-based transmissions 33,973 11,718 (14,867 ) 30,824 Marine and propulsion systems 65,020 27,628 (20,928 ) 71,720 Other 041 2,154 (1 ) 2,194 Total $ 111,734 $ 44,452 $ (37,360 ) $ 118,826 Net sales by product group for the two December 28, 2018 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 14,734 $ 3,977 $ (2,549 ) $ 16,162 Land-based transmissions 59,742 12,456 (12,784 ) 59,414 Marine and propulsion systems 65,388 30,464 (21,721 ) 74,131 Other 35 3,113 (59 ) 3,089 Total $ 139,899 $ 50,010 $ (37,113 ) $ 152,796 |
Note F - Stock-based Compensati
Note F - Stock-based Compensation | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | F . Stock-Based Compensation Performance Stock Awards (“PSA”) During the first 2020 2019, 131.7 42.3 2020 three June 30, 2022. 184.8. The fiscal 2019 three June 30, 2021. 67.0. not There were 214.0 188.0 December 27, 2019 December 28, 2018, $52 $242 December 27, 2019 December 28, 2018, $20 $788 two December 27, 2019 December 28, 2018, December 27, 2019 $15.24. December 27, 2019, $2,355 2020, 2019 2018 December 27, 2019 December 28, 2018 $0. Restricted Stock Awards (“RS”) The Company has unvested RS awards outstanding that will vest if certain service conditions are fulfilled. The fair value of the RS grants is recorded as compensation expense over the vesting period, which is generally 1 3 first 2020 2019, 180.4 35.6 231.4 185.3 December 27, 2019 December 28, 2018, 20.5 2.8 two December 27, 2019 December 28, 2018, $218 $266 December 27, 2019 December 28, 2018, $524 $516 two December 27, 2019 December 28, 2018, December 27, 2019 December 28, 2018 $1,241 $2,102, December 27, 2019, $1,982 three Restricted Stock Unit Awards (“RS U ”) Under the 2018 three first 2019, 38.0 38.0 December 27, 2019 December 28, 2018. $81 $82 December 27, 2019 December 28, 2018, $163 $136 two December 27, 2019 December 28, 2018, December 27, 2019 $25.77. December 27, 2019, $516 two |
Note G - Pension and Other Post
Note G - Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | G . Pension and Other Postretirement Benefit Plans The Company has non-contributory, qualified defined benefit plans covering substantially all domestic employees hired prior to October 1, 2003 For the Quarter Ended For the Two Quarters Ended 12/27/2019 12/28/2018 12/27/2019 12/28/2018 Pension Benefits: Service cost $ 194 $ 251 $ 406 $ 497 Interest cost 889 1,083 1,794 2,175 Expected return on plan assets (1,240 ) (1,333 ) (2,488 ) (2,664 ) Amortization of transition obligation 9 9 17 17 Amortization of prior service cost (4 ) 1 (7 ) 2 Amortization of actuarial net loss 784 678 1,568 1,355 Net periodic benefit cost $ 632 $ 689 $ 1,290 $ 1,382 Postretirement Benefits: Service cost $ 4 $ 5 $ 9 $ 9 Interest cost 55 76 110 152 Amortization of prior service cost (69 ) - (138 ) - Amortization of actuarial net loss - (69 ) - (137 ) Net periodic benefit (gain) cost $ (10 ) $ 12 $ (19 ) $ 24 The Company expects to contribute approximately $1,936 2020. December 27, 2019, $785 The Company has reclassified $548 $169 December 27, 2019, $478 $146 December 28, 2018. $1,105 $338 two December 27, 2019, $949 $292 two December 28, 2018. |
Note H - Income Taxes
Note H - Income Taxes | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | H . Income Taxes For the two December 27, 2019 December 28, 2018, 4.3% 25.1% 0.67%. no $9,385 18.55%. The Company maintains valuation allowances when it is more likely than not not no Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. Under this effective tax rate methodology, the Company applies an estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The Company has approximately $1,158 December 27, 2019, no December 27, 2019. twelve Annually, the Company files income tax returns in various taxing jurisdictions inside and outside the United States. In general, the tax years that remain subject to examination in foreign jurisdictions are 2013 2019. 2019. 2015. 2011 2013. 2020. |
Note I - Goodwill and Other Int
Note I - Goodwill and Other Intangibles | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | I . Goodwill and Other Intangibles Goodwill represents the amount of the consideration transferred in excess of the net of the acquisition-date fair values of the identifiable assets acquired and the liabilities assumed. The Company reviews goodwill for impairment on a reporting unit basis annually as of the first fourth may not The fair value of reporting units is primarily driven by projected growth rates and operating results under the income approach using a discounted cash flow model, which applies an appropriate market-participant discount rate, and consideration of other market approach data from guideline public companies. If declining actual operating results or future operating results become indicative that the fair value of the Company’s reporting units has declined below their carrying values, an interim goodwill impairment test may may During the first 2020, no December 27, 2019, $23,013 $2,548 As of December 27, 2019, Net Book Value Rollforward By Reporting Unit Gross Carrying Amount Accumulated Amortization / Impairment Net Book Value European Propulsion European Industrial Balance at June 30, 2019 $ 39,776 $ (13,822 ) $ 25,954 $ 23,371 $ 2,583 Translation adjustment (393 ) - (393 ) (358 ) (35 ) Balance at December 27, 2019 $ 39,383 $ (13,822 ) $ 25,561 $ 23,013 $ 2,548 As of December 27, 2019, Net Book Value Rollforward Net Book Value By Asset Type Gross Carrying Amount Accumulated Amortization / Impairment Net Book Value Customer Relationships Technology Know-how Trade Name Other Balance at June 30, 2019 $ 39,587 $ (14,434 ) $ 25,153 $ 14,843 $ 7,025 $ 2,733 $ 552 Additions 53 - 53 - - - 53 Amortization - (2,272 ) (2,272 ) (1,500 ) (569 ) (126 ) (77 ) Translation adjustment (509 ) - (509 ) (334 ) (127 ) (44 ) (4 ) Balance at December 27, 2019 $ 39,131 $ (16,706 ) $ 22,425 $ 13,009 $ 6,329 $ 2,563 $ 524 Other intangibles consist of certain proprietary technology, computer software, patents and licensing agreements. Amortization is recorded on the basis of straight-line or accelerated, as appropriate, over the estimated useful lives of the assets. The weighted average remaining useful life of the intangible assets included in the table above is approximately 9 Intangible amortization expense was $1,143 $583 December 27, 2019, December 28, 2018, $2,272 $1,249 two December 27, 2019, December 28, 2018, 2020 five Fiscal Year 2020 $ 2,297 2021 3,305 2022 3,120 2023 2,960 2024 2,748 2025 2,562 The gross carrying amount of the Company’s intangible assets that have indefinite lives and are not December 27, 2019 June 30, 2019 $200 $200, |
Note J - Long-term Debt
Note J - Long-term Debt | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | J. Long-term Debt The Company’s long-term debt represents borrowings made under the credit agreement, as amended, which it entered into with BMO Harris Bank N.A, on June 29, 2018 ( $500 March 4, 2026, $50,000. On January 28, 2020, 3.00 1.00 4.00 1.00 December 27, 2019, 5.00 1.00 March 27, 2020, 4.00 1.00 June 30, 2020, 3.50 1.00 September 25, 2020 3.00 1.00 December 25, 2020. December 27, 2019 3.00 1.00. December 27, 2019 The Credit Agreement, including its amendments, is more fully described in the Company’s Annual Report filed on Form 10 June 30, 2019, 2 Long-term debt at December 27, 2019 June 30, 2019 December 27, 2019 June 30, 2019 Borrowings under the Credit Agreement Revolving loans $ 33,229 $ 22,666 Term loan (due March 2026) 19,000 19,500 Other 283 325 Subtotal 52,512 42,491 Less: current maturities (2,000 ) (2,000 ) Total long-term debt $ 50,512 $ 40,491 During the two December 27, 2019, 3.58% 2.48% Other long-term debt pertains mainly to a financing arrangement in Europe. These liabilities carry terms of three five 7% 25%. $36 As of December 27, 2019, $41,699, $8,470 The Company’s borrowings described above approximate fair value at December 27, 2019 June 30, 2019. 2 On April 22, 2019, $20,000 March 4, 2026 December 27, 2019, $19,000. 815, |
Note K - Shareholders' Equity
Note K - Shareholders' Equity | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | K. Shareholders’ Equity The Company, from time to time, makes open market purchases of its common stock under authorizations given to it by the Board of Directors, of which 315.0 December 27, 2019 no December 27, 2019 December 28, 2018. The following is a reconciliation of the Company’s equity balances for the first two 2020 2019: Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2019 $ 45,047 $ 196,472 $ (37,971 ) $ (21,332 ) $ 602 $ 182,818 Net (loss) income (6,311 ) 18 (6,293 ) Translation adjustments (3,014 ) 18 (2,996 ) Benefit plan adjustments, net of tax 557 557 Unrealized loss on cash flow hedge, net of tax (143 ) (143 ) Cash dividends (127 ) (127 ) Compensation expense 459 459 Shares (acquired) issued, net (2,324 ) 1,412 (912 ) Balance, September 27, 2019 43,182 190,161 (40,571 ) (19,920 ) 511 173,363 Net (loss) income (6,516 ) 50 (6,466 ) Translation adjustments 1,647 - 1,647 Benefit plan adjustments, net of tax 548 548 Unrealized income on cash flow hedge, net of tax 146 146 Cash dividends - Compensation expense 248 248 Shares (acquired) issued, net (1,125 ) 1,124 (1 ) Balance, December 27, 2019 $ 42,305 $ 183,645 $ (38,230 ) $ (18,796 ) $ 561 $ 169,485 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2018 $ 11,570 $ 178,896 $ (23,792 ) $ (23,677 ) $ 619 $ 143,616 Net income 2,862 41 2,903 Translation adjustments (536 ) (25 ) (561 ) Benefit plan adjustments, net of tax 471 471 Release stranded tax effects 6,903 (6,903 ) - Cash dividends (115 ) (115 ) Compensation expense 850 850 Common stock issued, net 32,210 32,210 Shares acquired, net (586 ) (328 ) (914 ) Balance, September 28, 2018 44,044 188,661 (30,760 ) (24,005 ) 520 178,460 Net income 4,073 6 4,079 Translation adjustments (1,773 ) (13 ) (1,786 ) Benefit plan adjustments, net of tax 478 478 Cash dividends - Compensation expense 590 590 Shares (acquired) issued, net (497 ) 520 23 Balance, December 28, 2018 $ 44,137 $ 192,734 $ (32,055 ) $ (23,485 ) $ 513 $ 181,844 Reconciliations for the changes in accumulated other comprehensive income (loss), net of tax, by component for the quarters ended September 27, December 27, 2019, September 28, December 28, 2018 Translation Benefit Plan Cash Flow Adjustment Adjustment Hedges Balance at June 30, 2019 $ 4,439 $ (41,901 ) $ (509 ) Translation adjustment during the quarter (3,014 ) - - Amounts reclassified from accumulated other comprehensive income - 557 (143 ) Net current period other comprehensive (loss) income (3,014 ) 557 (143 ) Balance at September 27, 2019 1,425 (41,344 ) (652 ) Translation adjustment during the quarter 1,647 - - Amounts reclassified from accumulated other comprehensive income - 548 146 Net current period other comprehensive income 1,647 548 146 Balance at December 27, 2019 $ 3,072 $ (40,796 ) $ (506 ) Translation Benefit Plan Adjustment Adjustment Balance at June 30, 2018 $ 7,085 $ (30,877 ) Translation adjustment during the quarter (536 ) - Release stranded tax effects - (6,903 ) Amounts reclassified from accumulated other comprehensive income - 471 Net current period other comprehensive loss (536 ) (6,432 ) Balance at September 28, 2018 6,549 (37,309 ) Translation adjustment during the quarter (1,773 ) - Amounts reclassified from accumulated other comprehensive income - 478 Net current period other comprehensive (loss) income (1,773 ) 478 Balance at December 28, 2018 $ 4,776 $ (36,831 ) Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter and two December 27, 2019 Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 27, 2019 December 27, 2019 Changes in benefit plan items Actuarial losses $ 781 (a) $ 1,571 (a) Transition asset and prior service benefit (64 ) (a) (128 ) (a) Total amortization 717 1,443 Income taxes 169 338 Total reclassification net of tax $ 548 $ 1,105 Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter and two December 28, 2018 Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 28, 2018 December 28, 2018 Changes in benefit plan items Actuarial losses $ 614 (a) $ 1,222 (a) Transition asset and prior service benefit 10 (a) 19 (a) Total amortization 624 1,241 Income taxes 146 292 Total reclassification net of tax $ 478 $ 949 (a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details). |
Note L - Restructuring of Opera
Note L - Restructuring of Operations | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | L. Restructuring of Operations The Company has implemented various restructuring programs in response to unfavorable macroeconomic trends in certain of the Company’s markets since the fourth 2015. These actions resulted in restructuring charges of $1,063 $1,184 two December 27, 2019, $434 $607 two December 28, 2018, Restructuring activities since June 2015 203 December 27, 2019 $11,636. During the second 2020, $2,185, $1,000. $3,185 December 27, 2019. The following is a roll-forward of restructuring activity: Accrued restructuring liability, June 30, 2019 $ - Additions related to workforce reduction 1,184 Additions related to program termination 3,185 Payments, adjustments and write-offs during the year (2,710 ) Accrued restructuring liability, December 27, 2019 $ 1,659 |
Note M - Earnings Per Share
Note M - Earnings Per Share | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | M. Earnings Per Share The Company calculates basic earnings per share based upon the weighted average number of common shares outstanding during the period, while the calculation of diluted earnings per share includes the dilutive effect of potential common shares outstanding during the period. The calculation of diluted earnings per share excludes all potential common shares if their inclusion would have an anti-dilutive effect. Certain restricted stock award recipients have a non-forfeitable right to receive dividends declared by the Company, and are therefore included in computing earnings per share pursuant to the two The components of basic and diluted earnings per share were as follows: For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Basic: Net (loss) income $ (6,466 ) $ 4,079 $ (12,759 ) $ 6,982 Less: Net earnings attributable to noncontrolling interest (50 ) (6 ) (68 ) (47 ) Less: Undistributed earnings attributable to unvested shares - (53 ) - (105 ) Net (loss) income available to Twin Disc shareholders (6,516 ) 4,020 (12,827 ) 6,830 Weighted average shares outstanding - basic 13,164 12,909 13,135 12,233 Basic (Loss) Income Per Share: Net (loss) income per share - basic $ (0.49 ) $ 0.31 $ (0.98 ) $ 0.56 Diluted: Net (loss) income $ (6,466 ) $ 4,079 $ (12,759 ) $ 6,982 Less: Net earnings attributable to noncontrolling interest (50 ) (6 ) (68 ) (47 ) Less: Undistributed earnings attributable to unvested shares - (53 ) - (105 ) Net (loss) income available to Twin Disc shareholders (6,516 ) 4,020 (12,827 ) 6,830 Weighted average shares outstanding - basic 13,164 12,909 13,135 12,233 Effect of dilutive stock awards - 88 - 71 Weighted average shares outstanding - diluted 13,164 12,997 13,135 12,304 Diluted (Loss) Income Per Share: Net (loss) income per share - diluted $ (0.49 ) $ 0.31 $ (0.98 ) $ 0.56 The following potential common shares were excluded from diluted EPS for the quarter and two December 27, 2019 214.0 231.4 38.0 The following potential common shares were excluded from diluted EPS for the quarter and two December 28, 2018 134.4 185.3 33.6 16.6, 3.4 |
Note N - Lease Liabilities
Note N - Lease Liabilities | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | N. Lease Liabilities The Company leases certain office and warehouse space, as well as production and office equipment. The Company determines if an arrangement is a lease at contract inception. The lease term begins upon lease commencement, which is when the Company takes possession of the asset, and may not The components of lease expense were as follows: For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Finance lease cost: Amortization of right-of-use assets $ 43 $ 1 $ 79 $ 1 Interest on lease liabilities 13 - 25 - Operating lease cost 815 850 1,596 1,730 Short-term lease cost 9 12 26 22 Variable lease cost 8 (3 ) 24 5 Total lease cost 888 860 1,750 1,758 Less: Sublease income (54 ) (1 ) (107 ) (17 ) Net lease cost $ 834 $ 859 $ 1,643 $ 1,741 Other information related to leases was as follows: For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 805 $ 850 $ 1,584 $ 1,725 Operating cash flows from finance leases 38 1 68 2 Financing cash flows from finance leases 13 - 25 - Right-of-use-assets obtained in exchange for lease obligations: Operating leases 2,073 125 2,424 12,252 Finance leases 53 - 277 - Weighted average remaining lease term (years): Operating leases 11.0 11.2 Finance lease 4.4 3.5 Weighted average discount rate: Operating leases 7.4 % 7.7 % Finance leases 6.9 % 4.0 % Approximate future minimum rental commitments under non-cancellable leases as of December 27, 2019 Operating Leases Finance Leases 2020 $ 1,553 $ 103 2021 2,598 206 2022 2,096 206 2023 1,965 198 2024 1,792 166 Thereafter 12,455 8 Total future lease payments 22,459 887 Less: Amount representing interest (7,270 ) (123 ) Present value of future payments $ 15,189 $ 764 The following table provides a summary of leases recorded on the consolidated balance sheet. Balance Sheet Location December 27, 2019 June 30, 2019 Lease Assets Operating lease right-of-use assets Property, plant and equipment, net $ 15,180 $ 14,138 Finance lease right-of-use assets Property, plant and equipment, net 746 545 Lease Liabilities Operating lease liabilities Accrued liabilites $ 1,936 $ 1,933 Operating lease liabilities Lease obligations 13,253 12,197 Finance lease liabilities Accrued liabilites 167 104 Finance lease liabilities Lease obligations 597 449 |
Note O - Derivative Financial I
Note O - Derivative Financial Instruments | 6 Months Ended |
Dec. 27, 2019 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | O. Derivative Financial Instruments From time to time, the Company enters into derivative instruments to manage volatility arising from risks relating to interest rates and foreign exchange. The Company does not no The Company reports all derivative instruments on its consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of transactions entered into for hedging purposes. Interest Rate Swap Contracts The Company has one December 27, 2019, April 22, 2019. 815, The primary purpose of the Company’s cash flow hedging activities is to manage the potential changes in value associated with interest payments on the Company’s LIBOR-based indebtedness. The Company records gains and losses on interest rate swap contracts qualifying as cash flow hedges in accumulated other comprehensive loss to the extent that these hedges are effective and until the Company recognizes the underlying transactions in net earnings, at which time these gains and losses are recognized in interest expense on its consolidated statements of operations and comprehensive (loss) income. Cash flows from derivative financial instruments are classified as cash flows from financing activities on the consolidated statements of cash flows. These contracts generally have original maturities of greater than 12 Net unrealized after-tax losses related to cash flow hedging activities that were included in accumulated other comprehensive loss were $506 $509 December 27, 2019 June 30, 2019, The Company estimates that $144 twelve For eign Currency Forward Contracts The Company has no December 27, 2019 June 30, 2019. Fair Value of Derivative Instruments The fair value of derivative instruments included in the condensed consolidated balance sheets were as follows: Balance Sheet Location December 27, 2019 June 30, 2019 Derivative designated as hedge: Interest rate swap Accrued liabilities $ 144 $ 122 Interest rate swap Other long-term liabilities 518 544 The impact of the Company’s derivative instruments on the consolidated statement of operations and comprehensive (loss) income for the quarter and two December 27, 2019 December 28, 2018, Statement of Comprehensive For the Quarter Ended For the Two Quarters Ended Income Location December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Derivative designated as hedge: Interest rate swap Interest expense $ 31 $ - $ 42 $ - Interest rate swap Unrealized income on cash flow hedge 146 - 3 - |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 27, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards In June 2018, 2018 07 July 1, 2019. not New Accounting Releases In August 2018, 2018 13 820, December 15, 2019 ( 2021 In August 2018, 2018 14 December 15, 2020 ( 2021 In December 2019, 2019 12 December 15, 2020 ( 2022 Special Note Regarding Smaller Reporting Company Status Under SEC Release 33 10513; 34 83550, |
Note B - Inventories (Tables)
Note B - Inventories (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 27, 2019 June 30, 2019 Inventories: Finished parts $ 68,315 $ 57,682 Work in process 22,222 23,812 Raw materials 44,121 44,399 $ 134,658 $ 125,893 |
Note C - Warranty (Tables)
Note C - Warranty (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Reserve balance, beginning of period $ 7,107 $ 4,667 $ 3,736 $ 4,407 Current period expense and adjustments 681 128 6,129 1,414 Payments or credits to customers (2,035 ) (926 ) (4,067 ) (1,946 ) Translation 22 (26 ) (23 ) (32 ) Reserve balance, end of period $ 5,775 $ 3,843 $ 5,775 $ 3,843 |
Note E - Business Segments (Tab
Note E - Business Segments (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Net sales Manufacturing segment sales $ 57,173 $ 70,986 $ 111,734 $ 139,899 Distribution segment sales 22,025 27,090 44,452 50,010 Inter/Intra segment elimination – manufacturing (15,105 ) (14,931 ) (28,935 ) (29,681 ) Inter/Intra segment elimination – distribution (4,557 ) (5,038 ) (8,425 ) (7,432 ) $ 59,536 $ 78,107 $ 118,826 $ 152,796 Net (loss) income attributable to Twin Disc Manufacturing segment net (loss) income $ (2,936 ) $ 7,924 $ (7,791 ) $ 15,159 Distribution segment net income 842 569 1,934 1,434 Corporate and eliminations (4,422 ) (4,420 ) (6,970 ) (9,658 ) $ (6,516 ) $ 4,073 $ (12,827 ) $ 6,935 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | December 27, 2019 June 30, 2019 Assets Manufacturing segment assets $ 380,275 $ 384,612 Distribution segment assets 51,277 46,076 Corporate assets and elimination of intercompany assets (88,271 ) (83,818 ) $ 343,281 $ 346,870 |
Revenue from External Customers by Products and Services [Table Text Block] | Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 5,892 $ 1,484 $ (751 ) $ 6,625 Land-based transmissions 16,559 6,238 (7,492 ) 15,305 Marine and propulsion systems 34,700 13,418 (11,419 ) 36,699 Other 22 885 - 907 Total $ 57,173 $ 22,025 $ (19,662 ) $ 59,536 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 8,253 $ 2,580 $ (1,717 ) $ 9,116 Land-based transmissions 30,309 6,846 (7,377 ) 29,778 Marine and propulsion systems 32,412 16,307 (10,863 ) 37,856 Other 12 1,357 (12 ) 1,357 Total $ 70,986 $ 27,090 $ (19,969 ) $ 78,107 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 12,700 $ 2,952 $ (1,564 ) $ 14,088 Land-based transmissions 33,973 11,718 (14,867 ) 30,824 Marine and propulsion systems 65,020 27,628 (20,928 ) 71,720 Other 041 2,154 (1 ) 2,194 Total $ 111,734 $ 44,452 $ (37,360 ) $ 118,826 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 14,734 $ 3,977 $ (2,549 ) $ 16,162 Land-based transmissions 59,742 12,456 (12,784 ) 59,414 Marine and propulsion systems 65,388 30,464 (21,721 ) 74,131 Other 35 3,113 (59 ) 3,089 Total $ 139,899 $ 50,010 $ (37,113 ) $ 152,796 |
Note G - Pension and Other Po_2
Note G - Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Schedule of Net Funded Status [Table Text Block] | For the Quarter Ended For the Two Quarters Ended 12/27/2019 12/28/2018 12/27/2019 12/28/2018 Pension Benefits: Service cost $ 194 $ 251 $ 406 $ 497 Interest cost 889 1,083 1,794 2,175 Expected return on plan assets (1,240 ) (1,333 ) (2,488 ) (2,664 ) Amortization of transition obligation 9 9 17 17 Amortization of prior service cost (4 ) 1 (7 ) 2 Amortization of actuarial net loss 784 678 1,568 1,355 Net periodic benefit cost $ 632 $ 689 $ 1,290 $ 1,382 Postretirement Benefits: Service cost $ 4 $ 5 $ 9 $ 9 Interest cost 55 76 110 152 Amortization of prior service cost (69 ) - (138 ) - Amortization of actuarial net loss - (69 ) - (137 ) Net periodic benefit (gain) cost $ (10 ) $ 12 $ (19 ) $ 24 |
Note I - Goodwill and Other I_2
Note I - Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Net Book Value Rollforward By Reporting Unit Gross Carrying Amount Accumulated Amortization / Impairment Net Book Value European Propulsion European Industrial Balance at June 30, 2019 $ 39,776 $ (13,822 ) $ 25,954 $ 23,371 $ 2,583 Translation adjustment (393 ) - (393 ) (358 ) (35 ) Balance at December 27, 2019 $ 39,383 $ (13,822 ) $ 25,561 $ 23,013 $ 2,548 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Net Book Value Rollforward Net Book Value By Asset Type Gross Carrying Amount Accumulated Amortization / Impairment Net Book Value Customer Relationships Technology Know-how Trade Name Other Balance at June 30, 2019 $ 39,587 $ (14,434 ) $ 25,153 $ 14,843 $ 7,025 $ 2,733 $ 552 Additions 53 - 53 - - - 53 Amortization - (2,272 ) (2,272 ) (1,500 ) (569 ) (126 ) (77 ) Translation adjustment (509 ) - (509 ) (334 ) (127 ) (44 ) (4 ) Balance at December 27, 2019 $ 39,131 $ (16,706 ) $ 22,425 $ 13,009 $ 6,329 $ 2,563 $ 524 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year 2020 $ 2,297 2021 3,305 2022 3,120 2023 2,960 2024 2,748 2025 2,562 |
Note J - Long-term Debt (Tables
Note J - Long-term Debt (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 27, 2019 June 30, 2019 Borrowings under the Credit Agreement Revolving loans $ 33,229 $ 22,666 Term loan (due March 2026) 19,000 19,500 Other 283 325 Subtotal 52,512 42,491 Less: current maturities (2,000 ) (2,000 ) Total long-term debt $ 50,512 $ 40,491 |
Note K - Shareholders' Equity (
Note K - Shareholders' Equity (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2019 $ 45,047 $ 196,472 $ (37,971 ) $ (21,332 ) $ 602 $ 182,818 Net (loss) income (6,311 ) 18 (6,293 ) Translation adjustments (3,014 ) 18 (2,996 ) Benefit plan adjustments, net of tax 557 557 Unrealized loss on cash flow hedge, net of tax (143 ) (143 ) Cash dividends (127 ) (127 ) Compensation expense 459 459 Shares (acquired) issued, net (2,324 ) 1,412 (912 ) Balance, September 27, 2019 43,182 190,161 (40,571 ) (19,920 ) 511 173,363 Net (loss) income (6,516 ) 50 (6,466 ) Translation adjustments 1,647 - 1,647 Benefit plan adjustments, net of tax 548 548 Unrealized income on cash flow hedge, net of tax 146 146 Cash dividends - Compensation expense 248 248 Shares (acquired) issued, net (1,125 ) 1,124 (1 ) Balance, December 27, 2019 $ 42,305 $ 183,645 $ (38,230 ) $ (18,796 ) $ 561 $ 169,485 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Income (Loss) Stock Interest Equity Balance, June 30, 2018 $ 11,570 $ 178,896 $ (23,792 ) $ (23,677 ) $ 619 $ 143,616 Net income 2,862 41 2,903 Translation adjustments (536 ) (25 ) (561 ) Benefit plan adjustments, net of tax 471 471 Release stranded tax effects 6,903 (6,903 ) - Cash dividends (115 ) (115 ) Compensation expense 850 850 Common stock issued, net 32,210 32,210 Shares acquired, net (586 ) (328 ) (914 ) Balance, September 28, 2018 44,044 188,661 (30,760 ) (24,005 ) 520 178,460 Net income 4,073 6 4,079 Translation adjustments (1,773 ) (13 ) (1,786 ) Benefit plan adjustments, net of tax 478 478 Cash dividends - Compensation expense 590 590 Shares (acquired) issued, net (497 ) 520 23 Balance, December 28, 2018 $ 44,137 $ 192,734 $ (32,055 ) $ (23,485 ) $ 513 $ 181,844 |
Reconciliation For The Changes In Accumulated Other Comprehensive Income Loss Net Of Tax By Component [Table Text Block] | Translation Benefit Plan Cash Flow Adjustment Adjustment Hedges Balance at June 30, 2019 $ 4,439 $ (41,901 ) $ (509 ) Translation adjustment during the quarter (3,014 ) - - Amounts reclassified from accumulated other comprehensive income - 557 (143 ) Net current period other comprehensive (loss) income (3,014 ) 557 (143 ) Balance at September 27, 2019 1,425 (41,344 ) (652 ) Translation adjustment during the quarter 1,647 - - Amounts reclassified from accumulated other comprehensive income - 548 146 Net current period other comprehensive income 1,647 548 146 Balance at December 27, 2019 $ 3,072 $ (40,796 ) $ (506 ) Translation Benefit Plan Adjustment Adjustment Balance at June 30, 2018 $ 7,085 $ (30,877 ) Translation adjustment during the quarter (536 ) - Release stranded tax effects - (6,903 ) Amounts reclassified from accumulated other comprehensive income - 471 Net current period other comprehensive loss (536 ) (6,432 ) Balance at September 28, 2018 6,549 (37,309 ) Translation adjustment during the quarter (1,773 ) - Amounts reclassified from accumulated other comprehensive income - 478 Net current period other comprehensive (loss) income (1,773 ) 478 Balance at December 28, 2018 $ 4,776 $ (36,831 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 27, 2019 December 27, 2019 Changes in benefit plan items Actuarial losses $ 781 (a) $ 1,571 (a) Transition asset and prior service benefit (64 ) (a) (128 ) (a) Total amortization 717 1,443 Income taxes 169 338 Total reclassification net of tax $ 548 $ 1,105 Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 28, 2018 December 28, 2018 Changes in benefit plan items Actuarial losses $ 614 (a) $ 1,222 (a) Transition asset and prior service benefit 10 (a) 19 (a) Total amortization 624 1,241 Income taxes 146 292 Total reclassification net of tax $ 478 $ 949 |
Note L - Restructuring of Ope_2
Note L - Restructuring of Operations (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Accrued restructuring liability, June 30, 2019 $ - Additions related to workforce reduction 1,184 Additions related to program termination 3,185 Payments, adjustments and write-offs during the year (2,710 ) Accrued restructuring liability, December 27, 2019 $ 1,659 |
Note M - Earnings Per Share (Ta
Note M - Earnings Per Share (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Basic: Net (loss) income $ (6,466 ) $ 4,079 $ (12,759 ) $ 6,982 Less: Net earnings attributable to noncontrolling interest (50 ) (6 ) (68 ) (47 ) Less: Undistributed earnings attributable to unvested shares - (53 ) - (105 ) Net (loss) income available to Twin Disc shareholders (6,516 ) 4,020 (12,827 ) 6,830 Weighted average shares outstanding - basic 13,164 12,909 13,135 12,233 Basic (Loss) Income Per Share: Net (loss) income per share - basic $ (0.49 ) $ 0.31 $ (0.98 ) $ 0.56 Diluted: Net (loss) income $ (6,466 ) $ 4,079 $ (12,759 ) $ 6,982 Less: Net earnings attributable to noncontrolling interest (50 ) (6 ) (68 ) (47 ) Less: Undistributed earnings attributable to unvested shares - (53 ) - (105 ) Net (loss) income available to Twin Disc shareholders (6,516 ) 4,020 (12,827 ) 6,830 Weighted average shares outstanding - basic 13,164 12,909 13,135 12,233 Effect of dilutive stock awards - 88 - 71 Weighted average shares outstanding - diluted 13,164 12,997 13,135 12,304 Diluted (Loss) Income Per Share: Net (loss) income per share - diluted $ (0.49 ) $ 0.31 $ (0.98 ) $ 0.56 |
Note N - Lease Liabilities (Tab
Note N - Lease Liabilities (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Lease, Cost [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Finance lease cost: Amortization of right-of-use assets $ 43 $ 1 $ 79 $ 1 Interest on lease liabilities 13 - 25 - Operating lease cost 815 850 1,596 1,730 Short-term lease cost 9 12 26 22 Variable lease cost 8 (3 ) 24 5 Total lease cost 888 860 1,750 1,758 Less: Sublease income (54 ) (1 ) (107 ) (17 ) Net lease cost $ 834 $ 859 $ 1,643 $ 1,741 |
Operating and Finance Leases, Other Disclosures [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 805 $ 850 $ 1,584 $ 1,725 Operating cash flows from finance leases 38 1 68 2 Financing cash flows from finance leases 13 - 25 - Right-of-use-assets obtained in exchange for lease obligations: Operating leases 2,073 125 2,424 12,252 Finance leases 53 - 277 - Weighted average remaining lease term (years): Operating leases 11.0 11.2 Finance lease 4.4 3.5 Weighted average discount rate: Operating leases 7.4 % 7.7 % Finance leases 6.9 % 4.0 % |
Schedule of Future Minimum Rental Payments for Operating Leases and Finance Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases 2020 $ 1,553 $ 103 2021 2,598 206 2022 2,096 206 2023 1,965 198 2024 1,792 166 Thereafter 12,455 8 Total future lease payments 22,459 887 Less: Amount representing interest (7,270 ) (123 ) Present value of future payments $ 15,189 $ 764 |
Assets and Liabilities, Lessee [Table Text Block] | Balance Sheet Location December 27, 2019 June 30, 2019 Lease Assets Operating lease right-of-use assets Property, plant and equipment, net $ 15,180 $ 14,138 Finance lease right-of-use assets Property, plant and equipment, net 746 545 Lease Liabilities Operating lease liabilities Accrued liabilites $ 1,936 $ 1,933 Operating lease liabilities Lease obligations 13,253 12,197 Finance lease liabilities Accrued liabilites 167 104 Finance lease liabilities Lease obligations 597 449 |
Note O - Derivative Financial_2
Note O - Derivative Financial Instruments (Tables) | 6 Months Ended |
Dec. 27, 2019 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Balance Sheet Location December 27, 2019 June 30, 2019 Derivative designated as hedge: Interest rate swap Accrued liabilities $ 144 $ 122 Interest rate swap Other long-term liabilities 518 544 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | Statement of Comprehensive For the Quarter Ended For the Two Quarters Ended Income Location December 27, 2019 December 28, 2018 December 27, 2019 December 28, 2018 Derivative designated as hedge: Interest rate swap Interest expense $ 31 $ - $ 42 $ - Interest rate swap Unrealized income on cash flow hedge 146 - 3 - |
Note B - Inventories - Inventor
Note B - Inventories - Inventories (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Jun. 30, 2019 |
Finished parts | $ 68,315 | $ 57,682 |
Work in process | 22,222 | 23,812 |
Raw materials | 44,121 | 44,399 |
Total inventories | $ 134,658 | $ 125,893 |
Note C - Warranty (Details Text
Note C - Warranty (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Product Warranty Expense | $ 3,889 | |
Product Warranty Accrual, Current | 4,856 | $ 3,309 |
Product Warranty Accrual, Noncurrent | $ 919 | $ 534 |
Note C - Warranty - Warranty (D
Note C - Warranty - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Reserve balance | $ 7,107 | $ 4,667 | $ 3,736 | $ 4,407 |
Current period expense and adjustments | 681 | 128 | 6,129 | 1,414 |
Payments or credits to customers | (2,035) | (926) | (4,067) | (1,946) |
Translation | 22 | (26) | (23) | (32) |
Reserve balance | $ 5,775 | $ 3,843 | $ 5,775 | $ 3,843 |
Note E - Business Segments (Det
Note E - Business Segments (Details Textual) | 6 Months Ended |
Dec. 27, 2019 | |
Number of Reportable Segments | 2 |
Note E - Business Segments - Re
Note E - Business Segments - Revenues by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Net sales | $ 59,536 | $ 78,107 | $ 118,826 | $ 152,796 |
Net income (loss) | (6,516) | 4,073 | (12,827) | 6,935 |
Intersegment Eliminations [Member] | ||||
Net sales | (19,662) | (19,969) | (37,360) | (37,113) |
Corporate, Non-Segment [Member] | ||||
Net income (loss) | (4,422) | (4,420) | (6,970) | (9,658) |
Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net sales | 57,173 | 70,986 | 111,734 | 139,899 |
Net income (loss) | (2,936) | 7,924 | (7,791) | 15,159 |
Manufacturing Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | (15,105) | (14,931) | (28,935) | (29,681) |
Distribution Segment [Member] | Operating Segments [Member] | ||||
Net sales | 22,025 | 27,090 | 44,452 | 50,010 |
Net income (loss) | 842 | 569 | 1,934 | 1,434 |
Distribution Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | $ (4,557) | $ (5,038) | $ (8,425) | $ (7,432) |
Note E - Business Segments - As
Note E - Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Jun. 30, 2019 |
Segment Assets | $ 343,281 | $ 346,870 |
Operating Segments [Member] | Manufacturing Segment [Member] | ||
Segment Assets | 380,275 | 384,612 |
Operating Segments [Member] | Distribution Segment [Member] | ||
Segment Assets | 51,277 | 46,076 |
Corporate, Non-Segment [Member] | ||
Segment Assets | $ (88,271) | $ (83,818) |
Note E - Business Segments - Ne
Note E - Business Segments - Net Sales by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Net Sales | $ 59,536 | $ 78,107 | $ 118,826 | $ 152,796 |
Intersegment Eliminations [Member] | ||||
Net Sales | (19,662) | (19,969) | (37,360) | (37,113) |
Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 57,173 | 70,986 | 111,734 | 139,899 |
Manufacturing Segment [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (15,105) | (14,931) | (28,935) | (29,681) |
Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 22,025 | 27,090 | 44,452 | 50,010 |
Distribution Segment [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (4,557) | (5,038) | (8,425) | (7,432) |
Industrial [Member] | ||||
Net Sales | 6,625 | 9,116 | 14,088 | 16,162 |
Industrial [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (751) | (1,717) | (1,564) | (2,549) |
Industrial [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 5,892 | 8,253 | 12,700 | 14,734 |
Industrial [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 1,484 | 2,580 | 2,952 | 3,977 |
Land Based Transmissions [Member] | ||||
Net Sales | 15,305 | 29,778 | 30,824 | 59,414 |
Land Based Transmissions [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (7,492) | (7,377) | (14,867) | (12,784) |
Land Based Transmissions [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 16,559 | 30,309 | 33,973 | 59,742 |
Land Based Transmissions [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 6,238 | 6,846 | 11,718 | 12,456 |
Marine and Propulsion Systems [Member] | ||||
Net Sales | 36,699 | 37,856 | 71,720 | 74,131 |
Marine and Propulsion Systems [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (11,419) | (10,863) | (20,928) | (21,721) |
Marine and Propulsion Systems [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 34,700 | 32,412 | 65,020 | 65,388 |
Marine and Propulsion Systems [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 13,418 | 16,307 | 27,628 | 30,464 |
Other [Member] | ||||
Net Sales | 907 | 1,357 | 2,194 | 3,089 |
Other [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (12) | (1) | (59) | |
Other [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 22 | 12 | 41 | 35 |
Other [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | $ 885 | $ 1,357 | $ 2,154 | $ 3,113 |
Note F - Stock-based Compensa_2
Note F - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 27, 2019 | Sep. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Performance Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 131,700 | 42,300 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 184,800 | 67,000 | 184,800 | 67,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 214,000 | 188,000 | 214,000 | 188,000 | |
Share-based Payment Arrangement, Expense | $ (52,000) | $ 242,000 | $ 20,000 | $ 788,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 15.24 | $ 15.24 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 2,355,000 | $ 2,355,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | $ 0 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 180,400 | 35,600 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 231,400 | 185,300 | 231,400 | 185,300 | |
Share-based Payment Arrangement, Expense | $ 218,000 | $ 266,000 | $ 524,000 | $ 516,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,982,000 | 1,982,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 1,241,000 | $ 2,102,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 20,500 | 2,800 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years | ||||
Restricted Stock [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Restricted Stock [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 38,000 | 38,000 | 38,000 | 38,000 | |
Share-based Payment Arrangement, Expense | $ 81,000 | $ 82,000 | $ 163,000 | $ 136,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 25.77 | $ 25.77 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 516,000 | $ 516,000 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years |
Note G - Pension and Other Po_3
Note G - Pension and Other Postretirement Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | $ 548 | $ 478 | $ 1,105 | $ 949 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | 169 | $ 146 | 338 | $ 292 |
Pension Plan [Member] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 1,936 | 1,936 | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 785 |
Note G - Pension and Other Po_4
Note G - Pension and Other Postretirement Benefit Plans - Net Funded Status of Pension and Postretirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Pension Plan [Member] | ||||
Service cost | $ 194 | $ 251 | $ 406 | $ 497 |
Interest cost | 889 | 1,083 | 1,794 | 2,175 |
Expected return on plan assets | 1,240 | 1,333 | 2,488 | 2,664 |
Amortization of transition obligation | (9) | (9) | (17) | (17) |
Amortization of prior service cost | (4) | 1 | (7) | 2 |
Amortization of actuarial net loss | 784 | 678 | 1,568 | 1,355 |
Net periodic benefit cost | 632 | 689 | 1,290 | 1,382 |
Other Postretirement Benefits Plan [Member] | ||||
Service cost | 4 | 5 | 9 | 9 |
Interest cost | 55 | 76 | 110 | 152 |
Amortization of prior service cost | (69) | (138) | ||
Amortization of actuarial net loss | (69) | (137) | ||
Net periodic benefit cost | $ (10) | $ 12 | $ (19) | $ 24 |
Note H - Income Taxes (Details
Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 4.30% | 25.10% |
Effective Income Tax Rate Reconciliation, GILTI benefit, Percent | 18.55% | 0.67% |
Effective Income Tax Rate Reconciliation, GILTI Inclusion, Amount | $ 9,385 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1,158 | |
Foreign Tax Authority [Member] | ||
Open Tax Year | 2013 2014 2015 2016 2017 2018 2019 | |
Foreign Tax Authority [Member] | Tax and Customs Administration, Netherlands [Member] | ||
Open Tax Year | 2019 | |
Domestic Tax Authority [Member] | ||
Open Tax Year | 2015 2016 2017 2018 2019 |
Note I - Goodwill and Other I_3
Note I - Goodwill and Other Intangibles (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Jun. 30, 2019 | |
Goodwill, Ending Balance | $ 25,561 | $ 25,561 | $ 25,954 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | ||||
Amortization of Intangible Assets, Total | $ 1,143 | $ 583 | 2,272 | $ 1,249 | |
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 200 | 200 | 200 | ||
European Propulsion [Member] | |||||
Goodwill, Ending Balance | 23,013 | 23,013 | 23,371 | ||
European Industrial [Member] | |||||
Goodwill, Ending Balance | $ 2,548 | $ 2,548 | $ 2,583 |
Note I - Goodwill and Other I_4
Note I - Goodwill and Other Intangibles - Goodwill Rollforward (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2019 | Jun. 30, 2019 | |
Balance, goodwill gross carrying amount | $ 39,776 | |
Balance, goodwill accumulated impairment | (13,822) | $ (13,822) |
Balance, goodwill net book value | 25,954 | |
Translation adjustment, goodwill gross carrying amount | (393) | |
Translation adjustment, goodwill net book value | (393) | |
Balance, goodwill gross carrying amount | 39,383 | |
Balance, goodwill net book value | 25,561 | |
European Propulsion [Member] | ||
Balance, goodwill net book value | 23,371 | |
Translation adjustment, goodwill gross carrying amount | (358) | |
Translation adjustment, goodwill net book value | (358) | |
Balance, goodwill net book value | 23,013 | |
European Industrial [Member] | ||
Balance, goodwill net book value | 2,583 | |
Translation adjustment, goodwill gross carrying amount | (35) | |
Translation adjustment, goodwill net book value | (35) | |
Balance, goodwill net book value | $ 2,548 |
Note I - Goodwill and Other I_5
Note I - Goodwill and Other Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Balance, Definite Intangible Assets Gross Carrying Amount | $ 39,587 | |||
Balance, Definite Intangible Assets Accumulated Amortization/Impairment | (14,434) | |||
Balance at June 30, Definite Intangible Assets Net Book Value | 25,153 | |||
Additions, Definite Intangible Assets Gross Carrying Amount | 53 | |||
Additions, Definite Intangible Assets Net Book Value | 53 | |||
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment | $ (1,143) | $ (583) | (2,272) | $ (1,249) |
Amortization, Definite Intangible Assets Net Book Value | (1,143) | $ (583) | (2,272) | $ (1,249) |
Translation adjustment, Definite Intangible Assets Gross Carrying Amount | (509) | |||
Translation adjustment, Definite Intangible Assets Net Book Value | (509) | |||
Balance, Definite Intangible Assets Gross Carrying Amount | 39,131 | 39,131 | ||
Balance, Definite Intangible Assets Accumulated Amortization/Impairment | (16,706) | (16,706) | ||
Balance at June 30, Definite Intangible Assets Net Book Value | 22,425 | 22,425 | ||
Customer Relationships [Member] | ||||
Balance at June 30, Definite Intangible Assets Net Book Value | 14,843 | |||
Additions, Definite Intangible Assets Net Book Value | ||||
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment | (1,500) | |||
Amortization, Definite Intangible Assets Net Book Value | (1,500) | |||
Translation adjustment, Definite Intangible Assets Net Book Value | (334) | |||
Balance at June 30, Definite Intangible Assets Net Book Value | 13,009 | 13,009 | ||
Technology-Based Intangible Assets [Member] | ||||
Balance at June 30, Definite Intangible Assets Net Book Value | 7,025 | |||
Additions, Definite Intangible Assets Net Book Value | ||||
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment | (569) | |||
Amortization, Definite Intangible Assets Net Book Value | (569) | |||
Translation adjustment, Definite Intangible Assets Net Book Value | (127) | |||
Balance at June 30, Definite Intangible Assets Net Book Value | 6,329 | 6,329 | ||
Trade Names [Member] | ||||
Balance at June 30, Definite Intangible Assets Net Book Value | 2,733 | |||
Additions, Definite Intangible Assets Net Book Value | ||||
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment | (126) | |||
Amortization, Definite Intangible Assets Net Book Value | (126) | |||
Translation adjustment, Definite Intangible Assets Net Book Value | (44) | |||
Balance at June 30, Definite Intangible Assets Net Book Value | 2,563 | 2,563 | ||
Other Intangible Assets [Member] | ||||
Balance at June 30, Definite Intangible Assets Net Book Value | 552 | |||
Additions, Definite Intangible Assets Net Book Value | 53 | |||
Amortization, Definite Intangible Assets Accumulated Amortization/Impairment | (77) | |||
Amortization, Definite Intangible Assets Net Book Value | (77) | |||
Translation adjustment, Definite Intangible Assets Net Book Value | (4) | |||
Balance at June 30, Definite Intangible Assets Net Book Value | $ 524 | $ 524 |
Note I - Goodwill and Other I_6
Note I - Goodwill and Other Intangibles - Estimated Intangibles Amortization Expense (Details) $ in Thousands | Dec. 27, 2019USD ($) |
2020 | $ 2,297 |
2021 | 3,305 |
2022 | 3,120 |
2023 | 2,960 |
2024 | 2,748 |
2025 | $ 2,562 |
Note J - Long-term Debt (Detail
Note J - Long-term Debt (Details Textual) $ in Thousands | Apr. 22, 2019USD ($) | Jun. 29, 2018USD ($) | Dec. 27, 2019USD ($) | Jan. 28, 2020 |
Principal Paid on Sale Leaseback Liabilities | $ 36 | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Bank of Montreal [Member] | ||||
Derivative, Notional Amount | $ 20,000 | $ 19,000 | ||
Maximum [Member] | ||||
Sale Leaseback Transactions, Term | 5 years | |||
Sale Leaseback Transactions, Implied Interest Rate | 25.00% | |||
Minimum [Member] | ||||
Sale Leaseback Transactions, Term | 3 years | |||
Sale Leaseback Transactions, Implied Interest Rate | 7.00% | |||
BMO [Member] | The 2018 Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||
Debt Instrument, Interest Rate During Period | 2.48% | |||
Line of Credit Facility, Current Borrowing Capacity | $ 41,699 | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 8,470 | |||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | ||||
Debt Instrument, Periodic Payment, Total | $ 500 | |||
Debt Instrument, Interest Rate During Period | 3.58% | |||
Debt Instrument, Maturity Date | Mar. 4, 2026 | |||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | Minimum [Member] | ||||
Debt Instrument, Covenant, Funded Debt to EBITDA Ratio | 3 | |||
BMO [Member] | The 2018 Credit Agreement Amendment [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument, Covenant, Allowable Ratio, Current Quarter | 3 | |||
BMO [Member] | The 2018 Credit Agreement Amendment [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Subsequent Event [Member] | ||||
Debt Instrument, Covenant, Allowable Ratio, Current Quarter | 4 | |||
Debt Instrument, Covenant, Allowable Ratio, Next Quarter | 5 | |||
Debt Instrument, Covenant, Allowable Ratio, Quarter Two | 4 | |||
Debt Instrument, Covenant, Allowable Ratio, Quarter Three | 3.5 | |||
Debt Instrument, Covenant, Allowable Ratio, After Quarter Three | 3 |
Note J - Long-term Debt - Long-
Note J - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Jun. 30, 2019 |
Long-term debt | $ 52,512 | $ 42,491 |
Less: current maturities | (2,000) | (2,000) |
Total long-term debt | 50,512 | 40,491 |
Revolving Loan [Member] | ||
Long-term debt | 33,229 | 22,666 |
Term Loan [Member] | ||
Long-term debt | 19,000 | 19,500 |
Other Long-Term Debt [Member] | ||
Long-term debt | $ 283 | $ 325 |
Note K - Shareholders' Equity_2
Note K - Shareholders' Equity (Details Textual) - shares shares in Thousands | 3 Months Ended | |
Dec. 27, 2019 | Dec. 28, 2018 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 315 | |
Treasury Stock, Shares, Acquired | 0 | 0 |
Note K - Shareholders' Equity -
Note K - Shareholders' Equity - Shareholders' Equity Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 27, 2019 | Sep. 27, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Balance | $ 173,363 | $ 182,818 | $ 178,460 | $ 143,616 | $ 182,818 | $ 143,616 |
Net income (loss) | (6,466) | (6,293) | 4,079 | 2,903 | (12,759) | 6,982 |
Translation adjustments | 1,647 | (2,996) | (1,786) | (561) | (1,349) | (2,347) |
Benefit plan adjustments, net of tax | 548 | 557 | 478 | 471 | 1,105 | 949 |
Unrealized loss on cash flow hedge, net of tax | 146 | (143) | 3 | |||
Cash dividends | (127) | (115) | ||||
Compensation expense | 248 | 459 | 590 | 850 | ||
Shares (acquired) issued, net | (1) | (912) | 23 | (914) | ||
Net (loss) income | (6,466) | (6,293) | 4,079 | 2,903 | (12,759) | 6,982 |
Foreign currency translation adjustment | 1,647 | (2,996) | (1,786) | (561) | (1,349) | (2,347) |
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively | 548 | 557 | 478 | 471 | 1,105 | 949 |
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively | 146 | (143) | 3 | |||
Balance | 169,485 | 173,363 | 181,844 | 178,460 | 169,485 | 181,844 |
Release stranded tax effects | ||||||
Common stock issued, net | 32,210 | |||||
Common Stock [Member] | ||||||
Balance | 43,182 | 45,047 | 44,044 | 11,570 | 45,047 | 11,570 |
Net income (loss) | ||||||
Translation adjustments | ||||||
Benefit plan adjustments, net of tax | ||||||
Unrealized loss on cash flow hedge, net of tax | ||||||
Cash dividends | ||||||
Compensation expense | 248 | 459 | 590 | 850 | ||
Shares (acquired) issued, net | (1,125) | (2,324) | (497) | (586) | ||
Net (loss) income | ||||||
Foreign currency translation adjustment | ||||||
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively | ||||||
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively | ||||||
Balance | 42,305 | 43,182 | 44,137 | 44,044 | 42,305 | 44,137 |
Release stranded tax effects | ||||||
Common stock issued, net | 32,210 | |||||
Retained Earnings [Member] | ||||||
Balance | 190,161 | 196,472 | 188,661 | 178,896 | 196,472 | 178,896 |
Net income (loss) | (6,516) | (6,311) | 4,073 | 2,862 | ||
Translation adjustments | ||||||
Benefit plan adjustments, net of tax | ||||||
Unrealized loss on cash flow hedge, net of tax | ||||||
Cash dividends | ||||||
Compensation expense | ||||||
Shares (acquired) issued, net | ||||||
Net (loss) income | (6,516) | (6,311) | 4,073 | 2,862 | ||
Foreign currency translation adjustment | ||||||
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively | ||||||
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively | ||||||
Balance | 183,645 | 190,161 | 192,734 | 188,661 | 183,645 | 192,734 |
Release stranded tax effects | 6,903 | |||||
Common stock issued, net | ||||||
AOCI Attributable to Parent [Member] | ||||||
Balance | (40,571) | (37,971) | (30,760) | (23,792) | (37,971) | (23,792) |
Net income (loss) | ||||||
Translation adjustments | 1,647 | (3,014) | (1,773) | (536) | ||
Benefit plan adjustments, net of tax | 548 | 557 | 478 | 471 | ||
Unrealized loss on cash flow hedge, net of tax | 146 | (143) | ||||
Cash dividends | ||||||
Compensation expense | ||||||
Shares (acquired) issued, net | ||||||
Net (loss) income | ||||||
Foreign currency translation adjustment | 1,647 | (3,014) | (1,773) | (536) | ||
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively | 548 | 557 | 478 | 471 | ||
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively | 146 | (143) | ||||
Balance | (38,230) | (40,571) | (32,055) | (30,760) | (38,230) | (32,055) |
Release stranded tax effects | (6,903) | |||||
Common stock issued, net | ||||||
Treasury Stock [Member] | ||||||
Balance | (19,920) | (21,332) | (24,005) | (23,677) | (21,332) | (23,677) |
Net income (loss) | ||||||
Translation adjustments | ||||||
Benefit plan adjustments, net of tax | ||||||
Unrealized loss on cash flow hedge, net of tax | ||||||
Cash dividends | ||||||
Compensation expense | ||||||
Shares (acquired) issued, net | 1,124 | 1,412 | 520 | (328) | ||
Net (loss) income | ||||||
Foreign currency translation adjustment | ||||||
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively | ||||||
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively | ||||||
Balance | (18,796) | (19,920) | (23,485) | (24,005) | (18,796) | (23,485) |
Release stranded tax effects | ||||||
Common stock issued, net | ||||||
Noncontrolling Interest [Member] | ||||||
Balance | 511 | 602 | 520 | 619 | 602 | 619 |
Net income (loss) | 50 | 18 | 6 | 41 | ||
Translation adjustments | 18 | (13) | (25) | |||
Benefit plan adjustments, net of tax | ||||||
Unrealized loss on cash flow hedge, net of tax | ||||||
Cash dividends | (127) | (115) | ||||
Compensation expense | ||||||
Shares (acquired) issued, net | ||||||
Net (loss) income | 50 | 18 | 6 | 41 | ||
Foreign currency translation adjustment | 18 | (13) | (25) | |||
Benefit plan adjustments, net of income taxes of $169, $146, $338 and $292, respectively | ||||||
Unrealized income on cash flow hedge, net of income taxes of ($45), $0, ($1) and $0, respectively | ||||||
Balance | $ 561 | $ 511 | $ 513 | 520 | $ 561 | $ 513 |
Release stranded tax effects | ||||||
Common stock issued, net |
Note K - Stockholders' Equity -
Note K - Stockholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 27, 2019 | Sep. 27, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Balance | $ 173,363 | $ 182,818 | $ 178,460 | $ 143,616 | $ 182,818 | $ 143,616 |
Translation adjustment during the quarter | 1,647 | (2,996) | (1,786) | (561) | (1,349) | (2,347) |
Release stranded tax effects | ||||||
Balance | 169,485 | 173,363 | 181,844 | 178,460 | 169,485 | 181,844 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Balance | 1,425 | 4,439 | 6,549 | 7,085 | 4,439 | 7,085 |
Translation adjustment during the quarter | 1,647 | (3,014) | (1,773) | (536) | ||
Release stranded tax effects | ||||||
Amounts reclassified from accumulated other comprehensive income | ||||||
Net current period other comprehensive (loss) income | 1,647 | (3,014) | (1,773) | (536) | ||
Balance | 3,072 | 1,425 | 4,776 | 6,549 | 3,072 | 4,776 |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Balance | (41,344) | (41,901) | (37,309) | (30,877) | (41,901) | (30,877) |
Translation adjustment during the quarter | ||||||
Release stranded tax effects | (6,903) | |||||
Amounts reclassified from accumulated other comprehensive income | 548 | 557 | 478 | 471 | ||
Net current period other comprehensive (loss) income | 548 | 557 | 478 | (6,432) | ||
Balance | (40,796) | (41,344) | $ (36,831) | $ (37,309) | (40,796) | $ (36,831) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||
Balance | (652) | (509) | (509) | |||
Translation adjustment during the quarter | ||||||
Amounts reclassified from accumulated other comprehensive income | 146 | (143) | ||||
Net current period other comprehensive (loss) income | 146 | (143) | ||||
Balance | $ (506) | $ (652) | $ (506) |
Note K - Shareholders' Equity_3
Note K - Shareholders' Equity - Reconciliation for the Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 27, 2019 | Sep. 27, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | ||
Income tax expense (benefit) | $ 1,040 | $ 1,451 | $ (578) | $ 2,338 | |||
Net (loss) income | (6,466) | $ (6,293) | 4,079 | $ 2,903 | (12,759) | 6,982 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||
Actuarial losses | [1] | 781 | 614 | 1,571 | 1,222 | ||
Transition asset and prior service benefit | [1] | (64) | 10 | (128) | 19 | ||
Total amortization | 717 | 624 | 1,443 | 1,241 | |||
Income tax expense (benefit) | 169 | 146 | 338 | 292 | |||
Net (loss) income | $ 548 | $ 478 | $ 1,105 | $ 949 | |||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note G "Pension and Other Postretirement Benefit Plans" for further details). |
Note L - Restructuring of Ope_3
Note L - Restructuring of Operations (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | 55 Months Ended | ||
Dec. 27, 2019USD ($) | Dec. 28, 2018USD ($) | Dec. 27, 2019USD ($) | Dec. 28, 2018USD ($) | Dec. 27, 2019USD ($) | |
Restructuring Charges, Total | $ 4,248 | $ 434 | $ 4,369 | $ 607 | $ 11,636 |
Restructuring and Related Cost, Number of Positions Eliminated | 203 | ||||
Payments for Restructuring | 2,710 | ||||
Employee Severance [Member] | |||||
Restructuring Charges, Total | 1,063 | $ 434 | 1,184 | $ 607 | |
Contract Termination [Member] | |||||
Restructuring Charges, Total | $ 3,185 | ||||
Contract Termination [Member] | Manufacturing Segment [Member] | |||||
Restructuring Charges, Total | 3,185 | ||||
Restructuring Reserve, Settled without Cash | 2,185 | ||||
Payments for Restructuring | $ 1,000 |
Note L - Restructuring of Ope_4
Note L - Restructuring of Operations - Roll-forward of Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 55 Months Ended | |||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Jun. 30, 2019 | |
Accrued restructuring liability | $ 1,659 | $ 1,659 | $ 1,659 | |||
Additions | 4,248 | $ 434 | 4,369 | $ 607 | $ 11,636 | |
Payments, adjustments and write-offs during the year | (2,710) | |||||
Employee Severance [Member] | ||||||
Additions | $ 1,063 | $ 434 | 1,184 | $ 607 | ||
Contract Termination [Member] | ||||||
Additions | $ 3,185 |
Note M - Earnings Per Share (De
Note M - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | |
Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 214,000 | 134,400 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 231,400 | 185,300 | |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 33,600 | 38,000 | 16,600 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,400 |
Note M - Earnings Per Share - C
Note M - Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 27, 2019 | Sep. 27, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Basic: | ||||||
Net (loss) income | $ (6,466) | $ (6,293) | $ 4,079 | $ 2,903 | $ (12,759) | $ 6,982 |
Less: Net earnings attributable to noncontrolling interest | (50) | (6) | (68) | (47) | ||
Less: Undistributed earnings attributable to unvested shares | (53) | (105) | ||||
Net (loss) income available to Twin Disc shareholders | $ (6,516) | $ 4,020 | $ (12,827) | $ 6,830 | ||
Weighted average shares outstanding - basic (in shares) | 13,164 | 12,909 | 13,135 | 12,233 | ||
Basic (Loss) Income Per Share: | ||||||
Net (loss) income per share - basic (in dollars per share) | $ (0.49) | $ 0.31 | $ (0.98) | $ 0.56 | ||
Diluted: | ||||||
Net (loss) income | $ (6,466) | $ (6,293) | $ 4,079 | $ 2,903 | $ (12,759) | $ 6,982 |
Less: Net earnings attributable to noncontrolling interest | (50) | (6) | (68) | (47) | ||
Less: Undistributed earnings attributable to unvested shares | (53) | (105) | ||||
Net (loss) income available to Twin Disc shareholders | $ (6,516) | $ 4,020 | $ (12,827) | $ 6,830 | ||
Weighted average shares outstanding - basic (in shares) | 13,164 | 12,909 | 13,135 | 12,233 | ||
Effect of dilutive stock awards (in shares) | 88 | 71 | ||||
Weighted average shares outstanding - diluted (in shares) | 13,164 | 12,997 | 13,135 | 12,304 | ||
Diluted (Loss) Income Per Share: | ||||||
Net (loss) income per share - diluted (in dollars per share) | $ (0.49) | $ 0.31 | $ (0.98) | $ 0.56 |
Note N - Lease Liabilities - Co
Note N - Lease Liabilities - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Amortization of right-of-use assets | $ 43 | $ 1 | $ 79 | $ 1 |
Interest on lease liabilities | 13 | 25 | ||
Operating lease cost | 815 | 850 | 1,596 | 1,730 |
Short-term lease cost | 9 | 12 | 26 | 22 |
Variable lease cost | 8 | (3) | 24 | 5 |
Total lease cost | 888 | 860 | 1,750 | 1,758 |
Less: Sublease income | (54) | (1) | (107) | (17) |
Net lease cost | $ 834 | $ 859 | $ 1,643 | $ 1,741 |
Note N - Lease Liabilities - Ot
Note N - Lease Liabilities - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Operating cash flows from operating leases | $ 805 | $ 850 | $ 1,584 | $ 1,725 |
Operating cash flows from finance leases | 38 | 1 | 68 | 2 |
Financing cash flows from finance leases | 13 | 25 | ||
Right-of-use-assets obtained in exchange for lease obligations: Operating leases | 2,073 | 125 | 2,424 | 12,252 |
Right-of-use-assets obtained in exchange for lease obligations: Finance leases | $ 53 | $ 277 | ||
Weighted average remaining lease term (years): Operating leases (Year) | 11 years | 11 years 73 days | 11 years | 11 years 73 days |
Weighted average remaining lease term (years): Finance lease (Year) | 4 years 146 days | 3 years 182 days | 4 years 146 days | 3 years 182 days |
Weighted average discount rate: Operating leases | 7.40% | 7.70% | 7.40% | 7.70% |
Weighted average discount rate: Finance leases | 6.90% | 4.00% | 6.90% | 4.00% |
Note N - Lease Liabilities - Fu
Note N - Lease Liabilities - Future Minimum Rental Commitments Under Noncancellable Leases (Details) $ in Thousands | Dec. 27, 2019USD ($) |
2020, Operating Leases | $ 1,553 |
2020, Finance Leases | 103 |
2021, Operating Leases | 2,598 |
2021, Finance Leases | 206 |
2022, Operating Leases | 2,096 |
2022, Finance Leases | 206 |
2023, Operating Leases | 1,965 |
2023, Finance Leases | 198 |
2024, Operating Leases | 1,792 |
2024, Finance Leases | 166 |
Thereafter, Operating Leases | 12,455 |
Thereafter, Finance Leases | 8 |
Total future lease payments, Operating Leases | 22,459 |
Total future lease payments, Finance Leases | 887 |
Less: Amount representing interest, Operating Leases | (7,270) |
Less: Amount representing interest, Finance Leases | (123) |
Present value of future payments, Operating Leases | 15,189 |
Present value of future payments, Finance Leases | $ 764 |
Note N - Lease Liabilities - _2
Note N - Lease Liabilities - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 27, 2019 | Jun. 30, 2019 |
Operating lease liabilities | $ 13,850 | $ 12,646 |
Property, Plant and Equipment, Net [Member] | ||
Operating lease right-of-use assets | 15,180 | 14,138 |
Finance lease right-of-use assets | 746 | 545 |
Accrued Liabilities [Member] | ||
Operating lease liabilities | 1,936 | 1,933 |
Finance lease liabilities | 167 | 104 |
Lease Obligation [Member] | ||
Operating lease liabilities | 13,253 | 12,197 |
Finance lease liabilities | $ 597 | $ 449 |
Note O - Derivative Financial_3
Note O - Derivative Financial Instruments (Details Textual) $ in Thousands | 6 Months Ended | |||||
Dec. 27, 2019USD ($) | Sep. 27, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 28, 2018USD ($) | Sep. 28, 2018USD ($) | Jun. 30, 2018USD ($) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 169,485 | $ 173,363 | $ 182,818 | $ 181,844 | $ 178,460 | $ 143,616 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 144 | |||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ (506) | $ (652) | $ (509) | |||
Interest Rate Swap [Member] | ||||||
Derivative, Number of Instruments Held, Total | 1 | |||||
Foreign Exchange Forward [Member] | ||||||
Derivative, Number of Instruments Held, Total | 0 | 0 |
Note O - Derivative Financial_4
Note O - Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Designated as Hedging Instrument [Member] - Interest Rate Swap [Member] - USD ($) $ in Thousands | Dec. 27, 2019 | Jun. 30, 2019 |
Accounts Payable and Accrued Liabilities [Member] | ||
Interest rate swap | $ 144 | $ 122 |
Other Noncurrent Liabilities [Member] | ||
Interest rate swap | $ 518 | $ 544 |
Note O - Derivative Financial_5
Note O - Derivative Financial Instruments - Impact of the Company’s Derivative Instruments on the Consolidated Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 27, 2019 | Sep. 27, 2019 | Dec. 28, 2018 | Dec. 27, 2019 | Dec. 28, 2018 | |
Interest rate swap | $ 146 | $ (143) | $ 3 | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||
Interest rate swap | 146 | 3 | |||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | |||||
Interest rate swap | $ 31 | $ 42 |