Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 29, 2023 | Feb. 02, 2024 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000100378 | |
Entity Registrant Name | TWIN DISC INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 29, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-7635 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0667110 | |
Entity Address, Address Line One | 222 East Erie Street, Suite 400 | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53202 | |
City Area Code | 262 | |
Local Phone Number | 638-4000 | |
Title of 12(b) Security | Common Stock (No Par Value) | |
Trading Symbol | TWIN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,995,627 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 29, 2023 | Sep. 29, 2023 | Jun. 30, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Jun. 30, 2022 |
Current assets: | ||||||
Cash | $ 21,021 | $ 13,263 | $ 13,528 | |||
Trade accounts receivable, net | 41,428 | 54,760 | 39,392 | |||
Inventories | 131,768 | 131,930 | 136,810 | |||
Assets held for sale | 2,968 | 2,968 | 2,968 | |||
Prepaid expenses | 10,157 | 8,459 | 10,871 | |||
Other | 9,235 | 8,326 | 7,228 | |||
Total current assets | 216,577 | 219,706 | 210,797 | |||
Property, plant and equipment, net | 40,334 | 38,650 | 39,683 | |||
Right-of-use assets operating leases | 12,017 | 13,133 | 12,807 | |||
Intangible assets, net | 11,146 | 12,637 | 11,798 | |||
Deferred income taxes | 2,371 | 2,244 | 2,403 | |||
Other assets | 2,745 | 2,811 | 2,766 | |||
Total assets | 285,190 | 289,181 | 280,254 | |||
Current liabilities: | ||||||
Current maturities of long-term debt | 2,000 | 2,010 | 2,000 | |||
Accounts payable | 32,611 | 36,499 | 28,906 | |||
Accrued liabilities | 62,929 | 61,586 | 55,939 | |||
Total current liabilities | 97,540 | 100,095 | 86,845 | |||
Long-term debt | 15,698 | 16,617 | 29,927 | |||
Lease obligations | 9,988 | 10,811 | 10,278 | |||
Accrued retirement benefits | 6,975 | 7,608 | 10,587 | |||
Deferred income taxes | 3,162 | 3,280 | 3,506 | |||
Other long-term liabilities | 5,917 | 5,253 | 5,346 | |||
Total liabilities | 139,280 | 143,664 | 146,489 | |||
Twin Disc shareholders' equity: | ||||||
Preferred shares authorized: 200,000; issued: none; no par value | 0 | 0 | 0 | |||
Common shares authorized: 30,000,000; issued: 14,632,802; no par value | 39,661 | 42,855 | 41,444 | |||
Retained earnings | 119,496 | 120,299 | 110,243 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,059) | (5,570) | (5,982) | |||
Equity before treasury stock | 155,098 | 157,584 | 145,705 | |||
Less treasury stock, at cost (639,006 and 814,734 shares, respectively) | 9,802 | 12,491 | 12,562 | |||
Total Twin Disc shareholders' equity | 145,296 | 145,093 | 133,143 | |||
Noncontrolling interest | 614 | 424 | 622 | |||
Total equity | 145,910 | $ 140,175 | 145,517 | 133,765 | $ 124,768 | $ 131,188 |
Total liabilities and equity | $ 285,190 | $ 289,181 | $ 280,254 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Dec. 29, 2023 | Jun. 30, 2023 | Dec. 30, 2022 |
Preferred Shares, Authorized (in shares) | 200,000 | 200,000 | 200,000 |
Preferred Shares, Issued (in shares) | 0 | 0 | 0 |
Preferred Shares, No Par Value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common shares, authorized (in shares) | 30,000,000 | 30,000,000 | 30,000,000 |
Common shares, shares issued (in shares) | 14,632,802 | 14,632,802 | 14,632,802 |
Common shares, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Treasury Stock, Common, Shares (in shares) | 639,006 | 814,734 | 819,398 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Net sales | $ 72,994 | $ 63,351 | $ 136,547 | $ 119,264 |
Gross profit | 20,656 | 17,023 | 37,292 | 30,320 |
Marketing, engineering and administrative expenses | 17,149 | 15,983 | 34,068 | 31,063 |
Restructuring expenses | 69 | 164 | 68 | 174 |
Other operating income | 0 | (4,150) | 0 | (4,150) |
Income from operations | 3,438 | 5,026 | 3,156 | 3,233 |
Interest expense | 392 | 594 | 786 | 1,160 |
Other expense (income), net | 449 | 182 | 310 | (164) |
Non-operating income (expense) | 841 | 776 | 1,096 | 996 |
Income before income taxes and noncontrolling interest | 2,597 | 4,250 | 2,061 | 2,237 |
Income tax expense | 1,662 | 2,489 | 2,208 | 1,801 |
Net income (loss) | 935 | 1,761 | (148) | 436 |
Less: Net earnings attributable to noncontrolling interest, net of tax | (5) | (15) | (95) | (112) |
Net income (loss) attributable to Twin Disc | $ 930 | $ 1,746 | $ (243) | $ 324 |
Dividends per share (in dollars per share) | $ 0.04 | $ 0 | $ 0.04 | $ 0 |
Income (loss) per share data: | ||||
Basic income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | 0.07 | 0.13 | (0.02) | 0.02 |
Diluted income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.07 | $ 0.13 | $ (0.02) | $ 0.02 |
Weighted average shares outstanding data: | ||||
Basic shares outstanding (in shares) | 13,718 | 13,460 | 13,629 | 13,434 |
Diluted shares outstanding (in shares) | 13,923 | 13,699 | 13,629 | 13,649 |
Comprehensive income (loss) | ||||
Net income (loss) | $ 935 | $ 1,761 | $ (148) | $ 436 |
Benefit plan adjustments, net of income taxes of $13, $13, $8 and $4, respectively | (108) | (1,122) | (279) | (1,211) |
Translation adjustment during the quarter | 5,190 | 8,392 | 2,154 | 2,102 |
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (485) | (595) | (269) | 198 |
Comprehensive income | 5,532 | 8,436 | 1,458 | 1,525 |
Less: Comprehensive income attributable to noncontrolling interest | 40 | 74 | 190 | 210 |
Comprehensive income attributable to Twin Disc | 5,492 | 8,362 | 1,268 | 1,315 |
Service Excluding Boat Management System Product Line [Member] | ||||
Cost of goods sold | 52,338 | 46,328 | 96,156 | 88,944 |
Boat Management System Product Line [Member] | ||||
Cost of goods sold | $ 0 | $ 0 | $ 3,099 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Benefit plan adjustments, income taxes | $ 13 | $ 13 | $ 8 | $ 4 |
Unrealized loss on cash flow hedge, income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (148) | $ 436 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,023 | 4,266 |
Gain on sale of assets | (42) | (4,203) |
Provision for deferred income taxes | 280 | (1,105) |
Stock compensation expense and other non-cash changes, net | 1,413 | 1,565 |
Net change in operating assets and liabilities | 6,422 | (927) |
Net cash provided by operating activities | 16,047 | 32 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property, plant, and equipment | (5,419) | (4,734) |
Proceeds from sale of fixed assets | 0 | 7,152 |
Other, net | (252) | 385 |
Net cash (used) provided by investing activities | (5,671) | 2,803 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under revolving loan arrangements | 50,632 | 42,898 |
Repayments of revolving loan arrangements | (50,632) | (46,628) |
Repayments of other long-term debt | (1,010) | (707) |
Dividends paid to shareholders | (560) | 0 |
Payments of finance lease obligations | (471) | (132) |
Payments of withholding taxes on stock compensation | (1,772) | (463) |
Net cash used by financing activities | (3,813) | (5,032) |
Effect of exchange rate changes on cash | 1,195 | 3,204 |
Net change in cash | 7,758 | 1,007 |
Cash: | ||
Beginning of period | 13,263 | 12,521 |
End of period | 21,021 | 13,528 |
Boat Management System Product Line [Member] | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Loss on sale of boat management product line and related inventory | $ 3,099 | $ 0 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | TWIN DISC, INCORPORATED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) 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 - June 30, 2023. not The Company's reporting period ends on the last Friday of the quarterly calendar period. The Company's fiscal year ends on June 30, June 30 Change in Accounting Method During the fourth 2023, not 10% second 20% fourth 2023, 2023, 10 Under the new accounting method, actuarial gains and losses are recognized in net periodic benefit cost through a modified mark-to-market (expense) benefit upon annual remeasurement in the fourth not 20% 10% 20% See Notes G, K, M and P for further information regarding the impact of the Accounting change on the Company’s current and prior consolidated financial statements. Recently Adopted Accounting Standards In March 2020 January 2021, 2020 04 2021 01, March 12, 2020, may December 31, 2022. not In June 2016, 2016 13 2018 19, 2019 04, 2019 05 2019 10 326 326 December 15, 2019, December 15, 2022 ( 2024 326 not Special Note Regarding Smaller Reporting Company Status Under SEC Release 33 10513; 34 83550, |
Note B - Inventories
Note B - Inventories | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | B. Inventories The major classes of inventories were as follows: December 29, 2023 June 30, 2023 Inventories: Finished parts $ 65,089 $ 66,956 Work in process 22,239 23,374 Raw materials 44,440 41,600 $ 131,768 $ 131,930 In the first 2024, one not second 2024. |
Note C - Warranty
Note C - Warranty | 6 Months Ended |
Dec. 29, 2023 | |
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 29, 2023 December 30, 2022: For the Quarter Ended For the Two Quarters Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Reserve balance, beginning of period $ 4,160 $ 3,804 $ 3,476 $ 3,329 Current period expense and adjustments 1,208 770 2,724 1,678 Payments or credits to customers (898 ) (503 ) (1,718 ) (869 ) Translation 18 74 6 7 Reserve balance, end of period $ 4,488 $ 4,145 $ 4,488 $ 4,145 The current portion of the warranty accrual ($3,549 and $3,552 as of December 29, 2023 December 30, 2022, December 29, 2023 December 30, 2022, |
Note D - Contingencies
Note D - Contingencies | 6 Months Ended |
Dec. 29, 2023 | |
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. 29, 2023 | |
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 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Net sales Manufacturing segment sales $ 58,368 $ 56,678 $ 112,906 $ 105,675 Distribution segment sales 37,242 25,584 70,095 49,892 Inter/Intra segment elimination – manufacturing (18,795 ) (14,198 ) (38,979 ) (27,842 ) Inter/Intra segment elimination – distribution (3,821 ) (4,713 ) (7,475 ) (8,461 ) $ 72,994 $ 63,351 $ 136,547 $ 119,264 Net income (loss) attributable to Twin Disc Manufacturing segment net income $ 2,078 $ 4,439 $ 3,636 $ 6,841 Distribution segment net income 3,173 1,403 4,179 2,359 Corporate and eliminations (4,321 ) (4,096 ) (8,058 ) (8,876 ) $ 930 $ 1,746 $ (243 ) $ 324 Assets December 29, 2023 June 30, 2023 Manufacturing segment assets $ 380,283 $ 381,668 Distribution segment assets 70,391 69,213 Corporate assets and elimination of intercompany assets (165,484 ) (161,700 ) $ 285,190 $ 289,181 Disaggregated revenue: The following table presents details deemed most relevant to the users of the financial statements for the quarters ended December 29, 2023 December 30, 2022. Net sales by product group for the quarter ended December 29, 2023 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 5,704 $ 1,557 $ (730 ) $ 6,531 Land-based transmissions 15,003 7,953 (7,093 ) $ 15,863 Marine and propulsion systems 37,661 24,058 (14,773 ) $ 46,946 Other - 3,674 (20 ) $ 3,654 Total $ 58,368 $ 37,242 $ (22,616 ) $ 72,994 Net sales by product group for the quarter ended December 30, 2022 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 6,963 $ 1,726 $ (1,177 ) $ 7,512 Land-based transmissions 15,256 3,445 (4,030 ) $ 14,671 Marine and propulsion systems 34,262 15,427 (13,223 ) $ 36,466 Other 197 4,986 (481 ) $ 4,702 Total $ 56,678 $ 25,584 $ (18,911 ) $ 63,351 Net Sales by product group for the two December 29, 2023 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 10,994 $ 2,586 $ (1,364 ) $ 12,216 Land-based transmissions 29,684 20,623 (15,867 ) $ 34,440 Marine and propulsion systems 72,228 40,378 (29,197 ) $ 83,409 Other (0 ) 6,508 (26 ) $ 6,482 Total $ 112,906 $ 70,095 $ (46,454 ) $ 136,547 Net Sales by product group for the two December 30, 2022 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 13,656 $ 2,774 $ (1,886 ) $ 14,544 Land-based transmissions 31,543 8,051 (8,985 ) $ 30,609 Marine and propulsion systems 60,077 29,971 (24,246 ) $ 65,802 Other 399 9,096 (1,186 ) $ 8,309 Total $ 105,675 $ 49,892 $ (36,303 ) $ 119,264 |
Note F - Stock-based Compensati
Note F - Stock-based Compensation | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | F. Stock-Based Compensation Performance Stock Awards ( PSA ) During the first two 2024 2023, 2024 three June 30, 2026. The fiscal 2023 three June 30, 2025. There were 335.2 and 438.9 unvested PSAs outstanding at December 29, 2023 December 30, 2022, December 29, 2023 December 30, 2022, two December 29, 2023 December 30, 2022, December 29, 2023 December 29, 2023, 2024 2023 December 29, 2023 December 30, 2022 Performance Stock Unit Awards ( PSUA ) The PSUAs entitle an individual to shares of common stock of the Company or cash in lieu of shares of Company common stock if specific terms and conditions or restrictions are met through a specified date. During the first two 2024 2023, 2024 three June 30, 2026. There were 10.5 and 0 unvested PSUAs outstanding at December 29, 2023 December 30, 2022, December 29, 2023 December 30, 2022, two December 29, 2023 December 30, 2022, December 29, 2023 December 29, 2023, 2024 December 29, 2023 December 30, 2022 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 two 2024 2023, December 29, 2023 December 30, 2022, two December 29, 2023 December 30, 2022, December 29, 2023 December 30, 2022, two December 29, 2023 December 30, 2022, December 29, 2023 December 30, 2022 December 29, 2023, three Restricted Stock Unit Awards ( RSU ) The RSUs entitle an individual to shares of common stock of the Company or cash in lieu of shares of Company common stock if specific terms and conditions or restrictions are met through a specified date, generally three first two 2024 2023, December 29, 2023 December 30, 2022, December 29, 2023 December 30, 2022, two December 29, 2023 December 30, 2022, December 29, 2023 December 30, 2022 December 29, 2023 December 29, 2023, three |
Note G - Pension and Other Post
Note G - Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Retirement Benefits [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 As discussed in Note A, during the fourth 2023, fourth The components of the net periodic benefit cost for the defined benefit pension plans and the other postretirement benefit plan are as follows: For the Quarter Ended For the Two Quarters Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Pension Benefits: Service cost $ 94 $ 102 $ 188 $ 203 Prior service cost - 8 - 17 Interest cost 896 868 1,792 1,736 Expected return on plan assets (1,048 ) (1,060 ) (2,096 ) (2,120 ) Amortization of transition obligation 10 9 19 18 Amortization of prior service cost 9 9 17 18 Amortization of actuarial net loss 16 617 31 1,235 Net periodic benefit (gain) cost $ (23 ) $ 553 $ (49 ) $ 1,107 Postretirement Benefits: Service cost $ 2 $ 2 $ 4 $ 5 Interest cost 48 53 95 106 Amortization of prior service cost (22 ) (69 ) (44 ) (137 ) Amortization of actuarial net loss (155 ) (10 ) (310 ) (19 ) Net periodic benefit gain $ (127 ) $ (24 ) $ (255 ) $ (45 ) The service cost component is included in cost of goods sold and marketing, engineering, and administrative expenses. All other components of net periodic benefit cost are included in other expense (income), net. The Company expects to contribute approximately $675 to its pension plans in fiscal 2024. December 29, 2023, The Company has reclassified ($108) (net of $13 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended December 29, 2023, December 30, 2022. two December 29, 2023, two December 30, 2022. |
Note H - Income Taxes
Note H - Income Taxes | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | H. Income Taxes 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 (AETR). 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. To calculate its AETR, an entity must estimate its ordinary income or loss and the related tax expense or benefit for its full fiscal year. In situations in which an entity is in a loss position and recognizes a full valuation allowance, the guidance in ASC 740 270 25 9 may 740 10 For the six December 29, 2023 December 30, 2022 no The Company maintains valuation allowances when it is more likely than not not no The Company has approximately $834 of unrecognized tax benefits, including interest and penalties, as of December 29, 2023, no two December 29, 2023. 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 2018 2023 2018. 2024. |
Note I - Intangible Assets
Note I - Intangible Assets | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | I. Intangible Assets As of December 29, 2023, 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, 2023 $ 31,925 $ (19,288 ) $ 12,637 $ 6,553 $ 2,422 $ 668 $ 2,994 Addition 73 - 73 - - - 73 Reduction (631 ) 631 - - - - - Amortization - (1,636 ) (1,636 ) (622 ) (601 ) (39 ) (374 ) Translation adjustment 72 - 72 62 (173 ) 195 (12 ) Balance at December 29, 2023 $ 31,439 $ (20,293 ) $ 11,146 $ 5,993 $ 1,648 $ 824 $ 2,681 Other intangibles consist mainly of computer software. 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 5 Intangible amortization expense was $817 and $704 for the quarters ended December 29, 2023, December 30, 2022, two December 29, 2023, December 30, 2022, 2024 five Fiscal Year 2024 $ 1,827 2025 3,316 2026 2,310 2027 1,553 2028 1,405 2029 735 Thereafter 0 |
Note J - Long Term Debt
Note J - Long Term Debt | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | J. Long-term Debt Long-term debt at December 29, 2023 June 30, 2023 December 29, 2023 June 30, 2023 Credit Agreement Debt Revolving loans (expire June 2025) $ 7,175 $ 7,094 Term loan (due March 2026) 10,500 11,500 Other 23 33 Subtotal 17,698 18,627 Less: current maturities (2,000 ) (2,010 ) Total long-term debt $ 15,698 $ 16,617 Credit Agreement Debt: June 29, 2018, “2016 not may, not March 4, 2026, may not June 30, 2025. Under the Credit Agreement as amended, interest rates are based on either the secured overnight financing rate (“SOFR”) or the euro interbank offered rate (the “EURIBO Rate”). Loans are designated either as “SOFR Loans,” which accrue interest at an Adjusted Term SOFR plus an Applicable Margin, or “Eurodollar Loans,” which accrue interest at the EURIBO Rate plus an Applicable Margin. Amounts drawn on a Letter of Credit that are not The Credit Agreement, as amended, requires the Company to meet certain financial covenants. Specifically, the Company’s Total Funded Debt to EBITDA ratio may not 1.00, may not 1.00. may not 50% June 30, 2023. Borrowings under the Credit Agreement are secured by substantially all of the Company’s personal property, including accounts receivable, inventory, machinery and equipment, and intellectual property. The Company has also pledged 100% of its equity interests in certain domestic subsidiaries and 65% of its equity interests in certain foreign subsidiaries. The Company also entered into a Collateral Assignment of Rights under Purchase Agreement for its acquisition of Veth Propulsion. To effect these security interests, the Company entered into various amendment and assignment agreements that consent to the assignment of certain agreements previously entered into between the Company and the Bank of Montreal in connection with the 2016 not The Company has also entered into a Deposit Account Control Agreement with the Bank, reflecting the Bank’s security interest in deposit accounts the Company maintains with the Bank. The Bank may not Upon the occurrence of an Event of Default, BMO may 1 2 3 may three The Company remains in compliance with its liquidity and other covenants. As of December 29, 2023, Other: three five During the quarter ended December 29, 2023, As of December 29, 2023, The Company’s borrowings described above approximate fair value at December 29, 2023 June 30, 2023. 2 The Company is party to an interest rate swap arrangement with Bank of Montreal, with an initial notional amount of $20,000 and a maturity date of March 4, 2026 December 29, 2023, 815, During the fourth 2021, |
Note K - Shareholders' Equity
Note K - Shareholders' Equity | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Equity [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 shares as of December 29, 2023 not December 29, 2023 December 30, 2022. As of July 1, 2022, See Notes A, G, M, and P for further information regarding the impact of the Accounting change on the Company’s prior year consolidated financial statements. The following is a reconciliation of the Company’s equity balances for the first two 2024 2023: Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Loss Stock Interest Equity Balance, June 30, 2023 $ 42,855 $ 120,299 $ (5,570 ) $ (12,491 ) $ 424 $ 145,517 Net (loss) income (1,173 ) 90 (1,083 ) Translation adjustments (3,096 ) 60 (3,036 ) Benefit plan adjustments, net of tax (171 ) (171 ) Unrealized gain on hedges, net of tax 216 216 Compensation expense 495 495 Shares (acquired) issued, net (3,911 ) 2,148 (1,763 ) Balance, September 29, 2023 39,439 119,126 (8,621 ) (10,343 ) 574 140,175 Net income 930 5 935 Dividends paid to shareholders (560 ) (560 ) Translation adjustments 5,155 35 5,190 Benefit plan adjustments, net of tax (108 ) (108 ) Unrealized loss on hedges, net of tax (485 ) (485 ) Compensation expense 772 772 Shares (acquired) issued, net (550 ) 541 (9 ) Balance, December 29, 2023 $ 39,661 $ 119,496 $ (4,059 ) $ (9,802 ) $ 614 $ 145,910 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Loss Stock Interest Equity Balance, June 30, 2022 $ 42,551 $ 109,919 $ (6,974 ) $ (14,720 ) $ 412 $ 131,188 Net (loss) income (1,422 ) 98 (1,324 ) Translation adjustments (6,328 ) 38 (6,290 ) Benefit plan adjustments, net of tax (89 ) (89 ) Unrealized gain on hedges, net of tax 793 793 Compensation expense 658 658 Shares (acquired) issued, net (1,924 ) 1,756 (168 ) Balance, September 30, 2022 41,285 108,497 (12,598 ) (12,964 ) 548 124,768 Net income 1,746 15 1,761 Translation adjustments 8,333 59 8,392 Benefit plan adjustments, net of tax (1,122 ) (1,122 ) Unrealized loss on hedges, net of tax (595 ) (595 ) Compensation expense 856 856 Shares (acquired) issued, net (697 ) 402 (295 ) Balance, December 30, 2022 $ 41,444 $ 110,243 $ (5,982 ) $ (12,562 ) $ 622 $ 133,765 Reconciliations for the changes in accumulated other comprehensive loss, net of tax, by component for the quarters ended December 29, 2023 December 30, 2022 Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance, June 30, 2023 $ (1,582 ) $ (5,948 ) $ 688 $ 1,272 Translation adjustment during the quarter (3,096 ) - - - Amounts reclassified from accumulated other comprehensive loss - (171 ) (6 ) 222 Net current period other comprehensive (loss) income (3,096 ) (171 ) (6 ) 222 Balance, September 29, 2023 (4,678 ) (6,119 ) 682 1,494 Translation adjustment during the quarter 5,155 Amounts reclassified from accumulated other comprehensive loss - (108 ) (183 ) (302 ) Net current period other comprehensive income (loss) 5,155 (108 ) (183 ) (302 ) Balance at December 29, 2023 $ 477 $ (6,227 ) $ 499 $ 1,192 Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance, June 30, 2022 $ (2,266 ) $ (6,614 ) $ 356 $ 1,550 Translation adjustment during the quarter (6,328 ) - - - Amounts reclassified from accumulated other comprehensive loss - (89 ) 657 136 Net current period other comprehensive (loss) income (6,328 ) (89 ) 657 136 Balance, September 30, 2022 (8,594 ) (6,703 ) 1,013 1,686 Translation adjustment during the quarter 8,333 - - - Amounts reclassified from accumulated other comprehensive loss (7 ) (10 ) (585 ) Plan merger adjustment - (1,115 ) - - Net current period other comprehensive income (loss) 8,333 (1,122 ) (10 ) (585 ) Balance at December 30, 2022 $ (261 ) $ (7,825 ) $ 1,003 $ 1,101 Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended December 29, 2023 Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 29, 2023 December 29, 2023 Changes in benefit plan items Actuarial losses $ (91 ) (a) $ (263 ) (a) Transition asset and prior service benefit (4 ) (a) (8 ) (a) Total amortization (95 ) (271 ) Income tax expense (13 ) (8 ) Total reclassification net of tax $ (108 ) $ (279 ) Reconciliation for the changes in benefit plan adjustments, net of tax for the quarter ended December 30, 2022 Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 30, 2022 December 30, 2022 Changes in benefit plan items Actuarial losses $ 664 (a) $ 1,223 (a) Transition asset and prior service benefit (51 ) (a) (101 ) (a) Mark-to-market adjustment (607 ) (1,214 ) Plan merger remeasurement adjustment (1,115 ) (1,115 ) Total amortization (1,109 ) (1,207 ) Income taxes (13 ) (4 ) Total reclassification net of tax $ (1,122 ) $ (1,211 ) (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 - Assets Held for Sale
Note L - Assets Held for Sale | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Assets Held-for-Sale [Text Block] | L. Assets Held for Sale To improve its fixed cost structure and monetize some of its under-utilized assets, the Company commenced the active marketing of several of its real estate properties. Such actions required the Company to reclassify these assets from Property, Plant and Equipment to Assets Held for Sale, at fair value less costs to sell, or net book value, whichever is lower. Fair value was determined using real estate broker estimates and would be classified as Level 3 fourth 2021. In the first 2023, 3 In the second 2023, In the first 2024, $2.1 October 30, 2023. |
Note M - Earnings Per Share
Note M - Earnings Per Share | 6 Months Ended |
Dec. 29, 2023 | |
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 As discussed in Note A, during the fourth 2023, fourth The components of basic and diluted earnings per share were as follows: For the Quarter Ended For the Two Quarters Ended As Adjusted As Adjusted December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Basic: Net income (loss) $ 935 $ 1,761 $ (148 ) $ 436 Less: Net earnings attributable to noncontrolling interest (5 ) (15 ) (95 ) (112 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income (loss) attributable to Twin Disc 930 1,746 (243 ) 324 Weighted average shares outstanding - basic 13,718 13,460 13,629 13,434 Basic Loss Per Share: Net earnings (loss) per share - basic $ 0.07 $ 0.13 $ (0.02 ) $ 0.02 Diluted: Net income (loss) $ 935 $ 1,761 $ (148 ) $ 436 Less: Net earnings attributable to noncontrolling interest (5 ) (15 ) (95 ) (112 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income (loss) attributable to Twin Disc 930 1,746 (243 ) 324 Weighted average shares outstanding - basic 13,718 13,460 13,629 13,434 Effect of dilutive stock awards 205 239 - 215 Weighted average shares outstanding - diluted 13,923 13,699 13,629 13,649 Diluted Income (Loss) Per Share: Net earnings (loss) per share - diluted $ 0.07 $ 0.13 $ (0.02 ) $ 0.02 The following potential common shares were excluded from diluted EPS for the two quarters ended December 29, 2023 |
Note N - Lease Liabilities
Note N - Lease Liabilities | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [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 following table provides a summary of leases recorded on the condensed consolidated balance sheet. Balance Sheet Location December 29, 2023 June 30, 2023 Lease Assets Operating lease right-of-use assets Right-of-use assets operating leases $ 12,017 $ 13,133 Finance lease right-of-use assets Property, plant and equipment, net 4,860 4,427 Lease Liabilities Operating lease liabilities Accrued liabilities $ 2,064 $ 2,343 Operating lease liabilities Lease obligations 9,988 10,811 Finance lease liabilities Accrued liabilities 642 643 Finance lease liabilities Other long-term liabilities 4,532 4,314 The components of lease expense were as follows: For the Quarter Ended For the Two Quarters Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Finance lease cost: Amortization of right-of-use assets $ 175 $ 156 $ 397 $ 311 Interest on lease liabilities 77 67 151 132 Operating lease cost 882 686 1,775 1,397 Short-term lease cost 6 (10 ) 9 3 Variable lease cost 99 67 199 108 Total lease cost 1,239 966 2,531 1,951 Less: Sublease income (20 ) (18 ) (41 ) (35 ) Net lease cost $ 1,219 $ 948 $ 2,490 $ 1,916 Other information related to leases was as follows: For the Quarter Ended For the Two Quarters Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 934 $ 777 $ 1,871 $ 1,473 Operating cash flows from finance leases 76 215 149 420 Financing cash flows from finance leases 207 67 471 132 Right-of-use-assets obtained in exchange for lease obligations: Operating leases 188 990 188 1,518 Finance leases 123 269 657 320 Weighted average remaining lease term (years): Operating leases 8.1 8.3 Finance lease 9.5 10.8 Weighted average discount rate: Operating leases 7.6 % 7.2 % Finance leases 5.8 % 5.2 % Approximate future minimum rental commitments under non-cancellable leases as of December 29, 2023 Operating Leases Finance Leases 2024 $ 1,575 $ 492 2025 2,300 836 2026 1,810 788 2027 1,697 735 2028 1,652 657 2029 1,637 482 Thereafter 5,752 2,646 Total future lease payments 16,423 6,636 Less: Amount representing interest (4,371 ) (1,462 ) Present value of future payments $ 12,052 $ 5,174 |
Note O - Derivative Financial I
Note O - Derivative Financial Instruments | 6 Months Ended |
Dec. 29, 2023 | |
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 currency exchange rates. The Company does not no The Company reports all derivative instruments on its condensed 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 outstanding interest rate swap contract as of December 29, 2023, 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 SOFR-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 condensed consolidated statements of operations and comprehensive income (loss). 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 twelve Net unrealized after-tax gains related to cash flow hedging activities that were included in accumulated other comprehensive loss were ($499) and ($688) as of December 29, 2023, June 30, 2023, The Company estimates that $218 of net unrealized losses related to cash flow hedging activities included in accumulated other comprehensive loss will be reclassified into earnings within the next twelve Derivatives Designated as Net Investment Hedges The Company is exposed to foreign currency exchange rate risk related to its investment in net assets in foreign countries. During the fourth 2021, €13,000, December 29, 2023 June 30, 2023, 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 29, 2023 June 30, 2023 Derivative designated as hedge: Interest rate swap Other current assets $ 209 $ 292 Interest rate swap Other noncurrent assets 80 187 The impact of the Company’s derivative instruments on the condensed consolidated statements of operations and comprehensive income (loss) for the quarters ended December 29, 2023 December 30, 2022, Statement of Comprehensive For the Quarter Ended For the Two Quarters Ended Income (Loss) Location December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Derivative designated as hedge: Interest rate swap Interest expense $ 67 $ 79 $ 138 $ 162 Interest rate swap Unrealized gain (loss) on hedges 183 10 189 (339 ) Net investment hedge Unrealized (loss) gain on hedges (302 ) 585 (81 ) 141 |
Note P - Impact of Accounting M
Note P - Impact of Accounting Method Change | 6 Months Ended |
Dec. 29, 2023 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | P. IMPACT OF ACCOUNTING METHOD CHANGE The following tables summarize the effects of the Accounting change described in Note A on the Company’s condensed consolidated statement of operations and comprehensive loss, statement of cash flows and statement of changes in equity for the quarter ended and the two December 30, 2022 December 30, 2022. CONDENSED CONSOLIDATED STATEMENT OF OPERATION AND COMPREHENSIVE INCOME (LOSS) For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 30, 2022 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method Net sales $ 63,351 $ - $ 63,351 $ 119,264 $ - $ 119,264 Cost of goods sold 46,328 - 46,328 88,944 - 88,944 Gross profit 17,023 - 17,023 30,320 - 30,320 Marketing, engineering and administrative expenses 15,983 - 15,983 31,063 - 31,063 Restructuring expenses 164 - 164 174 - 174 Other operating income (4,150 ) - (4,150 ) (4,150 ) - (4,150 ) Income from operations 5,026 - 5,026 3,233 - 3,233 Other expense (income): Interest expense 594 - 594 1,160 - 1,160 Other expense (income), net 789 (607 ) 182 1,050 (1,214 ) (164 ) 1,383 (607 ) 776 2,210 (1,214 ) 996 Income before income taxes and noncontrolling interest 3,643 607 4,250 1,023 1,214 2,237 Income tax expense 2,489 - 2,489 1,801 - 1,801 Net income (loss) 1,154 607 1,761 (778 ) 1,214 436 Less: Net earnings attributable to noncontrolling interest, net of tax (15 ) - (15 ) (112 ) - (112 ) Net income (loss) attributable to Twin Disc $ 1,139 $ 607 $ 1,746 $ (890 ) $ 1,214 $ 324 Income (loss) per share data: Basic income (los)s per share attributable to Twin Disc common shareholders $ 0.08 $ 0.05 $ 0.13 $ (0.07 ) $ 0.09 $ 0.02 Diluted income (loss) per share attributable to Twin Disc common shareholders $ 0.08 $ 0.05 $ 0.13 $ (0.07 ) $ 0.09 $ 0.02 Weighted average shares outstanding data: Basic shares outstanding 13,460 - 13,460 13,434 - 13,434 Diluted shares outstanding 13,699 - 13,699 13,434 - 13,434 Comprehensive income (loss) Net income (loss) $ 1,154 $ 607 $ 1,761 $ (778 ) $ 1,214 $ 436 Benefit plan adjustments, net of income taxes of $ 1 3 13 4 (515 ) (607 ) (1,122 ) 3 (1,214 ) (1,211 ) Foreign currency translation adjustment 8,392 - 8,392 2,005 - 2,005 Unrealized (loss) gain on hedges, net of income taxes of $ 0 0 (595 ) - (595 ) 198 - 198 Comprehensive income 8,436 - 8,436 1,428 - 1,428 Less: Comprehensive income attributable to noncontrolling interest 74 - 74 210 - 210 Comprehensive income attributable to Twin $ 8,362 $ - $ 8,362 $ 1,218 $ - $ 1,218 CONDENSED ONSOLIDATED CONDENSED BALANCE SHEET December 30, 2022 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method ASSETS Current assets: Cash $ 13,528 $ - $ 13,528 Trade accounts receivable, net 39,392 - 39,392 Inventories 136,810 - 136,810 Assets held for sale 2,968 - 2,968 Prepaid expenses 10,871 - 10,871 Other 7,228 - 7,228 Total current assets 210,797 - 210,797 Property, plant and equipment, net 39,683 - 39,683 Right-of-use assets operating leases 12,807 - 12,807 Intangible assets, net 11,798 - 11,798 Deferred income taxes 2,403 - 2,403 Other assets 2,766 - 2,766 Total assets $ 280,254 $ - $ 280,254 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 2,000 $ - $ 2,000 Accounts payable 28,906 - 28,906 Accrued liabilities 55,939 - 55,939 Total current liabilities 86,845 - 86,845 Long-term debt 29,927 - 29,927 Lease obligations 10,278 - 10,278 Accrued retirement benefits 10,587 - 10,587 Deferred income taxes 3,506 - 3,506 Other long-term liabilities 5,346 - 5,346 Total liabilities 146,489 - 146,489 Twin Disc shareholders' equity: Preferred shares authorized: 200,000 none no - - - Common shares authorized: 30,000,000 14,632,802 no 41,444 - 41,444 Retained earnings 134,141 (23,898 ) 110,243 Accumulated other comprehensive loss (29,880 ) 23,898 (5,982 ) 145,705 - 145,705 Less treasury stock, at cost ( 819,398 12,562 - 12,562 Total Twin Disc shareholders' equity 133,143 - 133,143 Noncontrolling interest 622 - 622 Total equity 133,765 - 133,765 Total liabilities and equity $ 280,254 $ - $ 280,254 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS December 30, 2022 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ (778 ) $ 1,214 $ 436 Adjustments to reconcile net (loss) income to net cash provided by activities: Depreciation and amortization 4,266 - 4,266 Gain on sale of assets (4,203 ) - (4,203 ) Provision for deferred income taxes (1,105 ) - (1,105 ) Stock compensation expense 1,565 - 1,565 Net change in operating assets and liabilities 287 (1,214 ) (927 ) Net cash provided by operating activities 32 - 32 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property, plant, and equipment (4,734 ) - (4,734 ) Proceeds from sale of fixed assets 7,152 - 7,152 Proceeds on note receivable - - - Other, net 385 - 385 Net cash provided by investing activities 2,803 - 2,803 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings under revolving loan arrangements 42,898 - 42,898 Repayments of revolving loan arrangements (46,628 ) - (46,628 ) Repayments of other long-term debt (839 ) 132 (707 ) Payments of finance lease obligations (132 ) (132 ) Payments of withholding taxes on stock compensation (463 ) - (463 ) Net cash used by financing activities (5,032 ) - (5,032 ) Effect of exchange rate changes on cash 3,204 - 3,204 Net change in cash 1,007 - 1,007 Cash: Beginning of period 12,521 - 12,521 End of period $ 13,528 $ - $ 13,528 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY December 30, 2022 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method Retained earnings Balance at June 30, 2022 135,031 (25,112 ) 109,919 Net (loss) income attributable to Twin Disc (890 ) 1,214 324 Balance at December 30, 2022 $ 134,141 $ (23,898 ) $ 110,243 Accumulated other comprehensive income (loss) Balance at June 30, 2022 (32,086 ) 25,112 (6,974 ) Translation adjustments 2,005 - 2,005 Benefit plan adjustments, net of tax 3 (1,214 ) (1,211 ) Unrealized gain on hedges, net of tax 198 - 198 Balance at December 30, 2022 $ (29,880 ) $ 23,898 $ (5,982 ) |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Change in Accounting Method During the fourth 2023, not 10% second 20% fourth 2023, 2023, 10 Under the new accounting method, actuarial gains and losses are recognized in net periodic benefit cost through a modified mark-to-market (expense) benefit upon annual remeasurement in the fourth not 20% 10% 20% See Notes G, K, M and P for further information regarding the impact of the Accounting change on the Company’s current and prior consolidated financial statements. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards In March 2020 January 2021, 2020 04 2021 01, March 12, 2020, may December 31, 2022. not In June 2016, 2016 13 2018 19, 2019 04, 2019 05 2019 10 326 326 December 15, 2019, December 15, 2022 ( 2024 326 not |
Reporting Status [Policy Text Block] | 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. 29, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 29, 2023 June 30, 2023 Inventories: Finished parts $ 65,089 $ 66,956 Work in process 22,239 23,374 Raw materials 44,440 41,600 $ 131,768 $ 131,930 |
Note C - Warranty (Tables)
Note C - Warranty (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Reserve balance, beginning of period $ 4,160 $ 3,804 $ 3,476 $ 3,329 Current period expense and adjustments 1,208 770 2,724 1,678 Payments or credits to customers (898 ) (503 ) (1,718 ) (869 ) Translation 18 74 6 7 Reserve balance, end of period $ 4,488 $ 4,145 $ 4,488 $ 4,145 |
Note E - Business Segments (Tab
Note E - Business Segments (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Net sales Manufacturing segment sales $ 58,368 $ 56,678 $ 112,906 $ 105,675 Distribution segment sales 37,242 25,584 70,095 49,892 Inter/Intra segment elimination – manufacturing (18,795 ) (14,198 ) (38,979 ) (27,842 ) Inter/Intra segment elimination – distribution (3,821 ) (4,713 ) (7,475 ) (8,461 ) $ 72,994 $ 63,351 $ 136,547 $ 119,264 Net income (loss) attributable to Twin Disc Manufacturing segment net income $ 2,078 $ 4,439 $ 3,636 $ 6,841 Distribution segment net income 3,173 1,403 4,179 2,359 Corporate and eliminations (4,321 ) (4,096 ) (8,058 ) (8,876 ) $ 930 $ 1,746 $ (243 ) $ 324 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Assets December 29, 2023 June 30, 2023 Manufacturing segment assets $ 380,283 $ 381,668 Distribution segment assets 70,391 69,213 Corporate assets and elimination of intercompany assets (165,484 ) (161,700 ) $ 285,190 $ 289,181 |
Revenue from External Customers by Products and Services [Table Text Block] | Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 5,704 $ 1,557 $ (730 ) $ 6,531 Land-based transmissions 15,003 7,953 (7,093 ) $ 15,863 Marine and propulsion systems 37,661 24,058 (14,773 ) $ 46,946 Other - 3,674 (20 ) $ 3,654 Total $ 58,368 $ 37,242 $ (22,616 ) $ 72,994 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 6,963 $ 1,726 $ (1,177 ) $ 7,512 Land-based transmissions 15,256 3,445 (4,030 ) $ 14,671 Marine and propulsion systems 34,262 15,427 (13,223 ) $ 36,466 Other 197 4,986 (481 ) $ 4,702 Total $ 56,678 $ 25,584 $ (18,911 ) $ 63,351 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 10,994 $ 2,586 $ (1,364 ) $ 12,216 Land-based transmissions 29,684 20,623 (15,867 ) $ 34,440 Marine and propulsion systems 72,228 40,378 (29,197 ) $ 83,409 Other (0 ) 6,508 (26 ) $ 6,482 Total $ 112,906 $ 70,095 $ (46,454 ) $ 136,547 Elimination of Manufacturing Distribution Intercompany Sales Total Industrial $ 13,656 $ 2,774 $ (1,886 ) $ 14,544 Land-based transmissions 31,543 8,051 (8,985 ) $ 30,609 Marine and propulsion systems 60,077 29,971 (24,246 ) $ 65,802 Other 399 9,096 (1,186 ) $ 8,309 Total $ 105,675 $ 49,892 $ (36,303 ) $ 119,264 |
Note G - Pension and Other Po_2
Note G - Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Pension Benefits: Service cost $ 94 $ 102 $ 188 $ 203 Prior service cost - 8 - 17 Interest cost 896 868 1,792 1,736 Expected return on plan assets (1,048 ) (1,060 ) (2,096 ) (2,120 ) Amortization of transition obligation 10 9 19 18 Amortization of prior service cost 9 9 17 18 Amortization of actuarial net loss 16 617 31 1,235 Net periodic benefit (gain) cost $ (23 ) $ 553 $ (49 ) $ 1,107 Postretirement Benefits: Service cost $ 2 $ 2 $ 4 $ 5 Interest cost 48 53 95 106 Amortization of prior service cost (22 ) (69 ) (44 ) (137 ) Amortization of actuarial net loss (155 ) (10 ) (310 ) (19 ) Net periodic benefit gain $ (127 ) $ (24 ) $ (255 ) $ (45 ) |
Note I - Intangible Assets (Tab
Note I - Intangible Assets (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Notes Tables | |
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, 2023 $ 31,925 $ (19,288 ) $ 12,637 $ 6,553 $ 2,422 $ 668 $ 2,994 Addition 73 - 73 - - - 73 Reduction (631 ) 631 - - - - - Amortization - (1,636 ) (1,636 ) (622 ) (601 ) (39 ) (374 ) Translation adjustment 72 - 72 62 (173 ) 195 (12 ) Balance at December 29, 2023 $ 31,439 $ (20,293 ) $ 11,146 $ 5,993 $ 1,648 $ 824 $ 2,681 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Fiscal Year 2024 $ 1,827 2025 3,316 2026 2,310 2027 1,553 2028 1,405 2029 735 Thereafter 0 |
Note J - Long Term Debt (Tables
Note J - Long Term Debt (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 29, 2023 June 30, 2023 Credit Agreement Debt Revolving loans (expire June 2025) $ 7,175 $ 7,094 Term loan (due March 2026) 10,500 11,500 Other 23 33 Subtotal 17,698 18,627 Less: current maturities (2,000 ) (2,010 ) Total long-term debt $ 15,698 $ 16,617 |
Note K - Shareholders' Equity (
Note K - Shareholders' Equity (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
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 Loss Stock Interest Equity Balance, June 30, 2023 $ 42,855 $ 120,299 $ (5,570 ) $ (12,491 ) $ 424 $ 145,517 Net (loss) income (1,173 ) 90 (1,083 ) Translation adjustments (3,096 ) 60 (3,036 ) Benefit plan adjustments, net of tax (171 ) (171 ) Unrealized gain on hedges, net of tax 216 216 Compensation expense 495 495 Shares (acquired) issued, net (3,911 ) 2,148 (1,763 ) Balance, September 29, 2023 39,439 119,126 (8,621 ) (10,343 ) 574 140,175 Net income 930 5 935 Dividends paid to shareholders (560 ) (560 ) Translation adjustments 5,155 35 5,190 Benefit plan adjustments, net of tax (108 ) (108 ) Unrealized loss on hedges, net of tax (485 ) (485 ) Compensation expense 772 772 Shares (acquired) issued, net (550 ) 541 (9 ) Balance, December 29, 2023 $ 39,661 $ 119,496 $ (4,059 ) $ (9,802 ) $ 614 $ 145,910 Twin Disc, Inc. Shareholders’ Equity Accumulated Other Non- Common Retained Comprehensive Treasury Controlling Total Stock Earnings Loss Stock Interest Equity Balance, June 30, 2022 $ 42,551 $ 109,919 $ (6,974 ) $ (14,720 ) $ 412 $ 131,188 Net (loss) income (1,422 ) 98 (1,324 ) Translation adjustments (6,328 ) 38 (6,290 ) Benefit plan adjustments, net of tax (89 ) (89 ) Unrealized gain on hedges, net of tax 793 793 Compensation expense 658 658 Shares (acquired) issued, net (1,924 ) 1,756 (168 ) Balance, September 30, 2022 41,285 108,497 (12,598 ) (12,964 ) 548 124,768 Net income 1,746 15 1,761 Translation adjustments 8,333 59 8,392 Benefit plan adjustments, net of tax (1,122 ) (1,122 ) Unrealized loss on hedges, net of tax (595 ) (595 ) Compensation expense 856 856 Shares (acquired) issued, net (697 ) 402 (295 ) Balance, December 30, 2022 $ 41,444 $ 110,243 $ (5,982 ) $ (12,562 ) $ 622 $ 133,765 |
Reconciliation For The Changes In Accumulated Other Comprehensive Income Loss Net Of Tax By Component [Table Text Block] | Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance, June 30, 2023 $ (1,582 ) $ (5,948 ) $ 688 $ 1,272 Translation adjustment during the quarter (3,096 ) - - - Amounts reclassified from accumulated other comprehensive loss - (171 ) (6 ) 222 Net current period other comprehensive (loss) income (3,096 ) (171 ) (6 ) 222 Balance, September 29, 2023 (4,678 ) (6,119 ) 682 1,494 Translation adjustment during the quarter 5,155 Amounts reclassified from accumulated other comprehensive loss - (108 ) (183 ) (302 ) Net current period other comprehensive income (loss) 5,155 (108 ) (183 ) (302 ) Balance at December 29, 2023 $ 477 $ (6,227 ) $ 499 $ 1,192 Translation Benefit Plan Cash Flow Net Investment Adjustment Adjustment Hedges Hedges Balance, June 30, 2022 $ (2,266 ) $ (6,614 ) $ 356 $ 1,550 Translation adjustment during the quarter (6,328 ) - - - Amounts reclassified from accumulated other comprehensive loss - (89 ) 657 136 Net current period other comprehensive (loss) income (6,328 ) (89 ) 657 136 Balance, September 30, 2022 (8,594 ) (6,703 ) 1,013 1,686 Translation adjustment during the quarter 8,333 - - - Amounts reclassified from accumulated other comprehensive loss (7 ) (10 ) (585 ) Plan merger adjustment - (1,115 ) - - Net current period other comprehensive income (loss) 8,333 (1,122 ) (10 ) (585 ) Balance at December 30, 2022 $ (261 ) $ (7,825 ) $ 1,003 $ 1,101 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 29, 2023 December 29, 2023 Changes in benefit plan items Actuarial losses $ (91 ) (a) $ (263 ) (a) Transition asset and prior service benefit (4 ) (a) (8 ) (a) Total amortization (95 ) (271 ) Income tax expense (13 ) (8 ) Total reclassification net of tax $ (108 ) $ (279 ) Amount Reclassified Amount Reclassified Quarter Ended Two Quarters Ended December 30, 2022 December 30, 2022 Changes in benefit plan items Actuarial losses $ 664 (a) $ 1,223 (a) Transition asset and prior service benefit (51 ) (a) (101 ) (a) Mark-to-market adjustment (607 ) (1,214 ) Plan merger remeasurement adjustment (1,115 ) (1,115 ) Total amortization (1,109 ) (1,207 ) Income taxes (13 ) (4 ) Total reclassification net of tax $ (1,122 ) $ (1,211 ) |
Note M - Earnings Per Share (Ta
Note M - Earnings Per Share (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Quarter Ended For the Two Quarters Ended As Adjusted As Adjusted December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Basic: Net income (loss) $ 935 $ 1,761 $ (148 ) $ 436 Less: Net earnings attributable to noncontrolling interest (5 ) (15 ) (95 ) (112 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income (loss) attributable to Twin Disc 930 1,746 (243 ) 324 Weighted average shares outstanding - basic 13,718 13,460 13,629 13,434 Basic Loss Per Share: Net earnings (loss) per share - basic $ 0.07 $ 0.13 $ (0.02 ) $ 0.02 Diluted: Net income (loss) $ 935 $ 1,761 $ (148 ) $ 436 Less: Net earnings attributable to noncontrolling interest (5 ) (15 ) (95 ) (112 ) Less: Undistributed earnings attributable to unvested shares - - - - Net income (loss) attributable to Twin Disc 930 1,746 (243 ) 324 Weighted average shares outstanding - basic 13,718 13,460 13,629 13,434 Effect of dilutive stock awards 205 239 - 215 Weighted average shares outstanding - diluted 13,923 13,699 13,629 13,649 Diluted Income (Loss) Per Share: Net earnings (loss) per share - diluted $ 0.07 $ 0.13 $ (0.02 ) $ 0.02 |
Note N - Lease Liabilities (Tab
Note N - Lease Liabilities (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Notes Tables | |
Assets and Liabilities, Lessee [Table Text Block] | Balance Sheet Location December 29, 2023 June 30, 2023 Lease Assets Operating lease right-of-use assets Right-of-use assets operating leases $ 12,017 $ 13,133 Finance lease right-of-use assets Property, plant and equipment, net 4,860 4,427 Lease Liabilities Operating lease liabilities Accrued liabilities $ 2,064 $ 2,343 Operating lease liabilities Lease obligations 9,988 10,811 Finance lease liabilities Accrued liabilities 642 643 Finance lease liabilities Other long-term liabilities 4,532 4,314 |
Lease, Cost [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Finance lease cost: Amortization of right-of-use assets $ 175 $ 156 $ 397 $ 311 Interest on lease liabilities 77 67 151 132 Operating lease cost 882 686 1,775 1,397 Short-term lease cost 6 (10 ) 9 3 Variable lease cost 99 67 199 108 Total lease cost 1,239 966 2,531 1,951 Less: Sublease income (20 ) (18 ) (41 ) (35 ) Net lease cost $ 1,219 $ 948 $ 2,490 $ 1,916 |
Operating and Finance Leases, Other Disclosures [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 934 $ 777 $ 1,871 $ 1,473 Operating cash flows from finance leases 76 215 149 420 Financing cash flows from finance leases 207 67 471 132 Right-of-use-assets obtained in exchange for lease obligations: Operating leases 188 990 188 1,518 Finance leases 123 269 657 320 Weighted average remaining lease term (years): Operating leases 8.1 8.3 Finance lease 9.5 10.8 Weighted average discount rate: Operating leases 7.6 % 7.2 % Finance leases 5.8 % 5.2 % |
Schedule of Future Minimum Rental Payments for Operating Leases and Finance Lease, Liability, Maturity [Table Text Block] | Operating Leases Finance Leases 2024 $ 1,575 $ 492 2025 2,300 836 2026 1,810 788 2027 1,697 735 2028 1,652 657 2029 1,637 482 Thereafter 5,752 2,646 Total future lease payments 16,423 6,636 Less: Amount representing interest (4,371 ) (1,462 ) Present value of future payments $ 12,052 $ 5,174 |
Note O - Derivative Financial_2
Note O - Derivative Financial Instruments (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Notes Tables | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Balance Sheet Location December 29, 2023 June 30, 2023 Derivative designated as hedge: Interest rate swap Other current assets $ 209 $ 292 Interest rate swap Other noncurrent assets 80 187 |
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 (Loss) Location December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Derivative designated as hedge: Interest rate swap Interest expense $ 67 $ 79 $ 138 $ 162 Interest rate swap Unrealized gain (loss) on hedges 183 10 189 (339 ) Net investment hedge Unrealized (loss) gain on hedges (302 ) 585 (81 ) 141 |
Note P - Impact of Accounting_2
Note P - Impact of Accounting Method Change (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Notes Tables | |
Accounting Standards Update and Change in Accounting Principle [Table Text Block] | For the Quarter Ended For the Two Quarters Ended December 30, 2022 December 30, 2022 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method Net sales $ 63,351 $ - $ 63,351 $ 119,264 $ - $ 119,264 Cost of goods sold 46,328 - 46,328 88,944 - 88,944 Gross profit 17,023 - 17,023 30,320 - 30,320 Marketing, engineering and administrative expenses 15,983 - 15,983 31,063 - 31,063 Restructuring expenses 164 - 164 174 - 174 Other operating income (4,150 ) - (4,150 ) (4,150 ) - (4,150 ) Income from operations 5,026 - 5,026 3,233 - 3,233 Other expense (income): Interest expense 594 - 594 1,160 - 1,160 Other expense (income), net 789 (607 ) 182 1,050 (1,214 ) (164 ) 1,383 (607 ) 776 2,210 (1,214 ) 996 Income before income taxes and noncontrolling interest 3,643 607 4,250 1,023 1,214 2,237 Income tax expense 2,489 - 2,489 1,801 - 1,801 Net income (loss) 1,154 607 1,761 (778 ) 1,214 436 Less: Net earnings attributable to noncontrolling interest, net of tax (15 ) - (15 ) (112 ) - (112 ) Net income (loss) attributable to Twin Disc $ 1,139 $ 607 $ 1,746 $ (890 ) $ 1,214 $ 324 Income (loss) per share data: Basic income (los)s per share attributable to Twin Disc common shareholders $ 0.08 $ 0.05 $ 0.13 $ (0.07 ) $ 0.09 $ 0.02 Diluted income (loss) per share attributable to Twin Disc common shareholders $ 0.08 $ 0.05 $ 0.13 $ (0.07 ) $ 0.09 $ 0.02 Weighted average shares outstanding data: Basic shares outstanding 13,460 - 13,460 13,434 - 13,434 Diluted shares outstanding 13,699 - 13,699 13,434 - 13,434 Comprehensive income (loss) Net income (loss) $ 1,154 $ 607 $ 1,761 $ (778 ) $ 1,214 $ 436 Benefit plan adjustments, net of income taxes of $ 1 3 13 4 (515 ) (607 ) (1,122 ) 3 (1,214 ) (1,211 ) Foreign currency translation adjustment 8,392 - 8,392 2,005 - 2,005 Unrealized (loss) gain on hedges, net of income taxes of $ 0 0 (595 ) - (595 ) 198 - 198 Comprehensive income 8,436 - 8,436 1,428 - 1,428 Less: Comprehensive income attributable to noncontrolling interest 74 - 74 210 - 210 Comprehensive income attributable to Twin $ 8,362 $ - $ 8,362 $ 1,218 $ - $ 1,218 December 30, 2022 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method ASSETS Current assets: Cash $ 13,528 $ - $ 13,528 Trade accounts receivable, net 39,392 - 39,392 Inventories 136,810 - 136,810 Assets held for sale 2,968 - 2,968 Prepaid expenses 10,871 - 10,871 Other 7,228 - 7,228 Total current assets 210,797 - 210,797 Property, plant and equipment, net 39,683 - 39,683 Right-of-use assets operating leases 12,807 - 12,807 Intangible assets, net 11,798 - 11,798 Deferred income taxes 2,403 - 2,403 Other assets 2,766 - 2,766 Total assets $ 280,254 $ - $ 280,254 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 2,000 $ - $ 2,000 Accounts payable 28,906 - 28,906 Accrued liabilities 55,939 - 55,939 Total current liabilities 86,845 - 86,845 Long-term debt 29,927 - 29,927 Lease obligations 10,278 - 10,278 Accrued retirement benefits 10,587 - 10,587 Deferred income taxes 3,506 - 3,506 Other long-term liabilities 5,346 - 5,346 Total liabilities 146,489 - 146,489 Twin Disc shareholders' equity: Preferred shares authorized: 200,000 none no - - - Common shares authorized: 30,000,000 14,632,802 no 41,444 - 41,444 Retained earnings 134,141 (23,898 ) 110,243 Accumulated other comprehensive loss (29,880 ) 23,898 (5,982 ) 145,705 - 145,705 Less treasury stock, at cost ( 819,398 12,562 - 12,562 Total Twin Disc shareholders' equity 133,143 - 133,143 Noncontrolling interest 622 - 622 Total equity 133,765 - 133,765 Total liabilities and equity $ 280,254 $ - $ 280,254 December 30, 2022 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ (778 ) $ 1,214 $ 436 Adjustments to reconcile net (loss) income to net cash provided by activities: Depreciation and amortization 4,266 - 4,266 Gain on sale of assets (4,203 ) - (4,203 ) Provision for deferred income taxes (1,105 ) - (1,105 ) Stock compensation expense 1,565 - 1,565 Net change in operating assets and liabilities 287 (1,214 ) (927 ) Net cash provided by operating activities 32 - 32 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property, plant, and equipment (4,734 ) - (4,734 ) Proceeds from sale of fixed assets 7,152 - 7,152 Proceeds on note receivable - - - Other, net 385 - 385 Net cash provided by investing activities 2,803 - 2,803 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings under revolving loan arrangements 42,898 - 42,898 Repayments of revolving loan arrangements (46,628 ) - (46,628 ) Repayments of other long-term debt (839 ) 132 (707 ) Payments of finance lease obligations (132 ) (132 ) Payments of withholding taxes on stock compensation (463 ) - (463 ) Net cash used by financing activities (5,032 ) - (5,032 ) Effect of exchange rate changes on cash 3,204 - 3,204 Net change in cash 1,007 - 1,007 Cash: Beginning of period 12,521 - 12,521 End of period $ 13,528 $ - $ 13,528 December 30, 2022 As Computed Under Previous Method Effect of Accounting Change As Reported Under New Method Retained earnings Balance at June 30, 2022 135,031 (25,112 ) 109,919 Net (loss) income attributable to Twin Disc (890 ) 1,214 324 Balance at December 30, 2022 $ 134,141 $ (23,898 ) $ 110,243 Accumulated other comprehensive income (loss) Balance at June 30, 2022 (32,086 ) 25,112 (6,974 ) Translation adjustments 2,005 - 2,005 Benefit plan adjustments, net of tax 3 (1,214 ) (1,211 ) Unrealized gain on hedges, net of tax 198 - 198 Balance at December 30, 2022 $ (29,880 ) $ 23,898 $ (5,982 ) |
Note A - Basis of Presentation
Note A - Basis of Presentation (Details Textual) | Jun. 30, 2023 |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Note B - Inventories (Details T
Note B - Inventories (Details Textual) - Boat Management System Product Line [Member] $ in Millions | 3 Months Ended |
Dec. 29, 2023 USD ($) | |
Inventory Write-down | $ 2.1 |
UNITED STATES | |
Inventory Write-down | $ 1.6 |
Note B - Inventories - Inventor
Note B - Inventories - Inventories (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Jun. 30, 2023 | Dec. 30, 2022 |
Finished parts | $ 65,089 | $ 66,956 | |
Work in process | 22,239 | 23,374 | |
Raw materials | 44,440 | 41,600 | |
Total inventories | $ 131,768 | $ 131,930 | $ 136,810 |
Note C - Warranty (Details Text
Note C - Warranty (Details Textual) - USD ($) $ in Thousands | Dec. 29, 2023 | Dec. 30, 2022 |
Product Warranty Accrual, Current | $ 3,549 | $ 3,552 |
Product Warranty Accrual, Noncurrent | $ 939 | $ 593 |
Note C - Warranty - Warranty (D
Note C - Warranty - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Reserve balance, beginning of period | $ 4,160 | $ 3,804 | $ 3,476 | $ 3,329 |
Current period expense and adjustments | 1,208 | 770 | 2,724 | 1,678 |
Payments or credits to customers | (898) | (503) | (1,718) | (869) |
Translation | 18 | 74 | 6 | 7 |
Reserve balance, end of period | $ 4,488 | $ 4,145 | $ 4,488 | $ 4,145 |
Note E - Business Segments (Det
Note E - Business Segments (Details Textual) | 6 Months Ended |
Dec. 29, 2023 | |
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. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Net sales | $ 72,994 | $ 63,351 | $ 136,547 | $ 119,264 |
Manufacturing segment net income | 930 | 1,746 | (243) | 324 |
Intersegment Eliminations [Member] | ||||
Net sales | (22,616) | (18,911) | (46,454) | (36,303) |
Corporate, Non-Segment [Member] | ||||
Manufacturing segment net income | (4,321) | (4,096) | (8,058) | (8,876) |
Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net sales | 58,368 | 56,678 | 112,906 | 105,675 |
Manufacturing segment net income | 2,078 | 4,439 | 3,636 | 6,841 |
Manufacturing Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | (18,795) | (14,198) | (38,979) | (27,842) |
Distribution Segment [Member] | Operating Segments [Member] | ||||
Net sales | 37,242 | 25,584 | 70,095 | 49,892 |
Manufacturing segment net income | 3,173 | 1,403 | 4,179 | 2,359 |
Distribution Segment [Member] | Intersegment Eliminations [Member] | ||||
Net sales | $ (3,821) | $ (4,713) | $ (7,475) | $ (8,461) |
Note E - Business Segments - As
Note E - Business Segments - Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Jun. 30, 2023 | Dec. 30, 2022 |
Segment Assets | $ 285,190 | $ 289,181 | $ 280,254 |
Operating Segments [Member] | Manufacturing Segment [Member] | |||
Segment Assets | 380,283 | 381,668 | |
Operating Segments [Member] | Distribution Segment [Member] | |||
Segment Assets | 70,391 | 69,213 | |
Corporate, Non-Segment [Member] | |||
Segment Assets | $ (165,484) | $ (161,700) |
Note E - Business Segments and
Note E - Business Segments and Foreign Operations - Net Sales by Product Group 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Net Sales | $ 72,994 | $ 63,351 | $ 136,547 | $ 119,264 |
Intersegment Eliminations [Member] | ||||
Net Sales | (22,616) | (18,911) | (46,454) | (36,303) |
Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 58,368 | 56,678 | 112,906 | 105,675 |
Manufacturing Segment [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (18,795) | (14,198) | (38,979) | (27,842) |
Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 37,242 | 25,584 | 70,095 | 49,892 |
Distribution Segment [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (3,821) | (4,713) | (7,475) | (8,461) |
Industrial [Member] | ||||
Net Sales | 6,531 | 7,512 | 12,216 | 14,544 |
Industrial [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (730) | (1,177) | (1,364) | (1,886) |
Industrial [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 5,704 | 6,963 | 10,994 | 13,656 |
Industrial [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 1,557 | 1,726 | 2,586 | 2,774 |
Land Based Transmissions [Member] | ||||
Net Sales | 15,863 | 14,671 | 34,440 | 30,609 |
Land Based Transmissions [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (7,093) | (4,030) | (15,867) | (8,985) |
Land Based Transmissions [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 15,003 | 15,256 | 29,684 | 31,543 |
Land Based Transmissions [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 7,953 | 3,445 | 20,623 | 8,051 |
Marine and Propulsion Systems [Member] | ||||
Net Sales | 46,946 | 36,466 | 83,409 | 65,802 |
Marine and Propulsion Systems [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (14,773) | (13,223) | (29,197) | (24,246) |
Marine and Propulsion Systems [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 37,661 | 34,262 | 72,228 | 60,077 |
Marine and Propulsion Systems [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 24,058 | 15,427 | 40,378 | 29,971 |
Other [Member] | ||||
Net Sales | 3,654 | 4,702 | 6,482 | 8,309 |
Other [Member] | Intersegment Eliminations [Member] | ||||
Net Sales | (20) | (481) | (26) | (1,186) |
Other [Member] | Manufacturing Segment [Member] | Operating Segments [Member] | ||||
Net Sales | 0 | 197 | 0 | 399 |
Other [Member] | Distribution Segment [Member] | Operating Segments [Member] | ||||
Net Sales | $ 3,674 | $ 4,986 | $ 6,508 | $ 9,096 |
Note F - Stock-based Compensa_2
Note F - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Dec. 29, 2023 | Sep. 29, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Jun. 30, 2023 | |
Performance Stock Awards [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 119.3 | 118.1 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | 3 years | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 238.7 | 238.7 | 236.2 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 335.2 | 438.9 | 335.2 | 438.9 | |||
Share-Based Payment Arrangement, Expense | $ 261,000 | $ 366,000 | $ 314,000 | $ 596,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 11.48 | $ 11.48 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 1,977,000 | $ 1,977,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0 | ||||||
Performance Stock Unit Awards [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 10.5 | 0 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 20.9 | 20.9 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 10.5 | 0 | 10.5 | 0 | |||
Share-Based Payment Arrangement, Expense | $ 11,000 | $ 0 | $ 18,000 | $ 0 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 12.15 | $ 12.15 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 109,000 | $ 109,000 | |||||
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 (in shares) | 115.7 | 177.7 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 251.3 | 309.2 | 251.3 | 309.2 | |||
Share-Based Payment Arrangement, Expense | $ 210,000 | $ 334,000 | $ 523,000 | $ 694,000 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 1,804 | $ 1,804 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 2,206,000 | $ 1,669,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares) | 2.4 | 0 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years | ||||||
Restricted Stock [Member] | Minimum [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 1 year | ||||||
Restricted Stock [Member] | Maximum [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 7.1 | 72.4 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 135 | 130.9 | 135 | 130.9 | |||
Share-Based Payment Arrangement, Expense | $ 126,000 | $ 132,000 | $ 247,000 | $ 224,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 10.97 | $ 10.97 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 537,000 | $ 537,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 25,000 | $ 40,000 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years | 3 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. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | $ 108 | $ 1,122 | $ 279 | $ 1,211 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | 13 | $ 13 | 8 | $ 4 |
Pension Plan [Member] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | 675 | $ 675 | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 403 |
Note G - Pension and Other Po_4
Note G - Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Pension Plan [Member] | ||||
Service cost | $ 94 | $ 102 | $ 188 | $ 203 |
Prior service cost | 0 | 8 | 0 | 17 |
Interest cost | 896 | 868 | 1,792 | 1,736 |
Expected return on plan assets | (1,048) | (1,060) | (2,096) | (2,120) |
Amortization of transition obligation | 10 | 9 | 19 | 18 |
Amortization of prior service cost | 9 | 9 | 17 | 18 |
Amortization of actuarial net loss | 16 | 617 | 31 | 1,235 |
Net periodic benefit (gain) cost | (23) | 553 | (49) | 1,107 |
Other Postretirement Benefits Plan [Member] | ||||
Service cost | 2 | 2 | 4 | 5 |
Interest cost | 48 | 53 | 95 | 106 |
Amortization of prior service cost | (22) | (69) | (44) | (137) |
Amortization of actuarial net loss | (155) | (10) | (310) | (19) |
Net periodic benefit (gain) cost | $ (127) | $ (24) | $ (255) | $ (45) |
Note H - Income Taxes (Details
Note H - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Effective Income Tax Rate Reconciliation, Percent | 107.20% | 80.50% | ||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 9,282 | $ 5,094 | ||
Income Tax Expense (Benefit) | $ 1,662 | $ 2,489 | 2,208 | 1,801 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 7,222 | 2,857 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 2,597 | $ 4,250 | 2,061 | 2,237 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 834 | 834 | ||
Foreign Tax Authority [Member] | ||||
Income Tax Expense (Benefit) | 2,199 | 1,773 | ||
Open Tax Year | 2018 2019 2020 2021 2022 2023 | |||
Domestic Tax Authority [Member] | ||||
Income Tax Expense (Benefit) | $ 9 | $ 28 |
Note I - Intangible Assets (Det
Note I - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Amortization of Intangible Assets | $ 817 | $ 704 | $ 1,636 | $ 1,402 |
Note I - Intangible Assets - In
Note I - Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Jul. 01, 2023 | |
Balance, Definite Intangible Assets Gross Carrying Amount | $ 31,439 | $ 31,439 | $ 31,925 | ||
Balance, Definite Intangible Assets Accumulated Amortization/Impairment | (20,293) | (20,293) | (19,288) | ||
Balance at June 30, Definite Intangible Assets Net Book Value | 11,146 | 11,146 | 12,637 | ||
Addition, Definite Intangible Assets Gross Carrying Amount | 73 | ||||
Addition, Definite Intangible Assets Net Book Value | 73 | ||||
Reduction, Definite Intangible Assets Gross Carrying Amount | (631) | ||||
Reduction, Definite Intangible Assets Accumulated Amortization/Impairment | 631 | ||||
Amortization, Intangible Asset | (817) | $ (704) | (1,636) | $ (1,402) | |
Translation adjustment, Definite Intangible Assets Gross Carrying Amount | 72 | ||||
Translation adjustment, Definite Intangible Assets Net Book Value | 72 | ||||
Customer Relationships [Member] | |||||
Balance at June 30, Definite Intangible Assets Net Book Value | 5,993 | 5,993 | 6,553 | ||
Addition, Definite Intangible Assets Net Book Value | 0 | ||||
Amortization, Intangible Asset | (622) | ||||
Translation adjustment, Definite Intangible Assets Net Book Value | 62 | ||||
Technology-Based Intangible Assets [Member] | |||||
Balance at June 30, Definite Intangible Assets Net Book Value | 1,648 | 1,648 | 2,422 | ||
Addition, Definite Intangible Assets Net Book Value | 0 | ||||
Amortization, Intangible Asset | (601) | ||||
Translation adjustment, Definite Intangible Assets Net Book Value | (173) | ||||
Trade Names [Member] | |||||
Balance at June 30, Definite Intangible Assets Net Book Value | 824 | 824 | 668 | ||
Addition, Definite Intangible Assets Net Book Value | 0 | ||||
Amortization, Intangible Asset | (39) | ||||
Translation adjustment, Definite Intangible Assets Net Book Value | 195 | ||||
Other Intangible Assets [Member] | |||||
Balance at June 30, Definite Intangible Assets Net Book Value | $ 2,681 | 2,681 | $ 2,994 | ||
Addition, Definite Intangible Assets Net Book Value | 73 | ||||
Amortization, Intangible Asset | (374) | ||||
Translation adjustment, Definite Intangible Assets Net Book Value | $ (12) |
Note I - Intangible Assets - Es
Note I - Intangible Assets - Estimated Intangibles Amortization Expense (Details) $ in Thousands | Dec. 29, 2023 USD ($) |
2024 | $ 1,827 |
2025 | 3,316 |
2026 | 2,310 |
2027 | 1,553 |
2028 | 1,405 |
2029 | 735 |
Thereafter | $ 0 |
Note J - Long Term Debt (Detail
Note J - Long Term Debt (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2022 | Mar. 04, 2019 USD ($) | Dec. 29, 2023 USD ($) | Jun. 30, 2019 | Jun. 30, 2023 USD ($) | Dec. 30, 2022 USD ($) | Jul. 22, 2020 | Jun. 29, 2018 USD ($) | |
Long-Term Debt, Current Maturities | $ 2,000 | $ 2,010 | $ 2,000 | |||||
Principal Paid on Sale Leaseback Liabilities | 10 | |||||||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Bank of Montreal [Member] | ||||||||
Derivative, Notional Amount | 10,500 | $ 20,000 | ||||||
Maximum [Member] | ||||||||
Sale Leaseback Transactions, Term (Year) | 5 years | |||||||
Sale Leaseback Transactions, Implied Interest Rate | 25% | |||||||
Minimum [Member] | ||||||||
Sale Leaseback Transactions, Term (Year) | 3 years | |||||||
Sale Leaseback Transactions, Implied Interest Rate | 7% | |||||||
BMO [Member] | The 2018 Credit Agreement [Member] | ||||||||
Debt Instrument, Percentage of Equity Interest in Domestic Subsidiaries Pledged | 100% | |||||||
Debt Instrument, Percentage of Equity Interest in Foreign Subsidiaries Pledged | 65% | |||||||
Debt Instrument, Debt Default, Percentage of Letter of Credit Obligations Required to Cash Collateralize | 105% | |||||||
Long-Term Debt, Current Maturities | $ 2,000 | |||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Term Loan [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 20,000 | |||||||
Debt Instrument, Periodic Payment, Total | $ 500 | |||||||
Debt Instrument, Interest Rate During Period | 6.82% | |||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | 35,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | |||||||
Debt Instrument, Interest Rate During Period | 5.63% | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 37,157 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 29,982 | |||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||
Debt Instrument, Covenant, Maximum Cash Dividends | 3,000 | |||||||
BMO [Member] | The 2018 Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate LIBOR 1 [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Term Loan [Member] | ||||||||
Debt Instrument, Covenant, Minimum Tangible Net Worth Plus Half of Net Income | 100,000 | |||||||
BMO [Member] | The Ninth Amendment [Member] | Term Loan [Member] | Maximum [Member] | London Interbank Offered Rate LIBOR 1 [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.875% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Term Loan [Member] | Minimum [Member] | London Interbank Offered Rate LIBOR 1 [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Unused Revolving Credit Commitment [Member] | Maximum [Member] | London Interbank Offered Rate LIBOR 1 [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.15% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Unused Revolving Credit Commitment [Member] | Minimum [Member] | London Interbank Offered Rate LIBOR 1 [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | |||||||
BMO [Member] | The Ninth Amendment [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000 | |||||||
BMO [Member] | The Ninth Amendment [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||||
Total Funded Debt To EBITDA Allowable Ratio | 3.5 | |||||||
Fixed Charge Coverage Ratio | 1.1 | |||||||
BMO [Member] | The Ninth Amendment [Member] | Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate LIBOR 1 [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Note J - Debt - Long-term Debt
Note J - Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Jun. 30, 2023 | Dec. 30, 2022 |
Long-term debt | $ 17,698 | $ 18,627 | |
Less: current maturities | (2,000) | (2,010) | $ (2,000) |
Total long-term debt | 15,698 | 16,617 | $ 29,927 |
Revolving Loan [Member] | |||
Long-term debt | 7,175 | 7,094 | |
Term Loan [Member] | |||
Long-term debt | 10,500 | 11,500 | |
Other Long-Term Debt [Member] | |||
Long-term debt | $ 23 | $ 33 |
Note K - Shareholders' Equity_2
Note K - Shareholders' Equity (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
Dec. 29, 2023 | Dec. 30, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares) | 315 | |||
Treasury Stock, Shares, Acquired (in shares) | 0 | 0 | ||
Retained Earnings (Accumulated Deficit) | $ 119,496 | $ 110,243 | $ 120,299 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (4,059) | (5,982) | $ (5,570) | |
Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | ||||
Retained Earnings (Accumulated Deficit) | (23,898) | $ (25,100) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 23,898 | 25,100 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Tax | 0 | |||
Deferred Tax Assets, Gross | 7,900 | |||
Deferred Tax Assets, Valuation Allowance | $ 7,900 |
Note K - Shareholders' Equity -
Note K - Shareholders' Equity - Shareholders' Equity Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 29, 2023 | Sep. 29, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Balance | $ 140,175 | $ 145,517 | $ 124,768 | $ 131,188 | $ 145,517 | $ 131,188 | |
Net income (loss) | 935 | (1,083) | 1,761 | (1,324) | (148) | 436 | |
Translation adjustments | 5,190 | (3,036) | 8,392 | (6,290) | 2,154 | 2,102 | |
Benefit plan adjustments, net of tax | (108) | (171) | (1,122) | (89) | (279) | (1,211) | |
Unrealized gain (loss) on hedges | (485) | 216 | (595) | 793 | (269) | 198 | |
Compensation expense | 772 | 495 | 856 | 658 | |||
Shares (acquired) issued, net | (9) | (1,763) | (295) | $ (168) | |||
Dividends paid to shareholders | (560) | ||||||
Balance | 145,910 | 140,175 | 133,765 | 124,768 | 124,768 | 145,910 | 133,765 |
Common Stock [Member] | |||||||
Balance | 39,439 | 42,855 | 41,285 | 42,551 | 42,855 | 42,551 | |
Compensation expense | 772 | 495 | 856 | 658 | |||
Shares (acquired) issued, net | (550) | (3,911) | (697) | (1,924) | |||
Balance | 39,661 | 39,439 | 41,444 | 41,285 | 41,285 | 39,661 | 41,444 |
Retained Earnings [Member] | |||||||
Balance | 119,126 | 120,299 | 108,497 | 109,919 | 120,299 | 109,919 | |
Net income (loss) | 930 | (1,173) | 1,746 | (1,422) | |||
Dividends paid to shareholders | (560) | ||||||
Balance | 119,496 | 119,126 | 110,243 | 108,497 | 108,497 | 119,496 | 110,243 |
AOCI Attributable to Parent [Member] | |||||||
Balance | (8,621) | (5,570) | (12,598) | (6,974) | (5,570) | (6,974) | |
Translation adjustments | 5,155 | (3,096) | 8,333 | (6,328) | 2,005 | ||
Benefit plan adjustments, net of tax | (108) | (171) | (1,122) | (89) | |||
Unrealized gain (loss) on hedges | (485) | 216 | (595) | 793 | 198 | ||
Balance | (4,059) | (8,621) | (5,982) | (12,598) | (12,598) | (4,059) | (5,982) |
Treasury Stock, Common [Member] | |||||||
Balance | (10,343) | (12,491) | (12,964) | (14,720) | (12,491) | (14,720) | |
Shares (acquired) issued, net | 541 | 2,148 | 402 | 1,756 | |||
Balance | (9,802) | (10,343) | (12,562) | (12,964) | (12,964) | (9,802) | (12,562) |
Noncontrolling Interest [Member] | |||||||
Balance | 574 | 424 | 548 | 412 | 424 | 412 | |
Net income (loss) | 5 | 90 | 15 | 98 | |||
Translation adjustments | 35 | 60 | 59 | 38 | |||
Balance | $ 614 | $ 574 | $ 622 | $ 548 | $ 548 | $ 614 | $ 622 |
Note k - Shareholders' Equity_3
Note k - Shareholders' Equity - Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 29, 2023 | Sep. 29, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Balance | $ 140,175 | $ 145,517 | $ 124,768 | $ 131,188 | $ 145,517 | $ 131,188 |
Translation adjustment during the quarter | 5,190 | (3,036) | 8,392 | (6,290) | 2,154 | 2,102 |
Balance | 145,910 | 140,175 | 133,765 | 124,768 | 145,910 | 133,765 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Balance | (4,678) | (1,582) | (8,594) | (2,266) | (1,582) | (2,266) |
Translation adjustment during the quarter | 5,155 | (3,096) | 8,333 | (6,328) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | |||
Net current period other comprehensive (loss) income | (5,155) | 3,096 | (8,333) | 6,328 | ||
Net current period other comprehensive income (loss) | 5,155 | (3,096) | 8,333 | (6,328) | ||
Balance | 477 | (4,678) | (261) | (8,594) | 477 | (261) |
Plan merger adjustment | 0 | |||||
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Balance | (6,119) | (5,948) | (6,703) | (6,614) | (5,948) | (6,614) |
Translation adjustment during the quarter | 0 | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | (108) | (171) | (7) | (89) | ||
Net current period other comprehensive (loss) income | 108 | 171 | 1,122 | 89 | ||
Net current period other comprehensive income (loss) | (108) | (171) | (1,122) | (89) | ||
Balance | (6,227) | (6,119) | (7,825) | (6,703) | (6,227) | (7,825) |
Plan merger adjustment | (1,115) | |||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||||
Balance | 682 | 688 | 1,013 | 356 | 688 | 356 |
Translation adjustment during the quarter | 0 | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | (183) | (6) | (10) | 657 | ||
Net current period other comprehensive (loss) income | 183 | 6 | 10 | (657) | ||
Net current period other comprehensive income (loss) | (183) | (6) | (10) | 657 | ||
Balance | 499 | 682 | 1,003 | 1,013 | 499 | 1,003 |
Plan merger adjustment | 0 | |||||
Accumulated Gain (Loss), Net, Net Investment Hedge [Member] | ||||||
Balance | 1,494 | 1,272 | 1,686 | 1,550 | 1,272 | 1,550 |
Translation adjustment during the quarter | 0 | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | (302) | 222 | (585) | 136 | ||
Net current period other comprehensive (loss) income | 302 | (222) | 585 | (136) | ||
Net current period other comprehensive income (loss) | (302) | 222 | (585) | 136 | ||
Balance | $ 1,192 | $ 1,494 | 1,101 | $ 1,686 | $ 1,192 | $ 1,101 |
Plan merger adjustment | $ 0 |
Note K - Shareholders' Equity_4
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. 29, 2023 | Sep. 29, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |||
Total amortization | $ 2,597 | $ 4,250 | $ 2,061 | $ 2,237 | ||||
Income tax expense | 1,662 | 2,489 | 2,208 | 1,801 | ||||
Net income (loss) | 935 | $ (1,083) | 1,761 | $ (1,324) | (148) | 436 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||
Actuarial losses | (91) | 664 | (263) | 1,223 | ||||
Transition asset and prior service benefit | 4 | [1] | (51) | 8 | [1] | (101) | ||
Total amortization | (95) | (1,109) | (271) | (1,207) | ||||
Income tax expense | (13) | (13) | (8) | (4) | ||||
Net income (loss) | (108) | (1,122) | (279) | (1,211) | ||||
Actuarial losses | $ (91) | 664 | $ (263) | 1,223 | ||||
Mark-to-market adjustment | (607) | (1,214) | ||||||
Plan merger adjustment | $ 1,115 | $ 1,115 | ||||||
[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 - Assets Held for Sale (
Note L - Assets Held for Sale (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Mar. 25, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Proceeds from Sale of Property, Plant, and Equipment | $ 0 | $ 7,152 | ||
Gain (Loss) on Disposition of Assets | $ 42 | $ 4,203 | ||
Boat Management System Product Line [Member] | ||||
Inventory Write-down | $ 2,100 | |||
Property, Plant, and Equipment Reclassified to Assets Held for Sale [Member] | ||||
Increase (Decrease) in Asset, Held-for-Sale | 2,801 | |||
Propeller Machining Plant and Office in Switzerland [Member] | ||||
Proceeds from Sale of Property, Plant, and Equipment | 7,150 | |||
Gain (Loss) on Disposition of Assets | $ 4,161 | |||
Employee Severance [Member] | ||||
Impairment of Long-Lived Assets to be Disposed of | $ 4,267 |
Note M - Earnings Per Share (De
Note M - Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 2,000 | 87.4 |
PSUA Award [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 135,100 | |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 2,600 | |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 80.2 |
Note M - Earnings Per Share - C
Note M - Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 29, 2023 | Sep. 29, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Net (loss) income | $ 935 | $ (1,083) | $ 1,761 | $ (1,324) | $ (148) | $ 436 |
Less: Net earnings attributable to noncontrolling interest | (5) | (15) | (95) | (112) | ||
Less: Undistributed earnings attributable to unvested shares | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Twin Disc | $ 930 | $ 1,746 | $ (243) | $ 324 | ||
Weighted average shares outstanding - basic (in shares) | 13,718 | 13,460 | 13,629 | 13,434 | ||
Basic income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.07 | $ 0.13 | $ (0.02) | $ 0.02 | ||
Effect of dilutive stock awards (in shares) | 205 | 239 | 0 | 215 | ||
Weighted average shares outstanding - diluted (in shares) | 13,923 | 13,699 | 13,629 | 13,649 | ||
Diluted income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.07 | $ 0.13 | $ (0.02) | $ 0.02 |
Note N - Lease Obligations - Co
Note N - Lease Obligations - Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 29, 2023 | Jun. 30, 2023 | Dec. 30, 2022 |
Operating lease right-of-use assets | $ 12,017 | $ 13,133 | $ 12,807 |
Operating lease liabilities | 9,988 | 10,811 | $ 10,278 |
Property, Plant and Equipment, Net [Member] | |||
Finance lease right-of-use assets | 4,860 | 4,427 | |
Accrued Liabilities [Member] | |||
Operating lease liabilities | 2,064 | 2,343 | |
Finance lease liabilities | 642 | 643 | |
Lease Obligation [Member] | |||
Operating lease liabilities | 9,988 | 10,811 | |
Other Noncurrent Liabilities [Member] | |||
Finance lease liabilities | $ 4,532 | $ 4,314 |
Note N - Lease Obligations - _2
Note N - Lease Obligations - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Amortization of right-of-use assets | $ 175 | $ 156 | $ 397 | $ 311 |
Interest on lease liabilities | 77 | 67 | 151 | 132 |
Operating lease cost | 882 | 686 | 1,775 | 1,397 |
Short-term lease cost | 6 | (10) | 9 | 3 |
Variable lease cost | 99 | 67 | 199 | 108 |
Total lease cost | 1,239 | 966 | 2,531 | 1,951 |
Less: Sublease income | (20) | (18) | (41) | (35) |
Net lease cost | $ 1,219 | $ 948 | $ 2,490 | $ 1,916 |
Note N - Lease Obligations - Ot
Note N - Lease Obligations - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Operating cash flows from operating leases | $ 934 | $ 777 | $ 1,871 | $ 1,473 |
Operating cash flows from finance leases | 76 | 215 | 149 | 420 |
Financing cash flows from finance leases | 207 | 67 | 471 | 132 |
Right-of-use-assets obtained in exchange for lease obligations: Operating leases | 188 | 990 | 188 | 1,518 |
Right-of-use-assets obtained in exchange for lease obligations: Finance leases | $ 123 | $ 269 | $ 657 | $ 320 |
Weighted average remaining lease term (years): Operating leases (Year) | 8 years 1 month 6 days | 8 years 3 months 18 days | 8 years 1 month 6 days | 8 years 3 months 18 days |
Weighted average remaining lease term (years): Finance lease (Year) | 9 years 6 months | 10 years 9 months 18 days | 9 years 6 months | 10 years 9 months 18 days |
Weighted average discount rate: Operating leases | 7.60% | 7.20% | 7.60% | 7.20% |
Weighted average discount rate: Finance leases | 5.80% | 5.20% | 5.80% | 5.20% |
Note N - Lease Obligations - Fu
Note N - Lease Obligations - Future Minimum Rental Commitments Under Noncancelable Leases (Details) $ in Thousands | Dec. 29, 2023 USD ($) |
2024, Operating Leases | $ 1,575 |
2024, Finance Leases | 492 |
2025, Operating Leases | 2,300 |
2025, Finance Leases | 836 |
2026, Operating Leases | 1,810 |
2026, Finance Leases | 788 |
2027, Operating Leases | 1,697 |
2027, Finance Leases | 735 |
2028, Operating Leases | 1,652 |
2028, Finance Leases | 657 |
2029, Operating Leases | 1,637 |
2029, Finance Leases | 482 |
Thereafter, Operating Leases | 5,752 |
Thereafter, Finance Leases | 2,646 |
Total future lease payments, Operating Leases | 16,423 |
Total future lease payments, Finance Leases | 6,636 |
Less: Amount representing interest, Operating Leases | (4,371) |
Less: Amount representing interest, Finance Leases | (1,462) |
Present value of future payments, Operating Leases | 12,052 |
Present value of future payments, Finance Leases | $ 5,174 |
Note O - Derivative Financial_3
Note O - Derivative Financial Instruments (Details Textual) $ in Thousands, € in Millions | 3 Months Ended | |||||||
Dec. 29, 2023 USD ($) | Dec. 30, 2022 USD ($) | Sep. 29, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 EUR (€) | Jun. 29, 2018 USD ($) | |
Equity, Including Portion Attributable to Noncontrolling Interest | $ 145,910 | $ 133,765 | $ 140,175 | $ 145,517 | $ 124,768 | $ 131,188 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within 12 Months | $ 218 | |||||||
Interest Rate Swap [Member] | ||||||||
Derivative, Number of Instruments Held | 1 | |||||||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Bank of Montreal [Member] | ||||||||
Derivative, Notional Amount | $ 10,500 | $ 20,000 | ||||||
Equity, Including Portion Attributable to Noncontrolling Interest | 499 | $ 688 | ||||||
Euro Denominated Revolving Loan [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||||
Derivative, Notional Amount | € | € 13 | |||||||
Derivative, Gain (Loss) on Derivative, Net | $ 1,192 | $ (1,272) |
Note O - Derivative Financial_4
Note O - Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 29, 2023 | Jun. 30, 2023 |
Accounts Payable and Accrued Liabilities [Member] | ||
Derivative Liabilities, Current | $ 209 | $ 292 |
Other Noncurrent Liabilities [Member] | ||
Derivative Liabilities, Noncurrent | $ 80 | $ 187 |
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. 29, 2023 | Sep. 29, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Unrealized gain (loss) on hedges | $ (485) | $ 216 | $ (595) | $ 793 | $ (269) | $ 198 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Unrealized Gain (Loss) on Hedges [Member] | Cash Flow Hedging [Member] | ||||||
Unrealized gain (loss) on hedges | 183 | 10 | 189 | (339) | ||
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member] | ||||||
Gain (loss) on derivative instruments | 67 | 79 | 138 | 162 | ||
Euro Denominated Revolving Loan [Member] | Designated as Hedging Instrument [Member] | Unrealized Gain (Loss) on Hedges [Member] | Net Investment Hedging [Member] | ||||||
Unrealized gain (loss) on hedges | $ (302) | $ 585 | $ (81) | $ 141 |
Note P - Impact of Accounting_3
Note P - Impact of Accounting Method Change - Adjustment to Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Dec. 29, 2023 | Sep. 29, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Jun. 30, 2023 | Jul. 01, 2022 | |
Net sales | $ 72,994 | $ 63,351 | $ 136,547 | $ 119,264 | ||||
Gross profit | 20,656 | 17,023 | 37,292 | 30,320 | ||||
Marketing, engineering and administrative expenses | 17,149 | 15,983 | 34,068 | 31,063 | ||||
Restructuring expenses | 69 | 164 | 68 | 174 | ||||
Other operating income | 0 | (4,150) | 0 | (4,150) | ||||
Income from operations | 3,438 | 5,026 | 3,156 | 3,233 | ||||
Other expense (income): | ||||||||
Interest expense | 392 | 594 | 786 | 1,160 | ||||
Other expense (income), net | 449 | 182 | 310 | (164) | ||||
Interest Income (Expense), Nonoperating, Net | 841 | 776 | 1,096 | 996 | ||||
Income before income taxes and noncontrolling interest | 2,597 | 4,250 | 2,061 | 2,237 | ||||
Income tax expense | 1,662 | 2,489 | 2,208 | 1,801 | ||||
Net (loss) income | 935 | $ (1,083) | 1,761 | $ (1,324) | (148) | 436 | ||
Less: Net earnings attributable to noncontrolling interest, net of tax | (5) | (15) | (95) | (112) | ||||
Net income (loss) attributable to Twin Disc | $ 930 | $ 1,746 | $ (243) | $ 324 | ||||
Income (loss) per share data: | ||||||||
Basic income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.07 | $ 0.13 | $ (0.02) | $ 0.02 | ||||
Diluted income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.07 | $ 0.13 | $ (0.02) | $ 0.02 | ||||
Weighted average shares outstanding data: | ||||||||
Basic shares outstanding (in shares) | 13,718 | 13,460 | 13,629 | 13,434 | ||||
Diluted shares outstanding (in shares) | 13,923 | 13,699 | 13,629 | 13,649 | ||||
Net (loss) income | $ 935 | (1,083) | $ 1,761 | (1,324) | $ (148) | $ 436 | ||
Benefit plan adjustments, net of income taxes of $13, $13, $8 and $4, respectively | (108) | (171) | (1,122) | (89) | (279) | (1,211) | ||
Translation adjustment during the quarter | 5,190 | (3,036) | 8,392 | (6,290) | 2,154 | 2,102 | ||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (485) | 216 | (595) | 793 | (269) | 198 | ||
Comprehensive income | 5,532 | 8,436 | 1,458 | 1,525 | ||||
Less: Comprehensive income attributable to noncontrolling interest | 40 | 74 | 190 | 210 | ||||
Comprehensive income attributable to Twin Disc | 5,492 | 8,362 | 1,268 | 1,315 | ||||
Current assets: | ||||||||
Cash | 21,021 | 13,528 | 21,021 | 13,528 | $ 13,263 | |||
Trade accounts receivable, net | 41,428 | 39,392 | 41,428 | 39,392 | 54,760 | |||
Inventories | 131,768 | 136,810 | 131,768 | 136,810 | 131,930 | |||
Assets held for sale | 2,968 | 2,968 | 2,968 | 2,968 | 2,968 | |||
Prepaid expenses | 10,157 | 10,871 | 10,157 | 10,871 | 8,459 | |||
Other | 9,235 | 7,228 | 9,235 | 7,228 | 8,326 | |||
Total current assets | 216,577 | 210,797 | 216,577 | 210,797 | 219,706 | |||
Property, plant and equipment, net | 40,334 | 39,683 | 40,334 | 39,683 | 38,650 | |||
Right-of-use assets operating leases | 12,017 | 12,807 | 12,017 | 12,807 | 13,133 | |||
Intangible assets, net | 11,146 | 11,798 | 11,146 | 11,798 | 12,637 | |||
Deferred income taxes | 2,371 | 2,403 | 2,371 | 2,403 | 2,244 | |||
Other assets | 2,745 | 2,766 | 2,745 | 2,766 | 2,811 | |||
Total assets | 285,190 | 280,254 | 285,190 | 280,254 | 289,181 | |||
Current liabilities: | ||||||||
Current maturities of long-term debt | 2,000 | 2,000 | 2,000 | 2,000 | 2,010 | |||
Accounts payable | 32,611 | 28,906 | 32,611 | 28,906 | 36,499 | |||
Accrued liabilities | 62,929 | 55,939 | 62,929 | 55,939 | 61,586 | |||
Total current liabilities | 97,540 | 86,845 | 97,540 | 86,845 | 100,095 | |||
Long-term debt | 15,698 | 29,927 | 15,698 | 29,927 | 16,617 | |||
Lease obligations | 9,988 | 10,278 | 9,988 | 10,278 | 10,811 | |||
Accrued retirement benefits | 6,975 | 10,587 | 6,975 | 10,587 | 7,608 | |||
Deferred income taxes | 3,162 | 3,506 | 3,162 | 3,506 | 3,280 | |||
Other long-term liabilities | 5,917 | 5,346 | 5,917 | 5,346 | 5,253 | |||
Total liabilities | 139,280 | 146,489 | 139,280 | 146,489 | 143,664 | |||
Twin Disc shareholders' equity: | ||||||||
Preferred shares authorized: 200,000; issued: none; no par value | 0 | 0 | 0 | 0 | 0 | |||
Common shares authorized: 30,000,000; issued: 14,632,802; no par value | 39,661 | 41,444 | 39,661 | 41,444 | 42,855 | |||
Retained earnings | 119,496 | 110,243 | 119,496 | 110,243 | 120,299 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,059) | (5,982) | (4,059) | (5,982) | (5,570) | |||
Equity before treasury stock | 155,098 | 145,705 | 155,098 | 145,705 | 157,584 | |||
Less treasury stock, at cost (639,006 and 814,734 shares, respectively) | 9,802 | 12,562 | 9,802 | 12,562 | 12,491 | |||
Total Twin Disc shareholders' equity | 145,296 | 133,143 | 145,296 | 133,143 | 145,093 | |||
Noncontrolling interest | 614 | 622 | 614 | 622 | 424 | |||
Total equity | 145,910 | 140,175 | 133,765 | 124,768 | 145,910 | 133,765 | 145,517 | |
Total liabilities and equity | 285,190 | 280,254 | 285,190 | 280,254 | 289,181 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net (loss) income | 935 | (1,083) | 1,761 | (1,324) | (148) | 436 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 5,023 | 4,266 | ||||||
Gain on sale of assets | (42) | (4,203) | ||||||
Provision for deferred income taxes | 280 | (1,105) | ||||||
Stock compensation expense and other non-cash changes, net | 1,413 | 1,565 | ||||||
Net change in operating assets and liabilities | 6,422 | (927) | ||||||
Net cash provided by operating activities | 16,047 | 32 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Acquisition of property, plant, and equipment | (5,419) | (4,734) | ||||||
Proceeds from sale of fixed assets | 0 | 7,152 | ||||||
Proceeds on note receivable | 0 | |||||||
Other, net | (252) | 385 | ||||||
Net cash (used) provided by investing activities | (5,671) | 2,803 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Borrowings under revolving loan arrangements | 50,632 | 42,898 | ||||||
Repayments of revolving loan arrangements | (50,632) | (46,628) | ||||||
Repayments of other long-term debt | (1,010) | (707) | ||||||
Payments of finance lease obligations | (207) | (67) | (471) | (132) | ||||
Payments of withholding taxes on stock compensation | (1,772) | (463) | ||||||
Net cash used by financing activities | (3,813) | (5,032) | ||||||
Effect of exchange rate changes on cash | 1,195 | 3,204 | ||||||
Net change in cash | 7,758 | 1,007 | ||||||
Cash: | ||||||||
Beginning of period | 13,263 | 12,521 | 13,263 | 12,521 | ||||
End of period | 21,021 | 13,528 | 21,021 | 13,528 | ||||
Balance | 140,175 | 145,517 | 124,768 | 131,188 | 145,517 | 131,188 | ||
Net income (loss) attributable to Twin Disc | 930 | 1,746 | (243) | 324 | ||||
Balance | 145,910 | 140,175 | 133,765 | 124,768 | 145,910 | 133,765 | ||
Translation adjustment during the quarter | 5,190 | (3,036) | 8,392 | (6,290) | 2,154 | 2,102 | ||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (485) | 216 | (595) | 793 | (269) | 198 | ||
Retained Earnings [Member] | ||||||||
Other expense (income): | ||||||||
Net (loss) income | 930 | (1,173) | 1,746 | (1,422) | ||||
Net income (loss) attributable to Twin Disc | 324 | |||||||
Weighted average shares outstanding data: | ||||||||
Net (loss) income | 930 | (1,173) | 1,746 | (1,422) | ||||
Twin Disc shareholders' equity: | ||||||||
Total equity | 119,496 | 119,126 | 110,243 | 108,497 | 119,496 | 110,243 | 120,299 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net (loss) income | 930 | (1,173) | 1,746 | (1,422) | ||||
Cash: | ||||||||
Balance | 119,126 | 120,299 | 108,497 | 109,919 | 120,299 | 109,919 | ||
Net income (loss) attributable to Twin Disc | 324 | |||||||
Balance | 119,496 | 119,126 | 110,243 | 108,497 | 119,496 | 110,243 | ||
AOCI Attributable to Parent [Member] | ||||||||
Weighted average shares outstanding data: | ||||||||
Benefit plan adjustments, net of income taxes of $13, $13, $8 and $4, respectively | (108) | (171) | (1,122) | (89) | ||||
Translation adjustment during the quarter | 5,155 | (3,096) | 8,333 | (6,328) | 2,005 | |||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (485) | 216 | (595) | 793 | 198 | |||
Twin Disc shareholders' equity: | ||||||||
Total equity | (4,059) | (8,621) | (5,982) | (12,598) | (4,059) | (5,982) | $ (5,570) | |
Cash: | ||||||||
Balance | (8,621) | (5,570) | (12,598) | (6,974) | (5,570) | (6,974) | ||
Balance | (4,059) | (8,621) | (5,982) | (12,598) | $ (4,059) | (5,982) | ||
Translation adjustment during the quarter | 5,155 | (3,096) | 8,333 | (6,328) | 2,005 | |||
Benefit plan adjustments, net of tax | (1,211) | |||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | $ (485) | $ 216 | (595) | 793 | 198 | |||
Previously Reported [Member] | ||||||||
Net sales | 63,351 | 119,264 | ||||||
Cost of goods sold | 46,328 | 88,944 | ||||||
Gross profit | 17,023 | 30,320 | ||||||
Marketing, engineering and administrative expenses | 15,983 | 31,063 | ||||||
Restructuring expenses | 164 | 174 | ||||||
Other operating income | (4,150) | (4,150) | ||||||
Income from operations | 5,026 | 3,233 | ||||||
Other expense (income): | ||||||||
Interest expense | 594 | 1,160 | ||||||
Other expense (income), net | 789 | 1,050 | ||||||
Interest Income (Expense), Nonoperating, Net | 1,383 | 2,210 | ||||||
Income before income taxes and noncontrolling interest | 3,643 | 1,023 | ||||||
Income tax expense | 2,489 | 1,801 | ||||||
Net (loss) income | 1,154 | (778) | ||||||
Less: Net earnings attributable to noncontrolling interest, net of tax | (15) | (112) | ||||||
Net income (loss) attributable to Twin Disc | $ 1,139 | $ (890) | ||||||
Income (loss) per share data: | ||||||||
Basic income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.08 | $ (0.07) | ||||||
Diluted income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.08 | $ (0.07) | ||||||
Weighted average shares outstanding data: | ||||||||
Basic shares outstanding (in shares) | 13,460 | 13,434 | ||||||
Diluted shares outstanding (in shares) | 13,699 | 13,434 | ||||||
Net (loss) income | $ 1,154 | $ (778) | ||||||
Benefit plan adjustments, net of income taxes of $13, $13, $8 and $4, respectively | (515) | 3 | ||||||
Translation adjustment during the quarter | 8,392 | 2,005 | ||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (595) | 198 | ||||||
Comprehensive income | 8,436 | 1,428 | ||||||
Less: Comprehensive income attributable to noncontrolling interest | 74 | 210 | ||||||
Comprehensive income attributable to Twin Disc | 8,362 | 1,218 | ||||||
Current assets: | ||||||||
Cash | 13,528 | 13,528 | ||||||
Trade accounts receivable, net | 39,392 | 39,392 | ||||||
Inventories | 136,810 | 136,810 | ||||||
Assets held for sale | 2,968 | 2,968 | ||||||
Prepaid expenses | 10,871 | 10,871 | ||||||
Other | 7,228 | 7,228 | ||||||
Total current assets | 210,797 | 210,797 | ||||||
Property, plant and equipment, net | 39,683 | 39,683 | ||||||
Right-of-use assets operating leases | 12,807 | 12,807 | ||||||
Intangible assets, net | 11,798 | 11,798 | ||||||
Deferred income taxes | 2,403 | 2,403 | ||||||
Other assets | 2,766 | 2,766 | ||||||
Total assets | 280,254 | 280,254 | ||||||
Current liabilities: | ||||||||
Current maturities of long-term debt | 2,000 | 2,000 | ||||||
Accounts payable | 28,906 | 28,906 | ||||||
Accrued liabilities | 55,939 | 55,939 | ||||||
Total current liabilities | 86,845 | 86,845 | ||||||
Long-term debt | 29,927 | 29,927 | ||||||
Lease obligations | 10,278 | 10,278 | ||||||
Accrued retirement benefits | 10,587 | 10,587 | ||||||
Deferred income taxes | 3,506 | 3,506 | ||||||
Other long-term liabilities | 5,346 | 5,346 | ||||||
Total liabilities | 146,489 | 146,489 | ||||||
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 | 41,444 | 41,444 | ||||||
Retained earnings | 134,141 | 134,141 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (29,880) | (29,880) | ||||||
Equity before treasury stock | 145,705 | 145,705 | ||||||
Less treasury stock, at cost (639,006 and 814,734 shares, respectively) | 12,562 | 12,562 | ||||||
Total Twin Disc shareholders' equity | 133,143 | 133,143 | ||||||
Noncontrolling interest | 622 | 622 | ||||||
Total equity | 133,765 | 133,765 | ||||||
Total liabilities and equity | 280,254 | 280,254 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net (loss) income | 1,154 | (778) | ||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 4,266 | |||||||
Gain on sale of assets | (4,203) | |||||||
Provision for deferred income taxes | (1,105) | |||||||
Stock compensation expense and other non-cash changes, net | 1,565 | |||||||
Net change in operating assets and liabilities | 287 | |||||||
Net cash provided by operating activities | 32 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Acquisition of property, plant, and equipment | (4,734) | |||||||
Proceeds from sale of fixed assets | 7,152 | |||||||
Proceeds on note receivable | 0 | |||||||
Other, net | 385 | |||||||
Net cash (used) provided by investing activities | 2,803 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Borrowings under revolving loan arrangements | 42,898 | |||||||
Repayments of revolving loan arrangements | (46,628) | |||||||
Repayments of other long-term debt | (839) | |||||||
Payments of finance lease obligations | ||||||||
Payments of withholding taxes on stock compensation | (463) | |||||||
Net cash used by financing activities | (5,032) | |||||||
Effect of exchange rate changes on cash | 3,204 | |||||||
Net change in cash | 1,007 | |||||||
Cash: | ||||||||
Beginning of period | 12,521 | 12,521 | ||||||
End of period | 13,528 | 13,528 | ||||||
Net income (loss) attributable to Twin Disc | 1,139 | (890) | ||||||
Balance | 133,765 | 133,765 | ||||||
Translation adjustment during the quarter | 8,392 | 2,005 | ||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (595) | 198 | ||||||
Previously Reported [Member] | Retained Earnings [Member] | ||||||||
Other expense (income): | ||||||||
Net income (loss) attributable to Twin Disc | (890) | |||||||
Twin Disc shareholders' equity: | ||||||||
Total equity | 134,141 | 134,141 | ||||||
Cash: | ||||||||
Balance | 135,031 | 135,031 | ||||||
Net income (loss) attributable to Twin Disc | (890) | |||||||
Balance | 134,141 | 134,141 | ||||||
Previously Reported [Member] | AOCI Attributable to Parent [Member] | ||||||||
Weighted average shares outstanding data: | ||||||||
Translation adjustment during the quarter | 2,005 | |||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 198 | |||||||
Twin Disc shareholders' equity: | ||||||||
Total equity | (29,880) | (29,880) | ||||||
Cash: | ||||||||
Balance | (32,086) | (32,086) | ||||||
Balance | (29,880) | (29,880) | ||||||
Translation adjustment during the quarter | 2,005 | |||||||
Benefit plan adjustments, net of tax | 3 | |||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 198 | |||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | ||||||||
Net sales | 0 | 0 | ||||||
Cost of goods sold | 0 | 0 | ||||||
Gross profit | 0 | 0 | ||||||
Marketing, engineering and administrative expenses | 0 | 0 | ||||||
Restructuring expenses | 0 | 0 | ||||||
Other operating income | 0 | 0 | ||||||
Income from operations | 0 | 0 | ||||||
Other expense (income): | ||||||||
Interest expense | 0 | 0 | ||||||
Other expense (income), net | (607) | (1,214) | ||||||
Interest Income (Expense), Nonoperating, Net | (607) | (1,214) | ||||||
Income before income taxes and noncontrolling interest | 607 | 1,214 | ||||||
Income tax expense | 0 | 0 | ||||||
Net (loss) income | 607 | 1,214 | ||||||
Less: Net earnings attributable to noncontrolling interest, net of tax | 0 | 0 | ||||||
Net income (loss) attributable to Twin Disc | $ 607 | $ 1,214 | ||||||
Income (loss) per share data: | ||||||||
Basic income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.05 | $ 0.09 | ||||||
Diluted income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.05 | $ 0.09 | ||||||
Weighted average shares outstanding data: | ||||||||
Basic shares outstanding (in shares) | 0 | 0 | ||||||
Diluted shares outstanding (in shares) | 0 | 0 | ||||||
Net (loss) income | $ 607 | $ 1,214 | ||||||
Benefit plan adjustments, net of income taxes of $13, $13, $8 and $4, respectively | (607) | (1,214) | ||||||
Translation adjustment during the quarter | 0 | 0 | ||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 0 | 0 | ||||||
Comprehensive income | 0 | 0 | ||||||
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | ||||||
Comprehensive income attributable to Twin Disc | 0 | 0 | ||||||
Current assets: | ||||||||
Cash | 0 | 0 | ||||||
Trade accounts receivable, net | 0 | 0 | ||||||
Inventories | 0 | 0 | ||||||
Assets held for sale | 0 | 0 | ||||||
Prepaid expenses | 0 | 0 | ||||||
Other | 0 | 0 | ||||||
Total current assets | 0 | 0 | ||||||
Property, plant and equipment, net | 0 | 0 | ||||||
Right-of-use assets operating leases | 0 | 0 | ||||||
Intangible assets, net | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Other assets | 0 | 0 | ||||||
Total assets | 0 | 0 | ||||||
Current liabilities: | ||||||||
Current maturities of long-term debt | 0 | 0 | ||||||
Accounts payable | 0 | 0 | ||||||
Accrued liabilities | 0 | 0 | ||||||
Total current liabilities | 0 | 0 | ||||||
Long-term debt | 0 | 0 | ||||||
Lease obligations | 0 | 0 | ||||||
Accrued retirement benefits | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Other long-term liabilities | 0 | 0 | ||||||
Total liabilities | 0 | 0 | ||||||
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 | 0 | 0 | ||||||
Retained earnings | (23,898) | (23,898) | $ (25,100) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 23,898 | 23,898 | $ 25,100 | |||||
Equity before treasury stock | 0 | 0 | ||||||
Less treasury stock, at cost (639,006 and 814,734 shares, respectively) | 0 | 0 | ||||||
Total Twin Disc shareholders' equity | 0 | 0 | ||||||
Noncontrolling interest | 0 | 0 | ||||||
Total equity | 0 | 0 | ||||||
Total liabilities and equity | 0 | 0 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net (loss) income | 607 | 1,214 | ||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 0 | |||||||
Gain on sale of assets | 0 | |||||||
Provision for deferred income taxes | 0 | |||||||
Stock compensation expense and other non-cash changes, net | 0 | |||||||
Net change in operating assets and liabilities | (1,214) | |||||||
Net cash provided by operating activities | 0 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Acquisition of property, plant, and equipment | 0 | |||||||
Proceeds from sale of fixed assets | 0 | |||||||
Proceeds on note receivable | 0 | |||||||
Other, net | 0 | |||||||
Net cash (used) provided by investing activities | 0 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Borrowings under revolving loan arrangements | 0 | |||||||
Repayments of revolving loan arrangements | 0 | |||||||
Repayments of other long-term debt | 132 | |||||||
Payments of finance lease obligations | (132) | |||||||
Payments of withholding taxes on stock compensation | 0 | |||||||
Net cash used by financing activities | 0 | |||||||
Effect of exchange rate changes on cash | 0 | |||||||
Net change in cash | 0 | |||||||
Cash: | ||||||||
Beginning of period | 0 | 0 | ||||||
End of period | 0 | 0 | ||||||
Net income (loss) attributable to Twin Disc | 607 | 1,214 | ||||||
Balance | 0 | 0 | ||||||
Translation adjustment during the quarter | 0 | 0 | ||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 0 | 0 | ||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | Retained Earnings [Member] | ||||||||
Other expense (income): | ||||||||
Net income (loss) attributable to Twin Disc | 1,214 | |||||||
Twin Disc shareholders' equity: | ||||||||
Total equity | (23,898) | (23,898) | ||||||
Cash: | ||||||||
Balance | (25,112) | (25,112) | ||||||
Net income (loss) attributable to Twin Disc | 1,214 | |||||||
Balance | (23,898) | (23,898) | ||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | AOCI Attributable to Parent [Member] | ||||||||
Weighted average shares outstanding data: | ||||||||
Translation adjustment during the quarter | 0 | |||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 0 | |||||||
Twin Disc shareholders' equity: | ||||||||
Total equity | 23,898 | 23,898 | ||||||
Cash: | ||||||||
Balance | $ 25,112 | 25,112 | ||||||
Balance | 23,898 | 23,898 | ||||||
Translation adjustment during the quarter | 0 | |||||||
Benefit plan adjustments, net of tax | (1,214) | |||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | 0 | |||||||
As Reported Under New Method [Member] | ||||||||
Net sales | 63,351 | 119,264 | ||||||
Cost of goods sold | 46,328 | 88,944 | ||||||
Gross profit | 17,023 | 30,320 | ||||||
Marketing, engineering and administrative expenses | 15,983 | 31,063 | ||||||
Restructuring expenses | 164 | 174 | ||||||
Other operating income | (4,150) | (4,150) | ||||||
Income from operations | 5,026 | 3,233 | ||||||
Other expense (income): | ||||||||
Interest expense | 594 | 1,160 | ||||||
Other expense (income), net | 182 | (164) | ||||||
Interest Income (Expense), Nonoperating, Net | 776 | 996 | ||||||
Income before income taxes and noncontrolling interest | 4,250 | 2,237 | ||||||
Income tax expense | 2,489 | 1,801 | ||||||
Net (loss) income | 1,761 | 436 | ||||||
Less: Net earnings attributable to noncontrolling interest, net of tax | (15) | (112) | ||||||
Net income (loss) attributable to Twin Disc | $ 1,746 | $ 324 | ||||||
Income (loss) per share data: | ||||||||
Basic income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.13 | $ 0.02 | ||||||
Diluted income (loss) per share attributable to Twin Disc common shareholders (in dollars per share) | $ 0.13 | $ 0.02 | ||||||
Weighted average shares outstanding data: | ||||||||
Basic shares outstanding (in shares) | 13,460 | 13,434 | ||||||
Diluted shares outstanding (in shares) | 13,699 | 13,434 | ||||||
Net (loss) income | $ 1,761 | $ 436 | ||||||
Benefit plan adjustments, net of income taxes of $13, $13, $8 and $4, respectively | (1,122) | (1,211) | ||||||
Translation adjustment during the quarter | 8,392 | 2,005 | ||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | (595) | 198 | ||||||
Comprehensive income | 8,436 | 1,428 | ||||||
Less: Comprehensive income attributable to noncontrolling interest | 74 | 210 | ||||||
Comprehensive income attributable to Twin Disc | 8,362 | 1,218 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net (loss) income | 1,761 | 436 | ||||||
Cash: | ||||||||
Net income (loss) attributable to Twin Disc | 1,746 | 324 | ||||||
Translation adjustment during the quarter | 8,392 | 2,005 | ||||||
Unrealized (loss) gain on hedges, net of income taxes of $0, $0, $0 and $0, respectively | $ (595) | $ 198 |
Note P - Impact of Accounting_4
Note P - Impact of Accounting Method Change - Adjustment to Financial Statements (Details) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Jun. 30, 2023 | |
Benefit plan adjustments, income taxes | $ 13 | $ 13 | $ 8 | $ 4 | |
Unrealized loss on cash flow hedge, income taxes | $ 0 | $ 0 | $ 0 | $ 0 | |
Preferred Shares, Authorized (in shares) | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 |
Preferred Shares, Issued (in shares) | 0 | 0 | 0 | 0 | 0 |
Preferred Shares, No Par Value (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Common shares, authorized (in shares) | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 |
Common shares, shares issued (in shares) | 14,632,802 | 14,632,802 | 14,632,802 | 14,632,802 | 14,632,802 |
Common shares, no par value (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Treasury Stock, Common, Shares (in shares) | 639,006 | 819,398 | 639,006 | 819,398 | 814,734 |
Previously Reported [Member] | |||||
Benefit plan adjustments, income taxes | $ 1 | $ 3 | |||
Unrealized loss on cash flow hedge, income taxes | $ 0 | $ 0 | |||
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 | |||
As Reported Under New Method [Member] | |||||
Benefit plan adjustments, income taxes | $ 13 | $ 4 |