Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Sep. 16, 2014 | Dec. 31, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'ESPEY MFG & ELECTRONICS CORP | ' | ' |
Entity Central Index Key | '0000033533 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $51,915,281 |
Entity Common stock, closing sale price | ' | ' | $32.64 |
Entity Common Stock, Shares Outstanding | ' | 2,368,910 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
ASSETS | ' | ' |
Cash and cash equivalents | $9,556,891 | $9,888,628 |
Investment securities | 4,910,893 | 3,892,968 |
Trade accounts receivable, net | 3,194,678 | 7,204,226 |
Income tax receivable | 943,234 | ' |
Inventories: | ' | ' |
Raw materials | 1,616,990 | 1,607,112 |
Work-in-process | 792,618 | 607,165 |
Costs relating to contracts in process, net of advance payments of $142,616 in 2014 and $146,916 in 2013 | 8,201,642 | 9,159,493 |
Total inventories | 10,611,250 | 11,373,770 |
Deferred tax asset | 324,823 | 419,093 |
Prepaid expenses and other current assets | 177,776 | 315,736 |
Total current assets | 29,719,545 | 33,094,421 |
Property, plant and equipment, net | 2,678,901 | 2,421,332 |
Loan receivable | ' | 25,194 |
Total assets | 32,398,446 | 35,540,947 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable | 727,281 | 1,273,142 |
Accrued expenses: | ' | ' |
Salaries, wages and commissions | 413,989 | 370,554 |
Vacation | 693,286 | 748,040 |
Other | 579,953 | 629,878 |
Payroll and other taxes withheld and accrued | 53,553 | 50,891 |
Income taxes payable | ' | 430,463 |
Total current liabilities | 2,468,062 | 3,502,968 |
Deferred tax liability | 283,439 | 195,385 |
Total liabilities | 2,751,501 | 3,698,353 |
Common stock, par value $.33-1/3 per share. Authorized 10,000,000 shares; Issued 3,029,874 shares in 2014 and 2013. Outstanding 2,368,110 and 2,344,690 in 2014 and 2013, respectively (includes 97,500 and 116,666 Unearned ESOP Shares) | 1,009,958 | 1,009,958 |
Capital in excess of par value | 16,429,220 | 15,780,009 |
Accumulated other comprehensive (loss) income | -1,437 | 412 |
Retained earnings | 20,946,940 | 24,260,121 |
[TotalStockholdersEquityBeforyEsopAndTreasuryStock] | 38,384,681 | 41,050,500 |
Less: Unearned ESOP shares | -1,408,872 | -1,685,827 |
Cost of 661,764 and 685,184 shares of common stock in treasury in 2014 and 2013, respectively | -7,328,864 | -7,522,079 |
Total stockholders' equity | 29,646,945 | 31,842,594 |
Total liabilities and stockholders' equity | $32,398,446 | $35,540,947 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Progress payments | $142,616 | $146,916 |
Common stock, par value | $0.33 | $0.33 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,029,874 | 3,029,874 |
Common stock, shares outstanding | 2,368,110 | 2,344,690 |
Treasury stock, shares | 661,764 | 685,184 |
Statements_of_Comprehensive_In
Statements of Comprehensive Income (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | ' | ' |
Net sales | $27,136,919 | $34,298,210 |
Cost of sales | 22,605,673 | 23,598,641 |
Gross profit | 4,531,246 | 10,699,569 |
Selling, general and administrative expenses | 3,214,050 | 2,917,140 |
Operating income | 1,317,196 | 7,782,429 |
Other income | ' | ' |
Interest and dividend income | 40,612 | 35,813 |
Other | 108,141 | 47,945 |
[NonoperatingIncomeExpense] | 148,753 | 83,758 |
Income before income taxes | 1,465,949 | 7,866,187 |
Provision for income taxes | 298,064 | 2,303,762 |
Net income | 1,167,885 | 5,562,425 |
Other comprehensive income, net of tax: | ' | ' |
Unrealized loss on investment securities | -1,849 | -1,065 |
Total comprehensive income | $1,166,036 | $5,561,360 |
Net income per share: | ' | ' |
Basic | $0.52 | $2.52 |
Diluted | $0.51 | $2.48 |
Weighted average number of shares outstanding: | ' | ' |
Basic | 2,245,222 | 2,206,937 |
Diluted | 2,285,535 | 2,242,648 |
Satements_of_Changes_in_Stockh
Satements of Changes in Stockholders' Equity (USD $) | Common Stock [Member] | Capital in Excess of Par Value [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Unearned ESOP Shares [Member] | Total |
Balance, beginning at Jun. 30, 2012 | $1,009,958 | $15,093,512 | $1,477 | $23,053,762 | ($7,616,432) | ($1,974,829) | $29,567,448 |
Balance, beginning, shares at Jun. 30, 2012 | 2,320,822 | ' | ' | ' | 709,052 | ' | ' |
Net income | ' | ' | ' | 5,562,425 | ' | ' | 5,562,425 |
Other comprehensive loss, net of tax | ' | ' | -1,065 | ' | ' | ' | -1,065 |
Total comprehensive income | ' | ' | ' | ' | ' | ' | 5,561,360 |
Stock options exercised | ' | 268,049 | ' | ' | 225,225 | ' | 493,274 |
Stock options exercised, shares | 27,300 | ' | ' | ' | -27,300 | ' | ' |
Stock option expense | ' | 115,183 | ' | ' | ' | ' | 115,183 |
Dividends paid on common stock | ' | ' | ' | -4,356,066 | ' | ' | -4,356,066 |
Tax effect of stock options exercised | ' | 16,509 | ' | ' | ' | ' | 16,509 |
Sale of treasury stock to ESOP | ' | 46,954 | ' | ' | 19,148 | ' | 66,102 |
Sale of treasury stock to ESOP, shares | 2,321 | ' | ' | ' | -2,321 | ' | ' |
Purchase of treasury stock | ' | ' | ' | ' | -150,020 | ' | -150,020 |
Purchase of treasury stock, shares | -5,753 | ' | ' | ' | 5,753 | ' | ' |
Reduction of unearned ESOP shares | ' | 239,802 | ' | ' | ' | 289,002 | 528,804 |
Balance, ending at Jun. 30, 2013 | 1,009,958 | 15,780,009 | 412 | 24,260,121 | -7,522,079 | -1,685,827 | 31,842,594 |
Balance, ending, common shares at Jun. 30, 2013 | 2,344,690 | ' | ' | ' | 685,184 | ' | ' |
Net income | ' | ' | ' | 1,167,885 | ' | ' | 1,167,885 |
Other comprehensive loss, net of tax | ' | ' | -1,849 | ' | ' | ' | -1,849 |
Total comprehensive income | ' | ' | ' | ' | ' | ' | 1,166,036 |
Stock options exercised | ' | 247,876 | ' | ' | 193,215 | ' | 441,091 |
Stock options exercised, shares | 23,420 | ' | ' | ' | -23,420 | ' | -23,420 |
Stock option expense | ' | 99,050 | ' | ' | ' | ' | 99,050 |
Dividends paid on common stock | ' | ' | ' | -4,481,066 | ' | ' | -4,481,066 |
Tax effect of stock options exercised | ' | 26,242 | ' | ' | ' | ' | 26,242 |
Reduction of unearned ESOP shares | ' | 276,043 | ' | ' | ' | 276,955 | 552,998 |
Balance, ending at Jun. 30, 2014 | $1,009,958 | $16,429,220 | ($1,437) | $20,946,940 | ($7,328,864) | ($1,408,872) | $29,646,945 |
Balance, ending, common shares at Jun. 30, 2014 | 2,368,110 | ' | ' | ' | 661,764 | ' | ' |
Satements_of_Changes_in_Stockh1
Satements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Other comprehensive income, tax portion | $995 | $573 |
Dividends paid per share | $2 | $1.98 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows From Operating Activities: | ' | ' |
Net income | $1,167,885 | $5,562,425 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Excess tax benefits from share-based compensation | -26,242 | -16,509 |
Stock-based compensation | 99,050 | 115,183 |
Depreciation | 452,390 | 418,149 |
ESOP compensation expense | 552,998 | 528,804 |
Loss on disposal of assets | 13 | 6,222 |
Deferred income tax expense (benefit) | 183,319 | -22,641 |
Changes in assets and liabilities: | ' | ' |
Decrease (increase) in trade receivable, net | 4,009,548 | -3,986,351 |
Increase in income tax receivable | -943,234 | ' |
Decrease in inventories, net | 762,520 | 271,936 |
Decrease (increase) in prepaid expenses and other current assets | 137,960 | -115,414 |
Decrease in accounts payable | -545,861 | -35,895 |
Increase (decrease) in accrued salaries, wages and commissions | 43,435 | -47,123 |
(Decrease) increase in vacation accrual | -54,754 | 40,280 |
(Decrease) increase in other accrued expenses | -49,925 | 187,183 |
Increase in payroll and other taxes withheld and accrued | 2,662 | 6,005 |
(Decrease) increase in income taxes payable | -404,221 | 373,376 |
Net cash provided by operating activities | 5,387,543 | 3,285,630 |
Cash Flows From Investing Activities: | ' | ' |
Additions to property, plant and equipment | -709,972 | -322,507 |
Proceeds from loan receivable | 25,194 | 42,177 |
Purchase of investment securities | -3,456,934 | -7,359,816 |
Proceeds from sale/maturity of investment securities | 2,436,165 | 6,649,921 |
Net cash used in investing activities | -1,705,547 | -990,225 |
Cash Flows From Financing Activities: | ' | ' |
Sale of treasury stock | ' | 66,102 |
Dividends on common stock | -4,481,066 | -4,356,066 |
Purchase of treasury stock | ' | -150,020 |
Proceeds from exercise of stock options | 441,091 | 493,274 |
Excess tax benefits from share-based compensation | 26,242 | 16,509 |
Net cash used in financing activities | -4,013,733 | -3,930,201 |
Decrease in cash and cash equivalents | -331,737 | -1,634,796 |
Cash and cash equivalents, beginning of year | 9,888,628 | 11,523,424 |
Cash and cash equivalents, end of year | 9,556,891 | 9,888,628 |
Supplemental Schedule of Cash Flow Information: | ' | ' |
Income taxes paid | $1,462,200 | $1,960,000 |
Nature_of_operations
Nature of operations | 12 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of operations | ' |
Note 1. Nature of operations | |
Espey Mfg. & Electronics Corp. (the Company) is a manufacturer of electronic equipment used primarily in military and industrial applications. The principal markets for the Company's products are companies that provide electronic support to both military and industrial applications. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Summary of Significant Accounting Policies | ' | |||
Note 2. Summary of Significant Accounting Policies | ||||
Inventory Valuation, Cost Estimation and Revenue Recognition | ||||
Raw materials are valued at weighted average cost. | ||||
Inventoried work relating to contracts in process and work in process is valued at actual production cost, including factory overhead incurred to date. Work in process represents spare units; parts and other inventory items acquired or produced to service units previously sold or to meet anticipated future orders. The cost elements of contracts in process and work in process consist of production costs of goods and services currently in process and overhead. Provision for losses on contracts is made when the existence of such losses becomes probable and estimable. The costs attributed to units delivered under contracts are based on the estimated average cost of all units expected to be produced. Certain contracts are expected to extend beyond twelve months. | ||||
Revenue is recognized on contracts in the period in which the units are delivered and billed (units-of-delivery method). A significant portion of our business is comprised of development and production contracts. Generally, revenues on long-term fixed-price contracts are recorded on a percentage of completion basis using units of delivery as the measurement basis for progress toward completion. | ||||
Percentage of completion accounting requires judgment relative to expected sales, estimating costs and making assumptions related to technical issues and delivery schedules. Contract costs include material, subcontract costs, labor and an allocation of overhead costs. The estimation of cost at completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete the contract. Given the significance of the estimation processes and judgments described above, it is possible that materially different amounts of expected sales and contract costs could be recorded if different assumptions were used, based on changes in circumstances, in the estimation process. When a change in expected sales value or estimated cost is determined, changes are reflected in current period earnings. | ||||
Depreciation | ||||
Depreciation of plant and equipment is computed on a straight-line basis over the estimated useful lives of the assets. | ||||
Estimated useful lives of depreciable assets are as follows: | ||||
Buildings and improvements | 10 – 40 years | |||
Machinery and equipment | 3 – 20 years | |||
Furniture and fixtures | 7 – 10 years | |||
Income Taxes | ||||
The Company follows the provisions of ASC Topic 740-10, "Accounting for Income Taxes." | ||||
Under the provisions of ASC 740-10, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. In addition, ASC 740-10 requires that the tax benefit of tax-deductible dividends on unallocated ESOP shares be recorded as a direct addition to retained earnings rather than as a reduction of income tax expense. | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents consist of cash in banks, certificates of deposit, and money market funds. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | ||||
Investment Securities | ||||
The Company accounts for its investments in accordance with ASC 320-10-25, “Accounting for Certain Investments in Debt and Equity Securities.” Investment securities at June 30, 2014 and June 30, 2013 consist of certificates of deposit and municipal bonds. The Company classifies investment securities as available-for-sale. Unrealized holding gains and losses, net of related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity until realized. Realized gains and losses for securities classified as available-for-sale are included in earnings and are determined using the specific identification method. Interest income is recognized when earned. Fair values are based on quoted market prices available as of the balance sheet date. | ||||
Accounts receivable and allowance for doubtful accounts | ||||
The Company extends credit to its customers in the normal course of business and collateral is generally not required for trade receivables. Exposure to credit risk is controlled through the use of credit approvals, credit limits and monitoring procedures. Accounts receivable are reported net of an allowance for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances. An account is generally considered past due after thirty (30) days from the invoice date. Based on these factors, there was an allowance for doubtful accounts of $3,000 at June 30, 2014 and 2013. Changes to the allowance for doubtful accounts are charged to expense and reduced by charge-offs, net of recoveries. | ||||
Per Share Amounts | ||||
ASC 260-10 “Earnings Per Share” requires the Company to calculate net income (loss) per share based on basic and diluted net income (loss) per share, as defined. Basic EPS excludes dilution and is computed by dividing net income (loss) by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilutive effect of outstanding options issued by the Company are reflected in diluted EPS using the treasury stock method. Under the treasury stock method, options will only have a dilutive effect when the average market price of common stock during the period exceeds the exercise price of the options. | ||||
Comprehensive Income | ||||
Comprehensive income consists of net income and other comprehensive income. Other comprehensive income for fiscal years ended June 30, 2014 and 2013 consists of unrealized holding gains and losses on available-for-sale securities. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Investment Tax Credits | ||||
Investment tax credits are accounted for as a reduction of income tax expense in the year taxes payable are reduced. | ||||
Reclassifications | ||||
Certain reclassifications may have been made to the prior year financial statements to conform to the current year presentation. | ||||
Recently Issued Accounting Standards | ||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. | ||||
The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our financial statements and have not yet determined the method by which we will adopt the standard in fiscal 2017. | ||||
Impairment of Long-Lived Assets | ||||
Long-lived assets, including property, plant, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and no longer depreciated. The assets and liabilities of a disposed group classified as held for sale are presented separately in the appropriate asset and liability sections of the balance sheet. | ||||
Concentrations of Risk | ||||
The market for our defense electronics products is largely dependent on the availability of new contracts from the United States and foreign governments to prime contractors to which we provide components. Any decline in expenditures by the United States or foreign governments may have an adverse effect on our financial performance. | ||||
Generally, U.S. Government contracts are subject to procurement laws and regulations. Some of the Company’s contracts are governed by the Federal Acquisition Regulation (FAR), which lays out uniform policies and procedures for acquiring goods and services by the U.S. Government, and agency-specific acquisition regulations that implement or supplement the FAR. For example, the Department of Defense implements the FAR through the Defense Federal Acquisition Regulation (DFAR). | ||||
The FAR also contains guidelines and regulations for managing a contract after award, including conditions under which contracts may be terminated, in whole or in part, at the government’s convenience or for default. If a contract is terminated for the convenience of the government, a contractor is entitled to receive payments for its allowable costs and, in general, the proportionate share of fees or earnings for the work done. If a contract is terminated for default, the government generally pays for only the work it has accepted. These regulations also subject the Company to financial audits and other reviews by the government of its costs, performance, accounting and general business practices relating to its contracts, which may result in adjustment of the Company’s contract-related costs and fees. |
Investment_in_Fair_Value
Investment in Fair Value | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Investment in Fair Value | ' | ||||||||||||||||
Note 3. Investment in Fair Value | |||||||||||||||||
ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||
§ | Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | ||||||||||||||||
§ | Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||
§ | Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||
Investment securities at June 30, 2014 and June 30, 2013 consist of certificates of deposit and municipal bonds which are classified as available-for-sale securities and have been determined to be level 1 assets. The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities by major security type at June 30, 2014 and June 30, 2013 are as follows: | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
2014 | |||||||||||||||||
Certificates of deposit | $ | 4,063,000 | $ | — | $ | — | $ | 4,063,000 | |||||||||
Municipal bonds | 850,103 | 2,857 | (5,067 | ) | 847,893 | ||||||||||||
2014 Total investment securities | $ | 4,913,103 | $ | 2,857 | $ | (5,067 | ) | $ | 4,910,893 | ||||||||
2013 | |||||||||||||||||
Certificates of deposit | $ | 2,600,000 | $ | — | $ | — | $ | 2,600,000 | |||||||||
Municipal bonds | 1,292,335 | 5,414 | (4,780 | ) | 1,292,968 | ||||||||||||
2013 Total investment securities | $ | 3,892,335 | $ | 5,414 | $ | (4,780 | ) | $ | 3,892,968 | ||||||||
The portfolio is diversified and highly liquid and primarily consists of investment grade fixed income instruments. At June 30, 2014, the Company did not have any investments in individual securities that have been in a continuous loss position to be temporary for more than 12 months. Due to the fact that the decline in market value is attributable to changes in interest rates and not credit quality, and because the severity and duration of the unrealized losses were not significant, the Company considered these unrealized losses to be temporary at June 30, 2014. | |||||||||||||||||
As of June 30, 2014 and June 30, 2013, the contractual maturities of available-for-sale securities were as follows: | |||||||||||||||||
Years to Maturity | |||||||||||||||||
Less than | One to | ||||||||||||||||
One Year | Five Years | Total | |||||||||||||||
2014 | |||||||||||||||||
Available-for-sale | $ | 4,434,575 | $ | 476,318 | $ | 4,910,893 | |||||||||||
2013 | |||||||||||||||||
Available-for-sale | $ | 2,077,769 | $ | 1,815,199 | $ | 3,892,968 |
Contracts_in_Process
Contracts in Process | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Contractors [Abstract] | ' | ||||||||
Contracts in Process | ' | ||||||||
Note 4. Contracts in Process | |||||||||
Contracts in process at June 30, 2014 and 2013 are as follows: | |||||||||
2014 | 2013 | ||||||||
Gross contract value | $ | 35,663,830 | $ | 42,069,522 | |||||
Costs related to contracts in process, net of progress payments | |||||||||
of $142,616 in fiscal 2014 and $146,916 in fiscal 2013 | 8,201,642 | 9,159,493 | |||||||
Included in costs relating to contracts in process at June 30, 2014 and 2013 are costs of $4,391,834 and $4,155,629, respectively, relative to contracts that may not be completed within the ensuing year. Under the units-of-delivery method, the related sale and cost of sales will not be reflected in the statement of comprehensive income until the units under contract are shipped. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
Note 5. Property, Plant and Equipment | |||||||||
A summary of the original cost of property, plant and equipment at June 30, 2014 and 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
Land | $ | 45,000 | $ | 45,000 | |||||
Building and improvements | 4,256,890 | 4,254,834 | |||||||
Machinery and equipment | 8,340,897 | 7,650,014 | |||||||
Furniture and fixtures | 160,867 | 160,867 | |||||||
12,803,654 | 12,110,715 | ||||||||
Accumulated depreciation | (10,124,753 | ) | (9,689,383 | ) | |||||
Property, plant and equipment, net | $ | 2,678,901 | $ | 2,421,332 | |||||
Depreciation expense was $452,390 and $418,149, during the years ended June 30, 2014 and 2013, respectively. |
Pension_Expense
Pension Expense | 12 Months Ended |
Jun. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension Expense | ' |
Note 6. Pension Expense | |
Under terms of a negotiated union contract which expires on June 30, 2015, the Company is obligated to make contributions to a union-sponsored International Brotherhood of Electrical Workers Local 1799 defined benefit pension plan (Plan identifying number is 14-6065199) covering eligible employees. Such contributions and expenses are based upon hours worked at a specified rate and amounted to $96,776 in fiscal 2014 and $98,712 in fiscal 2013. These contributions represent more than five percent of the total plan contributions. For the year beginning January 1, 2014, the Plan is in the “green zone” which means it is neither endangered nor critical status. For the year beginning January 1, 2013, the Plan was in “critical status.” Plan Trustees entered into a Funding Improvement Plan which calls for an increase in hourly contributions starting January 1, 2016 of $0.04 for each year for five years thereafter. | |
The Company sponsors a 401(k) plan for non-union workers with employee and employer matching contributions. The employer match is 10% of the employee contribution and was $47,847 and $40,521, for fiscal years 2014 and 2013, respectively. |
Provision_for_Income_Taxes
Provision for Income Taxes | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Provision for Income Taxes | ' | ||||||||
Note 7. Provision for Income Taxes | |||||||||
A summary of the components of the provision for income taxes for the years ended June 30, 2014 and 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
Current tax expense - federal | $ | 113,245 | $ | 2,293,795 | |||||
Current tax expense - state | 1,500 | 32,608 | |||||||
Deferred tax expense (benefit) | 183,319 | (22,641 | ) | ||||||
Provision for income taxes | $ | 298,064 | $ | 2,303,762 | |||||
Deferred income taxes reflect the impact of "temporary differences" between the amount of assets and liabilities for financial reporting purposes and such amounts measured by tax laws and regulations. These "temporary differences" are determined in accordance with ASC 740-10. | |||||||||
The combined U.S. federal and state effective income tax rates of 20.3% and 29.3%, for 2014 and 2013 respectively, differed from the statutory U.S. federal income tax rate for the following reasons: | |||||||||
2014 | 2013 | ||||||||
U.S. federal statutory income tax rate | 34 | % | 34 | % | |||||
Increase (reduction) in rate resulting from: | |||||||||
State franchise tax, net of federal income tax benefit | 0.8 | 0.3 | |||||||
ESOP cost versus Fair Market Value | 6.4 | 1 | |||||||
Dividend on allocated ESOP shares | (20.4 | ) | (3.4 | ) | |||||
Qualified production activities | (0.8 | ) | (2.9 | ) | |||||
Stock-based compensation | 0.1 | 0.3 | |||||||
Other | 0.2 | — | |||||||
Effective tax rate | 20.3 | % | 29.3 | % | |||||
For the years ended June 30, 2014 and 2013 deferred income tax expense of $183,319 and benefit of $22,641, respectively, result from the changes in temporary differences for each year. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of June 30, 2014 and 2013 are presented as follows: | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Accrued expenses | $ | 266,255 | $ | 348,085 | |||||
ESOP | 116,981 | 121,315 | |||||||
Stock-based compensation | 23,854 | 19,946 | |||||||
Inventory - effect on uniform capitalization | 32,749 | 49,032 | |||||||
Other | 1,191 | 2,252 | |||||||
Total deferred tax assets | $ | 441,030 | $ | 540,630 | |||||
Deferred tax liabilities: | |||||||||
Unrealized (loss) gain on investment securities | (773 | ) | 222 | ||||||
Property, plant and equipment - principally due | |||||||||
to differences in depreciation methods | 400,419 | 316,700 | |||||||
Total deferred tax liabilities | 399,646 | 316,922 | |||||||
Net deferred tax asset | $ | 41,384 | $ | 223,708 | |||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projection for future taxable income over the period in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these temporary differences without consideration of a valuation allowance. | |||||||||
As the result of the implementation of the FASB interpretation ASC 740-10, Accounting for Uncertainty in Income Taxes – An Interpretation of ASC 740, the Company recognized no material adjustments to unrecognized tax benefits. As of June 30, 2014 and 2013, the Company has no unrecognized tax benefits. | |||||||||
The Company recognizes interest and penalties related to uncertain tax positions, if any, in general and administrative expense. As of June 30, 2014, the Company has not recorded any provision for accrued interest and penalties related to uncertain tax positions. | |||||||||
By statute, tax years ended June 30, 2014, 2013, 2012, and 2011 remain open to examination by the major taxing jurisdictions to which the Company is subject. |
Significant_Customers
Significant Customers | 12 Months Ended |
Jun. 30, 2014 | |
Significant Customers | ' |
Significant Customers | ' |
Note 8. Significant Customers | |
A significant portion of the Company's business is the production of military and industrial electronic equipment for use by the U.S. and foreign governments and certain industrial customers. Sales to two domestic customers and one foreign customer (based in United Kingdom) accounted for 47% and 12%, respectively of total sales in fiscal 2014. Sales to two domestic customers and one foreign customer (based in United Kingdom) accounted for 45% and 18%, respectively of total sales in fiscal 2013. | |
Export sales in fiscal 2014 and fiscal 2013 were approximately $3,030,000 and $2,671,000, respectively. |
Stock_Rights_Plan
Stock Rights Plan | 12 Months Ended |
Jun. 30, 2014 | |
Stock Rights Plan | ' |
Stock Rights Plan | ' |
Note 9. Stock Rights Plan | |
The Company has a Shareholder Rights Plan that expires on December 31, 2019. Under this plan, common stock purchase rights were distributed as a dividend at the rate of one right for each share of common stock outstanding as of or issued subsequent to April 14, 1989. Each right entitles the holder thereof to buy one-half share of common stock of the Company at an exercise price of $25 per share subject to adjustment. The rights are exercisable only if a person or group acquires beneficial ownership of 15% or more of the Company's common stock or commences a tender or exchange offer which, if consummated, would result in the offeror individually or, together with all affiliates and associates thereof, being the beneficial owner of 15% or more of the Company's common stock. | |
If a 15% or larger shareholder should engage in certain self-dealing transactions or a merger with the Company in which the Company is the surviving corporation and its shares of common stock are not changed or converted into equity securities of any other person, or if any person were to become the beneficial owner of 15% or more of the Company's common stock, then each right not owned by such shareholder or related parties of such shareholder (all of which will be void) will entitle its holder to purchase, at the right's then current exercise price, shares of the Company's common stock having a value of twice the right's exercise price. In addition, if the Company is involved in any other merger or consolidation with, or sells 50% or more of its assets or earning power to another person, each right will entitle its holder to purchase, at the right's then current exercise price, shares of common stock of such other person having a value of twice the right's exercise price. | |
The Company generally is entitled to redeem the rights at one cent per right at any time until the 15th day (or 25th day if extended by the Company's Board of Directors) following public announcement that a 15% position has been acquired or the commencement of a tender or exchange offer which, if consummated, would result in the offeror, together with all affiliates and associates thereof, being the beneficial owner of 15% or more of the Company's common stock. |
Employee_Stock_Ownership_Plan
Employee Stock Ownership Plan | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Employee Stock Ownership Plan | ' | ||||||||
Employee Stock Ownership Plan | ' | ||||||||
Note 10. Employee Stock Ownership Plan | |||||||||
The Company sponsors a leveraged employee stock ownership plan (the "ESOP") that covers all nonunion employees who work 1,000 or more hours per year and are employed on June 30. The Company makes annual contributions to the ESOP equal to the ESOP's debt service less dividends on unallocated shares received by the ESOP. All dividends on unallocated shares received by the ESOP are used to pay debt service. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. As the debt is repaid, shares are released and allocated to active employees, based on the proportion of debt service paid in the year. The Company accounts for its ESOP in accordance with FASB ASC 718-40. Accordingly, the shares purchased by the ESOP are reported as Unearned ESOP Shares in the statement of financial position. As shares are released or committed-to-be-released, the Company reports compensation expense equal to the current average market price of the shares, and the shares become outstanding for earnings-per-share (EPS) computations. ESOP compensation expense was $552,998 and $528,804 for the years ended June 30, 2014 and 2013, respectively. The ESOP shares as of June 30, 2014 and 2013 were as follows: | |||||||||
2014 | 2013 | ||||||||
Allocated shares | 472,192 | 469,338 | |||||||
Unreleased shares | 97,500 | 116,666 | |||||||
Total shares held by the ESOP | 569,692 | 586,004 | |||||||
Fair value of unreleased shares | $ | 2,449,200 | $ | 2,998,316 |
Stock_Based_Compensation
Stock Based Compensation | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||
Note 11. Stock-based Compensation | |||||||||||||||||
The Company follows ASC 718 in establishing standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services, as well as transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the financial statements based on the fair value of the share-based payment. ASC 718 establishes fair value as the measurement objective in accounting for share-based payment transactions with employees, except for equity instruments held by employee share ownership plans. | |||||||||||||||||
Total stock-based compensation expense recognized in the statement of comprehensive income for the three-month period ended June 30, 2014 and 2013, was $21,329 and $27,406, respectively, before income taxes. The related total deferred tax benefit was approximately $2,308 and $3,116, for the same periods. Total stock-based compensation expense recognized in the statement of comprehensive income for the fiscal years ended June 30, 2014 and 2013, was $99,050 and $115,183, respectively, before income taxes. The related total deferred tax benefit was approximately $10,862 and $12,968, for the same periods. ASC 718 requires the tax benefits resulting from tax deductions in excess of the compensation cost recognized for those options to be classified and reported as both an operating cash outflow and a financing cash inflow. | |||||||||||||||||
As of June 30, 2014, there was approximately $60,800 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the next 1.25 years. The total deferred tax benefit related to these awards is approximately $6,395. | |||||||||||||||||
The Company has one employee stock option plan under which options may be granted, the 2007 Stock Option and Restricted Stock Plan (the "2007 Plan"). The Board of Directors may grant options to acquire shares of common stock to employees of the Company at the fair market value of the common stock on the date of grant. Generally, options granted have a two-year vesting period based on two years of continuous service and have a ten-year contractual life. Option grants provide for accelerated vesting if there is a change in control. Shares issued upon the exercise of options are from those held in Treasury. The 2007 Plan was approved by the Company's shareholders at the Company's Annual Meeting on November 30, 2007 and supersedes the Company's 2000 Stock Option Plan (the "2000 Plan"). Options covering 400,000 shares are authorized for issuance under the 2007 Plan, of which 190,100 have been granted and 133,425 are outstanding as of June 30, 2014. While no further grants of options may be made under the 2000 Plan, as of June 30, 2014, 28,130 options remain outstanding, vested and exercisable from the 2000 Plan. | |||||||||||||||||
ASC 718 requires the use of a valuation model to calculate the fair value of stock-based awards. The Company has elected to use the Black-Scholes option valuation model, which incorporates various assumptions including those for volatility, expected life and interest rates. | |||||||||||||||||
The table below outlines the weighted average assumptions that the Company used to calculate the fair value of each option award for the year ended June 30, 2014. There were no options awarded for the twelve months ended June 30, 2013. | |||||||||||||||||
2014 | |||||||||||||||||
Dividend yield | 3.67 | % | |||||||||||||||
Expected stock price volatility | 25.31 | % | |||||||||||||||
Risk-free interest rate | 1.23 | % | |||||||||||||||
Expected option life (in years) | 3.8 yrs | ||||||||||||||||
Weighted average fair value per share | |||||||||||||||||
of options granted during the period | $ | 3.777 | |||||||||||||||
The Company pays dividends quarterly and has paid a special cash dividend of $1.00 per share in each of fiscal years 2014 and 2013. Our Board of Directors assesses the Company’s dividend policy periodically. There is no assurance that the Board of Directors will either maintain the amount of the regular cash dividend or declare a special dividend during any future years. Expected stock price volatility is based on the historical volatility of the Company’s stock. The risk-free interest rate is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the expected life of the options. The expected option life (in years) represents the estimated period of time until exercise and is based on actual historical experience. | |||||||||||||||||
The following table summarizes stock option activity during the twelve months ended June 30, 2014: | |||||||||||||||||
Employee Stock Options Plan | |||||||||||||||||
Weighted | |||||||||||||||||
Number of | Weighted | Average | |||||||||||||||
Shares | Average | Remaining | Aggregate | ||||||||||||||
Subject | Exercise | Contractual | Intrinsic | ||||||||||||||
to Option | Price | Term | Value | ||||||||||||||
Balance at July 1, 2013 | 159,250 | $ | 21.12 | 6.3 | |||||||||||||
Granted | 31,600 | $ | 27.22 | 9.15 | |||||||||||||
Exercised | (23,420 | ) | $ | 18.83 | — | ||||||||||||
Forfeited or expired | (5,875 | ) | $ | 27.13 | — | ||||||||||||
Outstanding at June 30, 2014 | 161,555 | $ | 22.43 | 6.02 | $ | 491,514 | |||||||||||
Vested or expected to vest at June 30, 2014 | 158,440 | $ | 22.33 | 5.95 | $ | 491,514 | |||||||||||
Exercisable at June 30, 2014 | 135,580 | $ | 21.51 | 5.42 | $ | 491,514 | |||||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing sale price of the Company’s common stock as reported on the NYSE MKT on June 30, 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders if all option holders had exercised their options on June 30, 2014. This amount changes based on the fair market value of the Company’s common stock. The total intrinsic values of the options exercised during the twelve months ended June 30, 2014 and 2013 was $155,671 and $82,656, respectively. | |||||||||||||||||
The following table summarizes changes in non-vested stock options during the twelve months ended June 30, 2014: | |||||||||||||||||
Weighted | |||||||||||||||||
Number of | Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Subject | Fair Value | ||||||||||||||||
to Option | (per Option) | ||||||||||||||||
Non-Vested at July 1, 2013 | 57,950 | $ | 4.321 | ||||||||||||||
Granted | 31,600 | 3.777 | |||||||||||||||
Vested | (57,700 | ) | 4.323 | ||||||||||||||
Forfeited or expired | (5,875 | ) | 3.782 | ||||||||||||||
Non-Vested at June 30, 2014 | 25,975 | $ | 3.777 |
Financial_InstrumentsConcentra
Financial Instruments/Concentration of Credit Risk | 12 Months Ended |
Jun. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Financial Instruments/Concentration of Credit Risk | ' |
Note 12. Financial Instruments/Concentration of Credit Risk | |
The carrying amounts of financial instruments, including cash and cash equivalents, short term investments, accounts receivable, accounts payable and accrued expenses, approximated fair value as of June 30, 2014 and 2013 because of the relatively short maturities of these instruments. | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term investments and accounts receivable. The Company maintains cash and cash equivalents with various financial institutions. At times such investments may be in excess of FDIC insurance limits. As disclosed in note 8, a significant portion of the Company's business is the production of military and industrial electronic equipment for use by the U.S. and foreign governments and certain industrial customers. The related accounts receivable balance, as a percentage of the Company's total trade accounts receivable balance, was 61% represented by three customers at June 30, 2014, and 52% by two customers at June 30, 2013. | |
Although the Company's exposure to credit risk associated with nonpayment of these concentrated balances is affected by the conditions or occurrences within the U.S. and foreign governments, the Company believes that its trade accounts receivable credit risk exposure is limited. The Company performs ongoing credit evaluations of its customer's financial conditions and requires collateral, such as progress payments, in certain circumstances. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. |
Related_Parties
Related Parties | 12 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Parties | ' |
Note 13. Related Parties | |
The administration of the shares of common stock held by the ESOP Trust is subject to the Second Amended and Restated Plan, effective as of July 1, 2002, creating the Trust, and a Trust Agreement dated July 15, 2005. The Trustees’ rights with respect to the disposition of shares are governed by the terms of the Plan and the Trust Agreement. As to shares that have been allocated to the accounts of participants in the ESOP Trust, the Plan provides that the Trustees are required to vote such shares in accordance with instructions received from the participants. As to unallocated shares and allocated shares for which voting instructions have not been received from participants, the Plan provides that the Trustees are required to vote such shares in accordance with the direction of a Committee, appointed by the Board of Directors of the Company under the terms of the Plan and Trust Agreement. See note 10 for additional information regarding the ESOP. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Note 14. Commitments and Contingencies | |
The Company at certain times enters into standby letters of credit agreements with financial institutions primarily relating to the guarantee of future performance on certain contracts. Contingent liabilities on outstanding standby letters of credit agreements aggregated to zero at June 30, 2014 and 2013. The Company, as a U.S. Government contractor, is subject to audits, reviews, and investigations by the U.S. Government related to its negotiation and performance of government contracts and its accounting for such contracts. Failure to comply with applicable U.S. Government standards by a contractor may result in suspension from eligibility for award of any new government contract and a guilty plea or conviction may result in debarment from eligibility for awards. The government may, in certain cases, also terminate existing contracts, recover damages, and impose other sanctions and penalties. As a result of contract audits the Company will determine a range of possible outcomes and in accordance with ASC 450 “Contingencies” the Company will accrue amounts within a range that appears to be its best estimate of a possible outcome. Adjustments are made to accruals, if any, periodically based on current information. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Stockholders' Equity | ' | ||||||||
Note 15. Stockholders' Equity | |||||||||
Reservation of Shares | |||||||||
The Company has reserved common shares for future issuance as follows as of June 30, 2014: | |||||||||
Stock options outstanding | 161,555 | ||||||||
Stock options available for issuance | 226,925 | ||||||||
Number of common shares reserved | 388,480 | ||||||||
The following table sets forth the reconciliation of the numerators and denominators of the basic and diluted per share computations for continuing operations for the years ended June 30: | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net Income | $ | 1,167,885 | $ | 5,562,425 | |||||
Denominator: | |||||||||
Basic EPS: | |||||||||
Common shares outstanding, beginning of period | 2,344,690 | 2,320,822 | |||||||
Unearned ESOP shares | (116,666 | ) | (136,666 | ) | |||||
Weighted average common shares issued during the period | 9,991 | 17,810 | |||||||
Weighted average common shares purchased during the period | — | (2,550 | ) | ||||||
Weighted average ESOP shares earned during the period | 7,207 | 7,521 | |||||||
Denominator for basic earnings per common shares – | |||||||||
Weighted average common shares | 2,245,222 | 2,206,937 | |||||||
Diluted EPS: | |||||||||
Common shares outstanding, beginning of period | 2,344,690 | 2,320,822 | |||||||
Unearned ESOP shares | (116,666 | ) | (136,666 | ) | |||||
Weighted average common shares issued during the period | 9,991 | 17,810 | |||||||
Weighted average common shares purchased during the period | — | (2,550 | ) | ||||||
Weighted average ESOP shares earned during the period | 7,207 | 7,521 | |||||||
Weighted average dilutive effect of issued or forfeited shares | 40,313 | 35,711 | |||||||
Denominator for diluted earnings per common shares – | |||||||||
Weighted average common shares | 2,285,535 | 2,242,648 | |||||||
Not included in this computation of earnings per share for the year ended June 30, 2014 were options to purchase 25,975 shares of the Company’s common stock. These options were excluded because their inclusion would have been anti-dilutive due to the average strike price exceeding the average market price of those shares. There were no anti-dilutive options for the year ended June 30, 2013. |
Line_of_Credit
Line of Credit | 12 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
Note 16. Line of Credit | |
At June 30, 2014, the Company has an uncommitted and unused Line of Credit with a financial institution. The agreement provides that the Company may borrow up to $3,000,000. The line provides for interest payments equal to the LIBOR Daily Floating Rate plus 2.00%. Any borrowing under the line of credit will be collateralized by accounts receivable. The line will be reviewed annually for renewal. All outstanding balances are payable no later than the expiration date of the agreement, unless other terms are agreed to by the lender. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
Note 17. Quarterly Financial Information (Unaudited) | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2014 | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net sales | $ | 6,920,955 | $ | 6,569,641 | $ | 6,549,623 | $ | 7,096,700 | |||||||||
Gross profit (loss) | 2,195,136 | 896,014 | 1,679,125 | (239,029 | ) | ||||||||||||
Net income (loss) | 1,048,907 | 111,152 | 706,030 | (698,204 | ) | ||||||||||||
Net income (loss) per share - | |||||||||||||||||
Basic | 0.47 | 0.05 | 0.31 | (0.31 | ) | ||||||||||||
Diluted | 0.46 | 0.05 | 0.31 | (0.31 | ) | ||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 7,891,877 | $ | 8,052,447 | $ | 6,799,970 | $ | 11,553,916 | |||||||||
Gross profit | 2,482,193 | 2,144,508 | 1,969,878 | 4,102,990 | |||||||||||||
Net income | 1,280,718 | 1,071,776 | 915,231 | 2,294,700 | |||||||||||||
Net income per share - | |||||||||||||||||
Basic | 0.59 | 0.49 | 0.41 | 1.03 | |||||||||||||
Diluted | 0.57 | 0.48 | 0.41 | 1.02 |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Note. 18 Subsequent Event | |
As of June 30, 2014, the Company’s gross profit, reported in the statement of comprehensive income, includes a contract loss in the amount of $3.6 million, resulting from the cancellation of an engineering design contract effective after the balance sheet dated June 30, 2014. The events leading up to the cancellation qualifies the transaction as a Type 1 Subsequent Event. The Company was unsuccessful in delivering all required compliant prototypes required by the design contract by the agreed upon contract dates. Our customer would not allow any more time to complete these units as they were required to close out the prime contract by the U.S. Government. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Inventory Valuation, Cost Estimation and Revenue Recognition | ' | |||
Inventory Valuation, Cost Estimation and Revenue Recognition | ||||
Raw materials are valued at weighted average cost. | ||||
Inventoried work relating to contracts in process and work in process is valued at actual production cost, including factory overhead incurred to date. Work in process represents spare units; parts and other inventory items acquired or produced to service units previously sold or to meet anticipated future orders. The cost elements of contracts in process and work in process consist of production costs of goods and services currently in process and overhead. Provision for losses on contracts is made when the existence of such losses becomes probable and estimable. The costs attributed to units delivered under contracts are based on the estimated average cost of all units expected to be produced. Certain contracts are expected to extend beyond twelve months. | ||||
Revenue is recognized on contracts in the period in which the units are delivered and billed (units-of-delivery method). A significant portion of our business is comprised of development and production contracts. Generally, revenues on long-term fixed-price contracts are recorded on a percentage of completion basis using units of delivery as the measurement basis for progress toward completion. | ||||
Percentage of completion accounting requires judgment relative to expected sales, estimating costs and making assumptions related to technical issues and delivery schedules. Contract costs include material, subcontract costs, labor and an allocation of overhead costs. The estimation of cost at completion of a contract is subject to numerous variables involving contract costs and estimates as to the length of time to complete the contract. Given the significance of the estimation processes and judgments described above, it is possible that materially different amounts of expected sales and contract costs could be recorded if different assumptions were used, based on changes in circumstances, in the estimation process. When a change in expected sales value or estimated cost is determined, changes are reflected in current period earnings. | ||||
Depreciation | ' | |||
Depreciation | ||||
Depreciation of plant and equipment is computed on a straight-line basis over the estimated useful lives of the assets. | ||||
Estimated useful lives of depreciable assets are as follows: | ||||
Buildings and improvements | 10 – 40 years | |||
Machinery and equipment | 3 – 20 years | |||
Furniture and fixtures | 7 – 10 years | |||
Income Taxes | ' | |||
Income Taxes | ||||
The Company follows the provisions of ASC Topic 740-10, "Accounting for Income Taxes." | ||||
Under the provisions of ASC 740-10, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. In addition, ASC 740-10 requires that the tax benefit of tax-deductible dividends on unallocated ESOP shares be recorded as a direct addition to retained earnings rather than as a reduction of income tax expense. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
Cash and cash equivalents consist of cash in banks, certificates of deposit, and money market funds. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | ||||
Investment Securities | ' | |||
Investment Securities | ||||
The Company accounts for its investments in accordance with ASC 320-10-25, “Accounting for Certain Investments in Debt and Equity Securities.” Investment securities at June 30, 2014 and June 30, 2013 consist of certificates of deposit and municipal bonds. The Company classifies investment securities as available-for-sale. Unrealized holding gains and losses, net of related tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity until realized. Realized gains and losses for securities classified as available-for-sale are included in earnings and are determined using the specific identification method. Interest income is recognized when earned. Fair values are based on quoted market prices available as of the balance sheet date. | ||||
Accounts receivable and allowance for doubtful accounts | ' | |||
Accounts receivable and allowance for doubtful accounts | ||||
The Company extends credit to its customers in the normal course of business and collateral is generally not required for trade receivables. Exposure to credit risk is controlled through the use of credit approvals, credit limits and monitoring procedures. Accounts receivable are reported net of an allowance for doubtful accounts. The Company estimates the allowance based on its analysis of specific balances. An account is generally considered past due after thirty (30) days from the invoice date. Based on these factors, there was an allowance for doubtful accounts of $3,000 at June 30, 2014 and 2013. Changes to the allowance for doubtful accounts are charged to expense and reduced by charge-offs, net of recoveries. | ||||
Per Share Amounts | ' | |||
Per Share Amounts | ||||
ASC 260-10 “Earnings Per Share” requires the Company to calculate net income (loss) per share based on basic and diluted net income (loss) per share, as defined. Basic EPS excludes dilution and is computed by dividing net income (loss) by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilutive effect of outstanding options issued by the Company are reflected in diluted EPS using the treasury stock method. Under the treasury stock method, options will only have a dilutive effect when the average market price of common stock during the period exceeds the exercise price of the options. | ||||
Comprehensive Income | ' | |||
Comprehensive Income | ||||
Comprehensive income consists of net income and other comprehensive income. Other comprehensive income for fiscal years ended June 30, 2014 and 2013 consists of unrealized holding gains and losses on available-for-sale securities. | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Investment Tax Credits | ' | |||
Investment Tax Credits | ||||
Investment tax credits are accounted for as a reduction of income tax expense in the year taxes payable are reduced. | ||||
Reclassifications | ' | |||
Reclassifications | ||||
Certain reclassifications may have been made to the prior year financial statements to conform to the current year presentation. | ||||
Recently Issued Accounting Standards | ' | |||
Recently Issued Accounting Standards | ||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. | ||||
The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our financial statements and have not yet determined the method by which we will adopt the standard in fiscal 2017. | ||||
Impairment of Long-Lived Assets | ' | |||
Impairment of Long-Lived Assets | ||||
Long-lived assets, including property, plant, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and no longer depreciated. The assets and liabilities of a disposed group classified as held for sale are presented separately in the appropriate asset and liability sections of the balance sheet. | ||||
Concentrations of Risk | ' | |||
Concentrations of Risk | ||||
The market for our defense electronics products is largely dependent on the availability of new contracts from the United States and foreign governments to prime contractors to which we provide components. Any decline in expenditures by the United States or foreign governments may have an adverse effect on our financial performance. | ||||
Generally, U.S. Government contracts are subject to procurement laws and regulations. Some of the Company’s contracts are governed by the Federal Acquisition Regulation (FAR), which lays out uniform policies and procedures for acquiring goods and services by the U.S. Government, and agency-specific acquisition regulations that implement or supplement the FAR. For example, the Department of Defense implements the FAR through the Defense Federal Acquisition Regulation (DFAR). | ||||
The FAR also contains guidelines and regulations for managing a contract after award, including conditions under which contracts may be terminated, in whole or in part, at the government’s convenience or for default. If a contract is terminated for the convenience of the government, a contractor is entitled to receive payments for its allowable costs and, in general, the proportionate share of fees or earnings for the work done. If a contract is terminated for default, the government generally pays for only the work it has accepted. These regulations also subject the Company to financial audits and other reviews by the government of its costs, performance, accounting and general business practices relating to its contracts, which may result in adjustment of the Company’s contract-related costs and fees. |
Investment_in_Fair_Value_Table
Investment in Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities | ' | ||||||||||||||||
The cost, gross unrealized gains, gross unrealized losses and fair value of available-for-sale securities by major security type at June 30, 2014 and June 30, 2013 are as follows: | |||||||||||||||||
Gross | Gross | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||
2014 | |||||||||||||||||
Certificates of deposit | $ | 4,063,000 | $ | — | $ | — | $ | 4,063,000 | |||||||||
Municipal bonds | 850,103 | 2,857 | (5,067 | ) | 847,893 | ||||||||||||
2014 Total investment securities | $ | 4,913,103 | $ | 2,857 | $ | (5,067 | ) | $ | 4,910,893 | ||||||||
2013 | |||||||||||||||||
Certificates of deposit | $ | 2,600,000 | $ | — | $ | — | $ | 2,600,000 | |||||||||
Municipal bonds | 1,292,335 | 5,414 | (4,780 | ) | 1,292,968 | ||||||||||||
2013 Total investment securities | $ | 3,892,335 | $ | 5,414 | $ | (4,780 | ) | $ | 3,892,968 | ||||||||
Schedule of contractual maturities of available-for-sale securities | ' | ||||||||||||||||
As of June 30, 2014 and June 30, 2013, the contractual maturities of available-for-sale securities were as follows: | |||||||||||||||||
Years to Maturity | |||||||||||||||||
Less than | One to | ||||||||||||||||
One Year | Five Years | Total | |||||||||||||||
2014 | |||||||||||||||||
Available-for-sale | $ | 4,434,575 | $ | 476,318 | $ | 4,910,893 | |||||||||||
2013 | |||||||||||||||||
Available-for-sale | $ | 2,077,769 | $ | 1,815,199 | $ | 3,892,968 |
Contracts_in_Process_Tables
Contracts in Process (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Contractors [Abstract] | ' | ||||||||
Schedule of contracts in process | ' | ||||||||
Contracts in process at June 30, 2014 and 2013 are as follows: | |||||||||
2014 | 2013 | ||||||||
Gross contract value | $ | 35,663,830 | $ | 42,069,522 | |||||
Costs related to contracts in process, net of progress payments | |||||||||
of $142,616 in fiscal 2014 and $146,916 in fiscal 2013 | 8,201,642 | 9,159,493 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Summary of the original cost of property, plant and equipment | ' | ||||||||
A summary of the original cost of property, plant and equipment at June 30, 2014 and 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
Land | $ | 45,000 | $ | 45,000 | |||||
Building and improvements | 4,256,890 | 4,254,834 | |||||||
Machinery and equipment | 8,340,897 | 7,650,014 | |||||||
Furniture and fixtures | 160,867 | 160,867 | |||||||
12,803,654 | 12,110,715 | ||||||||
Accumulated depreciation | (10,124,753 | ) | (9,689,383 | ) | |||||
Property, plant and equipment, net | $ | 2,678,901 | $ | 2,421,332 |
Provision_for_Income_Taxes_Tab
Provision for Income Taxes (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of components of the provision for income taxes | ' | ||||||||
A summary of the components of the provision for income taxes for the years ended June 30, 2014 and 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
Current tax expense - federal | $ | 113,245 | $ | 2,293,795 | |||||
Current tax expense - state | 1,500 | 32,608 | |||||||
Deferred tax expense (benefit) | 183,319 | (22,641 | ) | ||||||
Provision for income taxes | $ | 298,064 | $ | 2,303,762 | |||||
Schedule of effective income tax rates | ' | ||||||||
The combined U.S. federal and state effective income tax rates of 20.3% and 29.3%, for 2014 and 2013 respectively, differed from the statutory U.S. federal income tax rate for the following reasons: | |||||||||
2014 | 2013 | ||||||||
U.S. federal statutory income tax rate | 34 | % | 34 | % | |||||
Increase (reduction) in rate resulting from: | |||||||||
State franchise tax, net of federal income tax benefit | 0.8 | 0.3 | |||||||
ESOP cost versus Fair Market Value | 6.4 | 1 | |||||||
Dividend on allocated ESOP shares | (20.4 | ) | (3.4 | ) | |||||
Qualified production activities | (0.8 | ) | (2.9 | ) | |||||
Stock-based compensation | 0.1 | 0.3 | |||||||
Other | 0.2 | — | |||||||
Effective tax rate | 20.3 | % | 29.3 | % | |||||
Schedule of deferred tax assets and liabilities | ' | ||||||||
The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of June 30, 2014 and 2013 are presented as follows: | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Accrued expenses | $ | 266,255 | $ | 348,085 | |||||
ESOP | 116,981 | 121,315 | |||||||
Stock-based compensation | 23,854 | 19,946 | |||||||
Inventory - effect on uniform capitalization | 32,749 | 49,032 | |||||||
Other | 1,191 | 2,252 | |||||||
Total deferred tax assets | $ | 441,030 | $ | 540,630 | |||||
Deferred tax liabilities: | |||||||||
Unrealized (loss) gain on investment securities | (773 | ) | 222 | ||||||
Property, plant and equipment - principally due | |||||||||
to differences in depreciation methods | 400,419 | 316,700 | |||||||
Total deferred tax liabilities | 399,646 | 316,922 | |||||||
Net deferred tax asset | $ | 41,384 | $ | 223,708 |
Employee_Stock_Ownership_Plan_
Employee Stock Ownership Plan (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Employee Stock Ownership Plan | ' | ||||||||
Schedule of ESOP shares | ' | ||||||||
The ESOP shares as of June 30, 2014 and 2013 were as follows: | |||||||||
2014 | 2013 | ||||||||
Allocated shares | 472,192 | 469,338 | |||||||
Unreleased shares | 97,500 | 116,666 | |||||||
Total shares held by the ESOP | 569,692 | 586,004 | |||||||
Fair value of unreleased shares | $ | 2,449,200 | $ | 2,998,316 |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of weighted average assumptions for option awards | ' | ||||||||||||||||
The table below outlines the weighted average assumptions that the Company used to calculate the fair value of each option award for the year ended June 30, 2014. | |||||||||||||||||
2014 | |||||||||||||||||
Dividend yield | 3.67 | % | |||||||||||||||
Expected stock price volatility | 25.31 | % | |||||||||||||||
Risk-free interest rate | 1.23 | % | |||||||||||||||
Expected option life (in years) | 3.8 yrs | ||||||||||||||||
Weighted average fair value per share | |||||||||||||||||
of options granted during the period | $ | 3.777 | |||||||||||||||
Schedule of stock option activity | ' | ||||||||||||||||
The following table summarizes stock option activity during the twelve months ended June 30, 2014: | |||||||||||||||||
Employee Stock Options Plan | |||||||||||||||||
Weighted | |||||||||||||||||
Number of | Weighted | Average | |||||||||||||||
Shares | Average | Remaining | Aggregate | ||||||||||||||
Subject | Exercise | Contractual | Intrinsic | ||||||||||||||
to Option | Price | Term | Value | ||||||||||||||
Balance at July 1, 2013 | 159,250 | $ | 21.12 | 6.3 | |||||||||||||
Granted | 31,600 | $ | 27.22 | 9.15 | |||||||||||||
Exercised | (23,420 | ) | $ | 18.83 | — | ||||||||||||
Forfeited or expired | (5,875 | ) | $ | 27.13 | — | ||||||||||||
Outstanding at June 30, 2014 | 161,555 | $ | 22.43 | 6.02 | $ | 491,514 | |||||||||||
Vested or expected to vest at June 30, 2014 | 158,440 | $ | 22.33 | 5.95 | $ | 491,514 | |||||||||||
Exercisable at June 30, 2014 | 135,580 | $ | 21.51 | 5.42 | $ | 491,514 | |||||||||||
Schedule of changes in non-vested stock options | ' | ||||||||||||||||
The following table summarizes changes in non-vested stock options during the twelve months ended June 30, 2014: | |||||||||||||||||
Weighted | |||||||||||||||||
Number of | Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Subject | Fair Value | ||||||||||||||||
to Option | (per Option) | ||||||||||||||||
Non-Vested at July 1, 2013 | 57,950 | $ | 4.321 | ||||||||||||||
Granted | 31,600 | 3.777 | |||||||||||||||
Vested | (57,700 | ) | 4.323 | ||||||||||||||
Forfeited or expired | (5,875 | ) | 3.782 | ||||||||||||||
Non-Vested at June 30, 2014 | 25,975 | $ | 3.777 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Schedule of reserved common shares for future issuance | ' | ||||||||
The Company has reserved common shares for future issuance as follows as of June 30, 2014: | |||||||||
Stock options outstanding | 161,555 | ||||||||
Stock options available for issuance | 226,925 | ||||||||
Number of common shares reserved | 388,480 | ||||||||
Schedule of reconciliation of the numerators and denominators of basic and diluted per share computations | ' | ||||||||
The following table sets forth the reconciliation of the numerators and denominators of the basic and diluted per share computations for continuing operations for the years ended June 30: | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net Income | $ | 1,167,885 | $ | 5,562,425 | |||||
Denominator: | |||||||||
Basic EPS: | |||||||||
Common shares outstanding, beginning of period | 2,344,690 | 2,320,822 | |||||||
Unearned ESOP shares | (116,666 | ) | (136,666 | ) | |||||
Weighted average common shares issued during the period | 9,991 | 17,810 | |||||||
Weighted average common shares purchased during the period | — | (2,550 | ) | ||||||
Weighted average ESOP shares earned during the period | 7,207 | 7,521 | |||||||
Denominator for basic earnings per common shares – | |||||||||
Weighted average common shares | 2,245,222 | 2,206,937 | |||||||
Diluted EPS: | |||||||||
Common shares outstanding, beginning of period | 2,344,690 | 2,320,822 | |||||||
Unearned ESOP shares | (116,666 | ) | (136,666 | ) | |||||
Weighted average common shares issued during the period | 9,991 | 17,810 | |||||||
Weighted average common shares purchased during the period | — | (2,550 | ) | ||||||
Weighted average ESOP shares earned during the period | 7,207 | 7,521 | |||||||
Weighted average dilutive effect of issued or forfeited shares | 40,313 | 35,711 | |||||||
Denominator for diluted earnings per common shares – | |||||||||
Weighted average common shares | 2,285,535 | 2,242,648 |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of quarterly financial information | ' | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2014 | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net sales | $ | 6,920,955 | $ | 6,569,641 | $ | 6,549,623 | $ | 7,096,700 | |||||||||
Gross profit (loss) | 2,195,136 | 896,014 | 1,679,125 | (239,029 | ) | ||||||||||||
Net income (loss) | 1,048,907 | 111,152 | 706,030 | (698,204 | ) | ||||||||||||
Net income (loss) per share - | |||||||||||||||||
Basic | 0.47 | 0.05 | 0.31 | (0.31 | ) | ||||||||||||
Diluted | 0.46 | 0.05 | 0.31 | (0.31 | ) | ||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 7,891,877 | $ | 8,052,447 | $ | 6,799,970 | $ | 11,553,916 | |||||||||
Gross profit | 2,482,193 | 2,144,508 | 1,969,878 | 4,102,990 | |||||||||||||
Net income | 1,280,718 | 1,071,776 | 915,231 | 2,294,700 | |||||||||||||
Net income per share - | |||||||||||||||||
Basic | 0.59 | 0.49 | 0.41 | 1.03 | |||||||||||||
Diluted | 0.57 | 0.48 | 0.41 | 1.02 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Narrative) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Buildings and improvements [Member] | Buildings and improvements [Member] | Machinery and equipment [Member] | Machinery and equipment [Member] | Furniture and fixtures [Member] | Furniture and fixtures [Member] | |||
Lower Range [Member] | Upper Range [Member] | Lower Range [Member] | Upper Range [Member] | Lower Range [Member] | Upper Range [Member] | |||
Estimated useful lives of depreciated assets | ' | ' | '10 years | '40 years | '3 years | '20 years | '7 years | '10 years |
Allowance for doubtful accounts | $3,000 | $3,000 | ' | ' | ' | ' | ' | ' |
Investment_in_Fair_Value_Detai
Investment in Fair Value (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Amortized Cost | $4,913,103 | $3,892,335 |
Gross Unrealized Gain | 2,857 | 5,414 |
Gross Unrealized Losses | -5,067 | -4,780 |
Fair Value | 4,910,893 | 3,892,968 |
Certificates of deposit [Member] | ' | ' |
Amortized Cost | 4,063,000 | 2,600,000 |
Fair Value | 4,063,000 | 2,600,000 |
Municipal bonds [Member] | ' | ' |
Amortized Cost | 850,103 | 1,292,335 |
Gross Unrealized Gain | 2,857 | 5,414 |
Gross Unrealized Losses | -5,067 | -4,780 |
Fair Value | $847,893 | $1,292,968 |
Investment_in_Fair_Value_Detai1
Investment in Fair Value (Details 1) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Years to maturity of Available-for-sale securities | ' | ' |
Less than One Year | $4,434,575 | $2,077,769 |
One to Five Years | 476,318 | 1,815,199 |
Total | $4,910,893 | $3,892,968 |
Contracts_in_Process_Details_N
Contracts in Process (Details Narrative) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Contractors [Abstract] | ' | ' |
Progress payments | $142,616 | $146,916 |
Costs relating to contracts that may not be completed within the next year | $4,391,834 | $4,155,629 |
Contracts_in_Process_Details
Contracts in Process (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Contractors [Abstract] | ' | ' |
Gross contract value | $35,663,830 | $42,069,522 |
Costs related to contracts in process, net of progress payments | $8,201,642 | $9,159,493 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details Narrative) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation | $452,390 | $418,149 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Property, plant and equipment, gross | $12,803,654 | $12,110,715 |
Accumulated depreciation | -10,124,753 | -9,689,383 |
Property, plant and equipment, net | 2,678,901 | 2,421,332 |
Land [Member] | ' | ' |
Property, plant and equipment, gross | 45,000 | 45,000 |
Buildings and improvements [Member] | ' | ' |
Property, plant and equipment, gross | 4,256,890 | 4,254,834 |
Machinery and equipment [Member] | ' | ' |
Property, plant and equipment, gross | 8,340,897 | 7,650,014 |
Furniture and fixtures [Member] | ' | ' |
Property, plant and equipment, gross | $160,867 | $160,867 |
Pension_Expense_Details_Narrat
Pension Expense (Details Narrative) (USD $) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2014 | Jun. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Defined benefit contributions and expenses | ' | $96,776 | $98,712 |
Increase in contribution, hourly rate | 0.04 | ' | ' |
Employer matching contibutions of 401(k) plan (percentage) | ' | 10.00% | 10.00% |
Employer matching contributions to 401(k) plan | ' | $47,847 | $40,521 |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Components of the provision for income taxes | ' | ' |
Current tax expense - federal | $113,245 | $2,293,795 |
Current tax expense - state | 1,500 | 32,608 |
Deferred tax expense (benefit) | 183,319 | -22,641 |
Provision for income taxes | $298,064 | $2,303,762 |
Provision_for_Income_Taxes_Det1
Provision for Income Taxes (Details 1) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Income tax rate reconciliation | ' | ' |
U.S. federal statutory income tax rate | 34.00% | 34.00% |
Increase (reduction) in rate resulting from: | ' | ' |
State franchise tax, net of federal income tax benefit | 0.80% | 0.30% |
ESOP cost versus Fair Market Value | 6.40% | 1.00% |
Dividend on allocated ESOP shares | -20.40% | -3.40% |
Qualified production activities | -0.80% | -2.90% |
Stock-based compensation | 0.10% | 0.30% |
Other | 0.20% | ' |
Effective tax rate | 20.30% | 29.30% |
Provision_for_Income_Taxes_Det2
Provision for Income Taxes (Details 2) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Deferred tax assets: | ' | ' |
Accrued expenses | $266,255 | $348,085 |
ESOP | 116,981 | 121,315 |
Stock-based compensation | 23,854 | 19,946 |
Inventory - effect on uniform capitalization | 32,749 | 49,032 |
Other | 1,191 | 2,252 |
Total deferred tax assets | 441,030 | 540,630 |
Deferred tax liabilities: | ' | ' |
Unrealized (loss) gain on investment securities | -773 | 222 |
Property, plant and equipment - principally due to differences in depreciation methods | 400,419 | 316,700 |
Total deferred tax liabilities | 399,646 | 316,922 |
Net deferred tax asset | $41,384 | $223,708 |
Significant_Customers_Details_
Significant Customers (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net sales | $7,096,700 | $6,549,623 | $6,569,641 | $6,920,955 | $11,553,916 | $6,799,970 | $8,052,447 | $7,891,877 | $27,136,919 | $34,298,210 |
Foreign U.K. Customers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $3,030,000 | $2,671,000 |
Sales Revenue [Member] | Domestic U.S. Customers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 47.00% | 45.00% |
Number of customers | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 |
Sales Revenue [Member] | Foreign U.K. Customers [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 18.00% |
Number of customers | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 |
Stock_Rights_Plan_Details_Narr
Stock Rights Plan (Details Narrative) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Stock Rights Plan | ' |
Expiration date of the plan | '2019-12-31 |
Number of rights distributed as a dividend, per share of common stock | 1 |
Date purchased rights distributed | 14-Apr-89 |
Number of shares that can be purchased by exercising each stock right | 0.5 |
Exercise price (per share) | $25 |
Beneficial ownership percentage that causes rights to be exercisable | 15.00% |
Percentage sale of assets or earning power to another person where rights become exercisable | 50.00% |
Employee_Stock_Ownership_Plan_1
Employee Stock Ownership Plan (Details Narrative) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
ESOP compensation expense | $552,998 | $528,804 |
Employee Stock Ownership Plan [Member] | ' | ' |
Number of hours worked per year to quality for the plan | 1,000 | ' |
Employee_Stock_Ownership_Plan_2
Employee Stock Ownership Plan (Details) (Employee Stock Ownership Plan [Member], USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Stock Ownership Plan [Member] | ' | ' |
ESOP share allocation | ' | ' |
Allocated shares | 472,192 | 469,338 |
Unreleased shares | 97,500 | 116,666 |
Total shares held by the ESOP | 569,692 | 586,004 |
Fair value of unreleased shares | $2,449,200 | $2,998,316 |
Stockbased_Compensation_Detail
Stock-based Compensation (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | 78 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
2007 Plan [Member] | 2000 Plan [Member] | |||||
Stock Options [Member] | Stock Options [Member] | |||||
Stock based compensation expense | $21,329 | $27,406 | $99,050 | $115,183 | ' | ' |
Deferred tax benefit related to stock based compensation | 2,308 | 3,116 | 10,862 | 12,968 | ' | ' |
Unrecognized compensation costs | 60,800 | ' | 60,800 | ' | ' | ' |
Period in which compensation cost will be recognized | ' | ' | '1 year 3 months | ' | ' | ' |
Deferred tax benefit related to unrecognized compensation costs | 6,395 | ' | 6,395 | ' | ' | ' |
Authorized shares under plan | ' | ' | ' | ' | 400,000 | ' |
Options granted | ' | ' | 31,600 | ' | 190,100 | ' |
Options outstanding | 161,555 | 159,250 | 161,555 | 159,250 | 133,425 | 28,130 |
Special dividend paid per share | ' | ' | $1 | $1 | ' | ' |
Aggregate intrinsic value of options exercised | ' | ' | $155,671 | $82,656 | ' | ' |
Stockbased_Compensation_Detail1
Stock-based Compensation (Details) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Weighted average assumptions to calculation option fair value | ' |
Dividend yield | 3.67% |
Expected stock price volatility | 25.31% |
Risk-free interest rate | 1.23% |
Expected option life (in years) | '3 years 9 months 18 days |
Weighted average fair value per share of options granted | $3.78 |
Stockbased_Compensation_Detail2
Stock-based Compensation (Details 1) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Number of Shares Subject to Option | ' | ' |
Balance, beginning | 159,250 | ' |
Granted | 31,600 | ' |
Exercised | -23,420 | ' |
Forfeited or expired | -5,875 | ' |
Outstanding, ending | 161,555 | 159,250 |
Vested or expected to vest, end of period | 158,440 | ' |
Exercisable, end of period | 135,580 | ' |
Weight Average Exercise Price | ' | ' |
Balance, beginning | $21.12 | ' |
Granted | $27.22 | ' |
Exercised | $18.83 | ' |
Forfeited or expired | $27.13 | ' |
Outstanding, ending | $22.43 | $21.12 |
Vested or expected to vest, end of period | $22.33 | ' |
Exercisable, end of period | $21.51 | ' |
Weighted Average Remaining Contractual Term | ' | ' |
Outstanding | '6 years 0 months 7 days | '6 years 3 months 18 days |
Granted | '9 years 1 month 24 days | ' |
Vested or expected to vest, end of period | '5 years 11 months 12 days | ' |
Exercisable, end of period | '5 years 5 months 1 day | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding end of period | $491,514 | ' |
Vested or expected to vest, end of period | 491,514 | ' |
Exercisable, end of period | $491,514 | ' |
Stockbased_Compensation_Detail3
Stock-based Compensation (Details 2) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Weighted Average Number of Shares Subject to Option | ' |
Non-vested, beginning balance | 57,950 |
Granted | 31,600 |
Vested | -57,700 |
Forfeited or expired | -5,875 |
Non-vested, ending balance | 25,975 |
Average Grant Date Fair Value | ' |
Balance, beginning | $4.32 |
Granted | $3.78 |
Vested | $4.32 |
Forfeited or expired | $3.78 |
Outstanding, ending | $3.78 |
Financial_InstrumentsConcentra1
Financial Instruments/Concentration of Credit Risk (Details Narrative) (Accounts receivable [Member]) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Customers | Customers | |
Accounts receivable [Member] | ' | ' |
Concentration Risk percentage | 61.00% | 52.00% |
Number of customers | 3 | 2 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details Narrative) (USD $) | Jun. 30, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingent liability on outstanding letters of credit | $0 |
Stockholders_Equity_Details_Na
Stockholders' Equity (Details Narrative) | 12 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Anti-dilutive options excluded from calculation of EPS | 25,975 |
Stockholders_Equity_Details
Stockholders' Equity (Details) | Jun. 30, 2014 | Jun. 30, 2013 |
Shares reserved for future issuance | ' | ' |
Options outstanding | 161,555 | 159,250 |
Stock options available for issuance | 226,925 | ' |
Number of common shares reserved | 388,480 | ' |
Stockholders_Equity_Details_1
Stockholders' Equity (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | ($698,204) | $706,030 | $111,152 | $1,048,907 | $2,294,700 | $915,231 | $1,071,776 | $1,280,718 | $1,167,885 | $5,562,425 | ' |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares outstanding, beginning of period | ' | ' | ' | 2,344,690 | ' | ' | ' | 2,320,822 | 2,344,690 | 2,320,822 | 2,368,110 |
Unearned ESOP shares | ' | ' | ' | ' | ' | ' | ' | ' | -116,666 | -136,666 | ' |
Weighted average common shares issued during the period | ' | ' | ' | ' | ' | ' | ' | ' | 9,991 | 17,810 | ' |
Weighted average common shares purchased during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,550 | ' |
Weighted average ESOP shares earned during the period | ' | ' | ' | ' | ' | ' | ' | ' | 7,207 | 7,521 | ' |
Denominator for basic earnings per common shares - Weighted average common shares | ' | ' | ' | ' | ' | ' | ' | ' | 2,245,222 | 2,206,937 | ' |
Diluted EPS: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average dilutive effect of issued or forfeited shares | ' | ' | ' | ' | ' | ' | ' | ' | 40,313 | 35,711 | ' |
Denominator for diluted earnings per common shares - Weighted average common shares | ' | ' | ' | ' | ' | ' | ' | ' | 2,285,535 | 2,242,648 | ' |
Line_of_Credit_Details_Narrati
Line of Credit (Details Narrative) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Maximum amount of Line of Credit | $3,000,000 |
Variable rate basis | 'LIBOR |
Spread on variable interest rate | 2.00% |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $7,096,700 | $6,549,623 | $6,569,641 | $6,920,955 | $11,553,916 | $6,799,970 | $8,052,447 | $7,891,877 | $27,136,919 | $34,298,210 |
Gross profit (loss) | -239,029 | 1,679,125 | 896,014 | 2,195,136 | 4,102,990 | 1,969,878 | 2,144,508 | 2,482,193 | 4,531,246 | 10,699,569 |
Net income (loss) | ($698,204) | $706,030 | $111,152 | $1,048,907 | $2,294,700 | $915,231 | $1,071,776 | $1,280,718 | $1,167,885 | $5,562,425 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | ($0.31) | $0.31 | $0.05 | $0.47 | $1.03 | $0.41 | $0.49 | $0.59 | $0.52 | $2.52 |
Diluted | ($0.31) | $0.31 | $0.05 | $0.46 | $1.02 | $0.41 | $0.48 | $0.57 | $0.51 | $2.48 |
Subsequent_Event_Details_Narra
Subsequent Event (Details Narrative) (Subsequent event [Member], USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Subsequent event [Member] | ' |
Loss on cancellation of contract, reported in comprehensive income | $3,600,000 |