Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | EVI INDUSTRIES, INC. | |
Entity Central Index Key | 0000065312 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 11,789,731 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE | |
Entity File Number | 001-14757 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 55,681 | $ 43,375 |
Cost of sales | 41,847 | 33,653 |
Gross profit | 13,834 | 9,722 |
Selling, general and administrative expenses | 12,553 | 8,290 |
Operating income | 1,281 | 1,432 |
Interest expense, net | 422 | 165 |
Income before provision for income taxes | 859 | 1,267 |
Provision for income taxes | 279 | 471 |
Net income | $ 580 | $ 796 |
Net earnings per share - basic | $ 0.05 | $ 0.07 |
Net earnings per share - diluted | $ 0.04 | $ 0.06 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 5,261 | $ 5,038 |
Accounts receivable, net of allowance for doubtful accounts of $366 and $323, respectively | 25,890 | 30,557 |
Inventories, net | 29,043 | 26,445 |
Vendor deposits | 686 | 403 |
Contract assets | 331 | 2,487 |
Other current assets | 3,606 | 2,938 |
Total current assets | 64,817 | 67,868 |
Equipment and improvements, net | 6,771 | 5,865 |
Operating lease assets | 5,902 | |
Intangible assets, net | 22,211 | 22,351 |
Goodwill | 55,456 | 54,501 |
Other assets | 3,771 | 3,900 |
Total assets | 158,928 | 154,485 |
Current liabilities | ||
Accounts payable and accrued expenses | 13,733 | 17,508 |
Accrued employee expenses | 4,169 | 5,187 |
Customer deposits | 8,578 | 7,163 |
Contract liabilities | 396 | 854 |
Current portion of operating lease liabilities | 1,689 | |
Total current liabilities | 28,565 | 30,712 |
Deferred tax liabilities, net | 1,725 | 1,708 |
Long-term operating lease liabilities | 4,232 | |
Long-term debt, net | 40,577 | 40,563 |
Total liabilities | 75,099 | 72,983 |
Commitments and contingencies (Note 11) | ||
Common stock related to acquiree's Employee Stock Ownership Plan ("ESOP") | 4,240 | |
Shareholders' equity | ||
Preferred stock, $1.00 par value; authorized shares - 200,000; none issued and outstanding | ||
Common stock, $.025 par value; authorized shares - 20,000,000; 11,862,665 shares issued at September 30, 2019 and 11,825,615 shares issued at June 30, 2019, including shares held in treasury | 297 | 296 |
Additional paid-in capital | 74,756 | 73,010 |
Retained earnings | 10,215 | 9,635 |
Treasury stock, 72,934 shares at September 30, 2019 and June 30, 2019, at cost | (1,439) | (1,439) |
Common stock related to acquiree's ESOP | (4,240) | |
Total shareholders' equity | 83,829 | 77,262 |
Total liabilities and shareholders' equity | $ 158,928 | $ 154,485 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 366 | $ 323 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.025 | $ 0.025 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 11,862,665 | 11,825,615 |
Treasury stock, shares | 72,934 | 72,934 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Common Stock Related to Acquiree's ESOP [Member] | Total |
Balance, beginning at Jun. 30, 2018 | $ 281 | $ 49,950 | $ (711) | $ 7,511 | $ 57,031 | |
Balance, shares, beginning at Jun. 30, 2018 | 11,239,656 | 52,686 | ||||
Issuance of shares in connection with acquisitions | $ 6 | 10,376 | 10,382 | |||
Issuance of shares in connection with acquisitions, shares | 230,377 | |||||
Stock compensation | 414 | 414 | ||||
Net income | 796 | 796 | ||||
Balance, ending at Sep. 30, 2018 | $ 287 | 60,740 | $ (711) | 8,307 | 68,623 | |
Balance, shares, ending at Sep. 30, 2018 | 11,470,033 | 52,686 | ||||
Balance, beginning at Jun. 30, 2019 | $ 296 | 73,010 | $ (1,439) | 9,635 | $ (4,240) | 77,262 |
Balance, shares, beginning at Jun. 30, 2019 | 11,825,615 | 72,934 | ||||
Issuance of shares in connection with acquisitions | $ 1 | 1,293 | 4,240 | 5,534 | ||
Issuance of shares in connection with acquisitions, shares | 37,050 | |||||
Stock compensation | 453 | 453 | ||||
Net income | 580 | 580 | ||||
Balance, ending at Sep. 30, 2019 | $ 297 | $ 74,756 | $ (1,439) | $ 10,215 | $ 83,829 | |
Balance, shares, ending at Sep. 30, 2019 | 11,862,665 | 72,934 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||
Net income | $ 580 | $ 796 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 811 | 533 |
Amortization of debt discount | 14 | 5 |
Provision for bad debt expense | 52 | 57 |
Non-cash lease expense | 19 | |
Share-based compensation | 453 | 414 |
Inventory reserve | 53 | 8 |
Provision for deferred income taxes | 17 | 138 |
(Increase) decrease in operating assets: | ||
Accounts receivable | 4,804 | (5,620) |
Inventories | (1,892) | (3,536) |
Vendor deposits | (283) | (132) |
Contract assets | 2,156 | 369 |
Other assets | (538) | (584) |
Increase (decrease) in operating liabilities: | ||
Accounts payable and accrued expenses | (4,301) | 2,550 |
Accrued employee expenses | (1,069) | (1,836) |
Customer deposits | 1,415 | 322 |
Contract liabilities | (458) | 654 |
Net cash provided (used) by operating activities | 1,833 | (5,862) |
Investing activities: | ||
Capital expenditures | (1,286) | (647) |
Cash paid for acquisitions, net of cash acquired | (324) | (4,294) |
Net cash used by investing activities | (1,610) | (4,941) |
Financing activities: | ||
Proceeds from borrowings | 2,000 | 21,921 |
Debt repayments | (2,000) | (10,571) |
Net cash provided by financing activities | 11,350 | |
Net increase in cash and cash equivalents | 223 | 547 |
Cash and cash equivalents at beginning of period | 5,038 | 1,330 |
Cash and cash equivalents at end of period | 5,261 | 1,877 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 457 | 138 |
Cash paid during the period for income taxes | 179 | 377 |
Supplemental disclosure of non-cash financing activities | ||
Common stock issued for acquisitions | $ 1,294 | $ 10,382 |
General
General | 3 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | Note (1) - General: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and the instructions to Form 10-Q and Article 10 of Regulation S-X related to interim period financial statements. Accordingly, the accompanying unaudited condensed consolidated financial statements do not include certain information and footnotes required by GAAP for complete financial statements. However, in management’s opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals and adjustments) which are necessary in order to state fairly the Company’s results of operations, financial position, shareholders’ equity and cash flows as of and for the periods presented. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year or any other future period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes, including the Summary of Significant Accounting Policies, included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. The June 30, 2019 balance sheet information contained herein was derived from the audited consolidated financial statements as of that date included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The estimates and assumptions made may not prove to be correct, and actual results could differ from the estimates. The Company, through its wholly-owned subsidiaries, is a value-added distributor, and provides advisory and technical services. Through the Company’s vast sales organization, it provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells and/or leases its customers commercial laundry equipment specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories. Additionally, through the Company’s robust network of commercial laundry technicians, the Company provides its customers with installation, maintenance, and repair services. The Company’s customers include retail, commercial, industrial, institutional, and government customers. Product purchases made by customers range from parts and accessories, to single or multiple units of equipment, to large complex systems. The Company also provides its customers with the services described above. The Company’s growth strategy includes organic growth initiatives and business acquisitions pursuant to the Company’s “buy-and-build” growth strategy, which was implemented in 2015. See Note 3, “Acquisitions,” for information regarding the business acquisition consummated during the three months ended September 30, 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note (2) – Summary of Significant Accounting Policies: Adoption of New Lease Standard In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842), which, among other things, requires lessees to recognize substantially all leases on their balance sheets and disclose certain additional key information about leasing arrangements. The new standard establishes a right of use (“ROU”) model that requires a lessee to recognize a ROU asset and liability on the balance sheet for all leases with a term longer than 12 months. Leases are required to be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective for the Company on July 1, 2019. The Company adopted this standard using the modified retrospective transition approach, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption without restatement of prior periods. Therefore, the condensed financial statements for the period ended September 30, 2019 are presented under the new standard, while the comparative periods presented were not adjusted for this standard and continue to be reported in accordance with the Company's previous lease accounting policy. There was no cumulative-effect adjustment recorded on July 1, 2019. The Company elected the package of transition practical expedients for expired or existing contracts, which does not require reassessment of: (1) whether any of the Company's contracts are or contain leases, (2) lease classification and (3) initial direct costs. The primary impact for the Company was the balance sheet recognition of ROU assets and lease liabilities for operating leases as a lessee. The adoption of this ASU did not have a material impact on the results of operations or cash flows of the Company. See Note 6, “Leases,” for further discussion regarding the Company’s adoption of the new standard. Significant Accounting Policies Except for the new lease standard adopted on July 1, 2019 described above, there have been no changes to the Company’s significant accounting policies from those described in Note 1 to the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. |
Acquisitions
Acquisitions | 3 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note (3) – Acquisitions PLS Acquisition On August 1, 2019, the Company, through its wholly-owned subsidiary, Professional Laundry Systems, LLC (“Professional Laundry Systems”), purchased substantially all of the assets and assumed certain of the liabilities of Commercial Laundry Products, Inc., Professional Laundry Systems of PA, Inc. and Professional Laundry Systems West, Inc. (collectively, “PLS”), which distribute commercial, industrial, and vended laundry products and provide installation and maintenance services to the new and replacement segments of the commercial, industrial and vended laundry industry. The consideration for the transaction consisted of $324,000 in cash, net of $16,000 of cash acquired, and 37,050 shares of the Company’s common stock. The Company funded the cash consideration with cash on hand. The acquisition was treated for accounting purposes as a purchase of PLS using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, pursuant to which the consideration paid by the Company was allocated to the acquired assets and assumed liabilities, in each case, based on their respective fair values as of the closing date, with the excess of the consideration transferred over the fair value of the net assets acquired being allocated to intangible assets and goodwill. The Company allocated $955,000 to goodwill, $170,000 to customer-related intangibles, and $110,000 to the Professional Laundry Systems trade name. The purchase price allocation is considered preliminary, as the Company is still assessing certain working capital items. PAC Acquisition On February 5, 2019, the Company completed the acquisition (the “PAC Acquisition”) of PAC Industries Inc. (“PAC”). As a portion of the consideration paid in connection with the PAC Acquisition, the Company transferred 114,634 shares to PAC’s ESOP. These shares were not permitted to be traded during the six-month period commencing on the closing date. Further, if a distribution event occurred during such six-month period, then each participant would have had the option to require the Company to purchase such participant’s shares at fair market value. Due to the Company’s obligation under this put option, which was in effect at June 30, 2019 but has subsequently expired, the distributed shares subject to the put option and the shares held by the ESOP were classified as temporary equity in the mezzanine section of the consolidated balance sheet as of June 30, 2019. No distribution events occurred during the six-month restriction period. On August 5, 2019, each participant’s option to require the Company to purchase such participant’s shares at fair market value if a distribution event occurred expired. Accordingly, such shares at this time were classified as permanent equity in the consolidated balance sheet. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note (4) - Earnings Per Share: For the three months ended 2019 2018 Net income $ 580 $ 796 Less: distributed and undistributed 40 58 Net income allocated to $ 540 $ 738 Weighted average shares 11,777 11,236 Dilutive common share 439 538 Weighted average shares 12,216 11,774 Basic earnings per share $ 0.05 $ 0.07 Diluted earnings per share $ 0.04 $ 0.06 At September 30, 2019 and 2018, other than 883,354 shares and 903,102 shares, respectively, of unvested common stock subject to restricted stock awards or restricted stock units, there were no potentially dilutive securities outstanding. |
Debt
Debt | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note (5) - Debt: September 30, June 30, Revolving Line of Credit $ 40,800 $ 40,800 Less: unamortized discount and deferred financing costs (223 ) (237 ) Total long-term debt $ 40,577 $ 40,563 On November 2, 2018, the Company entered into a syndicated credit agreement (the “2018 Credit Agreement”) for a five-year revolving credit facility in the maximum aggregate principal amount of up to $100 million, with an accordion feature to increase the revolving credit facility by up to $40 million for a total of $140 million. A portion of the revolving credit facility is available for swingline loans of up to a sublimit of $5 million and for the issuance of standby letters of credit of up to a sublimit of $10 million. Borrowings (other than swingline loans) under the 2018 Credit Agreement bear interest at a rate, at the Company’s election at the time of borrowing, equal to (a) LIBOR plus a margin that ranges from 1.25% to 1.75% depending on the Company’s consolidated leverage ratio, which is a ratio of consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (the “Consolidated Leverage Ratio”) or (b) the highest of (i) prime, (ii) the federal funds rate plus 50 basis points, and (iii) the one month LIBOR rate plus 100 basis points (such highest rate, the “Base Rate”), plus a margin that ranges from 0.25% to 0.75% depending on the Consolidated Leverage Ratio. Swingline loans bear interest calculated at the Base Rate plus a margin that ranges from 0.25% to 0.75% depending on the Consolidated Leverage Ratio. The 2018 Credit Agreement has a term of five years and matures on November 2, 2023. The 2018 Credit Agreement contains certain covenants, including financial covenants requiring the Company to comply with maximum leverage ratios and minimum interest coverage ratios. The 2018 Credit Agreement also contains other provisions which may restrict the Company’s ability to, among other things, dispose of or acquire assets or businesses, incur additional indebtedness, make certain investments and capital expenditures, pay dividends, repurchase shares and enter into transactions with affiliates. At September 30, 2019, the Company was in compliance with its covenants under the 2018 Credit Agreement and $4.0 million was available to borrow under the revolving credit facility. The obligations of the Company under the 2018 Credit Agreement are secured by substantially all of the assets of the Company and certain of its subsidiaries, and are guaranteed, jointly and severally, by certain of the Company’s subsidiaries. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note (6) - Leases: Company as Lessee The Company leases warehousing and distribution facilities and administrative office space, generally for terms of three to five years. As described in Note 2 above, the Company adopted ASC Topic 842, Leases (“ASC 842” or “Topic 842”), utilizing the modified retrospective adoption method with an effective date of July 1, 2019. The Company made the election to not apply the recognition requirements in Topic 842 to short-term leases (i.e., leases of 12 months or less). Instead, the Company, as permitted by Topic 842, will recognize the lease payments under its short-term leases in profit or loss on a straight-line basis over the lease term. The Company elected this accounting policy for all classes of underlying assets. In addition, in accordance with Topic 842, variable lease payments in the period in which the obligation for those payments is incurred are not included in the recognition of a lease liability or right-of-use asset. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, certain of the Company’s leases do not provide a readily determinable implicit rate. For such leases, the Company estimates the incremental borrowing rate to discount lease payments based on information available at lease commencement. The Company uses instruments with similar characteristics when calculating its incremental borrowing rates. The Company has options to extend certain of its operating leases for additional periods of time and the right to terminate several of its operating leases prior to its contractual expiration, in each case, subject to the terms and conditions of the lease. The lease term consists of the non-cancellable period of the lease and the periods covered by options to extend the lease when it is reasonably certain that the Company will exercise such options. The Company's lease agreements do not contain residual value guarantees. The Company has elected to not separate non-lease components from the associated lease component for all underlying classes of assets with lease and non-lease components. As of September 30, 2019, the Company had 25 facilities financed under operating leases, consisting of warehouse facilities and administrative offices, with lease term expirations between 2019 and 2028. Rent expense consists of monthly rental payments under the terms of the Company’s lease agreements recognized on a straight-line basis. The following table provides details of the Company’s future minimum lease payments under operating lease liabilities recorded on the Company’s condensed consolidated balance sheet as of September 30, 2019. The table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown. Fiscal years ending June 30, Total Operating 2020 (remainder of) $ 1,449 2021 1,661 2022 1,378 2023 948 2024 329 Thereafter 650 Total minimum lease payments $ 6,415 Less: amounts representing interest 494 Present value of minimum lease payments $ 5,921 Less: current portion 1,689 Long-term portion $ 4,232 The table below presents additional information related to the Company’s operating leases (in thousands): Three months ended Operating lease cost Operating lease cost (1) $ 435 Short-term lease cost (1) 59 Variable lease cost (1) 61 Total lease cost $ 555 (1) Expenses are classified within selling, general and administrative expenses within the Company’s condensed consolidated statement of operations. The table below presents lease-related terms and discount rates as of September 30, 2019: September 30, 2019 Weighted average remaining lease terms Operating leases 4.4 years Weighted average discount rate Operating leases 3.6% The table below presents supplemental cash flow information related to the Company’s long-term operating lease liabilities as of September 30, 2019 (in thousands): Three months ended Cash paid for amounts included in the measurement of lease liabilities: $ 435 Operating lease right-of-use assets obtained in exchange for operating lease liabilities: $ 474 Company as Lessor The Company derives a portion of its revenue from equipment leasing arrangements. Such arrangements provide for monthly payments covering the equipment provided, maintenance, and interest. These arrangements meet the criteria to be accounted for as sales type leases. Accordingly, revenue for provisions of the equipment is recognized upon delivery of the equipment and its acceptance by the customer. Upon the recognition of such revenue, an asset is established for the investment in sales type leases. Maintenance revenue and interest are recognized monthly over the lease term. The future minimum lease payments receivable for sales type leases are as follows (in thousands): Fiscal years ending June 30, Total Minimum Amortization Net Investment 2020 (remainder of) $ 1,284 $ 689 $ 595 2021 1,084 674 410 2022 775 438 337 2023 515 250 265 2024 288 114 174 Thereafter 73 33 40 $ 1,821 * Excludes residual values of $1.5 million. The total net investments in sales type leases, including stated residual values, as of September 30, 2019 and June 30, 2019 was $3.3 million and $3.0 million, respectively. The current portion of $0.6 million and $0.5 million is included in Other Current Assets in the consolidated balance sheets as of September 30, 2019 and June 30, 2019, respectively, and the long term portion of $2.7 million and $2.5 million is included in Other Assets in the consolidated balance sheets as of September 30, 2019 and June 30, 2019, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note (7) - Income Taxes: As of September 30, 2019 and June 30, 3019, the Company had net deferred tax liabilities of approximately $1.7 million. Consistent with the guidance of the FASB regarding accounting for income taxes, the Company regularly estimates its ability to recover deferred tax assets and establishes a valuation allowance against deferred tax assets to reduce the balance to amounts expected to be recoverable. This evaluation includes the consideration of several factors, including an estimate of the likelihood of generating sufficient taxable income in future periods over which temporary differences reverse, the expected reversal of deferred tax liabilities, past and projected taxable income and available tax planning strategies. As of September 30, 2019, management believed that it was more-likely-than-not that the results of future operations will generate sufficient taxable income to realize the net amount of the Company’s deferred tax assets over the periods during which temporary differences reverse. The Company follows ASC Topic 740-10-25, “Accounting for Uncertainty in Income Taxes” (“ASC 740”). ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. During the three months ended September 30, 2019 and 2018, the Company’s accounting for income taxes in accordance with this standard did not result in any adjustment to the Company’s provision for income taxes. As of September 30, 2019, the Company was subject to potential federal and state tax examinations for the tax years 2016 through 2019. |
Equity Incentive Plan
Equity Incentive Plan | 3 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plan | Note (8) – Equity Incentive Plan: There were no awards granted under the Plan during the three months ended September 30, 2019 or 2018. As of September 30, 2019, the Company had $13.7 million and $927,000 of total unrecognized compensation expense related to restricted stock awards and restricted stock units, respectively, granted under the Plan, which is expected to be recognized over the weighted-average period of 16.9 years and 17.3 years, respectively. The following is a summary of non-vested restricted stock activity as of and for the three months ended September 30, 2019: Restricted Stock Awards Restricted Stock Units Shares Weighted- Shares Weighted- Non-vested awards or units outstanding at June 30, 2019 855,854 $ 18.62 27,500 $ 36.24 Granted — — — — Vested — — — — Forfeited — — — — Non-vested awards or units outstanding at September 30, 2019 855,854 $ 18.62 27,500 $ 36.24 Employee Stock Purchase Plan The Company’s employee stock purchase plan commenced on July 1, 2018 and provides for six-month offering periods, the first of which expired on December 31, 2018. There were no shares issued under the Company’s employee stock purchase plan during the three months ended September 30, 2019 or 2018. |
Transactions with Related Parti
Transactions with Related Parties | 3 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Note (9) – Transactions with Related Parties: The Company’s wholly-owned subsidiary, Steiner-Atlantic Corp. (“Steiner-Atlantic”), leases 28,000 square feet of warehouse and office space from an affiliate of Michael S. Steiner, a director and Executive Vice President and Secretary of the Company, pursuant to a lease agreement dated November 1, 2014, as amended. The lease term was extended during December 2018 to run through December 31, 2019. Monthly base rental payments under the lease are $12,000. In addition to base rent, Steiner-Atlantic is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. Payments under this lease totaled approximately $37,000 and $36,000 during the three months ended September 30, 2019 and 2018, respectively. On October 10, 2016, the Company’s wholly-owned subsidiary, Western State Design, Inc. (“Western State Design”), entered into a lease agreement pursuant to which it leases 17,600 square feet of warehouse and office space from an affiliate of Dennis Mack, a director and Executive Vice President, Corporate Strategy of the Company, and Tom Marks, Executive Vice President, Business Development of the Company. Monthly base rental payments are $12,000 during the initial term of the lease. In addition to base rent, Western State Design is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. The lease has an initial term of five years and provides for two successive three-year renewal terms at the option of the Company. Payments under this lease totaled approximately $36,000 during each of the three months ended September 30, 2019 and 2018. On October 31, 2017, the Company’s wholly-owned subsidiary, Tri-State Technical Services, Inc. (“Tri-State”), entered into lease agreements pursuant to which it leases a total of 81,000 square feet of warehouse and office space from an affiliate of Matt Stephenson, President of Tri-State. Monthly base rental payments total $21,000 during the initial terms of the leases. In addition to base rent, Tri-State is responsible under the leases for costs related to real estate taxes, utilities, maintenance, repairs and insurance. Each lease has an initial term of five years and provides for two successive three-year renewal terms at the option of the Company. Payments under these leases totaled approximately $63,000 during each of the three months ended September 30, 2019 and 2018. On February 9, 2018, the Company’s wholly-owned subsidiary, AAdvantage Laundry Systems, Inc. (“AAdvantage”), entered into a lease agreement pursuant to which it leases a total of 5,000 square feet of warehouse and office space from an affiliate of Mike Zuffinetti, Chief Executive Officer of AAdvantage. Monthly base rental payments are $3,950 during the initial term of the lease. In addition to base rent, AAdvantage is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. The lease has an initial term of five years and provides for two successive three-year renewal terms at the option of the Company. During February 2018, AAdvantage entered into a month-to-month lease agreement with an affiliate of Mike Zuffinetti for a total of 17,000 square feet of warehouse and office space. Monthly base rental payments under this lease were $13,500. This month-to-month lease was terminated on October 31, 2018. In addition, on November 1, 2018, AAdvantage entered into a lease agreement pursuant to which it leases warehouse and office space from an affiliate of Mike Zuffinetti. Monthly base rental payments were $26,000 initially. Pursuant to the lease agreement, on January 1, 2019, the lease expanded to cover additional warehouse space and, in connection therewith, monthly base rental payments increased to $36,000. In addition to base rent, AAdvantage is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. The lease has an initial term of five years and provides for two successive three-year renewal terms at the option of the Company. Payments under the leases described in this paragraph totaled approximately $108,000 and $52,000 during the three months ended September 30, 2019 and 2018, respectively. On September 12, 2018, the Company’s wholly-owned subsidiary, Scott Equipment, Inc. (“Scott Equipment”), entered into lease agreements pursuant to which it leases a total of 18,000 square feet of warehouse and office space from an affiliate of Scott Martin, President of Scott Equipment. Monthly base rental payments total $11,000 during the initial terms of the leases. In addition to base rent, Scott Equipment is responsible under the leases for costs related to real estate taxes, utilities, maintenance, repairs and insurance. Each lease has an initial term of five years and provides for two successive three-year renewal terms at the option of the Company. Payments under these leases totaled approximately $34,000 and $11,000 during the three months ended September 30, 2019 and 2018, respectively. On February 5, 2019, the Company’s wholly-owned subsidiary, PAC Industries Inc. (“PAC Industries”), entered into two lease agreements pursuant to which it leases a total of 29,500 square feet of warehouse and office space from an affiliate of Frank Costabile, President of PAC Industries, and Rocco Costabile, Director of Finance of PAC Industries. Monthly base rental payments total $14,600 during the initial terms of the leases. In addition to base rent, PAC Industries is responsible under the leases for costs related to real estate taxes, utilities, maintenance, repairs and insurance. Each lease has an initial term of four years and provides for two successive three-year renewal terms at the option of the Company. Payments under these leases totaled approximately $44,000 during the three months ended September 30, 2019. |
Recently Issued Accounting Guid
Recently Issued Accounting Guidance | 3 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Guidance | Note (10) – Recently Issued Accounting Guidance Other than as described above, management does not believe that accounting standards and updates which have been issued but are not yet effective will have a material impact on the Company’s consolidated financial statements upon adoption. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note (11) – Commitments and Contingencies The Company may from time to time become subject to litigation and other legal proceedings. Litigation and other legal proceedings may require the Company to incur significant expenses, including those relating to legal and other professional fees. In addition, litigation and other legal proceedings are inherently uncertain, and adverse outcomes in litigation or other legal proceedings could adversely affect the Company’s financial condition, cash flows, and operating results. |
Goodwill
Goodwill | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note (12) – Goodwill Balance at June 30, 2019 $ 54,501 Goodwill from the PLS Acquisition 955 Balance at September 30, 2019 $ 55,456 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Adoption of New Revenue Standard | Adoption of New Lease Standard In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842), which, among other things, requires lessees to recognize substantially all leases on their balance sheets and disclose certain additional key information about leasing arrangements. The new standard establishes a right of use (“ROU”) model that requires a lessee to recognize a ROU asset and liability on the balance sheet for all leases with a term longer than 12 months. Leases are required to be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective for the Company on July 1, 2019. The Company adopted this standard using the modified retrospective transition approach, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption without restatement of prior periods. Therefore, the condensed financial statements for the period ended September 30, 2019 are presented under the new standard, while the comparative periods presented were not adjusted for this standard and continue to be reported in accordance with the Company's previous lease accounting policy. There was no cumulative-effect adjustment recorded on July 1, 2019. The Company elected the package of transition practical expedients for expired or existing contracts, which does not require reassessment of: (1) whether any of the Company's contracts are or contain leases, (2) lease classification and (3) initial direct costs. The primary impact for the Company was the balance sheet recognition of ROU assets and lease liabilities for operating leases as a lessee. The adoption of this ASU did not have a material impact on the results of operations or cash flows of the Company. See Note 6, “Leases,” for further discussion regarding the Company’s adoption of the new standard. |
Significant Accounting Policies | Significant Accounting Policies Except for the new lease standard adopted on July 1, 2019 described above, there have been no changes to the Company’s significant accounting policies from those described in Note 1 to the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share for the three months ended September 30, 2019 and 2018 are computed as follows (in thousands, except per share data): For the three months ended 2019 2018 Net income $ 580 $ 796 Less: distributed and undistributed 40 58 Net income allocated to $ 540 $ 738 Weighted average shares 11,777 11,236 Dilutive common share 439 538 Weighted average shares 12,216 11,774 Basic earnings per share $ 0.05 $ 0.07 Diluted earnings per share $ 0.04 $ 0.06 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term debt | Long-term debt as of September 30, 2019 and June 30, 2019 are as follows (in thousands): September 30, June 30, Revolving Line of Credit $ 40,800 $ 40,800 Less: unamortized discount and deferred financing costs (223 ) (237 ) Total long-term debt $ 40,577 $ 40,563 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | The following table provides details of the Company’s future minimum lease payments under operating lease liabilities recorded on the Company’s condensed consolidated balance sheet as of September 30, 2019. The table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown. Fiscal years ending June 30, Total Operating 2020 (remainder of) $ 1,449 2021 1,661 2022 1,378 2023 948 2024 329 Thereafter 650 Total minimum lease payments $ 6,415 Less: amounts representing interest 494 Present value of minimum lease payments $ 5,921 Less: current portion 1,689 Long-term portion $ 4,232 |
Schedule of Operating Leases | The table below presents additional information related to the Company’s operating leases (in thousands): Three months ended Operating lease cost Operating lease cost (1) $ 435 Short-term lease cost (1) 59 Variable lease cost (1) 61 Total lease cost $ 555 (1) Expenses are classified within selling, general and administrative expenses within the Company’s condensed consolidated statement of operations. The table below presents lease-related terms and discount rates as of September 30, 2019: September 30, 2019 Weighted average remaining lease terms Operating leases 4.4 years Weighted average discount rate Operating leases 3.6% |
Schedule of Supplemental Cash Flow Information Related to Company's Long-Term Operating Lease Liabilities | The table below presents supplemental cash flow information related to the Company’s long-term operating lease liabilities as of September 30, 2019 (in thousands): Three months ended Cash paid for amounts included in the measurement of lease liabilities: $ 435 Operating lease right-of-use assets obtained in exchange for operating lease liabilities: $ 474 |
Schedule of Future Minimum Lease Payments Receivable | The future minimum lease payments receivable for sales type leases are as follows (in thousands): Fiscal years ending June 30, Total Minimum Amortization Net Investment 2020 (remainder of) $ 1,284 $ 689 $ 595 2021 1,084 674 410 2022 775 438 337 2023 515 250 265 2024 288 114 174 Thereafter 73 33 40 $ 1,821 * Excludes residual values of $1.5 million. |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Non-vested Restricted Stock Activity | The following is a summary of non-vested restricted stock activity as of and for the three months ended September 30, 2019: Restricted Stock Awards Restricted Stock Units Shares Weighted- Shares Weighted- Non-vested awards or units outstanding at June 30, 2019 855,854 $ 18.62 27,500 $ 36.24 Granted — — — — Vested — — — — Forfeited — — — — Non-vested awards or units outstanding at September 30, 2019 855,854 $ 18.62 27,500 $ 36.24 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows (in thousands): Balance at June 30, 2019 $ 54,501 Goodwill from the PLS Acquisition 955 Balance at September 30, 2019 $ 55,456 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) | Aug. 02, 2019 | Sep. 30, 2019 | Feb. 05, 2019 |
Professional Laundry Systems [Member] | |||
Business Acquisition [Line Items] | |||
Cash Consideration | $ 324,000 | ||
Stock Consideration | 37,050 | ||
Cash acquired | $ 16,000 | ||
PAC Industries Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Number of shares transferred to PAC's ESOP | 114,634 | ||
PLS Acquisition [Member] | Customer-related intangible assets [Member] | |||
Business Acquisition [Line Items] | |||
Finite lived intangible assets acquired | $ 170,000 | ||
PLS Acquisition [Member] | Goodwill [Member] | |||
Business Acquisition [Line Items] | |||
Finite lived intangible assets acquired | 955,000 | ||
PLS Acquisition [Member] | Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Indefinite lived intangible assets acquired | $ 110,000 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2019shares | |
Restricted Stock Awards [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Dilutive securities outstanding | 883,354 |
Restricted stock Units [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Dilutive securities outstanding | 903,102 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 580 | $ 796 |
Less: distributed and undistributed income allocated to unvested restricted common stock | 40 | 58 |
Net income allocated to EVI Industries, Inc. shareholders | $ 540 | $ 738 |
Weighted average shares outstanding used in basic earnings per share | 11,777 | 11,236 |
Dilutive common share equivalents | 439 | 538 |
Weighted average shares outstanding used in diluted earnings per share | 12,216 | 11,774 |
Basic earnings per share | $ 0.05 | $ 0.07 |
Diluted earnings per share | $ 0.04 | $ 0.06 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Thousands | Nov. 02, 2018 | Sep. 30, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | |||
Revolving line of credit facility amount outstanding | $ 40,800 | $ 40,800 | |
Credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving line of credit facility maximum borrowing capacity | $ 100,000 | ||
Revolving line of credit facility amount outstanding | $ 40,000 | ||
Debt outstanding | $ 5,000 | ||
Basis of variable interest rate | LIBOR plus a margin that ranges from 1.25% to 1.75% depending on the Company's consolidated leverage ratio, which is a ratio of consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (the "Consolidated Leverage Ratio") or (b) the highest of (i) prime, (ii) the federal funds rate plus 50 basis points, and (iii) the one month LIBOR rate plus 100 basis points (such highest rate, the "Base Rate"), plus a margin that ranges from 0.25% to 0.75% depending on the Consolidated Leverage Ratio. Swingline loans bear interest calculated at the Base Rate plus a margin that ranges from 0.25% to 0.75% depending on the Consolidated Leverage Ratio. | ||
Expiration date | Nov. 2, 2023 | ||
Credit facility term | 5 years | 5 years | |
Amount available for borrowing under the revolving line of credit facility | $ 4,000 | ||
Revolving line of credit [Member] | |||
Debt Instrument [Line Items] | |||
Debt outstanding | $ 10,000 | ||
Maximum [Member] | Credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving line of credit facility maximum borrowing capacity | $ 140,000 |
Debt (Schedule of Long-term deb
Debt (Schedule of Long-term debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Debt Disclosure [Abstract] | ||
Revolving Line of Credit | $ 40,800 | $ 40,800 |
Less: unamortized discount and deferred financing costs | (223) | (237) |
Total long-term debt | $ 40,577 | $ 40,563 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | Sep. 30, 2019USD ($)Facilities | Jun. 30, 2019USD ($) |
Lessee Disclosure [Abstract] | ||
Number of facilities financed under operating leases | Facilities | 25 | |
Residual values | $ 1,500 | |
Total net investment in sales type leases | 3,300 | $ 3,000 |
Current portion Sales type leases | 600 | 500 |
Long term portion sales type leases | $ 2,700 | $ 2,500 |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Operating leases | ||
2020 (remainder of) | $ 1,449 | |
2021 | 1,661 | |
2022 | 1,378 | |
2023 | 948 | |
2024 | 329 | |
Thereafter | 650 | |
Total minimum lease payments | 6,415 | |
Less: amounts representing interest | 494 | |
Present value of minimum lease payments | 5,921 | |
Less: current portion | 1,689 | |
Long-term portion | $ 4,232 |
Leases (Schedule of Operating L
Leases (Schedule of Operating Leases) (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019USD ($) | ||
Operating lease cost | ||
Operating lease cost | $ 435 | [1] |
Short-term lease cost | 59 | [1] |
Variable lease cost | 61 | [1] |
Total lease cost | $ 555 | |
Other information | ||
Weighted average remaining lease term - operating leases | 4 years 4 months 24 days | |
Weighted average discount rate - operating leases | 3.60% | |
[1] | Expenses are classified within selling, general and administrative expenses within the Company's condensed consolidated statement of operations. |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Cash Flow Information Related to Company's Long-Term Operating Lease Liabilities) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities: | $ 435 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities: | $ 474 |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Property Subject to or Available for Operating Lease [Line Items] | |
2020 (remainder of) | $ 595 |
2021 | 410 |
2022 | 337 |
2023 | 265 |
2024 | 174 |
Thereafter | 40 |
Future minimum lease payments receivable | 1,821 |
Total Minimum Lease Payments to be Received [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
2020 (remainder of) | 1,284 |
2021 | 1,084 |
2022 | 775 |
2023 | 515 |
2024 | 288 |
Thereafter | 73 |
Amortization of Unearned Income [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
2020 (remainder of) | 689 |
2021 | 674 |
2022 | 438 |
2023 | 250 |
2024 | 114 |
Thereafter | $ 33 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Income Tax Disclosure [Abstract] | ||
Deferred tax liabilities, net | $ 1,725 | $ 1,708 |
Equity Incentive Plan (Narrativ
Equity Incentive Plan (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized under 2015 Equity Incentive Plan | shares | 1,500,000 |
Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense, net of estimated forfeitures, related to non-vested restricted stock | $ 13,700,000 |
Weighted-average period | 16 years 10 months 25 days |
Restricted stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense, net of estimated forfeitures, related to non-vested restricted stock | $ 927,000 |
Weighted-average period | 17 years 11 days |
Equity Incentive Plan (Schedule
Equity Incentive Plan (Schedule of Non-vested Restricted Stock Activity) (Details) | 3 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested awards or units outstanding, beginning of period | shares | 855,854 |
Granted | shares | |
Vested | shares | |
Forfeited | shares | |
Non-vested awards or units outstanding, end of period | shares | 855,854 |
Weighted-average grant date fair value, beginning of period | $ / shares | $ 18.62 |
Granted | $ / shares | |
Vested | $ / shares | |
Forfeited | $ / shares | |
Weighted-average grant date fair value, end of period | $ / shares | $ 18.62 |
Restricted stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested awards or units outstanding, beginning of period | shares | 27,500 |
Granted | shares | |
Vested | shares | |
Forfeited | shares | |
Non-vested awards or units outstanding, end of period | shares | 27,500 |
Weighted-average grant date fair value, beginning of period | $ / shares | $ 36.24 |
Granted | $ / shares | |
Vested | $ / shares | |
Forfeited | $ / shares | |
Weighted-average grant date fair value, end of period | $ / shares | $ 36.24 |
Transactions with Related Par_2
Transactions with Related Parties (Details) | 1 Months Ended | 3 Months Ended | |
Jan. 04, 2019USD ($) | Sep. 30, 2019USD ($)ft² | Sep. 30, 2018USD ($) | |
Michael S. Steiner [Member] | |||
Related Party Transaction [Line Items] | |||
Area of lease | ft² | 28,000 | ||
Lease start date | Nov. 1, 2014 | ||
Annual rent payment, year one | $ 12,000 | ||
Rental expense | $ 37,000 | $ 36,000 | |
Dennis Mack and Tom Marks [Member] | Western State Design [Member] | |||
Related Party Transaction [Line Items] | |||
Original lease term | 5 years | ||
Area of lease | ft² | 17,600 | ||
Annual rent payment, year one | $ 12,000 | ||
Rental expense | $ 36,000 | 36,000 | |
Matt Stephenson [Member] | Tri-State [Member] | |||
Related Party Transaction [Line Items] | |||
Original lease term | 5 years | ||
Area of lease | ft² | 81,000 | ||
Annual rent payment, year one | $ 21,000 | ||
Rental expense | $ 63,000 | 63,000 | |
Mike Zuffinetti [Member] | |||
Related Party Transaction [Line Items] | |||
Original lease term | 5 years | 5 years | |
Area of lease | ft² | 17,000 | ||
Annual rent payment, year one | $ 13,500 | ||
Rental expense | $ 36,000 | $ 26,000 | |
Mike Zuffinetti [Member] | AAdvantage [Member] | |||
Related Party Transaction [Line Items] | |||
Original lease term | 5 years | ||
Area of lease | ft² | 5,000 | ||
Annual rent payment, year one | $ 3,950 | ||
Rental expense | $ 108,000 | 52,000 | |
Scott Martin [Member] | Scott Equipment [Member] | |||
Related Party Transaction [Line Items] | |||
Original lease term | 5 years | ||
Area of lease | ft² | 18,000 | ||
Annual rent payment, year one | $ 11,000 | ||
Rental expense | $ 34,000 | $ 11,000 | |
Frank Costabile [Member] | PAC Industries Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Original lease term | 4 years | ||
Area of lease | ft² | 29,500 | ||
Annual rent payment, year one | $ 14,600 | ||
Rental expense | $ 44,000 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding performance and payment bonds | $ 8,000 | $ 8,000 |
Goodwill (Schedule of Carrying
Goodwill (Schedule of Carrying Amount of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance at June 30, 2019 | $ 54,501 |
Goodwill from the PLS Acquisition | 955 |
Balance at September 30, 2019 | $ 55,456 |