Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 01, 2017 | Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | POWELL INDUSTRIES INC, | ||
Entity Central Index Key | 80,420 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Trading Symbol | powl | ||
Entity Public Float | $ 394 | ||
Entity Common Stock, Shares Outstanding | 11,428,638 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 68,359 | $ 97,720 |
Short-term investments | 26,829 | 0 |
Restricted cash | 15,104 | 0 |
Accounts receivable, less allowance for doubtful accounts of $179 and $811 | 53,852 | 101,048 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 51,554 | 66,106 |
Inventories | 18,448 | 26,521 |
Income taxes receivable | 8,222 | 1,713 |
Deferred income taxes | 3,539 | 4,006 |
Prepaid expenses | 3,701 | 4,569 |
Other current assets | 463 | 2,457 |
Total Current Assets | 250,071 | 304,140 |
Property, plant and equipment, net | 139,420 | 144,977 |
Restricted cash | 9,747 | 0 |
Goodwill and intangible assets, net | 1,719 | 2,059 |
Other assets | 13,800 | 11,340 |
Deferred income taxes | 229 | 0 |
Total Assets | 414,986 | 462,516 |
Current Liabilities: | ||
Current maturities of long-term debt | 400 | 400 |
Income taxes payable | 1,219 | 1,459 |
Accounts payable | 33,269 | 34,985 |
Accrued salaries, bonuses and commissions | 14,984 | 22,550 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 26,166 | 43,974 |
Accrued product warranty | 3,174 | 4,639 |
Other accrued expenses | 5,860 | 8,212 |
Deferred credit ─ short term (Note E) | 507 | 2,029 |
Total Current Liabilities | 85,579 | 118,248 |
Long-term debt, net of current maturities | 1,600 | 2,000 |
Deferred compensation (Note I) | 5,314 | 4,840 |
Deferred income taxes | 0 | 138 |
Other long-term liabilities | 1,197 | 1,466 |
Deferred credit ─ long term (Note E) | 0 | 507 |
Total Liabilities | 93,690 | 127,199 |
Commitments and Contingencies (Note G) | ||
Stockholders' Equity: | ||
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, par value $.01; 30,000,000 shares authorized; 12,234,656 and 12,199,511 shares issued, respectively | 122 | 122 |
Additional paid-in capital | 54,329 | 52,003 |
Retained earnings | 310,598 | 331,959 |
Treasury stock, 806,018 shares at cost | (24,999) | (24,999) |
Accumulated other comprehensive loss | (18,754) | (23,768) |
Total Stockholders' Equity | 321,296 | 335,317 |
Total Liabilities and Stockholders' Equity | $ 414,986 | $ 462,516 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 179 | $ 811 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 12,234,656 | 12,199,511 |
Treasury stock, shares | 806,018 | 806,018 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | |||
Revenues | $ 395,911 | $ 565,243 | $ 661,858 |
Cost of goods sold | 345,142 | 459,038 | 553,597 |
Gross profit | 50,769 | 106,205 | 108,261 |
Selling, general and administrative expenses | 61,524 | 74,924 | 76,801 |
Research and development expenses | 6,906 | 6,731 | 6,980 |
Amortization of intangible assets | 355 | 352 | 435 |
Restructuring and separation expenses | 1,322 | 8,441 | 3,397 |
Operating income (loss) | (19,338) | 15,757 | 20,648 |
Other income (See Note E) | (2,029) | (2,029) | (2,402) |
Interest expense | 168 | 149 | 145 |
Interest income | (558) | (156) | (86) |
Income (loss) before income taxes | (16,919) | 17,793 | 22,991 |
Income tax provision (benefit) | (7,433) | 2,283 | 13,552 |
Net income (loss) | $ (9,486) | $ 15,510 | $ 9,439 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ (0.83) | $ 1.36 | $ 0.80 |
Diluted (in dollars per share) | $ (0.83) | $ 1.36 | $ 0.79 |
Weighted average shares: | |||
Basic (in shares) | 11,453 | 11,400 | 11,869 |
Diluted (in shares) | 11,453 | 11,431 | 11,908 |
Dividends per share (in dollars per share) | $ 1.04 | $ 1.04 | $ 1.04 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statement of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | $ (9,486) | $ 15,510 | $ 9,439 |
Foreign currency translation adjustments | 4,822 | (928) | (16,104) |
Postretirement benefit adjustment, net of tax | 192 | (439) | 206 |
Comprehensive income (loss) | $ (4,472) | $ 14,143 | $ (6,459) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income/(Loss) |
Balance at Sep. 30, 2014 | $ 371,097 | $ 120 | $ 46,267 | $ 331,213 | $ (6,503) | |
Balance, shares at Sep. 30, 2014 | 12,031 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 9,439 | 9,439 | ||||
Foreign currency translation adjustments | (16,104) | (16,104) | ||||
Stock-based compensation | 3,171 | 3,171 | ||||
Stock-based compensation, shares | 53 | |||||
Excess tax benefit from share-based compensation | (191) | (191) | ||||
Shares withheld in lieu of employee tax withholding | (740) | (740) | ||||
Issuance of restricted stock | 1 | $ 1 | ||||
Issuance of restricted stock, shares | 16 | |||||
Purchase of treasury shares | (21,259) | $ (21,259) | ||||
Purchase of treasury shares, shares | (670) | |||||
Dividends paid | (12,358) | (12,358) | ||||
Postretirement benefit adjustment, net of tax | 206 | 206 | ||||
Balance at Sep. 30, 2015 | 333,262 | $ 121 | 48,507 | 328,294 | $ (21,259) | (22,401) |
Balance, shares at Sep. 30, 2015 | 12,100 | (670) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 15,510 | 15,510 | ||||
Foreign currency translation adjustments | (928) | (928) | ||||
Stock-based compensation | 4,883 | 4,883 | ||||
Stock-based compensation, shares | 81 | |||||
Excess tax benefit from share-based compensation | (387) | (387) | ||||
Shares withheld in lieu of employee tax withholding | (1,000) | (1,000) | ||||
Issuance of restricted stock | 1 | $ 1 | ||||
Issuance of restricted stock, shares | 18 | |||||
Purchase of treasury shares | (3,740) | $ (3,740) | ||||
Purchase of treasury shares, shares | (136) | |||||
Dividends paid | (11,845) | (11,845) | ||||
Postretirement benefit adjustment, net of tax | (439) | (439) | ||||
Balance at Sep. 30, 2016 | 335,317 | $ 122 | 52,003 | 331,959 | $ (24,999) | (23,768) |
Balance, shares at Sep. 30, 2016 | 12,199 | (806) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (9,486) | (9,486) | ||||
Foreign currency translation adjustments | 4,822 | 4,822 | ||||
Stock-based compensation | 2,724 | 2,724 | ||||
Stock-based compensation, shares | 18 | |||||
Shares withheld in lieu of employee tax withholding | (398) | (398) | ||||
Issuance of restricted stock | 0 | |||||
Issuance of restricted stock, shares | 17 | |||||
Dividends paid | (11,875) | (11,875) | ||||
Postretirement benefit adjustment, net of tax | 192 | 192 | ||||
Balance at Sep. 30, 2017 | $ 321,296 | $ 122 | $ 54,329 | $ 310,598 | $ (24,999) | $ (18,754) |
Balance, shares at Sep. 30, 2017 | 12,234 | (806) |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Postretirement benefit adjustment, tax | $ 103 | $ (237) | $ 123 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities: | |||
Net income (loss) | $ (9,486) | $ 15,510 | $ 9,439 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 12,400 | 12,979 | 13,120 |
Amortization | 355 | 352 | 435 |
Stock-based compensation | 2,724 | 4,883 | 3,171 |
Excess tax benefit from stock-based compensation | 0 | 387 | 191 |
Bad debt expense/(recovery) | (160) | 187 | (29) |
Deferred income tax expense | 100 | 2,330 | 10,521 |
Gain on amended supply agreement | (2,029) | (2,029) | (2,029) |
Cash received from amended supply agreement | 2,333 | 2,333 | 2,333 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 47,983 | 369 | 391 |
Costs and billings in excess of estimates on uncompleted contracts | (3,270) | 39,612 | (17,430) |
Inventories | 8,213 | 6,159 | (572) |
Income taxes | (6,758) | (195) | (1,647) |
Prepaid expenses and other current assets | 453 | 861 | 4,222 |
Accounts payable | (2,417) | (11,658) | (4,992) |
Accrued liabilities | (11,676) | 3,927 | (3,373) |
Other, net | (1,950) | (1,101) | (833) |
Net cash provided by operating activities | 36,815 | 74,906 | 12,918 |
Investing Activities: | |||
Purchases of property, plant and equipment | (3,636) | (3,044) | (34,719) |
Proceeds from sale of property, plant and equipment | 12 | 187 | 112 |
Purchases of short-term investments | (60,018) | 0 | 0 |
Maturities of short-term investments | 33,189 | 0 | 0 |
Changes in restricted cash | (24,851) | 0 | 0 |
Net cash used in investing activities | (55,304) | (2,857) | (34,607) |
Financing Activities: | |||
Payments on industrial development revenue bonds | (400) | (400) | (400) |
Excess tax benefit from stock-based compensation | 0 | (387) | (191) |
Shares withheld in lieu of employee tax withholding | (398) | (1,000) | (740) |
Purchase of treasury shares | 0 | (3,740) | (21,259) |
Dividends paid | (11,875) | (11,845) | (12,358) |
Net cash used in financing activities | (12,673) | (17,372) | (34,948) |
Net increase (decrease) in cash and cash equivalents | (31,162) | 54,677 | (56,637) |
Effect of exchange rate changes on cash and cash equivalents | 1,801 | (526) | (2,912) |
Cash and cash equivalents, beginning of period | 97,720 | 43,569 | 103,118 |
Cash and cash equivalents, end of period | $ 68,359 | $ 97,720 | $ 43,569 |
Business and Organization
Business and Organization | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization Powell Industries, Inc. (we, us, our, Powell or the Company) was incorporated in the state of Delaware in 2004 as a successor to a Nevada company incorporated in 1968. The Nevada company was the successor to a company founded by William E. Powell in 1947, which merged into the Company in 1977. Our major subsidiaries, all of which are wholly owned, include: Powell Electrical Systems, Inc.; Powell (UK) Limited; Powell Canada Inc. and Powell Industries International, B.V. We develop, design, manufacture and service custom-engineered equipment and systems for the distribution, control and monitoring of electrical energy designed to (1) distribute, control and monitor the flow of electrical energy and (2) provide protection to motors, transformers and other electrically powered equipment. Our principal products include integrated power control room substations (PCRs®), custom-engineered modules, electrical houses (E-Houses), traditional and arc-resistant distribution switchgear and control gear, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers and bus duct systems. These products are designed for application voltages ranging from 480 volts to 38,000 volts and are used in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper and other heavy industrial markets. Our product scope includes designs tested to meet both U.S. standards (ANSI) and international standards (IEC). We assist customers by providing value-added services such as spare parts, field service inspection, installation, commissioning, modification and repair, retrofit and retrofill components for existing systems and replacement circuit breakers for switchgear that is obsolete or that is no longer produced by the original manufacturer. We seek to establish long-term relationships with the end users of our systems as well as the design and construction engineering firms contracted by those end users. References to Fiscal 2017 , Fiscal 2016 and Fiscal 2015 used throughout these Notes to Consolidated Financial Statements relate to our fiscal years ended September 30, 2017 , 2016 and 2015 , respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Powell and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. The most significant estimates used in our financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, warranty accruals and income taxes. The amounts recorded for warranties, legal, income taxes, impairment of long-lived assets (when applicable) and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience and on various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Additionally, the recognition of deferred tax assets requires estimates related to future income and other assumptions regarding timing and future profitability. Estimates may change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our estimates. Cash and Cash Equivalents Cash and cash equivalents Cash and cash equivalents, primarily funds held in money market savings instruments, are reported at their current carrying value which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in our Consolidated Balance Sheets. Short-term Investments - Short-term investments include time deposits with original maturities of three months or more. Restricted Cash - Restricted cash includes cash and cash equivalents that are unavailable for withdrawal or usage for general obligations. Restricted cash on our Consolidated Balance Sheet represents a pledged cash collateral balance which is required under our recently amended credit agreement and is held in an interest-bearing savings account. See Note F for further discussion on restricted cash. Supplemental Disclosures of Cash Flow Information (in thousands): Year Ended September 30, 2017 2016 2015 Cash paid (received) during the period for: Interest paid, net of interest income $ (384 ) $ 4 70 Income taxes paid, net of refunds (764 ) (352 ) 2,298 Non-cash capital expenditures 634 221 147 Fair Value of Financial Instruments Financial instruments include cash, cash equivalents, short-term investments, restricted cash, receivables, deferred compensation, payables and debt obligations. Except as described below, due to the short-term nature of account receivables and account payables, the book value is representative of their fair value. The carrying value of debt approximates fair value as interest rates are indexed to the Federal Funds Rate or the bank’s prime rate. Accounts Receivable Accounts receivable are stated net of allowances for doubtful accounts. We maintain and continually assess the adequacy of the allowance for doubtful accounts representing our estimate for losses resulting from the inability of our customers to pay amounts due to us. This estimated allowance is based on historical experience of uncollected accounts, the level of past due accounts, the overall level of outstanding accounts receivable, information about specific customers with respect to their inability to make payments and expectations of future conditions that could impact the collectability of accounts receivable. Future changes in our customers’ operating performance and cash flows, or in general economic conditions, could have an impact on their ability to fully pay these amounts, which could have a material impact on our operating results. In most cases, receivables are not collateralized. However, we utilize letters of credit to secure payment on projects when possible. At September 30, 2017 and 2016 , accounts receivable included retention amounts of $2.1 million and $2.7 million , respectively. Retention amounts are in accordance with applicable provisions of contracts and become due upon completion of contractual requirements. All of the retained amount at September 30, 2017 , is expected to be collected in the next fiscal year. Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts Costs and estimated earnings in excess of billings on uncompleted contracts arise when revenues are recorded on a percentage-of-completion basis but cannot be invoiced under the terms of the contract. Such amounts are invoiced upon completion of contractual milestones. Costs and estimated earnings in excess of billings on uncompleted contracts also include certain costs associated with unapproved change orders. These costs are included when the approval of the change order is probable. Amounts are carried at the lower of cost or net realizable value. Revenue is recognized to the extent of costs incurred when recovery is probable. The amounts recorded involve the use of judgments and estimates; thus, actual recoverable amounts could differ from original assumptions. In accordance with industry practice, assets and liabilities related to costs and estimated earnings in excess of billings on uncompleted contracts, as well as billings in excess of costs and estimated earnings on uncompleted contracts, have been classified as current. The contract cycle for certain long-term contracts may extend beyond one year; thus, collection of amounts related to these contracts may extend beyond one year. Inventories Inventories are stated at the lower of cost or market using weighted-average methods and include the cost of materials, labor and manufacturing overhead. We use estimates in determining the level of reserves required to state inventory at the lower of cost or market. Our estimates are based on market activity levels, production requirements, the physical condition of products and technological innovation. Changes in any of these factors may result in adjustments to the carrying value of inventory. Property, Plant and Equipment Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and improvements, which extend the useful lives of existing equipment, are capitalized and depreciated. Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the Consolidated Statements of Operations. We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value may not be realizable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if recording an impairment of such asset is necessary. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. This requires us to make long-term forecasts of the future revenues and the costs related to the assets subject to review. Forecasts require assumptions about demand for our products and future market conditions. Estimating future cash flows requires significant judgment and our projections may vary from cash flows eventually realized. Future events and unanticipated changes to assumptions could require a provision for impairment in a future period. The effect of any impairment would be reflected in income (loss) from operations in the Consolidated Statements of Operations. In addition, we estimate the useful lives of our property, plant and equipment and periodically review these estimates to determine whether these lives are appropriate. Income Taxes We account for income taxes under the asset and liability method, based on the income tax laws and rates in the countries in which operations are conducted and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Developing our provision for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. In assessing the extent to which net deferred tax assets may be realized, we consider whether it is more likely than not that some portion or all of the net deferred tax assets may not be realized. The ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Estimates may change as new events occur, estimates of future taxable income during the carryforward period are reduced or increased, additional information becomes available or operating environments change, which may result in a full or partial reversal of the valuation allowance. We will continue to assess the adequacy of the valuation allowance on a quarterly basis. Our judgments and tax strategies are subject to audit by various taxing authorities. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accounting literature also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial statements. Revenue Recognition Our revenues are primarily generated from the engineering and manufacturing of custom products under long-term contracts that may last from one month to several years, depending on the contract. Revenues from long-term contracts are recognized on the percentage-of-completion method of accounting. Occasionally a contract may require that we segment the project into specific deliverables for revenue recognition. Segmenting a contract may result in different interim rates of profitability for each scope of service than if we had recognized revenue on a combined basis. Under the percentage-of-completion method of accounting, revenues are recognized as work is performed. The revenue earned to date is calculated by multiplying the total contract price by the percentage of performance to date, which is based on total costs or total labor dollars incurred to date compared to the total estimated costs or total labor dollars estimated at completion. The method used to determine the percentage of completion is typically the cost method, unless the labor method is a more accurate method of measuring the progress of the project. Application of the percentage-of-completion method of accounting requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and all costs associated with operation of equipment. The cost estimation process is based upon the professional knowledge and experience of our engineers, project managers and financial professionals. Factors that are considered in estimating the work to be completed and ultimate contract recovery include the availability and productivity of labor, the nature and complexity of the work to be performed, the effect of change orders, the availability of materials, the effect of any delays on our project performance and the recoverability of any claims. Changes in job performance, job conditions, estimated profitability and final contract settlements, including our estimate of liquidated damages, if any, may result in revisions to costs and income, with their effects being recognized in the period in which the revisions are determined. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. Revenues associated with maintenance, repair and service contracts are recognized when the services are performed. Expenses related to these types of services are recognized as incurred. Warranty Costs We provide for estimated warranty costs with the recognition of revenue based upon historical rates applicable to individual product lines. In addition, specific provisions are made when the costs of such warranties are expected to exceed accruals. Our standard terms and conditions of sale include a warranty for parts and service for the earlier of 18 months from the date of shipment or 12 months from the date of energization, whichever occurs first. Occasionally projects require warranty terms that are longer than our standard terms due to the nature of the project. Extended warranty terms may be negotiated and included in our contracts. We use past experience and historical claims to determine the estimated liability. Actual results could differ from our estimate. Research and Development Expense Research and development activities are directed toward the development of new products and processes as well as improvements in existing products and processes. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred. Such amounts were $6.9 million , $6.7 million and $7.0 million in Fiscal 2017 , 2016 and 2015 , respectively. Foreign Currency Translation The functional currency for our foreign subsidiaries is the local currency in which the entity is located. The financial statements of all subsidiaries with a functional currency other than the U.S. Dollar have been translated into U.S. Dollars. All assets and liabilities of foreign operations are translated into U.S. Dollars using year-end exchange rates, and all revenues and expenses are translated at average rates during the respective period. The U.S. Dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the cumulative currency translation adjustments in accumulated other comprehensive income (loss) in stockholders’ equity. Stock-Based Compensation We measure stock-based compensation cost at the grant date based on the fair value of the award. Compensation expense is recognized over the period during which the recipient is required to provide service in exchange for the awards, typically the vesting period. Excess income tax benefits related to share-based compensation expense is recognized as income tax expense or benefit in the Consolidated Statement of Operations. Cash paid when directly withholding shares on an employee's behalf for tax withholding purposes is classified as a financing activity. We account for forfeitures as they occur, rather than estimate expected forfeitures. New Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition that supersedes previously issued revenue recognition guidance. This standard provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue (and the related cash flows) arising from customer contracts, significant judgments and changes in judgments used in applying the revenue model and the assets recognized from costs incurred to obtain or fulfill a contract. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which would be our fiscal year ending September 30, 2019. We plan to use the modified retrospective basis upon adoption. While we are still evaluating the potential impact of this standard on our financial statements, we believe accounting for variable consideration and the number of performance obligations contained in each contract will have the greatest significance. The materiality of this guidance on our financial statements will be determined in large part by the contracts that are in progress as of the adoption date. In November 2015, the FASB issued an amendment to the topic regarding income taxes which requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in the statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This amendment is effective for annual reporting periods beginning after December 15, 2016, which would be our fiscal year ending September 30, 2018. We have no plans for early adoption. We are still evaluating this new amendment, but we do not expect it to have a material impact on our consolidated financial position or results of operations. In February 2016, the FASB issued a new topic on leases which requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The new topic is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, which would be our fiscal year ending September 30, 2020. We are still evaluating the potential impact of this guidance on our financial statements. Our future obligations under operating leases as of September 30, 2017 are summarized in Note G of the Notes to Consolidated Financial Statements. In March 2016, the FASB issued new guidance on stock-based compensation, which includes amendments to existing guidance for employee share-based payment accounting. We elected to early adopt this new guidance in the first quarter of Fiscal 2017. Beginning Fiscal 2017, stock-based compensation excess tax benefits or deficiencies are reflected in the Consolidated Statement of Operations as a component of income taxes, whereas they were previously recorded in additional paid-in capital in the Consolidated Statement of Stockholders’ Equity. Additionally, we will now present excess tax benefits as an operating activity in the Consolidated Statements of Cash Flows. These changes have been adopted prospectively. Finally, we will continue to account for forfeitures as they occur, rather than estimate expected forfeitures. In November 2016, the FASB issued new standards on the statement of cash flows and restricted cash that change the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. These standards are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, which would be our fiscal year ending September 30, 2019. We have no plans for early adoption. We are still evaluating these new standards, but we do not expect them to have a material impact on our consolidated financial position or results of operations. In January 2017, the FASB issued new guidance on goodwill impairment intended to simplify the testing for goodwill impairment by the elimination of Step 2 in the determination on whether goodwill should be considered impaired. The annual and/or interim assessments are still required to be completed. This guidance is effective for fiscal years (including interim periods) beginning after December 15, 2019. The adoption of this guidance is not expected to have a material impact on our consolidated financial position or results of operations. In May 2017, the FASB issued a new topic on modification accounting with regards to stock-based compensation. This new topic clarifies when a change to the terms or conditions of a share-based payment award should be accounted for as a modification. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification, as an equity instrument or a liability instrument, of the modified award are the same before and after a change to the terms or conditions of the share-based payment award. This topic is effective for annual reporting periods beginning after December 15, 2017, which would be our fiscal year ending September 30, 2018. We do not expect this topic to have a material impact on our consolidated financial position or results of operations. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common share includes the weighted average of additional shares associated with the incremental effect of dilutive restricted stock and restricted stock units, as prescribed by the FASB guidance on earnings per share. The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share for the years ended September 30, 2017 , 2016 and 2015 (in thousands, except per share data): Year Ended September 30, 2017 2016 2015 Numerator: Net income (loss) $ (9,486 ) $ 15,510 $ 9,439 Denominator: Weighted average basic shares 11,453 11,400 11,869 Dilutive effect of restricted stock units — 31 39 Weighted average diluted shares with assumed conversions 11,453 11,431 11,908 Net earnings (loss) per share: Basic earnings (loss) per share $ (0.83 ) $ 1.36 $ 0.80 Diluted earnings (loss) per share $ (0.83 ) $ 1.36 $ 0.79 For the year ended September 30, 2017, we incurred a net loss and therefore all potential common shares were deemed to be anti-dilutive. |
Detail of Selected Balance Shee
Detail of Selected Balance Sheet Accounts | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of Selected Balance Sheet Accounts | Detail of Selected Balance Sheet Accounts Allowance for Doubtful Accounts Activity in our allowance for doubtful accounts consisted of the following (in thousands): September 30, 2017 2016 Balance at beginning of period $ 811 $ 746 Bad debt expense (recovery) (160 ) 187 Uncollectible accounts written off, net of recoveries (472 ) (120 ) Change due to foreign currency translation — (2 ) Balance at end of period $ 179 $ 811 Inventories The components of inventories are summarized below (in thousands): September 30, 2017 2016 Raw materials, parts and subassemblies $ 22,100 $ 29,639 Work-in-progress 600 996 Provision for excess and obsolete inventory (4,252 ) (4,114 ) Total inventories $ 18,448 $ 26,521 Cost and Estimated Earnings on Uncompleted Contracts The components of costs and estimated earnings and related amounts billed on uncompleted contracts are summarized below (in thousands): September 30, 2017 2016 Costs incurred on uncompleted contracts $ 987,164 $ 1,088,921 Estimated earnings 316,970 350,125 1,304,134 1,439,046 Less: Billings to date (1,278,746 ) (1,416,914 ) Net underbilled position $ 25,388 $ 22,132 Included in the accompanying balance sheets under the following captions: Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled $ 51,554 $ 66,106 Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled (26,166 ) (43,974 ) Net underbilled position $ 25,388 $ 22,132 Property, Plant and Equipment Property, plant and equipment are summarized below (in thousands): September 30, Range of 2017 2016 Asset Lives Land $ 22,441 $ 22,107 — Buildings and improvements 121,960 119,512 3 - 39 Years Machinery and equipment 106,113 103,268 3 - 15 Years Furniture and fixtures 3,806 3,806 3 - 10 Years Construction in process 1,749 1,009 — $ 256,069 $ 249,702 Less: Accumulated depreciation (116,649 ) (104,725 ) Total property, plant and equipment, net $ 139,420 $ 144,977 There were no assets under capital lease as of September 30, 2017 or September 30, 2016 . Depreciation expense was $12.4 million , $13.0 million and $13.1 million for fiscal years 2017 , 2016 , and 2015 , respectively. Warranty Accrual Activity in our warranty accrual consisted of the following (in thousands): September 30, 2017 2016 Balance at beginning of period $ 4,639 $ 4,930 Increase to warranty expense 1,806 4,249 Deduction for warranty charges (3,314 ) (4,464 ) Change due to foreign currency translation 43 (76 ) Balance at end of period $ 3,174 $ 4,639 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Our intangible assets consist of goodwill of $1.0 million , which is not being amortized, and purchased technology of $0.7 million , which is amortized over its estimated useful life. No impairment expense has been recorded for the last three fiscal years. Intangible assets balances, subject to amortization, at September 30, 2017 and 2016 consisted of the following (in thousands): September 30, 2017 September 30, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Purchased technology $ 11,749 $ (11,033 ) $ 716 $ 11,749 $ (10,693 ) $ 1,056 Amortization of intangible assets recorded for the years ended September 30, 2017 , 2016 and 2015 , was $0.4 million . Estimated amortization expense for each of the five subsequent fiscal years is expected to be (in thousands): Years Ended September 30, Total 2018 $ 204 2019 176 2020 176 2021 160 2022 — On August 7, 2006, we purchased certain assets related to the manufacturing of ANSI medium-voltage switchgear and circuit breaker business from General Electric Company (GE). In connection with the acquisition, we entered into a 15 -year supply agreement with GE pursuant to which GE would purchase from us all of its requirements for ANSI medium-voltage switchgear and circuit breakers and other related equipment and components (the Products). We recorded an intangible asset related to this supply agreement. On December 30, 2013, we and GE amended the supply agreement to allow GE to manufacture similar Products for sale immediately and allow them to begin purchasing Products from other suppliers beginning December 31, 2014. In return, GE paid us $10 million upon execution of the amended supply agreement and agreed to pay an additional $7 million over three years, beginning March 2015. The final balance of $2.3 million was received in April 2017. We wrote off the intangible asset related to the original supply agreement and recorded a deferred credit in the amount of $8.1 million at December 31, 2013, the amount by which the total proceeds from GE exceeded the unamortized balance of our intangible asset. We are amortizing this deferred credit over the four -year life of the agreement and have recognized gains in other income of $2.0 million for all three fiscal years ended September 30, 2017 , 2016 and 2015. As of September 30, 2017, there is approximately $0.5 million remaining in the deferred credit balance. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following (in thousands): September 30, 2017 2016 Industrial development revenue bonds $ 2,000 $ 2,400 Less: current portion (400 ) (400 ) Total long-term debt $ 1,600 $ 2,000 The annual maturities of long-term debt as of September 30, 2017 , were as follows (in thousands): Year Ending September 30, Long‑Term Debt Maturities 2018 $ 400 2019 400 2020 400 2021 400 2022 400 Total long-term debt maturities $ 2,000 U.S. Revolver We have a $75.0 million revolving credit facility (U.S. Revolver) to provide working capital support and letters of credit. In June 2017, we entered into the Third Amendment to the Credit Agreement (the Third Amendment). The Third Amendment, among other things, (i) extended the Maturity Date from December 2018 to June 2022; (ii) amended the definition of Applicable Rate by (a) providing that Pricing Level I shall apply when a Cash Collateral Period (described below) is in effect and that Pricing Level II shall apply when no Cash Collateral Period is in effect, (b) decreasing the Letter of Credit Fee percentage for Pricing Level I from 1.00% to 0.875% and (c) increasing the Commitment Fee percentage for both Pricing Level I and Pricing Level II from 0.1875% to 0.20% ; (iii) added a new requirement that during a Cash Collateral Period we maintain a cash balance in a pledged cash collateral account equal to at least 102% of the Outstanding Amount of Revolving Loans and Letter of Credit Obligations and (iv) modified the Financial Covenants by requiring that, during any Cash Collateral Period, the Consolidated Current Ratio be no less than 1.10 to 1.0. Price Level 3 in the prior agreement was removed and our ability to pay dividends remains subject to financial covenant restrictions. Generally, a Cash Collateral Period under the Third Amendment is defined as a fiscal quarter during which we have pledged our cash collateral account to the Administrative Agent. A Cash Collateral Period will terminate on the last day of the fiscal quarter in which we satisfy the Level II Pricing Covenants set forth in the Third Amendment for two consecutive fiscal quarters. If we are not in compliance with the Level II Pricing Covenants, we are subject to Level I Pricing Covenants. The Cash Collateral Period was in effect as of September 30, 2017; therefore, we have placed $24.9 million in a pledged cash collateral account, which was approximately 102% of our outstanding letters of credit as of September 30, 2017 . The cash collateral associated with the outstanding letters of credit that are due to expire beyond twelve months has been classified as non-current restricted cash on the balance sheet as of September 30, 2017 . The interest rate for amounts outstanding under the U.S. Revolver is a floating rate based upon the higher of the Federal Funds Rate plus 0.5%, the bank’s prime rate, or the Eurocurrency rate plus 1.00%. Once the applicable rate is determined, a margin ranging up to 1.25% , is added to the applicable rate. The U.S. Revolver provides for the issuance of letters of credit which reduce the amounts that may be borrowed under this revolver. The amount available under the U.S. Revolver was reduced by $24.1 million for our outstanding letters of credit at September 30, 2017 . There were no borrowings outstanding under the U.S. Revolver as of September 30, 2017 . Amounts available under the U.S. Revolver were $50.9 million at September 30, 2017 . The U.S. Revolver expires on June 27, 2022. The U.S. Revolver is collateralized by a pledge of 100% of the voting capital stock of each of our domestic subsidiaries and 65% of the voting capital stock of each non-domestic subsidiary, as well as by the pledged cash collateral account during any Cash Collateral Period. The U.S. Revolver provides for customary events of default and carries cross-default provisions with other existing debt agreements. If an event of default (as defined in the U.S. Revolver) occurs and is continuing, on the terms and subject to the conditions set forth in the U.S. Revolver, amounts outstanding under the U.S. Revolver may be accelerated and may become immediately due and payable. As of September 30, 2017 , we were in compliance with all of the financial covenants of the U.S. Revolver. Industrial Development Revenue Bonds We borrowed $8.0 million in October 2001 through a loan agreement funded with proceeds from tax-exempt industrial development revenue bonds (Bonds). These Bonds were issued by the Illinois Development Finance Authority and were used for the completion of our Northlake, Illinois facility. Pursuant to the Bond issuance, a reimbursement agreement between us and a major domestic bank required an issuance by the bank of an irrevocable direct-pay letter of credit (Bond LC), as collateral, to the Bonds’ trustee to guarantee payment of the Bonds’ principal and interest when due. The Bond LC is subject to both early termination and extension provisions customary to such agreements, as well as various covenants, for which we were in compliance at September 30, 2017 . While the Bonds mature in 2021, the reimbursement agreement requires annual redemptions of $0.4 million that commenced on October 25, 2002. A sinking fund is used for the redemption of the Bonds. The Bonds bear interest at a floating rate determined weekly by the Bonds’ remarketing agent, which was the underwriter for the Bonds and is an affiliate of the bank. This interest rate was 1.19% as of September 30, 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Long-Term Debt See Note F herein for a discussion of our long-term debt. Leases We lease certain offices, facilities and equipment under operating leases expiring at various dates through 2023. We also sublease certain facilities that we are no longer occupying. Our sublease terms do not fully cover the existing rental commitments on certain facilities. At September 30, 2017 , the future minimum annual rental commitments and expected receipts under non-cancelable operating leases having terms in excess of one year were as follows (in thousands): Years Ended September 30, Operating Leases Payments Operating Sublease Income 2018 $ 3,420 $ (1,530 ) 2019 2,973 (1,292 ) 2020 1,937 (39 ) 2021 1,767 — 2022 1,743 — Thereafter 1,172 — Total lease commitments $ 13,012 $ (2,861 ) Lease expense and sublease income from third parties was as follows (in thousands): Year Ended September 30, 2017 2016 2015 Rental expense $ 3,734 $ 4,469 $ 4,907 Sublease income from third parties (1,389 ) (986 ) (947 ) Letters of Credit and Bonds Certain customers require us to post bank letter of credit guarantees or surety bonds. These guarantees and surety bonds assure that we will perform under the terms of our contract. In the event of default, the counterparty may demand payment from the bank under a letter of credit or performance by the surety under a bond. To date, there have been no significant expenses related to either letters of credit or surety bonds for the periods reported. We were contingently liable for secured and unsecured letters of credit of $24.1 million as of September 30, 2017 . We also had performance and maintenance bonds totaling $218.8 million that were outstanding, with additional bonding capacity of $531.2 million available, at September 30, 2017 . We have a $6.7 million facility agreement (Facility Agreement) between Powell (UK) Limited and a large international bank. This Facility Agreement provides Powell (UK) Limited the ability to enter into bank guarantees as well as forward exchange contracts and currency options. At September 30, 2017 , we had outstanding guarantees totaling $4.4 million under this Facility Agreement and amounts available under this Facility Agreement were $2.3 million . This facility expires in May 2018. The Facility Agreement provides for financial covenants and customary events of default, and carries cross-default provisions with our U.S. Revolver. If an event of default (as defined in the Facility Agreement) occurs and is continuing, per the terms and subject to the conditions set forth therein, obligations outstanding under the Facility Agreement may be accelerated and may become or be declared immediately due and payable. As of September 30, 2017 , we were in compliance with all of the financial covenants of the Facility Agreement. Litigation We are involved in various legal proceedings, claims and other disputes arising from our commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. Although we can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on us, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on our consolidated financial position or results of operations or liquidity. Liquidated Damages Certain of our customer contracts have schedule and performance obligation clauses that, if we fail to meet them, could require us to pay liquidated damages. Each individual contract defines the conditions under which the customer may make a claim against us. As of September 30, 2017 , our exposure to possible liquidated damages was $2.3 million , of which approximately $1.2 million was probable. Based on our actual or projected failure to meet these various contractual commitments, $1.2 million has been recorded as a reduction to revenue. We will attempt to obtain change orders, contract extensions or accelerate project completion which may resolve the potential for any unaccrued liquidated damage. Should we fail to achieve relief on some or all of these contractual obligations, we could be required to pay additional liquidated damages, which could negatively impact our future operating results. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the income tax provision (benefit) were as follows (in thousands): Year Ended September 30, 2017 2016 2015 Current: Federal $ (7,782 ) $ (1,395 ) $ 2,638 State (101 ) 449 699 Foreign 350 899 (306 ) (7,533 ) (47 ) 3,031 Deferred: Federal 392 1,923 3,296 State (515 ) 47 420 Foreign 223 360 6,805 100 2,330 10,521 Total income tax provision (benefit) $ (7,433 ) $ 2,283 $ 13,552 Income (loss) before income taxes was as follows (in thousands): Year Ended September 30, 2017 2016 2015 U.S. $ (19,932 ) $ 5,087 $ 33,549 Other than U.S. 3,013 12,706 (10,558 ) Income (loss) before income taxes $ (16,919 ) $ 17,793 $ 22,991 A reconciliation of the statutory U.S. income tax rate and the effective income tax rate, as computed on earnings before income tax provision in each of the three years presented in the Consolidated Statements of Operations, was as follows: Year Ended September 30, 2017 2016 2015 Statutory rate 35 % 35 % 35 % State income taxes, net of federal benefit 2 2 3 Research and development credit 9 (8 ) (21 ) Foreign rate differential 2 (8 ) 4 Domestic production activities deduction — — (3 ) Foreign valuation allowance 2 (11 ) 43 NOL carryback impact on deductions (4 ) — — Other (2 ) 3 (2 ) Effective rate 44 % 13 % 59 % Our income tax provision (benefit) reflects an effective tax rate on pre-tax earnings of 44% in Fiscal 2017 compared to 13% and 59% in Fiscal 2016 and 2015 , respectively. The effective tax rate for Fiscal 2017 was favorably impacted by the lower tax rate in the U.K., the relative amounts of income/loss recognized in various jurisdictions, the utilization of net operating loss carryforwards in Canada that have been fully reserved with a valuation allowance, as well as $0.9 million of discrete items recognized during the year, primarily related to the Research and Development Tax Credit (R&D Tax Credit). The effective tax rate for Fiscal 2016 was favorably impacted by the statutory tax rates in the U.K. and Canada and the relative amounts of income earned in those jurisdictions, as well as the utilization of net operating loss carryforwards mentioned above. Additionally, the effective tax rate for Fiscal 2016 was favorably impacted by a $0.8 million discrete item recorded in the first quarter of Fiscal 2016 related to the retroactive reinstatement of the R&D Tax Credit for the previously expired period from January 1, 2015 to September 30, 2015. The effective tax rate for Fiscal 2015 was adversely impacted by the establishment of a valuation allowance against our Canadian deferred tax assets during the second quarter of Fiscal 2015. This was partially offset by the release of a $4.1 million FIN 48 reserve related to the R&D Tax Credit upon closing an IRS audit. We also recorded a $0.6 million discrete item in Fiscal 2015 that was related to the retroactive reinstatement of the R&D Tax Credit referred to above. We have not recorded deferred income taxes on $22.2 million of undistributed earnings of our foreign subsidiaries because of management’s intent to indefinitely reinvest such earnings. Upon distribution of these earnings in the form of dividends or otherwise, we may be subject to U.S. income taxes and foreign withholding taxes. It is not practical, however, to estimate the amount of taxes that may be payable on the eventual remittance of these earnings. We are subject to income tax in the U.S., multiple state jurisdictions and certain international jurisdictions, primarily the U.K. and Canada. We do not consider any state in which we do business to be a major tax jurisdiction. We remain open to examination in the other jurisdictions as follows: Canada 2012 – 2016, United Kingdom 2015 – 2016 and the United States 2013, 2015 and 2016. The net deferred income tax asset was comprised of the following (in thousands): September 30, 2017 2016 Current deferred income taxes: Gross assets $ 3,978 $ 4,384 Gross liabilities and valuation allowance (439 ) (378 ) Net current deferred income tax asset 3,539 4,006 Noncurrent deferred income taxes: Gross assets 18,559 16,170 Gross liabilities and valuation allowance (18,330 ) (16,308 ) Net noncurrent deferred income tax asset (liability) 229 (138 ) Net deferred income tax asset $ 3,768 $ 3,868 The tax effect of temporary differences between U.S. GAAP accounting and federal income tax accounting creating deferred income tax assets and liabilities was as follows (in thousands): September 30, 2017 2016 Deferred Tax Assets: Net operating income/loss $ 11,823 $ 10,453 Uniform capitalization and inventory 1,432 1,596 Deferred compensation 2,009 1,853 Stock-based compensation 1,094 760 Reserve for accrued employee benefits 1,208 1,679 Warranty accrual 892 1,388 Goodwill 64 345 Postretirement benefits liability 264 503 Allowance for doubtful accounts 14 220 Accrued legal 435 294 Credit carryforwards 3,258 1,292 Other 44 171 Deferred tax assets 22,537 20,554 Deferred Tax Liabilities: Depreciation and amortization (10,002 ) (8,247 ) Deferred tax liabilities (10,002 ) (8,247 ) Less: valuation allowance (8,767 ) (8,439 ) Net deferred tax asset $ 3,768 $ 3,868 During Fiscal 2015, we established a valuation allowance in the amount of $9.3 million against Canadian net deferred tax assets. In assessing the realizability of net deferred tax assets, we consider whether it is more likely than not that some portion or all of the net deferred tax assets may not be realized. The ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Due to the historical Canadian losses, and the losses that we projected at the time of determination, we were required under the more-likely-than-not accounting standard to record a valuation allowance against the Canadian net deferred tax assets because we anticipated that we may not be able to realize the benefits of the net operating loss carryforwards and other deductible differences. At September 30, 2017, the valuation allowance of $8.8 million was primarily related to these Canadian net deferred tax assets. A rollforward of the valuation allowance for the past three years is summarized below: Balance at September 30, 2014 $ 903 Charged to cost and expenses 10,048 Charged to other accounts (895 ) Balance at September 30, 2015 $ 10,056 Charged to cost and expenses (1,934 ) Charged to other accounts 317 Balance at September 30, 2016 $ 8,439 Charged to cost and expenses (260 ) Charged to other accounts 588 Balance at September 30, 2017 $ 8,767 A reconciliation of the beginning and ending amount of the unrecognized tax benefits follows (in thousands): Year Ended September 30, 2017 2016 2015 Balance at beginning of period $ 1,046 $ 784 $ 4,026 Increases related to tax positions taken during the current period 179 293 954 Increases related to tax positions taken during a prior period 338 — 2 Decreases related to expiration of statute of limitations — (31 ) (49 ) Decreases related to settlement with taxing authorities (344 ) — (4,149 ) Balance at end of period $ 1,219 $ 1,046 $ 784 Our continuing policy is to recognize interest and penalties related to income tax matters as tax expense. The amount of interest and penalty expense recorded for the year ended September 30, 2017 was not material. During Fiscal 2013, prior year U.S. federal income tax returns were amended to reflect increased R&D Credits and unrecognized tax benefits related to these refund claims were recorded. These amended returns, along with the refund claims, were subject to an Internal Revenue Service audit which was closed during the second quarter of Fiscal 2015, resulting in a $4.1 million tax benefit. Due to the expiration of certain federal statutes of limitations, management believes that, within the next 12 months, it is reasonably possible that the unrecognized tax benefits will decrease by approximately 11% . Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner not consistent with management’s expectations, we could be required to adjust our provision for income tax in the period such resolution occurs. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Retirement Plans We have defined employee contribution plans for substantially all of our U.S. employees (401(k) plan) and our Canadian employees (Registered Retirement Savings Plan). We recognized expenses under these plans primarily related to matching contributions of $2.8 million , $3.9 million and $5.9 million in Fiscal 2017 , 2016 and 2015 , respectively. Deferred Compensation We offer a non-qualified deferred compensation plan to a select group of management and highly compensated individuals. The plan permits the deferral of up to 50% of a participant’s base salary and/or 100% of a participant’s annual incentive bonus. The deferrals are held in a separate trust, an irrevocable rabbi trust (the Rabbi Trust), which has been established to administer the plan. The Rabbi Trust is intended to be used as a source of funds to match respective funding obligations to participants. The assets of the trust are subject to the claims of our creditors in the event that we become insolvent. Consequently, the Rabbi Trust qualifies as a grantor trust for income tax purposes. We make periodic payments into company-owned life insurance policies held in this Rabbi Trust to fund the expected obligations arising under this plan. The assets and liabilities of the plan are recorded in other assets and deferred compensation, respectively, in the accompanying Consolidated Balance Sheets. Changes in the deferred compensation balance are recorded to compensation expense and reflected within the selling, general and administrative line in the Consolidated Statements of Operations. The plan is not qualified under Section 401 of the Internal Revenue code. We recorded net compensation expense adjustments of $0.1 million related to this plan in Fiscal 2017 . Total assets held by the trustee and deferred compensation liabilities were $6.4 million and $5.0 million , respectively, at September 30, 2017 . Of the $6.4 million of total assets held by the trustee, $5.6 million is invested in company-owned life insurance policies and the remainder in mutual funds. Certain former executives were provided an executive benefit plan which provides for fixed payments upon normal retirement on or after age 65 and the completion of at least 10 years of continuous employment. The estimated present value of these payments were accrued over the service life of these individuals, and $0.3 million is recorded in deferred compensation related to this executive benefit plan. To assist in funding the deferred compensation liability, we have invested in company-owned life insurance policies. The cash surrender value of these policies is presented in other assets and was $4.7 million at September 30, 2017 . Retiree Medical Plan We have a plan that extends health benefits to retirees that are also available to active employees under our existing health plans. This plan is unfunded. The plan provides coverage for employees with at least 10 years of service who are age 55 or older but less than 65 . The retiree is required to pay the COBRA rate less a subsidy provided by us based on years of service at the time of retirement. The unfunded liability was $1.1 million and $1.4 million as of September 30, 2017 and 2016 , respectively, and our net periodic postretirement benefit expenses have been less than $0.1 million for the last three fiscal years. Due to the immateriality of the costs and liabilities of this plan, no further disclosure is being presented. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We have the following stock-based compensation plans: 2014 Equity Incentive Plan In February 2014, our stockholders approved and adopted at the Annual Meeting of Stockholders the 2014 Equity Incentive Plan (the 2014 Plan) which replaced our 2006 Equity Compensation Plan (2006 Plan). Persons eligible to receive awards under the 2014 Plan include our officers and employees. The 2014 Plan authorizes stock options, stock appreciation rights, restricted stock, restricted stock units and performance-based awards, as well as certain other awards. Restricted stock grants vest equally over their respective vesting period on each anniversary of the grant date and compensation expense is recognized over their respective vesting periods based on the price per share on the grant date. In accordance with the 2014 Plan, the compensation committee has authorized grants of restricted stock units (RSUs) to certain officers and key employees of the company. The fair value of the RSUs is based on the closing price of our common stock as reported on the NASDAQ Global Market (NASDAQ) on the grant dates. Typically, these grants vest over a three -year period from their date of issuance. Sixty percent of the grant is time-based and vests over a three -year period on each anniversary of the grant date, based on continued employment. The remaining forty percent of the grant is earned based on the three -year earnings performance of the Company following the grant date. At September 30, 2017 , there were 177,737 RSUs outstanding. The RSUs do not have voting rights but do receive dividend equivalents upon vesting; additionally, the shares of common stock underlying the RSUs are not considered issued and outstanding until vested and common stock is issued. Total RSU activity (number of shares) for the past fiscal year is summarized below: Number of Restricted Stock Units Weighted Average Fair Value Per Share Outstanding at September 30, 2016 159,988 $ 43.12 Granted 62,100 39.57 Vested (29,051 ) 39.08 Forfeited/cancelled (15,300 ) 26.39 Outstanding at September 30, 2017 177,737 $ 37.00 We have reserved 750,000 shares of common stock for issuance under the 2014 Plan. As of September 30, 2017, there were 664,911 shares of common stock left available. 2014 Non-Employee Director Equity Incentive Plan In February 2014, our stockholders approved and adopted at the Annual Meeting of Stockholders the 2014 Non-Employee Director Equity Incentive Plan (the 2014 Director Plan). The total number of shares of common stock reserved under the plan is 150,000 shares. The plan is administered by the Compensation Committee. Eligibility to participate in the plan is limited to those individuals who are members of the Board of the Company and who are not employees of the Company or any affiliate of the Company. Under the terms of the 2014 Director Plan, the maximum number of shares that may be granted during any calendar year to any individual is 12,000 shares. The total number of shares that may be issued for awards to any single participant during a calendar year for other stock-based awards (excluding stock options and SARs) is 4,000 shares. The Compensation Committee has determined that each non-employee director will receive 2,000 restricted shares of the Company’s common stock annually. Fifty percent of the restricted stock granted to each of our non-employee directors vests immediately, while the remaining fifty percent vests on the anniversary of the grant date. Compensation expense is recognized immediately for the first fifty percent of the restricted stock granted, while compensation expense for the remaining fifty percent will be recognized over the remaining vesting period based on the price per share on the grant date. In February 2017, we issued 17,000 shares of restricted stock to our non-employee directors at a price of $34.24 per share under the 2014 Director Plan. In February 2016, we issued 16,000 shares of restricted stock to our non-employee directors at a price of $25.63 per share and in April 2016, we also issued 1,000 shares of restricted stock to a non-employee director at a price of $29.38 per share under the 2014 Director Plan. The total number of shares of common stock available for future awards under the 2014 Director plan was 84,600 shares as of September 30, 2017 . At September 30, 2017 and 2016 , there were 16,000 shares and 26,800 shares of unvested restricted stock outstanding. Total compensation expense related to restricted stock grants under all plans was $0.7 million , $0.7 million and $1.3 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. Total compensation expense related to RSU’s under all plans was $2.0 million , $4.2 million and $1.9 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. We record the amortization of non-vested restricted stock and restricted stock units as an increase to additional paid-in capital. As of September 30, 2017 and 2016 , amounts not yet recognized related to non-vested stock totaled $1.6 million and $2.1 million , respectively. As of September 30, 2017 , the total weighted average remaining contractual life of our restricted stock and RSU’s is six months and 1.74 years , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure certain financial assets and liabilities at fair value. Fair value is defined as an “exit price” which represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in valuing an asset or liability. The accounting guidance requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. As a basis for considering such assumptions and inputs, a fair value hierarchy has been established that identifies and prioritizes three levels of inputs to be used in measuring fair value. The three levels of the fair value hierarchy are as follows: Level 1 — Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 — Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions. The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2017 (in thousands): Fair Value Measurements at September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at September 30, 2017 Assets: Cash and cash equivalents $ 68,359 $ — $ — $ 68,359 Short-term investments 26,829 — — 26,829 Restricted cash 24,851 — — 24,851 Deferred compensation — 6,442 — 6,442 Liabilities: Deferred compensation — 4,991 — 4,991 The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2016 (in thousands): Fair Value Measurements at September 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at September 30, 2016 Assets: Cash and cash equivalents $ 97,720 $ — $ — $ 97,720 Deferred compensation — 5,773 — 5,773 Liabilities: Deferred compensation — 4,449 — 4,449 Fair value guidance requires certain fair value disclosures be presented in both interim and annual reports. The estimated fair value amounts of financial instruments have been determined using available market information and valuation methodologies described below. Cash and cash equivalents Cash and cash equivalents, primarily funds held in money market savings instruments, are reported at their current carrying value which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in our Consolidated Balance Sheets. Short-term Investments - Short-term investments include time deposits with original maturities of three months or more. Restricted Cash - Restricted cash represents a pledged cash collateral balance which is required under our recently amended credit agreement and is held in an interest-bearing savings account. See Note F for further discussion on restricted cash. Deferred Compensation – We hold investments in an irrevocable Rabbi Trust for our deferred compensation plan. These assets include both mutual fund investments and company-owned life insurance policies. Under the plan, participants designate investment options to serve as the basis for measurement of the notional value of their accounts. The mutual funds and company-owned life insurance policies are combined in the plan and are therefore categorized as Level 2 in the fair value measurement hierarchy. |
Geographic Information
Geographic Information | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Revenues by country represent sales to unaffiliated customers as determined by the ultimate destination of our products and services, summarized for the last three fiscal years by region in the table below (in thousands): Year Ended September 30, 2017 2016 2015 United States $ 279,352 $ 405,298 $ 474,038 Canada 45,540 77,252 101,191 Middle East and Africa 26,639 40,294 40,557 Europe 21,194 26,200 23,567 Mexico, Central and South America 19,309 8,304 10,479 Far East 3,877 7,895 12,026 Total revenues $ 395,911 $ 565,243 $ 661,858 September 30, 2017 2016 Long-lived assets: United States $ 82,589 $ 88,304 Canada 52,122 52,292 United Kingdom 4,709 4,381 Total $ 139,420 $ 144,977 Long-lived assets by country consist of property, plant and equipment, net of accumulated depreciation and are determined based on the location of the tangible assets. |
Restructuring and Separation Ex
Restructuring and Separation Expenses | 12 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Separation Expenses | Restructuring and Separation Expenses In Fiscal 2017 , we incurred approximately $1.3 million of restructuring costs as we continued to reduce our overall cost structure to better align our costs with future production requirements. Of the $1.3 million of restructuring costs incurred this fiscal year, $1.0 million has been paid and the remaining $0.3 million will be paid in Fiscal 2018. In Fiscal 2016, we incurred approximately $7.9 million of separation costs, of which $3.8 million were separation costs related to the departure of our former Chief Executive Officer in December 2015. Additionally in Fiscal 2016, we incurred approximately $0.5 million of restructuring costs related to a Canadian facility that we leased and exited in the third quarter of Fiscal 2016 . Of the $7.9 million in separation costs, $6.8 million was paid in Fiscal 2016 and the remaining $1.1 million was paid in Fiscal 2017. In Fiscal 2015, we incurred $3.4 million of restructuring and separation costs. Of this, $2.6 million were separation and severance costs associated with headcount reductions in Canada and certain U.S. operations, as well as the departure of our former Chief Operating Officer. The remaining $0.8 million was related to the exit of one of our previously occupied leased facilities in Acheson, Alberta, Canada and the write-off of associated leasehold improvements. |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program On December 17, 2014, our Board of Directors authorized a share repurchase program which allowed us to repurchase up to $25 million of our outstanding stock. The purchases were made from time to time in the open market through Rule 10b5-1 trading plans in accordance with applicable laws, rules and regulations. The repurchase of shares was funded from cash on hand and cash provided by operating activities. The Repurchase Program expired on December 31, 2015 . As of December 31, 2015, we had purchased 806,018 shares at a cost of $25 million under the Repurchase Program. The average purchase price per share since inception of the program was $31.02 . |
Quarterly Information
Quarterly Information | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | Quarterly Information The table below sets forth the unaudited consolidated operating results by fiscal quarter for the years ended September 30, 2017 and 2016 (in thousands, except per share data): 2017 Quarters First Second Third Fourth 2017 Revenues $ 110,341 $ 104,680 $ 85,927 $ 94,963 $ 395,911 Gross profit 14,999 15,822 9,054 10,894 50,769 Net income (loss) (300 ) (829 ) (3,215 ) (5,142 ) (9,486 ) Earnings (loss) per share: Basic $ (0.03 ) $ (0.07 ) $ (0.28 ) $ (0.45 ) $ (0.83 ) Diluted $ (0.03 ) $ (0.07 ) $ (0.28 ) $ (0.45 ) $ (0.83 ) 2016 Quarters First Second Third Fourth 2016 Revenues $ 149,977 $ 152,266 $ 133,207 $ 129,793 $ 565,243 Gross profit 23,150 30,094 27,285 25,676 106,205 Net income (loss) (459 ) 5,567 4,894 5,508 15,510 Earnings (loss) per share: Basic $ (0.04 ) $ 0.49 $ 0.43 $ 0.48 $ 1.36 Diluted $ (0.04 ) $ 0.49 $ 0.43 $ 0.48 $ 1.36 The sum of the individual earnings per share amounts may not agree with year-to-date earnings per share as each period’s computation is based on the weighted-average number of shares outstanding during the period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 7, 2017, our Board of Directors declared a quarterly cash dividend on our common stock in the amount of $0.26 per share. The dividend is payable on December 13, 2017 to shareholders of record at the close of business on November 21, 2017. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Powell and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. The most significant estimates used in our financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, warranty accruals and income taxes. The amounts recorded for warranties, legal, income taxes, impairment of long-lived assets (when applicable) and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience and on various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Additionally, the recognition of deferred tax assets requires estimates related to future income and other assumptions regarding timing and future profitability. Estimates may change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents Cash and cash equivalents, primarily funds held in money market savings instruments, are reported at their current carrying value which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in our Consolidated Balance Sheets. Short-term Investments - Short-term investments include time deposits with original maturities of three months or more. Restricted Cash - Restricted cash includes cash and cash equivalents that are unavailable for withdrawal or usage for general obligations. Restricted cash on our Consolidated Balance Sheet represents a pledged cash collateral balance which is required under our recently amended credit agreement and is held in an interest-bearing savings account. See Note F for further discussion on restricted cash. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments include cash, cash equivalents, short-term investments, restricted cash, receivables, deferred compensation, payables and debt obligations. Except as described below, due to the short-term nature of account receivables and account payables, the book value is representative of their fair value. The carrying value of debt approximates fair value as interest rates are indexed to the Federal Funds Rate or the bank’s prime rate. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated net of allowances for doubtful accounts. We maintain and continually assess the adequacy of the allowance for doubtful accounts representing our estimate for losses resulting from the inability of our customers to pay amounts due to us. This estimated allowance is based on historical experience of uncollected accounts, the level of past due accounts, the overall level of outstanding accounts receivable, information about specific customers with respect to their inability to make payments and expectations of future conditions that could impact the collectability of accounts receivable. Future changes in our customers’ operating performance and cash flows, or in general economic conditions, could have an impact on their ability to fully pay these amounts, which could have a material impact on our operating results. In most cases, receivables are not collateralized. However, we utilize letters of credit to secure payment on projects when possible. |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts Costs and estimated earnings in excess of billings on uncompleted contracts arise when revenues are recorded on a percentage-of-completion basis but cannot be invoiced under the terms of the contract. Such amounts are invoiced upon completion of contractual milestones. Costs and estimated earnings in excess of billings on uncompleted contracts also include certain costs associated with unapproved change orders. These costs are included when the approval of the change order is probable. Amounts are carried at the lower of cost or net realizable value. Revenue is recognized to the extent of costs incurred when recovery is probable. The amounts recorded involve the use of judgments and estimates; thus, actual recoverable amounts could differ from original assumptions. In accordance with industry practice, assets and liabilities related to costs and estimated earnings in excess of billings on uncompleted contracts, as well as billings in excess of costs and estimated earnings on uncompleted contracts, have been classified as current. The contract cycle for certain long-term contracts may extend beyond one year; thus, collection of amounts related to these contracts may extend beyond one year. |
Inventories | Inventories Inventories are stated at the lower of cost or market using weighted-average methods and include the cost of materials, labor and manufacturing overhead. We use estimates in determining the level of reserves required to state inventory at the lower of cost or market. Our estimates are based on market activity levels, production requirements, the physical condition of products and technological innovation. Changes in any of these factors may result in adjustments to the carrying value of inventory. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and improvements, which extend the useful lives of existing equipment, are capitalized and depreciated. Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the Consolidated Statements of Operations. We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value may not be realizable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if recording an impairment of such asset is necessary. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. This requires us to make long-term forecasts of the future revenues and the costs related to the assets subject to review. Forecasts require assumptions about demand for our products and future market conditions. Estimating future cash flows requires significant judgment and our projections may vary from cash flows eventually realized. Future events and unanticipated changes to assumptions could require a provision for impairment in a future period. The effect of any impairment would be reflected in income (loss) from operations in the Consolidated Statements of Operations. In addition, we estimate the useful lives of our property, plant and equipment and periodically review these estimates to determine whether these lives are appropriate. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, based on the income tax laws and rates in the countries in which operations are conducted and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Developing our provision for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. In assessing the extent to which net deferred tax assets may be realized, we consider whether it is more likely than not that some portion or all of the net deferred tax assets may not be realized. The ultimate realization of net deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. Estimates may change as new events occur, estimates of future taxable income during the carryforward period are reduced or increased, additional information becomes available or operating environments change, which may result in a full or partial reversal of the valuation allowance. We will continue to assess the adequacy of the valuation allowance on a quarterly basis. Our judgments and tax strategies are subject to audit by various taxing authorities. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accounting literature also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial statements. |
Revenue Recognition | Revenue Recognition Our revenues are primarily generated from the engineering and manufacturing of custom products under long-term contracts that may last from one month to several years, depending on the contract. Revenues from long-term contracts are recognized on the percentage-of-completion method of accounting. Occasionally a contract may require that we segment the project into specific deliverables for revenue recognition. Segmenting a contract may result in different interim rates of profitability for each scope of service than if we had recognized revenue on a combined basis. Under the percentage-of-completion method of accounting, revenues are recognized as work is performed. The revenue earned to date is calculated by multiplying the total contract price by the percentage of performance to date, which is based on total costs or total labor dollars incurred to date compared to the total estimated costs or total labor dollars estimated at completion. The method used to determine the percentage of completion is typically the cost method, unless the labor method is a more accurate method of measuring the progress of the project. Application of the percentage-of-completion method of accounting requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and all costs associated with operation of equipment. The cost estimation process is based upon the professional knowledge and experience of our engineers, project managers and financial professionals. Factors that are considered in estimating the work to be completed and ultimate contract recovery include the availability and productivity of labor, the nature and complexity of the work to be performed, the effect of change orders, the availability of materials, the effect of any delays on our project performance and the recoverability of any claims. Changes in job performance, job conditions, estimated profitability and final contract settlements, including our estimate of liquidated damages, if any, may result in revisions to costs and income, with their effects being recognized in the period in which the revisions are determined. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. Revenues associated with maintenance, repair and service contracts are recognized when the services are performed. Expenses related to these types of services are recognized as incurred. |
Warranty Costs | Warranty Costs We provide for estimated warranty costs with the recognition of revenue based upon historical rates applicable to individual product lines. In addition, specific provisions are made when the costs of such warranties are expected to exceed accruals. Our standard terms and conditions of sale include a warranty for parts and service for the earlier of 18 months from the date of shipment or 12 months from the date of energization, whichever occurs first. Occasionally projects require warranty terms that are longer than our standard terms due to the nature of the project. Extended warranty terms may be negotiated and included in our contracts. We use past experience and historical claims to determine the estimated liability. Actual results could differ from our estimate. |
Research and Development Expense | Research and Development Expense Research and development activities are directed toward the development of new products and processes as well as improvements in existing products and processes. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred. |
Foreign Currency Translation | Foreign Currency Translation The functional currency for our foreign subsidiaries is the local currency in which the entity is located. The financial statements of all subsidiaries with a functional currency other than the U.S. Dollar have been translated into U.S. Dollars. All assets and liabilities of foreign operations are translated into U.S. Dollars using year-end exchange rates, and all revenues and expenses are translated at average rates during the respective period. The U.S. Dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the cumulative currency translation adjustments in accumulated other comprehensive income (loss) in stockholders’ equity. |
Stock-Based Compensation | Stock-Based Compensation We measure stock-based compensation cost at the grant date based on the fair value of the award. Compensation expense is recognized over the period during which the recipient is required to provide service in exchange for the awards, typically the vesting period. Excess income tax benefits related to share-based compensation expense is recognized as income tax expense or benefit in the Consolidated Statement of Operations. Cash paid when directly withholding shares on an employee's behalf for tax withholding purposes is classified as a financing activity. We account for forfeitures as they occur, rather than estimate expected forfeitures |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition that supersedes previously issued revenue recognition guidance. This standard provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue (and the related cash flows) arising from customer contracts, significant judgments and changes in judgments used in applying the revenue model and the assets recognized from costs incurred to obtain or fulfill a contract. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which would be our fiscal year ending September 30, 2019. We plan to use the modified retrospective basis upon adoption. While we are still evaluating the potential impact of this standard on our financial statements, we believe accounting for variable consideration and the number of performance obligations contained in each contract will have the greatest significance. The materiality of this guidance on our financial statements will be determined in large part by the contracts that are in progress as of the adoption date. In November 2015, the FASB issued an amendment to the topic regarding income taxes which requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in the statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This amendment is effective for annual reporting periods beginning after December 15, 2016, which would be our fiscal year ending September 30, 2018. We have no plans for early adoption. We are still evaluating this new amendment, but we do not expect it to have a material impact on our consolidated financial position or results of operations. In February 2016, the FASB issued a new topic on leases which requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The new topic is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, which would be our fiscal year ending September 30, 2020. We are still evaluating the potential impact of this guidance on our financial statements. Our future obligations under operating leases as of September 30, 2017 are summarized in Note G of the Notes to Consolidated Financial Statements. In March 2016, the FASB issued new guidance on stock-based compensation, which includes amendments to existing guidance for employee share-based payment accounting. We elected to early adopt this new guidance in the first quarter of Fiscal 2017. Beginning Fiscal 2017, stock-based compensation excess tax benefits or deficiencies are reflected in the Consolidated Statement of Operations as a component of income taxes, whereas they were previously recorded in additional paid-in capital in the Consolidated Statement of Stockholders’ Equity. Additionally, we will now present excess tax benefits as an operating activity in the Consolidated Statements of Cash Flows. These changes have been adopted prospectively. Finally, we will continue to account for forfeitures as they occur, rather than estimate expected forfeitures. In November 2016, the FASB issued new standards on the statement of cash flows and restricted cash that change the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. These standards are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, which would be our fiscal year ending September 30, 2019. We have no plans for early adoption. We are still evaluating these new standards, but we do not expect them to have a material impact on our consolidated financial position or results of operations. In January 2017, the FASB issued new guidance on goodwill impairment intended to simplify the testing for goodwill impairment by the elimination of Step 2 in the determination on whether goodwill should be considered impaired. The annual and/or interim assessments are still required to be completed. This guidance is effective for fiscal years (including interim periods) beginning after December 15, 2019. The adoption of this guidance is not expected to have a material impact on our consolidated financial position or results of operations. In May 2017, the FASB issued a new topic on modification accounting with regards to stock-based compensation. This new topic clarifies when a change to the terms or conditions of a share-based payment award should be accounted for as a modification. An entity should account for the effects of a modification unless the fair value, vesting conditions and classification, as an equity instrument or a liability instrument, of the modified award are the same before and after a change to the terms or conditions of the share-based payment award. This topic is effective for annual reporting periods beginning after December 15, 2017, which would be our fiscal year ending September 30, 2018. We do not expect this topic to have a material impact on our consolidated financial position or results of operations. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information (in thousands): Year Ended September 30, 2017 2016 2015 Cash paid (received) during the period for: Interest paid, net of interest income $ (384 ) $ 4 70 Income taxes paid, net of refunds (764 ) (352 ) 2,298 Non-cash capital expenditures 634 221 147 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share for the years ended September 30, 2017 , 2016 and 2015 (in thousands, except per share data): Year Ended September 30, 2017 2016 2015 Numerator: Net income (loss) $ (9,486 ) $ 15,510 $ 9,439 Denominator: Weighted average basic shares 11,453 11,400 11,869 Dilutive effect of restricted stock units — 31 39 Weighted average diluted shares with assumed conversions 11,453 11,431 11,908 Net earnings (loss) per share: Basic earnings (loss) per share $ (0.83 ) $ 1.36 $ 0.80 Diluted earnings (loss) per share $ (0.83 ) $ 1.36 $ 0.79 |
Detail of Selected Balance Sh28
Detail of Selected Balance Sheet Accounts (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Activity in Allowance for Doubtful Accounts | Activity in our allowance for doubtful accounts consisted of the following (in thousands): September 30, 2017 2016 Balance at beginning of period $ 811 $ 746 Bad debt expense (recovery) (160 ) 187 Uncollectible accounts written off, net of recoveries (472 ) (120 ) Change due to foreign currency translation — (2 ) Balance at end of period $ 179 $ 811 |
Components of Inventories | The components of inventories are summarized below (in thousands): September 30, 2017 2016 Raw materials, parts and subassemblies $ 22,100 $ 29,639 Work-in-progress 600 996 Provision for excess and obsolete inventory (4,252 ) (4,114 ) Total inventories $ 18,448 $ 26,521 |
Components of Cost and Estimated Earnings and Related Amounts Billed on Uncompleted Contracts | The components of costs and estimated earnings and related amounts billed on uncompleted contracts are summarized below (in thousands): September 30, 2017 2016 Costs incurred on uncompleted contracts $ 987,164 $ 1,088,921 Estimated earnings 316,970 350,125 1,304,134 1,439,046 Less: Billings to date (1,278,746 ) (1,416,914 ) Net underbilled position $ 25,388 $ 22,132 Included in the accompanying balance sheets under the following captions: Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled $ 51,554 $ 66,106 Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled (26,166 ) (43,974 ) Net underbilled position $ 25,388 $ 22,132 |
Schedule of Property, Plant and Equipment | Property, plant and equipment are summarized below (in thousands): September 30, Range of 2017 2016 Asset Lives Land $ 22,441 $ 22,107 — Buildings and improvements 121,960 119,512 3 - 39 Years Machinery and equipment 106,113 103,268 3 - 15 Years Furniture and fixtures 3,806 3,806 3 - 10 Years Construction in process 1,749 1,009 — $ 256,069 $ 249,702 Less: Accumulated depreciation (116,649 ) (104,725 ) Total property, plant and equipment, net $ 139,420 $ 144,977 |
Activity in Warranty Accrual | Activity in our warranty accrual consisted of the following (in thousands): September 30, 2017 2016 Balance at beginning of period $ 4,639 $ 4,930 Increase to warranty expense 1,806 4,249 Deduction for warranty charges (3,314 ) (4,464 ) Change due to foreign currency translation 43 (76 ) Balance at end of period $ 3,174 $ 4,639 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | Intangible assets balances, subject to amortization, at September 30, 2017 and 2016 consisted of the following (in thousands): September 30, 2017 September 30, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Purchased technology $ 11,749 $ (11,033 ) $ 716 $ 11,749 $ (10,693 ) $ 1,056 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for each of the five subsequent fiscal years is expected to be (in thousands): Years Ended September 30, Total 2018 $ 204 2019 176 2020 176 2021 160 2022 — |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Long-term debt consisted of the following (in thousands): September 30, 2017 2016 Industrial development revenue bonds $ 2,000 $ 2,400 Less: current portion (400 ) (400 ) Total long-term debt $ 1,600 $ 2,000 |
Schedule of Maturities of Long-Term Debt | The annual maturities of long-term debt as of September 30, 2017 , were as follows (in thousands): Year Ending September 30, Long‑Term Debt Maturities 2018 $ 400 2019 400 2020 400 2021 400 2022 400 Total long-term debt maturities $ 2,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Annual Rental Commitments Under Leases | At September 30, 2017 , the future minimum annual rental commitments and expected receipts under non-cancelable operating leases having terms in excess of one year were as follows (in thousands): Years Ended September 30, Operating Leases Payments Operating Sublease Income 2018 $ 3,420 $ (1,530 ) 2019 2,973 (1,292 ) 2020 1,937 (39 ) 2021 1,767 — 2022 1,743 — Thereafter 1,172 — Total lease commitments $ 13,012 $ (2,861 ) |
Schedule of Lease Expense and Sublease Income | Lease expense and sublease income from third parties was as follows (in thousands): Year Ended September 30, 2017 2016 2015 Rental expense $ 3,734 $ 4,469 $ 4,907 Sublease income from third parties (1,389 ) (986 ) (947 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision (Benefit) | The components of the income tax provision (benefit) were as follows (in thousands): Year Ended September 30, 2017 2016 2015 Current: Federal $ (7,782 ) $ (1,395 ) $ 2,638 State (101 ) 449 699 Foreign 350 899 (306 ) (7,533 ) (47 ) 3,031 Deferred: Federal 392 1,923 3,296 State (515 ) 47 420 Foreign 223 360 6,805 100 2,330 10,521 Total income tax provision (benefit) $ (7,433 ) $ 2,283 $ 13,552 |
Schedule of Income (Loss) Before Income Taxes | Income (loss) before income taxes was as follows (in thousands): Year Ended September 30, 2017 2016 2015 U.S. $ (19,932 ) $ 5,087 $ 33,549 Other than U.S. 3,013 12,706 (10,558 ) Income (loss) before income taxes $ (16,919 ) $ 17,793 $ 22,991 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. income tax rate and the effective income tax rate, as computed on earnings before income tax provision in each of the three years presented in the Consolidated Statements of Operations, was as follows: Year Ended September 30, 2017 2016 2015 Statutory rate 35 % 35 % 35 % State income taxes, net of federal benefit 2 2 3 Research and development credit 9 (8 ) (21 ) Foreign rate differential 2 (8 ) 4 Domestic production activities deduction — — (3 ) Foreign valuation allowance 2 (11 ) 43 NOL carryback impact on deductions (4 ) — — Other (2 ) 3 (2 ) Effective rate 44 % 13 % 59 % |
Schedule of Deferred Tax Assets and Liabilities | The net deferred income tax asset was comprised of the following (in thousands): September 30, 2017 2016 Current deferred income taxes: Gross assets $ 3,978 $ 4,384 Gross liabilities and valuation allowance (439 ) (378 ) Net current deferred income tax asset 3,539 4,006 Noncurrent deferred income taxes: Gross assets 18,559 16,170 Gross liabilities and valuation allowance (18,330 ) (16,308 ) Net noncurrent deferred income tax asset (liability) 229 (138 ) Net deferred income tax asset $ 3,768 $ 3,868 The tax effect of temporary differences between U.S. GAAP accounting and federal income tax accounting creating deferred income tax assets and liabilities was as follows (in thousands): September 30, 2017 2016 Deferred Tax Assets: Net operating income/loss $ 11,823 $ 10,453 Uniform capitalization and inventory 1,432 1,596 Deferred compensation 2,009 1,853 Stock-based compensation 1,094 760 Reserve for accrued employee benefits 1,208 1,679 Warranty accrual 892 1,388 Goodwill 64 345 Postretirement benefits liability 264 503 Allowance for doubtful accounts 14 220 Accrued legal 435 294 Credit carryforwards 3,258 1,292 Other 44 171 Deferred tax assets 22,537 20,554 Deferred Tax Liabilities: Depreciation and amortization (10,002 ) (8,247 ) Deferred tax liabilities (10,002 ) (8,247 ) Less: valuation allowance (8,767 ) (8,439 ) Net deferred tax asset $ 3,768 $ 3,868 |
Schedule of Valuation Allowance | A rollforward of the valuation allowance for the past three years is summarized below: Balance at September 30, 2014 $ 903 Charged to cost and expenses 10,048 Charged to other accounts (895 ) Balance at September 30, 2015 $ 10,056 Charged to cost and expenses (1,934 ) Charged to other accounts 317 Balance at September 30, 2016 $ 8,439 Charged to cost and expenses (260 ) Charged to other accounts 588 Balance at September 30, 2017 $ 8,767 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the unrecognized tax benefits follows (in thousands): Year Ended September 30, 2017 2016 2015 Balance at beginning of period $ 1,046 $ 784 $ 4,026 Increases related to tax positions taken during the current period 179 293 954 Increases related to tax positions taken during a prior period 338 — 2 Decreases related to expiration of statute of limitations — (31 ) (49 ) Decreases related to settlement with taxing authorities (344 ) — (4,149 ) Balance at end of period $ 1,219 $ 1,046 $ 784 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Units Activity | Total RSU activity (number of shares) for the past fiscal year is summarized below: Number of Restricted Stock Units Weighted Average Fair Value Per Share Outstanding at September 30, 2016 159,988 $ 43.12 Granted 62,100 39.57 Vested (29,051 ) 39.08 Forfeited/cancelled (15,300 ) 26.39 Outstanding at September 30, 2017 177,737 $ 37.00 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2017 (in thousands): Fair Value Measurements at September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at September 30, 2017 Assets: Cash and cash equivalents $ 68,359 $ — $ — $ 68,359 Short-term investments 26,829 — — 26,829 Restricted cash 24,851 — — 24,851 Deferred compensation — 6,442 — 6,442 Liabilities: Deferred compensation — 4,991 — 4,991 The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2016 (in thousands): Fair Value Measurements at September 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at September 30, 2016 Assets: Cash and cash equivalents $ 97,720 $ — $ — $ 97,720 Deferred compensation — 5,773 — 5,773 Liabilities: Deferred compensation — 4,449 — 4,449 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenues from External Customers by Geographical Areas | Revenues by country represent sales to unaffiliated customers as determined by the ultimate destination of our products and services, summarized for the last three fiscal years by region in the table below (in thousands): Year Ended September 30, 2017 2016 2015 United States $ 279,352 $ 405,298 $ 474,038 Canada 45,540 77,252 101,191 Middle East and Africa 26,639 40,294 40,557 Europe 21,194 26,200 23,567 Mexico, Central and South America 19,309 8,304 10,479 Far East 3,877 7,895 12,026 Total revenues $ 395,911 $ 565,243 $ 661,858 |
Schedule of Long-Lived Assets by Geographical Areas | September 30, 2017 2016 Long-lived assets: United States $ 82,589 $ 88,304 Canada 52,122 52,292 United Kingdom 4,709 4,381 Total $ 139,420 $ 144,977 |
Quarterly Information (Tables)
Quarterly Information (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The table below sets forth the unaudited consolidated operating results by fiscal quarter for the years ended September 30, 2017 and 2016 (in thousands, except per share data): 2017 Quarters First Second Third Fourth 2017 Revenues $ 110,341 $ 104,680 $ 85,927 $ 94,963 $ 395,911 Gross profit 14,999 15,822 9,054 10,894 50,769 Net income (loss) (300 ) (829 ) (3,215 ) (5,142 ) (9,486 ) Earnings (loss) per share: Basic $ (0.03 ) $ (0.07 ) $ (0.28 ) $ (0.45 ) $ (0.83 ) Diluted $ (0.03 ) $ (0.07 ) $ (0.28 ) $ (0.45 ) $ (0.83 ) 2016 Quarters First Second Third Fourth 2016 Revenues $ 149,977 $ 152,266 $ 133,207 $ 129,793 $ 565,243 Gross profit 23,150 30,094 27,285 25,676 106,205 Net income (loss) (459 ) 5,567 4,894 5,508 15,510 Earnings (loss) per share: Basic $ (0.04 ) $ 0.49 $ 0.43 $ 0.48 $ 1.36 Diluted $ (0.04 ) $ 0.49 $ 0.43 $ 0.48 $ 1.36 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid, net of interest income | $ (384) | $ 4 | $ 70 |
Income taxes paid, net of refunds | (764) | (352) | 2,298 |
Non-cash capital expenditures | $ 634 | $ 221 | $ 147 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue from External Customer [Line Items] | |||
Retention amounts included in accounts receivable | $ 2,100 | $ 2,700 | |
Warranty for parts and services date of shipment | 18 months | ||
Warranty parts and services date of energization | 12 months | ||
Research and development expenses | $ 6,906 | $ 6,731 | $ 6,980 |
Minimum | |||
Revenue from External Customer [Line Items] | |||
Long-term contract beginning | 1 month |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net Income (Loss) Attributable to Parent | $ (5,142) | $ (3,215) | $ (829) | $ (300) | $ 5,508 | $ 4,894 | $ 5,567 | $ (459) | $ (9,486) | $ 15,510 | $ 9,439 |
Denominator: | |||||||||||
Weighted average basic shares (in shares) | 11,453 | 11,400 | 11,869 | ||||||||
Dilutive effect of restricted stock units (in shares) | 0 | 31 | 39 | ||||||||
Weighted average diluted shares with assumed conversions | 11,453 | 11,431 | 11,908 | ||||||||
Net earnings (loss) per share: | |||||||||||
Basic earnings (loss) per share (in dollars per share) | $ (0.45) | $ (0.28) | $ (0.07) | $ (0.03) | $ 0.48 | $ 0.43 | $ 0.49 | $ (0.04) | $ (0.83) | $ 1.36 | $ 0.80 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.45) | $ (0.28) | $ (0.07) | $ (0.03) | $ 0.48 | $ 0.43 | $ 0.49 | $ (0.04) | $ (0.83) | $ 1.36 | $ 0.79 |
Detail of Selected Balance Sh40
Detail of Selected Balance Sheet Accounts - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $ 811 | $ 746 | |
Bad debt expense (recovery) | (160) | 187 | $ (29) |
Uncollectible accounts written off, net of recoveries | (472) | (120) | |
Change due to foreign currency translation | 0 | (2) | |
Balance at end of period | $ 179 | $ 811 | $ 746 |
Detail of Selected Balance Sh41
Detail of Selected Balance Sheet Accounts - Components of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials, parts and subassemblies | $ 22,100 | $ 29,639 |
Work-in-progress | 600 | 996 |
Provision for excess and obsolete inventory | (4,252) | (4,114) |
Total inventories | $ 18,448 | $ 26,521 |
Detail of Selected Balance Sh42
Detail of Selected Balance Sheet Accounts - Cost and Estimated Earnings on Uncompleted Contracts (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Costs incurred on uncompleted contracts | $ 987,164 | $ 1,088,921 |
Estimated earnings | 316,970 | 350,125 |
Total | 1,304,134 | 1,439,046 |
Less: Billings to date | (1,278,746) | (1,416,914) |
Net underbilled position | 25,388 | 22,132 |
Included in the accompanying balance sheets under the following captions: | ||
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled | 51,554 | 66,106 |
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled | (26,166) | (43,974) |
Net underbilled position | $ 25,388 | $ 22,132 |
Detail of Selected Balance Sh43
Detail of Selected Balance Sheet Accounts - Schedule of Property, Plant And Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 256,069 | $ 249,702 |
Less: Accumulated depreciation | (116,649) | (104,725) |
Total property, plant and equipment, net | 139,420 | 144,977 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 22,441 | 22,107 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 121,960 | 119,512 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Asset lives | 3 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Asset lives | 39 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 106,113 | 103,268 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Asset lives | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Asset lives | 15 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 3,806 | 3,806 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Asset lives | 3 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Asset lives | 10 years | |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 1,749 | $ 1,009 |
Detail of Selected Balance Sh44
Detail of Selected Balance Sheet Accounts - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | $ 256,069,000 | $ 249,702,000 | |
Depreciation | 12,400,000 | 12,979,000 | $ 13,120,000 |
Assets under capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment gross | $ 0 | $ 0 |
Detail of Selected Balance Sh45
Detail of Selected Balance Sheet Accounts - Activity in Warranty Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 4,639 | $ 4,930 |
Increase to warranty expense | 1,806 | 4,249 |
Deduction for warranty charges | (3,314) | (4,464) |
Change due to foreign currency translation | 43 | (76) |
Balance at end of period | $ 3,174 | $ 4,639 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | Dec. 30, 2013 | Aug. 07, 2006 | Apr. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 1,000,000 | ||||||
Impairment of goodwill | 0 | $ 0 | $ 0 | ||||
Amortization of intangible assets | 355,000 | 352,000 | 435,000 | ||||
Cash received from amended supply agreement | $ 10,000,000 | $ 2,300,000 | 2,333,000 | 2,333,000 | 2,333,000 | ||
Additional amount paid on execution of agreement | $ 7,000,000 | ||||||
Acquired finite-lived intangible assets, period | 3 years | ||||||
Deferred credit | $ 500,000 | $ 8,100,000 | |||||
Deferred credit amortization period | 4 years | ||||||
Gains in other income | $ 2,029,000 | 2,029,000 | 2,402,000 | ||||
Other Income | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gains in other income | 2,000,000 | 2,000,000 | $ 2,000,000 | ||||
Purchased Technology | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Purchased technology | $ 716,000 | $ 1,056,000 | |||||
Supply Agreement | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Useful life of intangible asset | 15 years |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Details) - Purchased Technology - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 11,749 | $ 11,749 |
Accumulated Amortization | (11,033) | (10,693) |
Net Carrying Value | $ 716 | $ 1,056 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Sep. 30, 2017USD ($) |
September 30 | |
2,018 | $ 204 |
2,019 | 176 |
2,020 | 176 |
2,021 | 160 |
2,022 | $ 0 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Disclosure [Abstract] | ||
Industrial development revenue bonds | $ 2,000 | $ 2,400 |
Less: current portion | (400) | (400) |
Total long-term debt | $ 1,600 | $ 2,000 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Year Ending September 30, | ||
2,018 | $ 400 | |
2,019 | 400 | |
2,020 | 400 | |
2,021 | 400 | |
2,022 | 400 | |
Industrial development revenue bonds | $ 2,000 | $ 2,400 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Sep. 30, 2017USD ($) | Sep. 30, 2016 | Oct. 31, 2001USD ($) | |
U.S. Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Revolving credit facility | $ 75,000,000 | |||
Revolving credit facility borrowings, outstanding amount | 0 | |||
Amount of credit facility remaining borrowing capacity | $ 50,900,000 | |||
Percentage of voting capital stock pledged as collateral | 100.00% | |||
Non-domestic subsidiaries of voting capital stock | 65.00% | |||
U.S. Revolver | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
U.S. Revolver | Federal Funds Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
U.S. Revolver | Eurocurrency Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Industrial Development Revenue Bonds | ||||
Line of Credit Facility [Line Items] | ||||
Borrowings | $ 8,000,000 | |||
Reimbursement agreement requires annual redemptions | $ 400,000 | |||
Interest rate | 1.19% | |||
The Third Amendment | U.S. Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Fee percentage | 0.875% | 1.00% | ||
Commitment fee percentage | 0.20% | 0.1875% | ||
Cash collateral percent of outstanding debt (at least) | 102.00% | 102.00% | ||
Consolidated current ratio (no less than) | 1.10 | |||
Cash collateral pledged balance | $ 24,900,000 | |||
Financial Standby Letter of Credit | U.S. Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Guarantee liability | $ 24,100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Annual Rental Commitments Under Leases (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Operating Leases Payments | |
2,018 | $ 3,420 |
2,019 | 2,973 |
2,020 | 1,937 |
2,021 | 1,767 |
2,022 | 1,743 |
Thereafter | 1,172 |
Total lease commitments | 13,012 |
Operating Sublease Income | |
2,018 | (1,530) |
2,019 | (1,292) |
2,020 | (39) |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total lease commitments | $ (2,861) |
Commitments and Contingencies53
Commitments and Contingencies - Schedule of Rental Expense and Sublease Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | $ 3,734 | $ 4,469 | $ 4,907 |
Sublease income from third parties | $ (1,389) | $ (986) | $ (947) |
Commitments and Contingencies54
Commitments and Contingencies - Narrative (Details) | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Guarantor Obligations [Line Items] | |
Additional bonding capacity | $ 531,200,000 |
Liquidated damages | 2,300,000 |
Probable liquidated damages | 1,200,000 |
Loss contingency, estimate of actual or projected loss | 1,200,000 |
Facility Agreement | Powell (UK) Limited | |
Guarantor Obligations [Line Items] | |
Guarantee liability | 4,400,000 |
Revolving credit facility | 6,700,000 |
Amount of credit facility remaining borrowing capacity | 2,300,000 |
Surety Bond | |
Guarantor Obligations [Line Items] | |
Guarantee liability | 218,800,000 |
U.S. Revolver | |
Guarantor Obligations [Line Items] | |
Revolving credit facility | 75,000,000 |
Amount of credit facility remaining borrowing capacity | 50,900,000 |
U.S. Revolver | Financial Standby Letter of Credit | |
Guarantor Obligations [Line Items] | |
Guarantee liability | $ 24,100,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current: | |||
Federal | $ (7,782) | $ (1,395) | $ 2,638 |
State | (101) | 449 | 699 |
Foreign | 350 | 899 | (306) |
Current income tax provision | (7,533) | (47) | 3,031 |
Deferred: | |||
Federal | 392 | 1,923 | 3,296 |
State | (515) | 47 | 420 |
Foreign | 223 | 360 | 6,805 |
Deferred income tax provision | 100 | 2,330 | 10,521 |
Total income tax provision (benefit) | $ (7,433) | $ 2,283 | $ 13,552 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (19,932) | $ 5,087 | $ 33,549 |
Other than U.S. | 3,013 | 12,706 | (10,558) |
Income (loss) before income taxes | $ (16,919) | $ 17,793 | $ 22,991 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 2.00% | 2.00% | 3.00% |
Research and development credit | 9.00% | (8.00%) | (21.00%) |
Foreign rate differential | 2.00% | (8.00%) | 4.00% |
Domestic production activities deduction | (0.00%) | (0.00%) | (3.00%) |
Foreign valuation allowance | 2.00% | (11.00%) | 43.00% |
NOL carryback impact on deductions | (4.00%) | (0.00%) | (0.00%) |
Other | (2.00%) | 3.00% | (2.00%) |
Effective rate | 44.00% | 13.00% | 59.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Contingency [Line Items] | ||||||
Effective tax rate | 44.00% | 13.00% | 59.00% | |||
Release of a FIN 48 reserve related to the federal research and development tax credit | $ 1,219 | $ 1,046 | $ 784 | $ 4,026 | ||
Undistributed earnings of foreign subsidiaries | 22,200 | |||||
Operating loss carryforwards, valuation allowance | 9,300 | |||||
Valuation allowance related to deferred tax assets | $ 8,767 | 8,439 | ||||
Tax benefit | $ 4,100 | |||||
Decrease in unrecognized tax benefits due to expiration of certain federal statutes of limitations | 11.00% | |||||
R&D Tax Credit | ||||||
Income Tax Contingency [Line Items] | ||||||
Retroactive tax benefit | $ 800 | $ 900 | $ 600 | |||
Release of a FIN 48 reserve related to the federal research and development tax credit | $ 4,100 |
Income Taxes - Schedule of Co59
Income Taxes - Schedule of Components of Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Current deferred income taxes: | ||
Gross assets | $ 3,978 | $ 4,384 |
Gross liabilities and valuation allowance | (439) | (378) |
Net current deferred income tax asset | 3,539 | 4,006 |
Noncurrent deferred income taxes: | ||
Gross assets | 18,559 | 16,170 |
Gross liabilities and valuation allowance | (18,330) | (16,308) |
Net noncurrent deferred income tax asset (liability) | 229 | (138) |
Net deferred income tax asset | $ 3,768 | $ 3,868 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred Tax Assets: | ||
Net operating income/loss | $ 11,823 | $ 10,453 |
Uniform capitalization and inventory | 1,432 | 1,596 |
Deferred compensation | 2,009 | 1,853 |
Stock-based compensation | 1,094 | 760 |
Reserve for accrued employee benefits | 1,208 | 1,679 |
Warranty accrual | 892 | 1,388 |
Goodwill | 64 | 345 |
Postretirement benefits liability | 264 | 503 |
Allowance for doubtful accounts | 14 | 220 |
Accrued legal | 435 | 294 |
Credit carryforwards | 3,258 | 1,292 |
Other | 44 | 171 |
Deferred tax assets | 22,537 | 20,554 |
Deferred Tax Liabilities: | ||
Depreciation and amortization | (10,002) | (8,247) |
Deferred tax liabilities | (10,002) | (8,247) |
Less: valuation allowance | (8,767) | (8,439) |
Net deferred income tax asset | $ 3,768 | $ 3,868 |
Income Taxes - Schedule of Valu
Income Taxes - Schedule of Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 8,439 | $ 10,056 | $ 903 |
Charged to cost and expenses | (260) | (1,934) | 10,048 |
Charged to other accounts | 588 | 317 | (895) |
Ending balance | $ 8,767 | $ 8,439 | $ 10,056 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 1,046 | $ 784 | $ 4,026 |
Increases related to tax positions taken during the current period | 179 | 293 | 954 |
Increases related to tax positions taken during a prior period | 338 | 0 | 2 |
Decreases related to expiration of statute of limitations | 0 | (31) | (49) |
Decreases related to settlement with taxing authorities | (344) | 0 | (4,149) |
Balance at end of period | $ 1,219 | $ 1,046 | $ 784 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plan recognized expenses | $ 2.8 | $ 3.9 | $ 5.9 |
Deferred compensation, retirement age | 65 years | ||
Deferred compensation requisite service period | 10 years | ||
Deferred compensation recorded liability | $ 0.3 | ||
Cash surrender value of life insurance | $ 4.7 | ||
Minimum | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Age older but less than | 55 years | ||
Maximum | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Age older but less than | 65 years | ||
Deferred compensation plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Percentage of employee based salary permitted for deferral under the plan | 50.00% | ||
Percentage of employee annual bonus permitted for deferral under the plan | 100.00% | ||
Deferred compensation expense adjustment | $ (0.1) | ||
Deferred compensation plan assets | 6.4 | ||
Deferred compensation liabilities | 5 | ||
Retiree medical plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Unfunded liability | 1.1 | 1.4 | |
Retiree medical plan | Maximum | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Net periodic postretirement benefit cost (less than) | 0.1 | $ 0.1 | $ 0.1 |
Company owned life insurance policies | Deferred compensation plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred compensation plan assets | $ 5.6 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2017 | Apr. 30, 2016 | Feb. 29, 2016 | Feb. 28, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
2014 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, capital shares reserved for future issuance | 750,000 | ||||||
Number of shares available for grant | 664,911 | ||||||
2014 Non-Employee Director Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, capital shares reserved for future issuance | 150,000 | 84,600 | |||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unvested restricted stock outstanding (in shares) | 177,737 | 159,988 | |||||
Compensation expense | $ 2 | $ 4.2 | $ 1.9 | ||||
Amounts not yet recognized related to non-vested stock totaled | $ 1.6 | 2.1 | |||||
Weighted average remaining contractual life | 1 year 8 months 26 days | ||||||
Restricted Stock Units (RSUs) | Time Based Restricted Stock Unit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Actual amount of RSUs earned based on cumulative earnings | 60.00% | ||||||
Restricted Stock Units (RSUs) | 2014 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Restricted Stock Units (RSUs) | 2014 Equity Incentive Plan | Time Based Restricted Stock Unit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Restricted Stock Units (RSUs) | 2014 Equity Incentive Plan | Performance Based Restricted Stock Unit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Target RSUs granted range | 40.00% | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 0.7 | $ 0.7 | $ 1.3 | ||||
Weighted average remaining contractual life | 6 months | ||||||
Restricted Stock | Vesting of First Anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Restricted Stock | Vesting of Second Anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Restricted Stock | 2014 Non-Employee Director Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unvested restricted stock outstanding (in shares) | 16,000 | 26,800 | |||||
Maximum number of shares granted to any individual | 12,000 | ||||||
Number of shares issued to any individual | 4,000 | ||||||
Restricted stock issuable to eligible Board of Directors members annually (in shares) | 2,000 | ||||||
Shares issued under the plan | 17,000 | 1,000 | 16,000 | ||||
Shares issued, price per share (in dollars per share) | $ 34.24 | $ 29.38 | $ 25.63 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Restricted Stock Units | |
Outstanding Beginning Balance (in shares) | shares | 159,988 |
Granted (in shares) | shares | 62,100 |
Vested (in shares) | shares | (29,051) |
Forfeited (in shares) | shares | (15,300) |
Outstanding Ending Balance (in shares) | shares | 177,737 |
Weighted Average Fair Value Per Share | |
Outstanding Beginning Balance (in dollars per share) | $ / shares | $ 43.12 |
Granted (in dollars per share) | $ / shares | 39.57 |
Vested (in dollars per share) | $ / shares | 39.08 |
Forfeited (in dollars per share) | $ / shares | 26.39 |
Outstanding Ending Balance (in dollars per share) | $ / shares | $ 37 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Assets: | ||
Cash and cash equivalents | $ 68,359 | $ 97,720 |
Short-term investments | 26,829 | |
Restricted cash | 24,851 | |
Deferred compensation | 6,442 | 5,773 |
Liabilities: | ||
Deferred compensation | 4,991 | 4,449 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 68,359 | 97,720 |
Short-term investments | 26,829 | |
Restricted cash | 24,851 | |
Deferred compensation | 0 | 0 |
Liabilities: | ||
Deferred compensation | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | |
Restricted cash | 0 | |
Deferred compensation | 6,442 | 5,773 |
Liabilities: | ||
Deferred compensation | 4,991 | 4,449 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | |
Restricted cash | 0 | |
Deferred compensation | 0 | 0 |
Liabilities: | ||
Deferred compensation | $ 0 | $ 0 |
Geographic Information - Schedu
Geographic Information - Schedule of Revenues from External Customers by Geographical Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 395,911 | $ 565,243 | $ 661,858 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 279,352 | 405,298 | 474,038 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 45,540 | 77,252 | 101,191 |
Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 26,639 | 40,294 | 40,557 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 21,194 | 26,200 | 23,567 |
Mexico, Central and South America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 19,309 | 8,304 | 10,479 |
Far East | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 3,877 | $ 7,895 | $ 12,026 |
Geographic Information - Sche68
Geographic Information - Schedule of Long-Lived Assets by Geographical Areas (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 139,420 | $ 144,977 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 82,589 | 88,304 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 52,122 | 52,292 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 4,709 | $ 4,381 |
Restructuring and Separation 69
Restructuring and Separation Expenses (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($)facility | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and separation costs incurred | $ 1,322 | $ 8,441 | $ 3,397 | |
Restructuring and separation costs paid | 1,000 | 6,800 | ||
Restructuring and separation costs payable over the next fiscal year | $ 300 | |||
Separation costs | $ 3,800 | 7,900 | ||
Restructuring costs related to exited of Canadian facility lease and write-off of associated leasehold improvements | 500 | $ 800 | ||
Number of previously occupied leased facilities | facility | 1 | |||
Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and separation costs incurred | $ 2,600 | |||
Restructuring and separation costs payable over the next fiscal year | $ 1,100 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) | 12 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 17, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program expiration date | Dec. 31, 2015 | ||||
Stock purchased under repurchase program (in shares) | 806,018 | ||||
Stock purchased under repurchase program, value | $ 3,740,000 | $ 25,000,000 | $ 21,259,000 | ||
Stock purchased under repurchased program, average purchase price per share (in dollars per share) | $ 31.02 | ||||
Maximum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 25,000,000 |
Quarterly Information (Details)
Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 94,963 | $ 85,927 | $ 104,680 | $ 110,341 | $ 129,793 | $ 133,207 | $ 152,266 | $ 149,977 | $ 395,911 | $ 565,243 | $ 661,858 |
Gross profit | 10,894 | 9,054 | 15,822 | 14,999 | 25,676 | 27,285 | 30,094 | 23,150 | 50,769 | 106,205 | 108,261 |
Net income (loss) | $ (5,142) | $ (3,215) | $ (829) | $ (300) | $ 5,508 | $ 4,894 | $ 5,567 | $ (459) | $ (9,486) | $ 15,510 | $ 9,439 |
Earnings (loss) per share: | |||||||||||
Basic (in dollars per share) | $ (0.45) | $ (0.28) | $ (0.07) | $ (0.03) | $ 0.48 | $ 0.43 | $ 0.49 | $ (0.04) | $ (0.83) | $ 1.36 | $ 0.80 |
Diluted (in dollars per share) | $ (0.45) | $ (0.28) | $ (0.07) | $ (0.03) | $ 0.48 | $ 0.43 | $ 0.49 | $ (0.04) | $ (0.83) | $ 1.36 | $ 0.79 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Nov. 07, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Subsequent Event [Line Items] | ||||
Cash dividends declared (in dollars per share) | $ 1.04 | $ 1.04 | $ 1.04 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared (in dollars per share) | $ 0.26 |