Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | HAYNES INTERNATIONAL INC | |
Entity Central Index Key | 0000858655 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,556,921 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 52,406 | $ 31,038 |
Accounts receivable, less allowance for doubtful accounts of $441 and $697 at September 30, 2019 and March 31, 2020, respectively | 65,970 | 76,979 |
Inventories | 280,337 | 258,802 |
Income taxes receivable | 377 | 1,757 |
Other current assets | 4,440 | 3,297 |
Total current assets | 403,530 | 371,873 |
Property, plant and equipment, net | 164,720 | 169,966 |
Deferred income taxes | 34,666 | 34,132 |
Other assets | 9,895 | 7,756 |
Goodwill | 4,789 | 4,789 |
Other intangible assets, net | 5,184 | 5,284 |
Total assets | 622,784 | 593,800 |
Current liabilities: | ||
Accounts payable | 28,310 | 34,497 |
Accrued expenses | 17,810 | 18,833 |
Income taxes payable | 70 | |
Accrued pension and postretirement benefits | 4,250 | 4,250 |
Revolving credit facilities | 30,000 | |
Deferred revenue—current portion | 2,500 | 2,500 |
Total current liabilities | 82,940 | 60,080 |
Long-term obligations (less current portion) (Note 15) | 8,598 | 8,609 |
Deferred revenue (less current portion) | 14,079 | 15,329 |
Deferred income taxes | 2,016 | 2,016 |
Operating lease liabilities | 2,306 | |
Accrued pension benefits (less current portion) | 98,523 | 101,812 |
Accrued postretirement benefits (less current portion) | 110,710 | 109,679 |
Total liabilities | 319,172 | 297,525 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value (40,000,000 shares authorized, 12,566,969 and 12,615,830 shares issued and 12,513,500 and 12,556,921 shares outstanding at September 30, 2019 and March 31, 2020, respectively) | 13 | 13 |
Preferred stock, $0.001 par value (20,000,000 shares authorized, 0 shares issued and outstanding) | ||
Additional paid-in capital | 255,896 | 253,843 |
Accumulated earnings | 140,297 | 125,296 |
Treasury stock, 53,469 shares at September 30, 2019 and 58,909 shares at March 31, 2020 | (2,437) | (2,239) |
Accumulated other comprehensive loss | (90,157) | (80,638) |
Total stockholders’ equity | 303,612 | 296,275 |
Total liabilities and stockholders’ equity | $ 622,784 | $ 593,800 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 697 | $ 441 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 12,615,830 | 12,566,969 |
Common stock, shares outstanding (in shares) | 12,556,921 | 12,513,500 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 58,909 | 53,469 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net revenues | $ 111,563 | $ 127,474 | $ 220,016 | $ 234,543 |
Cost of sales | 92,267 | 112,791 | 181,977 | 208,525 |
Gross profit | 19,296 | 14,683 | 38,039 | 26,018 |
Selling, general and administrative expense | 10,785 | 10,663 | 22,292 | 21,791 |
Research and technical expense | 1,028 | 859 | 1,910 | 1,693 |
Operating income | 7,483 | 3,161 | 13,837 | 2,534 |
Nonoperating retirement benefit expense | 1,700 | 856 | 3,400 | 1,712 |
Interest income | (10) | (18) | (24) | (38) |
Interest expense | 296 | 284 | 547 | 525 |
Income before income taxes | 5,497 | 2,039 | 9,914 | 335 |
Provision for income taxes | 1,429 | 530 | 2,578 | 429 |
Net income (loss) | $ 4,068 | $ 1,509 | $ 7,336 | $ (94) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.32 | $ 0.12 | $ 0.58 | $ (0.01) |
Diluted (in dollars per share) | $ 0.32 | $ 0.12 | $ 0.58 | $ (0.01) |
Weighted Average Common Shares Outstanding | ||||
Weighted average common shares outstanding - Basic | 12,473,881 | 12,448,792 | 12,466,867 | 12,439,689 |
Weighted average common shares outstanding - Diluted | 12,504,063 | 12,600,292 | 12,496,949 | 12,439,689 |
Dividends declared per common share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.44 | $ 0.44 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ 4,068 | $ 1,509 | $ 7,336 | $ (94) |
Other comprehensive income (loss), net of tax: | ||||
Pension and postretirement | 1,720 | 579 | 3,439 | 1,159 |
Foreign currency translation adjustment | (3,918) | 1,031 | 325 | (140) |
Other comprehensive income (loss) | (2,198) | 1,610 | 3,764 | 1,019 |
Comprehensive income | $ 1,870 | $ 3,119 | $ 11,100 | $ 925 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Sep. 30, 2018 | $ 13,000 | $ 251,053,000 | $ 126,588,000 | $ (1,869,000) | $ (42,565,000) | $ 333,220,000 |
Balance (in shares) at Sep. 30, 2018 | 12,504,478 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (94,000) | (94,000) | ||||
Dividends paid and accrued ($0.22 and $0.22 per share for the three months ended March 31, 2020 and 2019 and $0.44 and $0.44 per share for the six months ended March 31, 2020 and 2019, respectively) | (5,517,000) | (5,517,000) | ||||
Other comprehensive income (loss) | 1,019,000 | 1,019,000 | ||||
Exercise of stock options | 215,000 | 215,000 | ||||
Exercise of stock options (in shares) | 12,084 | |||||
Issue restricted stock (less forfeitures) (in shares) | 8,144 | |||||
Purchase of treasury stock | (308,000) | (308,000) | ||||
Purchase of treasury stock (in shares) | (9,226) | |||||
Stock compensation | 1,157,000 | 1,157,000 | ||||
Balance at Mar. 31, 2019 | $ 13,000 | 252,425,000 | 120,977,000 | (2,177,000) | (41,546,000) | 329,692,000 |
Balance (in shares) at Mar. 31, 2019 | 12,515,480 | |||||
Balance at Dec. 31, 2018 | $ 13,000 | 251,718,000 | 122,226,000 | (2,177,000) | (43,156,000) | 328,624,000 |
Balance (in shares) at Dec. 31, 2018 | 12,517,492 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 1,509,000 | 1,509,000 | ||||
Dividends paid and accrued ($0.22 and $0.22 per share for the three months ended March 31, 2020 and 2019 and $0.44 and $0.44 per share for the six months ended March 31, 2020 and 2019, respectively) | (2,758,000) | (2,758,000) | ||||
Other comprehensive income (loss) | 1,610,000 | 1,610,000 | ||||
Issue restricted stock (less forfeitures) (in shares) | (2,012) | |||||
Stock compensation | 707,000 | 707,000 | ||||
Balance at Mar. 31, 2019 | $ 13,000 | 252,425,000 | 120,977,000 | (2,177,000) | (41,546,000) | 329,692,000 |
Balance (in shares) at Mar. 31, 2019 | 12,515,480 | |||||
Balance at Sep. 30, 2019 | $ 13,000 | 253,843,000 | 125,296,000 | (2,239,000) | (80,638,000) | 296,275,000 |
Balance (in shares) at Sep. 30, 2019 | 12,513,500 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 7,336,000 | 7,336,000 | ||||
Dividends paid and accrued ($0.22 and $0.22 per share for the three months ended March 31, 2020 and 2019 and $0.44 and $0.44 per share for the six months ended March 31, 2020 and 2019, respectively) | (5,618,000) | (5,618,000) | ||||
Other comprehensive income (loss) | 3,764,000 | 3,764,000 | ||||
Exercise of stock options | 422,000 | 422,000 | ||||
Exercise of stock options (in shares) | 12,400 | |||||
Reclass due to adoption of ASU 2018-02 | 13,283,000 | (13,283,000) | ||||
Issue restricted stock (less forfeitures) (in shares) | 36,461 | |||||
Purchase of treasury stock | $ (5,440) | (198,000) | (198,000) | |||
Stock compensation | 1,631,000 | 1,631,000 | ||||
Balance at Mar. 31, 2020 | $ 13,000 | 255,896,000 | 140,297,000 | (2,437,000) | (90,157,000) | 303,612,000 |
Balance (in shares) at Mar. 31, 2020 | 12,556,921 | |||||
Balance at Dec. 31, 2019 | $ 13,000 | 254,999,000 | 139,010,000 | (2,437,000) | (87,959,000) | 303,626,000 |
Balance (in shares) at Dec. 31, 2019 | 12,556,255 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 4,068,000 | 4,068,000 | ||||
Dividends paid and accrued ($0.22 and $0.22 per share for the three months ended March 31, 2020 and 2019 and $0.44 and $0.44 per share for the six months ended March 31, 2020 and 2019, respectively) | (2,781,000) | (2,781,000) | ||||
Other comprehensive income (loss) | (2,198,000) | (2,198,000) | ||||
Issue restricted stock (less forfeitures) (in shares) | 666 | |||||
Stock compensation | 897,000 | 897,000 | ||||
Balance at Mar. 31, 2020 | $ 13,000 | $ 255,896,000 | $ 140,297,000 | $ (2,437,000) | $ (90,157,000) | $ 303,612,000 |
Balance (in shares) at Mar. 31, 2020 | 12,556,921 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||||
Dividend paid (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.44 | $ 0.44 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 7,336 | $ (94) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 9,639 | 9,296 |
Amortization | 100 | 155 |
Pension and post-retirement expense - U.S. and U.K. | 6,897 | 4,487 |
Change in long-term obligations | (24) | |
Stock compensation expense | 1,631 | 1,157 |
Deferred revenue | (1,250) | (1,250) |
Deferred income taxes | (1,782) | 238 |
Loss on disposition of property | 5 | |
Change in assets and liabilities: | ||
Accounts receivable | 11,122 | (7,765) |
Inventories | (21,192) | 969 |
Other assets | (961) | (846) |
Accounts payable and accrued expenses | (7,668) | 4,124 |
Income taxes | 1,447 | 4,788 |
Accrued pension and postretirement benefits | (4,488) | (3,207) |
Net cash provided by (used in) operating activities | 807 | 12,057 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (4,100) | (5,409) |
Net cash provided by (used in) investing activities | (4,100) | (5,409) |
Cash flows from financing activities: | ||
Revolving credit facility borrowings | 30,000 | 16,600 |
Revolving credit facility repayments | (16,600) | |
Dividends paid | (5,523) | (5,505) |
Proceeds from exercise of stock options | 422 | 215 |
Payment for purchase of treasury stock | (198) | (308) |
Payments on long-term obligation | (82) | (71) |
Net cash provided by (used in) financing activities | 24,619 | (5,669) |
Effect of exchange rates on cash | 42 | (1) |
Increase (decrease) in cash and cash equivalents: | 21,368 | 978 |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 31,038 | 9,802 |
End of period | 52,406 | 10,780 |
Supplemental disclosures of cash flow information: | ||
Interest (net of capitalized interest) | 518 | 496 |
Income taxes paid (refunded), net | 2,903 | (4,636) |
Capital expenditures incurred, but not yet paid | 708 | 809 |
Dividends declared but not yet paid | $ 95 | $ 12 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation | |
Basis of Presentation | Note 1. Basis of Presentation Interim Financial Statements The accompanying unaudited condensed interim consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), and such principles are applied on a basis consistent with information reflected in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2019 filed with the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC related to interim financial statements. In the opinion of management, the interim financial information includes all adjustments and accruals which are necessary for a fair presentation of results for the respective interim periods. The results of operations for the three and six months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full fiscal year ending September 30, 2020 or any interim period. Principles of Consolidation The consolidated financial statements include the accounts of Haynes International, Inc. and directly or indirectly wholly-owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances are eliminated. COVID-19 Pandemic In March 2020, the World Health Organization characterized the coronavirus (“COVID-19”) a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The rapid spread of the pandemic and the continuously evolving responses to combat it have had an increasingly negative impact on the global economy and our business. Due to the widespread impact of the COVID-19 pandemic, the Company implemented a temporary shut-down of most of the Company’s production operations beginning the week of March 23, 2020, which impacted the last week of the second quarter. The shut-down continued into the third quarter with operations resuming in mid-April in certain areas on a voluntary basis. In view of the rapidly changing business environment, unprecedented market volatility and heightened degree of uncertainty resulting form COVID-19, we cannot reasonably estimate the length or severity of the pandemic or its impact on the Company’s liquidity, results of operations, and financial condition, which could have a material adverse effect. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Mar. 31, 2020 | |
Recently Issued Accounting Standard | |
Recently Issued Accounting Standards | Note 2. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . This new guidance requires that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The new lease accounting requirements are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted the provisions of ASU 2016-02 in the first quarter of fiscal year 2020 using the modified retrospective transition method, which did not require the Company to adjust comparative periods. The Company’s right-of-use assets (“ROU”) and lease liabilities are recognized on the lease commencement date in an amount that represents the present value of future lease payments. ROU assets are included in Other assets, and the related lease obligation is included in Operating lease liabilities on the consolidated balance sheets. The adoption of the standard had no material impact on the Consolidated Financial Statements. The Company elected the package of practical expedients included in this guidance which allowed it to not reassess: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and, (iii) the initial direct costs for existing leases. The Company has elected the practical expedient to not separate lease components from non-lease components for all asset classes. The Company will recognize lease expense for operating leases in the consolidated statements of operations on a straight-line basis over the lease term. The Company also made a policy election to not recognize ROU asset and lease liabilities for short-term leases with an initial term of 12 months or less for all asset classes. Leases with the option to extend their term are reflected in the lease term when it is reasonably certain that the Company will exercise such options. The Company has expanded the disclosure of operating leases included in Note 16. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification from accumulated other comprehensive income (loss) to accumulated earnings for standard tax effects resulting from the Tax Cuts and Jobs Act. This update is effective for fiscal years beginning after December 15, 2018. The Company adopted the provisions of this standard in the first quarter of fiscal year 2020 which had an impact of increasing accumulated other comprehensive loss and increasing accumulated earnings by $13,283. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) . This new guidance removes and modifies disclosure requirements on fair value statements. This update is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact, if any, on its disclosures in the Notes to Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-05, Financial Instruments – Credit Losses (Topic 326) which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The new current expected credit loss (CECL) methodology does not have a minimum threshold for recognition of impairment losses, and entities will need to measure expected credit losses on assets that have a low risk of loss. This update is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact, if any, on the Company’s Consolidated Financial Statements. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 6 Months Ended |
Mar. 31, 2020 | |
Revenues from Contracts with Customers | |
Revenues from Contracts with Customers | Note 3. Revenues from Contracts with Customers Contract Balances As of September 30, 2019 and March 31, 2020, accounts receivable with customers were $77,420 and $66,667, respectively. Allowance for doubtful accounts as of September 30, 2019 and March 31, 2020 were $441 and $697, respectively, and are presented within accounts receivable, less allowance for doubtful accounts on the consolidated balance sheet. Contract liabilities are recognized when the Company has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the purchase order or contract. As of September 30, 2019 and March 31, 2020, no contract liabilities have been recorded except for $17,829 and $16,579, respectively, for the Titanium Metals Corporation agreement, as described in Note 8 to the Condensed Consolidated Financial Statements. Disaggregation of Revenue Revenue is disaggregated by end-use markets. The following table includes a breakdown of net revenues to the markets served by the Company for the three and six months ended March 31, 2019 and 2020. Three Months Ended Six Months Ended March 31, March 31, 2019 2020 2019 2020 Net revenues (dollars in thousands) Aerospace $ 68,858 $ 59,172 $ 123,465 $ 118,015 Chemical processing 21,761 15,832 40,681 32,544 Industrial gas turbine 13,685 16,701 27,768 30,464 Other markets 16,958 12,762 31,243 24,637 Total product revenue 121,262 104,467 223,157 205,660 Other revenue 6,212 7,096 11,386 14,356 Net revenues $ 127,474 $ 111,563 $ 234,543 $ 220,016 |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Inventories | Note 4. Inventories The following is a summary of the major classes of inventories: September 30, March 31, 2019 2020 Raw Materials $ 17,935 $ 21,747 Work-in-process 138,859 142,879 Finished Goods 100,590 114,165 Other 1,418 1,546 $ 258,802 $ 280,337 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2020 | |
Income Taxes | |
Income Taxes | Note 5. Income Taxes Income tax expense for the three and six months ended March 31, 2019 and 2020 differed from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes, differing tax rates on foreign earnings and discrete tax items that impacted income tax expense in these periods. The effective tax rate for the three months ended March 31, 2020 was 26.0% on $5,497 of income before income taxes compared to 26.0% on income before income taxes of $2,039 for the three months ended March 31, 2019. The effective tax rate for the six months ended March 31, 2020 was 26.0% on $9,914 of income before income taxes compared to 128.1% on income before income taxes of $335 for the six months ended March 31, 2019. Income tax expense in the first six months of fiscal 2019 was unfavorably impacted by the forfeiture of unexercised stock options, which resulted in approximately $300 of additional tax expense. On Friday March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act contains significant business tax provisions, including modifications to the rules limiting the deductibility of net operating losses (NOLs), expensing of qualified improvement property (OIP) and business interest in IRC Sections 172(a) and 163(j), respectively. The effects of the new legislation are recognized upon enactment, which (for U.S. federal legislation) is the date the President signs a bill into law. There was not significant impact to income tax expense for the three and six months ended March 31, 2020 relating to the CARES Act. |
Pension and Post-retirement Ben
Pension and Post-retirement Benefits | 6 Months Ended |
Mar. 31, 2020 | |
Pension and Post-retirement Benefits | |
Pension and Post-retirement Benefits | Note 6. Pension and Post-retirement Benefits Components of net periodic pension and post-retirement benefit cost for the three and six months ended March 31, 2019 and 2020 were as follows: Three Months Ended March 31, Six Months Ended March 31, Pension Benefits Other Benefits Pension Benefits Other Benefits 2019 2020 2019 2020 2019 2020 2019 2020 Service cost $ 1,310 $ 1,387 $ 79 $ 354 $ 2,620 $ 2,773 $ 158 $ 708 Interest cost 2,567 2,148 1,088 873 5,133 4,296 2,176 1,746 Expected return (3,575) (3,623) — — (7,147) (7,268) — — Amortizations 401 1,859 372 462 803 3,718 744 924 Net periodic benefit cost $ 703 $ 1,771 $ 1,539 $ 1,689 $ 1,409 $ 3,519 $ 3,078 $ 3,378 The Company contributed $3,000 to Company-sponsored domestic pension plans, $1,424 to its other post-retirement benefit plans and $370 to the U.K. pension plan for the six months ended March 31, 2020. The Company expects to make contributions of $3,000 to its U.S. pension plan, $2,730 to its other post-retirement benefit plan and $368 to the U.K. pension plan for the remainder of fiscal 2020. |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 6 Months Ended |
Mar. 31, 2020 | |
Legal, Environmental and Other Contingencies | |
Legal, Environmental and Other Contingencies | Note 7. Legal, Environmental and Other Contingencies Legal The Company is regularly involved in litigation, both as a plaintiff and as a defendant, relating to its business and operations, including environmental, commercial, employment and federal and/or state Equal Employment Opportunity Commission administrative actions. Future expenditures for environmental, employment, intellectual property and other legal matters cannot be determined with any degree of certainty; however, based on the facts presently known, management does not believe that such costs will have a material effect on the Company’s financial position, results of operations or cash flows. In January 2017, a customer based in the United Kingdom wrote to the Company making a claim in relation to certain product sold to that customer by the Company. This writing was followed up by claim correspondence from 2018 through early 2020. The Company has engaged its legal advisors in the United Kingdom to respond to the claim, and correspondence between the parties’ respective counsel remains ongoing. To date, the insurers have not accepted coverage responsibility for the claim but have agreed to fund expenses of legal counsel selected by the Company through the date of the determination regarding coverage. The Company intends to pursue such coverage as and if necessary while vigorously defending against the customer claim. Liability for the claim is disputed, and the amount of the claim, if any, remains unclear. Based on the facts presently known, management does not believe that the claim will have a material effect on the Company’s financial position, results of operations or cash flows. Environmental The Company has received permits from the Indiana Department of Environmental Management and the North Carolina Department of Environment and Natural Resources to close and provide post‑closure environmental monitoring and care for certain areas of its Kokomo, Indiana and Mountain Home, North Carolina facilities, respectively. The Company is required to, among other things, monitor groundwater and to continue post‑closure maintenance of the former disposal areas at each site. As a result, the Company is aware of elevated levels of certain contaminants in the groundwater, and additional testing and corrective action by the Company could be required. The Company is unable to estimate the costs of any further corrective action at these sites, or other sites, if required. In addition, the Company occasionally has regulatory violations that may be required to be reported at the state or federal level. Accordingly, the Company cannot assure that the costs of any future corrective action at these or any other current or former sites would not have a material effect on the Company’s financial condition, results of operations or liquidity. As of September 30, 2019 and March 31, 2020, the Company has accrued $606 for post-closure monitoring and maintenance activities, of which $508 is included in long-term obligations as it is not due within one year. Accruals for these costs are calculated by estimating the cost to monitor and maintain each post-closure site and multiplying that amount by the number of years remaining in the post-closure monitoring. Expected maturities of post-closure monitoring and maintenance activities (discounted) included in long-term obligations are as follows at March 31, 2020. Expected maturities of post-closure monitoring and maintenance activities (discounted) Year Ended September 30, 2021 $ 74 2022 64 2023 81 2024 60 2025 and thereafter 229 $ 508 On February 11, 2016, the Company voluntarily reported to the Louisiana Department of Environmental Quality a leak that it discovered in one of its chemical cleaning operations at its Arcadia, Louisiana facility. As a result of the discovery, the Company is working with that department to determine the extent of the issue and appropriate remediation. Management does not currently expect that any remediation costs related to this matter will have a material adverse effect on the Company’s results of operations. |
Deferred Revenue
Deferred Revenue | 6 Months Ended |
Mar. 31, 2020 | |
Deferred Revenue | |
Deferred Revenue | Note 8. Deferred Revenue On November 17, 2006, the Company entered into a twenty-year agreement to provide conversion services to Titanium Metals Corporation (TIMET) for up to ten million pounds of titanium metal annually. TIMET paid the Company a $50,000 up-front fee and will also pay the Company for its processing services during the term of the agreement (20 years) at prices established by the terms of the agreement. TIMET may exercise an option to have ten million additional pounds of titanium converted annually, provided that it offers to loan up to $12,000 to the Company for certain capital expenditures which may be required to expand capacity. In addition to the volume commitment, the Company has granted TIMET a first priority security interest in its four-high Steckel rolling mill, along with rights of access if the Company enters into bankruptcy or defaults on any financing arrangements. The Company has agreed not to manufacture titanium products (other than cold reduced titanium tubing). The Company has also agreed not to provide titanium hot-rolling conversion services to any entity other than TIMET for the term of the Conversion Services Agreement. The agreement contains certain default provisions which could result in contract termination and damages, including liquidated damages of $25,000 and the Company being required to return the unearned portion of the up-front fee. The Company considered each provision and the likelihood of the occurrence of a default that would result in liquidated damages. Based on the nature of the events that could trigger the liquidated damages clause, and the availability of the cure periods set forth in the agreement, the Company determined and continues to believe that none of these circumstances are reasonably likely to occur. Therefore, events resulting in liquidated damages have not been factored in as a reduction to the amount of revenue recognized over the life of the contract. The cash received of $50,000 is recognized in income on a straight-line basis over the 20-year term of the agreement. If an event of default occurred and was not cured within any applicable grace period, the Company would recognize the impact of the liquidated damages in the period of default and re-evaluate revenue recognition under the contract for future periods. The portion of the up-front fee not recognized in income is shown as deferred revenue on the consolidated balance sheet. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 6 Months Ended |
Mar. 31, 2020 | |
Goodwill and Other Intangible Assets, Net | |
Goodwill and Other Intangible Assets, Net | Note 9. Goodwill and Other Intangible Assets, Net The Company has goodwill, trademarks, customer relationships and other intangibles. As the customer relationships have a definite life, they are amortized over a life of sixteen years. The Company reviews customer relationships for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the assets is measured by a comparison of the carrying amount of the asset to the undiscounted cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Goodwill and trademarks (indefinite lived) are tested for impairment at least annually as of January 31 for goodwill and August 31 for trademarks (the annual impairment testing dates), or more frequently if impairment indicators exist. If the carrying value of a trademark exceeds its fair value (determined using an income approach, based upon a discounted cash flow of an assumed royalty rate), impairment of the trademark may exist resulting in a charge to earnings to the extent of the impairment. The impairment test for goodwill is performed by comparing the fair value of a reporting unit with its carrying amount and recognizing an impairment loss in the event that the carrying amount is greater than the fair value. Any goodwill impairment loss recognized would not exceed the total carrying amount of goodwill allocated to that reporting unit. No impairment has been recognized as of March 31, 2020. During the first six months of fiscal 2020, there were no changes in the carrying amount of goodwill. Amortization of customer relationships and other intangibles was $50 and $49 for the three-month periods ended March 31, 2019 and 2020, respectively and $155 and $100 for the six-month periods ended March 31, 2019 and 2020, respectively. The following represents a summary of intangible assets at September 30, 2019 and March 31, 2020. Gross Accumulated Carrying September 30, 2019 Amount Amortization Amount Trademarks 3,800 — 3,800 Customer relationships 2,100 (718) 1,382 Other 291 (189) 102 $ 6,191 $ (907) $ 5,284 Gross Accumulated Carrying March 31, 2020 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (789) 1,311 Other 291 (218) 73 $ 6,191 $ (1,007) $ 5,184 Estimated future Aggregate Amortization Expense: Year Ended September 30, 2020 $ 98 2021 185 2022 133 2023 129 2024 126 Thereafter 713 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Mar. 31, 2020 | |
Net Income (Loss) Per Share | |
Net Income (Loss) Per Share | Note 10. Net Income (Loss) Per Share The Company accounts for earnings per share using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to participation rights in undistributed earnings. Non-vested restricted stock awards that include non-forfeitable rights to dividends are considered participating securities. Basic earnings per share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued. The following table sets forth the computation of basic and diluted earnings (losses) per share for the periods indicated: Three Months Ended Six Months Ended March 31, March 31, (in thousands, except share and per share data) 2019 2020 2019 2020 Numerator: Basic and Diluted Net income (loss) $ 1,509 $ 4,068 $ (94) $ 7,336 Dividends paid and accrued (2,758) (2,781) (5,517) (5,618) Undistributed income (loss) (1,249) 1,287 (5,611) 1,718 Percentage allocated to common shares (a) 100.0 % 99.3 % 100.0 % 99.3 % Undistributed income (loss) allocated to common shares (1,249) 1,279 (5,611) 1,707 Dividends paid on common shares outstanding 2,738 2,763 5,475 5,581 Net income (loss) available to common shares 1,489 4,042 (136) 7,288 Denominator: Basic and Diluted Weighted average common shares outstanding 12,448,792 12,473,881 12,439,689 12,466,867 Adjustment for dilutive potential common shares 151,500 30,182 — 30,082 Weighted average shares outstanding - Diluted 12,600,292 12,504,063 12,439,689 12,496,949 Basic net income (loss) per share $ 0.12 $ 0.32 $ (0.01) $ 0.58 Diluted net income (loss) per share $ 0.12 $ 0.32 $ (0.01) $ 0.58 Number of stock option shares excluded as their effect would be anti-dilutive 313,028 561,457 313,787 561,457 Number of restricted stock shares excluded as their effect would be anti-dilutive 66,688 — 67,694 — Number of deferred restricted stock shares excluded as their effect would be anti-dilutive 29,050 — 29,050 — Number of performance share awards excluded as their effect would be anti-dilutive 55,762 — 49,432 — (a ) Percentage allocated to common shares - Weighted average Common shares outstanding 12,448,792 12,473,881 12,439,689 12,466,867 Unvested participating shares — 81,652 — 82,468 12,448,792 12,555,533 12,439,689 12,549,335 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 11. Stock-Based Compensation Restricted Stock The following table summarizes the activity under the 2009 restricted stock plan and the 2016 and 2020 Incentive Compensation Plans with respect to restricted stock for the six months ended March 31, 2020: Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2019 61,838 $ Granted 37,011 $ Forfeited / Canceled (550) $ Vested (16,647) $ Unvested at March 31, 2020 81,652 $ Expected to vest 81,652 $ Compensation expense related to restricted stock for the three months ended March 31, 2019 and 2020 was $219 and $340, respectively, and for the six months ended March 31, 2019 and 2020 was $272 and $556, respectively. The remaining unrecognized compensation expense related to restricted stock at March 31, 2020 was $1,759, to be recognized over a weighted average period of 1.62 years. During the first six months of fiscal 2020, the Company repurchased 5,440 shares of stock from employees at an average purchase price of $36.38 to satisfy required withholding taxes upon vesting of restricted stock-based compensation. Deferred Restricted Stock The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to deferred restricted stock for the six months ended March 31, 2020. Weighted Average Fair Number of Value At Shares Grant Date Unvested and deferred at September 30, 2019 12,500 $ 33.98 Granted 7,449 $ 33.39 Vested and deferred (12,500) 33.98 Unvested and deferred at March 31, 2020 7,449 $ 33.39 Vested and deferred at March 31, 2020 29,050 $ 32.72 Compensation expense related to deferred restricted stock for the three months ended March 31, 2019 and 2020 was $106 and $58, respectively, and for the six months ended March 31, 2019 and 2020 was $229 and $143, respectively. The remaining recognized compensation expense related to deferred restricted stock at March 31, 2020 was $176, to be recognized over a weighted average period of 0.67 years. Performance Shares The following table summarizes the activity under the 2016 and 2020 Incentive Compensation Plans with respect to performance shares for the six months ended March 31, 2020. Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2019 38,553 $ Granted 23,880 $ Unvested at March 31, 2020 62,433 $ Compensation expense related to the performance shares for the three months ended March 31, 2019 and 2020 was $204 and $238, respectively, and for the six months ended March 31, 2019 and 2020 was $325 and $414, respectively. The remaining unrecognized compensation expense related to performance shares at March 31, 2020 was $1,606, to be recognized over a weighted average period of 1.69 years. Stock Options The Company has elected to use the Black-Scholes option pricing model to estimate fair value, which incorporates various assumptions including volatility, expected life, risk-free interest rates and dividend yields. The volatility is based on historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected term of the stock option granted. The Company uses historical volatility because management believes such volatility is representative of prospective trends. The expected term of an award is based on historical exercise data. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of the awards. The dividend yield assumption is based on the Company’s history and expectations regarding dividend payouts at the time of the grant. The following assumptions were used for grants during fiscal year 2020: Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 19, 2019 $ % % 35 % 5 years The stock-based employee compensation expense for stock options for the three months ended March 31, 2019 and 2020 was $178 and $261, respectively, and for the six months ended March 31, 2019 and 2020 was $331 and $518, respectively. The remaining unrecognized compensation expense at March 31, 2020 was $2,100, to be recognized over a weighted average vesting period of 2.00 years. The following table summarizes the activity under the stock option plans and the 2016 and 2020 Incentive Compensation Plans with respect to stock options for the six months ended March 31, 2020 and provides information regarding outstanding stock options: Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2019 482,391 $ 38.05 Granted 91,466 $ Exercised (12,400) $ Outstanding at March 31, 2020 561,457 $ — $ yrs. Vested or expected to vest 519,065 $ — $ yrs. Exercisable at March 31, 2020 245,517 $ — $ yrs. |
Dividend
Dividend | 6 Months Ended |
Mar. 31, 2020 | |
Dividend | |
Dividend | Note 12. Dividend In the first and second quarters of fiscal 2020, the Company declared and paid quarterly cash dividends of $0.22 per outstanding share of the Company’s common stock. The first quarter dividend was paid on December 16, 2019 to stockholders of record at the close of business on December 2, 2019 and the second quarter dividend was paid on March 16, 2020 to stockholders of record at the close of business on March 2, 2020. The dividend cash pay-outs were $2,760 and $2,763 for the first and second quarters of fiscal 2020, respectively, and $77 and $18 of dividends were recorded as deferred in the first and second quarters, respectively. On April 30, 2020, the Company announced that the Board of Directors declared a regular quarterly cash dividend of $0.22 per outstanding share of the Company’s common stock. The dividend is payable June 15, 2020 to stockholders of record at the close of business on June 1, 2020. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 13. Fair Value Measurements The fair value hierarchy has three levels based on the inputs used to determine fair value. Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 — Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. When available, the Company uses unadjusted quoted market prices to measure fair value and classifies such items within Level 1. If quoted market prices are not available, fair value is based upon internally-developed models that use, where possible, current market-based or independently-sourced market parameters such as interest rates and currency rates. Items valued using internally-generated models are classified according to the lowest level input or value driver that is significant to the valuation. If quoted market prices are not available, the valuation model used depends on the specific asset or liability being valued. The fair value of cash and cash equivalents is determined using Level 1 information. The Company had no Level 2 or Level 3 assets or liabilities as of September 30, 2019 or March 31, 2020. U.S. and international equities, fixed income and other investments held in the Company’s pension plan are held in mutual funds and common / collective funds which are valued using net asset value (NAV) provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. These investments are not classified in the fair value hierarchy in accordance with guidance included in ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component | 6 Months Ended |
Mar. 31, 2020 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Note 14. Changes in Accumulated Other Comprehensive Income (Loss) by Component Comprehensive income (loss) includes changes in equity that result from transactions and economic events from non-owner sources. Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) items, including pension, post-retirement and foreign currency translation adjustments, primarily caused by the strengthening or weakening of the U.S. dollar against the British pound sterling, net of tax when applicable. Accumulated Other Comprehensive Income (Loss) Three Months Ended March 31, 2019 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of December 31, 2018 $ (21,166) $ (10,928) $ (11,062) $ (43,156) Other comprehensive income (loss) before reclassifications — — 1,031 1,031 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 52 — — 52 Actuarial losses (1) 363 371 — 734 Tax benefit (109) (98) — (207) Net current-period other comprehensive income (loss) 306 273 1,031 1,610 Accumulated other comprehensive income (loss) as of March 31, 2019 $ (20,860) $ (10,655) $ (10,031) $ (41,546) Three Months Ended March 31, 2020 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of December 31, 2019 $ (60,942) $ (17,749) $ (9,268) $ (87,959) Other comprehensive income (loss) before reclassifications — — (3,918) (3,918) Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 52 — — 52 Actuarial losses (1) 1,822 463 — 2,285 Tax benefit (494) (123) — (617) Net current-period other comprehensive income (loss) 1,380 340 (3,918) (2,198) Accumulated other comprehensive income (loss) as of March 31, 2020 $ (59,562) $ (17,409) $ (13,186) $ (90,157) Six Months Ended March 31, 2019 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2018 $ (21,473) $ (11,201) $ (9,891) $ (42,565) Other comprehensive income (loss) before reclassifications — — (140) (140) Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 103 — — 103 Actuarial losses (1) 727 743 — 1,470 Tax benefit (217) (197) — (414) Net current-period other comprehensive income (loss) 613 546 (140) 1,019 Accumulated other comprehensive loss as of March 31, 2019 $ (20,860) $ (10,655) $ (10,031) $ (41,546) Six Months Ended March 31, 2020 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2019 $ (53,811) $ (13,316) $ (13,511) $ (80,638) Other comprehensive income (loss) before reclassifications — — 325 325 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 103 — — 103 Actuarial losses (1) 3,642 925 — 4,567 Tax benefit (987) (244) — (1,231) Net current-period other comprehensive income (loss) 2,758 681 325 3,764 Reclass due to adoption of ASU 2018-02 (8,509) (4,774) — (13,283) Accumulated other comprehensive loss as of March 31, 2020 $ (59,562) $ (17,409) $ (13,186) $ (90,157) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. |
Long-term Obligations
Long-term Obligations | 6 Months Ended |
Mar. 31, 2020 | |
Long-term Obligations | |
Long-term Obligations | Note 15. Long-term Obligations The following table sets for the components of the Company’s Long-term obligations. September 30, March 31, 2019 2020 Finance lease obligations $ 7,979 $ 7,896 Environmental post-closure monitoring and maintenance activities 606 606 Long-term disability 251 261 Deferred dividends 40 135 Less amounts due within one year (267) (300) Long-term obligations (less current portion) $ 8,609 $ 8,598 |
Leases
Leases | 6 Months Ended |
Mar. 31, 2020 | |
Leases | |
Leases | Note 16. Leases Nature of the Leases The Company has operating and financing leases for buildings, equipment (e.g. trucks and forklifts), vehicles, and computer equipment. Leasing arrangements require fixed payments and also include an amount that is probable will be owed under residual value guarantees, if applicable. Some lease payments also include payments related to purchase or termination options when the lessee is reasonably certain to exercise the option or is not reasonably certain not to exercise the option, respectively. The leases have remaining terms of one to 17 years. For all leases with an initial expected term of more than 12 months, the Company recorded, at the adoption date of ASC 842 or lease commencement date for leases entered into after the adoption date, a lease liability, which is the lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or to control the use of, a specified asset for the lease term. The Company utilizes its collateralized incremental borrowing rate commensurate to the lease term as the discount rate for its leases, unless the Company can specifically determine the lessor’s implicit rate. Significant Judgments and Assumptions Determination of Whether a Contract Contains a Lease The Company determines whether a contract is or contains a lease at the inception of the contract. The contract is or contains a lease if the contract conveys the right to control the use of identified assets for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from use of the property, plant, and equipment and have the right to direct its use. Practical Expedients (Policy Elections) The Company elected certain practical expedients and transition relief, including the short-term lease recognition exemption, which excludes leases with a term of 12 months or less from recognition on the balance sheet, recognizing lease components and non-lease components together as a single lease component, and the transition relief package which, among other things, includes not reassessing the lease classification or whether a contract is or contains a lease. The following table sets forth the components of the Company’s lease cost for the three and six months ended March 31, 2020. Three Months Ended March 31, Six Months Ended March 31, 2020 2020 Finance lease cost: Amortization of right of use asset $ 107 $ 215 Interest on lease liabilities 207 415 Total finance lease cost $ 314 $ 630 Operating lease cost $ 375 $ 730 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases 207 415 Operating cash flows from operating leases 375 730 Financing cash flows from finance leases 42 82 Total cash paid for amounts included in measurement of lease liabilities $ 624 $ 1,227 Lease costs associated with short term leases are not material. The following table sets forth the Company’s right of use assets and lease liabilities as of March 31, 2020. March 31, 2020 Finance lease assets (included in Property, plant and equipment, net) 6,719 Operating right of use lease assets (included in Other assets) 2,306 Total lease assets $ 9,025 Finance lease liabilities Accrued expenses 182 Long-term obligations (less current portion) 7,714 Total Finance lease liabilities $ 7,896 Operating lease liabilities $ 2,306 March 31, 2020 Weighted average lease term (Years) Finance leases 15.6 Operating leases 3.2 Weighted average discount rate Finance leases 10.33 % Operating leases 5.25 % The following is a table of future minimum lease payments during each fiscal year under operating and finance leases and the present value of the net minimum lease payments as of March 31, 2020. Finance Operating Future minimum lease payments Leases Leases 2020 $ 498 $ 683 2021 1,001 839 2022 1,012 426 2023 1,024 293 2024 1,031 281 Thereafter 11,540 71 Total minimum lease payments 16,106 2,593 Less: amount representing interest (8,210) (287) Present value of net minimum lease payments $ 7,896 $ 2,306 The following is a table of future minimum lease payments as of September 30, 2019. Finance Operating Contractual Obligations as of September 30, 2019 Leases Leases 2020 $ 993 $ 2,542 2021 1,000 1,254 2022 1,013 460 2023 1,024 277 2024 1,032 259 Thereafter 11,623 60 Total minimum lease payments 16,685 4,852 Less: amount representing interest (8,706) — Present value of net minimum lease payments $ 7,979 $ 4,852 |
Foreign Currency Forward Contra
Foreign Currency Forward Contracts | 6 Months Ended |
Mar. 31, 2020 | |
Foreign Currency Forward Contracts | |
Foreign Currency Forward Contracts | Note 17. Foreign Currency Forward Contracts The Company enters into foreign currency forward contracts to reduce income statement volatility resulting from foreign currency denominated transactions. The Company has not designated the contracts as hedges, therefore, changes in fair value are recognized in earnings. All of these contracts are designed to be settled within the same fiscal quarter they are entered into and, accordingly, as of March 31, 2020, there were no contracts that remain unsettled. As a result, there was no impact to the balance sheet from those contracts as of September 30, 2019 or March 31, 2020. Foreign exchange hedging gains and losses are recorded within selling, general and administrative expenses on the Consolidated Statements of Operations along with foreign currency transactional gains and losses as follows. Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Foreign currency transactional gain (loss) $ (93) $ 724 $ 247 $ (347) Foreign exchange forward contract gain (loss) $ 198 $ (501) $ (299) $ (22) Net gain (loss) included in selling, general and administrative expense $ 105 $ 223 $ (52) $ (369) |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Haynes International, Inc. and directly or indirectly wholly-owned subsidiaries (collectively, the “Company”). All intercompany transactions and balances are eliminated. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Revenues from Contracts with Customers | |
Schedule of disaggregation of revenue | Three Months Ended Six Months Ended March 31, March 31, 2019 2020 2019 2020 Net revenues (dollars in thousands) Aerospace $ 68,858 $ 59,172 $ 123,465 $ 118,015 Chemical processing 21,761 15,832 40,681 32,544 Industrial gas turbine 13,685 16,701 27,768 30,464 Other markets 16,958 12,762 31,243 24,637 Total product revenue 121,262 104,467 223,157 205,660 Other revenue 6,212 7,096 11,386 14,356 Net revenues $ 127,474 $ 111,563 $ 234,543 $ 220,016 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Summary of major classes of inventories | September 30, March 31, 2019 2020 Raw Materials $ 17,935 $ 21,747 Work-in-process 138,859 142,879 Finished Goods 100,590 114,165 Other 1,418 1,546 $ 258,802 $ 280,337 |
Pension and Post-retirement B_2
Pension and Post-retirement Benefits (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Pension and Post-retirement Benefits | |
Schedule of components of net periodic pension and postretirement benefit cost | Three Months Ended March 31, Six Months Ended March 31, Pension Benefits Other Benefits Pension Benefits Other Benefits 2019 2020 2019 2020 2019 2020 2019 2020 Service cost $ 1,310 $ 1,387 $ 79 $ 354 $ 2,620 $ 2,773 $ 158 $ 708 Interest cost 2,567 2,148 1,088 873 5,133 4,296 2,176 1,746 Expected return (3,575) (3,623) — — (7,147) (7,268) — — Amortizations 401 1,859 372 462 803 3,718 744 924 Net periodic benefit cost $ 703 $ 1,771 $ 1,539 $ 1,689 $ 1,409 $ 3,519 $ 3,078 $ 3,378 |
Legal, Environmental and Othe_2
Legal, Environmental and Other Contingencies (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Legal, Environmental and Other Contingencies | |
Schedule of expected maturities of post-closure monitoring and maintenance activities (discounted) | Expected maturities of post-closure monitoring and maintenance activities (discounted) Year Ended September 30, 2021 $ 74 2022 64 2023 81 2024 60 2025 and thereafter 229 $ 508 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Goodwill and Other Intangible Assets, Net | |
Summary of intangible assets | Gross Accumulated Carrying September 30, 2019 Amount Amortization Amount Trademarks 3,800 — 3,800 Customer relationships 2,100 (718) 1,382 Other 291 (189) 102 $ 6,191 $ (907) $ 5,284 Gross Accumulated Carrying March 31, 2020 Amount Amortization Amount Trademarks $ 3,800 $ — $ 3,800 Customer relationships 2,100 (789) 1,311 Other 291 (218) 73 $ 6,191 $ (1,007) $ 5,184 |
Schedule of estimated future aggregate amortization expense | Estimated future Aggregate Amortization Expense: Year Ended September 30, 2020 $ 98 2021 185 2022 133 2023 129 2024 126 Thereafter 713 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Net Income (Loss) Per Share | |
Schedule of basic and diluted net earnings (losses) per share | Three Months Ended Six Months Ended March 31, March 31, (in thousands, except share and per share data) 2019 2020 2019 2020 Numerator: Basic and Diluted Net income (loss) $ 1,509 $ 4,068 $ (94) $ 7,336 Dividends paid and accrued (2,758) (2,781) (5,517) (5,618) Undistributed income (loss) (1,249) 1,287 (5,611) 1,718 Percentage allocated to common shares (a) 100.0 % 99.3 % 100.0 % 99.3 % Undistributed income (loss) allocated to common shares (1,249) 1,279 (5,611) 1,707 Dividends paid on common shares outstanding 2,738 2,763 5,475 5,581 Net income (loss) available to common shares 1,489 4,042 (136) 7,288 Denominator: Basic and Diluted Weighted average common shares outstanding 12,448,792 12,473,881 12,439,689 12,466,867 Adjustment for dilutive potential common shares 151,500 30,182 — 30,082 Weighted average shares outstanding - Diluted 12,600,292 12,504,063 12,439,689 12,496,949 Basic net income (loss) per share $ 0.12 $ 0.32 $ (0.01) $ 0.58 Diluted net income (loss) per share $ 0.12 $ 0.32 $ (0.01) $ 0.58 Number of stock option shares excluded as their effect would be anti-dilutive 313,028 561,457 313,787 561,457 Number of restricted stock shares excluded as their effect would be anti-dilutive 66,688 — 67,694 — Number of deferred restricted stock shares excluded as their effect would be anti-dilutive 29,050 — 29,050 — Number of performance share awards excluded as their effect would be anti-dilutive 55,762 — 49,432 — (a ) Percentage allocated to common shares - Weighted average Common shares outstanding 12,448,792 12,473,881 12,439,689 12,466,867 Unvested participating shares — 81,652 — 82,468 12,448,792 12,555,533 12,439,689 12,549,335 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation | |
Summary of activity under the restricted stock plan | Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2019 61,838 $ Granted 37,011 $ Forfeited / Canceled (550) $ Vested (16,647) $ Unvested at March 31, 2020 81,652 $ Expected to vest 81,652 $ |
Summary of activity under the deferred restricted stock plan | Weighted Average Fair Number of Value At Shares Grant Date Unvested and deferred at September 30, 2019 12,500 $ 33.98 Granted 7,449 $ 33.39 Vested and deferred (12,500) 33.98 Unvested and deferred at March 31, 2020 7,449 $ 33.39 Vested and deferred at March 31, 2020 29,050 $ 32.72 |
Summary of activity under the 2016 Incentive Compensation Plan with respect to performance shares | Weighted Average Fair Number of Value At Shares Grant Date Unvested at September 30, 2019 38,553 $ Granted 23,880 $ Unvested at March 31, 2020 62,433 $ |
Schedule of fair value assumptions used for grants under the stock option plan | Fair Dividend Risk-free Expected Expected Grant Date Value Yield Interest Rate Volatility Life November 19, 2019 $ % % 35 % 5 years |
Summary of activity under the stock option plans | Weighted Aggregate Weighted Average Intrinsic Average Remaining Number of Value Exercise Contractual Shares (000s) Prices Life Outstanding at September 30, 2019 482,391 $ 38.05 Granted 91,466 $ Exercised (12,400) $ Outstanding at March 31, 2020 561,457 $ — $ yrs. Vested or expected to vest 519,065 $ — $ yrs. Exercisable at March 31, 2020 245,517 $ — $ yrs. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | |
Schedule of accumulated other comprehensive income (loss) | Three Months Ended March 31, 2019 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of December 31, 2018 $ (21,166) $ (10,928) $ (11,062) $ (43,156) Other comprehensive income (loss) before reclassifications — — 1,031 1,031 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 52 — — 52 Actuarial losses (1) 363 371 — 734 Tax benefit (109) (98) — (207) Net current-period other comprehensive income (loss) 306 273 1,031 1,610 Accumulated other comprehensive income (loss) as of March 31, 2019 $ (20,860) $ (10,655) $ (10,031) $ (41,546) Three Months Ended March 31, 2020 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of December 31, 2019 $ (60,942) $ (17,749) $ (9,268) $ (87,959) Other comprehensive income (loss) before reclassifications — — (3,918) (3,918) Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 52 — — 52 Actuarial losses (1) 1,822 463 — 2,285 Tax benefit (494) (123) — (617) Net current-period other comprehensive income (loss) 1,380 340 (3,918) (2,198) Accumulated other comprehensive income (loss) as of March 31, 2020 $ (59,562) $ (17,409) $ (13,186) $ (90,157) Six Months Ended March 31, 2019 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2018 $ (21,473) $ (11,201) $ (9,891) $ (42,565) Other comprehensive income (loss) before reclassifications — — (140) (140) Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 103 — — 103 Actuarial losses (1) 727 743 — 1,470 Tax benefit (217) (197) — (414) Net current-period other comprehensive income (loss) 613 546 (140) 1,019 Accumulated other comprehensive loss as of March 31, 2019 $ (20,860) $ (10,655) $ (10,031) $ (41,546) Six Months Ended March 31, 2020 Pension Postretirement Foreign Plan Plan Exchange Total Accumulated other comprehensive income (loss) as of September 30, 2019 $ (53,811) $ (13,316) $ (13,511) $ (80,638) Other comprehensive income (loss) before reclassifications — — 325 325 Amounts reclassified from accumulated other comprehensive income (loss) Amortization of Pension and Postretirement Plan items (1) 103 — — 103 Actuarial losses (1) 3,642 925 — 4,567 Tax benefit (987) (244) — (1,231) Net current-period other comprehensive income (loss) 2,758 681 325 3,764 Reclass due to adoption of ASU 2018-02 (8,509) (4,774) — (13,283) Accumulated other comprehensive loss as of March 31, 2020 $ (59,562) $ (17,409) $ (13,186) $ (90,157) These accumulated other comprehensive income components are included in the computation of net periodic pension c |
Long-term Obligations (Tables)
Long-term Obligations (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Long-term Obligations | |
Schedule of long-term obligations | September 30, March 31, 2019 2020 Finance lease obligations $ 7,979 $ 7,896 Environmental post-closure monitoring and maintenance activities 606 606 Long-term disability 251 261 Deferred dividends 40 135 Less amounts due within one year (267) (300) Long-term obligations (less current portion) $ 8,609 $ 8,598 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Leases | |
Schedule of lease costs | Three Months Ended March 31, Six Months Ended March 31, 2020 2020 Finance lease cost: Amortization of right of use asset $ 107 $ 215 Interest on lease liabilities 207 415 Total finance lease cost $ 314 $ 630 Operating lease cost $ 375 $ 730 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases 207 415 Operating cash flows from operating leases 375 730 Financing cash flows from finance leases 42 82 Total cash paid for amounts included in measurement of lease liabilities $ 624 $ 1,227 |
Schedule of Balance Sheet operating and financing lease information | March 31, 2020 Finance lease assets (included in Property, plant and equipment, net) 6,719 Operating right of use lease assets (included in Other assets) 2,306 Total lease assets $ 9,025 Finance lease liabilities Accrued expenses 182 Long-term obligations (less current portion) 7,714 Total Finance lease liabilities $ 7,896 Operating lease liabilities $ 2,306 March 31, 2020 Weighted average lease term (Years) Finance leases 15.6 Operating leases 3.2 Weighted average discount rate Finance leases 10.33 % Operating leases 5.25 % |
Schedule of financing and operating lease maturity | The following is a table of future minimum lease payments during each fiscal year under operating and finance leases and the present value of the net minimum lease payments as of March 31, 2020. Finance Operating Future minimum lease payments Leases Leases 2020 $ 498 $ 683 2021 1,001 839 2022 1,012 426 2023 1,024 293 2024 1,031 281 Thereafter 11,540 71 Total minimum lease payments 16,106 2,593 Less: amount representing interest (8,210) (287) Present value of net minimum lease payments $ 7,896 $ 2,306 The following is a table of future minimum lease payments as of September 30, 2019. Finance Operating Contractual Obligations as of September 30, 2019 Leases Leases 2020 $ 993 $ 2,542 2021 1,000 1,254 2022 1,013 460 2023 1,024 277 2024 1,032 259 Thereafter 11,623 60 Total minimum lease payments 16,685 4,852 Less: amount representing interest (8,706) — Present value of net minimum lease payments $ 7,979 $ 4,852 |
Foreign Currency Forward Cont_2
Foreign Currency Forward Contracts (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Foreign Currency Forward Contracts | |
Schedule of foreign exchange hedging gains and losses | Three Months Ended March 31, Six Months Ended March 31, 2019 2020 2019 2020 Foreign currency transactional gain (loss) $ (93) $ 724 $ 247 $ (347) Foreign exchange forward contract gain (loss) $ 198 $ (501) $ (299) $ (22) Net gain (loss) included in selling, general and administrative expense $ 105 $ 223 $ (52) $ (369) |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Recently Issued Accounting Pronouncements | |||
Lease, Practical Expedients, Package | true | ||
Accumulated other comprehensive income (loss) | $ (90,157) | $ (80,638) | |
Retained earnings | $ 140,297 | $ 125,296 | |
Reclassification upon adoption | ASU 2018-02 | |||
Recently Issued Accounting Pronouncements | |||
Accumulated other comprehensive income (loss) | $ (13,283) | ||
Retained earnings | $ 13,283 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Other Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Revenues from Contracts with Customers | ||
Accounts receivable, gross | $ 66,667 | $ 77,420 |
Accounts receivable, allowance for doubtful accounts | 697 | 441 |
Contract liabilities | $ 16,579 | $ 17,829 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from Contracts with Customers | ||||
Net revenues | $ 111,563 | $ 127,474 | $ 220,016 | $ 234,543 |
Product | ||||
Revenue from Contracts with Customers | ||||
Net revenues | 104,467 | 121,262 | 205,660 | 223,157 |
Aerospace | ||||
Revenue from Contracts with Customers | ||||
Net revenues | 59,172 | 68,858 | 118,015 | 123,465 |
Chemical processing | ||||
Revenue from Contracts with Customers | ||||
Net revenues | 15,832 | 21,761 | 32,544 | 40,681 |
Industrial gas turbine | ||||
Revenue from Contracts with Customers | ||||
Net revenues | 16,701 | 13,685 | 30,464 | 27,768 |
Other markets | ||||
Revenue from Contracts with Customers | ||||
Net revenues | 12,762 | 16,958 | 24,637 | 31,243 |
Other | ||||
Revenue from Contracts with Customers | ||||
Net revenues | $ 7,096 | $ 6,212 | $ 14,356 | $ 11,386 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Inventories | ||
Raw Materials | $ 21,747 | $ 17,935 |
Work-in-process | 142,879 | 138,859 |
Finished Goods | 114,165 | 100,590 |
Other | 1,546 | 1,418 |
Total | $ 280,337 | $ 258,802 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes | ||||
Statutory federal tax rate (as a percent) | 21.00% | 21.00% | 21.00% | 21.00% |
Effective tax rate (as a percent) | 26.00% | 26.00% | 26.00% | 128.10% |
Income (loss) before income taxes | $ 5,497 | $ 2,039 | $ 9,914 | $ 335 |
Increase in tax expense attributable to expiration of stock option grants | $ 300 |
Pension and Post-retirement B_3
Pension and Post-retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Pension Plans | ||||
Pension Plan and Retirement Benefits | ||||
Service cost | $ 1,387 | $ 1,310 | $ 2,773 | $ 2,620 |
Interest cost | 2,148 | 2,567 | 4,296 | 5,133 |
Expected return | (3,623) | (3,575) | (7,268) | (7,147) |
Amortizations | 1,859 | 401 | 3,718 | 803 |
Net periodic benefit cost | 1,771 | 703 | 3,519 | 1,409 |
Postretirement Health Care Benefits | ||||
Pension Plan and Retirement Benefits | ||||
Service cost | 354 | 79 | 708 | 158 |
Interest cost | 873 | 1,088 | 1,746 | 2,176 |
Amortizations | 462 | 372 | 924 | 744 |
Net periodic benefit cost | 1,689 | $ 1,539 | 3,378 | $ 3,078 |
Contribution to plan | 1,424 | |||
Expected future employer contribution | 2,730 | 2,730 | ||
U.S. pension plan | Defined Benefit Pension Plans | ||||
Pension Plan and Retirement Benefits | ||||
Contribution to plan | 3,000 | |||
Expected future employer contribution | 3,000 | 3,000 | ||
U.K. pension plan | Defined Benefit Pension Plans | ||||
Pension Plan and Retirement Benefits | ||||
Contribution to plan | 370 | |||
Expected future employer contribution | $ 368 | $ 368 |
Legal, Environmental and Othe_3
Legal, Environmental and Other Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Environmental post-closure monitoring and maintenance activities | $ 606 | $ 606 |
Maturities of long-term obligations (discounted) | ||
Long-term obligations (less current portion) | 508 | $ 606 |
Long Term Obligations | ||
Maturities of long-term obligations (discounted) | ||
2021 | 74 | |
2022 | 64 | |
2023 | 81 | |
2024 | 60 | |
2025 and thereafter | 229 | |
Long-term obligations (less current portion) | $ 508 |
Deferred Revenue (Details)
Deferred Revenue (Details) - Conversion Services Agreement $ in Thousands, lb in Millions | Nov. 17, 2006USD ($) | Mar. 31, 2020USD ($)lb |
Deferred revenue | ||
Term of agreement to provide conversion services | 20 years | |
Up-front/advance payment received | $ 50,000 | |
Additional volume of titanium metal to be converted on exercise of option by service receiver (in pounds) | lb | 10 | |
Liquidated damages | $ 25,000 | |
Revenue recognition period | 20 years | |
Maximum | ||
Deferred revenue | ||
Annual volume of titanium metal to be converted (in pounds) | lb | 10 | |
Amount of loan offered by counterparty | $ 12,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Overview (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill and Other Intangible Assets, Net | |
Goodwill impairment loss | $ 0 |
Change to goodwill | $ 0 |
Customer relationships | |
Goodwill and Other Intangible Assets, Net | |
Useful life | 16 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |
Intangible Assets | |||||
Amortization of customer relationships, patents, non-competes and other intangibles | $ 49 | $ 50 | $ 100 | $ 155 | |
Total intangible assets, Gross Amount | 6,191 | 6,191 | $ 6,191 | ||
Finite-lived intangible assets, Accumulated Amortization | (1,007) | (1,007) | (907) | ||
Carrying Amount | 5,184 | 5,184 | 5,284 | ||
Customer relationships | |||||
Intangible Assets | |||||
Finite-Lived Intangible Assets, Gross | 2,100 | 2,100 | 2,100 | ||
Finite-lived intangible assets, Accumulated Amortization | (789) | (789) | (718) | ||
Finite-lived intangible assets, Carrying Amount | 1,311 | 1,311 | 1,382 | ||
Other Intangible Assets | |||||
Intangible Assets | |||||
Finite-Lived Intangible Assets, Gross | 291 | 291 | 291 | ||
Finite-lived intangible assets, Accumulated Amortization | (218) | (218) | (189) | ||
Finite-lived intangible assets, Carrying Amount | 73 | 73 | 102 | ||
Trademarks | |||||
Intangible Assets | |||||
Indefinite-lived intangible assets | $ 3,800 | $ 3,800 | $ 3,800 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Amortization Expense (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Estimate of Aggregate Amortization Expense: | |
2020 | $ 98 |
2021 | 185 |
2022 | 133 |
2023 | 129 |
2024 | 126 |
Thereafter | $ 713 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: Basic and Diluted | ||||
Net income (loss) - Basic | $ 4,068 | $ 1,509 | $ 7,336 | $ (94) |
Net income (loss) - Diluted | 4,068 | 1,509 | 7,336 | (94) |
Dividends | (2,781) | (2,758) | (5,618) | (5,517) |
Undistributed income (loss) - Basic | 1,287 | (1,249) | 1,718 | (5,611) |
Undistributed income (loss) - Diluted | $ 1,287 | $ (1,249) | $ 1,718 | $ (5,611) |
Percentage allocated to common shares | 99.30% | 100.00% | 99.30% | 100.00% |
Undistributed income (loss) allocated to common shares - Basic | $ 1,279 | $ (1,249) | $ 1,707 | $ (5,611) |
Undistributed income (loss) allocated to common shares - Diluted | 1,279 | (1,249) | 1,707 | (5,611) |
Dividends paid on common shares outstanding | 2,763 | 2,738 | 5,581 | 5,475 |
Net income (loss) available to common shares - Basic | 4,042 | 1,489 | 7,288 | (136) |
Net income (loss) available to common shares - Diluted | $ 4,042 | $ 1,489 | $ 7,288 | $ (136) |
Denominator: Basic and Diluted | ||||
Weighted average common shares outstanding - Basic | 12,473,881 | 12,448,792 | 12,466,867 | 12,439,689 |
Adjustment for dilutive potential common shares | 30,182 | 151,500 | 30,082 | |
Weighted average shares outstanding - Diluted | 12,504,063 | 12,600,292 | 12,496,949 | 12,439,689 |
Basic net income (loss) per share (in dollars per share) | $ 0.32 | $ 0.12 | $ 0.58 | $ (0.01) |
Diluted net income (loss) per share (in dollars per share) | $ 0.32 | $ 0.12 | $ 0.58 | $ (0.01) |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Anti-dilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Employee and Directors Stock Options | ||||
Antidilutive securities | ||||
Number of shares excluded as their effect would be anti-dilutive | 561,457 | 313,028 | 561,457 | 313,787 |
Restricted Stock | ||||
Antidilutive securities | ||||
Number of shares excluded as their effect would be anti-dilutive | 66,688 | 67,694 | ||
Deferred Restricted Stock | ||||
Antidilutive securities | ||||
Number of shares excluded as their effect would be anti-dilutive | 29,050 | 29,050 | ||
Performance Shares | ||||
Antidilutive securities | ||||
Number of shares excluded as their effect would be anti-dilutive | 55,762 | 49,432 |
Net Income (Loss) Per Share - W
Net Income (Loss) Per Share - Weighted Average Common Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Percentage allocated to common shares - weighted average | ||||
Common shares outstanding | 12,473,881 | 12,448,792 | 12,466,867 | 12,439,689 |
Unvested participating shares | 81,652 | 82,468 | ||
Total | 12,555,533 | 12,448,792 | 12,549,335 | 12,439,689 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Plan and Performance Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock | 2009 Restricted Stock Plan | ||||
Restricted stock plan activity, number of shares | ||||
Unvested and deferred at beginning of the period (in shares) | 61,838 | |||
Granted (in shares) | 37,011 | |||
Forfeited / Canceled (in shares) | (550) | |||
Vested and deferred (in shares) | (16,647) | |||
Unvested and deferred at end of the period (in shares) | 81,652 | 81,652 | ||
Expected to vest (in shares) | 81,652 | 81,652 | ||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||||
Unvested and deferred at beginning of the period (in dollars per share) | $ 34.94 | |||
Granted (in dollars per share) | 36.67 | |||
Forfeited / Canceled (in dollars per share) | 34 | |||
Vested and deferred (in dollars per share) | 40.33 | |||
Unvested and deferred at end of the period (in dollars per share) | $ 34.62 | 34.62 | ||
Expected to vest (in dollars per share) | $ 34.62 | $ 34.62 | ||
Deferred Restricted Stock plan activity, number of shares | ||||
Vested (in shares) | 16,647 | |||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||||
Vested and deferred (in dollars per share) | $ 40.33 | |||
Restricted stock plan activity, other disclosures | ||||
Compensation expense | $ 340 | $ 219 | $ 556 | $ 272 |
Remaining unrecognized compensation expense | $ 1,759 | $ 1,759 | ||
Weighted average period for recognition | 1 year 7 months 13 days | |||
Restricted Stock | 2009 Restricted Stock Plan | Employee | ||||
Restricted stock plan activity, other disclosures | ||||
Repurchase of stock from employees (in shares) | 5,440 | |||
Average purchase price (in dollars per share) | $ 36.38 | $ 36.38 | ||
Restricted Stock | 2016 Restricted Stock Plan | ||||
Restricted stock plan activity, other disclosures | ||||
Compensation expense | $ 143 | 229 | ||
Deferred Restricted Stock | 2016 Restricted Stock Plan | ||||
Restricted stock plan activity, number of shares | ||||
Vested and deferred (in shares) | (29,050) | |||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||||
Vested and deferred (in dollars per share) | $ 32.72 | |||
Deferred Restricted Stock plan activity, number of shares | ||||
Outstanding at beginning of period (in shares) | 12,500 | |||
Granted (in shares) | 7,449 | |||
Vested and deferred (in shares) | (12,500) | |||
Outstanding at end of period (in shares) | 7,449 | 7,449 | ||
Vested (in shares) | 29,050 | |||
Deferred Restricted Stock plan activity, Weighted Average Fair Value at Grant Date | ||||
Outstanding at beginning of period (in dollars per share) | $ 33.98 | |||
Granted (in dollars per share) | 33.39 | |||
Vested and deferred (in dollars per share) | 33.98 | |||
Outstanding at end of period (in dollars per share) | $ 33.39 | 33.39 | ||
Vested and deferred (in dollars per share) | $ 32.72 | |||
Restricted stock plan activity, other disclosures | ||||
Compensation expense | $ 58 | 106 | ||
Remaining unrecognized compensation expense | 176 | $ 176 | ||
Weighted average period for recognition | 8 months 1 day | |||
Performance Shares | Certain Employees | ||||
Stock-Based Compensation | ||||
Remaining unrecognized compensation expense | $ 1,606 | $ 1,606 | ||
Restricted stock plan activity, number of shares | ||||
Unvested and deferred at beginning of the period (in shares) | 38,553 | |||
Granted (in shares) | 23,880 | |||
Unvested and deferred at end of the period (in shares) | 62,433 | 62,433 | ||
Restricted stock plan activity, Weighted Average Fair Value at Grant Date | ||||
Unvested and deferred at beginning of the period (in dollars per share) | $ 42.52 | |||
Granted (in dollars per share) | 44.13 | |||
Unvested and deferred at end of the period (in dollars per share) | $ 43.14 | $ 43.14 | ||
Restricted stock plan activity, other disclosures | ||||
Compensation expense | $ 238 | $ 204 | $ 414 | $ 325 |
Weighted average period for recognition | 1 year 8 months 9 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Plans (Details) - Employee and Directors Stock Options - USD ($) $ / shares in Units, $ in Thousands | Nov. 19, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Fair value assumptions | |||||
Fair Value (in dollars per share) | $ 9.66 | ||||
Dividend Yield (as a percent) | 2.38% | ||||
Risk-Free Interest Rate (as a percent) | 1.65% | ||||
Expected Volatility (as a percent) | 35.00% | ||||
Expected Life | 5 years | ||||
Stock-based employee compensation expense | $ 261 | $ 178 | $ 518 | $ 331 | |
Remaining unrecognized compensation expense | $ 2,100 | $ 2,100 | |||
Weighted average period for recognition | 2 years | ||||
Activity under stock option plans, number of shares | |||||
Outstanding at beginning of the period (in shares) | 482,391 | ||||
Granted (in shares) | 91,466 | ||||
Exercised (in shares) | (12,400) | ||||
Outstanding at end of the period (in shares) | 561,457 | 561,457 | |||
Vested or expected to vest (in shares) | 519,065 | 519,065 | |||
Exercisable at end of period (in shares) | 245,517 | 245,517 | |||
Weighted Average Exercise Prices | |||||
Outstanding at beginning of the period (in dollars per share) | $ 38.05 | ||||
Granted (in dollars per share) | 37 | ||||
Exercised (in dollars per share) | 34 | ||||
Outstanding at end of period (in dollars per share) | $ 37.97 | 37.97 | |||
Vested or expected to vest (in dollars per share) | 37.90 | 37.90 | |||
Exercisable at end of the period (in dollars per share) | $ 42.17 | $ 42.17 | |||
Outstanding at end of the period, Weighted Average Remaining Contractual Life | 7 years 6 months 26 days | ||||
Vested or expected to vest, Weighted Average Remaining Contractual Life | 7 years 7 months 21 days | ||||
Exercisable at end of the period, Weighted Average Remaining Contractual Life | 5 years 6 months 4 days |
Dividend (Details)
Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Common stock dividend | ||||||
Dividend declared (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.44 | $ 0.44 | |
Dividend paid (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.44 | $ 0.44 | |
Dividend paid (in dollars) | $ 2,763 | $ 2,760 | $ 5,523 | $ 5,505 | ||
Dividend deferred in accordance with Deferred Compensation Plan | $ 18 | $ 77 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated other comprehensive income (loss) | ||||
Balance | $ 303,626 | $ 328,624 | $ 296,275 | $ 333,220 |
Other comprehensive income (loss) | (2,198) | 1,610 | 3,764 | 1,019 |
Balance | 303,612 | 329,692 | 303,612 | 329,692 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated other comprehensive income (loss) | ||||
Balance | (87,959) | (43,156) | (80,638) | (42,565) |
Other comprehensive income (loss) before reclassifications | (3,918) | 1,031 | 325 | (140) |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (617) | (207) | (1,231) | (414) |
Other comprehensive income (loss) | (2,198) | 1,610 | 3,764 | 1,019 |
Balance | (90,157) | (41,546) | (90,157) | (41,546) |
Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | ||||
Accumulated other comprehensive income (loss) | ||||
Balance | (60,942) | (21,166) | (53,811) | (21,473) |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (494) | (109) | (987) | (217) |
Other comprehensive income (loss) | 1,380 | 306 | 2,758 | 613 |
Balance | (59,562) | (20,860) | (59,562) | (20,860) |
Accumulated Defined Benefit Plans Adjustment | Postretirement Health Care Benefits | ||||
Accumulated other comprehensive income (loss) | ||||
Balance | (17,749) | (10,928) | (13,316) | (11,201) |
Amounts reclassified from accumulated other comprehensive income (loss), Tax benefit | (123) | (98) | (244) | (197) |
Other comprehensive income (loss) | 340 | 273 | 681 | 546 |
Balance | (17,409) | (10,655) | (17,409) | (10,655) |
Amortization of Pension and Postretirement Plan items | ||||
Accumulated other comprehensive income (loss) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 52 | 52 | 103 | 103 |
Amortization of Pension and Postretirement Plan items | Defined Benefit Pension Plans | ||||
Accumulated other comprehensive income (loss) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 52 | 52 | 103 | 103 |
Actuarial losses | ||||
Accumulated other comprehensive income (loss) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 2,285 | 734 | 4,567 | 1,470 |
Actuarial losses | Defined Benefit Pension Plans | ||||
Accumulated other comprehensive income (loss) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 1,822 | 363 | 3,642 | 727 |
Actuarial losses | Postretirement Health Care Benefits | ||||
Accumulated other comprehensive income (loss) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 463 | 371 | 925 | 743 |
Accumulated Translation Adjustment | ||||
Accumulated other comprehensive income (loss) | ||||
Balance | (9,268) | (11,062) | (13,511) | (9,891) |
Other comprehensive income (loss) before reclassifications | (3,918) | 1,031 | 325 | (140) |
Other comprehensive income (loss) | (3,918) | 1,031 | 325 | (140) |
Balance | $ (13,186) | $ (10,031) | (13,186) | $ (10,031) |
Reclassifications out of accumulated other comprehensive income | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated other comprehensive income (loss) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (13,283) | |||
Reclassifications out of accumulated other comprehensive income | Accumulated Defined Benefit Plans Adjustment | Defined Benefit Pension Plans | ||||
Accumulated other comprehensive income (loss) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | (8,509) | |||
Reclassifications out of accumulated other comprehensive income | Accumulated Defined Benefit Plans Adjustment | Postretirement Health Care Benefits | ||||
Accumulated other comprehensive income (loss) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), before tax | $ (4,774) |
Long-term Obligations - Minimum
Long-term Obligations - Minimum Lease Rental Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Long-term obligations (less current portion) | ||
Finance lease rental payments | $ 7,896 | $ 7,979 |
Environmental post-closure monitoring and maintenance activities | 606 | 606 |
Long-term disability | 261 | 251 |
Deferred dividends | 135 | 40 |
Less amounts due within one year | (300) | (267) |
Long-term obligations (less current portion) | $ 8,598 | $ 8,609 |
Leases - Other (Details)
Leases - Other (Details) | 6 Months Ended |
Mar. 31, 2020 | |
Lessee, Operating Lease, Existence of Residual Value Guarantee | true |
Lessee, Operating Lease, Existence of Option to Terminate | true |
Lease, Practical Expedients, Package | true |
Minimum | |
Operating lease remaining term | 1 year |
Finance lease remaining term | 1 year |
Maximum | |
Operating lease remaining term | 17 years |
Finance lease remaining term | 17 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Finance lease cost: | ||
Amortization of right of use asset | $ 107 | $ 215 |
Interest on lease liabilities | 207 | 415 |
Total finance lease cost | 314 | 630 |
Operating lease costs: | ||
Operating lease cost | 375 | 730 |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flow from finance leases | 207 | 415 |
Operating cash flow from operating leases | 375 | 730 |
Financing cash flows from finance leases | 42 | 82 |
Total cash paid for amount included in measurement of lease liabilities | $ 624 | $ 1,227 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Leases | ||
Finance lease assets (included in Property, plant and equipment, net) | $ 6,719 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | |
Operating right of use lease assets (included in Other assets) | $ 2,306 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Prepaid Expenses and Deferred Costs, Noncurrent | |
Total lease assets | $ 9,025 | |
Finance lease liabilities | ||
Accrued expenses | $ 182 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | |
Long-term obligations (less current portion) | $ 7,714 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Capital Leases Future Minimum Payments And Accrual For Environmental Loss Contingencies Noncurrent | |
Total Finance lease liabilities | $ 7,896 | $ 7,979 |
Operating lease liabilities | ||
Operating lease liabilities | $ 2,306 | $ 4,852 |
Weighted average lease term Finance leases | 15 years 7 months 6 days | |
Weighted average lease term Operating leases | 3 years 2 months 12 days | |
Weighted average discount rate Finance leases (as a percent) | 10.33% | |
Weighted average discount rate Operating leases (as a percent) | 5.25% |
Leases - Rolling Maturity (Deta
Leases - Rolling Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Finance Leases Rolling Maturity | ||
2020 | $ 498 | |
2021 | 1,001 | |
2022 | 1,012 | |
2023 | 1,024 | |
2024 | 1,031 | |
Thereafter | 11,540 | |
Total minimum lease payments | 16,106 | $ 16,685 |
Less: amount representing interest | (8,210) | (8,706) |
Total Finance lease liabilities | 7,896 | 7,979 |
Operating Leases Rolling Maturity | ||
2020 | 683 | |
2021 | 839 | |
2022 | 426 | |
2023 | 293 | |
2024 | 281 | |
Thereafter | 71 | |
Total minimum lease payments | 2,593 | 4,852 |
Less: amount representing interest | (287) | |
Present value of minimum lease payments | $ 2,306 | $ 4,852 |
Leases - Year End Maturity (Det
Leases - Year End Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Finance Leases | ||
2020 | $ 993 | |
2021 | 1,000 | |
2022 | 1,013 | |
2023 | 1,024 | |
2024 | 1,032 | |
Thereafter | 11,623 | |
Total minimum lease payments | $ 16,106 | 16,685 |
Less: amount representing interest | (8,210) | (8,706) |
Total Finance lease liabilities | 7,896 | 7,979 |
Operating Leases | ||
2020 | 2,542 | |
2021 | 1,254 | |
2022 | 460 | |
2023 | 277 | |
2024 | 259 | |
Thereafter | 60 | |
Total minimum lease payments | 2,593 | 4,852 |
Less: amount representing interest | (287) | |
Present value of minimum lease payments | $ 2,306 | $ 4,852 |
Foreign Currency Forward Cont_3
Foreign Currency Forward Contracts (Details) - Selling, General and Administrative Expenses - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Foreign currency balance sheet hedging | ||||
Foreign currency net gain (loss) | $ 223 | $ 105 | $ (369) | $ (52) |
Foreign Currency Transaction | ||||
Foreign currency balance sheet hedging | ||||
Foreign currency net gain (loss) | 724 | (93) | (347) | 247 |
Foreign Exchange Forward | ||||
Foreign currency balance sheet hedging | ||||
Foreign currency net gain (loss) | $ (501) | $ 198 | $ (22) | $ (299) |