Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MTRX | |
Entity Registrant Name | MATRIX SERVICE CO | |
Entity Central Index Key | 0000866273 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 26,807,203 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 358,887 | $ 245,645 | $ 1,017,966 | $ 798,466 |
Cost of revenues | 321,981 | 230,754 | 929,753 | 727,981 |
Gross profit | 36,906 | 14,891 | 88,213 | 70,485 |
Selling, general and administrative expenses | 24,112 | 20,753 | 67,672 | 63,852 |
Operating income (loss) | 12,794 | (5,862) | 20,541 | 6,633 |
Other income (expense): | ||||
Interest expense | (301) | (643) | (954) | (2,080) |
Interest income | 307 | 130 | 863 | 234 |
Other | 58 | 370 | 582 | 384 |
Income (loss) before income tax expense | 12,858 | (6,005) | 21,032 | 5,171 |
Provision (benefit) for federal, state and foreign income taxes | 3,925 | (852) | 5,862 | 1,968 |
Net income (loss) | $ 8,933 | $ (5,153) | $ 15,170 | $ 3,203 |
Basic earnings per common share (US$ per share) | $ 0.33 | $ (0.19) | $ 0.56 | $ 0.12 |
Diluted earnings per common share (US$ per share) | $ 0.33 | $ (0.19) | $ 0.55 | $ 0.12 |
Weighted average common shares outstanding: | ||||
Basic (shares) | 26,788 | 26,817 | 26,918 | 26,747 |
Diluted (shares) | 27,417 | 26,817 | 27,587 | 27,054 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 8,933 | $ (5,153) | $ 15,170 | $ 3,203 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gain (loss) (net of tax expense (benefit) of $97 and $(79) for the three and nine months ended March 31, 2019, respectively, and $(8) and $28 for the three and nine months ended March 31, 2018, respectively) | 216 | (710) | (452) | 826 |
Comprehensive income (loss) | $ 9,149 | $ (5,863) | $ 14,718 | $ 4,029 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 97 | $ (8) | $ (79) | $ 28 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 49,676 | $ 64,057 |
Accounts receivable, less allowances (March 31, 2019— $938 and June 30, 2018—$6,327) | 274,904 | 203,388 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 75,353 | 76,632 |
Inventories | 8,637 | 5,152 |
Income taxes receivable | 489 | 3,359 |
Other current assets | 6,171 | 4,458 |
Total current assets | 415,230 | 357,046 |
Property, plant and equipment at cost: | ||
Land and buildings | 41,091 | 40,424 |
Construction equipment | 90,759 | 89,036 |
Transportation equipment | 49,719 | 48,339 |
Office equipment and software | 43,036 | 41,236 |
Construction in progress | 5,860 | 1,353 |
Property, plant and equipment at cost, gross | 230,465 | 220,388 |
Accumulated depreciation | (154,653) | (147,743) |
Property, plant and equipment at cost, net | 75,812 | 72,645 |
Goodwill | 93,316 | 96,162 |
Other intangible assets | 20,282 | 22,814 |
Deferred income taxes | 6,169 | 4,848 |
Other assets | 20,624 | 4,518 |
Total assets | 631,433 | 558,033 |
Current liabilities: | ||
Accounts payable | 110,502 | 79,439 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 122,235 | 120,740 |
Accrued wages and benefits | 41,823 | 24,375 |
Accrued insurance | 9,459 | 9,080 |
Income taxes payable | 907 | 7 |
Other accrued expenses | 4,618 | 4,824 |
Total current liabilities | 289,544 | 238,465 |
Deferred income taxes | 3,391 | 429 |
Borrowings under senior secured revolving credit facility | 2,172 | 0 |
Other liabilities | 232 | 296 |
Total liabilities | 295,339 | 239,190 |
Commitments and contingencies | ||
Matrix Service Company stockholders' equity: | ||
Common stock—$.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of March 31, 2019 and June 30, 2018; 26,803,422 and 26,853,823 shares outstanding as of March 31, 2019 and June 30, 2018 | 279 | 279 |
Additional paid-in capital | 134,836 | 132,198 |
Retained earnings | 226,664 | 211,494 |
Accumulated other comprehensive loss | (7,863) | (7,411) |
Matrix Service Company stockholders' equity | 353,916 | 336,560 |
Less: Treasury stock, at cost — 1,084,795 shares as of March 31, 2019, and 1,034,394 shares as of June 30, 2018 | (17,822) | (17,717) |
Total stockholders' equity | 336,094 | 318,843 |
Total liabilities and stockholders’ equity | $ 631,433 | $ 558,033 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Statement Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowances | $ 938 | $ 6,327 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 27,888,217 | 27,888,217 |
Common stock, shares outstanding | 26,803,422 | 26,853,823 |
Treasury stock, shares | 1,084,795 | 1,034,394 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net income (loss) | $ 15,170 | $ 3,203 |
Adjustments to reconcile net income to net cash provided (used) by operating activities, net of effects from acquisitions and disposals: | ||
Depreciation and amortization | 13,623 | 15,546 |
Stock-based compensation expense | 9,045 | 6,488 |
Deferred income tax | 1,562 | 2,646 |
Gain on disposal of business (Note 3) | (427) | 0 |
Gain on sale of property, plant and equipment | (810) | (511) |
Provision for uncollectible accounts | (105) | 12 |
Other | 308 | 295 |
Changes in operating assets and liabilities increasing (decreasing) cash, net of effects from acquisitions and disposals: | ||
Accounts receivable | (71,436) | 19,831 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 921 | 24,195 |
Inventories | (3,492) | (1,602) |
Other assets and liabilities | (14,750) | (1,717) |
Accounts payable | 30,092 | (37,697) |
Billings on uncompleted contracts in excess of costs and estimated earnings | 1,626 | 13,499 |
Accrued expenses | 17,557 | 1,714 |
Net cash provided (used) by operating activities | (1,116) | 45,902 |
Investing activities: | ||
Acquisition of property, plant and equipment | (13,721) | (6,150) |
Acquisition, net of cash acquired | 0 | (1,687) |
Proceeds from disposal of business (Note 3) | 3,885 | |
Proceeds from asset sales | 1,059 | 857 |
Net cash used by investing activities | (8,777) | (6,980) |
Financing activities: | ||
Advances under senior revolving credit facility | 12,430 | 85,317 |
Repayments of advances under senior revolving credit facility | (10,133) | (120,862) |
Payments of debt issuance costs | 0 | (364) |
Open market purchase of treasury shares | (5,190) | 0 |
Issuances of common stock | 128 | 0 |
Proceeds from issuance of common stock under employee stock purchase plan | 235 | 224 |
Repurchase of common stock for payment of statutory taxes due on equity-based compensation | (1,685) | (627) |
Net cash used by financing activities | (4,215) | (36,312) |
Effect of exchange rate changes on cash and cash equivalents | (273) | 470 |
Increase (decrease) in cash and cash equivalents | (14,381) | 3,080 |
Cash and cash equivalents, beginning of period | 64,057 | 43,805 |
Cash and cash equivalents, end of period | 49,676 | 46,885 |
Supplemental disclosure of cash flow information: | ||
Income taxes | 742 | 1,231 |
Interest | 1,340 | 2,065 |
Non-cash investing and financing activities: | ||
Purchases of property, plant and equipment on account | $ 1,100 | $ 136 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2017 | $ 321,809 | $ 279 | $ 128,419 | $ 222,974 | $ (22,539) | $ (7,324) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 3,203 | 0 | 0 | 3,203 | 0 | 0 |
Other comprehensive income (loss) | 826 | 0 | 0 | 0 | 0 | 826 |
Treasury shares sold to Employee Stock Purchase Plan | (224) | 0 | 110 | 0 | (334) | 0 |
Issuance of deferred shares | 0 | 0 | (4,467) | 0 | 4,467 | 0 |
Other Treasury Share Purchases | (627) | 0 | 0 | 0 | (627) | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2018 | 331,923 | 279 | 130,330 | 226,177 | (18,365) | (6,498) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 6,488 | 0 | 6,488 | 0 | 0 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2017 | 335,586 | 279 | 128,235 | 231,330 | (18,470) | (5,788) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (5,153) | 0 | 0 | (5,153) | 0 | 0 |
Other comprehensive income (loss) | (710) | 0 | 0 | 0 | 0 | (710) |
Treasury shares sold to Employee Stock Purchase Plan | 82 | 0 | 1 | 0 | 81 | 0 |
Issuance of deferred shares | 0 | 0 | (39) | 0 | 39 | 0 |
Other Treasury Share Purchases | (15) | 0 | 0 | 0 | (15) | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2018 | 331,923 | 279 | 130,330 | 226,177 | (18,365) | (6,498) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 2,133 | 0 | 2,133 | 0 | 0 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2018 | 318,843 | 279 | 132,198 | 211,494 | (17,717) | (7,411) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 15,170 | 0 | 15,170 | |||
Other comprehensive income (loss) | (452) | 0 | 0 | 0 | 0 | (452) |
Open market purchases of treasury shares | 5,190 | 0 | 0 | 0 | 5,190 | 0 |
Treasury shares sold to Employee Stock Purchase Plan | 235 | 0 | 25 | 0 | 210 | 0 |
Exercise of stock options | 128 | 0 | (126) | 0 | 254 | 0 |
Issuance of deferred shares | 0 | 0 | (6,306) | 0 | 6,306 | 0 |
Other Treasury Share Purchases | (1,685) | 0 | 0 | 0 | (1,685) | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2019 | 336,094 | 279 | 134,836 | 226,664 | (17,822) | (7,863) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 9,045 | 0 | 9,045 | 0 | 0 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2018 | 323,590 | 279 | 131,889 | 217,731 | (18,230) | (8,079) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 8,933 | 0 | 0 | 8,933 | 0 | 0 |
Other comprehensive income (loss) | 216 | 0 | 0 | 0 | 0 | 216 |
Treasury shares sold to Employee Stock Purchase Plan | 82 | 0 | 6 | 0 | 76 | 0 |
Issuance of deferred shares | 0 | 0 | (366) | 0 | 366 | 0 |
Other Treasury Share Purchases | (34) | 0 | 0 | 0 | (34) | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Mar. 31, 2019 | 336,094 | 279 | 134,836 | 226,664 | (17,822) | (7,863) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 3,307 | $ 0 | $ 3,307 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Treasury Stock, Shares, Acquired | 0 | 0 | 310,532 | 0 |
Employee Stock Purchase Plan, shares | 4,584 | 4,560 | 12,031 | 16,843 |
Exercise of stock options, shares | 0 | 0 | 12,500 | 0 |
Issuance of deferred shares, shares | 22,133 | 2,250 | 314,711 | 253,124 |
Other treasury shares purchases, shares | 1,693 | 868 | 79,111 | 52,911 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements include the accounts of Matrix Service Company (“Matrix”, “we”, “our”, “us”, “its” or the “Company”) and its subsidiaries, unless otherwise indicated. Intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission and do not include all information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. The information furnished reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair statement of the results of operations, cash flows and financial position for the interim periods presented. The accompanying condensed financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2018 , included in the Company’s Annual Report on Form 10-K for the year then ended. The results of operations for the nine-month period ended March 31, 2019 may not necessarily be indicative of the results of operations for the full year ending June 30, 2019 . Significant Accounting Policies We have updated our revenue recognition accounting policy as a result of adopting the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) on July 1, 2018 . Our other significant accounting policies are detailed in "Note 1 - Summary of Significant Accounting Policies" of our Annual Report on Form 10-K for the year ended June 30, 2018. Revenue Recognition Adoption of New Revenue Recognition Standard The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) on July 1, 2018. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most previous revenue recognition guidance, including industry-specific guidance, and is applicable to all of the Company's contracts with customers. The core principle of the revenue model is that "an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services." The Company used the modified retrospective method of application. Under the modified retrospective method, revenue recognized on completed contracts is not restated, however contracts in progress are accounted for as if they were under this new standard at inception. Any difference between historical revenue and revenue under the new standard is recorded as a cumulative effect adjustment to retained earnings as of the date of adoption. The cumulative impact of adopting Topic 606 was immaterial and did not require an adjustment to retained earnings. See Note 2 – Revenue for new disclosures required as a result of adopting Topic 606. General Information about our Contracts with Customers Our revenues come from contracts to provide engineering, procurement, fabrication and construction, repair and maintenance and other services. Our engineering, procurement and fabrication and construction services are usually provided in association with capital projects, which commonly are fixed price contracts and are billed based on project milestones. Our repair and maintenance services typically are cost reimbursable or time and material based contracts and are billed monthly or, for projects of short duration, at the conclusion of the project. The elapsed time from award to completion of performance may be in excess of one year for capital projects. Step 1: Contract Identification We do not recognize revenue unless we have identified a contract with a customer. A contract with a customer exists when it has approval and commitment from both parties, the rights and obligations of the parties are identified, payment terms are identified, the contract has commercial substance, and collectibility is probable. We also evaluate whether a contract should be combined with other contracts and accounted for as one single contract. This evaluation requires judgment and could change the timing of the amount of revenue and profit recorded for a given period. Step 2: Identify Performance Obligations Next, we identify each performance obligation in the contract. A performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services to the customer. Revenue is recognized separately for each performance obligation in the contract. Many of our contracts have one clearly identifiable performance obligation. However, many of our contracts provide the customer an integrated service that includes two or more of the following services: engineering, procurement, fabrication, construction, repair and maintenance services. For these contracts, we do not consider the integrated services to be distinct within the context of the contract when the separate scopes of work combine into a single commercial objective or capability for the customer. Accordingly, we generally identify one performance obligation in our contracts. The determination of the number of performance obligations in a contract requires significant judgment and could change the timing of the amount of revenue recorded for a given period. Step 3: Determine Contract Price After determining the performance obligations in the contract, we determine the contract price. The contract price is the amount of consideration we expect to receive from the customer for completing the performance obligation(s). In a fixed price contract, the contract price is a single lump-sum amount. In reimbursable and time and materials based contracts, the contract price is determined by the agreed upon rates or reimbursements for time and materials expended in completing the performance obligation(s) in the contract. A number of our contracts contain various cost and performance incentives and penalties that can either increase or decrease the contract price. These variable consideration amounts are generally earned or incurred based on certain performance metrics, most commonly related to project schedule or cost targets. We estimate variable consideration at the most likely amount of additional consideration to be received (or paid in the case of penalties), provided that meeting the variable condition is probable. We include estimated amounts of variable consideration in the contract price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the contract price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. We reassess the amount of variable consideration each accounting period until the uncertainty associated with the variable consideration is resolved. Changes in the assessed amount of variable consideration are accounted for prospectively as a cumulative adjustment to revenue recognized in the current period. Step 4: Assign Contract Price to Performance Obligations After determining the contract price, we assign such price to the performance obligation(s) in the contract. If a contract has multiple performance obligations, we assign the contract price to each performance obligation based on the stand-alone selling prices of the distinct services that comprise each performance obligation. Step 5: Recognize Revenue as Performance Obligations are Satisfied We record revenue for contracts with our customers as we satisfy the contracts' performance obligations. We recognize revenue on performance obligations associated with fixed price contracts for engineering, procurement and construction services over time since these services create or enhance assets the customer controls as they are being created or enhanced. We measure progress of satisfying these performance obligations by using the percentage-of-completion method, which is based on costs incurred to date compared to the total estimated costs at completion, since it best depicts the transfer of control of assets being created or enhanced to the customer. We recognize revenue over time for reimbursable and time and material based repair and maintenance contracts since the customer simultaneously receives and consumes the benefit of those services as we perform work under the contract. As a practical expedient allowed under ASC 606, we record revenue for these contracts in the amount to which we have a right to invoice for the services performed provided that we have a right to consideration from the customer in an amount that corresponds directly with the value of the performance completed to date. Costs incurred may include direct labor, direct materials, subcontractor costs and indirect costs, such as salaries and benefits, supplies and tools, equipment costs and insurance costs. Indirect costs are charged to projects based upon direct costs and overhead allocation rates per dollar of direct costs incurred or direct labor hours worked. Typically, customer contracts will include standard warranties that provide assurance that products and services will function as expected. The Company does not sell separate warranties. We have numerous contracts that are in various stages of completion which require estimates to determine the forecasted costs at completion. Due to the nature of the work left to be performed on many of our contracts, the estimation of total cost at completion for fixed price contracts is complex, subject to many variables and requires significant judgment. Estimates of total cost at completion are made each period and changes in these estimates are accounted for prospectively as cumulative adjustments to revenue recognized in the current period. If estimates of costs to complete fixed price contracts indicate a loss, a provision is made through a contract write-down for the total loss anticipated. Change Orders Contracts are often modified through change orders, which are changes to the agreed upon scope of work. Most of our change orders, which may be priced or unpriced, are for goods or services that are not distinct from the existing contract due to the significant integration of services provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a change order on the contract price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. For unpriced change orders, we estimate the increase or decrease to the contract price using the variable consideration method described in the Step 3: Determine Contract Price paragraph above. Unpriced change orders are more fully discussed in Note 7 - Commitments and Contingencies. Claims Sometimes we seek claims for amounts in excess of the contract price for delays, errors in specifications and designs, contract terminations, change orders in dispute or other causes of additional costs incurred by us. Recognition of amounts as additional contract price related to claims is appropriate only if there is a legal basis for the claim. The determination of our legal basis for a claim requires significant judgment. We estimate the change to the contract price using the variable consideration method described in the Step 3: Determine Contract Price paragraph above. Claims are more fully discussed in Note 7 - Commitments and Contingencies. Recently Issued Accounting Standards Accounting Standards Update 2016-02, Leases (Topic 842) On February 25, 2016, the FASB issued ASU 2016-02 that amends accounting for leases. Under the new guidance, lessees will recognize the following for all leases (with the exception of short-term leases) at the lease commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company plans to apply the new leases standard using the modified retrospective method, which recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the amendments is permitted, but we do not plan to do so at this time. We do not expect the ASU to have a material impact to the amount or pattern of recognition of the Company's earnings or cash flows. However, we do expect the ASU to have a material impact to the Company's balance sheet. As of June 30, 2018, the Company had $33.1 million of future minimum lease payments under non-cancelable operating leases, primarily for facilities. See Note 8 of Item 8. Financial Statements and Supplementary Data in our 2018 Form 10-K for more information about the timing and amount of future operating lease payments. We also have month-to-month rentals of equipment that are used directly on our job sites. At this time, we believe most of these rentals will not be capitalized; however our analysis is not yet complete and we cannot yet quantify the impact to our balance sheet. Our conclusions are preliminary and could change as we continue with the implementation. Accounting Standards Update 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments On June 16, 2016, the FASB issued ASU 2016-13, which will change how the Company accounts for credit losses, including those related to its trade accounts receivable. The amendments in this update require a financial asset (or a group of financial assets) to be presented at the net amount expected to be collected. The income statement will reflect any increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. Current GAAP delays the recognition of the full amount of credit losses until the loss is probable of occurring. The amendments in this update eliminate the probable initial recognition threshold and, instead, reflect the Company's current estimate of all expected credit losses. In addition, current guidance limits the information the Company may consider in measuring a credit loss to its past events and current conditions. The amendments in this update broaden the information the Company may consider in developing its expected credit loss estimate to include forecasted information. The amendments in this update are effective for the Company on July 1, 2020 and the Company may early adopt on July 1, 2019, but does not plan to do so at this time. The Company must apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. At this time, the Company does not expect this update to have a material impact to its estimate of the allowance for uncollectible accounts. Accounting Standards Update 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. Entities should apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The Company adopted ASU 2017-09 on July 1, 2018, which did not have a material impact on our financial position, results of operations or cash flows. |
Revenue Revenue (Notes)
Revenue Revenue (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Remaining Performance Obligations The Company had $805.3 million of remaining performance obligations yet to be satisfied as of March 31, 2019 . The Company expects to recognize approximately $714.2 million of its remaining performance obligations as revenue within the next twelve months. Contract Balances Contract terms with customers include the timing of billing and payment, which usually differs from the timing of revenue recognition. As a result, we carry contract assets and liabilities in our balance sheet. These contract assets and liabilities are calculated on a contract-by-contract basis and reported on a net basis at the end of each period and are classified as current. We present our contract assets in the balance sheet as Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts ("CIE"). CIE consists of revenue recognized in excess of billings. We present our contract liabilities in the balance sheet as Billings on Uncompleted Contracts in Excess of Costs and Estimated Earnings ("BIE"). BIE consists of advance payments and billings in excess of revenue recognized. The following table provides information about CIE and BIE: March 31, June 30, Change (in thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 75,353 $ 76,632 $ (1,279 ) Billings on uncompleted contracts in excess of costs and estimated earnings (122,235 ) (120,740 ) (1,495 ) Net contract liabilities $ (46,882 ) $ (44,108 ) $ (2,774 ) The difference between the beginning and ending balances of the Company's CIE and BIE primarily results from the timing of revenue recognized relative to its billings. The amount of revenue recognized during the nine months ended March 31, 2019 that was included in the prior period BIE balance was $120.7 million . This revenue consists primarily of work performed during the period on contracts with customers that had advance billings. Gross amounts of contact assets and liabilities on uncompleted contracts are as follows: March 31, June 30, (in thousands) Costs incurred and estimated earnings recognized on uncompleted contracts $ 1,765,137 $ 2,081,799 Billings on uncompleted contracts 1,812,019 2,125,907 Net contract liabilities $ (46,882 ) $ (44,108 ) Progress billings in accounts receivable at March 31, 2019 and June 30, 2018 included retentions to be collected within one year of $20.8 million and $25.9 million , respectively. Contract retentions collectible beyond one year are included in other assets in the Condensed Consolidated Balance Sheet and totaled $17.1 million as of March 31, 2019 and $2.6 million as of June 30, 2018 . Disaggregated Revenue Revenue disaggregated by reportable segment is presented in Note 9 - Segment Information. The following table presents revenue disaggregated by the geographic area where the work was performed: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) United States $ 345,953 $ 226,089 $ 985,603 $ 706,934 Canada 10,691 18,056 27,486 87,911 Other international 2,243 1,500 4,877 3,621 Total Revenue $ 358,887 $ 245,645 $ 1,017,966 $ 798,466 |
Disposals (Notes)
Disposals (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Disposals | Disposals Sale of Process Heating Business In August 2018, the Company sold non-core assets associated with a business that marketed process heating equipment for $3.9 million in cash, including $0.2 million of customary final post-closing adjustments paid in October 2018. The Company recognized a gain of $0.4 million on the sale, which was included in Other in the Condensed Consolidated Statements of Income. The revenues and operating results of the business, which were included in the Oil Gas & Chemical segment, were not material. |
Intangible Assets Including Goo
Intangible Assets Including Goodwill (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Including Goodwill | Intangible Assets Including Goodwill Goodwill The changes in the carrying value of goodwill by segment are as follows: Electrical Infrastructure Oil Gas & Chemical Storage Solutions Industrial Total (In thousands) Net balance at June 30, 2018 $ 24,826 $ 33,604 $ 16,760 $ 20,972 $ 96,162 Disposal of business (1) — (2,775 ) — — (2,775 ) Translation adjustment (2) (19 ) — (49 ) (3 ) (71 ) Net balance at March 31, 2019 $ 24,807 $ 30,829 $ 16,711 $ 20,969 $ 93,316 (1) In August 2018, the Company disposed of a business that marketed process heating equipment. See Note 3 - Disposals for more information about the disposal. The business disposed of constituted its own reporting unit and the amount of goodwill written off was all of the goodwill assigned to that reporting unit. None of the goodwill was considered impaired since the Company recorded a gain on the disposal. (2) The translation adjustments relate to the periodic translation of Canadian Dollar and South Korean Won denominated goodwill recorded as a part of prior acquisitions in Canada and South Korea, in which the local currency was determined to be the functional currency. The Company tests its goodwill for impairment annually in May. The Company did not note any impairment indicators as of March 31, 2019 . However, if our market view of project opportunities or gross margins deteriorates, then the annual goodwill impairment test could result in the recognition of an impairment to goodwill. Other Intangible Assets Information on the carrying value of other intangible assets is as follows: At March 31, 2019 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 10 to 15 $ 2,579 $ (1,735 ) $ 844 Customer-based 6 to 15 38,491 (19,074 ) 19,417 Non-compete agreements 4 1,453 (1,432 ) 21 Total amortizing intangible assets $ 42,523 $ (22,241 ) $ 20,282 At June 30, 2018 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 9 to 15 $ 2,579 $ (1,603 ) $ 976 Customer-based 6 to 15 38,562 (16,763 ) 21,799 Non-compete agreements 4 1,453 (1,414 ) 39 Total amortizing intangible assets $ 42,594 $ (19,780 ) $ 22,814 Amortization expense totaled $0.8 million and $2.5 million during the three and nine months ended March 31, 2019 and $0.9 million and $3.9 million during the three and nine months ended March 31, 2018 , respectively. We estimate that the remaining amortization expense was related to March 31, 2019 amortizing intangible assets will be as follows (in thousands): Period ending: Remainder of Fiscal 2019 $ 936 Fiscal 2020 3,735 Fiscal 2021 3,716 Fiscal 2022 2,875 Fiscal 2023 2,424 Fiscal 2024 2,122 Thereafter 4,474 Total estimated remaining amortization expense at March 31, 2019 $ 20,282 |
Debt (Notes)
Debt (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt On February 8, 2017, the Company entered into the Fourth Amended and Restated Credit Agreement (the "Credit Agreement"), by and among the Company and certain foreign subsidiaries, as Borrowers, various subsidiaries of the Company, as Guarantors, JPMorgan Chase Bank, N.A., as Administrative Agent, Sole Lead Arranger and Sole Bookrunner, and the other Lenders party thereto. The Credit Agreement provides for a five-year senior secured revolving credit facility of $300.0 million that expires February 8, 2022 . The credit facility may be used for working capital, acquisitions, capital expenditures, issuances of letters of credit and other lawful purposes. The Credit Agreement includes the following covenants and borrowing limitations: • Our Leverage Ratio, determined as of the end of each fiscal quarter, may not exceed 3.00 to 1.00 . • We are required to maintain a Fixed Charge Coverage Ratio, determined as of the end of each fiscal quarter, greater than or equal to 1.25 to 1.00 . • Asset dispositions (other than dispositions in which all of the net cash proceeds therefrom are reinvested into the Company and dispositions of inventory and obsolete or unneeded equipment in the ordinary course of business) are limited to $20.0 million per 12-month period. The credit facility includes a sub-facility for revolving loans denominated in Australian Dollars, Canadian Dollars, Euros and Pounds Sterling in an aggregate amount not to exceed the U.S. Dollar equivalent of $75.0 million and a $200.0 million sublimit for letters of credit. Each revolving borrowing under the Credit Agreement will bear interest at a rate per annum equal to: • The ABR or the Adjusted LIBO Rate, in the case of revolving loans denominated in U.S. Dollars; • The Canadian Prime Rate or the CDOR rate, in the case of revolving loans denominated in Canadian Dollars; • The Adjusted LIBO Rate, in the case of revolving loans denominated in Pounds Sterling or Australian Dollars; or • The EURIBO Rate, in the case of revolving loans denominated in Euros, in each case, plus the Applicable Margin, which is based on the Company's Leverage Ratio. The Applicable Margin on ABR loans ranges between 0.625% and 1.625% . The Applicable Margin for Adjusted LIBO, EURIBO and CDOR loans ranges between 1.625% and 2.625% and the Applicable Margin for Canadian Prime Rate loans ranges between 2.125% and 3.125% . The unused credit facility fee is between 0.25% and 0.45% based on the Leverage Ratio. The Credit Agreement includes a Leverage Ratio covenant, which provides that Consolidated Funded Indebtedness, as of the end of any fiscal quarter, may not exceed 3.0 times Consolidated EBITDA, as defined in the Credit Agreement, or "Covenant EBITDA," over the previous four quarters. For the four quarters ended March 31, 2019 , Covenant EBITDA was $51.4 million . Consolidated Funded Indebtedness at March 31, 2019 was $23.9 million . Availability under the senior secured revolving credit facility at March 31, 2019 was as follows: March 31, June 30, (In thousands) Senior secured revolving credit facility $ 300,000 $ 300,000 Capacity constraint due to the Leverage Ratio 145,812 189,741 Capacity under the credit facility 154,188 110,259 Borrowings outstanding 2,172 — Letters of credit 21,694 37,073 Availability under the senior secured revolving credit facility $ 130,322 $ 73,186 At March 31, 2019 , the Company was in compliance with all affirmative, negative, and financial covenants under the Credit Agreement. |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Tax Cuts and Jobs Act The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act makes broad and complex changes to the U.S. tax code, which have affected our current results and will affect our future results. The following are significant changes in the tax code that became effective for the Company beginning July 1, 2018: • eliminating the deduction for domestic production activity; • limiting the annual deduction for business interest; • taxing global intangible low-tax income; • allowing a deduction for domestically earned foreign intangible income; and • establishing a new base erosion and anti-abuse tax on payments between U.S. taxpayers and foreign related parties. We completed the accounting for the Act as of December 31, 2018 and accounted for the tax effect of the Act as follows: Deferred Taxes Remeasurement We remeasured our domestic deferred tax assets and liabilities based on the rates at which we expect them to reverse in the future. At June 30, 2018, we completed the remeasurement of our domestic deferred tax assets and liabilities which resulted in an income tax benefit of $0.5 million included in fiscal 2018. One-time Transition Tax on Unrepatriated Earnings of Certain Foreign Subsidiaries The Act includes a one-time transition tax based on our total post-1986 foreign earnings and profits ("E&P") which we have previously deferred from U.S. income taxes. Based on our completed calculations surrounding this tax, we incurred no additional tax related to this provision since our foreign subsidiaries have overall negative E&P. Global Intangible Low-Tax Income (“GILTI”) The Act creates a new requirement that certain income earned by controlled foreign corporations must be included currently in the gross income of the U.S. shareholder. Under U.S. GAAP, we have made an accounting policy election to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred instead of factoring such amounts into the measurement of our deferred taxes. For fiscal 2019, we project to have no U.S. taxable income inclusion related to GILTI. Valuation Allowances on Foreign Tax Credit Carryforwards We continue to assess our ability to utilize our foreign tax credits in light of the lower U.S. federal income tax rate. As of March 31, 2019, we had $1.5 million of foreign tax credit carryforwards, the majority of which relate to our branch operations in Canada. Future operations of our Canadian branches will impact our ability to utilize these credits. During this quarter we concluded that we are unlikely to realize the benefit of foreign tax credits generated by our Canadian operations, which expire in fiscal 2021. Therefore, we recorded a valuation allowance of $0.6 million . During our second fiscal quarter, we placed a valuation on $0.2 million of credits expiring in fiscal 2019 and fiscal 2020. The remaining $0.7 million of credits will expire in fiscal 2023 through fiscal 2025 if not utilized. Indefinite Reinvestment Assertion We do not provide for outside basis differences under the indefinite reinvestment assertion of ASC 740-30. Based on our analysis of the Act, we do not anticipate the need to provide for additional taxes for basis differences or withholding taxes on remitted foreign earnings in the immediate future. Effective Tax Rate Our effective tax rates for the three and nine months ended March 31, 2019 were 30.5% and 27.9% , respectively, compared to 14.2% and 38.1% for the same periods a year ago. We expected our fiscal 2019 effective tax rate to be approximately 27.0% . The effective tax rates for both periods in fiscal 2019 were negatively impacted by a valuation allowance of $0.6 million placed on foreign tax credits generated by our operations in Canada, which we believe will not be utilized prior to their expiration. The effective tax rate for the nine months ended March 31, 2019 was positively impacted by $0.3 million of excess tax benefits related to the vesting of stock-based compensation. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance Reserves The Company maintains insurance coverage for various aspects of its operations. However, exposure to potential losses is retained through the use of deductibles, self-insured retentions and coverage limits. Typically, our contracts require us to indemnify our customers for injury, damage or loss arising from the performance of our services and provide warranties for materials and workmanship. The Company may also be required to name the customer as an additional insured up to the limits of insurance available, or we may be required to purchase special insurance policies or surety bonds for specific customers or provide letters of credit in lieu of bonds to satisfy performance and financial guarantees on some projects. Matrix maintains a performance and payment bonding line sufficient to support the business. The Company generally requires its subcontractors to indemnify the Company and the Company’s customer and name the Company as an additional insured for activities arising out of the subcontractors’ work. We also require certain subcontractors to provide additional insurance policies, including surety bonds in favor of the Company, to secure the subcontractors’ work or as required by the subcontract. There can be no assurance that our insurance and the additional insurance coverage provided by our subcontractors will fully protect us against a valid claim or loss under the contracts with our customers. Unpriced Change Orders and Claims Costs and estimated earnings in excess of billings on uncompleted contracts included revenues for unpriced change orders and claims of $11.5 million at March 31, 2019 and $15.0 million at June 30, 2018 . Generally, collection of amounts related to unpriced change orders and claims is expected within twelve months. However, since customers may not pay these amounts until final resolution of related claims, collection of these amounts may extend beyond one year. Other The Company and its subsidiaries are participants in various legal actions. It is the opinion of management that none of the known legal actions will have a material impact on the Company’s financial position, results of operations or liquidity. |
Earnings per Common Share (Note
Earnings per Common Share (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share (“Basic EPS”) is calculated based on the weighted average shares outstanding during the period. Diluted earnings per share (“Diluted EPS”) includes the dilutive effect of stock options and nonvested deferred shares. The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands, except per share data) Basic EPS: Net income (loss) $ 8,933 $ (5,153 ) $ 15,170 $ 3,203 Weighted average shares outstanding 26,788 26,817 26,918 26,747 Basic earnings (loss) per share $ 0.33 $ (0.19 ) $ 0.56 $ 0.12 Diluted EPS: Weighted average shares outstanding – basic 26,788 26,817 26,918 26,747 Dilutive stock options 27 — 28 29 Dilutive nonvested deferred shares 602 — 641 278 Diluted weighted average shares 27,417 26,817 27,587 27,054 Diluted earnings (loss) per share $ 0.33 $ (0.19 ) $ 0.55 $ 0.12 The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Stock options — 37 — — Nonvested deferred shares 188 459 152 276 Total antidilutive securities 188 496 152 276 |
Segment Information (Notes)
Segment Information (Notes) | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate our business through four reportable segments: Electrical Infrastructure; Oil Gas & Chemical; Storage Solutions; and Industrial. The Electrical Infrastructure segment consists of high voltage services provided to investor owned utilities, including construction of new substations, upgrades of existing substations, short-run transmission line installations, distribution upgrades and maintenance, as well as emergency and storm restoration services. We also provide construction and maintenance services to a variety of power generation facilities, such as combined cycle plants and other natural gas fired power stations. The Oil Gas & Chemical segment serves customers primarily in the downstream and midstream petroleum industries who are engaged in refining crude oil and processing, fractionating, and marketing of natural gas and natural gas liquids. We also perform work in the petrochemical, upstream petroleum, and sulfur extraction, recovery and processing markets. Our services include turnarounds, plant maintenance, engineering and capital construction. We also offer industrial cleaning services including hydro-blasting, hydro-excavating, advanced chemical cleaning and vacuum services. The Storage Solutions segment consists of work related to aboveground storage tanks ("AST") and terminals. Also included in this segment are cryogenic and other specialty storage tanks and terminals including liquefied natural gas, liquid nitrogen/liquid oxygen, liquid petroleum, other specialty vessels such as spheres as well as marine structures and truck and rail loading/offloading facilities. Our services include engineering, fabrication and construction, and maintenance and repair, which includes planned and emergency services for both tanks and full terminals. Finally, we offer AST products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems and floating roof seals. The Industrial segment consists of work for integrated iron and steel companies, major mining and minerals companies engaged primarily in the extraction of copper, as well as companies in other industries, including aerospace and defense, cement, and agriculture and grain. Our services include engineering, fabrication and construction, and maintenance and repair, which includes planned and emergency services. We also design instrumentation and control systems and offer specialized expertise in the design and construction of bulk material handling systems. The Company evaluates performance and allocates resources based on operating income. The accounting policies of the reportable segments are the same as those described in the Summary of Significant Accounting Policies footnote included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018 . Intersegment sales and transfers are recorded at cost; therefore, no intersegment profit or loss is recognized. Segment assets consist primarily of cash and cash equivalents, accounts receivable, CIE/BIE, property, plant and equipment, goodwill and other intangible assets. Results of Operations (In thousands) Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Gross revenues Electrical Infrastructure $ 60,669 $ 58,378 $ 163,543 $ 203,201 Oil Gas & Chemical 83,414 68,689 246,497 242,946 Storage Solutions 134,822 78,859 374,787 221,664 Industrial 81,283 41,976 237,225 134,507 Total gross revenues $ 360,188 $ 247,902 $ 1,022,052 $ 802,318 Less: Inter-segment revenues Oil Gas & Chemical $ 870 $ 299 $ 2,175 $ 544 Storage Solutions 431 1,958 1,911 3,307 Industrial — — — 1 Total inter-segment revenues $ 1,301 $ 2,257 $ 4,086 $ 3,852 Consolidated revenues Electrical Infrastructure $ 60,669 $ 58,378 $ 163,543 $ 203,201 Oil Gas & Chemical 82,544 68,390 244,322 242,402 Storage Solutions 134,391 76,901 372,876 218,357 Industrial 81,283 41,976 237,225 134,506 Total consolidated revenues $ 358,887 $ 245,645 $ 1,017,966 $ 798,466 Gross profit Electrical Infrastructure $ 6,210 $ 1,759 $ 13,155 $ 15,567 Oil Gas & Chemical 10,736 4,744 25,518 27,550 Storage Solutions 14,575 4,166 35,275 17,004 Industrial 5,385 4,222 14,265 10,364 Total gross profit $ 36,906 $ 14,891 $ 88,213 $ 70,485 Operating income (loss) Electrical Infrastructure $ 2,882 $ (2,422 ) $ 3,977 $ 2,234 Oil Gas & Chemical 4,796 (648 ) 8,895 8,684 Storage Solutions 3,730 (4,025 ) 5,371 (6,709 ) Industrial 1,386 1,233 2,298 2,424 Total operating income (loss) $ 12,794 $ (5,862 ) $ 20,541 $ 6,633 Total assets by segment were as follows: March 31, June 30, Electrical Infrastructure $ 152,631 $ 161,207 Oil Gas & Chemical 121,978 111,064 Storage Solutions 215,197 149,695 Industrial 74,666 58,816 Unallocated assets 66,961 77,251 Total segment assets $ 631,433 $ 558,033 |
Basis of Presentation Revenue R
Basis of Presentation Revenue Recognition (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Adoption of New Revenue Recognition Standard The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) on July 1, 2018. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most previous revenue recognition guidance, including industry-specific guidance, and is applicable to all of the Company's contracts with customers. The core principle of the revenue model is that "an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services." The Company used the modified retrospective method of application. Under the modified retrospective method, revenue recognized on completed contracts is not restated, however contracts in progress are accounted for as if they were under this new standard at inception. Any difference between historical revenue and revenue under the new standard is recorded as a cumulative effect adjustment to retained earnings as of the date of adoption. The cumulative impact of adopting Topic 606 was immaterial and did not require an adjustment to retained earnings. See Note 2 – Revenue for new disclosures required as a result of adopting Topic 606. General Information about our Contracts with Customers Our revenues come from contracts to provide engineering, procurement, fabrication and construction, repair and maintenance and other services. Our engineering, procurement and fabrication and construction services are usually provided in association with capital projects, which commonly are fixed price contracts and are billed based on project milestones. Our repair and maintenance services typically are cost reimbursable or time and material based contracts and are billed monthly or, for projects of short duration, at the conclusion of the project. The elapsed time from award to completion of performance may be in excess of one year for capital projects. Step 1: Contract Identification We do not recognize revenue unless we have identified a contract with a customer. A contract with a customer exists when it has approval and commitment from both parties, the rights and obligations of the parties are identified, payment terms are identified, the contract has commercial substance, and collectibility is probable. We also evaluate whether a contract should be combined with other contracts and accounted for as one single contract. This evaluation requires judgment and could change the timing of the amount of revenue and profit recorded for a given period. Step 2: Identify Performance Obligations Next, we identify each performance obligation in the contract. A performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services to the customer. Revenue is recognized separately for each performance obligation in the contract. Many of our contracts have one clearly identifiable performance obligation. However, many of our contracts provide the customer an integrated service that includes two or more of the following services: engineering, procurement, fabrication, construction, repair and maintenance services. For these contracts, we do not consider the integrated services to be distinct within the context of the contract when the separate scopes of work combine into a single commercial objective or capability for the customer. Accordingly, we generally identify one performance obligation in our contracts. The determination of the number of performance obligations in a contract requires significant judgment and could change the timing of the amount of revenue recorded for a given period. Step 3: Determine Contract Price After determining the performance obligations in the contract, we determine the contract price. The contract price is the amount of consideration we expect to receive from the customer for completing the performance obligation(s). In a fixed price contract, the contract price is a single lump-sum amount. In reimbursable and time and materials based contracts, the contract price is determined by the agreed upon rates or reimbursements for time and materials expended in completing the performance obligation(s) in the contract. A number of our contracts contain various cost and performance incentives and penalties that can either increase or decrease the contract price. These variable consideration amounts are generally earned or incurred based on certain performance metrics, most commonly related to project schedule or cost targets. We estimate variable consideration at the most likely amount of additional consideration to be received (or paid in the case of penalties), provided that meeting the variable condition is probable. We include estimated amounts of variable consideration in the contract price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the contract price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. We reassess the amount of variable consideration each accounting period until the uncertainty associated with the variable consideration is resolved. Changes in the assessed amount of variable consideration are accounted for prospectively as a cumulative adjustment to revenue recognized in the current period. Step 4: Assign Contract Price to Performance Obligations After determining the contract price, we assign such price to the performance obligation(s) in the contract. If a contract has multiple performance obligations, we assign the contract price to each performance obligation based on the stand-alone selling prices of the distinct services that comprise each performance obligation. Step 5: Recognize Revenue as Performance Obligations are Satisfied We record revenue for contracts with our customers as we satisfy the contracts' performance obligations. We recognize revenue on performance obligations associated with fixed price contracts for engineering, procurement and construction services over time since these services create or enhance assets the customer controls as they are being created or enhanced. We measure progress of satisfying these performance obligations by using the percentage-of-completion method, which is based on costs incurred to date compared to the total estimated costs at completion, since it best depicts the transfer of control of assets being created or enhanced to the customer. We recognize revenue over time for reimbursable and time and material based repair and maintenance contracts since the customer simultaneously receives and consumes the benefit of those services as we perform work under the contract. As a practical expedient allowed under ASC 606, we record revenue for these contracts in the amount to which we have a right to invoice for the services performed provided that we have a right to consideration from the customer in an amount that corresponds directly with the value of the performance completed to date. Costs incurred may include direct labor, direct materials, subcontractor costs and indirect costs, such as salaries and benefits, supplies and tools, equipment costs and insurance costs. Indirect costs are charged to projects based upon direct costs and overhead allocation rates per dollar of direct costs incurred or direct labor hours worked. Typically, customer contracts will include standard warranties that provide assurance that products and services will function as expected. The Company does not sell separate warranties. We have numerous contracts that are in various stages of completion which require estimates to determine the forecasted costs at completion. Due to the nature of the work left to be performed on many of our contracts, the estimation of total cost at completion for fixed price contracts is complex, subject to many variables and requires significant judgment. Estimates of total cost at completion are made each period and changes in these estimates are accounted for prospectively as cumulative adjustments to revenue recognized in the current period. If estimates of costs to complete fixed price contracts indicate a loss, a provision is made through a contract write-down for the total loss anticipated. Change Orders Contracts are often modified through change orders, which are changes to the agreed upon scope of work. Most of our change orders, which may be priced or unpriced, are for goods or services that are not distinct from the existing contract due to the significant integration of services provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a change order on the contract price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. For unpriced change orders, we estimate the increase or decrease to the contract price using the variable consideration method described in the Step 3: Determine Contract Price paragraph above. Unpriced change orders are more fully discussed in Note 7 - Commitments and Contingencies. Claims Sometimes we seek claims for amounts in excess of the contract price for delays, errors in specifications and designs, contract terminations, change orders in dispute or other causes of additional costs incurred by us. Recognition of amounts as additional contract price related to claims is appropriate only if there is a legal basis for the claim. The determination of our legal basis for a claim requires significant judgment. We estimate the change to the contract price using the variable consideration method described in the Step 3: Determine Contract Price paragraph above. Claims are more fully discussed in Note 7 - Commitments and Contingencies. |
Revenue Revenue (Tables)
Revenue Revenue (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about CIE and BIE: March 31, June 30, Change (in thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 75,353 $ 76,632 $ (1,279 ) Billings on uncompleted contracts in excess of costs and estimated earnings (122,235 ) (120,740 ) (1,495 ) Net contract liabilities $ (46,882 ) $ (44,108 ) $ (2,774 ) |
Disclosure Customer Contracts Additional Information [Abstract] | |
Gross and Net Amount of Uncompleted Contracts | Gross amounts of contact assets and liabilities on uncompleted contracts are as follows: March 31, June 30, (in thousands) Costs incurred and estimated earnings recognized on uncompleted contracts $ 1,765,137 $ 2,081,799 Billings on uncompleted contracts 1,812,019 2,125,907 Net contract liabilities $ (46,882 ) $ (44,108 ) |
Disaggregation of Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents revenue disaggregated by the geographic area where the work was performed: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) United States $ 345,953 $ 226,089 $ 985,603 $ 706,934 Canada 10,691 18,056 27,486 87,911 Other international 2,243 1,500 4,877 3,621 Total Revenue $ 358,887 $ 245,645 $ 1,017,966 $ 798,466 |
Intangible Assets Including G_2
Intangible Assets Including Goodwill (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |
Carrying Value of Goodwill by Segment | The changes in the carrying value of goodwill by segment are as follows: Electrical Infrastructure Oil Gas & Chemical Storage Solutions Industrial Total (In thousands) Net balance at June 30, 2018 $ 24,826 $ 33,604 $ 16,760 $ 20,972 $ 96,162 Disposal of business (1) — (2,775 ) — — (2,775 ) Translation adjustment (2) (19 ) — (49 ) (3 ) (71 ) Net balance at March 31, 2019 $ 24,807 $ 30,829 $ 16,711 $ 20,969 $ 93,316 (1) In August 2018, the Company disposed of a business that marketed process heating equipment. See Note 3 - Disposals for more information about the disposal. The business disposed of constituted its own reporting unit and the amount of goodwill written off was all of the goodwill assigned to that reporting unit. None of the goodwill was considered impaired since the Company recorded a gain on the disposal. (2) The translation adjustments relate to the periodic translation of Canadian Dollar and South Korean Won denominated goodwill recorded as a part of prior acquisitions in Canada and South Korea, in which the local currency was determined to be the functional currency. |
Carrying Value of Other Intangible Assets | Information on the carrying value of other intangible assets is as follows: At March 31, 2019 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 10 to 15 $ 2,579 $ (1,735 ) $ 844 Customer-based 6 to 15 38,491 (19,074 ) 19,417 Non-compete agreements 4 1,453 (1,432 ) 21 Total amortizing intangible assets $ 42,523 $ (22,241 ) $ 20,282 At June 30, 2018 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Years) (In thousands) Intellectual property 9 to 15 $ 2,579 $ (1,603 ) $ 976 Customer-based 6 to 15 38,562 (16,763 ) 21,799 Non-compete agreements 4 1,453 (1,414 ) 39 Total amortizing intangible assets $ 42,594 $ (19,780 ) $ 22,814 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Period ending: Remainder of Fiscal 2019 $ 936 Fiscal 2020 3,735 Fiscal 2021 3,716 Fiscal 2022 2,875 Fiscal 2023 2,424 Fiscal 2024 2,122 Thereafter 4,474 Total estimated remaining amortization expense at March 31, 2019 $ 20,282 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Availability Under the Senior Credit Facility | Availability under the senior secured revolving credit facility at March 31, 2019 was as follows: March 31, June 30, (In thousands) Senior secured revolving credit facility $ 300,000 $ 300,000 Capacity constraint due to the Leverage Ratio 145,812 189,741 Capacity under the credit facility 154,188 110,259 Borrowings outstanding 2,172 — Letters of credit 21,694 37,073 Availability under the senior secured revolving credit facility $ 130,322 $ 73,186 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands, except per share data) Basic EPS: Net income (loss) $ 8,933 $ (5,153 ) $ 15,170 $ 3,203 Weighted average shares outstanding 26,788 26,817 26,918 26,747 Basic earnings (loss) per share $ 0.33 $ (0.19 ) $ 0.56 $ 0.12 Diluted EPS: Weighted average shares outstanding – basic 26,788 26,817 26,918 26,747 Dilutive stock options 27 — 28 29 Dilutive nonvested deferred shares 602 — 641 278 Diluted weighted average shares 27,417 26,817 27,587 27,054 Diluted earnings (loss) per share $ 0.33 $ (0.19 ) $ 0.55 $ 0.12 |
Antidilutive Securities Excluded from the Calculation of Diluted EPS | The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Stock options — 37 — — Nonvested deferred shares 188 459 152 276 Total antidilutive securities 188 496 152 276 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Results of Operations | Results of Operations (In thousands) Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Gross revenues Electrical Infrastructure $ 60,669 $ 58,378 $ 163,543 $ 203,201 Oil Gas & Chemical 83,414 68,689 246,497 242,946 Storage Solutions 134,822 78,859 374,787 221,664 Industrial 81,283 41,976 237,225 134,507 Total gross revenues $ 360,188 $ 247,902 $ 1,022,052 $ 802,318 Less: Inter-segment revenues Oil Gas & Chemical $ 870 $ 299 $ 2,175 $ 544 Storage Solutions 431 1,958 1,911 3,307 Industrial — — — 1 Total inter-segment revenues $ 1,301 $ 2,257 $ 4,086 $ 3,852 Consolidated revenues Electrical Infrastructure $ 60,669 $ 58,378 $ 163,543 $ 203,201 Oil Gas & Chemical 82,544 68,390 244,322 242,402 Storage Solutions 134,391 76,901 372,876 218,357 Industrial 81,283 41,976 237,225 134,506 Total consolidated revenues $ 358,887 $ 245,645 $ 1,017,966 $ 798,466 Gross profit Electrical Infrastructure $ 6,210 $ 1,759 $ 13,155 $ 15,567 Oil Gas & Chemical 10,736 4,744 25,518 27,550 Storage Solutions 14,575 4,166 35,275 17,004 Industrial 5,385 4,222 14,265 10,364 Total gross profit $ 36,906 $ 14,891 $ 88,213 $ 70,485 Operating income (loss) Electrical Infrastructure $ 2,882 $ (2,422 ) $ 3,977 $ 2,234 Oil Gas & Chemical 4,796 (648 ) 8,895 8,684 Storage Solutions 3,730 (4,025 ) 5,371 (6,709 ) Industrial 1,386 1,233 2,298 2,424 Total operating income (loss) $ 12,794 $ (5,862 ) $ 20,541 $ 6,633 Total assets by segment were as follows: March 31, June 30, Electrical Infrastructure $ 152,631 $ 161,207 Oil Gas & Chemical 121,978 111,064 Storage Solutions 215,197 149,695 Industrial 74,666 58,816 Unallocated assets 66,961 77,251 Total segment assets $ 631,433 $ 558,033 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation - Narrative (Details) $ in Millions | Jun. 30, 2018USD ($) |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Operating Leases, Future Minimum Payments Due | $ 33.1 |
Revenue Revenue (Details)
Revenue Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Revenue, Performance Obligation [Abstract] | |||||
Revenue, Remaining Performance Obligation, Amount | $ 805,300 | $ 805,300 | |||
Performance obligations to be recognized as revenue within next twelve months | 714,200 | 714,200 | |||
Contract with Customer, Asset and Liability [Abstract] | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 75,353 | 75,353 | $ 76,632 | ||
Change in CIE | (1,279) | ||||
Billings on uncompleted contracts in excess of costs and estimated earnings | (122,235) | (122,235) | (120,740) | ||
Change in BIE | (1,495) | ||||
Change in net contract balances | (2,774) | ||||
Contract with Customer, Liability, Revenue Recognized | 120,700 | ||||
Disclosure Customer Contracts Additional Information [Abstract] | |||||
Costs incurred and estimated earnings recognized on uncompleted contracts | 1,765,137 | 1,765,137 | 2,081,799 | ||
Billings on uncompleted contracts | 1,812,019 | 1,812,019 | 2,125,907 | ||
Total | (46,882) | (46,882) | (44,108) | ||
Contract Receivable Retainage, Due in Next Twelve Months | 20,800 | 20,800 | 25,900 | ||
Contract Receivable Retainage, Due after Next Twelve Months | 17,100 | 17,100 | $ 2,600 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 358,887 | $ 245,645 | 1,017,966 | $ 798,466 | |
United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 345,953 | 226,089 | 985,603 | 706,934 | |
Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Including Assessed Tax | 10,691 | 18,056 | 27,486 | 87,911 | |
Other international [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 2,243 | $ 1,500 | $ 4,877 | $ 3,621 |
Disposals (Narrative) (Details)
Disposals (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2018 | Aug. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 3,900 | |||
Acquisition Related Adjustment for Working Capital Settlement | $ 200 | |||
Gain (Loss) on Disposition of Business | $ 427 | $ 0 |
Intangible Assets Including G_3
Intangible Assets Including Goodwill - Carrying Value of Goodwill By Segment (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 96,162 |
Goodwill [Roll Forward] | |
Net balance at June 30, 2015 | 96,162 |
Goodwill, Written off Related to Sale of Business Unit | (2,775) |
Translation adjustment | (71) |
Net balance at March 31, 2019 | 93,316 |
Electrical Infrastructure [Member] | |
Goodwill [Line Items] | |
Goodwill | 24,826 |
Goodwill [Roll Forward] | |
Net balance at June 30, 2015 | 24,826 |
Goodwill, Written off Related to Sale of Business Unit | 0 |
Translation adjustment | (19) |
Net balance at March 31, 2019 | 24,807 |
Oil Gas & Chemical [Member] | |
Goodwill [Line Items] | |
Goodwill | 33,604 |
Goodwill [Roll Forward] | |
Net balance at June 30, 2015 | 33,604 |
Goodwill, Written off Related to Sale of Business Unit | (2,775) |
Translation adjustment | 0 |
Net balance at March 31, 2019 | 30,829 |
Storage Solutions [Member] | |
Goodwill [Line Items] | |
Goodwill | 16,760 |
Goodwill [Roll Forward] | |
Net balance at June 30, 2015 | 16,760 |
Goodwill, Written off Related to Sale of Business Unit | 0 |
Translation adjustment | (49) |
Net balance at March 31, 2019 | 16,711 |
Industrial [Member] | |
Goodwill [Line Items] | |
Goodwill | 20,972 |
Goodwill [Roll Forward] | |
Net balance at June 30, 2015 | 20,972 |
Goodwill, Written off Related to Sale of Business Unit | 0 |
Translation adjustment | (3) |
Net balance at March 31, 2019 | $ 20,969 |
Intangible Assets Including G_4
Intangible Assets Including Goodwill - Carrying Value of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 42,523 | $ 42,523 | $ 42,594 | ||
Accumulated Amortization | (22,241) | (22,241) | (19,780) | ||
Net Carrying Amount | 20,282 | 20,282 | 22,814 | ||
Total intangible assets, net carrying amount | 20,282 | 20,282 | 22,814 | ||
Amortization expense | 800 | $ 900 | 2,500 | $ 3,900 | |
Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 2,579 | 2,579 | 2,579 | ||
Accumulated Amortization | (1,735) | (1,735) | (1,603) | ||
Net Carrying Amount | 844 | $ 844 | 976 | ||
Intellectual Property [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | 9 years | |||
Intellectual Property [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 38,491 | $ 38,491 | 38,562 | ||
Accumulated Amortization | (19,074) | (19,074) | (16,763) | ||
Net Carrying Amount | 19,417 | $ 19,417 | 21,799 | ||
Customer Relationships [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 6 years | 6 years | |||
Customer Relationships [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 1,453 | $ 1,453 | 1,453 | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Accumulated Amortization | (1,432) | $ (1,432) | (1,414) | ||
Net Carrying Amount | $ 21 | $ 21 | $ 39 | ||
Noncompete Agreements [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years |
Intangible Assets Including G_5
Intangible Assets Including Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Amortization expense | $ 800 | $ 900 | $ 2,500 | $ 3,900 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 42,523 | 42,523 | $ 42,594 | ||
Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 2,579 | 2,579 | 2,579 | ||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 38,491 | 38,491 | 38,562 | ||
Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 1,453 | $ 1,453 | $ 1,453 | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Minimum [Member] | Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | 9 years | |||
Minimum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 6 years | 6 years | |||
Minimum [Member] | Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | ||||
Maximum [Member] | Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Maximum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years |
Intangible Assets Including G_6
Intangible Assets Including Goodwill Future Expected Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 936 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Year | 3,735 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,716 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,875 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,424 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2,122 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 4,474 | |
Finite-Lived Intangible Assets, Net | $ 20,282 | $ 22,814 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019USD ($)Rate | Jun. 30, 2018USD ($) | |
Credit Agreement Terms | ||
Senior secured revolving credit facility | $ | $ 300,000 | $ 300,000 |
Line Of Credit Facility Expiration Date | Feb. 8, 2022 | |
Senior Leverage Ratio, Maximum | 3 | |
Senior Leverage Ratio, Minimum | 1 | |
Fixed Charge Coverage Ratio, Maximum | 1.25 | |
Fixed Charge Coverage Ratio, Minimum | 1 | |
Amount of Limit on Asset Dispositions | $ | $ 20,000 | |
Additional Margin on alternate base rate loans, Minimum | 0.625% | |
Additional Margin on alternate base rate loans, Maximum | 1.625% | |
Sublimit on Australian Dollar, Canadian Dollar, Euro and Pounds Sterling | $ | $ 75,000 | |
Sub-limit on letters of credit under the credit facility | $ | $ 200,000 | |
Additional Margin on Adjusted LIBO, EURIBO and CDOR loans, Minimum | 1.625% | |
Additional Margin on Adjusted LIBO, EURIBO and CDOR loans, Maximum | 2.625% | |
Additional Margin on Canadian prime rate loans, Minimum | 2.125% | |
Additional Margin on Canadian prime rate loans, Maximum | 3.125% | |
Consolidated EBITDA as defined in the Credit Agreement | $ | $ 51,400 | |
Consolidated funded indebtedness | $ | $ 23,900 | |
Minimum [Member] | ||
Credit Agreement Terms | ||
Unused Credit Facility Fee | 0.25% | |
Maximum [Member] | ||
Credit Agreement Terms | ||
Unused Credit Facility Fee | 0.45% |
Debt - Availability Under The S
Debt - Availability Under The Senior Credit Facility (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Debt Disclosure [Abstract] | ||
Senior credit facility | $ 300,000 | $ 300,000 |
Capacity Constraint Due To Senior Leverage Ratio | 145,812 | 189,741 |
Line Of Credit Facility Maximum Borrowing Capacity After Consideration Of Capacity Constraint | 154,188 | 110,259 |
Line of Credit Facility, Amount Outstanding | 2,172 | 0 |
Letters of credit subject to the credit facility | 21,694 | 37,073 |
Availability under the senior credit facility | $ 130,322 | $ 73,186 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, Percent | 30.50% | 14.20% | 27.90% | 38.10% | ||
Deferred tax remeasurement | $ 0.5 | |||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $ 1.5 | $ 1.5 | ||||
Tax Credit Carryforward, Valuation Allowance | 0.6 | 0.6 | $ 0.2 | |||
Deferred Tax Assets, Foreign Tax Credit Carryforward, After Valuation Allowance | $ 0.7 | 0.7 | ||||
Discrete item impact on effective tax rate | $ 0.3 | |||||
Expected effective tax rate | 27.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Project Unapproved Change Orders and Claims [Line Items] | ||
Unapproved change orders and claims | $ 11.5 | $ 15 |
Earnings per Common Share - Com
Earnings per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share, Basic [Abstract] | ||||
Net income (loss) | $ 8,933 | $ (5,153) | $ 15,170 | $ 3,203 |
Weighted average shares outstanding - basic (shares) | 26,788 | 26,817 | 26,918 | 26,747 |
Basic EPS (US$ per share) | $ 0.33 | $ (0.19) | $ 0.56 | $ 0.12 |
Earnings Per Share, Diluted [Abstract] | ||||
Dilutive stock options | 27 | 0 | 28 | 29 |
Dilutive nonvested deferred shares | 602 | 0 | 641 | 278 |
Diluted weighted average shares (shares) | 27,417 | 26,817 | 27,587 | 27,054 |
Diluted EPS (US$ per share) | $ 0.33 | $ (0.19) | $ 0.55 | $ 0.12 |
Earnings per Common Share - Ant
Earnings per Common Share - Antidilutive Securities Excluded from the Calculation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities | 188 | 496 | 152 | 276 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities | 0 | 37 | 0 | 0 |
Nonvested Deferred Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities | 188 | 459 | 152 | 276 |
Segment Information - Results o
Segment Information - Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||
Gross revenues | $ 360,188 | $ 247,902 | $ 1,022,052 | $ 802,318 | |
Revenues | 358,887 | 245,645 | 1,017,966 | 798,466 | |
Gross profit | 36,906 | 14,891 | 88,213 | 70,485 | |
Operating income | 12,794 | (5,862) | 20,541 | 6,633 | |
Segment assets | 631,433 | 631,433 | $ 558,033 | ||
Electrical Infrastructure [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 60,669 | 58,378 | 163,543 | 203,201 | |
Revenues | 60,669 | 58,378 | 163,543 | 203,201 | |
Gross profit | 6,210 | 1,759 | 13,155 | 15,567 | |
Operating income | 2,882 | (2,422) | 3,977 | 2,234 | |
Segment assets | 152,631 | 152,631 | 161,207 | ||
Oil Gas & Chemical [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 83,414 | 68,689 | 246,497 | 242,946 | |
Revenues | 82,544 | 68,390 | 244,322 | 242,402 | |
Gross profit | 10,736 | 4,744 | 25,518 | 27,550 | |
Operating income | 4,796 | (648) | 8,895 | 8,684 | |
Segment assets | 121,978 | 121,978 | 111,064 | ||
Storage Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 134,822 | 78,859 | 374,787 | 221,664 | |
Revenues | 134,391 | 76,901 | 372,876 | 218,357 | |
Gross profit | 14,575 | 4,166 | 35,275 | 17,004 | |
Operating income | 3,730 | (4,025) | 5,371 | (6,709) | |
Segment assets | 215,197 | 215,197 | 149,695 | ||
Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 81,283 | 41,976 | 237,225 | 134,507 | |
Revenues | 81,283 | 41,976 | 237,225 | 134,506 | |
Gross profit | 5,385 | 4,222 | 14,265 | 10,364 | |
Operating income | 1,386 | 1,233 | 2,298 | 2,424 | |
Segment assets | 74,666 | 74,666 | 58,816 | ||
Other Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Segment assets | 66,961 | 66,961 | $ 77,251 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 1,301 | 2,257 | 4,086 | 3,852 | |
Intersegment Eliminations [Member] | Oil Gas & Chemical [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 870 | 299 | 2,175 | 544 | |
Intersegment Eliminations [Member] | Storage Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 431 | 1,958 | 1,911 | 3,307 | |
Intersegment Eliminations [Member] | Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | $ 0 | $ 0 | $ 0 | $ 1 |
Uncategorized Items - mtrx-2019
Label | Element | Value |
Proceeds from Divestiture of Businesses | us-gaap_ProceedsFromDivestitureOfBusinesses | $ 0 |