Cover Page
Cover Page | 6 Months Ended |
Mar. 31, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2021 |
Document Transition Report | false |
Entity File Number | 1-5978 |
Entity Registrant Name | SIFCO Industries, Inc |
Entity Incorporation, State or Country Code | OH |
Entity Tax Identification Number | 34-0553950 |
Entity Address, Address Line One | 970 East 64th Street, |
Entity Address, City or Town | Cleveland |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 44103 |
City Area Code | (216) |
Local Phone Number | 881-8600 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Title of 12(b) Security | Common Shares |
Trading Symbol | SIF |
Security Exchange Name | NYSEAMER |
Entity Common Stock, Shares Outstanding | 5,989,129 |
Entity Central Index Key | 0000090168 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 24,866 | $ 30,537 | $ 49,944 | $ 56,744 |
Cost of goods sold | 22,123 | 24,260 | 43,278 | 47,143 |
Gross profit | 2,743 | 6,277 | 6,666 | 9,601 |
Selling, general and administrative expenses | 3,596 | 3,321 | 7,423 | 7,529 |
Amortization of intangible assets | 248 | 408 | 517 | 817 |
Loss on disposal of operating assets | 0 | 41 | 0 | 41 |
Gain on insurance recoveries | 0 | (1,000) | (2,495) | (1,000) |
Operating income (loss) | (1,101) | 3,507 | 1,221 | 2,214 |
Interest expense | 169 | 262 | 335 | 513 |
Foreign currency exchange loss (income), net | 14 | (1) | 21 | 0 |
Other loss (income), net | 42 | 25 | 103 | (84) |
Income (loss) before income tax expense (benefit) | (1,326) | 3,221 | 762 | 1,785 |
Income tax expense (benefit) | 165 | (39) | (740) | (134) |
Net income (loss) | $ (1,491) | $ 3,260 | $ 1,502 | $ 1,919 |
Net income (loss) per share | ||||
Basic (in dollars per share) | $ (0.26) | $ 0.57 | $ 0.26 | $ 0.34 |
Diluted (in dollars per share) | $ (0.26) | $ 0.57 | $ 0.25 | $ 0.33 |
Weighted-average number of common shares (basic) (in shares) | 5,777 | 5,679 | 5,735 | 5,645 |
Weighted-average number of common shares (diluted) (in shares) | 5,777 | 5,770 | 5,932 | 5,748 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (1,491) | $ 3,260 | $ 1,502 | $ 1,919 |
Other comprehensive income: | ||||
Foreign currency translation adjustment, net of tax $0 and $0 for the three months ended and net of tax $0 and $0 for the six months ended, respectively | (303) | (130) | (17) | 63 |
Retirement plan liability adjustment, net of tax $0 and $0 for the three months end and net of tax $0 and $0 for the six month ended, respectively | 211 | 249 | 423 | 437 |
Comprehensive income (loss) | $ (1,583) | $ 3,379 | $ 1,908 | $ 2,419 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Retirement plan liability adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 311 | $ 427 |
Receivables, net of allowance for doubtful accounts of $251 and $249, respectively | 19,068 | 23,225 |
Other receivables | 0 | 1,547 |
Contract assets | 13,565 | 11,997 |
Inventories, net | 15,568 | 15,569 |
Refundable income taxes | 103 | 103 |
Prepaid expenses and other current assets | 1,959 | 2,338 |
Total current assets | 50,574 | 55,206 |
Property, plant and equipment, net | 44,448 | 44,201 |
Operating lease right-of-use assets, net | 16,405 | 17,021 |
Intangible assets, net | 1,377 | 1,890 |
Goodwill | 3,493 | 3,493 |
Other assets | 89 | 137 |
Total assets | 116,386 | 121,948 |
Current liabilities: | ||
Current maturities of long-term debt | 9,783 | 7,144 |
Revolver | 7,742 | 12,870 |
Short-term operating lease liabilities | 796 | 991 |
Accounts payable | 14,495 | 14,002 |
Accrued liabilities | 6,368 | 8,290 |
Total current liabilities | 39,184 | 43,297 |
Long-term debt, net of current maturities | 2,542 | 4,606 |
Long-term operating lease liabilities, net of short-term | 15,825 | 16,188 |
Deferred income taxes | 616 | 1,400 |
Pension liability | 9,764 | 10,165 |
Other long-term liabilities | 747 | 769 |
Shareholders’ equity: | ||
Serial preferred shares, no par value, authorized 1,000 shares | 0 | 0 |
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares 5,989 at March 31, 2021 and 5,916 at September 30, 2020 | 5,989 | 5,916 |
Additional paid-in capital | 10,940 | 10,736 |
Retained earnings | 43,841 | 42,339 |
Accumulated other comprehensive loss | (13,062) | (13,468) |
Total shareholders’ equity | 47,708 | 45,523 |
Total liabilities and shareholders’ equity | $ 116,386 | $ 121,948 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 251 | $ 249 |
Serial preferred shares, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common shares, shares issued (in shares) | 5,989,000 | 5,916,000 |
Common shares, shares outstanding (in shares) | 5,989,000 | 5,916,000 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,502 | $ 1,919 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 3,730 | 3,731 |
Amortization of debt issuance costs | 52 | 52 |
Loss on disposal of operating assets | 0 | 41 |
Gain on insurance proceeds received | (2,495) | (1,000) |
LIFO effect | 335 | (11) |
Share transactions under company stock plan | 277 | 217 |
Other long-term liabilities | (2) | (90) |
Deferred income taxes | (830) | (135) |
Changes in operating assets and liabilities: | ||
Receivables | 4,149 | 1,533 |
Contract assets | (1,569) | (2,171) |
Inventories | (301) | (2,858) |
Refundable income taxes | 0 | 10 |
Prepaid expenses and other current assets | 40 | (434) |
Other assets | 47 | 42 |
Accounts payable | 2,749 | (3,296) |
Other accrued liabilities | (2,077) | 2,050 |
Accrued income and other taxes | 182 | (14) |
Net cash provided by (used for) operating activities | 5,789 | (414) |
Cash flows from investing activities: | ||
Insurance proceeds received | 4,101 | 4,500 |
Capital expenditures | (5,416) | (4,596) |
Net cash used for investing activities | (1,315) | (96) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 0 | 137 |
Payments on long-term debt | (264) | (568) |
Proceeds from revolving credit agreement | 44,666 | 59,372 |
Repayments of revolving credit agreement | (49,794) | (57,723) |
Payment of debt issuance costs | (45) | 0 |
Short-term debt borrowings | 2,471 | 1,542 |
Short-term debt repayments | (1,631) | (2,257) |
Net cash provided by (used for) financing activities | (4,597) | 503 |
Decrease in cash and cash equivalents | (123) | (7) |
Cash and cash equivalents at the beginning of the period | 427 | 341 |
Effect of exchange rate changes on cash and cash equivalents | 7 | 11 |
Cash and cash equivalents at the end of the period | 311 | 345 |
Supplemental disclosure of cash flow information of operations: | ||
Cash paid for interest | (203) | (419) |
Cash paid for income taxes, net | $ (22) | $ (34) |
Consolidated Condensed Statem_5
Consolidated Condensed Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Sep. 30, 2019 | 5,777 | ||||
Beginning balance at Sep. 30, 2019 | $ 36,054 | $ 5,777 | $ 10,438 | $ 33,148 | $ (13,309) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 2,419 | 1,919 | 500 | ||
Performance and restricted share expense | 225 | 225 | |||
Share transactions under equity based plans (in shares) | 139 | ||||
Share transactions under equity based plans | (8) | $ 139 | (147) | ||
Ending balance (in shares) at Mar. 31, 2020 | 5,916 | ||||
Ending balance at Mar. 31, 2020 | 38,690 | $ 5,916 | 10,516 | 35,067 | (12,809) |
Beginning balance (in shares) at Dec. 31, 2019 | 5,863 | ||||
Beginning balance at Dec. 31, 2019 | 35,245 | $ 5,863 | 10,503 | 31,807 | (12,928) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 3,379 | 3,260 | 119 | ||
Performance and restricted share expense | 70 | 70 | |||
Share transactions under equity based plans (in shares) | 53 | ||||
Share transactions under equity based plans | (4) | $ 53 | (57) | ||
Ending balance (in shares) at Mar. 31, 2020 | 5,916 | ||||
Ending balance at Mar. 31, 2020 | 38,690 | $ 5,916 | 10,516 | 35,067 | (12,809) |
Beginning balance (in shares) at Sep. 30, 2020 | 5,916 | ||||
Beginning balance at Sep. 30, 2020 | 45,523 | $ 5,916 | 10,736 | 42,339 | (13,468) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | 1,908 | 1,502 | 406 | ||
Performance and restricted share expense | 293 | 293 | |||
Share transactions under equity based plans (in shares) | 73 | ||||
Share transactions under equity based plans | (16) | $ 73 | (89) | ||
Ending balance (in shares) at Mar. 31, 2021 | 5,989 | ||||
Ending balance at Mar. 31, 2021 | 47,708 | $ 5,989 | 10,940 | 43,841 | (13,062) |
Beginning balance (in shares) at Dec. 31, 2020 | 5,959 | ||||
Beginning balance at Dec. 31, 2020 | 49,141 | $ 5,959 | 10,820 | 45,332 | (12,970) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | (1,583) | (1,491) | (92) | ||
Performance and restricted share expense | 150 | 150 | |||
Share transactions under equity based plans (in shares) | 30 | ||||
Share transactions under equity based plans | 0 | $ 30 | (30) | ||
Ending balance (in shares) at Mar. 31, 2021 | 5,989 | ||||
Ending balance at Mar. 31, 2021 | $ 47,708 | $ 5,989 | $ 10,940 | $ 43,841 | $ (13,062) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies A. Principles of Consolidation The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the "Company"). All significant intercompany accounts and transactions have been eliminated in consolidation. The U.S. dollar is the functional currency for all of the Company’s U.S. operations and its non-operating subsidiaries. For these operations, all gains and losses from completed currency transactions are included in income. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange for the period. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements. These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2020 Annual Report on Form 10-K. The year-end consolidated balance sheet data was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the United States ("U.S."). The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year. B. Accounting Policies A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company's fiscal 2020 Annual Report on Form 10-K. C. Net Income/(Loss) per Share The Company’s net income and loss per basic share has been computed based on the weighted-average number of common shares outstanding. Net income per diluted share reflects the effect of the Company's outstanding restricted shares and performance shares under the treasury method. In the three months ended March 31, 2021, due to the net loss, zero restricted shares are included in the calculation of diluted earnings per share because the effect would be anti-dilutive. The dilutive effect is as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Net Income (loss) $ (1,491) $ 3,260 $ 1,502 $ 1,919 Weighted-average common shares outstanding (basic and diluted) 5,777 5,679 5,735 5,645 Effect of dilutive securities: Restricted shares — 89 144 102 Performance shares — 2 53 1 Weighted-average common shares outstanding (basic and diluted) 5,777 5,770 5,932 5,748 Net income (loss) per share – basic: $ (0.26) $ 0.57 $ 0.26 $ 0.34 Net income (loss) per share – diluted: $ (0.26) $ 0.57 $ 0.25 $ 0.33 Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 411 215 217 147 D. Impact of Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " and subsequent updates. ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The new guidance will replace the current incurred loss approach with an expected loss model. The new expected credit loss impairment model will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt instruments, net investments in leases, loan commitments and standby letters of credit. Upon initial recognition of the exposure, the expected credit loss model requires entities to estimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses should consider historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. Financial instruments with similar risk characteristics should be grouped together when estimating expected credit losses. ASU 2016-13 does not prescribe a specific method to make the estimate, so its application will require significant judgment. ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. However, in November 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)," which defers the effective date for public filers that are considered smaller reporting companies ("SRC"), as defined by the Securities and Exchange Commission, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Because SIFCO is considered a SRC, the Company does not need to implement ASU 2016-13 until October 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company's results within the consolidated condensed statements of operations and financial condition. In December 2019, the FASB issued ASU 2019-12, " Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" was issued to (i) reduce the complexity of the standard by removing certain exceptions to the general principles in Topic 740 and (ii) improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective beginning October 1, 2021. The Company continues to evaluate the effect adopting this ASU will have on the Company's results within the consolidated condensed statements of operations and financial condition. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This ASU, along with recently issued ASU 2021-01, which further clarifies the scope of Topic 848, is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company is currently evaluating these standards to determine whether it will apply the optional expedients and exceptions. |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of: March 31, September 30, Raw materials and supplies $ 6,379 $ 6,548 Work-in-process 3,564 3,786 Finished goods 5,625 5,235 Total inventories $ 15,568 $ 15,569 For a portion of the Company's inventory, cost is determined using the last-in, first-out ("LIFO") method. Approximately 49% and 47% of the Company’s inventories at March 31, 2021 and September 30, 2020, respectively, use the LIFO method. An actual valuation of inventory under the LIFO method is made at the end of each fiscal year based on the inventory levels and costs existing at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because the actual results may vary from these estimates, calculations are subject to many factors beyond management’s control, and annual results may differ from interim results as they are subject to adjustments based on the differences between the estimates and the actual results. The first-in, first-out (“FIFO”) method is used for the remainder of the inventories, which are stated at the lower of cost or net realizable value. If the FIFO method had been used for the inventories for which cost is determined using the LIFO method, inventories would have been $8,621 and $8,286 higher than reported at March 31, 2021 and September 30, 2020, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: March 31, September 30, Foreign currency translation adjustment $ (5,274) $ (5,257) Retirement plan liability adjustment, net of tax (7,788) (8,211) Total accumulated other comprehensive loss $ (13,062) $ (13,468) |
Leases
Leases | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense were as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Finance lease expense: Amortization of right-of use assets on finance leases $ 13 $ 14 $ 27 $ 27 Interest on lease liabilities 1 1 2 3 Operating lease expense: 540 543 1,092 1,079 Variable lease cost: 35 39 69 79 Total lease expense $ 589 $ 597 $ 1,190 $ 1,188 The following table presents the impact of leasing on the consolidated condensed balance sheet. Classification in the consolidated condensed balance sheets March 31, September 30, Assets: Finance lease assets Property, plant and equipment, net $ 62 $ 89 Operating lease assets Operating lease right-of-use assets, net 16,405 17,021 Total lease assets $ 16,467 $ 17,110 Current liabilities: Finance lease liabilities Current maturities of long-term debt $ 41 $ 58 Operating lease liabilities Short-term operating lease liabilities 796 991 Non-current liabilities: Finance lease liabilities Long-term debt, net of current maturities 10 22 Operating lease liabilities Long-term operating lease liabilities, net of short-term 15,825 16,188 Total lease liabilities $ 16,672 $ 17,259 Supplemental cash flow and other information related to leases were as follows: March 31, March 31, Other Information Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 1,097 $ 1,086 Operating cash flows from finance leases 2 3 Financing cash flows from finance leases 29 28 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 43 278 March 31, September 30, Weighted-average remaining lease term (years): Finance leases 1.2 1.6 Operating leases 14.8 15.2 Weighted-average discount rate: Finance leases 4.4 % 4.8 % Operating leases 5.9 % 5.9 % Future minimum lease under non-cancellable leases at March 31, 2021 were as follows: Finance Leases Operating Leases Year ending September 30, 2021 (excluding the six months ended March 31, 2021) $ 27 $ 852 2022 21 1,696 2023 4 1,633 2024 — 1,647 2025 — 1,644 Thereafter — 17,532 Total lease payments $ 52 $ 25,004 Less: Imputed interest (1) (8,383) Present value of lease liabilities $ 51 $ 16,621 |
Leases | Leases The components of lease expense were as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Finance lease expense: Amortization of right-of use assets on finance leases $ 13 $ 14 $ 27 $ 27 Interest on lease liabilities 1 1 2 3 Operating lease expense: 540 543 1,092 1,079 Variable lease cost: 35 39 69 79 Total lease expense $ 589 $ 597 $ 1,190 $ 1,188 The following table presents the impact of leasing on the consolidated condensed balance sheet. Classification in the consolidated condensed balance sheets March 31, September 30, Assets: Finance lease assets Property, plant and equipment, net $ 62 $ 89 Operating lease assets Operating lease right-of-use assets, net 16,405 17,021 Total lease assets $ 16,467 $ 17,110 Current liabilities: Finance lease liabilities Current maturities of long-term debt $ 41 $ 58 Operating lease liabilities Short-term operating lease liabilities 796 991 Non-current liabilities: Finance lease liabilities Long-term debt, net of current maturities 10 22 Operating lease liabilities Long-term operating lease liabilities, net of short-term 15,825 16,188 Total lease liabilities $ 16,672 $ 17,259 Supplemental cash flow and other information related to leases were as follows: March 31, March 31, Other Information Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 1,097 $ 1,086 Operating cash flows from finance leases 2 3 Financing cash flows from finance leases 29 28 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 43 278 March 31, September 30, Weighted-average remaining lease term (years): Finance leases 1.2 1.6 Operating leases 14.8 15.2 Weighted-average discount rate: Finance leases 4.4 % 4.8 % Operating leases 5.9 % 5.9 % Future minimum lease under non-cancellable leases at March 31, 2021 were as follows: Finance Leases Operating Leases Year ending September 30, 2021 (excluding the six months ended March 31, 2021) $ 27 $ 852 2022 21 1,696 2023 4 1,633 2024 — 1,647 2025 — 1,644 Thereafter — 17,532 Total lease payments $ 52 $ 25,004 Less: Imputed interest (1) (8,383) Present value of lease liabilities $ 51 $ 16,621 |
Debt
Debt | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of: March 31, September 30, Revolving credit agreement $ 7,742 $ 12,870 Foreign subsidiary borrowings 6,623 5,759 Finance lease obligations 51 80 Other, net of unamortized debt issuance costs $(37) and $(20), respectively 5,651 5,911 Total debt 20,067 24,620 Less – current maturities (17,525) (20,014) Total long-term debt $ 2,542 $ 4,606 Credit Agreement and Security Agreement The Company's asset-based Credit Agreement (as amended, the "Credit Agreement"), Security Agreement (“Security Agreement”) and Export Credit Agreement (as amended, the "Export Credit Agreement") are secured by substantially all the assets of the Company and its U.S. subsidiaries and a pledge of 66.67% of the stock of its first-tier non-U.S. subsidiaries. The Credit Agreement (as amended by Fifth Amendment (the "Fifth Amendment") described below), consists of a senior secured revolving credit facility with a maximum borrowing of $28,000. The revolving commitment through the Export Credit Agreement, as amended, which lends amounts to the Company on foreign receivables is $7,000. The Credit Agreement also has an accordion feature, which allows the Company to increase maximum borrowings by up to $10,000 upon consent of the Lender (as defined below) or upon additional lenders joining the Credit Agreement. The Credit Agreement and the Export Agreement were amended on February 19, 2021, when the Company and certain of its subsidiaries (collectively, the "borrowers") entered into the Fifth Amendment to the Credit Agreement and the First Amendment (the "First Amendment") to the Export Credit Agreement, in each case, with JPMorgan Chase Bank, N.A., a national banking association, (the "Lender"). The combined maximum borrowings remain unchanged at $35,000; however the maximum borrowing under the Credit Agreement was decreased to $28,000 (from $30,000) and the revolving commitment through the Export Agreement was increased to $7,000 (from $5,000). The Fifth Amendment, among other things, extends the maturity date from August 6, 2021 to February 19, 2024. The Credit Agreement contains affirmative and negative covenants and events of defaults. Prior to the Fifth Amendment, the Credit Agreement required the Company to maintain a fixed charge coverage ratio ("FCCR") of 1.1:1.0 any time the availability is equal to or less than 12.5% of the revolving commitment. However, the Fifth Amendment provides that the Company will not permit the fixed charge coverage ratio to be less than 1.1 to 1.0 as of the last day of any calendar month; provided that the fixed charge coverage ratio will not be tested unless (i) a default has occurred and is continuing, (ii) when the combined availability was less than or equal to the greater of (x) 10% of the lesser of the combined commitments or (y) 10% of the combined borrowing base, and $2,000, for three or more business days in any consecutive 30 day period. In the event of a default, the Company may not be able to access the revolver, which could impact the ability to fund working capital needs, capital expenditures and invest in new business opportunities. The total collateral at March 31, 2021 and September 30, 2020 was $26,619 and $26,964, respectively and the revolving commitment was $35,000 for both periods. Total availability at March 31, 2021 and September 30, 2020 was $18,067 and $13,284, respectively, which exceed both the collateral and total commitment threshold. Since the availability was greater than the 10.0% of the revolving commitment as of March 31, 2021 and 12.5% of the revolving commitment at September 30, 2020, the FCCR calculation was not required. Borrowings will bear interest at the Lender's established domestic rate or LIBOR, plus the applicable margin as set forth in the Fifth Amendment. The revolver has a rate based on LIBOR plus 1.75% spread, which was 1.87% at March 31, 2021 and a rate based on LIBOR plus 1.5% spread, which was 1.7% September 30, 2020. The Export Credit Agreement has a rate based on LIBOR plus 1.25% spread, which was 1.4% at March 31, 2021 and a rate based on LIBOR plus 1.0% spread, which was 1.2% at September 30, 2020, respectively. The Company also has a commitment fee of 0.25% under the Credit Agreement as amended to be incurred on the unused balance of the revolver. Foreign subsidiary borrowings Foreign debt consists of: March 31, September 30, Term loan $ 2,661 $ 2,670 Short-term borrowings 2,147 2,620 Factor 1,815 469 Total debt $ 6,623 $ 5,759 Less – current maturities (4,743) (3,544) Total long-term debt $ 1,880 $ 2,215 Receivables pledged as collateral $ 2,343 $ 1,859 Interest rates on foreign borrowings are based on Euribor rates which range from 1.0% to 4.2%. The Company factors receivables from one of its customers. The Company accounts for the pledge of receivables under this agreement as short-term debt and continues to carry the receivables on its consolidated condensed balance sheets. Debt issuance costs The Company incurred debt issuance costs as it pertains to the Fifth Amendment in the amount of $45 and combined the amount with the remaining unamortized debt issuance costs prior to the amendment for a total of $86, which is included in the consolidated condensed balance sheets as a deferred charge in other current assets, net of amortization of $2 and $205 at March 31, 2021 and September 30, 2020, respectively. Other On April 10, 2020, the Company entered into an unsecured promissory note under the Paycheck Protection Program (the “PPP Loan”). The PPP Loan to the Company was made through JPMorgan Chase Bank, N.A., a national banking association and the Company’s existing lender. The note has an aggregate principal amount of approximately $5,025, of which $261 was repaid in fiscal 2020 and has a two year term. The interest rate on the PPP Loan is 0.98%, which was deferred for the first six months of the term of the loan. The promissory note evidencing the PPP Loan contains customary events of default. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owed from the Company, and/or filing suit and obtaining judgment against the Company. The loan proceeds were received on April 10, 2020 and were used for payroll payments. As of March 31, 2021 and September 30, 2020, the PPP loan balance was $4,764. PPP Loan recipients can apply for and potentially be granted forgiveness for all or a portion of loans granted under the Paycheck Protection Program. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payroll costs. As of March 31, 2021, based on guidance from the U.S. Department of Treasury, the Company is in the process of applying for forgiveness for the PPP Loan. However, no assurance is provided that the Company will obtain forgiveness of the PPP Loan in whole or in part. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 27, 2020, the Consolidated Appropriations Act, 2021 (the "Appropriations Act") was enacted in response to the COVID-19 pandemic. The Appropriations Act, among other actions temporarily extends through December 31, 2025 certain expiring tax credit and other provisions. Additionally, the Appropriations Act enacts new provisions and extends certain provisions originated within the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), enacted on March 27, 2020. The CARES Act included provisions relating to refundable payroll tax credits, deferral of certain payment requirements for the employer portion of Social Security taxes, net operating loss carryback periods and temporarily increasing the amount of net operating losses that corporations can use to offset income, alternative minimum tax ("AMT") credit refunds, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The Appropriations Act and CARES Act did not materially affect the Company’s income tax provision, deferred tax assets and liabilities, or related taxes payable through the second quarter of fiscal 2021. The Company will continue to assess the implications of these and any new relief provisions on its consolidated condensed financial statements but does not expect the impact to be material. For each interim reporting period, the Company makes an estimate of the effective tax rate it expects to be applicable for the full fiscal year for its operations. This estimated effective rate is used in providing for income taxes on a year-to-date basis. The Company’s effective tax rate through the first six months of fiscal 2021 was (97)%, compared with (8)% for the same period of fiscal 2020. The decrease in the effective rate was primarily attributable to tax benefits from adjusting deferred taxes recorded in Italy recognized on a discrete basis, partially offset by changes in jurisdictional mix of income in fiscal 2021 compared to the same period of fiscal 2020. The effective tax rate differs from the U.S. federal statutory rate due primarily to the valuation allowance against the Company’s U.S. deferred tax assets and income in foreign jurisdictions that are taxed at different rates than the U.S. statutory tax rate. Recent positive evidence related to the potential or partial release of the Company's valuation allowance includes profitable U.S. results, however, there continues to be uncertainty as a result of the ongoing COVID-19 pandemic. As such, the Company has maintained a full valuation allowance on its U.S. net deferred tax assets in the second quarter of fiscal 2021. It is reasonably possible that sufficient positive evidence required to release all, or a portion of the valuation allowance in the U.S. will exist within the next 12 months. |
Retirement Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans The Company and certain of its subsidiaries sponsor defined benefit pension plans covering some of its employees. The components of net periodic benefit cost of the Company’s defined benefit plans are as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Service cost $ 26 $ 85 $ 52 $ 170 Interest cost 175 208 350 416 Expected return on plan assets (355) (363) (711) (727) Amortization of net loss 211 188 423 376 Net periodic cost $ 57 $ 118 $ 114 $ 235 During the six months ended March 31, 2021 and 2020, the Company made $56 and $244 in contributions, respectively, to its defined benefit pension plans. The Company anticipates making $141 additional cash contributions to fund its defined benefit pension plans for the balance of fiscal 2021 and will use carryover balances from previous periods that have been available for use as a credit to reduce the amount of cash contributions that the Company is required to make to certain defined benefit plans in fiscal 2021. The Company's ability to elect to use such carryover balance will be determined based on the actual funded status of each defined benefit pension plan relative to the plan's minimum regulatory funding requirements. The Company does not anticipate making cash contributions above the minimum funding requirement to fund its defined benefit pension plans during the balance of fiscal 2021. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has awarded performance and restricted shares under the Company's 2007 Long-Term Incentive Plan ("2007 Plan") and the Company's 2007 Long-Term Incentive Plan (Amended and Restated as of November 16, 2016) (as further amended, the "2016 Plan"). The aggregate number of shares that may be awarded by the Company under the 2016 Plan is 1,196 shares, less any shares previously awarded and subject to an adjustment for the forfeiture of any unvested shares. In addition, shares that may be awarded are subject to individual recipient award limitations. The shares awarded under the 2016 Plan may be made in multiple forms, including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such award is exercisable no later than ten years from the date of the grant. The performance shares that have been awarded under both plans generally provide for the vesting of the Company’s common shares upon the Company achieving certain defined financial performance objectives during a period up to three years following the making of such award. The ultimate number of common shares of the Company that may be earned pursuant to an award ranges from a minimum of no shares to a maximum of 200% of the initial target number of performance shares awarded, depending on the level of the Company’s achievement of its financial performance objectives. Beginning in fiscal 2020, the maximum share that may be achieved was reduced to 150% of target. With respect to such performance shares, compensation expense is being accrued based on the probability of meeting the performance target. The Company is currently recognizing compensation expense for two tranches of awards where it has concluded it is probable that the performance criteria for that award will be met, while the Company is currently not recognizing compensation expense for one tranche of awards where it had concluded that it is not probable that the performance criteria for those awards will be met. During each future reporting period, such expense may be subject to adjustment based upon the Company's financial performance, which impacts the number of common shares that it expects to vest upon the completion of the performance period. The performance shares were valued at the closing market price of the Company’s common shares on the date of the grant. The vesting of such shares is determined at the end of the performance period. The Company has awarded restricted shares to its directors, officers, and other employees of the Company. The restricted shares were valued at the closing market price of the Company’s common shares on the date of the grant, and such value was recorded as unearned compensation. The unearned compensation is being amortized ratably over the restricted stock vesting period of one year or three years. In fiscal 2021, the Company granted 120 shares under the 2016 Plan to certain key employees. The awards were split into two tranches, 71 performance shares and 49 shares of time-based restricted shares, with a grant date fair value of $3.74 per share. The awards vest over three years. In fiscal 2021, the Company granted its non-employee directors 30 restricted shares under the 2016 Plan, with a grant date fair value of $9.08, which vests over one year. One award for 57 restricted shares vested. If all outstanding share awards are ultimately earned and vest at the target number of shares, there are approximately 442 shares that remain available for award at March 31, 2021. If any of the outstanding share awards are ultimately earned and vest at greater than the target number of shares, up to a maximum of 200% or 150% of such target, then a fewer number of shares would be available for award. Stock-based compensation under the 2016 Plan was $293 and $225 during the first six months of fiscal 2021 and 2020, respectively and $150 and $70 during the three months of fiscal 2021 and 2020, respectively. As of March 31, 2021, there was $778 of total unrecognized compensation cost related to the performance shares and restricted shares awarded under the 2016 Plan. The Company expects to recognize this cost over the next 1.5 years. |
Revenue
Revenue | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company produces forged components for (i) turbine engines that power commercial, business and regional aircraft as well as military aircraft and other military applications; (ii) airframe applications for a variety of aircraft; (iii) industrial gas and steam turbine engines for power generation units; and (iv) other commercial applications. The following table represents a breakout of total revenue by customer type: Three Months Ended Six Months Ended 2021 2020 2021 2020 Commercial revenue $ 9,247 $ 12,497 $ 20,000 $ 22,688 Military revenue 15,619 18,040 29,944 34,056 Total $ 24,866 $ 30,537 $ 49,944 $ 56,744 The following table represents revenue by the various components: Three Months Ended Six Months Ended Net Sales 2021 2020 2021 2020 Aerospace components for: Fixed wing aircraft $ 10,176 $ 14,065 $ 19,966 $ 25,400 Rotorcraft 7,872 6,813 15,603 13,661 Energy components for power generation units 5,102 3,417 11,565 6,074 Commercial product and other revenue 1,716 6,242 2,810 11,609 Total $ 24,866 $ 30,537 $ 49,944 $ 56,744 The following table represents revenue by geographic region based on the Company's selling operation locations: Three Months Ended Six Months Ended Net Sales 2021 2020 2021 2020 North America $ 20,019 $ 27,495 $ 39,784 $ 51,271 Europe 4,847 3,042 10,160 5,473 Total $ 24,866 $ 30,537 $ 49,944 $ 56,744 In addition to the disaggregated revenue information provided above, approximately 61% and 63% of total net sales as of March 31, 2021 and 2020, respectively, was recognized on an over-time basis because of the continuous transfer of control to the customer, with the remainder recognized at a point in time. Contract Balances The following table contains a roll forward of contract assets and contract liabilities for the period ended March 31, 2021: Contract assets - Beginning balance, October 1, 2020 $ 11,997 Additional revenue recognized over-time 30,428 Less amounts billed to the customers (28,860) Contract assets - Ending balance, March 31, 2021 $ 13,565 Contract liabilities (included within Accrued liabilities) - Beginning balance, October 1, 2020 $ (636) Payments received in advance of performance obligations (186) Performance obligations satisfied 754 Contract liabilities (included within Accrued liabilities) - Ending balance, March 31, 2021 $ (68) There were no impairment losses recorded on contract assets as of March 31, 2021 and September 30, 2020. Remaining performance obligations As of March 31, 2021, the Company has $82,305 of remaining performance obligations, the majority of which are anticipated to be completed within the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company may be involved in ordinary, routine legal actions. The Company cannot reasonably estimate future costs, if any, related to these matters; however, it does not believe any such matters are material to its financial condition or results of operations. The Company maintains various liability insurance coverages to protect its assets from losses arising out of or involving activities associated with ongoing and normal business operations; however, it is possible that the Company’s future operating results could be affected by future costs of litigation. A subsidiary of the Company, Quality Aluminum Forge, LLC ("Orange"), is currently a defendant in a lawsuit filed by Avco Corporation (“Avco”) in the Pennsylvania State Court, which was filed in August 2019, alleging that certain forged pistons delivered by the Orange plant failed to meet material specifications required by Avco. Avco also sued Arconic, Inc. (“Arconic”), which was the raw material supplier. No specific amount of damages was claimed by Avco and discovery has only recently begun. Orange disputes the allegations made by Avco and has made cross claims against Arconic. Previously, Orange was a defendant with respect to the same action in the United States District Court for the District of Rhode Island, which action was dismissed in connection with the movement of the matter to Pennsylvania State Court. Although the Company records reserves for legal disputes and other matters in accordance with GAAP, the ultimate outcomes of these types of matters are inherently uncertain. Actual results may differ significantly from current estimates. Given the current status of this matter, the Company has not accrued for any expected losses, as the Company has not deemed it probable and does not have a reasonable basis on which to establish an estimate. The Company is a defendant in a purported class action lawsuit filed in the Superior Court of California, County of Orange, which was filed in August 2017, arising from employee wage-and-hour claims under California law for alleged meal period, rest break, hourly and overtime wage calculation, timely wage payment and necessary expenditure indemnification violations; failure to maintain required wage records and furnish accurate wage statements; and unfair competition. A settlement has been reached and the Company received preliminary court approval on July 13, 2020. Class action notices were sent at the end of September and there were no objections to the settlement. On February 4, 2021, the court issued a tentative ruling to grant final approval. The final approval was granted and the previously recorded liability of $315 was paid on March 29, 2021. During fiscal 2020, the Company received notice from the International Association of Machinists and Aerospace Workers Union that they were disclaiming all interest in representing certain hourly employees at the Company’s Cleveland facility. Subsequently, the International Brotherhood of Boilermakers Union filed a petition to represent this same group of hourly employees. A mail ballot election took place in June 2020 and the National Labor Relations Board certified the International Brotherhood of Boilermakers as the elected representative of the Company’s hourly production employees. The Company’s obligations will be more fully understood following the ratification of a collective bargaining agreement. In the first quarter of fiscal 2021, the insurance claim related to the fire on December 26, 2018 at the Orange location was finalized with the Company's insurance carrier. The Company continues to work diligently to restore the final two of the six presses damaged in the fire. Certain vendor delays and certification processes have extended the restoration of these presses. They continue to be on track to be completed by the end of the third quarter of fiscal 2021; however, no assurances can be made that the restoration will be completed within such timeframe. Restoration of the building structure is nearly complete. Having finalized the claim with its insurance carrier, proceeds in the amount of $3,148 were received in December 2020. In addition, the Company received the remaining receivable balance from the landlord in January in the amount $648, resulting in having received cash proceeds of $4,646 in fiscal 2021. As noted in the table below, $3,099 was recognized within the consolidated condensed statements of operations and the balance was separately designated to the landlord for the continued restoration of the damaged building as prescribed under the lease arrangement. The Company has business interruption insurance coverage, of which $546 of the amount received was reflected within the cost of goods sold line within the consolidated condensed statement of operations. Balance sheet (Other receivables): September 30, 2020 $ 1,547 Cash proceeds (4,646) Capital expenditures (equipment) 2,495 Other expenses 58 Business interruption 546 March 31, 2021 $ — The tables below reflect how the proceeds received impacted the consolidated condensed statements of operations for the six months ended March 31, 2021 and 2020, respectively. Six Months Ended Balance without insurance proceeds Insurance recoveries Balance with insurance proceeds Cost of goods sold $ 43,882 (604) $ 43,278 Gain on insurance proceeds received $ — (2,495) $ (2,495) Income (loss) before income tax (benefit) expense $ (2,337) (3,099) $ 762 Six Months Ended Balance without insurance proceeds Insurance recoveries Balance with insurance proceeds Cost of goods sold $ 49,430 (2,287) $ 47,143 Gain on insurance proceeds received $ — (1,000) $ (1,000) Income (loss) before income tax (benefit) expense $ (1,502) (3,287) $ 1,785 The following table demonstrates the total settlement amount since December 26, 2018: Total Claim Property & damage ** $ 20,364 Extra expense & mitigation expense 4,404 Business interruption 2,932 $ 27,700 **$3,640 of total was directed to the landlord of the property for the restoration of the building as prescribed by the lease arrangement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited consolidated condensed financial statements include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the "Company"). All significant intercompany accounts and transactions have been eliminated in consolidation. The U.S. dollar is the functional currency for all of the Company’s U.S. operations and its non-operating subsidiaries. For these operations, all gains and losses from completed currency transactions are included in income. The functional currency for the Company's other non-U.S. subsidiaries is the Euro. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange for the period. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the unaudited consolidated condensed financial statements. These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2020 Annual Report on Form 10-K. The year-end consolidated balance sheet data was derived from the audited financial statements and disclosures required by accounting principles generally accepted in the United States ("U.S."). The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year. |
Net Income/(Loss) per Share | Net Income/(Loss) per ShareThe Company’s net income and loss per basic share has been computed based on the weighted-average number of common shares outstanding. |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " and subsequent updates. ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The new guidance will replace the current incurred loss approach with an expected loss model. The new expected credit loss impairment model will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt instruments, net investments in leases, loan commitments and standby letters of credit. Upon initial recognition of the exposure, the expected credit loss model requires entities to estimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses should consider historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. Financial instruments with similar risk characteristics should be grouped together when estimating expected credit losses. ASU 2016-13 does not prescribe a specific method to make the estimate, so its application will require significant judgment. ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. However, in November 2019, the FASB issued ASU 2019-10, "Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)," which defers the effective date for public filers that are considered smaller reporting companies ("SRC"), as defined by the Securities and Exchange Commission, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Because SIFCO is considered a SRC, the Company does not need to implement ASU 2016-13 until October 1, 2023. The Company will continue to evaluate the effect of adopting ASU 2016-13 will have on the Company's results within the consolidated condensed statements of operations and financial condition. In December 2019, the FASB issued ASU 2019-12, " Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" was issued to (i) reduce the complexity of the standard by removing certain exceptions to the general principles in Topic 740 and (ii) improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective beginning October 1, 2021. The Company continues to evaluate the effect adopting this ASU will have on the Company's results within the consolidated condensed statements of operations and financial condition. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This ASU, along with recently issued ASU 2021-01, which further clarifies the scope of Topic 848, is available immediately and may be implemented in any period prior to the guidance expiration on December 31, 2022. The Company is currently evaluating these standards to determine whether it will apply the optional expedients and exceptions. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Dilutive Effect of Company's Restricted Shares and Performance Shares | The dilutive effect is as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Net Income (loss) $ (1,491) $ 3,260 $ 1,502 $ 1,919 Weighted-average common shares outstanding (basic and diluted) 5,777 5,679 5,735 5,645 Effect of dilutive securities: Restricted shares — 89 144 102 Performance shares — 2 53 1 Weighted-average common shares outstanding (basic and diluted) 5,777 5,770 5,932 5,748 Net income (loss) per share – basic: $ (0.26) $ 0.57 $ 0.26 $ 0.34 Net income (loss) per share – diluted: $ (0.26) $ 0.57 $ 0.25 $ 0.33 Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share 411 215 217 147 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of: March 31, September 30, Raw materials and supplies $ 6,379 $ 6,548 Work-in-process 3,564 3,786 Finished goods 5,625 5,235 Total inventories $ 15,568 $ 15,569 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: March 31, September 30, Foreign currency translation adjustment $ (5,274) $ (5,257) Retirement plan liability adjustment, net of tax (7,788) (8,211) Total accumulated other comprehensive loss $ (13,062) $ (13,468) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost Components, Supplemental Cash Flow and Other information, and Weighted-Average Remaining Lease Term Schedules | The components of lease expense were as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Finance lease expense: Amortization of right-of use assets on finance leases $ 13 $ 14 $ 27 $ 27 Interest on lease liabilities 1 1 2 3 Operating lease expense: 540 543 1,092 1,079 Variable lease cost: 35 39 69 79 Total lease expense $ 589 $ 597 $ 1,190 $ 1,188 Supplemental cash flow and other information related to leases were as follows: March 31, March 31, Other Information Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 1,097 $ 1,086 Operating cash flows from finance leases 2 3 Financing cash flows from finance leases 29 28 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 43 278 March 31, September 30, Weighted-average remaining lease term (years): Finance leases 1.2 1.6 Operating leases 14.8 15.2 Weighted-average discount rate: Finance leases 4.4 % 4.8 % Operating leases 5.9 % 5.9 % |
Schedule of Supplemental Balance Sheet Information Schedule | The following table presents the impact of leasing on the consolidated condensed balance sheet. Classification in the consolidated condensed balance sheets March 31, September 30, Assets: Finance lease assets Property, plant and equipment, net $ 62 $ 89 Operating lease assets Operating lease right-of-use assets, net 16,405 17,021 Total lease assets $ 16,467 $ 17,110 Current liabilities: Finance lease liabilities Current maturities of long-term debt $ 41 $ 58 Operating lease liabilities Short-term operating lease liabilities 796 991 Non-current liabilities: Finance lease liabilities Long-term debt, net of current maturities 10 22 Operating lease liabilities Long-term operating lease liabilities, net of short-term 15,825 16,188 Total lease liabilities $ 16,672 $ 17,259 |
Schedule of Maturities of Finance Lease Liabilities by Fiscal Year Schedule | Future minimum lease under non-cancellable leases at March 31, 2021 were as follows: Finance Leases Operating Leases Year ending September 30, 2021 (excluding the six months ended March 31, 2021) $ 27 $ 852 2022 21 1,696 2023 4 1,633 2024 — 1,647 2025 — 1,644 Thereafter — 17,532 Total lease payments $ 52 $ 25,004 Less: Imputed interest (1) (8,383) Present value of lease liabilities $ 51 $ 16,621 |
Schedule of Maturities of Operating Lease Liabilities by Fiscal Year Schedule | Future minimum lease under non-cancellable leases at March 31, 2021 were as follows: Finance Leases Operating Leases Year ending September 30, 2021 (excluding the six months ended March 31, 2021) $ 27 $ 852 2022 21 1,696 2023 4 1,633 2024 — 1,647 2025 — 1,644 Thereafter — 17,532 Total lease payments $ 52 $ 25,004 Less: Imputed interest (1) (8,383) Present value of lease liabilities $ 51 $ 16,621 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of: March 31, September 30, Revolving credit agreement $ 7,742 $ 12,870 Foreign subsidiary borrowings 6,623 5,759 Finance lease obligations 51 80 Other, net of unamortized debt issuance costs $(37) and $(20), respectively 5,651 5,911 Total debt 20,067 24,620 Less – current maturities (17,525) (20,014) Total long-term debt $ 2,542 $ 4,606 |
Schedule of Foreign Debt | Foreign debt consists of: March 31, September 30, Term loan $ 2,661 $ 2,670 Short-term borrowings 2,147 2,620 Factor 1,815 469 Total debt $ 6,623 $ 5,759 Less – current maturities (4,743) (3,544) Total long-term debt $ 1,880 $ 2,215 Receivables pledged as collateral $ 2,343 $ 1,859 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The components of net periodic benefit cost of the Company’s defined benefit plans are as follows: Three Months Ended Six Months Ended 2021 2020 2021 2020 Service cost $ 26 $ 85 $ 52 $ 170 Interest cost 175 208 350 416 Expected return on plan assets (355) (363) (711) (727) Amortization of net loss 211 188 423 376 Net periodic cost $ 57 $ 118 $ 114 $ 235 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table represents a breakout of total revenue by customer type: Three Months Ended Six Months Ended 2021 2020 2021 2020 Commercial revenue $ 9,247 $ 12,497 $ 20,000 $ 22,688 Military revenue 15,619 18,040 29,944 34,056 Total $ 24,866 $ 30,537 $ 49,944 $ 56,744 The following table represents revenue by the various components: Three Months Ended Six Months Ended Net Sales 2021 2020 2021 2020 Aerospace components for: Fixed wing aircraft $ 10,176 $ 14,065 $ 19,966 $ 25,400 Rotorcraft 7,872 6,813 15,603 13,661 Energy components for power generation units 5,102 3,417 11,565 6,074 Commercial product and other revenue 1,716 6,242 2,810 11,609 Total $ 24,866 $ 30,537 $ 49,944 $ 56,744 The following table represents revenue by geographic region based on the Company's selling operation locations: Three Months Ended Six Months Ended Net Sales 2021 2020 2021 2020 North America $ 20,019 $ 27,495 $ 39,784 $ 51,271 Europe 4,847 3,042 10,160 5,473 Total $ 24,866 $ 30,537 $ 49,944 $ 56,744 |
Schedule of Contract Assets and Liabilities | The following table contains a roll forward of contract assets and contract liabilities for the period ended March 31, 2021: Contract assets - Beginning balance, October 1, 2020 $ 11,997 Additional revenue recognized over-time 30,428 Less amounts billed to the customers (28,860) Contract assets - Ending balance, March 31, 2021 $ 13,565 Contract liabilities (included within Accrued liabilities) - Beginning balance, October 1, 2020 $ (636) Payments received in advance of performance obligations (186) Performance obligations satisfied 754 Contract liabilities (included within Accrued liabilities) - Ending balance, March 31, 2021 $ (68) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Insurance Recoveries Within Consolidated Condensed Financial Statements | The Company has business interruption insurance coverage, of which $546 of the amount received was reflected within the cost of goods sold line within the consolidated condensed statement of operations. Balance sheet (Other receivables): September 30, 2020 $ 1,547 Cash proceeds (4,646) Capital expenditures (equipment) 2,495 Other expenses 58 Business interruption 546 March 31, 2021 $ — The tables below reflect how the proceeds received impacted the consolidated condensed statements of operations for the six months ended March 31, 2021 and 2020, respectively. Six Months Ended Balance without insurance proceeds Insurance recoveries Balance with insurance proceeds Cost of goods sold $ 43,882 (604) $ 43,278 Gain on insurance proceeds received $ — (2,495) $ (2,495) Income (loss) before income tax (benefit) expense $ (2,337) (3,099) $ 762 Six Months Ended Balance without insurance proceeds Insurance recoveries Balance with insurance proceeds Cost of goods sold $ 49,430 (2,287) $ 47,143 Gain on insurance proceeds received $ — (1,000) $ (1,000) Income (loss) before income tax (benefit) expense $ (1,502) (3,287) $ 1,785 |
Schedule of Total Settlement Amount | The following table demonstrates the total settlement amount since December 26, 2018: Total Claim Property & damage ** $ 20,364 Extra expense & mitigation expense 4,404 Business interruption 2,932 $ 27,700 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net Income (loss) | $ (1,491) | $ 3,260 | $ 1,502 | $ 1,919 |
Weighted-average common shares outstanding (basic and diluted) (in shares) | 5,777,000 | 5,679,000 | 5,735,000 | 5,645,000 |
Effect of dilutive securities: | ||||
Weighted-average common shares outstanding (basic and diluted) (in shares) | 5,777,000 | 5,770,000 | 5,932,000 | 5,748,000 |
Net income (loss) per share | ||||
Net income (loss) per share – basic (in dollars per share) | $ (0.26) | $ 0.57 | $ 0.26 | $ 0.34 |
Net income (loss) per share – diluted (in dollars per share) | $ (0.26) | $ 0.57 | $ 0.25 | $ 0.33 |
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares) | 411,000 | 215,000 | 217,000 | 147,000 |
Restricted shares | ||||
Effect of dilutive securities: | ||||
Restricted and performance shares (in shares) | 0 | 89,000 | 144,000 | 102,000 |
Net income (loss) per share | ||||
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share (in shares) | 0 | |||
Performance shares | ||||
Effect of dilutive securities: | ||||
Restricted and performance shares (in shares) | 0 | 2,000 | 53,000 | 1,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 6,379 | $ 6,548 |
Work-in-process | 3,564 | 3,786 |
Finished goods | 5,625 | 5,235 |
Total inventories | $ 15,568 | $ 15,569 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Percentage of inventories determined using LIFO method | 49.00% | 47.00% |
Additional amount that would have been reported in inventory if FIFO method had been used | $ 8,621 | $ 8,286 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | $ 47,708 | $ 49,141 | $ 45,523 | $ 38,690 | $ 35,245 | $ 36,054 |
Foreign currency translation adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | (5,274) | (5,257) | ||||
Retirement plan liability adjustment, net of tax | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | (7,788) | (8,211) | ||||
Total accumulated other comprehensive loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total accumulated other comprehensive loss | $ (13,062) | $ (12,970) | $ (13,468) | $ (12,809) | $ (12,928) | $ (13,309) |
Leases - Lease Cost Components
Leases - Lease Cost Components Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Finance lease expense: | ||||
Amortization of right-of use assets on finance leases | $ 13 | $ 14 | $ 27 | $ 27 |
Interest on lease liabilities | 1 | 1 | 2 | 3 |
Operating lease expense: | 540 | 543 | 1,092 | 1,079 |
Variable lease cost: | 35 | 39 | 69 | 79 |
Total lease expense | $ 589 | $ 597 | $ 1,190 | $ 1,188 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
ASSETS | ||
Property, plant and equipment, net | $ 62 | $ 89 |
Operating lease right-of-use assets, net | 16,405 | 17,021 |
Total lease assets | 16,467 | 17,110 |
Current liabilities: | ||
Current maturities of long-term debt | 41 | 58 |
Short-term operating lease liabilities | 796 | 991 |
Non-current liabilities: | ||
Long-term debt, net of current maturities | 10 | 22 |
Long-term operating lease liabilities, net of short-term | 15,825 | 16,188 |
Total lease liabilities | $ 16,672 | $ 17,259 |
Finance lease, asset, statement of financial position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Current finance lease, liability, statement of financial position [Extensible List] | Current maturities of long-term debt | Current maturities of long-term debt |
Noncurrent finance lease, liability, statement of financial position [Extensible List] | Total long-term debt | Total long-term debt |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Schedule (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in measurement of liabilities: | ||
Operating cash flows from operating leases | $ 1,097 | $ 1,086 |
Operating cash flows from finance leases | 2 | 3 |
Financing cash flows from finance leases | 29 | 28 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating leases | $ 43 | $ 278 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate Schedule (Details) | Mar. 31, 2021 | Sep. 30, 2020 |
Weighted-average remaining lease term (years): | ||
Finance leases | 1 year 2 months 12 days | 1 year 7 months 6 days |
Operating leases | 14 years 9 months 18 days | 15 years 2 months 12 days |
Weighted-average discount rate: | ||
Finance leases | 4.40% | 4.80% |
Operating leases | 5.90% | 5.90% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities by Fiscal Year Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Finance Leases | ||
2021 (excluding the six months ended March 31, 2021) | $ 27 | |
2022 | 21 | |
2023 | 4 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total lease payments | 52 | |
Less: Imputed interest | (1) | |
Present value of lease liabilities | 51 | $ 80 |
Operating Leases | ||
2021 (excluding the six months ended March 31, 2021) | 852 | |
2022 | 1,696 | |
2023 | 1,633 | |
2024 | 1,647 | |
2025 | 1,644 | |
Thereafter | 17,532 | |
Total lease payments | 25,004 | |
Less: Imputed interest | (8,383) | |
Present value of lease liabilities | $ 16,621 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 51 | $ 80 |
Total debt | 20,067 | 24,620 |
Less – current maturities | (17,525) | (20,014) |
Total long-term debt | 2,542 | 4,606 |
Unamortized debt issuance costs | (37) | (20) |
Other, net of unamortized debt issuance costs $(37) and $(20), respectively | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 5,651 | 5,911 |
Revolving credit agreement | Revolving credit agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 7,742 | 12,870 |
Foreign subsidiary borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 6,623 | $ 5,759 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Feb. 19, 2021USD ($) | Apr. 10, 2020USD ($) | Mar. 31, 2021USD ($)invoice | Sep. 30, 2020USD ($) | Dec. 17, 2018USD ($) | Aug. 08, 2018USD ($) |
Line of Credit Facility [Line Items] | ||||||
Number of customer invoices factored | invoice | 1 | |||||
Foreign subsidiary borrowings | ||||||
Line of Credit Facility [Line Items] | ||||||
Receivables pledged as collateral | $ 2,343,000 | $ 1,859,000 | ||||
Remaining debt balance | $ 6,623,000 | $ 5,759,000 | ||||
Foreign subsidiary borrowings | Euribor | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Euribor variable interest rates | 1.00% | |||||
Foreign subsidiary borrowings | Euribor | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Euribor variable interest rates | 4.20% | |||||
Revolving credit agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Percentage of stock pledged on credit agreement | 66.67% | |||||
Credit Agreement | Revolving credit agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Fixed charge coverage ratio | 1.1 | |||||
Percent availability under revolving commitment | 10.00% | 12.50% | ||||
Debt instrument, covenant combined commitment percentage | 10.00% | |||||
Debt instrument, covenant combined borrowing base, percentage | 10.00% | |||||
Debt instrument, covenant combined borrowing base, amount | $ 2,000,000 | |||||
Receivables pledged as collateral | 26,619,000 | $ 26,964,000 | ||||
Credit Agreement | Revolving credit agreement | Revolving credit agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 28,000,000 | 35,000,000 | 35,000,000 | |||
Accordion feature, increase limit | 10,000,000 | |||||
Remaining borrowing capacity | $ 18,067,000 | $ 13,284,000 | ||||
Weighted average interest rate, revolving credit facility | 1.87% | |||||
Commitment fee percentage | 0.25% | 0.25% | ||||
Debt issuance costs incurred | $ 45,000 | |||||
Remaining unamortized amount | 86,000 | |||||
Revolving line of credit, accumulated amortization of debt issuance costs | $ 2,000 | $ 205,000 | ||||
Credit Agreement | Revolving credit agreement | Revolving credit agreement | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 1.75% | |||||
2018 Credit Agreement | Revolving credit agreement | Revolving credit agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 30,000,000 | |||||
Weighted average interest rate, revolving credit facility | 1.70% | |||||
2018 Credit Agreement | Revolving credit agreement | Revolving credit agreement | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 1.50% | |||||
Fifth Amendment to Credit Agreement and First Amendment to Export Credit Agreement | Revolving credit agreement | Revolving credit agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | 35,000,000 | |||||
Export Credit Facility | Revolving credit agreement | Revolving credit agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 7,000,000 | $ 5,000,000 | ||||
Weighted average interest rate, revolving credit facility | 1.40% | 1.20% | ||||
Export Credit Facility | Revolving credit agreement | Revolving credit agreement | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on LIBOR | 1.25% | 1.00% | ||||
PPP Loan | Unsecured Promissory Note | ||||||
Line of Credit Facility [Line Items] | ||||||
Face amount | $ 5,025,000 | |||||
Debt instrument, term | 2 years | |||||
Interest rate | 0.98% | |||||
Deferral term | 6 months | |||||
PPP Loan | Unsecured Promissory Note | JPMorgan Chase Bank, N.A. | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment debt | $ 261,000 | |||||
Remaining debt balance | $ 4,764,000 | $ 4,764,000 |
Debt - Schedule of Foreign Subs
Debt - Schedule of Foreign Subsidiary Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Line of Credit Facility [Line Items] | ||
Less – current maturities | $ (9,783) | $ (7,144) |
Total long-term debt | 2,542 | 4,606 |
Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 6,623 | 5,759 |
Less – current maturities | (4,743) | (3,544) |
Total long-term debt | 1,880 | 2,215 |
Receivables pledged as collateral | 2,343 | 1,859 |
Term loan | Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 2,661 | 2,670 |
Short-term borrowings | Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | 2,147 | 2,620 |
Factor | Foreign subsidiary borrowings | ||
Line of Credit Facility [Line Items] | ||
Total debt | $ 1,815 | $ 469 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate, percent | (97.00%) | (8.00%) |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 26 | $ 85 | $ 52 | $ 170 |
Interest cost | 175 | 208 | 350 | 416 |
Expected return on plan assets | (355) | (363) | (711) | (727) |
Amortization of net loss | 211 | 188 | 423 | 376 |
Net periodic cost | $ 57 | $ 118 | $ 114 | $ 235 |
Retirement Benefit Plans - Narr
Retirement Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Contributions amount in defined benefit pension plans | $ 56 | $ 244 |
Additional cash contributions planned for fiscal 2021 | $ 141 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - 2016 Plan $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)tranche$ / sharesshares | Mar. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate number of shares that may be awarded (in shares) | 1,196,000 | 1,196,000 | ||
Exercise period for shares awarded under plan | 10 years | |||
Outstanding share awards that may be awarded (in shares) | 442,000 | 442,000 | ||
Outstanding share awards earned and issued at greater than the target number of shares | 200.00% | |||
Outstanding share awards earned and issued at greater than the target number of shares next fiscal year | 150.00% | |||
Share-based compensation expense (benefit) | $ | $ 150 | $ 70 | $ 293 | $ 225 |
Total unrecognized compensation cost related to performance and restricted shares | $ | $ 778 | $ 778 | ||
Period of recognized compensation cost (in years) | 1 year 6 months | |||
Key employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of tranches in award | tranche | 2 | |||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period (in years) | 3 years | |||
Performance shares | Key employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted in period (in shares) | 71,000 | |||
Performance shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares earned pursuant to award (in shares) | 0 | |||
Performance shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common shares earned as percentage of initial target number shares awarded | 200.00% | |||
Common shares earned as percentage of initial target number shares awarded next fiscal year | 150.00% | |||
Restricted shares | Key employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted in period (in shares) | 49,000 | |||
Restricted shares | Non-employee directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 1 year | |||
Shares granted in period (in shares) | 30,000 | |||
Shares granted in period, grant date fair value (in dollars per share) | $ / shares | $ 9.08 | |||
Vested in period (in shares) | 57,000 | |||
Restricted shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 1 year | |||
Restricted shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Performance and Restricted Shares | Key employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Shares granted in period (in shares) | 120,000 | |||
Shares granted in period, grant date fair value (in dollars per share) | $ / shares | $ 3.74 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 24,866 | $ 30,537 | $ 49,944 | $ 56,744 |
Revenue from Contract with Customer | Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk | 61.00% | 63.00% | ||
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,019 | 27,495 | $ 39,784 | $ 51,271 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,847 | 3,042 | 10,160 | 5,473 |
Fixed wing aircraft | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,176 | 14,065 | 19,966 | 25,400 |
Rotorcraft | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,872 | 6,813 | 15,603 | 13,661 |
Energy components for power generation units | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,102 | 3,417 | 11,565 | 6,074 |
Commercial product and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,716 | 6,242 | 2,810 | 11,609 |
Commercial revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,247 | 12,497 | 20,000 | 22,688 |
Military revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 15,619 | $ 18,040 | $ 29,944 | $ 34,056 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Sep. 30, 2020 | |
Change In Contract With Customer, Assets [Roll Forward] | ||
Contract assets - Beginning balance | $ 11,997,000 | |
Additional revenue recognized over-time | 30,428,000 | |
Less amounts billed to the customers | (28,860,000) | |
Contract assets - Ending balance | 13,565,000 | $ 11,997,000 |
Change In Contract With Customer, Liability [Roll Forward] | ||
Contract liabilities (included within Accrued liabilities) - Beginning balance | (636,000) | |
Payments received in advance of performance obligations | (186,000) | |
Performance obligations satisfied | 754,000 | |
Contract liabilities (included within Accrued liabilities) - Ending balance | (68,000) | (636,000) |
Impairment loss on contract assets | $ 0 | $ 0 |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 82,305 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | Mar. 29, 2021USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($)press | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)press | Mar. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |||||||
Insurance proceeds received | $ 4,101 | $ 4,500 | |||||
Proceeds from loss contingency receivable | $ 648 | 4,646 | |||||
Gain on insurance proceeds received | $ 0 | $ 1,000 | 2,495 | 1,000 | |||
Recoverable amounts of business interruption expenses | 546 | ||||||
Quality Aluminum Forge, LLC Manufacturing Facility Fire | |||||||
Loss Contingencies [Line Items] | |||||||
Insurance proceeds received | $ 3,148 | ||||||
Proceeds from loss contingency receivable | 4,646 | ||||||
Gain on insurance proceeds received | 2,495 | 1,000 | |||||
Recoverable amounts of business interruption expenses | 546 | ||||||
Quality Aluminum Forge, LLC Manufacturing Facility Fire | Income (loss) before income tax (benefit) expense | |||||||
Loss Contingencies [Line Items] | |||||||
Gain on insurance proceeds received | $ 3,099 | $ 3,287 | |||||
Quality Aluminum Forge, LLC Manufacturing Facility Fire | Damage from Fire, Explosion or Other Hazard | |||||||
Loss Contingencies [Line Items] | |||||||
Number of presses to be restored | press | 2 | 2 | |||||
Number of presses damaged | press | 6 | 6 | |||||
Class Action Suit in Superior Court of California, Orange County - Violation of Wage-and-hour Laws | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency paid | $ 315 |
Commitments and Contingencies_2
Commitments and Contingencies - Insurance Receivable Balance Sheet Rollforward (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended |
Jan. 31, 2021 | Mar. 31, 2021 | |
Insurance Recoveries Within Consolidated Condensed Financial Statements [Roll Forward] | ||
Cash proceeds | $ (648) | $ (4,646) |
Business interruption | 546 | |
Insurance recoveries | ||
Insurance Recoveries Within Consolidated Condensed Financial Statements [Roll Forward] | ||
Other receivable, beginning balance | 1,547 | |
Cash proceeds | (4,646) | |
Other expenses | 58 | |
Business interruption | 546 | |
Other receivable, ending balance | 0 | |
Insurance recoveries | Equipment | ||
Insurance Recoveries Within Consolidated Condensed Financial Statements [Roll Forward] | ||
Capital expenditures (equipment) | $ 2,495 |
Commitments and Contingencies_3
Commitments and Contingencies - Insurance Proceeds Impact on Consolidated Condensed Statements of Operation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Loss Contingencies [Line Items] | ||||
Gain on insurance proceeds received | $ 0 | $ (1,000) | $ (2,495) | $ (1,000) |
Cost of goods sold | 22,123 | 24,260 | 43,278 | 47,143 |
Income (loss) before income tax (benefit) expense | $ (1,326) | $ 3,221 | 762 | 1,785 |
Balance without insurance proceeds | ||||
Loss Contingencies [Line Items] | ||||
Cost of goods sold, balance without insurance proceeds | 43,882 | 49,430 | ||
Gain on insurance proceeds received | 0 | 0 | ||
Income (loss) before income tax (benefit) expense, balance without insurance proceeds | (2,337) | (1,502) | ||
Insurance recoveries | ||||
Loss Contingencies [Line Items] | ||||
Gain on insurance proceeds received | (2,495) | (1,000) | ||
Insurance recoveries | Cost of goods sold | ||||
Loss Contingencies [Line Items] | ||||
Gain on insurance proceeds received | (604) | (2,287) | ||
Insurance recoveries | Income (loss) before income tax (benefit) expense | ||||
Loss Contingencies [Line Items] | ||||
Gain on insurance proceeds received | $ (3,099) | $ (3,287) |
Commitment and Contingencies -
Commitment and Contingencies - Total Settlement (Details) $ in Thousands | 27 Months Ended |
Mar. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | |
Proceeds directed to landlord | $ 3,640 |
Insurance recoveries | Insurance Settlement | |
Loss Contingencies [Line Items] | |
Property and damage | 20,364 |
Extra expense & mitigation expense | 4,404 |
Business interruption | 2,932 |
Total settlement amount | $ 27,700 |