Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 24, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | usap | |
Entity Registrant Name | UNIVERSAL STAINLESS & ALLOY PRODUCTS INC | |
Entity Central Index Key | 931,584 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,265,560 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 63,737 | $ 48,875 |
Cost of products sold | 54,465 | 44,630 |
Gross margin | 9,272 | 4,245 |
Selling, general and administrative expenses | 5,207 | 4,729 |
Operating income (loss) | 4,065 | (484) |
Interest expense and other financing costs | 1,206 | 1,003 |
Other (income) expense, net | (43) | (6) |
Income (loss) before income taxes | 2,902 | (1,481) |
Provision (benefit) for income taxes | 777 | (262) |
Net income (loss) | $ 2,125 | $ (1,219) |
Net income (loss) per common share - Basic | $ 0.29 | $ (0.17) |
Net income (loss) per common share - Diluted | $ 0.28 | $ (0.17) |
Weighted average shares of common stock outstanding | ||
Basic | 7,261,966 | 7,216,447 |
Diluted | 7,492,972 | 7,216,447 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 2,125 | $ (1,219) |
Other Comprehensive income (loss), net of tax | ||
Unrealized income (loss) on foreign currency contracts | (58) | (31) |
Comprehensive income (loss) | $ 2,067 | $ (1,250) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash | $ 228 | $ 207 |
Accounts receivable (less allowance for doubtful accounts of $456 and $456, respectively) | 33,593 | 24,990 |
Inventory, net | 119,961 | 116,663 |
Other current assets | 4,047 | 4,404 |
Total current assets | 157,829 | 146,264 |
Property, plant and equipment, net | 173,870 | 174,444 |
Other long-term assets | 8,854 | 523 |
Total assets | 340,553 | 321,231 |
Current liabilities: | ||
Accounts payable | 28,371 | 34,898 |
Accrued employment costs | 3,501 | 4,075 |
Current portion of long-term debt | 6,718 | 4,707 |
Other current liabilities | 1,177 | 1,268 |
Total current liabilities | 39,767 | 44,948 |
Long-term debt, net | 93,187 | 75,006 |
Deferred income taxes | 10,361 | 9,605 |
Other long-term liabilities, net | 3,015 | 4 |
Total liabilities | 146,330 | 129,563 |
Stockholders’ equity: | ||
Senior preferred stock, par value $0.001 per share; 1,980,000 shares authorized; 0 shares issued and outstanding | ||
Common stock, par value $0.001 per share; 20,000,000 shares authorized; 7,558,040 and 7,550,642 shares issued, respectively | 8 | 8 |
Additional paid-in capital | 59,001 | 58,514 |
Other comprehensive income (loss) | (151) | (93) |
Retained earnings | 137,655 | 135,529 |
Treasury stock, at cost; 292,855 common shares held | (2,290) | (2,290) |
Total stockholders’ equity | 194,223 | 191,668 |
Total liabilities and stockholders’ equity | $ 340,553 | $ 321,231 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 456 | $ 456 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,980,000 | 1,980,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,558,040 | 7,550,642 |
Treasury stock at cost, common shares held | 292,855 | 292,855 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | ||
Net income (loss) | $ 2,125 | $ (1,219) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 4,756 | 4,717 |
Deferred income tax | 772 | (296) |
Share-based compensation expense | 326 | 534 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (8,604) | (6,523) |
Inventory, net | (3,832) | (4,499) |
Accounts payable | (7,699) | 9,423 |
Accrued employment costs | (499) | (1,371) |
Income taxes | 5 | 32 |
Other, net | 296 | (790) |
Net cash (used in) provided by operating activities | (12,354) | 8 |
Investing Activity: | ||
Capital expenditures | (2,485) | (1,413) |
Net cash (used in) investing activity | (2,485) | (1,413) |
Financing Activities: | ||
Borrowings under revolving credit facility | 128,729 | 71,863 |
Payments on revolving credit facility | (107,080) | (68,721) |
Proceeds under New Markets Tax Credit financing | 3,010 | |
Payments on term loan facility, capital leases, and notes | (1,172) | (1,598) |
Payments on deferred financing costs | (351) | |
Proceeds from the common stock exercised | 54 | |
Net cash provided by financing activities | 23,190 | 1,544 |
Net increase in cash and restricted cash | 8,351 | 139 |
Cash and restricted cash at beginning of period | 207 | 75 |
Cash and restricted cash at end of period | $ 8,558 | $ 214 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flow (Parenthetical) $ in Thousands | Mar. 31, 2018USD ($) |
Statement Of Cash Flows [Abstract] | |
Cash | $ 228 |
Restricted cash included in other long-term assets | 8,330 |
Total cash and restricted cash | $ 8,558 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Business and Basis of Presentation | Note 1: Nature of Business and Basis of Presentation Universal Stainless & Alloy Products, Inc., and its wholly-owned subsidiaries (“Universal”, “we”, “our” or the “Company”), manufacture and market semi-finished and finished specialty steel products, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. Our manufacturing process involves melting, remelting, heat treating, hot and cold rolling, forging, machining and cold drawing of semi-finished and finished specialty steels. Our products are sold to service centers, forgers, rerollers, original equipment manufacturers and wire redrawers. Our customers further process our products for use in a variety of industries, including the aerospace, power generation, oil and gas, heavy equipment, and general industrial manufacturing industries. We also perform conversion services on materials supplied by customers. The accompanying unaudited consolidated statements include the accounts of Universal Stainless & Alloy Products, Inc. and its subsidiaries and are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reports and the instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. GAAP have been condensed or omitted pursuant to such regulations. However, we believe that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our most recently audited financial statements and the notes thereto included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission. In the opinion of management, the accompanying financial statements include all adjustments necessary to present a fair presentation of the consolidated financial statements for the periods shown. Interim results are not necessarily indicative of the operating results for the full fiscal year or any future period. The preparation of these financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Actual results may differ from our estimates. The consolidated financial statements include our accounts and the accounts of our wholly–owned subsidiaries. We also consolidate, regardless of our ownership percentage, variable interest entities (each a “VIE”) for which we are deemed to have a controlling financial interest. All intercompany transactions and balances have been eliminated. When we obtain an economic interest in an entity, we evaluate the entity to determine if the entity is a VIE, and if we are deemed to be a primary beneficiary. As a part of our evaluation, we are required to qualitatively assess if we are the primary beneficiary of the VIE based on whether we hold the power to direct those matters that most significantly impacted the activities of the VIE and the obligation to absorb losses or the right to receive the benefits of the VIE that could potentially be significant. Refer to Note 6, New Markets Tax Credit Financing Transaction, for a description of the VIE’s included in our consolidated financial statements. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of 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. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company’s product sales continue to generally be recognized when products are shipped (i.e. point in time). As such, the adoption of ASU 2014-09 had no material effect on revenue, gross margin or operating income; however, the Company has now presented the disclosures required by this new standard, refer to Note 3. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” or (“ASU 2016-18”). ASU 2016-18 is intended to clarify how entities present restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash and cash equivalents and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. When cash and cash equivalents and restricted cash are presented in more than one line item on the balance sheet, the guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and is to be applied retrospectively. We adopted ASU 2016-18 in the first quarter of 2018 and applied the guidance retrospectively to our prior period Consolidated Statement of Cash Flow. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all ASUs. Recently issued ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-2 “Leases (Topic 842)”. The ASU requires lessees to recognize most leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. The criteria for evaluating are similar to those applied in current leases accounting. This guidance is effective for annual and interim reporting periods beginning after December 15, 2018 with early adoption permitted. We are currently evaluating the impact of this guidance on our financial statements and the timing of adoption. In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income,” that will permit companies the option to reclassify stranded tax effects caused by the newly-enacted U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. Adoption of the ASU will be optional, and companies will need to disclose if it elects not to adopt the ASU. The ASU will be effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption will be permitted, including adoption in any interim period, for financial statements that have not yet been issued or made available for issuance. Entities will have the option to apply the amendments retrospectively or to record the reclassification as of the beginning of the period of adoption. We are currently evaluating the impact of this guidance on our financial statements and the timing of adoption. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 2: Net income (loss) per Common Share The following table sets forth the computation of basic and diluted net income (loss) per common share: Three months ended March 31, (dollars in thousands, except per share amounts) 2018 2017 Numerator: Net income (loss) $ 2,125 $ (1,219) Adjustment for interest expense on notes (A) - - Net income (loss), as adjusted $ 2,125 $ (1,219) Denominator: Weighted average number of shares of common stock outstanding 7,261,966 7,216,447 Weighted average effect of dilutive stock options and other stock compensation 231,006 - Weighted average number of shares of common stock outstanding, as adjusted 7,492,972 7,216,447 Net income per common share: Net income (loss) per common share - Basic $ 0.29 $ (0.17) Net income (loss) per common share - Diluted $ 0.28 $ (0.17) (A) An adjustment for interest expense on notes was excluded from the loss per share calculation for the three months ended March 31, 2017 as a result of the notes being antidilutive. We had options to purchase 338,550 and 625,800 shares of common stock outstanding at an average price of $33.84 and $30.17 for the three months ended March 31, 2018 and 2017, respectively. The shares were excluded in the computation of diluted net loss per common share for the three months ended March 31, 2017. These outstanding options were not included in the computation of diluted net loss per common share because their respective exercise prices were greater than the average market price of our common stock. The calculation of diluted net loss per common share for the three months ended March 31, 2017 excluded 406,847 shares, for the assumed conversion of notes as a result of being anti-dilutive. The calculation of diluted net loss per common share for the three months ended March 31, 2017 excluded 73,609 shares, for the assumed exercise of stock options as a result of being in a net loss position. In addition, the calculation of diluted net loss per share for the three months ended March 31, 2017 excluded 7,708 shares for the issuance of stock for restricted stock units. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 3: Revenue Recognition The Company’s revenues are primarily comprised of sales of products. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product. A performance obligation is a promise in a contract to transfer a distinct product to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales and other taxes are excluded from revenues. Invoiced shipping and handling costs are included in revenue. The Company’s revenue is primarily from products transferred to customers at a point in time. The Company recognizes revenue at the point in time in which the customer obtains control of the product, which is generally when product title passes to the customer upon shipment. The Company has evaluated the impact of the new revenue recognition standard on individual customer contracts. We have determined that there are certain customer agreements involving production of specified product grades and shapes that require revenue to be recognized over time, in advance of shipment, due to there being no alternative use for these grades and shapes without significant economic loss. Also, the Company maintains an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. Over-time recognition is a change from prior accounting, which was point-in-time for these products. The adoption of ASU 2014-09, using the modified retrospective approach, had no material effect on revenue, gross margin or operating income. Additionally, on January 1, 2018 the adoption had an immaterial impact on the company’s Consolidated Balance Sheet. As of March 31, 2018 the adoption created contract assets related to services performed, not yet billed. These amounts are included in Accounts Receivable in the Consolidated Balance Sheet as of March 31, 2018. Contract assets recorded as of March 31, 2018 totaled $2.1 million. The Company does not have any material contract liabilities as of March 31, 2018. The Company has elected the following practical expedients allowed under ASU 2014-09: • Shipping costs are not considered to be separate performance obligations. • Performance obligations are satisfied within one year from a given reporting date, consequently we omit disclosure of the transaction price apportioned to remaining performance obligations on open orders. The following summarizes our revenue by melt type: Three months ended March 31, 2018 2017 Net sales: Specialty alloys $ 50,485 42,405 Premium alloys (A) 11,845 5,833 Conversion services and other sales 1,407 637 Total net sales $ 63,737 48,875 (A) Premium alloys represent all vacuum induction melted (VIM) products. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 4: Inventory Our raw material and starting stock inventory is primarily comprised of ferrous and non-ferrous scrap metal and alloys such as nickel, chrome, molybdenum, cobalt and copper. Our semi-finished and finished steel products are work-in-process in various stages of production or are finished products waiting to be shipped to our customers. Operating materials are primarily comprised of forge dies and production molds and rolls that are consumed over their useful lives. During the three months ended March 31, 2018 and 2017, we amortized these operating materials in the amount of $0.5 million. This expense is recorded as a component of cost of products sold on the consolidated statements of operations and included as a part of our total depreciation and amortization on the consolidated statements of cash flows. Inventory is stated at the lower of cost or net realizable value with cost principally determined on a weighted average cost method. Such costs include the acquisition cost for raw materials and supplies, direct labor and applied manufacturing overhead. We assess market based upon actual and estimated transactions at or around the balance sheet date. Typically, we reserve for slow-moving inventory and inventory that is being evaluated under our quality control process. The reserves are based upon management’s expected method of disposition. Inventories consisted of the following: March 31, December 31, (in thousands) 2018 2017 Raw materials and starting stock $ 10,455 $ 8,527 Semi-finished and finished steel products 100,991 99,820 Operating materials 11,412 10,850 Gross inventory 122,858 119,197 Inventory reserves (2,897) (2,534) Total inventory, net $ 119,961 $ 116,663 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 5: Long-Term Debt Long-term debt consisted of the following: March 31, December 31, (in thousands) 2018 2017 Revolving credit facility $ 59,673 $ 38,024 Notes 19,000 19,000 Term loan 20,471 21,541 Capital leases 1,796 1,897 Total debt 100,940 80,462 Less: current portion of long-term debt (6,718) (4,707) Less: deferred financing costs (1,035) (749) Long-term debt $ 93,187 $ 75,006 Credit Facility We have a Revolving Credit, Term Loan and Security Agreement (“Credit Agreement”) with PNC Bank, National Association, as administrative agent and co-collateral agent, Bank of America, N.A., as co-collateral agent, and PNC Capital Markets LLC, as sole lead arranger and sole bookrunner. The Credit Agreement provides for a senior secured revolving credit facility not to exceed $65.0 million (“Revolving Credit Facility”) and a senior secured term loan facility (“Term Loan”) in the amount of $30.0 million (together with the Revolving Credit Facility, “Facilities”). The Credit Agreement also provides for a letter of credit sub-facility not to exceed $10.0 million and a swing loan sub-facility not to exceed $6.5 million. On April 24, 2018, the Company announced it had amended its Credit Agreement increasing our Revolving Credit Facility by $8.0 million from $65.0 million to $73.0 million. This amendment will provide additional liquidity to the Company. Further, there have been no changes to the financial covenants, and the Company remains in compliance with all covenants. Subsequent to the Company’s April 24, 2018 amendment to the Revolving Credit Facility, the Company may request to increase the maximum aggregate principal amount of the borrowings by $17.0 million prior to January 21, 2020. The Facilities, which expire upon the earlier of (i) January 21, 2021 or (ii) the date that is 90 days prior to the scheduled maturity date of the notes (as defined below) (in either case, “Expiration Date”), are collateralized by a first lien on substantially all of the assets of the Company and its subsidiaries, except that no real property is collateral under the Facilities other than the Company’s real property in North Jackson, OH. Availability under the Revolving Credit Facility is based on eligible accounts receivable and inventory. The Company is required to pay a commitment fee of 0.25% based on the daily unused portion of the Revolving Credit Facility. With respect to the Term Loan, the Company makes quarterly installment payments of principal of approximately $1.1 million, plus accrued and unpaid interest, on the first day of each fiscal quarter. To the extent not previously paid, the Term Loan will become due and payable in full on the Expiration Date. Amounts outstanding under the Facilities, at the Company’s option, will bear interest at either a base rate plus a margin or a rate based on LIBOR plus a margin, in either case calculated in accordance with the terms of the Credit Agreement. Interest under the Credit Agreement is payable monthly. We elected to use the LIBOR based rate for the majority of the debt outstanding under the Facilities for the three months ended March 31, 2018, which was 3.67 4.17 The Credit Agreement contains customary affirmative and negative covenants. The Company must maintain a fixed charge coverage ratio of not less than 1.10 to 1.0, in each case measured on a rolling four-quarter basis calculated in accordance with the terms of the Credit Agreement. We were in compliance with our covenants under the Credit Agreement at March 31, 2018 and December 31, 2017. At March 31, 2018, we had Credit Agreement related deferred financing costs of approximately $0.7 $6.7 million of the current quarter increase in the Revolving Credit Facility was to fund cash restricted for use related to the New Markets Tax Credit Financing Transaction, described in Note 6. Notes In connection with the acquisition of the North Jackson facility, in August 2011, we issued $20.0 million in notes (collectively, “Notes”) to the sellers of the North Jackson facility as partial consideration of the acquisition. On January 21, 2016, the Company entered into Amended and Restated Notes in the aggregate principal amount of $20.0 million, each in favor of Gorbert Inc. (“Holder”). The Company’s obligations under the Notes are collateralized by a second lien on the same assets of the Company that collateralize the obligations of the Company under the Facilities. The Notes were originally scheduled to mature on March 17, 2019. On March 30, 2018, the Company provided notification of its intent to extend the maturity date to March 17, 2020 in accordance with the terms of the Notes. Upon the Company’s extension of the maturity date of the Notes to March 17, 2020, principal payments in the aggregate of $2.0 million will be required to be made in March 2019. In conjunction with the intended extension of the maturity date of the Notes, $2.0 million has been classified within current portion of long-term debt. Additionally, the Company has the option to further extend the maturity date of the Notes to March 17, 2021. Extending the maturity date of the Notes to March 17, 2021 would require a principal payment in the aggregate of $2.0 million to be made in March 2020. The Notes bear interest at a rate of 5.0% per year through and including August 17, 2017 and a rate of 6.0% per year from and after August 18, 2017. Through and including June 18, 2017, all accrued and unpaid interest was payable semi-annually in arrears on each June 18 and December 18. After June 18, 2017, all accrued and unpaid interest is payable quarterly in arrears on each September 18, December 18, March 18 and June 18. The Holder had the right to Capital Leases The Company occasionally enters into capital lease arrangements. The capital assets and obligations are recorded at the present value of minimum lease payments. The assets are included in Property, Plant and Equipment, net on the Consolidated Balance Sheet and are depreciated over the respective lease terms which range from three to five years. The long-term component of the capital lease obligations is included in Long-term debt and the current component is included in Current portion of long-term debt. During the three months ended March 31, 2018, the Company did not enter into any new capital lease agreements. During the three months ended March 31, 2017, the Company entered into capital lease agreements for which the net present value of the minimum lease payments, at inception, was $0.3 million. As of March 31, 2018, future minimum lease payments applicable to capital leases were as follows: 2018 $ 443 2019 591 2020 569 2021 467 2022 56 2023 16 Total minimum capital lease payments $ 2,142 Less amounts representing interest (346) Present value of net minimum capital lease payments $ 1,796 Less current obligation (432) Total long-term capital lease obligation $ 1,364 For the three months ended March 31, 2018, the amortization of capital lease assets was $0.1 million, which is included in cost of products sold in the Consolidated Statement of Operations. |
New Markets Tax Credit Financin
New Markets Tax Credit Financing Transaction | 3 Months Ended |
Mar. 31, 2018 | |
New Markets Tax Credit Financing Transaction Disclosure [Abstract] | |
New Markets Tax Credit Financing Transaction | Note 6: New Markets Tax Credit Financing Transaction On March 9, 2018, the Company entered into a financing transaction with PNC New Markets Investment Partners, LLC and Boston Community Capital, Inc. related to a new mid-size bar cell capital project at the Company’s Dunkirk, NY facility. PNC New Markets Investment Partners, LLC made a capital contribution and the Company made a loan to Dunkirk Investment Fund, LLC (“Investment Fund”) under a qualified New Markets Tax Credit (“NMTC”) program. Through this financing transaction, the Company secured low interest financing and the potential for other future benefits related to its mid-size bar cell capital project. In connection with the financing transaction, the Company loaned $6.7 million aggregate principal amount (“Leverage Loan”) due in March 2048 to the Investment Fund. Additionally, PNC New Markets Investment Partners, LLC contributed $3.5 million to the Investment Fund, and as such, PNC New Markets Investment Partners, LLC is entitled to substantially all tax and other benefits derived from the NMTC. The Investment Fund then contributed the proceeds to a community development entity (“CDE”). The CDE then loaned the funds, on similar terms, as the Leverage Loan to Dunkirk Specialty Steel, LLC, a wholly-owned subsidiary of the Company. The CDE loan proceeds are restricted for use on the mid-size bar cell capital project. The NMTC is subject to 100 percent recapture for a period of seven years as provided in the Internal Revenue Code. The Company is required to comply with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, require the Company to indemnify PNC New Markets Investment Partners, LLC for any loss or recapture of NMTCs related to the financing until the Company’s obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. This transaction also includes a put/call provision whereby the Company may be obligated or entitled to repurchase PNC New Markets Investment Partners, LLC’s interest in the Investment Fund. The Company believes that PNC New Markets Investment Partners, LLC will exercise the put option in March 2025, at the end of the recapture period. The value attributed to the put/call is negligible. Direct costs incurred in structuring this financing transaction totaled $0.4 million. These costs were deferred and will be amortized over the term of the loans. The Company has determined that the Investment Fund and CDE are each a VIE, and that it is the primary beneficiary of each VIE. This conclusion was reached based on the following: • The ongoing activities of the VIE, collecting and remitting interest and fees, and NMTC compliance were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the VIE; • Contractual arrangements obligate the Company to comply with NMTC rules and regulations and provide various other guarantees to the Investment Fund and CDE; • PNC New Markets Investment Partners, LLC lacks a material interest in the underlying economics of the project; and • The Company is obligated to absorb losses of the VIE. Because the Company is the primary beneficiary of each VIE, these entities have been included in the Company’s Consolidated Financial Statements. As of March 31, 2018, the Company has recorded $8.3 million as restricted cash which is included in Other long-term assets on the Company’s Consolidated Balance Sheet and $3.0 million as Other long-term liabilities related to this financing transaction. Cash is restricted for use in bar cell capital purchases only. Other long-term liabilities represent funds contributed to the Investment Fund by PNC New Markets Investment Partners, LLC. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 7: Fair Value Measurement The fair value hierarchy has three levels based on the inputs used to determine fair value, which are as follows: Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date. Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The carrying amounts of our cash, accounts receivable and accounts payable approximated fair value at March 31, 2018 and December 31, 2017 due to their short-term maturities (Level 1). The fair value of the Term Loan, Revolving Credit facility at March 31, 2018 and December 31, 2017 approximated the carrying amount as the interest rate is based upon floating short-term interest rates (Level 2). At March 31, 2018 and December 31, 2017, the fair value of our Notes was approximately $18.9 and $18.8 million, respectively (Level 2). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8: Commitments and Contingencies From time to time, various lawsuits and claims have been or may be asserted against us relating to the conduct of our business, including routine litigation relating to commercial and employment matters. The ultimate cost and outcome of any litigation or claim cannot be predicted with certainty. Management believes, based on information presently available, that the likelihood that the ultimate outcome of any such pending matter will have a material adverse effect on our financial condition, or liquidity or a material impact on our results of operations is remote, although the resolution of one or more of these matters may have a material adverse effect on our results of operations for the period in which the resolution occurs. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes Management estimates the annual effective income tax rate quarterly, based on current annual forecasted results. Items unrelated to current year ordinary income are recognized entirely in the period identified as a discrete item of tax. The quarterly income tax provision (benefit) is comprised of tax on ordinary income provided at the most recent estimated annual effective tax rate (“ETR”), increased or decreased for the tax effect of discrete items. For the three months ended March 31, 2018 and 2017, our estimated annual effective tax rates applied to ordinary income (losses) were 18.7% and 20.7%, respectively. The difference between the statutory rate and the projected annual ETR of 18.7% for 2018 is primarily due to the research and development credit. Our estimated ETR incorporated the 21% statutory U.S. corporate income tax rate that was enacted on December 22, 2017 by the Tax Cuts and Jobs Act, for the tax years beginning after December 31, 2017. Including the effect of discrete items, our effective tax rates for the three months ended March 31, 2018 and 2017 were 26.8% and 17.7%, respectively. The difference between the annual ETR of 18.7% and the quarterly rate of 26.8% for the three months ended March 31, 2018 is primarily related to the expiration of fully vested stock options, which impacted income tax expense by $0.2 million. |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Note 10: Derivatives and Hedging The Company invoices certain customers in foreign currencies. In order to mitigate the risks associated with fluctuations in exchange rates with the US Dollar, the Company entered into foreign exchange forward contracts during 2018 and 2017 for a portion of these sales and has designated these contracts as cash flow hedges. The notional value of these contracts at March 31, 2018 and December 31, 2017 was $3.4 million and $4.5 million, respectively. An accumulated unrealized loss of $0.1 million was recorded in other comprehensive income at December 31, 2017. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 11: Subsequent Event On April 24, 2018, the Company announced it had amended its Credit Agreement increasing our Revolving Credit Facility by $8.0 million from $65.0 million to $73.0 million. This amendment will provide additional liquidity to the Company. Further, there have been no changes to the financial covenants, and the Company remains in compliance with all covenants. |
Nature of Business and Basis 19
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated statements include the accounts of Universal Stainless & Alloy Products, Inc. and its subsidiaries and are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reports and the instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. GAAP have been condensed or omitted pursuant to such regulations. However, we believe that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our most recently audited financial statements and the notes thereto included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission. In the opinion of management, the accompanying financial statements include all adjustments necessary to present a fair presentation of the consolidated financial statements for the periods shown. Interim results are not necessarily indicative of the operating results for the full fiscal year or any future period. The preparation of these financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Actual results may differ from our estimates. The consolidated financial statements include our accounts and the accounts of our wholly–owned subsidiaries. We also consolidate, regardless of our ownership percentage, variable interest entities (each a “VIE”) for which we are deemed to have a controlling financial interest. All intercompany transactions and balances have been eliminated. When we obtain an economic interest in an entity, we evaluate the entity to determine if the entity is a VIE, and if we are deemed to be a primary beneficiary. As a part of our evaluation, we are required to qualitatively assess if we are the primary beneficiary of the VIE based on whether we hold the power to direct those matters that most significantly impacted the activities of the VIE and the obligation to absorb losses or the right to receive the benefits of the VIE that could potentially be significant. Refer to Note 6, New Markets Tax Credit Financing Transaction, for a description of the VIE’s included in our consolidated financial statements. |
New Accounting Pronouncement | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of 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. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. Revenue from the Company’s product sales continue to generally be recognized when products are shipped (i.e. point in time). As such, the adoption of ASU 2014-09 had no material effect on revenue, gross margin or operating income; however, the Company has now presented the disclosures required by this new standard, refer to Note 3. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” or (“ASU 2016-18”). ASU 2016-18 is intended to clarify how entities present restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash and cash equivalents and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. When cash and cash equivalents and restricted cash are presented in more than one line item on the balance sheet, the guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and is to be applied retrospectively. We adopted ASU 2016-18 in the first quarter of 2018 and applied the guidance retrospectively to our prior period Consolidated Statement of Cash Flow. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all ASUs. Recently issued ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-2 “Leases (Topic 842)”. The ASU requires lessees to recognize most leases on their balance sheet as a right-of-use asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. The criteria for evaluating are similar to those applied in current leases accounting. This guidance is effective for annual and interim reporting periods beginning after December 15, 2018 with early adoption permitted. We are currently evaluating the impact of this guidance on our financial statements and the timing of adoption. In February 2018, the FASB issued ASU 2018-02, “Income Statement – Reporting Comprehensive Income,” that will permit companies the option to reclassify stranded tax effects caused by the newly-enacted U.S. Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. Adoption of the ASU will be optional, and companies will need to disclose if it elects not to adopt the ASU. The ASU will be effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption will be permitted, including adoption in any interim period, for financial statements that have not yet been issued or made available for issuance. Entities will have the option to apply the amendments retrospectively or to record the reclassification as of the beginning of the period of adoption. We are currently evaluating the impact of this guidance on our financial statements and the timing of adoption. |
Net Income (Loss) Per Common 20
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Common Share | The following table sets forth the computation of basic and diluted net income (loss) per common share: Three months ended March 31, (dollars in thousands, except per share amounts) 2018 2017 Numerator: Net income (loss) $ 2,125 $ (1,219) Adjustment for interest expense on notes (A) - - Net income (loss), as adjusted $ 2,125 $ (1,219) Denominator: Weighted average number of shares of common stock outstanding 7,261,966 7,216,447 Weighted average effect of dilutive stock options and other stock compensation 231,006 - Weighted average number of shares of common stock outstanding, as adjusted 7,492,972 7,216,447 Net income per common share: Net income (loss) per common share - Basic $ 0.29 $ (0.17) Net income (loss) per common share - Diluted $ 0.28 $ (0.17) (A) An adjustment for interest expense on notes was excluded from the loss per share calculation for the three months ended March 31, 2017 as a result of the notes being antidilutive. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue | The following summarizes our revenue by melt type: Three months ended March 31, 2018 2017 Net sales: Specialty alloys $ 50,485 42,405 Premium alloys (A) 11,845 5,833 Conversion services and other sales 1,407 637 Total net sales $ 63,737 48,875 (A) Premium alloys represent all vacuum induction melted (VIM) products. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventory | March 31, December 31, (in thousands) 2018 2017 Raw materials and starting stock $ 10,455 $ 8,527 Semi-finished and finished steel products 100,991 99,820 Operating materials 11,412 10,850 Gross inventory 122,858 119,197 Inventory reserves (2,897) (2,534) Total inventory, net $ 119,961 $ 116,663 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | March 31, December 31, (in thousands) 2018 2017 Revolving credit facility $ 59,673 $ 38,024 Notes 19,000 19,000 Term loan 20,471 21,541 Capital leases 1,796 1,897 Total debt 100,940 80,462 Less: current portion of long-term debt (6,718) (4,707) Less: deferred financing costs (1,035) (749) Long-term debt $ 93,187 $ 75,006 |
Future Minimum Lease Payments for Capital Leases | 2018 $ 443 2019 591 2020 569 2021 467 2022 56 2023 16 Total minimum capital lease payments $ 2,142 Less amounts representing interest (346) Present value of net minimum capital lease payments $ 1,796 Less current obligation (432) Total long-term capital lease obligation $ 1,364 |
Net Income (Loss) Per Common 24
Net Income (Loss) Per Common Share (Computation of Basic and Diluted Net Income (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net income (loss) | $ 2,125 | $ (1,219) |
Net income (loss), as adjusted | $ 2,125 | $ (1,219) |
Denominator: | ||
Weighted average number of shares of common stock outstanding | 7,261,966 | 7,216,447 |
Weighted average effect of dilutive stock options and other stock compensation | 231,006 | |
Weighted average number of shares of common stock outstanding, as adjusted | 7,492,972 | 7,216,447 |
Net income per common share: | ||
Net income (loss) per common share - Basic | $ 0.29 | $ (0.17) |
Net income (loss) per common share - Diluted | $ 0.28 | $ (0.17) |
Net Income (Loss) Per Common 25
Net Income (Loss) Per Common Share (Narrative) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Compensation Plan [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 338,550 | 625,800 |
Average price of anti-dilutive options outstanding | $ 33.84 | $ 30.17 |
Notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 406,847 | |
Exercise of Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 73,609 | |
Issuance of Stock for Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 7,708 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Accounting Standards Update 2014-09 [Member] | Accounts Receivable [Member] | |
Revenue Recognition [Line Items] | |
Contract assets | $ 2.1 |
Revenue Recognition (Summary of
Revenue Recognition (Summary of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue Recognition [Line Items] | ||
Net sales | $ 63,737 | $ 48,875 |
Specialty Alloys [Member] | ||
Revenue Recognition [Line Items] | ||
Net sales | 50,485 | 42,405 |
Premium Alloys [Member] | ||
Revenue Recognition [Line Items] | ||
Net sales | 11,845 | 5,833 |
Conversion Services and Other Sales [Member] | ||
Revenue Recognition [Line Items] | ||
Net sales | $ 1,407 | $ 637 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | ||
Cost of goods sold, amortization of operating materials | $ 0.5 | $ 0.5 |
Inventory (Major Classes of Inv
Inventory (Major Classes of Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and starting stock | $ 10,455 | $ 8,527 |
Semi-finished and finished steel products | 100,991 | 99,820 |
Operating materials | 11,412 | 10,850 |
Gross inventory | 122,858 | 119,197 |
Inventory reserves | (2,897) | (2,534) |
Total inventory, net | $ 119,961 | $ 116,663 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total debt | $ 100,940 | $ 80,462 |
Less: current portion of long-term debt | (6,718) | (4,707) |
Less: deferred financing costs | (1,035) | (749) |
Long-term debt | 93,187 | 75,006 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 59,673 | 38,024 |
Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 19,000 | 19,000 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 20,471 | 21,541 |
Capital Leases [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,796 | $ 1,897 |
Long-Term Debt (Credit Facility
Long-Term Debt (Credit Facility) (Narrative) (Details) - USD ($) | Apr. 25, 2018 | Apr. 24, 2018 | Mar. 31, 2018 | Mar. 09, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||||
Deferred financing fees | $ 1,035,000 | $ 749,000 | |||
Amortization of deferred financing costs | $ 100,000 | ||||
New Markets Tax Credit (NMTC) Program [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Deferred financing fees | $ 400,000 | ||||
PNC Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Minimum fixed charge coverage ratio | 1.10% | ||||
Revolving Credit Facility [Member] | PNC Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum secured borrowing capacity | $ 65,000,000 | ||||
Debt Instrument, Maturity Date, Description | The Facilities, which expire upon the earlier of (i) January 21, 2021 or (ii) the date that is 90 days prior to the scheduled maturity date of the notes | ||||
Commitment fee on the daily unused portion of the Revolver | 0.25% | ||||
Deferred financing fees | $ 700,000 | ||||
Revolving Credit Facility [Member] | PNC Bank [Member] | New Markets Tax Credit (NMTC) Program [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Increase in maximum aggregate principal amount of borrowings | $ 6,700,000 | ||||
Revolving Credit Facility [Member] | PNC Bank [Member] | LIBOR [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, effective interest rate | 3.67% | ||||
Revolving Credit Facility [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum secured borrowing capacity | $ 73,000,000 | ||||
Increase in maximum aggregate principal amount of borrowings | $ 8,000,000 | ||||
Revolving Credit Facility [Member] | PNC Bank [Member] | Request to Increase Borrowing Prior to January 21, 2020 [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Increase in maximum aggregate principal amount of borrowings | $ 17,000,000 | ||||
Letter of Credit [Member] | PNC Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum secured borrowing capacity | $ 10,000,000 | ||||
Term Loan [Member] | PNC Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum secured borrowing capacity | $ 30,000,000 | ||||
Debt Instrument, Frequency of Periodic Payment | quarterly | ||||
Quarterly term loan payments | $ 1,100,000 | ||||
Term Loan [Member] | PNC Bank [Member] | LIBOR [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, effective interest rate | 4.17% | ||||
Swing Loan Credit Facility [Member] | PNC Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum secured borrowing capacity | $ 6,500,000 |
Long-Term Debt (Notes, Capital
Long-Term Debt (Notes, Capital Leases) (Narrative) (Details) - USD ($) | Mar. 30, 2018 | Jan. 21, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Aug. 31, 2011 |
Debt Instrument [Line Items] | |||||
Net present value of the minimum lease payments, at inception | $ 1,796,000 | $ 300,000 | |||
Amortization of capital lease assets | $ 100,000 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Capital lease term applicable to depreciate capital assets and obligations | 3 years | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Capital lease term applicable to depreciate capital assets and obligations | 5 years | ||||
Notes [Member] | Gorbert Inc. [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 20,000,000 | ||||
Debt instrument, maturity date | Mar. 17, 2020 | Mar. 17, 2019 | |||
Current portion of long-term debt | $ 2,000,000 | ||||
Aggregate principal payment required if maturity date extend to March 17, 2020 | $ 2,000,000 | ||||
Notes [Member] | Gorbert Inc. [Member] | Through and Including August 17, 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 5.00% | ||||
Notes [Member] | Gorbert Inc. [Member] | From and After August 18, 2017 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 6.00% | ||||
Notes [Member] | North Jackson Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 20,000,000 | ||||
Convertible Notes If Holder Elects to Convert on or Prior to August 17, 2017 [Member] | Gorbert Inc. [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument integral multiple convertible principal amount | $ 0.1 |
Long-Term Debt (Future Minimum
Long-Term Debt (Future Minimum Lease Payments for Capital Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,018 | $ 443 | |
2,019 | 591 | |
2,020 | 569 | |
2,021 | 467 | |
2,022 | 56 | |
2,023 | 16 | |
Total minimum capital lease payments | 2,142 | |
Less amounts representing interest | (346) | |
Present value of net minimum capital lease payments | 1,796 | $ 300 |
Less current obligation | (432) | |
Total long-term capital lease obligation | $ 1,364 |
New Markets Tax Credit Financ34
New Markets Tax Credit Financing Transaction (Narrative) (Details) - USD ($) $ in Thousands | Mar. 09, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
New Markets Tax Credit Financing Transaction [Line Items] | |||
New market tax credits recapture percentage | 100.00% | ||
New market tax credits period of recapture | 7 years | ||
Direct costs incurred in structuring financing transaction | $ 1,035 | $ 749 | |
Other long-term liabilities | 3,015 | $ 4 | |
New Markets Tax Credit (NMTC) Program [Member] | |||
New Markets Tax Credit Financing Transaction [Line Items] | |||
Aggregate principal amount of leverage loan loaned to investment fund | $ 6,700 | ||
Leverage loan, due date | 2048-03 | ||
Direct costs incurred in structuring financing transaction | $ 400 | ||
Other long-term liabilities | 3,000 | ||
New Markets Tax Credit (NMTC) Program [Member] | Other Long-Term Assets [Member] | |||
New Markets Tax Credit Financing Transaction [Line Items] | |||
Restricted cash | $ 8,300 | ||
New Markets Tax Credit (NMTC) Program [Member] | PNC New Markets Investment Partners, LLC [Member] | |||
New Markets Tax Credit Financing Transaction [Line Items] | |||
Capital contributions to investment fund | $ 3,500 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Inputs, Level 2 [Member] | ||
Notes payable, fair value disclosure | $ 18.9 | $ 18.8 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes [Line Items] | ||
Estimated annual effective tax rate | 18.70% | 20.70% |
U.S corporate income tax rate | 21.00% | |
Income tax expense impacted by expiration of fully vested stock options | $ 0.2 | |
Research and Development [Member] | ||
Income Taxes [Line Items] | ||
Effective income tax rate continuing operations | 26.80% | 17.70% |
Derivatives and Hedging (Narrat
Derivatives and Hedging (Narrative) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Accumulated unrealized gain (loss) on foreign currency contracts , net of tax | $ 100,000 | |
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Notional value of derivative contracts | $ 3,400,000 | $ 4,500,000 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) - Revolving Credit Facility [Member] - PNC Bank [Member] - USD ($) | Apr. 24, 2018 | Mar. 31, 2018 |
Subsequent Event [Line Items] | ||
Maximum secured borrowing capacity | $ 65,000,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Maximum secured borrowing capacity | $ 73,000,000 | |
Increase in maximum aggregate principal amount of borrowings | $ 8,000,000 |