Cover page
Cover page - shares | 6 Months Ended | |
Dec. 31, 2021 | Jan. 27, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-367 | |
Entity Registrant Name | STARRETT L S CO | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-1866480 | |
Entity Address, Address Line One | 121 Crescent Street | |
Entity Address, City or Town | Athol | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01331-1915 | |
City Area Code | 978 | |
Local Phone Number | 249-3551 | |
Title of 12(b) Security | Class A Common - $1.00 Per Share Par Value | |
Trading Symbol | SCX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000093676 | |
Amendment Flag | false | |
Class A Common Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 | |
Class B Common Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Current assets: | ||
Cash | $ 9,437 | $ 9,105 |
Accounts receivable (less allowance for doubtful accounts of $602 and $665, respectively) | 34,535 | 35,076 |
Inventories | 63,874 | 60,572 |
Prepaid expenses and other current assets | 14,473 | 14,467 |
Total current assets | 122,319 | 119,220 |
Property, plant and equipment, net | 35,851 | 35,992 |
Right of use assets | 5,772 | 4,298 |
Deferred tax assets, net | 18,601 | 19,073 |
Intangible assets, net | 4,761 | 4,888 |
Goodwill | 1,015 | 1,015 |
Total assets | 188,319 | 184,486 |
Current liabilities: | ||
Current maturities of debt | 21,969 | 15,959 |
Current lease liability | 1,418 | 1,650 |
Accounts payable | 15,108 | 17,229 |
Accrued expenses | 9,191 | 8,811 |
Accrued compensation | 4,128 | 8,040 |
Total current liabilities | 51,814 | 51,689 |
Other tax obligations | 2,870 | 2,866 |
Long-term lease liability | 4,514 | 2,734 |
Long-term debt, net of current portion | 9,158 | 6,010 |
Postretirement benefit and pension obligations | 34,778 | 37,652 |
Total liabilities | 103,134 | 100,951 |
Stockholders' equity: | ||
Additional paid-in capital | 56,869 | 56,507 |
Retained earnings | 79,941 | 74,181 |
Accumulated other comprehensive loss | (58,877) | (54,262) |
Total stockholders' equity | 85,185 | 83,535 |
Total liabilities and stockholders’ equity | $ 188,319 | $ 184,486 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Class A Common Shares | ||
Stockholders' equity: | ||
Common stock | $ 6,644 | $ 6,475 |
Class B Common Shares | ||
Stockholders' equity: | ||
Common stock | $ 608 | $ 634 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Allowance for doubtful accounts | $ 602 | $ 665 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Class A Common Shares | ||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares, outstanding (in shares) | 6,644,107 | 6,475,307 |
Class B Common Shares | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares, outstanding (in shares) | 607,748 | 633,505 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 61,318 | $ 54,054 | $ 122,832 | $ 103,464 |
Cost of goods sold | 42,368 | 36,449 | 83,737 | 70,287 |
Gross margin | $ 18,950 | $ 17,605 | $ 39,095 | $ 33,177 |
% of Net sales | 30.90% | 32.60% | 31.80% | 32.10% |
Restructuring charges | $ 0 | $ 384 | $ 0 | $ 730 |
Gain on sale of building | 0 | (3,204) | 0 | (3,204) |
Selling, general and administrative expenses | 14,749 | 14,224 | 30,762 | 27,615 |
Operating income | 4,201 | 6,201 | 8,333 | 8,036 |
Other (expense), net | (662) | (426) | (436) | (427) |
Income before income taxes | 3,539 | 5,775 | 7,897 | 7,609 |
Income tax expense (benefit) | 1,011 | 1,918 | 2,137 | (364) |
Net income | $ 2,528 | $ 3,857 | $ 5,760 | $ 7,973 |
Basic income per share (in dollars per share) | $ 0.35 | $ 0.54 | $ 0.80 | $ 1.13 |
Diluted income per share (in dollars per share) | $ 0.34 | $ 0.53 | $ 0.77 | $ 1.10 |
Weighted average outstanding shares used in per share calculations: | ||||
Basic (in shares) | 7,243 | 7,081 | 7,185 | 7,035 |
Diluted (in shares) | 7,492 | 7,294 | 7,473 | 7,260 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,528 | $ 3,857 | $ 5,760 | $ 7,973 |
Other comprehensive income (loss): | ||||
Currency translation gain (loss), net of tax | (871) | 3,846 | (4,482) | 3,610 |
Pension and postretirement plans, net of tax | (67) | 1 | (133) | (21) |
Other comprehensive income (loss) | (938) | 3,847 | (4,615) | 3,589 |
Total comprehensive income | $ 1,590 | $ 7,704 | $ 1,145 | $ 11,562 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock OutstandingClass A | Common Stock OutstandingClass B | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Jun. 30, 2020 | $ 45,983 | $ 6,308 | $ 680 | $ 55,762 | $ 58,648 | $ (75,415) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | 3,858 | 4,116 | (258) | |||
Repurchase of shares | (6) | (2) | (4) | |||
Stock-based compensation | 367 | 8 | 359 | |||
Conversion | 26 | (26) | ||||
Ending balance at Sep. 30, 2020 | 50,202 | 6,342 | 652 | 56,117 | 62,764 | (75,673) |
Beginning balance at Jun. 30, 2020 | 45,983 | 6,308 | 680 | 55,762 | 58,648 | (75,415) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | 11,562 | |||||
Ending balance at Dec. 31, 2020 | 58,084 | 6,448 | 657 | 56,184 | 66,621 | (71,826) |
Beginning balance at Sep. 30, 2020 | 50,202 | 6,342 | 652 | 56,117 | 62,764 | (75,673) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | 7,704 | 3,857 | 3,847 | |||
Repurchase of shares | (1) | (1) | ||||
Stock-based compensation | 154 | 103 | 51 | |||
Conversion | 3 | (3) | ||||
Issuance of stock | 25 | 8 | 17 | |||
Ending balance at Dec. 31, 2020 | 58,084 | 6,448 | 657 | 56,184 | 66,621 | (71,826) |
Accumulated balance consists of: | ||||||
Translation loss | (58,264) | |||||
Pension and postretirement plans, net of taxes | (13,562) | |||||
Accumulated other comprehensive loss | (71,826) | |||||
Accumulated other comprehensive loss | (54,262) | |||||
Beginning balance at Jun. 30, 2021 | 83,535 | 6,475 | 634 | 56,507 | 74,181 | (54,262) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | (445) | 3,232 | (3,677) | |||
Repurchase of shares | (16) | (2) | (14) | |||
Stock-based compensation | 174 | 119 | 55 | |||
Conversion | 25 | (25) | ||||
Ending balance at Sep. 30, 2021 | 83,248 | 6,619 | 607 | 56,548 | 77,413 | (57,939) |
Beginning balance at Jun. 30, 2021 | 83,535 | 6,475 | 634 | 56,507 | 74,181 | (54,262) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | 1,145 | |||||
Ending balance at Dec. 31, 2021 | 85,185 | 6,644 | 608 | 56,869 | 79,941 | (58,877) |
Beginning balance at Sep. 30, 2021 | 83,248 | 6,619 | 607 | 56,548 | 77,413 | (57,939) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | 1,590 | 2,528 | (938) | |||
Repurchase of shares | (7) | (7) | ||||
Stock-based compensation | 237 | 11 | 226 | |||
Conversion | 7 | (7) | ||||
Issuance of stock | 117 | 7 | 8 | 102 | ||
Ending balance at Dec. 31, 2021 | 85,185 | $ 6,644 | $ 608 | $ 56,869 | $ 79,941 | (58,877) |
Accumulated balance consists of: | ||||||
Translation loss | (60,528) | |||||
Pension and postretirement plans, net of taxes | $ 1,651 | |||||
Accumulated other comprehensive loss | $ (58,877) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 5,760 | $ 7,973 |
Non-cash operating activities: | ||
Gain from sale of real estate | 0 | (3,204) |
Depreciation | 2,567 | 2,681 |
Amortization | 660 | 605 |
Stock-based compensation | 411 | 521 |
Net long-term tax obligations | 86 | 114 |
Deferred taxes | 305 | (2,564) |
Postretirement benefit and pension obligations | (706) | 32 |
Working capital changes: | ||
Accounts receivable | (1,619) | (2,911) |
Inventories | (6,002) | 4,615 |
Other current assets | (1,063) | (349) |
Other current liabilities | (3,767) | (1,813) |
Prepaid pension expense | (2,071) | (3,469) |
Other | 872 | 170 |
Net cash (used in) provided by operating activities | (4,567) | 2,401 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (4,457) | (3,050) |
Software development | (533) | (537) |
Proceeds from sale of real estate | 0 | 5,214 |
Net cash (used in) provided by investing activities | (4,990) | 1,627 |
Cash flows from financing activities: | ||
Proceeds from borrowing | 29,605 | 9,142 |
Debt repayments | (20,244) | (12,608) |
Proceeds from common stock issued | 117 | 25 |
Shares repurchased | (23) | (7) |
Net cash provided by (used in) financing activities | 9,455 | (3,448) |
Effect of exchange rate changes on cash | 434 | 521 |
Net increase in cash | 332 | 1,101 |
Cash, beginning of period | 9,105 | 13,458 |
Cash, end of period | 9,437 | 14,559 |
Supplemental cash flow information: | ||
Interest paid | 465 | 423 |
Income taxes paid, net | $ 2,222 | $ 2,941 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Account Policies | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Account Policies | Basis of Presentation and Summary of Significant Account Policies The unaudited interim consolidated financial statements as of and for the six months ended December 31, 2021 have been prepared by The L.S. Starrett Company (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. These unaudited consolidated financial statements, which, in the opinion of management, reflect all adjustments (including normal recurring adjustments) necessary for a fair presentation, should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021. The balance sheet as of June 30, 2021 has been derived from the audited consolidated financial statements as of and for the year ended June 30, 2021. Operating results are not necessarily indicative of the results that may be expected for any future interim period or for the entire fiscal year. The Company’s “fiscal year” begins July 1 st and ends June 30 th . The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect amounts reported in the consolidated financial statements and accompanying notes. Note 2 to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended June 30, 2021 describes the significant accounting policies and methods used in the preparation of the consolidated financial statements. Throughout the pandemic crisis, the Company's main focus has been on protecting the health and well-being of its employees, and the long-term financial health of the Company. It remains very difficult for management to predict when this crisis will no longer be a risk to future sales and operations. To the extent that pandemic-related events do not provide evidence about conditions that existed at the balance-sheet date, the Company considers it necessary to disclose it cannot estimate all aspects of the impact on the financial statements as a result of the on-going pandemic. |
Segment Information
Segment Information | 6 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The segment information and the accounting policies of each segment are the same as those described in the notes to the consolidated financial statements entitled “Financial Information by Segment & Geographic Area” included in our Annual Report on Form 10-K for the year ended June 30, 2021. The Company’s business is aggregated into two reportable segments based on geography of operations: North American Operations and International Operations. Segment income is measured for internal reporting purposes by excluding corporate expenses, which are included in the unallocated column in the table below. Other income and expense, including interest income and expense, and income taxes are excluded entirely from the table below. There were no significant changes in the segment operations or in the segment assets from the Annual Report. Financial results for each reportable segment are as follows (in thousands): North International Unallocated Total Three Months ended December 31, 2021 Sales 1 $ 32,666 $ 28,652 $ — $ 61,318 Operating Income (Loss) $ 1,549 $ 4,394 $ (1,742) $ 4,201 Three Months ended December 31, 2020 Sales 2 $ 27,106 $ 26,948 $ — $ 54,054 Operating Income (Loss) $ 3,688 $ 4,436 $ (1,923) $ 6,201 1. Excludes $930 of North American segment intercompany sales to the International segment, and $4,412 of International segment intercompany sales to the North American segment. 2. Excludes $992 of North American segment intercompany sales to the International segment, and $2,610 of International segment intercompany sales to the North American segment. North International Unallocated Total Six months ended December 31, 2021 Sales 1 $ 66,475 $ 56,357 $ — $ 122,832 Operating Income (Loss) $ 4,050 $ 7,977 $ (3,694) $ 8,333 Six months ended December 31, 2020 Sales 2 $ 53,089 $ 50,375 $ — $ 103,464 Operating Income (Loss) $ 4,516 $ 7,277 $ (3,757) $ 8,036 1. Excludes $1,679 of North American segment intercompany sales to the International segment, and $9,748 of International segment intercompany sales to the North American segment. 2. Excludes $1,737 of North American segment intercompany sales to the International segment, and $5,396 of International segment intercompany sales to the North American segment. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customer | Revenue from Contracts with Customers Under ASC Topic 606, the Company is required to present a refund liability and a return asset within the Unaudited Consolidated Balance Sheet. As of December 31, 2021 and June 30, 2021, the balance of the return asset was $0.1 million and $0.2 million, respectively, and the balance of the refund liability as of December 31, 2021 and June 30, 2021 was $0.2 million. They are presented within prepaid expenses and other current assets and accrued expenses, respectively, on the Consolidated Balance Sheets. The Company, in general, warrants its products against certain defects in material and workmanship when used as designed, for a period of up to one year. The Company does not sell extended warranties. Contract Balances Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date on contracts with customers. Contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been met, and therefore, revenue has not been recognized. The Company had no contract asset balances, but had contract liability balances of $0.9 million and $0.6 million at December 31, 2021 and June 30, 2021, respectively, located in Accounts Payable in the Consolidated Balance Sheets. Disaggregation of Revenue The Company operates in two reportable segments: North America and International. ASC Topic 606 requires further disaggregation of an entity’s revenue. In the following table, the Company's net sales by shipping origin are disaggregated accordingly for the three months ended December 31, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended 12/31/2021 12/31/2020 12/31/2021 12/31/2020 North America United States $ 30,912 $ 25,345 $ 62,932 $ 49,682 Canada & Mexico 1,754 1,761 3,543 3,408 32,666 27,106 66,475 53,090 International Brazil 18,687 17,493 37,890 32,401 United Kingdom 4,729 5,554 9,697 10,548 China 2,244 2,005 3,862 3,586 Australia & New Zealand 2,992 1,896 4,908 3,839 28,652 26,948 56,357 50,374 Total Sales $ 61,318 $ 54,054 $ 122,832 $ 103,464 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendment to the guidance, ASU 2018-19 in November 2018. The standard significantly 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 standard will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. The amendment will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2018-19 clarifies that receivables arising from operating leases are accounted for using lease guidance and not as financial instruments. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption was permitted for annual periods beginning after December 15, 2018, and interim periods therein. This pronouncement was extended for Small Reporting Companies and for the Company to July 1, 2022. The Company does not expect the adoption of this standard to have a material impact on the financial position and results of operations. In August 2018, the FASB issued ASU No. 2018-14, "Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and added additional disclosures. This ASU is effective for the Company beginning July 1, 2021 and must be applied on a retrospective basis. The Company does not expect the adoption of this standard to have a material impact on the financial position and results of operations or the required disclosures. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases | Leases Operating lease cost amounted to $0.8 million and $1.6 million for the three and six months period ended December 31, 2021 and $0.6 million and $1.2 million for the three and six months period ended December 31, 2020. As of December 31, 2021, the Company’s right-of-use assets, lease obligations and remaining cash commitment on these leases (in thousands): Right-of-Use Operating Lease Remaining Cash Operating leases $ 5,772 $ 5,932 $ 7,201 In September 2021, the Company entered into a six year lease in China for 100,682 square feet and recorded a right of use asset for $2.6 million. The facility is expected to be operational by the end of 2021. In July, Starrett UK leased space to another company for annual rent of $0.2 million and incremental applicable service charges. The lease is a 20 year agreement with a contract review in 2026. The fees are recorded in Other Income in the Company's Consolidated Statement of Operations. The Company has other operating lease agreements with commitments of less than one year or that are not significant. The Company elected the practical expedient option and as such, these lease payments are expensed as incurred. The Company’s weighted average discount rate and remaining term on lease liabilities is approximately 9.0% and 4.6 years. As of December 31, 2021, the Company’s financing leases are de minimis. The foreign exchange impact affecting the operating leases are de minimis. The Company entered into $0.1 million and $2.6 million in new operating lease commitments and incurred immaterial exchange expense during the three and six months ended December 31, 2021. At December 31, 2021, the Company had the following fiscal year minimum operating lease commitments (in thousands) Six months ended December 31, 2021 Operating Lease 2021 (Remainder of year) $ 994 2023 1,689 2024 1,520 2025 1,129 2026 1,044 Thereafter 824 Subtotal $ 7,201 Imputed interest (1,269) Total 5,932 |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation On September 5, 2012, the Board of Directors adopted The L.S. Starrett Company 2012 Long Term Incentive Plan (the “2012 Stock Plan”). The 2012 Stock Plan was approved by shareholders on October 17, 2012 and the material terms of its performance goals were re-approved by shareholders at the Company’s Annual Meeting held on October 18, 2017. There are no shares available under the 2012 Plan. On September 1, 2021, the Board of Directors adopted The L.S. Starrett Company 2021 Long Term Incentive Plan (the “2021 Stock Plan”). The 2021 Stock Plan was approved by shareholders on October 13, 2021. Both the 2012 and 2021 Stock Plan permits the granting of the following types of awards to officers, other employees and non-employee directors: stock options; restricted stock awards; unrestricted stock awards; stock appreciation rights; stock units including restricted stock units; performance awards; cash-based awards; and awards other than previously described that are convertible or otherwise based on stock. The 2021 and 2012 Stock Plans provide for the issuance of up to 500,000 shares of common stock. Under both plans, options granted vest in periods ranging from one year to three years and expire ten years after the grant date. Restricted stock units (“RSU”) granted generally vest from one year to three years. Vested restricted stock units will be settled in shares of common stock. As of December 31, 2021, there were no stock options and 205,636 restricted stock units outstanding. There were 441,901 shares available for grant under the 2021 Stock Plan as of December 31, 2021. For stock option grants, the fair value of each grant is estimated at the date of grant using the Binomial Options pricing model. The Binomial Options pricing model utilizes assumptions related to stock volatility, the risk-free interest rate, the dividend yield, and employee exercise behavior. Expected volatilities utilized in the model are based on the historic volatility of the Company’s stock price. The risk-free interest rate is derived from the U.S. Treasury Yield curve in effect at the time of the grant. The expected life is determined using the average of the vesting period and contractual term of the options (Simplified Method). No stock options were granted during the six months ended December 31, 2021 and 2020. The weighted average contractual term for stock options outstanding as of December 31, 2021 was 1.0 years. There are no stock options outstanding as of December 31, 2021. There were no stock options exercisable as of December 31, 2021. In recognizing stock compensation expense for the 2012 and 2021 Stock Incentive Plan, management has estimated that there will be no forfeitures of options. The Company accounts for stock options and RSU awards by recognizing the expense of the grant date fair value ratably over vesting periods generally ranging from one year to three years. The related expense is included in selling, general and administrative expenses. There were 80,500 RSU awards with a fair value of $11.35 per RSU granted during the six months ended December 31, 2021. There were 124,668 RSUs settled, and 11,174 RSUs forfeited during the six months ended December 31, 2021. The aggregate intrinsic value of RSU awards outstanding as of December 31, 2021 was $1.9 million. As of December 31, 2021, all vested awards have been issued and settled. On February 5, 2013, the Board of Directors adopted The L.S. Starrett Company 2013 Employee Stock Ownership Plan (the “2013 ESOP”). The purpose of the plan is to supplement existing Company programs through an employer funded individual account plan dedicated to investment in common stock of the Company, thereby encouraging increased ownership of the Company while providing an additional source of retirement income. The plan is intended as an employee stock ownership plan within the meaning of Section 4975 (e) (7) of the Internal Revenue Code of 1986, as amended. U.S. employees who have completed a year of service are eligible to participate. Compensation expense related to all stock-based plans for the three and six-month periods ended December 31, 2021 were $0.2 million and $0.3 million as compared to the prior year three and six months of $0.2 million and $0.5 million, respectively. As of December 31, 2021, there was $2.8 million of total unrecognized compensation costs related to outstanding stock-based compensation arrangements. Of this cost, $1.7 million relates to performance based RSU grants that are not expected to be awarded. The remaining $1.1 million is expected to be recognized over a weighted average period of 2.0 years. |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): 12/31/2021 06/30/2021 Raw material and supplies $ 30,687 $ 29,271 Goods in process and finished parts 16,592 16,096 Finished goods 37,853 37,344 85,132 82,711 LIFO Reserve (21,258) (22,139) $ 63,874 $ 60,572 Of the Company’s $63.9 million and $60.6 million total inventory at December 31, 2021 and June 30, 2021, respectively, the $21.3 million and $22.1 million LIFO reserves belong to the U.S. Precision Tools and Saws Manufacturing “Core U.S.” business. The Core U.S. business total inventory was $30.2 million on a FIFO basis and $8.9 million on a LIFO basis at December 31, 2021. The Core U.S. business had total Inventory, on a FIFO basis, of $27.8 million and $5.7 million on a LIFO basis as of June 30, 2021. The use of LIFO, as compared to FIFO, resulted in a $0.1 million decrease in cost of sales for the goods sold in the period ending December 31, 2021 compared to $0.4 million in the six months ending December 31, 2020. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company’s acquisition of Bytewise in 2011 and a private software company in 2017 resulted in the recognition of goodwill totaling $4.7 million. During the fourth quarter of fiscal year 2020 the Company tested impairment of intangible assets according to ASC 360 "Property, Plant and Equipment" and determined the carrying value was deemed to be recoverable at Bytewise but not at the private software company where the impairment of intangibles was calculated. The Company concluded that intangible assets of the private software company were impaired by $2.9 million. The Company then, according to ASC 350 Intangibles -Goodwill and Other, conducted a step one analysis performed based on the update carrying value for each reporting unit. Goodwill was determined to be impaired $0.6 million at the private software company and Goodwill of $3.0 million was impaired at the Bytewise reporting unit as of June 30, 2020. As a result, the balance of Goodwill at Bytewise is zero and $1.0 million at the private software company as of December 31, 2020. The Company will continue to perform an annual assessment of goodwill associated with its purchase of a private software company. If future results significantly vary from current estimates, related projections, or business assumptions due to changes in industry or market conditions, the Company may be required to perform an impairment analysis prior to our annual test date if a triggering event is identified. As of December 31, 2021 , the Company did not identify a triggering event. Amortizable intangible assets consist of the following (in thousands): 12/31/2021 6/30/2021 Trademarks and trade names 2,070 2,070 Customer relationships 630 630 Software development 10,777 10,244 Total 13,477 12,944 Accumulated amortization and impairment (8,716) (8,056) Total net balance $ 4,761 $ 4,888 The category completed technology became fully amortized in November 2021 and, therefore, removed from the above table. Amortizable intangible assets are being amortized on a straight-line basis over the period of expected economic benefit. The estimated useful lives of the intangible assets subject to amortization range between 5 years for software development and 20 years for some trademark and trade name assets. The estimated aggregate amortization expense for the remainder of fiscal 2021 and for each of the next five years and thereafter, is as follows (in thousands): 2022 (Remainder of year) $ 701 2023 1,260 2024 989 2025 829 2026 619 Thereafter 363 Total net balance $ 4,761 |
Pension and Post-retirement Ben
Pension and Post-retirement Benefits | 6 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Post-retirement Benefits | Pension and Post-retirement Benefits The Company has two defined benefit pension plans, one for U.S. employees and another for U.K. employees. The Company has a postretirement medical insurance benefit plan for U.S. employees. The Company also has defined contribution plans. The U.K. defined benefit plan was closed to new entrants in fiscal 2009. On December 21, 2016, the Company amended the U.S. defined benefit pension plan to freeze benefit accruals effective December 31, 2016. Consequently, the Plan is closed to new participants and current participants will no longer earn additional benefits after December 31, 2016. Net periodic benefit costs for the Company's defined benefit pension plans are located in Other (expense), net in Consolidated Statements of Operations except (in the table below) for service cost . Service cost are in cost of sales and selling, general and administrative expenses. Net periodic benefit costs consist of the following (in thousands): Three Months Ended Six Months Ended 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Interest cost 1,031 1,118 2,064 2,231 Expected return on plan assets (1,098) (1,113) (2,198) (2,221) Amortization of net loss 15 14 28 27 $ (52) $ 19 $ (106) $ 37 Net periodic benefit costs for the Company's Postretirement Medical Plan consists of the following (in thousands): Three Months Ended Six Months Ended 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Service cost $ 9 $ 22 $ 18 $ 43 Interest cost 13 52 25 103 Amortization of prior service credit (369) (135) (737) (269) Amortization of net loss 47 41 94 83 $ (300) $ (20) $ (600) $ (40) For both the three month and six month periods ended December 31, 2021, the Company contributed $1.5 million, in the U.S. and $0.3 million and $0.5 million in the UK pension plans for the same periods. Based upon the actuarial valuations performed on the Company’s defined benefit plans as of June 30, 2021, the contribution for fiscal 2022 for the U.S. plans would require a contribution of $5.6 million and the U.K. plan would require one of $1.0 million However, as a result of the American Rescue Plan Act of 2021, the minimum required company contribution for the U.S. Plan in fiscal 2022 was reduced from $5.6 million to $0.6 million. The Company believes that government regulation is only a small part of deciding the pension funding, and as a result, intends to contribute more than the federal requirement. The Company is currently planning on evaluating the U.S. future contribution on a quarterly basis and plans to contribute $0.5 million in the 2nd half of fiscal 2022. The Company’s pension plans use fair value as the market-related value of plan assets and recognize net actuarial gains or losses in excess of ten percent (10)% of the greater of the market-related value of plan assets or of the plans’ projected benefit obligation in net periodic (benefit) cost as of the plan measurement date. Net actuarial gains or losses that are less than 10% of the thresholds noted above are accounted for as part of accumulated other comprehensive loss. |
Debt
Debt | 6 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt is comprised of the following (in thousands): 12/31/2021 06/30/2021 Short-term and current maturities Loan and Security Agreement (Line of credit) 13,746 9,153 Loan and Security Agreement (Term Loan) 1,509 1,509 Brazil Loans 6,714 5,297 21,969 15,959 Long-term debt (net of current portion) Loan and Security Agreement (Term Loan) 5,158 6,010 Brazil Loans 4,000 — 9,158 6,010 $ 31,127 $ 21,969 On December 31, 2019, the Company entered into the Tenth Amendment of its Loan and Security Agreement (“Tenth Amendment”). Under the revised agreement, the credit limit for the Revolving Loan was increased from $23.0 million to $25.0 million. In addition, the Company entered into a new $10.0 million 5-year Term Loan with a fixed interest rate of 4.0%. Under the Tenth Amendment, the credit limit for external borrowing was increased from $2.5 million to $5.0 million. On June 25, 2020, the Borrowers and TD Bank entered into an amendment and restatement (the “Amendment and Restatement”) of the Loan Agreement. The Amendment and Restatement waived the fixed charge coverage ratio for the quarter ended June 30, 2020. In addition, the Amendment and Restatement clarifies that certain non-cash adjustments to the definition of EBITDA are permitted under the Loan Agreement, as amended. In addition, the Amendment and Restatement increases the permitted borrowings from a foreign bank from $5.0 million to $15.0 million and permits the Company to draw the remainder of the outstanding balance under the Loan Agreement. Pursuant to the terms of the Company’s Amended and Restated Loan and Security Agreement of June 25, 2020, the “First Amendment” to this loan agreement was executed on September 17, 2020, which include, among other things, (i) pause testing of the Fixed Charge Coverage Ratio until September 30, 2021 and (ii) establishment of a new minimum cumulative EBITDA and minimum liquidity covenants in lieu thereof. TD Bank updated its security interests in the Company’s U.S. based assets, increased the maximum interest charged on the Line Of Credit from and annual interest rate of 2.25% plus Libor to 3.50% plus Libor, and amended the borrowing base for the line of credit from 80% of Qualified AR and 50% of the lower of Cost or Market of US inventory values to 80% of qualified AR plus 85% of the Net Orderly Liquidation Value (NOLV) of US Inventory plus 62.5% of total appraised US real estate values. As a result of this change, the Company is projected to maintain its current borrowing capacity of $25,000,000 under the Line of Credit. The Company underwent a series of appraisals and field exams in all US locations as part of restructuring this agreement and will provide additional reporting supporting the borrowing base and covenants certifications. This minimum adjusted EBITDA covenant was based on the Company’s plan for a slow pandemic recovery throughout FY21 and the impact of the Company’s restructuring plan initiatives. As of September 30, 2021, the agreement has reverted to the prior covenant package. The Company was compliant with the minimum liquidity requirement and the minimum fixed charge coverage ratio required bank covenants as of December 31, 2021. Total debt increased $9.2 million during the six months ended December 31, 2021, $5.4 million of which was an increase in Brazil. This is in response to increased working capital levels required to meet strong customer demand and counteract pandemic related supply chain disruptions and increased transit times. During the six months ended December 31, 2021 the Brazilian subsidiary realized a build-up of ICMS (sales tax) credits, a consequence of the fiscal 2021 restructuring activities which increased the manufacturing activity and, therefore, raw material imports into Brazil. As the Company's Brazilian subsidiary is now exporting a larger proportion of its sales, its ability to re-claim these ICMS credits has been diminished. The Company is actively mitigating this consequence by filing applications with the relevant tax authorities to change the methodology of charging and re-claiming ICMS on imports and domestic sales so that this credit is subsequently relieved and does not increase at this rate again. This new methodology is common for similar sized, export focused companies in Brazil. Availability under the Line of Credit remains subject to a borrowing base comprised of Accounts Receivable, Inventory, and Real Estate. The Company believes that the borrowing base will consistently produce availability under the Line of Credit of $25.0 million. A 0.25% commitment fee is charged on the unused portion of the Line of Credit. The Company’s Brazilian subsidiary incurs short-term loans with local banks in order to support the Company’s strategic initiatives. The loans are backed by the entity’s US dollar denominated export receivables. The Company’s Brazilian subsidiary has the following loans of December 31, 2021 (in thousands): Lending Institution Interest Rate Beginning Date Ending Date Outstanding Balance Santander 5.98% February 2021 February 2022 $ 1,219 Brasil 2.80% May 2021 May 2022 $ 795 Bradesco 1.88% July 2021 July 2022 $ 1,170 Bradesco 2.05% August 2021 July 2022 $ 400 Santander 2.15% August 2021 July 2022 $ 731 Brasil 2.10% August 2021 August 2022 $ 1,400 Itau 4.52% October 2021 September 2024 $ 4,000 Santander 2.71% December 2021 December 2022 1,000 $ 10,714 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to U.S. federal income tax and various state, local, and foreign income taxes in numerous jurisdictions. The Company’s domestic and foreign tax liabilities are subject to the allocation of revenues and expenses in different jurisdictions and the timing of recognizing revenues and expenses. Additionally, the amount of income taxes paid is subject to the Company’s interpretation of applicable tax laws in the jurisdictions in which it files. The Company provides for income taxes on an interim basis based on an estimate of the effective tax rate for the year. This estimate is reassessed on a quarterly basis. Discrete tax items are accounted for in the quarterly period in which they occur. On December 22, 2017, the Tax Cuts and Jobs Act was enacted in the United States. The Act reduces the U.S. federal corporate tax rate from a graduated rate of 35% to a flat rate of 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. Beginning in fiscal 2019, the Company incorporated certain provisions of the Act in the calculation of the tax provision and effective tax rate, including the provisions related to the Global Intangible Low Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), Base Erosion Anti Abuse Tax (“BEAT”), as well as other provisions, which limit tax deductibility of expenses. The GILTI provisions have had the most significant impact to the Company. Under the new law, U.S. taxes are imposed on foreign income in excess of a deemed return on tangible assets of its foreign subsidiaries. In general, this foreign income will effectively be taxed at an additional 10.5% tax rate reduced by any available current year foreign tax credits. The ability to benefit foreign tax credits may be limited under the GILTI rules as a result of the utilization of net operating losses, foreign sourced income and other potential limitations within the foreign tax credit calculation. In July 2020, the IRS issued final regulations and additional proposed regulations that address the application of the high-taxed exclusion from GILTI. Under these regulations, the Company can make an annual election to exclude from its GILTI inclusion, income from its foreign subsidiaries that’s effective income tax rate exceeds 18.9% for that year. The regulations must be applied for tax years beginning after July 23, 2020 but companies have the option to apply retroactively for tax years beginning after December 31, 2017 and before July 23, 2020. In the first quarter of fiscal 2021 the Company recognized a discrete tax benefit of ($2.7) million related to the impact of electing to apply the high-tax exclusion retroactively for fiscal year 2019 and fiscal year 2020. For the three month period ended December 31, 2021, the Company recognized tax expense of $1.0 million on a profit before tax of $3.5 million or an effective tax rate of 29%. For the three month period ended December 31, 2020, the Company recognized tax expense of $1.9 million on a profit before tax of $5.8 million or an effective tax rate of 33%. The tax rate for both fiscal 2022 and fiscal 2021 was higher than the U.S. statutory tax rate of 21% primarily due to the GILTI provisions and the jurisdictional mix of earnings, particularly Brazil with a statutory rate of 34%, offset by tax credits and permanent deductions generated from research expenses. For the six month period ended December 31, 2021, the Company recognized a tax benefit of $2.1 million on a profit before tax of $7.9 million or an effective tax rate of 27%. This was higher than the U.S. statutory tax rate of 21% primarily due to the GILTI provisions and the jurisdictional mix of earnings, particularly Brazil with a statutory rate of 34%, offset by discrete tax benefits recognized from excess stock compensation deductions, tax credits, and permanent deductions generated from research expenses. For the six month period ended December 31, 2020. the Company recognized tax expense of $(0.4) million on a profit before tax of $7.6 million or an effective tax rate of (5)%.This was lower than the U.S. statutory tax rate of 21% primarily due to the discrete benefits relating to legislation enacted during the first quarter of fiscal 2021 in the amount of ($2.7) million related to the impact of the GILTI high-tax exclusion and ($0.2) million related to the impact of the increase in UK corporate tax rate on the net deferred tax asset. Other factors impacting the tax rate include the GILTI provisions and the jurisdictional mix of earnings, particularly Brazil with a statutory rate of 34%, offset by tax credits and permanent deductions generated from research expenses. U.S. Federal tax returns for years prior to fiscal 2018 are generally no longer subject to review by tax authorities; however, tax loss carryforwards from earlier years are still subject to adjustment. As of December 31, 2021, the Company has substantially resolved all open income tax audits and there were no other local or federal income tax audits in progress. In international jurisdictions including Australia, Brazil, Canada, China, Germany, Mexico, New Zealand, Singapore and the UK, which comprise a significant portion of the Company’s operations, the years that may be examined vary by country. The Company’s most significant foreign subsidiary in Brazil is subject to audit for the calendar years 2015 – present. During the next twelve months, it is possible there will be a reduction of $0.1 million in long-term tax obligations due to the expiration of the statute of limitations on prior year tax returns. Accounting for income taxes requires estimates of future benefits and tax liabilities. Due to the temporary differences in the timing of recognition of items included in income for accounting and tax purposes, deferred tax assets or liabilities are recorded to reflect the impact arising from these differences on future tax payments. With respect to recorded tax assets, the Company assesses the likelihood that the asset will be realized by addressing the positive and negative evidence to determine whether realization is more likely than not to occur. If realization is in doubt because of uncertainty regarding future profitability, the Company provides a valuation allowance related to the asset to the extent that it is more likely than not that the deferred tax asset will not be realized. Should any significant changes in the tax law or the estimate of the necessary valuation allowance occur, the Company would record the impact of the change, which could have a material effect on the Company’s financial position. No valuation allowance has been recorded for the Company’s U.S. federal and foreign deferred tax assets related to temporary differences included in taxable income. While the Company continues to believe that forecasted future taxable income provide sufficient evidence to, more likely than not, support the realization of the tax benefits provided by those differences; the impact of COVID-19 may significantly impact its ability to forecast future pre-tax earnings in certain jurisdictions. If its forecasts are significantly impacted, the Company may need to record a valuation allowance on some or all its deferred tax assets as soon as the current fiscal year end. In the U.S., a partial valuation allowance has been provided for foreign tax credit carryforwards due to the uncertainty of generating sufficient foreign source income to utilize those credits in the future and certain state net operating loss carryforwards that will expire in the near future unutilized. |
Contingencies
Contingencies | 6 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesThe Company is involved in certain legal matters, which arise, in the normal course of business. These matters are not expected to have a material impact on the Company’s financial condition, results of operations or cash flows. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Account Policies (Policies) | 6 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The unaudited interim consolidated financial statements as of and for the six months ended December 31, 2021 have been prepared by The L.S. Starrett Company (the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. These unaudited consolidated financial statements, which, in the opinion of management, reflect all adjustments (including normal recurring adjustments) necessary for a fair presentation, should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2021. The balance sheet as of June 30, 2021 has been derived from the audited consolidated financial statements as of and for the year ended June 30, 2021. Operating results are not necessarily indicative of the results that may be expected for any future interim period or for the entire fiscal year. The Company’s “fiscal year” begins July 1 st and ends June 30 th . The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect amounts reported in the consolidated financial statements and accompanying notes. Note 2 to the Company’s consolidated financial statements included in the Annual Report on Form 10-K for the year ended June 30, 2021 describes the significant accounting policies and methods used in the preparation of the consolidated financial statements. |
Potential Impairment Due to COVID-19 | Throughout the pandemic crisis, the Company's main focus has been on protecting the health and well-being of its employees, and the long-term financial health of the Company. It remains very difficult for management to predict when this crisis will no longer be a risk to future sales and operations. To the extent that pandemic-related events do not provide evidence about conditions that existed at the balance-sheet date, the Company considers it necessary to disclose it cannot estimate all aspects of the impact on the financial statements as a result of the on-going pandemic. |
Recently Issued Accounting Standards not yet adopted | In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendment to the guidance, ASU 2018-19 in November 2018. The standard significantly 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 standard will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. The amendment will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2018-19 clarifies that receivables arising from operating leases are accounted for using lease guidance and not as financial instruments. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. This ASU is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption was permitted for annual periods beginning after December 15, 2018, and interim periods therein. This pronouncement was extended for Small Reporting Companies and for the Company to July 1, 2022. The Company does not expect the adoption of this standard to have a material impact on the financial position and results of operations. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of financial results for reportable segments | Financial results for each reportable segment are as follows (in thousands): North International Unallocated Total Three Months ended December 31, 2021 Sales 1 $ 32,666 $ 28,652 $ — $ 61,318 Operating Income (Loss) $ 1,549 $ 4,394 $ (1,742) $ 4,201 Three Months ended December 31, 2020 Sales 2 $ 27,106 $ 26,948 $ — $ 54,054 Operating Income (Loss) $ 3,688 $ 4,436 $ (1,923) $ 6,201 1. Excludes $930 of North American segment intercompany sales to the International segment, and $4,412 of International segment intercompany sales to the North American segment. 2. Excludes $992 of North American segment intercompany sales to the International segment, and $2,610 of International segment intercompany sales to the North American segment. North International Unallocated Total Six months ended December 31, 2021 Sales 1 $ 66,475 $ 56,357 $ — $ 122,832 Operating Income (Loss) $ 4,050 $ 7,977 $ (3,694) $ 8,333 Six months ended December 31, 2020 Sales 2 $ 53,089 $ 50,375 $ — $ 103,464 Operating Income (Loss) $ 4,516 $ 7,277 $ (3,757) $ 8,036 1. Excludes $1,679 of North American segment intercompany sales to the International segment, and $9,748 of International segment intercompany sales to the North American segment. 2. Excludes $1,737 of North American segment intercompany sales to the International segment, and $5,396 of International segment intercompany sales to the North American segment. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Three Months Ended Six Months Ended 12/31/2021 12/31/2020 12/31/2021 12/31/2020 North America United States $ 30,912 $ 25,345 $ 62,932 $ 49,682 Canada & Mexico 1,754 1,761 3,543 3,408 32,666 27,106 66,475 53,090 International Brazil 18,687 17,493 37,890 32,401 United Kingdom 4,729 5,554 9,697 10,548 China 2,244 2,005 3,862 3,586 Australia & New Zealand 2,992 1,896 4,908 3,839 28,652 26,948 56,357 50,374 Total Sales $ 61,318 $ 54,054 $ 122,832 $ 103,464 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of lease assets and liabilities | As of December 31, 2021, the Company’s right-of-use assets, lease obligations and remaining cash commitment on these leases (in thousands): Right-of-Use Operating Lease Remaining Cash Operating leases $ 5,772 $ 5,932 $ 7,201 |
Fiscal year minimum operating lease commitments | At December 31, 2021, the Company had the following fiscal year minimum operating lease commitments (in thousands) Six months ended December 31, 2021 Operating Lease 2021 (Remainder of year) $ 994 2023 1,689 2024 1,520 2025 1,129 2026 1,044 Thereafter 824 Subtotal $ 7,201 Imputed interest (1,269) Total 5,932 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following (in thousands): 12/31/2021 06/30/2021 Raw material and supplies $ 30,687 $ 29,271 Goods in process and finished parts 16,592 16,096 Finished goods 37,853 37,344 85,132 82,711 LIFO Reserve (21,258) (22,139) $ 63,874 $ 60,572 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizable intangible assets | Amortizable intangible assets consist of the following (in thousands): 12/31/2021 6/30/2021 Trademarks and trade names 2,070 2,070 Customer relationships 630 630 Software development 10,777 10,244 Total 13,477 12,944 Accumulated amortization and impairment (8,716) (8,056) Total net balance $ 4,761 $ 4,888 |
Estimated aggregate amortization expense | The estimated aggregate amortization expense for the remainder of fiscal 2021 and for each of the next five years and thereafter, is as follows (in thousands): 2022 (Remainder of year) $ 701 2023 1,260 2024 989 2025 829 2026 619 Thereafter 363 Total net balance $ 4,761 |
Pension and Post-retirement B_2
Pension and Post-retirement Benefits (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of net benefit costs | Net periodic benefit costs consist of the following (in thousands): Three Months Ended Six Months Ended 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Interest cost 1,031 1,118 2,064 2,231 Expected return on plan assets (1,098) (1,113) (2,198) (2,221) Amortization of net loss 15 14 28 27 $ (52) $ 19 $ (106) $ 37 Net periodic benefit costs for the Company's Postretirement Medical Plan consists of the following (in thousands): Three Months Ended Six Months Ended 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Service cost $ 9 $ 22 $ 18 $ 43 Interest cost 13 52 25 103 Amortization of prior service credit (369) (135) (737) (269) Amortization of net loss 47 41 94 83 $ (300) $ (20) $ (600) $ (40) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt schedule | Debt is comprised of the following (in thousands): 12/31/2021 06/30/2021 Short-term and current maturities Loan and Security Agreement (Line of credit) 13,746 9,153 Loan and Security Agreement (Term Loan) 1,509 1,509 Brazil Loans 6,714 5,297 21,969 15,959 Long-term debt (net of current portion) Loan and Security Agreement (Term Loan) 5,158 6,010 Brazil Loans 4,000 — 9,158 6,010 $ 31,127 $ 21,969 |
Schedule of short-term debt, Brazilian subsidiary | The Company’s Brazilian subsidiary has the following loans of December 31, 2021 (in thousands): Lending Institution Interest Rate Beginning Date Ending Date Outstanding Balance Santander 5.98% February 2021 February 2022 $ 1,219 Brasil 2.80% May 2021 May 2022 $ 795 Bradesco 1.88% July 2021 July 2022 $ 1,170 Bradesco 2.05% August 2021 July 2022 $ 400 Santander 2.15% August 2021 July 2022 $ 731 Brasil 2.10% August 2021 August 2022 $ 1,400 Itau 4.52% October 2021 September 2024 $ 4,000 Santander 2.71% December 2021 December 2022 1,000 $ 10,714 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Summary o
Segment Information - Summary of financial results for reportable segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Sales | $ 61,318 | $ 54,054 | $ 122,832 | $ 103,464 |
Operating Income (Loss) | 4,201 | 6,201 | 8,333 | 8,036 |
Unallocated | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Operating Income (Loss) | (1,742) | (1,923) | (3,694) | (3,757) |
North American Operations | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Sales | 32,666 | 27,106 | 66,475 | 53,090 |
North American Operations | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Sales | 32,666 | 27,106 | 66,475 | 53,089 |
Operating Income (Loss) | 1,549 | 3,688 | 4,050 | 4,516 |
North American Operations | Intercompany sales | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Intercompany sales | 930 | 992 | 1,679 | 1,737 |
International Operations | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Sales | 28,652 | 26,948 | 56,357 | 50,375 |
Operating Income (Loss) | 4,394 | 4,436 | 7,977 | 7,277 |
International Operations | Intercompany sales | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Intercompany sales | $ 4,412 | $ 2,610 | $ 9,748 | $ 5,396 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) | 6 Months Ended | |
Dec. 31, 2021USD ($)segment | Jun. 30, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Customer return asset | $ 100,000 | $ 200,000 |
Customer refund liability | 200,000 | 200,000 |
Contract asset | 0 | 0 |
Contract liability | $ 900,000 | $ 600,000 |
Number of reportable segments | segment | 2 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 61,318 | $ 54,054 | $ 122,832 | $ 103,464 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 32,666 | 27,106 | 66,475 | 53,090 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 28,652 | 26,948 | 56,357 | 50,374 |
United States | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 30,912 | 25,345 | 62,932 | 49,682 |
Canada & Mexico | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,754 | 1,761 | 3,543 | 3,408 |
Brazil | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 18,687 | 17,493 | 37,890 | 32,401 |
United Kingdom | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,729 | 5,554 | 9,697 | 10,548 |
China | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,244 | 2,005 | 3,862 | 3,586 |
Australia & New Zealand | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,992 | $ 1,896 | $ 4,908 | $ 3,839 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($)ft² | Jul. 31, 2021USD ($) | Jun. 30, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |||||||
Operating lease cost | $ 800 | $ 600 | $ 1,600 | $ 1,200 | |||
Right of use assets | $ 5,772 | $ 5,772 | $ 2,600 | $ 4,298 | |||
Annual rent income from lease | $ 200 | ||||||
Weighted average discount rate | 9.00% | 9.00% | |||||
Weighted average remaining lease term | 4 years 7 months 6 days | 4 years 7 months 6 days | |||||
Operating lease commitments | $ 100 | $ 2,600 | |||||
China | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease term | 6 years | ||||||
Square footage leased | ft² | 100,682 | ||||||
United Kingdom | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Term of UK lease contract | 20 years |
Leases - Summary of lease asset
Leases - Summary of lease assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |||
Right-of-Use Assets | $ 5,772 | $ 2,600 | $ 4,298 |
Operating Lease Obligations | 5,932 | ||
Remaining Cash Commitment | $ 7,201 |
Leases - Fiscal year minimum op
Leases - Fiscal year minimum operating lease commitments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 (Remainder of year) | $ 994 |
2023 | 1,689 |
2024 | 1,520 |
2025 | 1,129 |
2026 | 1,044 |
Thereafter | 824 |
Subtotal | 7,201 |
Imputed interest | (1,269) |
Total | $ 5,932 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 05, 2012 | |
The 2012 Stock Incentive Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Shares available for grant under 2012 plan (in shares) | 441,901 | 441,901 | |||
Weighted average contractual term for stock options outstanding (in years) | 1 year | ||||
Compensation expense related to stock-based plans | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.5 | |
Unrecognized stock-based compensation costs | $ 1.1 | $ 1.1 | |||
Expected weighted average vesting period (in years) | 2 years | ||||
The 2012 and 2021 Stock Incentive Plans | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Shares of common stock authorized by 2012 and 2021 plans (in shares) | 500,000 | ||||
Share-based Payment Arrangement, Option | The 2012 Stock Incentive Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Expiration date of options granted (in years) | 10 years | ||||
Shares outstanding (in shares) | 0 | 0 | |||
Stock options granted (in shares) | 0 | 0 | |||
Forfeiture of options (in shares) | 0 | ||||
Restricted Stock Units (RSUs) | The 2012 Stock Incentive Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Shares outstanding (in shares) | 205,636 | 205,636 | |||
Aggregate intrinsic value of shares outstanding (less than) | $ 1.9 | $ 1.9 | |||
Restricted stock awards (in shares) | 80,500 | ||||
Fair value of restricted stock award grants (in dollars per share) | $ 11.35 | ||||
Restricted stock awards vested (in shares) | 124,668 | ||||
Restricted stock awards forfeited (in shares) | 11,174 | ||||
Unrecognized stock-based compensation costs | 2.8 | $ 2.8 | |||
Portion Relating to RSU Grants Not Expected to be Awarded | The 2012 Stock Incentive Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Unrecognized stock-based compensation costs | $ 1.7 | $ 1.7 | |||
Minimum | Share-based Payment Arrangement, Option | The 2012 Stock Incentive Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Vesting period of shares granted (in years) | 1 year | ||||
Minimum | Restricted Stock Units (RSUs) | The 2012 Stock Incentive Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Vesting period of shares granted (in years) | 1 year | ||||
Maximum | Share-based Payment Arrangement, Option | The 2012 Stock Incentive Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Vesting period of shares granted (in years) | 3 years | ||||
Maximum | Restricted Stock Units (RSUs) | The 2012 Stock Incentive Plan | |||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||
Vesting period of shares granted (in years) | 3 years |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw material and supplies | $ 30,687 | $ 29,271 |
Goods in process and finished parts | 16,592 | 16,096 |
Finished goods | 37,853 | 37,344 |
Total before LIFO reserve | 85,132 | 82,711 |
LIFO Reserve | (21,258) | (22,139) |
Total | $ 63,874 | $ 60,572 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |||
Inventories | $ 63,874 | $ 60,572 | |
Inventory, LIFO Reserve | 21,258 | 22,139 | |
Inventory difference using FIFO basis | 30,200 | 27,800 | |
LIFO inventory amount | 8,900 | $ 5,700 | |
Effect of LIFO Reserve on income | $ 100 | $ 400 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 1,015 | $ 1,015 | |||
Bytewise and Private Software Company | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 4,700 | ||||
Private Software Company | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 1,000 | ||||
Impairment of intangible assets | $ 2,900 | ||||
Goodwill impairment loss | 600 | ||||
Bytewise | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 0 | ||||
Goodwill impairment loss | $ 3,000 | ||||
Computer software | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset useful life | 5 years | ||||
Trademarks and trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset useful life | 20 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 13,477 | $ 12,944 |
Accumulated amortization and impairment | (8,716) | (8,056) |
Total net balance | 4,761 | 4,888 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 2,070 | 2,070 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 630 | 630 |
Software development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 10,777 | $ 10,244 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (Remainder of year) | $ 701 | |
2023 | 1,260 | |
2024 | 989 | |
2025 | 829 | |
2026 | 619 | |
Thereafter | 363 | |
Total net balance | $ 4,761 | $ 4,888 |
Pension and Post-retirement B_3
Pension and Post-retirement Benefits (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2021USD ($)plan | Dec. 31, 2021USD ($)plan | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of defined benefit pension plans | plan | 2 | 2 |
Expected future contributions for the current year | $ 0.5 | $ 0.5 |
Pension Plan | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 1.5 | |
Expected employer contributions for remainder of the fiscal year | 5.6 | 5.6 |
Expected future contributions for current fiscal year, after legislation | 0.6 | 0.6 |
Pension Plan | Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 0.3 | 0.5 |
Expected employer contributions for remainder of the fiscal year | $ 1 | $ 1 |
Pension and Post-retirement B_4
Pension and Post-retirement Benefits - Net Periodic Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 1,031 | $ 1,118 | $ 2,064 | $ 2,231 |
Expected return on plan assets | (1,098) | (1,113) | (2,198) | (2,221) |
Amortization of net loss | 15 | 14 | 28 | 27 |
Total | (52) | 19 | (106) | 37 |
Post Retirement Medical Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 9 | 22 | 18 | 43 |
Interest cost | 13 | 52 | 25 | 103 |
Amortization of prior service credit | (369) | (135) | (737) | (269) |
Amortization of net loss | 47 | 41 | 94 | 83 |
Total | $ (300) | $ (20) | $ (600) | $ (40) |
Debt - Debt schedule (Details)
Debt - Debt schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 |
Short-term Debt [Abstract] | ||
Loan and Security Agreement | $ 21,969 | $ 15,959 |
Brazil Loans | 10,714 | |
Short-term and current maturities | 21,969 | 15,959 |
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Loan and Security Agreement | 9,158 | 6,010 |
Long-term debt | 31,127 | 21,969 |
Loan and Security Agreement (Term Loan) | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Loan and Security Agreement | 5,158 | 6,010 |
Loan and Security Agreement (Line of credit) | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ||
Loan and Security Agreement | 4,000 | 0 |
Loan and Security Agreement (Line of credit) | ||
Short-term Debt [Abstract] | ||
Loan and Security Agreement | 13,746 | 9,153 |
Loan and Security Agreement (Term Loan) | ||
Short-term Debt [Abstract] | ||
Loan and Security Agreement | 1,509 | 1,509 |
Brazil Loans | ||
Short-term Debt [Abstract] | ||
Brazil Loans | $ 6,714 | $ 5,297 |
Debt (Details)
Debt (Details) - USD ($) | Jun. 25, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Jun. 24, 2020 | Dec. 30, 2019 |
Debt Instrument [Line Items] | |||||
Credit limit on revolving loan facility | $ 25,000,000 | $ 25,000,000 | $ 23,000,000 | ||
Commitment fee percentage on line of credit | 0.25% | ||||
Loan and Security Agreement | |||||
Debt Instrument [Line Items] | |||||
Face value of term loan | $ 5,000,000 | ||||
Amended and Restated Loan And Security Agreement, Foreign Bank Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face value of term loan | $ 15,000,000 | ||||
Amended and Restated Loan And Security Agreement, Term Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 2.25% | ||||
Amended and Restated Loan And Security Agreement, Term Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate | 3.50% | ||||
All Debt | |||||
Debt Instrument [Line Items] | |||||
Increase in debt | $ 9,200,000 | ||||
Brazil Debt | |||||
Debt Instrument [Line Items] | |||||
Increase in debt | 5,400,000 | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face value of term loan | $ 10,000,000 | ||||
Term of loan | 5 years | ||||
Fixed interest rate | 4.00% | ||||
Credit limit for external borrowing | $ 5,000,000 | $ 2,500,000 | |||
Line of Credit | Loan and Security Agreement | |||||
Debt Instrument [Line Items] | |||||
Percent of qualified AR | 80.00% | ||||
Percent of the lower of Cost or Market of US Inventory values | 50.00% | ||||
Line of Credit | Amended and Restated Loan And Security Agreement, Term Loan | |||||
Debt Instrument [Line Items] | |||||
Credit limit on revolving loan facility | $ 25,000,000 | ||||
Percent of qualified AR | 80.00% | ||||
Percent of Net Orderly Liquidation Value (NOLV) | 85.00% | ||||
Percent of US real estate values | 62.50% |
Debt - Short-term Debt (Details
Debt - Short-term Debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Statement [Line Items] | |
Brazil Loans | $ 10,714 |
Santander Bank | 5.98% Short-term loan | |
Statement [Line Items] | |
Interest rate | 5.98% |
Brazil Loans | $ 1,219 |
Santander Bank | 2.15% Short-term loan | |
Statement [Line Items] | |
Interest rate | 2.15% |
Brazil Loans | $ 731 |
Santander Bank | 2.71% Short-term loan | |
Statement [Line Items] | |
Interest rate | 2.71% |
Brazil Loans | $ 1,000 |
Brasil Bank | 2.80% Short-term loan | |
Statement [Line Items] | |
Interest rate | 2.80% |
Brazil Loans | $ 795 |
Brasil Bank | 2.10% Short-term loan | |
Statement [Line Items] | |
Interest rate | 2.10% |
Brazil Loans | $ 1,400 |
Bradesco Bank | 1.88% Short-term loan | |
Statement [Line Items] | |
Interest rate | 1.88% |
Brazil Loans | $ 1,170 |
Bradesco Bank | 2.05% Short-term loan | |
Statement [Line Items] | |
Interest rate | 2.05% |
Brazil Loans | $ 400 |
Itau Bank | 4.52% Short-term loan | |
Statement [Line Items] | |
Interest rate | 4.52% |
Brazil Loans | $ 4,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||||
Effective income tax rate percentage | 29.00% | 18.90% | 33.00% | 27.00% | (5.00%) |
Income tax expense (benefit) | $ 1,011 | $ 1,918 | $ 2,137 | $ (364) | |
Profit before tax | 3,500 | $ 5,800 | 7,900 | $ 7,600 | |
Possible reduction in long-term tax obligations | 100 | $ 100 | |||
Tax Years 2019 and 2020 | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ (2,700) | $ (2,700) | |||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | |||||
Operating Loss Carryforwards [Line Items] | |||||
Effect of increase in UK corporate tax rate | $ (200) |