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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Sifco Industries Inc | AMEX:SIF | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.13 | 4.26% | 3.18 | 3.18 | 3.05 | 3.13 | 989 | 01:00:00 |
|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Ohio
|
|
34-0553950
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
970 East 64th Street, Cleveland Ohio
|
|
44103
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
Large accelerated filer
|
¨
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
ý
|
|
|
|
|
|
|
Emerging growth company
|
¨
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Shares
|
|
SIF
|
|
NYSE American
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net sales
|
$
|
27,777
|
|
|
$
|
24,873
|
|
|
$
|
84,521
|
|
|
$
|
81,331
|
|
Cost of goods sold
|
23,628
|
|
|
23,486
|
|
|
70,771
|
|
|
75,119
|
|
||||
Gross profit
|
4,149
|
|
|
1,387
|
|
|
13,750
|
|
|
6,212
|
|
||||
Selling, general and administrative expenses
|
2,864
|
|
|
3,481
|
|
|
10,393
|
|
|
11,375
|
|
||||
Goodwill impairment
|
—
|
|
|
8,294
|
|
|
—
|
|
|
8,294
|
|
||||
Amortization of intangible assets
|
408
|
|
|
411
|
|
|
1,224
|
|
|
1,239
|
|
||||
Loss (gain) on disposal or impairment of operating assets
|
55
|
|
|
—
|
|
|
98
|
|
|
(282
|
)
|
||||
Gain on insurance proceeds received
|
(1,683
|
)
|
|
(3,304
|
)
|
|
(2,683
|
)
|
|
(4,468
|
)
|
||||
Operating income (loss)
|
2,505
|
|
|
(7,495
|
)
|
|
4,718
|
|
|
(9,946
|
)
|
||||
Interest income
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Interest expense
|
183
|
|
|
230
|
|
|
697
|
|
|
838
|
|
||||
Foreign currency exchange gain (loss), net
|
12
|
|
|
(3
|
)
|
|
12
|
|
|
(4
|
)
|
||||
Other loss (income), net
|
27
|
|
|
(15
|
)
|
|
(58
|
)
|
|
(50
|
)
|
||||
Income (loss) before income tax (benefit) expense
|
2,283
|
|
|
(7,706
|
)
|
|
4,067
|
|
|
(10,727
|
)
|
||||
Income tax (benefit) expense
|
33
|
|
|
(336
|
)
|
|
(101
|
)
|
|
(816
|
)
|
||||
Net income (loss)
|
$
|
2,250
|
|
|
$
|
(7,370
|
)
|
|
$
|
4,168
|
|
|
$
|
(9,911
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.40
|
|
|
$
|
(1.32
|
)
|
|
$
|
0.74
|
|
|
$
|
(1.78
|
)
|
Diluted
|
$
|
0.39
|
|
|
$
|
(1.32
|
)
|
|
$
|
0.72
|
|
|
$
|
(1.78
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average number of common shares (basic)
|
5,676
|
|
|
5,571
|
|
|
5,656
|
|
|
5,556
|
|
||||
Weighted-average number of common shares (diluted)
|
5,807
|
|
|
5,571
|
|
|
5,768
|
|
|
5,556
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income (loss)
|
$
|
2,250
|
|
|
$
|
(7,370
|
)
|
|
$
|
4,168
|
|
|
$
|
(9,911
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
113
|
|
|
146
|
|
|
175
|
|
|
(441
|
)
|
||||
Retirement plan liability adjustment
|
188
|
|
|
108
|
|
|
626
|
|
|
322
|
|
||||
Comprehensive income (loss)
|
$
|
2,551
|
|
|
$
|
(7,116
|
)
|
|
$
|
4,969
|
|
|
$
|
(10,030
|
)
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
|
(unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
289
|
|
|
$
|
341
|
|
Receivables, net of allowance for doubtful accounts of $229 and $592, respectively
|
18,961
|
|
|
23,159
|
|
||
Other receivables
|
—
|
|
|
3,500
|
|
||
Contract asset
|
13,134
|
|
|
10,349
|
|
||
Inventories, net
|
15,288
|
|
|
10,509
|
|
||
Refundable income taxes
|
131
|
|
|
141
|
|
||
Prepaid expenses and other current assets
|
1,518
|
|
|
1,459
|
|
||
Total current assets
|
49,321
|
|
|
49,458
|
|
||
Property, plant and equipment, net
|
42,929
|
|
|
39,610
|
|
||
Operating lease right-of-use assets, net
|
17,363
|
|
|
—
|
|
||
Intangible assets, net
|
2,128
|
|
|
3,320
|
|
||
Goodwill
|
3,493
|
|
|
3,493
|
|
||
Other assets
|
115
|
|
|
218
|
|
||
Total assets
|
$
|
115,349
|
|
|
$
|
96,099
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
6,682
|
|
|
$
|
5,786
|
|
Revolver
|
11,302
|
|
|
15,542
|
|
||
Short-term operating lease liabilities
|
1,111
|
|
|
—
|
|
||
Accounts payable
|
15,781
|
|
|
19,799
|
|
||
Accrued liabilities
|
7,222
|
|
|
5,557
|
|
||
Total current liabilities
|
42,098
|
|
|
46,684
|
|
||
Long-term debt, net of current maturities
|
4,490
|
|
|
2,052
|
|
||
Long-term operating lease liabilities, net of short-term
|
16,383
|
|
|
—
|
|
||
Deferred income taxes
|
1,650
|
|
|
1,718
|
|
||
Pension liability
|
8,627
|
|
|
9,528
|
|
||
Other long-term liabilities
|
778
|
|
|
63
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Serial preferred shares, no par value, authorized 1,000 shares
|
—
|
|
|
—
|
|
||
Common shares, par value $1 per share, authorized 10,000 shares; issued and outstanding shares 5,916 at June 30, 2020 and 5,777 at September 30, 2019
|
5,916
|
|
|
5,777
|
|
||
Additional paid-in capital
|
10,599
|
|
|
10,438
|
|
||
Retained earnings
|
37,316
|
|
|
33,148
|
|
||
Accumulated other comprehensive loss
|
(12,508
|
)
|
|
(13,309
|
)
|
||
Total shareholders’ equity
|
41,323
|
|
|
36,054
|
|
||
Total liabilities and shareholders’ equity
|
$
|
115,349
|
|
|
$
|
96,099
|
|
|
Nine Months Ended
June 30, |
||||||
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
4,168
|
|
|
$
|
(9,911
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
5,576
|
|
|
5,735
|
|
||
Amortization of debt issuance cost
|
79
|
|
|
72
|
|
||
Loss (gain) on disposal of operating assets or impairment of operating assets
|
98
|
|
|
(282
|
)
|
||
Gain on insurance proceeds received
|
(2,683
|
)
|
|
(4,468
|
)
|
||
Goodwill impairment
|
—
|
|
|
8,294
|
|
||
LIFO effect
|
(16
|
)
|
|
98
|
|
||
Share transactions under company stock plan
|
253
|
|
|
367
|
|
||
Other long-term liabilities
|
(291
|
)
|
|
(80
|
)
|
||
Deferred income taxes
|
(116
|
)
|
|
(251
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables
|
4,347
|
|
|
7,602
|
|
||
Contract assets
|
(2,785
|
)
|
|
1,230
|
|
||
Inventories
|
(4,623
|
)
|
|
(411
|
)
|
||
Refundable income taxes
|
10
|
|
|
(533
|
)
|
||
Prepaid expenses and other current assets
|
(125
|
)
|
|
400
|
|
||
Other assets
|
142
|
|
|
1
|
|
||
Accounts payable
|
(4,175
|
)
|
|
235
|
|
||
Other accrued liabilities
|
2,465
|
|
|
1,295
|
|
||
Accrued income and other taxes
|
(30
|
)
|
|
(21
|
)
|
||
Net cash provided by operating activities
|
2,294
|
|
|
9,372
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Insurance proceeds received
|
6,183
|
|
|
5,574
|
|
||
Proceeds from disposal of operating assets
|
—
|
|
|
317
|
|
||
Capital expenditures
|
(7,441
|
)
|
|
(7,036
|
)
|
||
Net cash used for investing activities
|
(1,258
|
)
|
|
(1,145
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from long-term debt
|
5,161
|
|
|
2,748
|
|
||
Payments on long-term debt
|
(839
|
)
|
|
(1,127
|
)
|
||
Proceeds from revolving credit agreement
|
85,082
|
|
|
50,818
|
|
||
Repayments of revolving credit agreement
|
(89,323
|
)
|
|
(59,383
|
)
|
||
Payment of debt issue costs
|
—
|
|
|
(132
|
)
|
||
Short-term debt borrowings
|
2,139
|
|
|
3,447
|
|
||
Short-term debt repayments
|
(3,319
|
)
|
|
(5,093
|
)
|
||
Share retirement
|
—
|
|
|
(62
|
)
|
||
Net cash used for financing activities
|
(1,099
|
)
|
|
(8,784
|
)
|
||
Decrease in cash and cash equivalents
|
(63
|
)
|
|
(557
|
)
|
||
Cash and cash equivalents at the beginning of the period
|
341
|
|
|
1,252
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
11
|
|
|
6
|
|
||
Cash and cash equivalents at the end of the period
|
$
|
289
|
|
|
$
|
701
|
|
Supplemental disclosure of cash flow information of operations:
|
|
|
|
||||
Cash paid for interest
|
$
|
(583
|
)
|
|
$
|
(781
|
)
|
Cash paid for income taxes, net
|
$
|
(41
|
)
|
|
$
|
(103
|
)
|
Non-cash investing activities:
|
|
|
|
||||
Additions to property, plant & equipment - incurred but not yet paid
|
$
|
20
|
|
|
$
|
848
|
|
|
|
Nine Months Ended
June 30, 2020 |
|||||||||||||||||||||
|
|
Common
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Shareholders’
Equity
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance - September 30, 2019
|
|
5,777
|
|
|
$
|
5,777
|
|
|
$
|
10,438
|
|
|
$
|
33,148
|
|
|
$
|
(13,309
|
)
|
|
$
|
36,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,168
|
|
|
801
|
|
|
4,969
|
|
|||||
Other
|
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
||||||
Performance and restricted share expense
|
|
—
|
|
|
—
|
|
|
262
|
|
|
—
|
|
|
—
|
|
|
262
|
|
|||||
Share transactions under equity based plans
|
|
139
|
|
|
139
|
|
|
(147
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|||||
Balance - June 30, 2020
|
|
5,916
|
|
|
$
|
5,916
|
|
|
$
|
10,599
|
|
|
$
|
37,316
|
|
|
$
|
(12,508
|
)
|
|
$
|
41,323
|
|
|
|
Three Months Ended
June 30, 2020 |
|||||||||||||||||||||
|
|
Common
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Shareholders’
Equity
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance - March 31, 2020
|
|
5,916
|
|
|
$
|
5,916
|
|
|
$
|
10,516
|
|
|
$
|
35,066
|
|
|
$
|
(12,809
|
)
|
|
$
|
38,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,250
|
|
|
301
|
|
|
2,551
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|||||
Performance and restricted share expense
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Balance - June 30, 2020
|
|
5,916
|
|
|
$
|
5,916
|
|
|
$
|
10,599
|
|
|
$
|
37,316
|
|
|
$
|
(12,508
|
)
|
|
$
|
41,323
|
|
|
|
Nine Months Ended
June 30, 2019 |
|||||||||||||||||||||
|
|
Common
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Shareholders’
Equity
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance - September 30, 2018
|
|
5,690
|
|
|
$
|
5,690
|
|
|
$
|
10,031
|
|
|
$
|
37,097
|
|
|
$
|
(8,629
|
)
|
|
$
|
44,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cumulative effect for the adoption of ASC 606
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,598
|
|
|
—
|
|
|
3,598
|
|
|||||
Comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,911
|
)
|
|
(119
|
)
|
|
(10,030
|
)
|
|||||
Share retirement
|
|
(21
|
)
|
|
(21
|
)
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
(62
|
)
|
|||||
Performance and restricted share expense
|
|
—
|
|
|
—
|
|
|
367
|
|
|
—
|
|
|
—
|
|
|
367
|
|
|||||
Share transactions under equity based plans
|
|
104
|
|
|
104
|
|
|
(104
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Balance - June 30, 2019
|
|
5,773
|
|
|
$
|
5,773
|
|
|
$
|
10,294
|
|
|
$
|
30,743
|
|
|
$
|
(8,748
|
)
|
|
$
|
38,062
|
|
|
|
Three Months Ended
June 30, 2019 |
|||||||||||||||||||||
|
|
Common
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Shareholders’
Equity
|
|||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance - March 31, 2019
|
|
5,773
|
|
|
$
|
5,773
|
|
|
$
|
10,353
|
|
|
$
|
38,113
|
|
|
$
|
(9,002
|
)
|
|
$
|
45,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,370
|
)
|
|
254
|
|
|
(7,116
|
)
|
|||||
Performance and restricted share expense
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
|
(59
|
)
|
|||||
Balance - June 30, 2019
|
|
5,773
|
|
|
$
|
5,773
|
|
|
$
|
10,294
|
|
|
$
|
30,743
|
|
|
$
|
(8,748
|
)
|
|
$
|
38,062
|
|
1.
|
Summary of Significant Accounting Policies
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net Income (loss)
|
$
|
2,250
|
|
|
$
|
(7,370
|
)
|
|
$
|
4,168
|
|
|
$
|
(9,911
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding (basic and diluted)
|
5,676
|
|
|
5,571
|
|
|
5,656
|
|
|
5,556
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Restricted shares
|
115
|
|
|
—
|
|
|
106
|
|
|
—
|
|
||||
Performance shares
|
16
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Weighted-average common shares outstanding (basic and diluted)
|
5,807
|
|
|
5,571
|
|
|
5,768
|
|
|
5,556
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share – basic:
|
$
|
0.40
|
|
|
$
|
(1.32
|
)
|
|
$
|
0.74
|
|
|
$
|
(1.78
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share – diluted:
|
$
|
0.39
|
|
|
$
|
(1.32
|
)
|
|
$
|
0.72
|
|
|
$
|
(1.78
|
)
|
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive weighted-average common shares excluded from calculation of diluted earnings per share
|
306
|
|
|
214
|
|
|
200
|
|
|
200
|
|
2.
|
Inventories
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
Raw materials and supplies
|
$
|
5,629
|
|
|
$
|
4,512
|
|
Work-in-process
|
4,052
|
|
|
2,721
|
|
||
Finished goods
|
5,607
|
|
|
3,276
|
|
||
Total inventories
|
$
|
15,288
|
|
|
$
|
10,509
|
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
Foreign currency translation adjustment
|
$
|
(5,492
|
)
|
|
$
|
(5,667
|
)
|
Retirement plan liability adjustment, net of tax
|
(7,016
|
)
|
|
(7,642
|
)
|
||
Total accumulated other comprehensive loss
|
$
|
(12,508
|
)
|
|
$
|
(13,309
|
)
|
|
Three Months Ended
June 30, 2020 |
|
Nine Months Ended
June 30, 2020 |
||||
Lease expense
|
|
|
|
||||
Finance lease expense:
|
|
|
|
||||
Amortization of right-of use assets on finance leases
|
$
|
14
|
|
|
41
|
|
|
Interest on lease liabilities
|
1
|
|
|
4
|
|
||
Operating lease expense:
|
664
|
|
|
1,743
|
|
||
Variable lease cost:
|
39
|
|
|
118
|
|
||
Total lease expense
|
$
|
718
|
|
|
$
|
1,906
|
|
|
Classification to the consolidated condensed balance sheets
|
|
June 30,
2020 |
||
Assets:
|
|
|
|
||
Finance lease assets
|
Property, plant and equipment, net
|
|
$
|
102
|
|
Operating lease assets
|
Operating lease right-of-use assets, net
|
|
17,363
|
|
|
Total lease assets
|
|
|
$
|
17,465
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
||
Finance lease liabilities
|
Current maturities of long-term debt
|
|
$
|
59
|
|
Operating lease liabilities
|
Short-term operating lease liabilities
|
|
1,111
|
|
|
Non-current liabilities:
|
|
|
|
||
Finance lease liabilities
|
Long-term debt, net of current maturities
|
|
35
|
|
|
Operating lease liabilities
|
Long-term operating lease liabilities, net of short-term
|
|
16,383
|
|
|
Total lease liabilities
|
|
|
$
|
17,588
|
|
|
June 30,
2020 |
||
Other Information
|
|
||
Cash paid for amounts included in measurement of liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
1,628
|
|
Operating cash flows from finance leases
|
4
|
|
|
Financing cash flows from finance leases
|
42
|
|
|
Right-of-use assets obtained in exchange for new lease liabilities:
|
|
||
Operating leases
|
278
|
|
|
June 30,
2020 |
|
Weighted-average remaining lease term (years):
|
|
|
Finance leases
|
1.9
|
|
Operating leases
|
15.2
|
|
Weighted-average discount rate:
|
|
|
Finance leases
|
5.0
|
%
|
Operating leases
|
5.9
|
%
|
|
Finance Leases
|
Operating Leases
|
||||
Year ending September 30,
|
|
|
||||
2020 (excluding the nine months ended June 30, 2020)
|
15
|
|
543
|
|
||
2021
|
55
|
|
1,933
|
|
||
2022
|
21
|
|
1,683
|
|
||
2023
|
6
|
|
1,623
|
|
||
2024
|
—
|
|
1,638
|
|
||
Thereafter
|
—
|
|
19,179
|
|
||
Total lease payments
|
$
|
97
|
|
$
|
26,599
|
|
Less: Imputed interest
|
(3
|
)
|
(9,105
|
)
|
||
Present value of lease liabilities
|
$
|
94
|
|
$
|
17,494
|
|
|
Finance Leases
|
Operating Leases
|
||||
Year ending September 30,
|
|
|
||||
2020
|
$
|
61
|
|
$
|
2,172
|
|
2021
|
61
|
|
1,865
|
|
||
2022
|
21
|
|
1,583
|
|
||
2023
|
6
|
|
1,502
|
|
||
2024
|
—
|
|
1,498
|
|
||
Thereafter
|
—
|
|
16,711
|
|
||
Total lease payments
|
$
|
149
|
|
$
|
25,331
|
|
Less: Interest
|
(11
|
)
|
|
|||
Present value of lease liabilities
|
$
|
138
|
|
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
Revolving credit agreement
|
$
|
11,302
|
|
|
$
|
15,542
|
|
Foreign subsidiary borrowings
|
5,159
|
|
|
6,592
|
|
||
Finance lease obligations
|
94
|
|
|
138
|
|
||
Other, net of unamortized debt issuance costs ($23) and ($25), respectively
|
5,919
|
|
|
1,108
|
|
||
Total debt
|
22,474
|
|
|
23,380
|
|
||
|
|
|
|
||||
Less – current maturities
|
(17,984
|
)
|
|
(21,328
|
)
|
||
Total long-term debt
|
$
|
4,490
|
|
|
$
|
2,052
|
|
|
June 30,
2020 |
|
September 30,
2019 |
||||
Term loan
|
$
|
1,890
|
|
|
$
|
2,318
|
|
Short-term borrowings
|
3,071
|
|
|
3,744
|
|
||
Factor
|
198
|
|
|
530
|
|
||
Total debt
|
$
|
5,159
|
|
|
$
|
6,592
|
|
|
|
|
|
||||
Less – current maturities
|
(4,323
|
)
|
|
(5,501
|
)
|
||
Total long-term debt
|
$
|
836
|
|
|
$
|
1,091
|
|
|
|
|
|
||||
Receivables pledged as collateral
|
$
|
1,322
|
|
|
$
|
672
|
|
7.
|
Retirement Benefit Plans
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Service cost
|
$
|
85
|
|
|
$
|
74
|
|
|
$
|
255
|
|
|
$
|
224
|
|
Interest cost
|
208
|
|
|
264
|
|
|
624
|
|
|
791
|
|
||||
Expected return on plan assets
|
(363
|
)
|
|
(393
|
)
|
|
(1,090
|
)
|
|
(1,180
|
)
|
||||
Amortization of net loss
|
188
|
|
|
107
|
|
|
564
|
|
|
322
|
|
||||
Net periodic cost
|
$
|
118
|
|
|
$
|
52
|
|
|
$
|
353
|
|
|
$
|
157
|
|
8.
|
Stock-Based Compensation
|
9.
|
Revenue
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Commercial revenue
|
$
|
12,266
|
|
|
$
|
14,713
|
|
|
$
|
34,954
|
|
|
$
|
41,213
|
|
Military revenue
|
15,511
|
|
|
10,160
|
|
|
49,567
|
|
|
40,118
|
|
||||
Total
|
$
|
27,777
|
|
|
$
|
24,873
|
|
|
$
|
84,521
|
|
|
$
|
81,331
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
Net Sales
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Aerospace components for:
|
|
|
|
|
|
|
|
||||||||
Fixed wing aircraft
|
$
|
13,730
|
|
|
$
|
12,557
|
|
|
$
|
39,130
|
|
|
$
|
38,949
|
|
Rotorcraft
|
8,687
|
|
|
5,088
|
|
|
22,348
|
|
|
17,261
|
|
||||
Energy components for power generation units
|
3,804
|
|
|
4,887
|
|
|
9,879
|
|
|
13,347
|
|
||||
Commercial product and other revenue
|
1,556
|
|
|
2,341
|
|
|
13,164
|
|
|
11,774
|
|
||||
Total
|
$
|
27,777
|
|
|
$
|
24,873
|
|
|
$
|
84,521
|
|
|
$
|
81,331
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
Net Sales
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
North America
|
24,261
|
|
|
20,301
|
|
|
75,532
|
|
|
68,745
|
|
||||
Europe
|
3,516
|
|
|
4,572
|
|
|
8,989
|
|
|
12,586
|
|
||||
Total
|
$
|
27,777
|
|
|
$
|
24,873
|
|
|
$
|
84,521
|
|
|
$
|
81,331
|
|
|
|
|
||
Contract assets - Beginning balance, October 1, 2019
|
|
$
|
10,349
|
|
Additional revenue recognized over-time
|
|
51,132
|
|
|
Less amounts billed to the customers
|
|
(48,347
|
)
|
|
Contract assets - Ending balance, June 30, 2020
|
|
$
|
13,134
|
|
|
|
|
||
Contract liabilities (included within Accrued liabilities) - Beginning balance, October 1, 2019
|
|
$
|
(382
|
)
|
Payments received in advance of performance obligations
|
|
—
|
|
|
Performance obligations satisfied
|
|
382
|
|
|
Contract liabilities (included within Accrued liabilities) - Ending balance, June 30, 2020
|
|
$
|
—
|
|
10.
|
Commitments and Contingencies
|
Balance sheet (Other receivables):
|
|
|||
|
|
|||
September 30, 2019
|
$
|
3,500
|
|
|
|
Cash proceeds
|
(8,787
|
)
|
|
|
Capital expenditures (equipment)
|
2,683
|
|
|
|
Other expenses
|
1,689
|
|
|
|
Business interruption
|
915
|
|
|
June 30, 2020
|
$
|
—
|
|
|
Nine Months Ended June 30, 2020
|
|||||||
|
Balance without insurance proceeds
|
Insurance recoveries
|
Balance with insurance proceeds
|
|||||
Cost of goods sold
|
$
|
73,374
|
|
(2,603
|
)
|
$
|
70,771
|
|
Gain on insurance proceeds received
|
$
|
—
|
|
(2,683
|
)
|
$
|
(2,683
|
)
|
Income (loss) before income tax (benefit) expense
|
$
|
(1,219
|
)
|
(5,286
|
)
|
$
|
4,067
|
|
|
Three Months Ended June 30, 2020
|
|||||||
|
Balance without insurance proceeds
|
Insurance recoveries
|
Balance with insurance proceeds
|
|||||
Cost of goods sold
|
$
|
23,944
|
|
(316
|
)
|
$
|
23,628
|
|
Gain on insurance proceeds received
|
$
|
—
|
|
(1,683
|
)
|
$
|
(1,683
|
)
|
Income (loss) before income tax (benefit) expense
|
$
|
284
|
|
(1,999
|
)
|
$
|
2,283
|
|
(Dollars in millions)
|
Nine Months Ended June 30,
|
|
Increase/ (Decrease)
|
||||||||
Net Sales
|
2020
|
|
2019
|
|
|||||||
Aerospace components for:
|
|
|
|
|
|
||||||
Fixed wing aircraft
|
$
|
39.1
|
|
|
$
|
39.0
|
|
|
$
|
0.1
|
|
Rotorcraft
|
22.3
|
|
|
17.2
|
|
|
5.1
|
|
|||
Energy components for power generation units
|
9.9
|
|
|
13.3
|
|
|
(3.4
|
)
|
|||
Commercial product and other revenue
|
13.2
|
|
|
11.8
|
|
|
1.4
|
|
|||
Total
|
$
|
84.5
|
|
|
$
|
81.3
|
|
|
$
|
3.2
|
|
|
Weighted Average
Interest Rate Nine Months Ended June 30, |
|
Weighted Average
Outstanding Balance Nine Months Ended June 30, |
||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||
Revolving credit agreement
|
3.2
|
%
|
|
4.1
|
%
|
|
$ 14.8 million
|
|
$ 17.9 million
|
Foreign term debt
|
3.9
|
%
|
|
2.7
|
%
|
|
$ 5.5 million
|
|
$ 7.2 million
|
Other debt
|
0.4
|
%
|
|
—
|
%
|
|
$ 6.1 million
|
|
$ 0.0 million
|
(Dollars in millions)
|
Three Months Ended
June 30, |
|
Increase (Decrease)
|
||||||||
Net Sales
|
2020
|
|
2019
|
|
|||||||
Aerospace components for:
|
|
|
|
|
|
||||||
Fixed wing aircraft
|
$
|
13.7
|
|
|
$
|
12.6
|
|
|
$
|
1.1
|
|
Rotorcraft
|
8.7
|
|
|
5.1
|
|
|
3.6
|
|
|||
Energy components for power generation units
|
3.8
|
|
|
4.9
|
|
|
(1.1
|
)
|
|||
Commercial product and other revenue
|
1.6
|
|
|
2.3
|
|
|
(0.7
|
)
|
|||
Total
|
$
|
27.8
|
|
|
$
|
24.9
|
|
|
$
|
2.9
|
|
|
Weighted Average
Interest Rate Three Months Ended June 30, |
|
Weighted Average
Outstanding Balance Three Months Ended June 30, |
||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||
Revolving credit agreement
|
2.0
|
%
|
|
4.1
|
%
|
|
$ 12.5 million
|
|
$ 12.5 million
|
Foreign term debt
|
3.9
|
%
|
|
2.9
|
%
|
|
$ 5.3 million
|
|
$ 6.7 million
|
Other debt
|
0.9
|
%
|
|
—
|
%
|
|
$ 6.1 million
|
|
$ 0.0 million
|
•
|
Neither EBITDA nor Adjusted EBITDA reflects the interest expense, or the cash requirements necessary to service interest payments on indebtedness;
|
•
|
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor Adjusted EBITDA reflects any cash requirements for such replacements;
|
•
|
The omission of the substantial amortization expense associated with the Company’s intangible assets further limits the usefulness of EBITDA and Adjusted EBITDA; and
|
•
|
Neither EBITDA nor Adjusted EBITDA includes the payment of taxes, which is a necessary element of operations.
|
Dollars in thousands
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income (loss)
|
$
|
2,250
|
|
|
$
|
(7,370
|
)
|
|
$
|
4,168
|
|
|
$
|
(9,911
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization expense
|
1,845
|
|
|
1,896
|
|
|
5,576
|
|
|
5,735
|
|
||||
Interest expense, net
|
183
|
|
|
229
|
|
|
697
|
|
|
835
|
|
||||
Income tax (benefit)
|
33
|
|
|
(336
|
)
|
|
(101
|
)
|
|
(816
|
)
|
||||
EBITDA
|
4,311
|
|
|
(5,581
|
)
|
|
10,340
|
|
|
(4,157
|
)
|
||||
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Foreign currency exchange loss (gain), net (1)
|
12
|
|
|
(3
|
)
|
|
12
|
|
|
(4
|
)
|
||||
Other income, net (2)
|
27
|
|
|
(15
|
)
|
|
(58
|
)
|
|
(50
|
)
|
||||
Loss (gain) on disposal and impairment of assets (3)
|
55
|
|
|
—
|
|
|
98
|
|
|
(282
|
)
|
||||
Gain on insurance proceeds received (4)
|
(1,683
|
)
|
|
(3,304
|
)
|
|
(2,683
|
)
|
|
(4,468
|
)
|
||||
Equity compensation (5)
|
37
|
|
|
(59
|
)
|
|
262
|
|
|
367
|
|
||||
LIFO impact (6)
|
(5
|
)
|
|
154
|
|
|
(16
|
)
|
|
98
|
|
||||
Goodwill impairment (7)
|
—
|
|
|
8,294
|
|
|
—
|
|
|
8,294
|
|
||||
Adjusted EBITDA
|
$
|
2,754
|
|
|
$
|
(514
|
)
|
|
$
|
7,955
|
|
|
$
|
(202
|
)
|
(1)
|
Represents the gain or loss from changes in the exchange rates between the functional currency and the foreign currency in which the transaction is denominated.
|
(2)
|
Represents miscellaneous non-operating income or expense, such as pension costs or grant income.
|
(3)
|
Represents the difference between the proceeds from the sale of operating equipment and the carrying values shown on the Company’s books or asset impairment of long-lived assets.
|
(4)
|
Represents the difference between the insurance proceeds received for the damaged property and the carrying values shown on the Company's books for the assets that were damaged in the fire at the Orange location.
|
(5)
|
Represents the equity-based compensation expense recognized by the Company under its 2016 Long-Term Incentive Plan (as the amendment and restatement of, and successor to, the 2007 Long-Term Incentive Plan) due to granting of awards, awards not vesting and/or forfeitures.
|
(6)
|
Represents the change in the reserve for inventories for which cost is determined using the last-in, first-out (“LIFO”) method.
|
(7)
|
Represents non-cash charge of goodwill impairment experienced at its reporting unit level.
|
•
|
Key controls around segregation of duties and periodic access reviews within IT general and application controls for the Cleveland operation were not designed or operating effectively.
|
•
|
Implement robust security and access reviews at a level of precision necessary to ensure they are timely and appropriate. The Company is making progress by utilizing external assistance. Using a risk-based approach, management will implement detective and monitoring business process controls to further mitigate IT risks over financial reporting.
|
Exhibit
No.
|
|
Description
|
2.1
|
|
|
2.2
|
|
|
3.1
|
|
|
3.2
|
|
|
9.1
|
|
|
9.2
|
|
|
9.3
|
|
|
9.4
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
|
10.6
|
|
|
10.7
|
|
|
10.8
|
|
10.9
|
|
|
10.10
|
|
|
10.11
|
|
|
10.12
|
|
|
10.13
|
|
|
10.18
|
|
|
10.19
|
|
|
10.20
|
|
|
10.21
|
|
|
10.22
|
|
|
10.23
|
|
|
10.24
|
|
|
10.25
|
|
|
10.26
|
|
|
14.1
|
|
|
*31.1
|
|
|
*31.2
|
|
|
*32.1
|
|
|
*32.2
|
|
|
*101
|
|
The following financial information from SIFCO Industries, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 filed with the SEC on August 6, 2020, formatted in XBRL includes: (i) Consolidated Condensed Statements of Operations for the fiscal periods ended June 30, 2020 and 2019, (ii) Consolidated Condensed Statements of Comprehensive Income for the fiscal periods ended June 30, 2020 and 2019, (iii) Consolidated Condensed Balance Sheets at June 30, 2020 and September 30, 2019, (iv) Consolidated Condensed Statements of Cash Flow for the fiscal periods ended June 30, 2020 and 2019, (iv) Consolidated Condensed Statements of Shareholders' Equity for the periods June 30, 2020 and 2019, and (v) the Notes to the Consolidated Condensed Financial Statements.
|
|
|
SIFCO Industries, Inc.
|
|
|
(Registrant)
|
|
|
|
Date: August 6, 2020
|
|
/s/ Peter W. Knapper
|
|
|
Peter W. Knapper
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
Date: August 6, 2020
|
|
/s/ Thomas R. Kubera
|
|
|
Thomas R. Kubera
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
1 Year Sifco Industries Chart |
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