Adoption of Accounting Standards Codification 606 (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of New Accounting Pronouncements

The following tables summarize the impact of adopting ASC 606 on our unaudited condensed consolidated financial statements for the three months ended March 31, 2018 (in thousands, except per share data):

	March 31, 2018
Unaudited Condensed Consolidated Balance Sheets	As Reported			Effect of Adoption			Balances Without Adoption of ASC 606
Assets
Current Assets
Cash and cash equivalents	$	1,797		$	—		$	1,797
Accounts receivable, net of allowance for doubtful accounts of $725 and $868 at March 31, 2018 and December 31, 2017, respectively	64,915			—			64,915
Contract assets	78,163			(78,163		)	—
Inventories	85,932			51,918			137,850
Production cost of contracts	11,181			—			11,181
Other current assets	12,503			(472		)	12,031
Total Current Assets	254,491			(26,717		)	227,774
Property and equipment, net of accumulated depreciation of $147,086 and $143,216 at March 31, 2018 and December 31, 2017, respectively	110,031			—			110,031
Goodwill	117,435			—			117,435
Intangibles, net	112,154			—			112,154
Non-current deferred income taxes	147			114			261
Other assets	3,311			—			3,311
Total Assets	$	597,569		$	(26,603	)	$	570,966
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	65,042		$	—		$	65,042
Contract liabilities	15,723			(15,723		)	—
Accrued liabilities	22,469			2,507			24,976
Total Current Liabilities	103,234			(13,216		)	90,018
Long-term debt	209,710			—			209,710
Non-current deferred income taxes	15,775			(3,116		)	12,659
Other long-term liabilities	21,543			—			21,543
Total Liabilities	350,262			(16,332		)	333,930
Commitments and contingencies (Notes 11, 13)
Shareholders’ Equity
Common stock - $0.01 par value; 35,000,000 shares authorized; 11,380,982 and 11,332,841 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively	114			—			114
Additional paid-in capital	80,523			—			80,523
Retained earnings	173,652			(10,271		)	163,381
Accumulated other comprehensive loss	(6,982		)	—			(6,982		)
Total Shareholders’ Equity	247,307			(10,271		)	237,036
Total Liabilities and Shareholders’ Equity	$	597,569		$	(26,603	)	$	570,966

	Three Months Ended March 31, 2018
Unaudited Condensed Consolidated Statements of Operations	As Reported			Effect of Adoption			Balances Without Adoption of ASC 606
Net Revenues	$	150,455		$	(11,997	)	$	138,458
Cost of Sales	123,700			(10,203		)	113,497
Gross Profit	26,755			(1,794		)	24,961
Selling, General and Administrative Expenses	19,326			—			19,326
Restructuring Charges	2,173			—			2,173
Operating Income	5,256			(1,794		)	3,462
Interest Expense	(2,899		)	—			(2,899		)
Income Before Taxes	2,357			(1,794		)	563
Income Tax Benefit	(243		)	(76		)	(319		)
Net Income	$	2,600		$	(1,718	)	$	882
Earnings Per Share
Basic earnings per share	$	0.23
Diluted earnings per share	$	0.22
Weighted-Average Number of Common Shares Outstanding
Basic	11,346
Diluted	11,613

	Three Months Ended March 31, 2018
Unaudited Condensed Consolidated Statements of Comprehensive Income	As Reported		Effect of Adoption			Balances Without Adoption of ASC 606
Net Income	$	2,600	$	(1,718	)	$	882
Other Comprehensive Income, Net of Tax:
Amortization of actuarial losses and prior service costs, net of tax benefit of $45 and $63 for the three months ended March 31, 2018 and April 1, 2017, respectively	141		—			141
Change in unrealized gains and losses on cash flow hedges, net of tax of $61 and $72 for the three months ended March 31, 2018 and April 1, 2017, respectively	194		—			194
Other Comprehensive Income	335		—			335
Comprehensive Income	$	2,935	$	(1,718	)	$	1,217

	Three Months Ended March 31, 2018
Unaudited Condensed Consolidated Statements of Cash Flows	As Reported			Effect of Adoption			Balances Without Adoption of ASC 606
Cash Flows from Operating Activities
Net Income	$	2,600		$	(1,718	)	$	882
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation and amortization	5,981			—			5,981
Property and equipment impairment due to restructuring	1,077			—			1,077
Stock-based compensation expense	1,090			—			1,090
Deferred income taxes	(206		)	(3,116		)	(3,322		)
Recovery of doubtful accounts	(143		)	—			(143		)
Other	8,810			(8,975		)	(165		)
Changes in Assets and Liabilities:
Accounts receivable	9,292			—			9,292
Contract assets	(78,163		)	78,163			—
Inventories	36,229			(51,918		)	(15,689		)
Production cost of contracts	(55		)	—			(55		)
Other assets	412			(1,066		)	(654		)
Accounts payable	12,213			—			12,213
Contract liabilities	15,723			(15,723		)	—
Accrued and other liabilities	(4,524		)	4,353			(171		)
Net Cash Provided by Operating Activities	10,336			—			10,336
Cash Flows from Investing Activities
Purchases of property and equipment	(3,341		)	—			(3,341		)
Proceeds from sale of assets	41			—			41
Net Cash Used in Investing Activities	(3,300		)	—			(3,300		)
Cash Flows from Financing Activities
Borrowings from senior secured revolving credit facility	76,700			—			76,700
Repayments of senior secured revolving credit facility	(83,300		)	—			(83,300		)
Net cash paid upon issuance of common stock under stock plans	(789		)	—			(789		)
Net Cash Used in Financing Activities	(7,389		)	—			(7,389		)
Net Decrease in Cash and Cash Equivalents	(353		)	—			(353		)
Cash and Cash Equivalents at Beginning of Period	2,150			—			2,150
Cash and Cash Equivalents at End of Period	$	1,797		$	—		$	1,797

The net impact to the various captions on our January 1, 2018 opening unaudited condensed consolidated balance sheets was as follows:

	(In thousands)
	December 31, 2017					January 1, 2018
Unaudited Condensed Consolidated Balance Sheets	Balances Without Adoption of ASC 606		Effect of Adoption			Balances With Adoption of ASC 606
Assets
Contract assets	$	—	$	68,739		$	68,739
Inventories	122,161		(39,002		)	83,159
Non-current deferred income taxes	261		(95		)	166
Liabilities
Contract liabilities	—		24,460			24,460
Accrued liabilities	28,329		(6,091		)	22,238
Non-current deferred income taxes	15,981		2,608			18,589
Shareholders’ Equity
Retained earnings	161,364		8,665			170,029