x
|
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
|
Delaware
|
51-0347683
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Title of each class
|
Trading symbol(s)
|
Name of exchange on which registered
|
Common Stock, $0.01 par value
|
SHLO
|
The NASDAQ Global Select Market
|
Large Accelerated Filer
|
¨
|
Accelerated Filer
|
x
|
Non-accelerated Filer
|
¨
|
Smaller Reporting Company
|
x
|
Emerging Growth Company
|
¨
|
|
|
|
Page
|
|
|||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|||
|
|||
|
|||
|
Item 4. Controls and Procedures
|
||
|
|||
|
Item 1. Legal Proceedings
|
||
|
Item 1A. Risk Factors
|
||
|
Item 6. Exhibits
|
Item 1.
|
Condensed Consolidated Financial Statements
|
|
July 31,
2019 |
|
October 31,
2018 |
||||
|
|
||||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
11,936
|
|
|
$
|
16,843
|
|
Accounts receivable, net
|
180,502
|
|
|
209,733
|
|
||
Related party accounts receivable
|
466
|
|
|
996
|
|
||
Prepaid income taxes
|
6,341
|
|
|
1,391
|
|
||
Inventories, net
|
67,615
|
|
|
71,412
|
|
||
Prepaid expenses
|
11,854
|
|
|
10,478
|
|
||
Other current assets
|
10,318
|
|
|
22,124
|
|
||
Total current assets
|
289,032
|
|
|
332,977
|
|
||
Property, plant and equipment, net
|
333,840
|
|
|
316,176
|
|
||
Goodwill
|
27,384
|
|
|
27,376
|
|
||
Intangible assets, net
|
13,489
|
|
|
14,939
|
|
||
Deferred income taxes
|
2,811
|
|
|
5,665
|
|
||
Other assets
|
7,732
|
|
|
12,542
|
|
||
Total assets
|
$
|
674,288
|
|
|
$
|
709,675
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current debt
|
$
|
350
|
|
|
$
|
1,327
|
|
Accounts payable
|
170,175
|
|
|
177,400
|
|
||
Other accrued expenses
|
45,411
|
|
|
63,031
|
|
||
Accrued income taxes
|
27
|
|
|
1,874
|
|
||
Total current liabilities
|
215,963
|
|
|
243,632
|
|
||
Long-term debt
|
248,393
|
|
|
245,351
|
|
||
Long-term benefit liabilities
|
14,579
|
|
|
15,553
|
|
||
Deferred income taxes
|
792
|
|
|
2,894
|
|
||
Other liabilities
|
3,440
|
|
|
2,723
|
|
||
Total liabilities
|
483,167
|
|
|
510,153
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.01 per share; 5,000,000 shares authorized; no shares issued and outstanding at July 31, 2019 and October 31, 2018, respectively
|
—
|
|
|
—
|
|
||
Common stock, par value $0.01 per share; 75,000,000 and 50,000,000 shares authorized at July 31, 2019 and October 31, 2018, respectively; 23,799,035 and 23,417,107 shares issued and outstanding at July 31, 2019 and October 31, 2018, respectively
|
238
|
|
|
234
|
|
||
Paid-in capital
|
115,977
|
|
|
114,405
|
|
||
Retained earnings
|
129,518
|
|
|
135,813
|
|
||
Accumulated other comprehensive loss, net
|
(54,612
|
)
|
|
(50,930
|
)
|
||
Total stockholders’ equity
|
191,121
|
|
|
199,522
|
|
||
Total liabilities and stockholders’ equity
|
$
|
674,288
|
|
|
$
|
709,675
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenues
|
$
|
263,445
|
|
|
$
|
294,883
|
|
|
$
|
795,748
|
|
|
$
|
839,889
|
|
Cost of sales
|
239,857
|
|
|
262,003
|
|
|
729,790
|
|
|
747,616
|
|
||||
Gross profit
|
23,588
|
|
|
32,880
|
|
|
65,958
|
|
|
92,273
|
|
||||
Selling, general & administrative expenses
|
18,105
|
|
|
22,773
|
|
|
51,069
|
|
|
66,159
|
|
||||
Amortization of intangible assets
|
518
|
|
|
607
|
|
|
1,558
|
|
|
1,767
|
|
||||
Restructuring
|
3,905
|
|
|
1,965
|
|
|
11,371
|
|
|
4,962
|
|
||||
Operating income
|
1,060
|
|
|
7,535
|
|
|
1,960
|
|
|
19,385
|
|
||||
Interest expense
|
4,633
|
|
|
3,209
|
|
|
11,836
|
|
|
8,194
|
|
||||
Interest income
|
(4
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
(9
|
)
|
||||
Other (income) expense, net
|
113
|
|
|
289
|
|
|
(959
|
)
|
|
1,119
|
|
||||
Income (loss) before income taxes
|
(3,682
|
)
|
|
4,038
|
|
|
(8,907
|
)
|
|
10,081
|
|
||||
Benefit for income taxes
|
(973
|
)
|
|
(7,014
|
)
|
|
(2,612
|
)
|
|
(9,854
|
)
|
||||
Net income (loss)
|
$
|
(2,709
|
)
|
|
$
|
11,052
|
|
|
$
|
(6,295
|
)
|
|
$
|
19,935
|
|
Income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share
|
$
|
(0.11
|
)
|
|
$
|
0.47
|
|
|
$
|
(0.27
|
)
|
|
$
|
0.86
|
|
Basic weighted average number of common shares
|
23,557
|
|
|
23,278
|
|
|
23,486
|
|
|
23,202
|
|
||||
Diluted earnings (loss) per share
|
$
|
(0.11
|
)
|
|
$
|
0.47
|
|
|
$
|
(0.27
|
)
|
|
$
|
0.85
|
|
Diluted weighted average number of common shares
|
23,557
|
|
|
23,453
|
|
|
23,486
|
|
|
23,341
|
|
|
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income (loss)
|
$
|
(2,709
|
)
|
|
$
|
11,052
|
|
|
$
|
(6,295
|
)
|
|
$
|
19,935
|
|
|||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|||||||||||
|
Defined benefit pension plans & other post-retirement benefits
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Amortization of net actuarial loss
|
289
|
|
|
328
|
|
|
865
|
|
|
984
|
|
||||
|
|
|
Cumulative effect of adoption of ASU 2018-02 (1)
|
—
|
|
|
(6,138
|
)
|
|
—
|
|
|
(6,138
|
)
|
||||
|
|
|
Income tax provision
|
(66
|
)
|
|
(76
|
)
|
|
(198
|
)
|
|
(258
|
)
|
||||
|
|
Total defined benefit pension plans & other post retirement benefits, net of tax
|
223
|
|
|
(5,886
|
)
|
|
667
|
|
|
(5,412
|
)
|
|||||
|
Marketable securities
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Unrealized loss on marketable securities
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(151
|
)
|
||||
|
|
|
Cumulative effect of adoption of ASU 2018-02 (1)
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
||||
|
|
|
Income tax benefit
|
—
|
|
|
4
|
|
|
—
|
|
|
38
|
|
||||
|
|
|
Realized income
|
—
|
|
|
122
|
|
|
18
|
|
|
122
|
|
||||
|
|
Total marketable securities, net of tax
|
—
|
|
|
97
|
|
|
18
|
|
|
2
|
|
|||||
|
Derivatives and hedging
|
|
|
|
|
|
||||||||||||
|
|
|
Unrealized (loss) gain on interest rate swap agreements
|
(301
|
)
|
|
171
|
|
|
(1,030
|
)
|
|
1,331
|
|
||||
|
|
|
Cumulative effect of adoption of ASU 2018-02 (1)
|
—
|
|
|
(213
|
)
|
|
—
|
|
|
(213
|
)
|
||||
|
|
|
Income tax benefit (provision)
|
58
|
|
|
(76
|
)
|
|
195
|
|
|
(533
|
)
|
||||
|
|
|
Reclassification adjustments for settlement of derivatives included in net income (loss)
|
51
|
|
|
153
|
|
|
181
|
|
|
648
|
|
||||
|
|
Change in fair value of derivative instruments, net of tax
|
(192
|
)
|
|
35
|
|
|
(654
|
)
|
|
1,233
|
|
|||||
|
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Foreign currency translation loss
|
(1,940
|
)
|
|
(2,834
|
)
|
|
(3,713
|
)
|
|
(2,953
|
)
|
||||
|
|
Unrealized loss on foreign currency translation
|
(1,940
|
)
|
|
(2,834
|
)
|
|
(3,713
|
)
|
|
(2,953
|
)
|
|||||
Comprehensive income (loss), net
|
$
|
(4,618
|
)
|
|
$
|
2,464
|
|
|
$
|
(9,977
|
)
|
|
$
|
12,805
|
|
|
Nine Months Ended July 31,
|
||||||
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income (loss)
|
$
|
(6,295
|
)
|
|
$
|
19,935
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
35,010
|
|
|
33,775
|
|
||
Restructuring
|
1,610
|
|
|
672
|
|
||
Amortization of deferred financing costs
|
1,033
|
|
|
935
|
|
||
Deferred income taxes
|
232
|
|
|
(2,251
|
)
|
||
Stock-based compensation expense
|
1,576
|
|
|
1,557
|
|
||
(Gain) loss on sale of assets
|
(3,562
|
)
|
|
2,300
|
|
||
Loss on marketable securities
|
29
|
|
|
154
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
30,213
|
|
|
18,599
|
|
||
Inventories, net
|
3,900
|
|
|
(2,656
|
)
|
||
Prepaids and other assets
|
(1,564
|
)
|
|
(4,884
|
)
|
||
Payables and other liabilities
|
(30,965
|
)
|
|
(6,989
|
)
|
||
Prepaid and accrued income taxes
|
(6,863
|
)
|
|
(10,266
|
)
|
||
Net cash provided by operating activities
|
24,354
|
|
|
50,881
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Capital expenditures
|
(48,643
|
)
|
|
(38,668
|
)
|
||
Proceeds from sale of marketable securities
|
14
|
|
|
—
|
|
||
Acquisitions, net of cash required
|
—
|
|
|
(62,481
|
)
|
||
Derivative settlements
|
5,855
|
|
|
—
|
|
||
Proceeds from sale of assets
|
12,339
|
|
|
2,696
|
|
||
Net cash used in investing activities
|
(30,435
|
)
|
|
(98,453
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Payment of capital leases
|
(495
|
)
|
|
(667
|
)
|
||
Proceeds from long-term borrowings
|
223,400
|
|
|
218,300
|
|
||
Repayments of long-term borrowings
|
(220,000
|
)
|
|
(161,793
|
)
|
||
Payment of deferred financing costs
|
(1,948
|
)
|
|
(105
|
)
|
||
Proceeds from exercise of stock options
|
—
|
|
|
41
|
|
||
Net cash provided by financing activities
|
957
|
|
|
55,776
|
|
||
Effect of foreign currency exchange rate fluctuations on cash
|
217
|
|
|
336
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(4,907
|
)
|
|
8,540
|
|
||
Cash and cash equivalents at beginning of period
|
16,843
|
|
|
8,736
|
|
||
Cash and cash equivalents at end of period
|
$
|
11,936
|
|
|
$
|
17,276
|
|
|
Common Stock (.01 Par Value)
|
|
Paid-in-Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
Total Stockholders' Equity
|
||||||||||
April 30, 2018
|
$
|
234
|
|
|
$
|
113,424
|
|
|
$
|
126,859
|
|
|
$
|
(40,779
|
)
|
|
$
|
199,738
|
|
Net income
|
—
|
|
|
—
|
|
|
11,052
|
|
|
—
|
|
|
11,052
|
|
|||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,230
|
)
|
|
(2,230
|
)
|
|||||
Reclassification of stranded tax effects (1)
|
—
|
|
|
—
|
|
|
6,358
|
|
|
(6,358
|
)
|
|
—
|
|
|||||
Restricted stock and exercise of stock options
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Stock-based compensation cost
|
—
|
|
|
515
|
|
|
—
|
|
|
—
|
|
|
515
|
|
|||||
July 31, 2018
|
$
|
234
|
|
|
$
|
113,946
|
|
|
$
|
144,269
|
|
|
$
|
(49,367
|
)
|
|
$
|
209,082
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
April 30, 2019
|
$
|
238
|
|
|
$
|
115,391
|
|
|
$
|
132,227
|
|
|
$
|
(52,703
|
)
|
|
$
|
195,153
|
|
Net loss
|
—
|
|
|
—
|
|
|
(2,709
|
)
|
|
—
|
|
|
(2,709
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,909
|
)
|
|
(1,909
|
)
|
|||||
Stock-based compensation cost
|
—
|
|
|
586
|
|
|
—
|
|
|
—
|
|
|
586
|
|
|||||
July 31, 2019
|
$
|
238
|
|
|
$
|
115,977
|
|
|
$
|
129,518
|
|
|
$
|
(54,612
|
)
|
|
$
|
191,121
|
|
|
Common Stock (.01 Par Value)
|
|
Paid-in-Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
Total Stockholders' Equity
|
||||||||||
October 31, 2017
|
$
|
231
|
|
|
$
|
112,351
|
|
|
$
|
117,976
|
|
|
$
|
(42,237
|
)
|
|
$
|
188,321
|
|
Net income
|
—
|
|
|
—
|
|
|
19,935
|
|
|
—
|
|
|
19,935
|
|
|||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(772
|
)
|
|
(772
|
)
|
|||||
Reclassification of stranded tax effects (1)
|
—
|
|
|
—
|
|
|
6,358
|
|
|
(6,358
|
)
|
|
—
|
|
|||||
Restricted stock and exercise of stock options
|
3
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|||||
Stock-based compensation cost
|
—
|
|
|
1,557
|
|
|
—
|
|
|
—
|
|
|
1,557
|
|
|||||
July 31, 2018
|
$
|
234
|
|
|
$
|
113,946
|
|
|
$
|
144,269
|
|
|
$
|
(49,367
|
)
|
|
$
|
209,082
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
October 31, 2018
|
$
|
234
|
|
|
$
|
114,405
|
|
|
$
|
135,813
|
|
|
$
|
(50,930
|
)
|
|
$
|
199,522
|
|
Net loss
|
—
|
|
|
—
|
|
|
(6,295
|
)
|
|
—
|
|
|
(6,295
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,682
|
)
|
|
(3,682
|
)
|
|||||
Restricted stock and exercise of stock options
|
4
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Stock-based compensation cost
|
—
|
|
|
1,576
|
|
|
—
|
|
|
—
|
|
|
1,576
|
|
|||||
July 31, 2019
|
$
|
238
|
|
|
$
|
115,977
|
|
|
$
|
129,518
|
|
|
$
|
(54,612
|
)
|
|
$
|
191,121
|
|
Standard
|
Description
|
Effective Date
|
Effect on our financial statements and other significant matters
|
ASU 2016-13 Measurement of Credit Losses on Financial Instruments
|
The amendments change the impairment model for financial assets measured at amortized cost and available for sale equity securities. This new model will apply to instruments such as loans, held-to-maturity debt securities, loan commitments (including lines of credit), financial guarantees accounted for under ASC 460, net investments in leases, reinsurance and trade receivables. This model will result in an earlier recognition of allowances for losses through the establishment of an allowance account. The estimate of expected credit losses should consider historical and current information, and the reasonable and supportable forecasts of future events and circumstances, as well as estimates of prepayments.
|
November 1, 2020 with early adoption permitted.
|
We are in the process of evaluating the impact of adoption of this standard on our financial statements and disclosures.
|
ASU 2018-15 Goodwill and Other-Internal-Use Software
|
The amendments apply to the accounting for implementation, setup and other upfront costs (collectively referred to as implementation costs) for entities that are a customer in a hosting arrangement and align the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments also require customers to expense capitalized implementation costs over the term of the hosting arrangement and in the same line on the income statement as the fees associated with the hosting service and payments for the capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting service.
|
November 1, 2020 with early adoption permitted.
|
We are in the process of evaluating the impact of adoption of this standard on our financial statements and disclosures.
|
Standard
|
Description
|
Effective Date
|
Effect on our financial statements and other significant matters
|
ASU 2016-02 Leases
|
This amendment requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers. The standard requires a modified retrospective transition for capital and operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial adoption. In January 2018, the FASB issued an amendment to ASC Topic 842 which permits companies to elect an optional transition practical expedient to not evaluate existing land easements under the new standard if the land easements were not previously accounted for under existing lease guidance. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 which clarifies certain areas within ASU 2016-02. ASU 2018-11 Targeted Improvements to Topic 842, Leases. This amendment provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.
|
November 1, 2019 with early adoption permitted.
|
We are in the process of evaluating the impact of adoption of this standard on our financial statements and disclosures. Our continued efforts include assessing the available practical expedients, calculating the lease asset and liability balances associated with individual contractual arrangements and assessing disclosure requirements. In addition, we continue to monitor FASB amendments to ASC Topic 842. While we continue to evaluate the effect of the standard, we anticipate that the adoption will result in a material increase in assets and liabilities on our consolidated balance sheet and will not have a material impact on our consolidated income statement or statement of cash flows.
|
Standard
|
Description
|
Adoption Date
|
Effect on our financial statements and other significant matters
|
ASU 2017-09 Compensation - Stock Compensation (Topic 718)
|
This amendment clarifies when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The amendment should be adopted on a prospective basis.
|
November 1, 2018
|
The adoption of this framework did not have a material impact on Shiloh's financial position, results of operations or financial statement disclosures. Shiloh's awards are rarely modified after grant.
|
Standard
|
Description
|
Adoption Date
|
Effect on our financial statements and other significant matters
|
ASU 2014-09 Revenue from Contracts with Customers
|
The amendments require companies to recognize revenue when there is a transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The amendments should be applied on either a full or modified retrospective basis, which clarifies existing accounting literature relating to how and when a company recognizes revenue. The Financial Accounting Standards Board ("FASB"), through the issuance of Accounting Standards Updated ("ASU") No. 2015-14, "Revenue from Contracts with Customers," approved a one year delay of the effective date and permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. During fiscal 2016, the FASB issued ASUs 2016-10, 2016-11 and 2016-12. Finally, ASU 2016-20 makes minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities.
|
November 1, 2018
|
Refer to Note 3.
|
ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities
|
This amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Most prominent among the amendments is the requirement for changes in the fair value of the Company's equity investments, with certain exceptions, to be recognized through net income rather than other comprehensive income ("OCI"). The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet in year of adoption.
|
November 1, 2018
|
The adoption of this framework did not have a material impact on Shiloh's financial position, results of operations or financial statement disclosures.
|
Standard
|
Description
|
Adoption Date
|
Effect on our financial statements and other significant matters
|
ASU 2018-09 Codification Improvements
|
These amendments provide clarifications and corrections to certain ASC subtopics including the following: Income Statement - Reporting Comprehensive Income – Overall (Topic 220-10), Debt - Modifications and Extinguishments (Topic 470-50), Distinguishing Liabilities from Equity – Overall (Topic 480-10), Compensation - Stock Compensation - Income Taxes (Topic 718-740), Business Combinations - Income Taxes (Topic 805-740), Derivatives and Hedging – Overall (Topic 815-10) and Fair Value Measurement – Overall (Topic 820-10).
|
The majority of the amendments will be effective November 1, 2019 while others were effective upon the issuance of the ASU.
|
Adoption of the clarifications and corrections in this ASU did not have a material impact on Shiloh's financial position, results of operations or financial statement disclosures.
|
|
|
Net Revenues
|
||||||||||||||
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
Region:
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
North America
|
|
$
|
203,920
|
|
|
$
|
223,074
|
|
|
$
|
606,872
|
|
|
$
|
648,705
|
|
Europe & Asia
|
|
65,214
|
|
|
77,438
|
|
|
205,760
|
|
|
206,108
|
|
||||
Eliminations
|
|
(5,689
|
)
|
|
(5,629
|
)
|
|
(16,884
|
)
|
|
(14,924
|
)
|
||||
Total Company
|
|
$
|
263,445
|
|
|
$
|
294,883
|
|
|
$
|
795,748
|
|
|
$
|
839,889
|
|
|
July 31, 2019
|
|
October 31, 2018
|
||||
Raw materials
|
$
|
28,978
|
|
|
$
|
28,457
|
|
Work in process
|
23,319
|
|
|
24,435
|
|
||
Finished goods
|
19,785
|
|
|
21,637
|
|
||
Reserves
|
$
|
(4,467
|
)
|
|
$
|
(3,117
|
)
|
Total inventories, net
|
$
|
67,615
|
|
|
$
|
71,412
|
|
Balance October 31, 2018
|
|
$
|
27,376
|
|
|
|
Foreign currency translation
|
|
8
|
|
|
Balance July 31, 2019
|
|
$
|
27,384
|
|
|
|
Customer Relationships
|
|
Developed Technology
|
|
Non-Compete
|
|
Trade Name
|
|
Trademark
|
|
Total
|
||||||||||||
Balance October 31, 2018
|
$
|
10,311
|
|
|
$
|
3,404
|
|
|
$
|
15
|
|
|
$
|
1,131
|
|
|
$
|
78
|
|
|
$
|
14,939
|
|
|
|
Amortization expense
|
(998
|
)
|
|
(296
|
)
|
|
(12
|
)
|
|
(93
|
)
|
|
(12
|
)
|
|
(1,411
|
)
|
||||||
|
Foreign currency translation
|
(3
|
)
|
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
||||||
Balance July 31, 2019
|
$
|
9,310
|
|
|
$
|
3,072
|
|
|
$
|
3
|
|
|
$
|
1,038
|
|
|
$
|
66
|
|
|
$
|
13,489
|
|
|
|
July 31, 2019
|
||||||||||||
|
|
Weighted Average Useful Life (years)
|
|
Gross Carrying Value Net of Foreign Currency
|
|
Accumulated Amortization
|
|
Net
|
||||||
|
Customer relationships
|
7.2
|
|
17,561
|
|
|
$
|
(8,251
|
)
|
|
$
|
9,310
|
|
|
|
Developed technology
|
9.1
|
|
7,129
|
|
|
(4,057
|
)
|
|
3,072
|
|
|||
|
Non-compete
|
0.2
|
|
824
|
|
|
(821
|
)
|
|
3
|
|
|||
|
Trade Name
|
8.4
|
|
1,875
|
|
|
(837
|
)
|
|
1,038
|
|
|||
|
Trademark
|
4.0
|
|
166
|
|
|
(100
|
)
|
|
66
|
|
|||
|
|
|
|
$
|
27,555
|
|
|
$
|
(14,066
|
)
|
|
$
|
13,489
|
|
|
July 31,
2019 |
|
October 31, 2018
|
||||
Credit Agreement—interest rate of 5.27% at July 31, 2019 and 4.59% at October 31, 2018
|
$
|
246,700
|
|
|
$
|
243,300
|
|
Capital lease obligations
|
2,043
|
|
|
2,640
|
|
||
Insurance broker financing agreement
|
—
|
|
|
738
|
|
||
Total debt
|
248,743
|
|
|
246,678
|
|
||
Less: Current debt
|
350
|
|
|
1,327
|
|
||
Total long-term debt
|
$
|
248,393
|
|
|
$
|
245,351
|
|
Twelve Months Ending July 31,
|
|
Credit Agreement
|
|
Capital Lease Obligations
|
|
Total
|
||||||
2020
|
|
$
|
—
|
|
|
$
|
350
|
|
|
$
|
350
|
|
2021
|
|
—
|
|
|
1,693
|
|
|
1,693
|
|
|||
2022
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
2023
|
|
246,700
|
|
|
—
|
|
|
246,700
|
|
|||
2024
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
246,700
|
|
|
$
|
2,043
|
|
|
$
|
248,743
|
|
|
Pension Benefits
|
|
Other Post-Retirement
Benefits
|
||||||||||||
|
Three Months Ended July 31,
|
|
Three Months Ended July 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest cost
|
$
|
843
|
|
|
$
|
791
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Expected return on plan assets
|
(836
|
)
|
|
(839
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of net actuarial loss
|
288
|
|
|
328
|
|
|
1
|
|
|
1
|
|
||||
Net periodic cost
|
$
|
295
|
|
|
$
|
280
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
Pension Benefits
|
|
Other Post-Retirement
Benefits
|
||||||||||||
|
Nine Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest cost
|
$
|
2,525
|
|
|
$
|
2,375
|
|
|
$
|
9
|
|
|
$
|
8
|
|
Expected return on plan assets
|
(2,506
|
)
|
|
(2,519
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of net actuarial loss
|
861
|
|
|
984
|
|
|
4
|
|
|
5
|
|
||||
Net periodic cost
|
$
|
880
|
|
|
$
|
840
|
|
|
$
|
13
|
|
|
$
|
13
|
|
|
|
|
Pension and Post Retirement Plan Liability (1)
|
|
Marketable Securities Adjustment (1)
|
|
Interest Rate Swap Adjustment (2)
|
|
Foreign Currency Translation Adjustment (3)
|
|
Accumulated Other Comprehensive Loss
|
||||||||||||
Balance at April 31, 2018
|
|
$
|
(27,373
|
)
|
|
$
|
(97
|
)
|
|
$
|
(121
|
)
|
|
$
|
(13,188
|
)
|
|
$
|
(40,779
|
)
|
|||
|
Other comprehensive income (loss), net of tax
|
|
—
|
|
|
(18
|
)
|
|
95
|
|
|
(2,834
|
)
|
|
(2,757
|
)
|
|||||||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
252
|
|
|
122
|
|
|
153
|
|
|
—
|
|
|
527
|
|
|||||||
|
Net current-period other comprehensive income (loss)
|
|
252
|
|
|
104
|
|
|
248
|
|
|
(2,834
|
)
|
|
(2,230
|
)
|
|||||||
|
Reclassification to retained earnings (4)
|
|
(6,138
|
)
|
|
(7
|
)
|
|
(213
|
)
|
|
—
|
|
|
(6,358
|
)
|
|||||||
Balance at July 31, 2018
|
|
$
|
(33,259
|
)
|
|
$
|
—
|
|
—
|
|
$
|
(86
|
)
|
—
|
|
$
|
(16,022
|
)
|
|
$
|
(49,367
|
)
|
|
|
|
Pension and Post Retirement Plan Liability (1)
|
|
Marketable Securities Adjustment (1)
|
|
Interest Rate Swap Adjustment (2)
|
|
Foreign Currency Translation Adjustment (3)
|
|
Accumulated Other Comprehensive Loss
|
||||||||||
Balance at April 30, 2019
|
|
$
|
(28,693
|
)
|
|
$
|
—
|
|
|
$
|
(358
|
)
|
|
$
|
(23,652
|
)
|
|
$
|
(52,703
|
)
|
|
|
Other comprehensive income (loss), net of tax
|
|
—
|
|
|
—
|
|
|
(243
|
)
|
|
(1,940
|
)
|
|
(2,183
|
)
|
|||||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
223
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
274
|
|
|||||
|
Net current-period other comprehensive income (loss)
|
|
223
|
|
|
—
|
|
|
(192
|
)
|
|
(1,940
|
)
|
|
(1,909
|
)
|
|||||
Balance at July 31, 2019
|
|
$
|
(28,470
|
)
|
|
$
|
—
|
|
|
$
|
(550
|
)
|
|
$
|
(25,592
|
)
|
|
$
|
(54,612
|
)
|
|
|
|
Pension and Post Retirement Plan Liability (1)
|
|
Marketable Securities Adjustment (1)
|
|
Interest Rate Swap Adjustment (2)
|
|
Foreign Currency Translation Adjustment (3)
|
|
Accumulated Other Comprehensive Loss
|
||||||||||
Balance at October 31, 2017
|
|
$
|
(27,847
|
)
|
|
$
|
(2
|
)
|
|
$
|
(1,319
|
)
|
|
$
|
(13,069
|
)
|
|
$
|
(42,237
|
)
|
|
|
Other comprehensive income (loss), net of tax
|
|
—
|
|
|
(113
|
)
|
|
798
|
|
|
(2,953
|
)
|
|
(2,268
|
)
|
|||||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
726
|
|
|
122
|
|
|
648
|
|
|
—
|
|
|
1,496
|
|
|||||
|
Net current-period other comprehensive income (loss)
|
|
726
|
|
|
9
|
|
|
1,446
|
|
|
(2,953
|
)
|
|
(772
|
)
|
|||||
|
Reclassification to retained earnings (4)
|
|
(6,138
|
)
|
|
(7
|
)
|
|
(213
|
)
|
|
—
|
|
|
(6,358
|
)
|
|||||
Balance at July 31, 2018
|
|
$
|
(33,259
|
)
|
|
$
|
—
|
|
|
$
|
(86
|
)
|
|
$
|
(16,022
|
)
|
|
$
|
(49,367
|
)
|
|
|
|
Pension and Post Retirement Plan Liability (1)
|
|
Marketable Securities Adjustment (1)
|
|
Interest Rate Swap Adjustment (2)
|
|
Foreign Currency Translation Adjustment (3)
|
|
Accumulated Other Comprehensive Loss
|
||||||||||
Balance at October 31, 2018
|
|
$
|
(29,137
|
)
|
|
$
|
(18
|
)
|
|
$
|
104
|
|
|
$
|
(21,879
|
)
|
|
$
|
(50,930
|
)
|
|
|
Other comprehensive income (loss), net of tax
|
|
—
|
|
|
—
|
|
|
(835
|
)
|
|
(3,713
|
)
|
|
(4,548
|
)
|
|||||
|
Amounts reclassified from accumulated other comprehensive loss, net of tax
|
|
667
|
|
|
18
|
|
|
181
|
|
|
—
|
|
|
866
|
|
|||||
|
Net current-period other comprehensive income (loss)
|
|
667
|
|
|
18
|
|
|
(654
|
)
|
|
(3,713
|
)
|
|
(3,682
|
)
|
|||||
Balance at July 31, 2019
|
|
$
|
(28,470
|
)
|
|
$
|
—
|
|
|
$
|
(550
|
)
|
|
$
|
(25,592
|
)
|
|
$
|
(54,612
|
)
|
|
|
Asset (Liability) Derivatives
|
||||||
|
|
Balance Sheet Location
|
July 31, 2019
|
October 31, 2018
|
||||
Net Investment Hedging Instruments:
|
|
|
|
|||||
|
Cross-currency interest rate swap contract
|
Other assets
|
$
|
—
|
|
$
|
4,432
|
|
Cash Flow Hedging Instruments:
|
|
|
|
|||||
|
Interest rate swap contracts
|
(Other liabilities) Other assets
|
$
|
(715
|
)
|
$
|
135
|
|
Location
|
Three Months Ended July 31, 2019
|
Three Months Ended July 31, 2018
|
||||
Interest expense
|
$
|
4,633
|
|
$
|
3,209
|
|
Effect of hedging on interest expense
|
$
|
51
|
|
$
|
(274
|
)
|
Location
|
Nine Months Ended
July 31, 2019 |
Nine Months Ended
July 31, 2018 |
||||
Interest expense
|
$
|
11,836
|
|
$
|
8,194
|
|
Effect of hedging on interest expense
|
$
|
(564
|
)
|
$
|
27
|
|
|
|
Stock Options
|
|
Restricted Stock
|
|
Restricted Stock Units
|
|||||||||||||||||||
Outstanding at:
|
|
Options
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Life
|
|
Restricted Shares
|
|
Grant Fair Value
|
|
Weighted Average Remaining Contractual Life
|
|
Restricted Share Units
|
|
Grant Fair Value
|
|
Weighted Average Remaining Contractual Life
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
November 1, 2017
|
|
58
|
|
|
$8.16
|
|
2.53
|
|
441
|
|
|
$7.07
|
|
1.60
|
|
36
|
|
|
$7.69
|
|
1.82
|
||||
Granted
|
|
—
|
|
|
—
|
|
|
|
|
296
|
|
|
8.12
|
|
|
|
|
18
|
|
|
7.90
|
|
|
|
|
Options exercised or restricted stock vested
|
|
(12
|
)
|
|
3.26
|
|
|
|
|
(200
|
)
|
|
7.51
|
|
|
|
|
(15
|
)
|
|
8.30
|
|
|
|
|
Forfeited or expired
|
|
(3
|
)
|
|
12.04
|
|
|
|
|
(41
|
)
|
|
7.08
|
|
|
|
|
(12
|
)
|
|
6.18
|
|
|
|
|
July 31, 2018
|
|
43
|
|
|
$9.33
|
|
1.83
|
|
496
|
|
|
$7.52
|
|
1.95
|
|
26
|
|
|
$8.17
|
|
1.72
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
November 1, 2018
|
|
33
|
|
|
$9.42
|
|
1.84
|
|
478
|
|
|
$7.45
|
|
1.87
|
|
27
|
|
|
$8.17
|
|
1.37
|
||||
Granted
|
|
—
|
|
|
—
|
|
|
|
|
418
|
|
|
6.73
|
|
|
|
|
42
|
|
|
6.47
|
|
|
|
|
Options exercised or restricted stock vested
|
|
—
|
|
|
—
|
|
|
|
|
(230
|
)
|
|
6.84
|
|
|
|
|
(14
|
)
|
|
7.98
|
|
|
|
|
Forfeited or expired
|
|
—
|
|
|
—
|
|
|
|
|
(54
|
)
|
|
7.39
|
|
|
|
|
(4
|
)
|
|
7.35
|
|
|
|
|
July 31, 2019
|
|
33
|
|
|
$9.42
|
|
1.09
|
|
612
|
|
|
$7.20
|
|
1.97
|
|
51
|
|
|
$6.84
|
|
2.00
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Restricted stock
|
|
$
|
544
|
|
|
$
|
488
|
|
|
$
|
1,461
|
|
|
$
|
1,465
|
|
Restricted stock units
|
|
42
|
|
|
27
|
|
|
115
|
|
|
92
|
|
||||
Total
|
|
$
|
586
|
|
|
$
|
515
|
|
|
$
|
1,576
|
|
|
$
|
1,557
|
|
|
Asset (Liability)
|
Level 1
|
Level 2
|
Valuation Technique
|
|||||
October 31, 2018
|
|
|
|
|
|||||
Cross-Currency Interest Rate Swap
|
$
|
4,432
|
|
—
|
|
$
|
4,432
|
|
Income Approach
|
Interest Rate Swap Contracts
|
135
|
|
—
|
|
135
|
|
Income Approach
|
||
Marketable Securities
|
21
|
|
21
|
|
—
|
|
Market Approach
|
||
|
|
|
|
|
|||||
July 31, 2019
|
|
|
|
|
|||||
Interest Rate Swap Contracts
|
$
|
(715
|
)
|
—
|
|
$
|
(715
|
)
|
Income Approach
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Employee costs
|
|
$
|
947
|
|
|
$
|
1,352
|
|
|
$
|
2,377
|
|
|
$
|
2,931
|
|
Professional and legal costs
|
|
2,608
|
|
|
58
|
|
|
6,769
|
|
|
1,170
|
|
||||
Other
|
|
350
|
|
|
555
|
|
|
2,225
|
|
|
861
|
|
||||
|
|
$
|
3,905
|
|
|
$
|
1,965
|
|
|
$
|
11,371
|
|
|
$
|
4,962
|
|
|
Balance as of October 31, 2018
|
|
Restructuring Expense
|
|
Payments
|
|
Balance as of July 31, 2019
|
||||||||
Employee costs
|
$
|
367
|
|
|
2,377
|
|
|
2,744
|
|
|
$
|
—
|
|
||
Professional and legal costs
|
248
|
|
|
6,769
|
|
|
$
|
4,792
|
|
|
2,225
|
|
|||
Other
|
—
|
|
|
2,225
|
|
|
$
|
2,225
|
|
|
—
|
|
|||
|
$
|
615
|
|
|
$
|
11,371
|
|
|
$
|
9,761
|
|
|
$
|
2,225
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income (loss) available to common stockholders
|
$
|
(2,709
|
)
|
|
$
|
11,052
|
|
|
$
|
(6,295
|
)
|
|
$
|
19,935
|
|
Basic weighted average shares
|
23,557
|
|
|
23,278
|
|
|
23,486
|
|
|
23,202
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Restricted stock, units and stock options (1)
|
—
|
|
|
175
|
|
|
—
|
|
|
139
|
|
||||
Diluted weighted average shares
|
23,557
|
|
|
23,453
|
|
|
23,486
|
|
|
23,341
|
|
||||
Basic income (loss) per share
|
$
|
(0.11
|
)
|
|
$
|
0.47
|
|
|
$
|
(0.27
|
)
|
|
$
|
0.86
|
|
Diluted income (loss) per share
|
$
|
(0.11
|
)
|
|
$
|
0.47
|
|
|
$
|
(0.27
|
)
|
|
$
|
0.85
|
|
|
|
Net Revenues
|
|
Net Revenues
|
||||||||||||
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
Geographic Region:
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
North America
|
|
$
|
203,920
|
|
|
$
|
223,074
|
|
|
$
|
606,872
|
|
|
$
|
648,705
|
|
Europe & Asia
|
|
65,214
|
|
|
77,438
|
|
|
205,760
|
|
|
206,108
|
|
||||
Eliminations
|
|
(5,689
|
)
|
|
(5,629
|
)
|
|
(16,884
|
)
|
|
(14,924
|
)
|
||||
Total Company
|
|
$
|
263,445
|
|
|
$
|
294,883
|
|
|
795,748
|
|
|
$
|
839,889
|
|
|
|
Foreign Currency Gain (Loss)
|
|
Foreign Currency Gain (Loss)
|
||||||||||||
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
Geographic Region:
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
North America
|
|
$
|
(221
|
)
|
|
$
|
259
|
|
|
$
|
(10
|
)
|
|
$
|
228
|
|
Europe & Asia
|
|
$
|
484
|
|
|
$
|
21
|
|
|
$
|
478
|
|
|
$
|
(222
|
)
|
|
Long-Lived Assets
|
||||||
Geographic Region:
|
July 31, 2019
|
|
October 31, 2018
|
||||
North America
|
$
|
272,595
|
|
|
$
|
253,711
|
|
Europe & Asia
|
102,118
|
|
|
104,780
|
|
||
Total Company
|
$
|
374,713
|
|
|
$
|
358,491
|
|
•
|
our ability to accomplish our strategic objectives;
|
•
|
our ability to derive a substantial portion of our sales from large customers;
|
•
|
our ability to obtain future sales;
|
•
|
changes in worldwide economic and political conditions, including adverse effects from terrorism or related hostilities;
|
•
|
costs related to legal and administrative matters;
|
•
|
our ability to realize cost savings expected to offset price concessions;
|
•
|
our ability to successfully integrate acquired businesses, including businesses located outside of the United States;
|
•
|
risks associated with doing business internationally, including economic, political and social instability, foreign currency exposure and the lack of acceptance of our products;
|
•
|
inefficiencies related to production and product launches that are greater than anticipated;
|
•
|
changes in technology and technological risks;
|
•
|
work stoppages and strikes at our facilities and that of our customers or suppliers;
|
•
|
our dependence on the automotive and heavy truck industries, which are highly cyclical;
|
•
|
the dependence of the automotive industry on consumer spending, which is subject to the impact of domestic and international economic conditions affecting car and light truck production;
|
•
|
regulations and policies regarding international trade;
|
•
|
financial and business downturns of our customers or vendors, including any production cutbacks or bankruptcies;
|
•
|
increases in the price of, or limitations on the availability of aluminum, magnesium or steel, our primary raw materials, or decreases in the price of scrap steel;
|
•
|
the successful launch and consumer acceptance of new vehicles for which we supply parts;
|
•
|
the impact on financial statements of any known or unknown accounting errors or irregularities; and the magnitude of any adjustments in restated financial statements of our operating results;
|
•
|
the occurrence of any event or condition that may be deemed a material adverse effect under our outstanding indebtedness or a decrease in customer demand which could cause a covenant default under our outstanding indebtedness;
|
•
|
pension plan funding requirements; and
|
•
|
other factors besides those listed here could also materially affect our business.
|
Production Volumes
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(Number of Vehicles in Thousands)
|
|
(Number of Vehicles in Thousands)
|
||||||||
Asia
|
5,442
|
|
|
6,435
|
|
|
18,273
|
|
|
21,404
|
|
Europe
|
5,587
|
|
|
5,744
|
|
|
16,452
|
|
|
17,361
|
|
North America
|
4,132
|
|
|
4,018
|
|
|
12,313
|
|
|
12,429
|
|
Total
|
15,161
|
|
|
16,197
|
|
|
47,038
|
|
|
51,194
|
|
|
|
|
|
|
|
|
|
||||
Asia
|
|
|
|
|
|
|
|
||||
Decrease from prior year
|
(993
|
)
|
|
|
|
(3,131
|
)
|
|
|
||
% Decrease from prior year
|
(15.4
|
)%
|
|
|
|
(14.6
|
)%
|
|
|
||
Europe
|
|
|
|
|
|
|
|
||||
Decrease from prior year
|
(157
|
)
|
|
|
|
(909
|
)
|
|
|
||
% Decrease from prior year
|
(2.7
|
)%
|
|
|
|
(5.2
|
)%
|
|
|
||
North America
|
|
|
|
|
|
|
|
||||
Increase (decrease) from prior year
|
114
|
|
|
|
|
(116
|
)
|
|
|
||
% Increase (decrease) from prior year
|
2.8
|
%
|
|
|
|
(0.9
|
)%
|
|
|
||
Total
|
|
|
|
|
|
|
|
||||
Decrease from prior year
|
(1,036
|
)
|
|
|
|
(4,156
|
)
|
|
|
||
% Decrease from prior year
|
(6.4
|
)%
|
|
|
|
(8.1
|
)%
|
|
|
|
Nine Months Ended July 31,
|
|
2019 vs. 2018
|
||||||||
|
2019
|
|
2018
|
|
change
|
||||||
Net cash provided by operating activities
|
$
|
24,354
|
|
|
$
|
50,881
|
|
|
$
|
(26,527
|
)
|
Net cash used in investing activities
|
$
|
(30,435
|
)
|
|
$
|
(98,453
|
)
|
|
$
|
68,018
|
|
Net cash provided by financing activities
|
$
|
957
|
|
|
$
|
55,776
|
|
|
$
|
(54,819
|
)
|
|
Nine Months Ended July 31,
|
||||||
|
2019
|
|
2018
|
||||
Operational cash flow before changes in operating assets and liabilities
|
$
|
29,633
|
|
|
$
|
57,077
|
|
|
|
|
|
||||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
30,213
|
|
|
18,599
|
|
||
Inventories, net
|
3,900
|
|
|
(2,656
|
)
|
||
Prepaids and other assets
|
(1,564
|
)
|
|
(4,884
|
)
|
||
Payables and other liabilities
|
(30,965
|
)
|
|
(6,989
|
)
|
||
Accrued income taxes
|
(6,863
|
)
|
|
(10,266
|
)
|
||
Total change in operating assets and liabilities
|
$
|
(5,279
|
)
|
|
$
|
(6,196
|
)
|
|
|
|
|
||||
Net cash provided by operating activities
|
$
|
24,354
|
|
|
$
|
50,881
|
|
•
|
Cash outflows from changes in operating assets and liabilities was $5,279 for the nine months ended July 31, 2019 and $6,196 for the nine months ended July 31, 2018 which was negatively impacted by product launches with increased costs until production stabilizes.
|
•
|
Cash inflows from changes in accounts receivable for the nine months ended July 31, 2019 and 2018, were $30,213 and $18,599, respectively. The cash inflows increased due to continuing efforts to collect receivables and sales volume changes.
|
•
|
Cash inflows from changes in inventory for the nine months ended July 31, 2019 were $3,900 and cash outflows from changes in inventory were $2,656 for the nine months ended July 31, 2018. The difference was primarily driven by operational performance, as well as, a change in customer mix and delivery.
|
•
|
Cash outflows from changes in prepaids and other assets for the nine months ended July 31, 2019 were $1,564 and cash outflows from changes in prepaids and other assets for the nine months ended July 31, 2018 were $4,884. The difference was primarily driven by the timing of invoicing customer-funded tooling.
|
•
|
Cash outflows from changes in payables and other liabilities for the nine months ended July 31, 2019 were $30,965 and cash outflows from changes in payables and other liabilities for the nine months ended July 31, 2018 were $6,989. The difference was primarily driven by payment terms with our customers and vendors, offset partially by the timing of payments related to capital expenditures and customer-funded tooling.
|
•
|
Cash outflows from changes in accrued income taxes for the nine months ended July 31, 2019 and 2018 were $6,863 and $10,266, respectively. The changes were primarily driven by payment of income taxes in foreign jurisdictions.
|
Item 4.
|
Controls and Procedures
|
Item 6.
|
Exhibits
|
|
|
Incorporated By Reference
|
|
|
||
Exhibit #
|
Exhibit Description
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Form
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File Number
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Date of First Filing
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Exhibit Number
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Filed Herewith
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Certificate of Amendment of Restated Certificate of Incorporation of the Registrant, dated March 1, 2019.
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10-Q
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000-21964
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March 12, 2019
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3.1
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Certificate of Amendment to Restated Certificate of Incorporation of the Registrant, dated March 9, 2016 (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q filed on June 8, 2016).
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10-Q
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000-21964
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June 8, 2016
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3.1
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Certificate of Designation, dated December 31, 2001 (incorporated herein by reference to Exhibit 3.1(ii) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended October 31, 2001).
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10-K
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000-21964
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February 13, 2002
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3.1(ii)
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Restated Certificate of Incorporation of the Registrant, dated June 23, 1993 (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q filed on June 8, 2016).
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10-Q
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000-21964
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June 8, 2016
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3.1
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Amended and Restated By-Laws of the Registrant, as amended through December 18, 2018 (incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on December 21, 2018).
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8-K
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000-21964
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December 21, 2018
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3.1
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Executive Nonqualified Excess Plan Document
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X
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Principal Executive Officer’s Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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X
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Principal Financial Officer’s Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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X
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Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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X
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101.INS
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XBRL Instance Document
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X
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101.SCH
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XBRL Taxonomy Extension Schema Document
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X
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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X
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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X
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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X
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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X
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SHILOH INDUSTRIES, INC.
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By:
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/s/ Lillian Etzkorn
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Lillian Etzkorn
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Senior Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer)
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7.
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"Company" means the company designated in the Adoption Agreement as such.
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13.
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"Effective Date" shall be the date designated in the Adoption Agreement.
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1.
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Issued pursuant to a State's domestic relations law;
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5.
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Meets such other requirements established by the Committee.
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1.
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Board.
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(i)
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To amend the Plan;
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(ii)
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To appoint and remove members of the Committee; and
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(iii)
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To terminate the Plan as permitted in Section 14.
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2.
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Committee.
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(i)
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To designate Participants;
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(i)
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the specific reason or reasons for the adverse determination;
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(ii)
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specific reference to pertinent Plan provisions on which the adverse determination is based;
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(iii)
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a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits; and
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(iv)
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a statement describing any voluntary appeal procedures offered by the Plan and the claimant’s right to obtain the
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3.
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The decision of the Committee shall be final and conclusive.
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6.
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Disability Claims
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(i)
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the specific reason(s) for the denial,
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(ii)
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references to the specific Plan provisions on which the benefit determination was based,
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(iii)
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a description of any additional material or information necessary to perfect a claim and an explanation of why such information is necessary,
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(iv)
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a description of the Committee’s appeals procedures and applicable time limits, including, to the extent applicable, a statement of the right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review,
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(v)
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a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (i) the views presented by the claimant to the Committee of health care professionals treating the claimant and vocational professionals who evaluated the claimant; (ii) the views of medical or vocational experts whose advice was obtained on behalf of the Committee in connection with a claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (iii) a disability determination regarding the claimant presented by the claimant to the Committee made by the Social Security Administration,
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(vi)
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if the determination is based on medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the relevant medical circumstances, or a statement that such explanation will be provided free of charge upon request,
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(vii)
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either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse benefit determination, or a statement that such rules, guidelines, protocols, standards, or other similar criteria of the Plan do not exist, and
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(viii)
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a statement that the Participant or Beneficiary is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to his or her claim for benefits.
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(i)
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the specific reason(s) for the adverse determination,
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(ii)
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references to the specific Plan provisions on which the determination was based,
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(iii)
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a statement regarding the right to receive upon request and free of charge reasonable access to, and copies of, all records, documents and other information relevant to the benefit claim,
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(iv)
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a description of the first review appeals committee’s review procedures and applicable time limits, including a statement of the right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review,
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(v)
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a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (i) the views presented by the claimant to the committee of health care professionals treating the claimant and vocational professionals who evaluated the claimant; (ii) the views of medical or vocational experts whose advice was obtained by or on behalf of the committee in connection with a claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; and (iii) a disability determination regarding the claimant presented by the claimant to the committee made by the Social Security Administration,
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(vi)
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if the determination is based on medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the relevant medical circumstances, or a statement that such explanation will be provided free of charge upon request, and
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(vii)
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either the specific internal rules, guidelines, protocols, standards or other similar criteria of the Plan relied upon in making the adverse benefit determination, or a statement that such rules, guidelines, protocols, standards, or other similar criteria of the Plan do not exist.
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1.
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I have reviewed this quarterly report on Form 10-Q of Shiloh Industries, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ Ramzi Hermiz
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Ramzi Hermiz
President and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Shiloh Industries, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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/s/ Lillian Etzkorn
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Lillian Etzkorn
Senior Vice President and Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
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/s/ Ramzi Hermiz
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Ramzi Hermiz
President and Chief Executive Officer
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/s/ Lillian Etzkorn
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Lillian Etzkorn
Senior Vice President and Chief Financial Officer
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