scx-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			For the quarterly period ended			March 31, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			For the transition period from						to

			Commission file number						1-367


THE L. S. STARRETT COMPANY
(Exact name of registrant as specified in its charter)


Massachusetts						04-1866480
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


121 Crescent Street, Athol, Massachusetts			01331-1915
(Address of principal executive offices)			(Zip Code)


Registrant's telephone number, including area code			978-249-3551

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common - $1.00 Per Share Par Value	SCX	New York Stock Exchange
Class B Common - $1.00 Per Share Par Value	Not applicable	Not applicable

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller Reporting Company ☒

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒


Common Shares outstanding as of						April 19, 2022
Class A Common Shares						6,666,824
Class B Common Shares						591,577

THE L. S. STARRETT COMPANY

CONTENTS


			Page No.

Part I.	Financial Information:

	Item 1.	Financial Statements	3

		Consolidated Balance Sheets – March 31, 2022 (unaudited) and June 30, 2021	3

		Consolidated Statements of Operations (unaudited)– three and nine months ended March 31, 2022 and March 31, 2021	4

		Consolidated Statements of Comprehensive Income (Loss) (unaudited) – three and nine months ended March 31, 2022 and March 31, 2021	5

		Consolidated Statements of Stockholders' Equity (unaudited) – three and nine months ended March 31, 2022 and March 31, 2021	6

		Consolidated Statements of Cash Flows (unaudited) - nine months ended March 31, 2022 and March 31, 2021	8

		Notes to Unaudited Consolidated Financial Statements	9-21

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

	Item 4.	Controls and Procedures	27

Part II.	Other Information:

	Item 1A.	Risk Factors	28

	Item 6.	Exhibits	29

SIGNATURES			30

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

THE L. S. STARRETT COMPANY

Consolidated Balance Sheets

(in thousands except share data)

(unaudited)


	03/31/2022		06/30/2021
ASSETS
Current assets:
Cash	$	8,020	$	9,105
Accounts receivable (less allowance for doubtful accounts of $705 and $665, respectively)	41,415		35,076
Inventories	73,075		60,572
Prepaid expenses and other current assets	15,018		14,467
Total current assets	137,528		119,220

Property, plant and equipment, net	38,927		35,992
Right of use assets	5,606		4,298

Deferred tax assets, net	18,077		19,073
Intangible assets, net	4,713		4,888
Goodwill	1,015		1,015
Total assets	$	205,866	$	184,486

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of debt	$	22,832	$	15,959
Current lease liability	1,535		1,650
Accounts payable	17,908		17,229
Accrued expenses	11,091		8,811
Accrued compensation	5,590		8,040
Total current liabilities	58,956		51,689

Other tax obligations	3,024		2,866
Long-term lease liability	4,231		2,734
Long-term debt, net of current portion	9,405		6,010
Postretirement benefit and pension obligations	33,977		37,652
Total liabilities	109,593		100,951

Stockholders' equity:
Class A Common stock $1 par(20,000,000 shares authorized;

SEC Form 10-Q filed by L.S. Starrett Company