Quarterly report pursuant to Section 13 or 15(d)

Assets Held for Sale, Discontinued Operations and Disposals

v3.19.3.a.u2
Assets Held for Sale, Discontinued Operations and Disposals
3 Months Ended
Dec. 31, 2019
Discontinued Operations And Disposal Groups [Abstract]  
Assets Held for Sale, Discontinued Operations and Disposals

4.  Assets Held for Sale, Discontinued Operations and Disposals

In April 2019, we announced that our Board of Directors (the “Board”) determined that it was in the long-term best interest of the Company to exit the solar business segment and focus our strategic efforts on our semiconductor and silicon carbide/polishing business segments in order to more fully realize the opportunities the Company believes are presented in those areas.

The anticipated divestitures of our solar business included our Tempress and SoLayTec subsidiaries, which comprised substantially all of our Solar segment. We adopted a plan to sell our Solar operations on or before March 31, 2020.  As such, we classified substantially all of the Solar segment as held for sale in our Condensed Consolidated Balance Sheets and reported its results as discontinued operations in our Condensed Consolidated Statements of Operations.

On June 7, 2019 (“SoLayTec Sale Date”), we completed the sale of our subsidiary, SoLayTec, to a third party located in the Netherlands.  Upon the sale, we recognized a gain of approximately $1.6 million, which we reported as gain on sale of subsidiary in our Consolidated Statements of Operations for the three months ended June 30, 2019.  Effective on the SoLayTec Sale Date, SoLayTec is no longer included in our consolidated financial statements.  SoLayTec was not material to Amtech’s results of operations or financial position.

On December 13, 2019 (“R2D Sale Date”), we finalized the sale of our subsidiary, R2D Automation SAS (“R2D”), to certain members of R2D’s management team.  Upon the sale, we recognized a loss of approximately $2.8 million, which we reported as loss on sale of subsidiary in our Condensed Consolidated Statements of Operations for the three months ended December 31, 2019.  Effective on the R2D Sale Date, R2D will no longer be included in our consolidated financial statements.  R2D does not meet the discontinued operations or held-for-sale criteria and is not material to Amtech’s results of operations or financial position.

See Note 12 for subsequent event disclosure related to the sale of Tempress.

Operating results of our discontinued solar operations were as follows, in thousands:

 

 

 

Three Months Ended December 31,

 

 

 

2019

 

 

2018

 

Revenues, net of returns and allowances

 

$

5,287

 

 

$

6,228

 

Cost of sales

 

 

4,139

 

 

 

6,123

 

Gross profit

 

 

1,148

 

 

 

105

 

Selling, general and administrative

 

 

1,338

 

 

 

1,595

 

Research, development and engineering

 

 

449

 

 

 

1,080

 

Restructuring charges

 

 

 

 

 

10

 

Operating loss

 

 

(639

)

 

 

(2,580

)

Interest expense and other, net

 

 

(7

)

 

 

(22

)

Loss from discontinued operations

   before income taxes

 

 

(646

)

 

 

(2,602

)

Income tax provision

 

 

19

 

 

 

18

 

Net loss

 

$

(665

)

 

$

(2,620

)

 

The following table presents a summary of the solar assets and liabilities held for sale included in our Condensed Consolidated Balance Sheets, in thousands:

 

 

 

December 31,

2019

 

 

September 30,

2019

 

Assets

 

(Unaudited)

 

 

 

 

 

Total current assets

 

$

13,583

 

 

$

17,591

 

Property, plant and equipment - net

 

 

5,169

 

 

 

5,164

 

Total assets included in the disposal group

 

 

18,752

 

 

 

22,755

 

Total current liabilities

 

 

14,891

 

 

 

18,272

 

Long-term debt

 

 

277

 

 

 

275

 

Total liabilities included in the disposal group

 

 

15,168

 

 

 

18,547

 

Net assets included in the disposal group

 

$

3,584

 

 

$

4,208

 

 

Amtech’s Condensed Consolidated Statements of Cash flows combines cash flows from discontinued operations with cash flows from continuing operations within each cash flow statement category.  The following table summarizes selected cash flow information for discontinued operations, in thousands:

 

 

 

Three Months Ended December 31,

 

 

 

2019

 

 

2018

 

Loss from discontinued operations, net

   of tax

 

$

(665

)

 

$

(2,620

)

Depreciation and amortization

 

$

135

 

 

$

146

 

Reversal of allowance for doubtful

   accounts, net

 

$

(66

)

 

$

(46

)

Purchases of property, plant and equipment

 

$

1

 

 

$

98