MTMC » Topics » NOTE 5. RESTRUCTURING AND OTHER CHARGES

These excerpts taken from the MTMC 10-K filed Jun 24, 2008.

Note 5. Restructuring and Other Charges

During fiscal 2007, the Company implemented a cost reduction plan (the “2007 Restructuring Plan”) designed to improve operating income through reductions of selling, general and administrative expenses (“S,G&A”) and enhancements in gross margin. The 2007 Restructuring Plan was approved by senior management and included significant headcount reductions associated with the final stages of integrating the acquired companies, facility consolidations, as well as other cost reductions. As part of the 2007 Restructuring Plan, the Company also restructured and consolidated other job functions within all regions. This plan resulted in restructuring charges for the year ended March 31, 2007 totaling $6.0 million; $3.1 million primarily related to a reduction in force of senior and middle management, another $1.4 million related to employee terminations, a charge of $0.8 million related to the closure and underutilization of certain facilities and the remaining $0.7 million was for the write-off of other non-cash items. The Company substantially completed the 2007 Restructuring Plan in fiscal 2007; however future cash outlays related to the payment of the facility costs will continue until June 2011.

The payment activities and adjustments in fiscal 2008 and the remaining liability at March 31, 2008 related to the 2007 Restructuring Plan are summarized in the table below.

                      Amounts              
                      Paid and      
    Remaining
          Outstanding           Charged             Liability
    Total Costs     Liability at           Against             at
    Accrued     March 31,     Costs     the       Non-cash     March 31,
(in thousands)    to date     2007    
Incurred
    Liability       Adjustments     2008
Employee termination benefits  $  4,468    $ 1,895    $     $ (1,884 )    $       $ 11 
Facility costs    839      614            (308 )            306 
Other costs    749      299            (292 )            7 
 
    Total 
$  6,056    $ 2,808    $     $ (2,484 )    $       $   324 

During the fourth quarter of fiscal 2008 the Company eliminated certain positions and further streamlined operations. On February 6, 2008, the Company notified approximately 42 of its employees that their employment would be terminated immediately. The Company’s total cost incurred in connection with these terminations was approximately $0.4 million, which was charged to S,G &A for the year ended March 31, 2008. This amount included severance-related costs of approximately $0.3 million. The Company paid out a majority of the costs described above in the quarter ended March 31, 2008.

Additionally, results for the year ended March 31, 2007 include $2.0 million of non-recurring charges. During the quarter ended December 31, 2006 the Company recognized $0.6 million in integration costs for plan implementation and personnel redundancy costs. This amount is included in S,G&A. The balance of $1.4 million of other one-time charges were incurred in the quarter ended September 30, 2006 and consisted of $0.5 million of charges recorded in cost of products sold for a write-off of obsolete inventory obtained as part of prior business acquisitions and $0.9 million of charges to S,G&A.

Note 5. Restructuring and Other Charges


During fiscal 2007, the Company implemented a cost reduction plan (the “2007 Restructuring Plan”) designed to improve operating income through reductions of selling, general and administrative expenses (“S,G&A”) and enhancements in gross margin. The 2007 Restructuring Plan was approved by senior management and included significant headcount reductions associated with the final stages of integrating the acquired companies, facility consolidations, as well as other cost reductions. As part of the 2007 Restructuring Plan, the Company also restructured and consolidated other job functions within all regions. This plan resulted in restructuring charges for the year ended March 31, 2007 totaling $6.0 million; $3.1 million primarily related to a reduction in force of senior and middle management, another $1.4 million related to employee terminations, a charge of $0.8 million related to the closure and underutilization of certain facilities and the
remaining $0.7 million was for the write-off of other non-cash items. The Company substantially completed the 2007 Restructuring Plan in fiscal 2007; however future cash outlays related to the payment of the facility costs will continue until June 2011.


The payment activities and adjustments in fiscal 2008 and the remaining liability at March 31, 2008 related to the 2007 Restructuring Plan are summarized in the table below.























































































































































































































                      Amounts              
                      Paid and      
    Remaining
          Outstanding           Charged             Liability
    Total
Costs
    Liability
at
          Against             at
    Accrued     March 31,     Costs     the       Non-cash     March 31,
(in thousands)    to
date
    2007    
Incurred
    Liability       Adjustments     2008
Employee termination benefits  $  4,468    $ 1,895    $     $ (1,884 )    $  
 
  $ 11 
Facility costs    839      614            (308 )            306 
Other costs    749      299            (292 )            7 
 
    Total 
$  6,056    $ 2,808    $     $ (2,484 )    $  
 
  $   324 



During the fourth quarter of fiscal 2008 the Company eliminated certain positions and further streamlined operations. On February 6, 2008, the Company notified approximately 42 of its employees that their employment would be terminated immediately. The Company’s total cost incurred in connection with these terminations was approximately $0.4 million, which was charged to S,G &A for the year ended March 31, 2008. This amount included severance-related costs of approximately $0.3 million. The Company paid out a majority of the costs described above in the quarter ended March 31, 2008.


Additionally, results for the year ended March 31, 2007 include $2.0 million of non-recurring charges. During the quarter ended December 31, 2006 the Company recognized $0.6 million in integration costs for plan implementation and personnel redundancy costs. This amount is included in S,G&A. The balance of $1.4 million of other one-time charges were incurred in the quarter ended September 30, 2006 and consisted of $0.5 million of charges recorded in cost of products sold for a write-off of obsolete inventory obtained as part of prior business acquisitions and $0.9 million of charges to S,G&A.


This excerpt taken from the MTMC 10-Q filed Feb 14, 2008.

NOTE 5. RESTRUCTURING AND OTHER CHARGES

During fiscal 2007, the Company implemented a cost reduction plan (the “2007 Restructuring Plan”) designed to improve operating income through reductions of selling, general and administrative expenses and enhancements in gross margin. The 2007 Restructuring Plan was approved by senior management and included significant headcount reductions associated with the final stages of integrating the acquired companies, facility consolidations, as well as other cost reductions. As part of the 2007 Restructuring Plan, the Company also restructured and consolidated other job functions within all regions. This plan resulted in restructuring charges for the year ended March 31, 2007 totaling $6.0 million; $3.1 million primarily related to a reduction in force of senior and middle management, another $1.4 million related to employee terminations, a charge of $0.8 million related to the closure and underutilization of certain facilities and the remaining $0.7 million was for the write-off of other non-cash items. The Company substantially completed the 2007 Restructuring Plan in fiscal 2007; however future cash outlays related to employee termination benefits are expected to be paid by March 31, 2008 and payment of the facility costs will continue until June 2011.

The payment activities and adjustments in fiscal 2008 and the remaining liability at December 31, 2007 related to the 2007 Restructuring Plan are summarized in the table below.

      Outstanding                 Non-     Remaining
      Liability at                 cash     Liability at
(in thousands)     March 31,     Costs      Amounts     Adjust-     December 31,
      2007     Incurred     Paid     ments     2007
Employee termination benefits   $ 1,895   $ -   $ (1,429 ) $              -   $ 466
Facility costs     614     -     (286 )                -     328
Other costs     299     -     -                  -     299
 Total   $ 2,808   $ -   $ (1,715 ) $              -   $ 1,093

Additionally, results for the nine months ended December 31, 2006 include $2.0 million of non-recurring charges. During the quarter ended December 31, 2006 the Company recognized $0.6 million in integration costs for plan implementation and personnel redundancy costs. This amount is included in selling, general and administrative expenses (“S,G&A”). The balance of $1.4 million of other one-time charges incurred in the quarter ended September 30, 2006 and consisted of $0.5 million of charges recorded in cost of products sold for a write-off of obsolete inventory obtained as part of prior business acquisitions and $0.9 million of charges to S,G&A

This excerpt taken from the MTMC 10-Q filed Nov 14, 2007.

NOTE 5. RESTRUCTURING AND OTHER CHARGES

During fiscal 2007, the Company implemented a cost reduction plan (the “2007 Restructuring Plan”) designed to improve operating income through reductions of selling, general and administrative expenses and enhancements in gross margin. The 2007 Restructuring Plan was approved by senior management and included significant headcount reductions associated with the final stages of integrating the acquired companies, facility consolidations, as well as other cost reductions. As part of the 2007 Restructuring Plan, the Company also restructured and consolidated other job functions within all regions. This plan resulted in restructuring charges for the year ended March 31, 2007 totaling $6.0 million; $3.1 million primarily related to a reduction in force of senior and middle management, another $1.4 million related to employee terminations, a charge of $0.8 million related to the closure and underutilization of certain facilities and the remaining $0.7 million was for the write-off of other non-cash items. The Company substantially completed the 2007 Restructuring Plan in fiscal 2007; however future cash outlays related to employee termination benefits are expected to be paid by March 31, 2008 and payment of the facility costs will continue until June, 2011.

The payment activities and adjustments in fiscal 2008 and the remaining liability at September 30, 2007 related to the 2007 Restructuring Plan are summarized in the table below.

Outstanding Non- Remaining
Liability at cash Liability at
(in thousands) March 31, Costs Amounts Adjust- September 30,
2007 Incurred Paid ments 2007
Employee termination benefits   $ 1,895   $ -   $ (1,148 )   $ -   $ 747
Facility costs     614     -     (254 )     -     360
Other costs     299     -     -       -     299
 Total   $ 2,808   $ -   $ (1,402 )   $ -   $ 1,406

Additionally, during the quarter ended September 30, 2006, the Company recognized $1.4 million of other one time charges consisting of $0.5 million of charges recorded in cost of products sold for a write-off of obsolete inventory obtained as part of prior business acquisitions and $0.9 million of charges to selling, general and administrative expenses.

8



This excerpt taken from the MTMC 10-K filed Jun 29, 2007.

Note 2. Restructuring and Other Charges

In fiscal 2007, the Company implemented a cost reduction plan (the “Restructuring Plan”) designed to improve operating income through reductions of selling, general and administrative expenses (“S,G&A”) and enhancements in gross margin. The Restructuring Plan was approved by senior management and included significant headcount reductions associated with the final stages of integrating the acquired companies, facility consolidations, as well as other cost reductions. As part of the Restructuring Plan, the Company also restructured and consolidated other job functions within all regions. This plan resulted in restructuring charges for the year ended March 31, 2007 totaling $6.0 million; $3.1 million primarily related to a reduction in force of senior and middle management, another $1.4 million related to employee terminations, a charge of $0.8 million related to the closure and underutilization of certain facilities and the remaining $0.7 million was for the write-off of other non-cash items.

The payment activities and adjustments in fiscal 2007 and the remaining liability at March 31, 2007 related to the Restructuring Plan are summarized in the table below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Outstanding
Liability at
March 31,
2006

 

Costs Incurred

 

Amounts Paid

 

Non-cash
Adjustments

 

Remaining
Liability at
March 31,
2007

 

 

 










 

Employee termination benefits

 

 

 

$

4,468

 

$

(2,573

)

$

 

$

1,895

 

Facility costs

 

 

 

 

839

 

 

(225

)

 

 

 

614

 

Other costs

 

 

 

 

749

 

 

 

 

(450

)

 

299

 

 

 



 



 



 



 



 

Total

 

 

 

$

6,056

 

$

(2,798

)

$

(450

)

$

2,808

 

 

 



 



 



 



 



 

For the year ended March 31, 2007 the Company has paid out $2.8 million in cash related to the restructuring and anticipates that the remaining employee termination benefits will be paid by March 31, 2008 and payment of the facility costs will continue until June, 2011.

Additionally, results for the year ended March 31, 2007 include $2.0 million of non-recurring charges. During the third quarter the Company recognized $0.6 million in integration costs for plan implementation and personnel redundancy costs. This amount is included in S,G&A. The balance of $1.4 million of other one-time charges incurred in the second quarter consisted of $0.5 million of charges recorded in cost of products sold for a write-off of obsolete inventory obtained as part of prior business acquisitions and $0.9 million of charges to S,G&A.

This excerpt taken from the MTMC 10-Q filed Feb 14, 2007.

NOTE 3. RESTRUCTURING AND OTHER CHARGES

The Company implemented a cost reduction plan (the “Restructuring Plan”) during the first half of fiscal 2007. The Restructuring Plan was approved by senior management and included significant headcount reductions associated with the final stages of integrating the acquired companies, as well as other cost reductions. This plan resulted in restructuring charges for the six months ended September 30, 2006 totaling $4.5 million; $2.0 million primarily related to a reduction in force of senior and middle management, another $1.0 million related to employee terminations, a charge of $0.8 million related to the closure and underutilization of certain facilities and the remaining $0.7 million was for the write-off of other non-cash items. The Company did not incur any additional charges in the third quarter of fiscal 2007 and does not anticipate any further restructuring charges during the fourth quarter of this fiscal year.

For the nine months ended December 31, 2006 the Company has paid out $1.9 million in cash related to the restructuring and anticipates that the majority of the remaining severance related costs will be paid out over the next two quarters and payment of the lease costs will continue until June, 2011.

Additionally, results for the nine months ended December 31, 2006 include $2.0 million of non-recurring charges. During the most recent quarter the Company recognized $0.6 million in integration costs for plan implementation and personnel redundancy costs. This amount is included in selling, general and administrative expenses (“S,G&A”). The balance of $1.4 million of other one-time charges incurred in the prior quarter consisted of $0.5 million of charges recorded in cost of products sold for a write-off of obsolete inventory obtained as part of prior business acquisitions and $0.9 million of charges to S,G&A

This excerpt taken from the MTMC 10-Q filed Aug 11, 2006.

NOTE 3. RESTRUCTURING AND OTHER CHARGES

The Company has implemented a plan previously approved by the Board associated with further integration of acquired companies and the related reduction of costs and improvement in operating efficiencies. This plan resulted in charges during the quarter ended June 30, 2006 totaling $1.6 million consisting of certain inventory ($300,000) and accounts receivable ($150,000) reserves, underutilization of certain facilities ($220,000) and employee terminations ($930,000). An additional $300,000 relating to employee termination costs is estimated to be incurred in the quarter ending September 30, 2006.

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