In "Management's discussion and analysis on financial condition and results of
operations" in this quarterly report on Form 10-Q, we discuss non-U.S. GAAP
financial measures related to currency-neutral sales revenues, as well as
adjusted operating income to adjust for restructuring costs and the gain on the
sale of assets that are reflected in one period but not the other in order to
show comparative operational performance.

We present these non-U.S. GAAP financial measures because we believe they assist
investors in comparing our performance across reporting periods on a consistent
basis by eliminating items that we do not believe are indicative of our core
operating performance. Such non-U.S. GAAP financial measures assist investors in
understanding the ongoing operating performance of the Company by presenting
financial results between periods on a more comparable basis. Such measures
should be considered in addition to, and not in lieu of, the financial measures
calculated and presented in accordance with accounting principles generally
accepted in the United States of America ("U.S. GAAP"). Currency-neutral sales
are calculated using actual exchange rates in use during the comparative prior
year period to enhance the visibility of the underlying business trends
excluding the impact of translation arising from foreign currency exchange rate
fluctuations. We include a reconciliation of adjusted operating income to its
comparable U.S. GAAP financial measures.

References to currency-neutral revenues and adjusted operating income should not
be considered in isolation or as a substitute for other financial measures
calculated and presented in accordance with U.S. GAAP and may not be comparable
to similarly titled non U.S GAAP financial measures used by other companies. In
evaluating these non-U.S. GAAP financial measures, investors should be aware
that in the future we may incur expenses or be involved in transactions that are
the same as or similar to some of the adjustments in this presentation. Our
presentation of non-U.S. GAAP financial measures should not be construed to
imply that its future results will be unaffected by any such adjustments.
Non-U.S. GAAP financial measures have limitations as analytical tools, and
investors should not consider them in isolation or as a substitute for analysis
of our results as reported under U.S. GAAP.

Please see Note 2 regarding segment results of operations. The Company's
business is aggregated into two reportable segments based on geography of
operations: North American Operations and International Operations. Segment
income is measured for internal reporting purposes by excluding corporate
expenses, which are included in the unallocated column in the following tables
as well as Note 2. These tables above are included to better explain our
consolidated operational performance by showing more detail by business segment
and reconciling U.S. GAAP operating income and adjusted operating income.












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The following table represents key results of operations on a consolidated basis
for the periods indicated:
                                                Three Months Ended (unaudited)                                          Nine Months Ended (unaudited)
                                    3/31/2021    3/31/2020  $ Change favorable      % Change               3/31/2021    3/31/2020  $ Change favorable      % Change
(Amounts in thousands)                                        (unfavorable)                                                          (unfavorable)
Net sales                     $    54,944     $  49,998    $           4,946              9.9  %       $  158,408    $ 158,976    $            (568)            (0.4) %
Gross margin                       18,149        14,844                3,305             22.3  %           51,326       51,183                  143              0.3  %
% of net sales                       33.0   %      29.7  %                                                   32.4  %      32.2  %

Selling, general and
administrative expenses            13,511        14,780                1,269              8.6  %           41,126       46,912                5,786             12.3  %
% of net sales                       24.6   %      29.6  %                                                   26.0  %      29.5  %

Restructuring charges                 788             0                 (788)          (100.0) %            1,518            0               (1,518)          (100.0) %
Gain on sale of building                0             0                    -                -  %           (3,204)           0                3,204            100.0  %

GAAP Operating income as
reported                            3,850            64                3,786           5916.1  %           11,886        4,271                7,615            178.3  %

Other income (expense), net           663           223                  440            197.3  %              236         (833)               1,069            128.3  %

Income before income taxes          4,513           287                4,226           1472.6  %           12,122        3,438                8,684            252.6  %

Income tax expense (benefit)        1,496          (326)              (1,822)           558.9  %            1,132          787                 (345)           (43.8) %

Net income                    $     3,017     $     613    $           2,404            392.2  %       $   10,990    $   2,651    $           8,339            314.6  %


U.S. GAAP to Non-U.S GAAP reconciliation:


                                                         Three Months Ended                                                   Nine Months Ended
(Amounts in thousands)               03/31/2021    3/31/2020  $ Change favorable      % Change             3/31/2021    3/31/2020  $ Change favorable     % Change
                                                                (unfavorable)                                                        (unfavorable)

Operating income as reported      $    3,850    $      64    $           3,786             5916  %       $ 11,886    $   4,271    $           7,615            178  %
Removing restructuring charges
(adding back)                            788            -                 (788)               -             1,518            -               (1,518)             -
Less gain on sale of building              -            -                    -                -            (3,204)           -                3,204              -
Adjusted operating income         $    4,638    $      64    $           4,574             7147  %       $ 10,200    $   4,271    $           5,929            139  %
                                                                                                                                                            3.8 basis
% of net sales                           8.4  %       0.1  %                      8.3 basis points            6.4  %       2.7  %                               point




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The following table represents key results of operations for three months ending
March 31, 2021 and 2020 based on our business aggregated into two reportable
segments according to geography of operations : North American Operations and
International Operations:
                                    Three Months Ended March 2021 (unaudited)                                Three Months Ended March 2020 (unaudited)
(Amounts in thousands)       North America    International    Corporate      Total            North America        International         Corporate          Total

Net sales                   $    32,519     $       22,425               - $ 54,944                33,369               16,629                0             49,998
Gross margin (loss)               9,741              8,408               -   18,149                8,802                6,149               (107)           14,844
% of net sales                     30.0   %           37.5  %                  33.0  %             26.4%                37.0%                                29.7%

Selling, general and
administrative expenses           6,628              5,111        1,773      13,511                7,465                5,701               1,614           14,780
% of net sales                     20.4   %           22.8  %                  24.6  %             22.4%                34.3%                                29.6%

Restructuring charges               182                605               -      788                  -                    -                   -                -

Operating income            $     2,931     $        2,692    $  (1,773)   $  3,850                    1,337                    448         (1,721)               64
% of net sales                      9.0   %           12.0  %                   7.0  %                   4.0  %                 2.7  %                           0.1  %


U.S. GAAP to Non-U.S. GAAP reconciliation:


                                        Three Months Ended March 2021                                  Three Months Ended March 2020

(Amounts in thousands) North America International Corporate Total

           North America    International   Corporate     Total

Operating income as
reported                   $      2,931    $      2,692    $  (1,773)   $  

3,850 $ 1,337 $ 448 $ (1,721) $ 64 Restructuring charges

               182             605            -         788                      -               -            -          -
Adjusted operating income  $      3,113    $      3,297    $  (1,773)   $  4,638          $       1,337    $        448    $  (1,721)   $    64
% of net sales                      9.6  %         14.7  %                   8.4  %                 4.0  %          2.7  %                  0.1  %












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The following table represents key results of operations for nine months ending
March 31, 2021 and 2020 based on our business aggregated into two reportable
segments according to geography of operations: North American Operations and
International Operations:
                                    Nine Months Ended March 2021 (unaudited)                            Nine Months Ended March 2020 (unaudited)
(Amounts in thousands)      North America    International    Corporate      Total            North America    International     Corporate        Total
Net sales                  $    85,609     $       72,799    $       -    $ 158,408          $    97,475     $       61,501    $        -    $    158,976
Gross margin                    24,500             26,826            -       51,326               28,472             22,679            32          51,183
% of net sales                    28.6   %           36.8  %                   32.4  %              29.2   %           36.9  %                       32.2  %

Selling, general and
administrative expenses         18,257             17,340        5,529       41,126          $    22,255     $       19,610    $    5,047    $     46,912
% of net sales                       -                  -                         -                    -                  -                             -

Restructuring charges              836                682            -        1,518                    -                  -             -               -
Gain on sale of building        (3,204)                 -            -       (3,204)                   -                  -             -               -

Operating income           $     8,611     $        8,804    $  (5,529)   $  11,886          $     6,217     $        3,069    $   (5,015)   $      4,271
% of net sales                    10.1   %           12.1  %                    7.5  %               6.4   %            5.0  %                        2.7  %

U.S. GAAP to Non-U.S. GAAP reconciliation:


                                           Nine Months Ended March 2021                                  Nine Months Ended March 2020

(Amounts in thousands) North America International Corporate

  Total           North America   International   Corporate     Total
Operating income as reported $      8,611    $      8,804    $  (5,529)   $ 11,886          $      6,217    $      3,069    $  (5,015)   $ 4,271
Restructuring charges                 836             682            -       1,518                     -               -            -          -
Gain on sale of building           (3,204)              -            -      (3,204)                    -               -            -          -
Adjusted operating income    $      6,243    $      9,486    $  (5,529)   $ 10,200          $      6,217    $      3,069    $  (5,015)   $ 4,271
% of net sales                        7.3  %         13.0  %                   6.4  %                6.4  %          5.0  %                  2.7  %

Three and Nine Months Periods Ended March 31, 2021 and March 31, 2020 Overview



Net sales in the quarter ended March 31, 2021 were $55.0 million, up $5.0
million, an improvement of 10.0% compared to $50.0 million in the quarter ended
March 31, 2020. Net Sales in the nine months ended March 31, 2021 of $158.4
million, compared to $159.0 million for the same nine month period ending March
31, 2020, were lower by $0.6 million or 0.4%. Foreign currency translation
negatively impacted reported sales by $2.6 million for the three months ended
March 31, 2021. On a foreign currency neutral basis, sales in the quarter ending
March 31, 2021 increased 15.0% from the quarter ending March 31, 2020. Over the
nine month period ending March 31, 2021, the unfavorable currency impact on
reported Net Sales was $12.8 million. Therefore, on a currency neutral basis,
Net Sales have increased by 7.7% for the first nine months of this fiscal year
compared to last fiscal year.

Operating income in the quarter ended March 31, 2021 of $3.8 million or 7% of
sales, was an improvement of $3.7 million over the same three month period
ending March 31, 2020. Operating income in the nine month periods ending March
31, 2021 and March 31, 2020 was increased by 178% to $11.9 million from $4.3
million in the prior fiscal year. Adjusting to compare operationally, in the
three months ended March 31, 2021, removing restructuring cost of $0.8 million,
adjusted operating income was $4.6 million or 8.4% of sales versus $0.1 million
or 0.1% of sales for the three month period ending March 31, 2020. In the nine
months period ended March 31, 2021 as compared to 2020, when removing the impact
of $1.5 million in restructuring charges and the $3.2 million gain on the sale
of our North Carolina facility in December, 2020, adjusted operating income was
$10.2 million or 6.4% of sales versus $4.3 million or 2.7% of sales in the same
nine-month period ending in March, 2020.

This improvement is the result of aligning our cost structure to current pandemic demand and on-going restructuring, and strong sales growth internationally, especially in Brazil. The Company continues to benefit from its restructuring activities that have


                                       24
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resulted in a reduction of selling, general and administrative expenses of $1.3
million in the three months ending March 31, 2021, and $5.8 million in the nine
months ending March 31, 2021, compared to the same periods respectively ending
March 31, 2020.

As presented on separate lines on the Consolidated Statements of Operations are
a gain on the sale of the North Carolina facility of $3.2 million and $1.5
million in restructuring charges of which $0.8 million in the U.S. and $0.7
million internationally associated with the fiscal year 2021 plan as disclosed
in the June 30, 2020 Form 10-K as well as Note 14.

Net income improved by $2.4 million to $3.0 million in the quarter ended March
31, 2021, and by $8.3 million to $11.0 million in the nine month period ending
March 31, 2021 compared to the same periods respectively ending March 31, 2020.


Net Sales

The Company's net sales for the quarter ended March 31, 2021 were $55.0 million
versus $50.0 million for the same period a year prior. North America sales of
$32.5 million, a decline of $0.9 million in quarter ended March 31, 2021 from
$33.4 million in 2020, were more than offset by an increase of $5.8 million in
International sales to $22.4 million in the quarter ended March 31, 2021 versus
$16.6 million in 2020. The Company continues to achieve sales growth
internationally when compared to last year. The quarter ending March 31, 2021
has seen a resurgence in North American sales relative to International sales,
as order intake and shipped sales in our North American product lines are
steadily returning to pre- pandemic levels.

During the nine months ended March 31, 2021 as compared to 2020, North American
sales decreased $11.8 million or 12.2% while International sales increased $11.3
million or 18.4%. However, on a currency neutral basis, International Sales have
increased by 38.9% for the nine months ending March 31, 2021 compared to the
same nine months a year earlier. This is primarily due to a much weaker
Brazilian currency, where sales measured in local currency have increased by
69.0% in the nine month period ending March 31, 2021 compared to the year prior.
Gross Margin
Gross margin increased $3.3 million or 22.3% for the three months, and $0.1
million for the nine months ending on March 31, 2021 as compared to the year
prior. Total gross margin as a percentage of sales improved by 3.3 percentage
points, from 29.7% to 33.0% for the three month period ending March 31, 2021
compared to March 31, 2020. The quarter on quarter improvement is a result of
lower production overheads and capacity achieved as a result of our
restructuring program, and higher plant utilization due to higher production
levels. For the nine month comparative period ending March 31, 2021, total gross
margin as percent of sales improved by 0.2 percentage points from 32.2% to
32.4%. The restructuring benefits of reducing production capacity and costs were
starting to be realized beginning in the quarter ending March 31, 2021.
For the three months ending March 31, 2021, North American gross margin measured
as a percent of Net Sales improved by 3.60 percentage points from 26.4% to
30.0%, compared to the three month period ending March 31, 2020, on a similar
level of Net Sales for the quarter. International gross margin improved by 0.5
percentage points from 37.0% at the end of the three month period ending March
31, 2020 to 37.5% for the three month period ending March 31, 2021.
For the nine month period ending March 31, 2021, North American gross margin
measured as a percent of Net Sales declined from 29.2% to 28.6% due to lower
plant utilization on much lower production volumes, when compared to the nine
month period ending March 31, 2020. International gross margin measured the same
way declined from 36.9% to 36.8% from March 31, 2020 to March 31, 2021
respectively.
Selling, General and Administrative Expenses

Selling, general and administrative expenses decreased $1.3 million or 8.6%
during the quarter ended March 31, 2021 compared to 2020. The Company continues
to align our cost structure to demand with a reduction in selling, general and
administrative headcount of 122 when comparing these two quarters.

Selling, general and administrative expenses decreased $5.8 million or 12.3%
during the nine months ended March 31, 2021 compared to 2020. Corporate expenses
are up $0.5 million or 9.6% while the rest of selling, general and
administrative costs are down 12.7%.

Income Taxes


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For the three month period ended March 31, 2021, the Company recognized tax
expense of $1.5 million on a profit before tax of $4.5 million or an effective
tax rate of 33%. The tax rate for fiscal 2021 was higher than the U.S. statutory
tax rate of 21% primarily due to the GILTI provisions, and the jurisdictional
mix of earnings, particularly Brazil with a statutory rate of 34%. For the three
month period ended March 31, 2020, the Company recognized tax expense of
$(0.3) million on a profit before tax of $0.3 million or an effective tax rate
of (100)%. The tax rate for fiscal 2020 was lower than the U.S. statutory tax
rate of 21% primarily due to the GILTI provisions, the jurisdictional mix of
earnings, particularly Brazil with a statutory rate of 34%, and the impact of
permanent deductible and nondeductible items and research credits. The impact of
these items on the tax rate is substantial based on the Company's profit being
$0.3 million in the third quarter of 2020.
For the nine month period ended March 31, 2021, the Company recognized a tax
provision of $1.1 million on a profit before tax of $12.1 million or an
effective tax rate of 9%. Before the discrete benefits relating to legislation
enacted during the first quarter of fiscal 2021 in the amount of ($2.7) million
related to the impact of the GILTI high-tax exclusion and ($0.2) million related
to the impact of the increase in UK corporate tax rate on the net deferred tax
asset, tax expense was $4.1 million or 34% of pre-tax income. This was higher
than the U.S. statutory tax rate of 21% primarily due to the GILTI provisions,
and the jurisdictional mix of earnings, particularly Brazil with a statutory
rate of 34%, offset by tax credits and permanent deductions generated from
research expenses. For the nine month period ended March 31, 2020. the Company
recognized tax expense of $0.8 million on a profit before tax of $3.4 million or
an effective tax rate of 24%. The tax rate for fiscal 2020 was higher than the
U.S. statutory tax rate of 21% primarily due to the GILTI provisions, and the
jurisdictional mix of earnings, particularly Brazil with a statutory rate of
34%. .

Net Income
Net income for the quarter ended March 31, 2021 and 2020 was $3.0 million and
$0.6 million respectively, an increase of $2.4 million. Net income for the nine
months ended March 31, 2021 and 2020 increased to $11.0 million, up $8.3
million, a 315% increase over the $2.7 million in 2020.

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