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Note 5 - Discontinued Operations

6 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

5) Discontinued Operations

In pursuing our business strategy, the Company continues to divest certain businesses and record activities of these businesses as discontinued operations.

During the first quarter of fiscal 2019, in order to focus its financial assets and managerial resources on its remaining portfolio of businesses, the Company decided to divest its Cooking Solutions Group, which consisted of three operating segments and a minority interest investment. In connection with the divestiture, during the second quarter of fiscal 2019, the Company sold its minority interest investment to the majority shareholders. During the third quarter of fiscal 2019, the Company entered into a definitive agreement to sell the three operating segments to The Middleby Corporation for a cash purchase price of $105 million, subject to post-closing adjustments and various transaction fees.

The transaction closed on March 31, 2019 and resulted in a pre-tax gain of $20.5 million less related transaction expenses of $4.4 million. The Company reported a tax benefit related to the sale due to the write-off of deferred tax liabilities related to the Cooking Solutions Group. Because the transaction closed on a non-business day, cash proceeds related to the sale were not received until the next business day which resulted in a receivable of $106.9 million recorded at March 31, 2019.

Results of the Cooking Solutions Group in current and prior periods have been classified as discontinued operations in the Condensed Consolidated Financial Statements and excluded from the results from continuing operations. Activity related to the Cooking Solutions Group and other discontinued operations for the three and six months ended December 31, 2019 and 2018 is as follows (in thousands):

		*Three Months Ended*								*Six Months Ended*
		*December 31,*								*December 31,*
		*2019*				*2018*				*2019*				*2018*
Net Sales		$	-			$	23,980			$	-			$	48,427
Income from Operations		$	(264	)		$	1,777			$	(70	)		$	3,608
Profit Before Taxes		$	(275	)		$	1,119			$	(250	)		$	3,016
Benefit (Provision) for Taxes			104				(195	)			68				(528	)
Net income from Discontinued Operations		$	(171	)		$	924			$	(182	)		$	2,488