truefalse0000830524--08-312021Q2YesYes94390829448371P3Yus-gaap:AccruedLiabilitiesCurrentfalse0000830524us-gaap:CommonStockMember2019-12-012020-02-290000830524us-gaap:RetainedEarningsMember2021-02-280000830524us-gaap:AdditionalPaidInCapitalMember2021-02-280000830524us-gaap:AccumulatedTranslationAdjustmentMember2021-02-280000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-280000830524us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-02-280000830524us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-02-280000830524us-gaap:RetainedEarningsMember2020-11-300000830524us-gaap:AdditionalPaidInCapitalMember2020-11-300000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-11-3000008305242020-11-300000830524us-gaap:RetainedEarningsMember2020-08-310000830524us-gaap:AdditionalPaidInCapitalMember2020-08-310000830524us-gaap:AccumulatedTranslationAdjustmentMember2020-08-310000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-08-310000830524us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-08-310000830524us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-08-310000830524srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201802Memberus-gaap:RetainedEarningsMember2020-02-290000830524srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201802Memberus-gaap:AccumulatedOtherComprehensiveIncomeMember2020-02-290000830524srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2020-02-290000830524srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-02-290000830524us-gaap:RetainedEarningsMember2020-02-290000830524us-gaap:AdditionalPaidInCapitalMember2020-02-290000830524us-gaap:AccumulatedTranslationAdjustmentMember2020-02-290000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-02-290000830524us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-02-290000830524us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-02-290000830524us-gaap:RetainedEarningsMember2019-11-300000830524us-gaap:AdditionalPaidInCapitalMember2019-11-300000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-11-3000008305242019-11-300000830524us-gaap:RetainedEarningsMember2019-08-310000830524us-gaap:AdditionalPaidInCapitalMember2019-08-310000830524us-gaap:AccumulatedTranslationAdjustmentMember2019-08-310000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-08-310000830524us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-08-310000830524us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-08-310000830524us-gaap:CommonStockMember2020-12-012021-02-280000830524us-gaap:CommonStockMember2021-02-280000830524us-gaap:CommonStockMember2020-11-300000830524us-gaap:CommonStockMember2020-08-310000830524us-gaap:CommonStockMember2020-02-290000830524us-gaap:CommonStockMember2019-11-300000830524us-gaap:CommonStockMember2019-08-310000830524srt:ManagementMemberccf:LongTermIncentivePlan2020Memberccf:August312022VestingDateMember2019-09-010000830524ccf:NewExecutiveMember2021-02-012021-02-280000830524srt:ManagementMemberus-gaap:EmployeeStockOptionMemberccf:LongTermIncentivePlan2021Member2020-09-010000830524ccf:NewExecutiveMemberus-gaap:EmployeeStockOptionMember2021-02-012021-02-280000830524ccf:NewExecutiveMemberccf:TimeBasedRestrictedStockMember2021-02-012021-02-280000830524ccf:NewExecutiveMemberccf:PerformanceAndServiceBasedRestrictedStockMember2021-02-012021-02-280000830524ccf:NonEmployeeMembersOfBoardOfDirectorsMemberus-gaap:RestrictedStockMember2020-12-012020-12-310000830524srt:ManagementMemberccf:TimeBasedRestrictedStockMemberccf:LongTermIncentivePlan2021Memberccf:August312023VestingDateMember2020-09-012020-09-010000830524srt:ManagementMemberccf:PerformanceAndServiceBasedRestrictedStockMemberccf:LongTermIncentivePlan2021Memberccf:August312023VestingDateMember2020-09-012020-09-010000830524srt:ManagementMemberus-gaap:EmployeeStockOptionMemberccf:LongTermIncentivePlan2020Memberccf:August312022VestingDateMember2019-09-012019-09-010000830524srt:ManagementMemberccf:PerformanceAndServiceBasedRestrictedStockMemberccf:LongTermIncentivePlan2020Memberccf:August312022VestingDateMember2019-09-012019-09-010000830524srt:ExecutiveOfficerMemberus-gaap:EmployeeStockOptionMemberccf:EquityRetentionAgreementMemberccf:August312022VestingDateMember2019-09-012019-09-010000830524srt:ExecutiveOfficerMemberccf:TimeBasedRestrictedStockMemberccf:EquityRetentionAgreementMemberccf:August312022VestingDateMember2019-09-012019-09-010000830524ccf:RetiredExecutiveOfficerMemberus-gaap:RestrictedStockMember2021-01-012021-01-310000830524ccf:RetiredExecutiveOfficerMemberus-gaap:EmployeeStockOptionMember2021-01-012021-01-310000830524us-gaap:RestrictedStockMemberccf:LongTermIncentivePlan2020Member2020-09-012021-02-280000830524ccf:NonExecutiveOfficerEmployeesMemberus-gaap:RestrictedStockMember2020-09-012020-11-300000830524ccf:NonEmployeeMembersOfBoardOfDirectorsMemberus-gaap:RestrictedStockMember2021-02-012021-02-280000830524ccf:ConsultantMemberus-gaap:RestrictedStockMember2021-02-012021-02-280000830524srt:ManagementMemberccf:LongTermIncentivePlan2020Memberccf:August312022VestingDateMember2019-09-012019-09-010000830524srt:NorthAmericaMemberccf:IndustrialTapesMember2020-12-012021-02-280000830524srt:NorthAmericaMemberccf:CorrosionProtectionAndWaterproofingMember2020-12-012021-02-280000830524srt:NorthAmericaMemberccf:AdhesivesSealantsAndAdditivesMember2020-12-012021-02-280000830524srt:EuropeMemberccf:IndustrialTapesMember2020-12-012021-02-280000830524srt:EuropeMemberccf:CorrosionProtectionAndWaterproofingMember2020-12-012021-02-280000830524srt:EuropeMemberccf:AdhesivesSealantsAndAdditivesMember2020-12-012021-02-280000830524srt:AsiaMemberccf:IndustrialTapesMember2020-12-012021-02-280000830524srt:AsiaMemberccf:CorrosionProtectionAndWaterproofingMember2020-12-012021-02-280000830524srt:AsiaMemberccf:AdhesivesSealantsAndAdditivesMember2020-12-012021-02-280000830524ccf:OtherCountriesMemberccf:IndustrialTapesMember2020-12-012021-02-280000830524ccf:OtherCountriesMemberccf:CorrosionProtectionAndWaterproofingMember2020-12-012021-02-280000830524ccf:OtherCountriesMemberccf:AdhesivesSealantsAndAdditivesMember2020-12-012021-02-280000830524us-gaap:RoyaltyMember2020-12-012021-02-280000830524us-gaap:ProductMember2020-12-012021-02-280000830524srt:NorthAmericaMember2020-12-012021-02-280000830524srt:EuropeMember2020-12-012021-02-280000830524srt:AsiaMember2020-12-012021-02-280000830524country:US2020-12-012021-02-280000830524country:GB2020-12-012021-02-280000830524ccf:OtherCountriesMember2020-12-012021-02-280000830524ccf:IndustrialTapesMember2020-12-012021-02-280000830524ccf:CorrosionProtectionAndWaterproofingMember2020-12-012021-02-280000830524ccf:AllOtherForeignMember2020-12-012021-02-280000830524ccf:AdhesivesSealantsAndAdditivesMember2020-12-012021-02-280000830524srt:NorthAmericaMemberccf:IndustrialTapesMember2020-09-012021-02-280000830524srt:NorthAmericaMemberccf:CorrosionProtectionAndWaterproofingMember2020-09-012021-02-280000830524srt:NorthAmericaMemberccf:AdhesivesSealantsAndAdditivesMember2020-09-012021-02-280000830524srt:EuropeMemberccf:IndustrialTapesMember2020-09-012021-02-280000830524srt:EuropeMemberccf:CorrosionProtectionAndWaterproofingMember2020-09-012021-02-280000830524srt:EuropeMemberccf:AdhesivesSealantsAndAdditivesMember2020-09-012021-02-280000830524srt:AsiaMemberccf:IndustrialTapesMember2020-09-012021-02-280000830524srt:AsiaMemberccf:CorrosionProtectionAndWaterproofingMember2020-09-012021-02-280000830524srt:AsiaMemberccf:AdhesivesSealantsAndAdditivesMember2020-09-012021-02-280000830524ccf:OtherCountriesMemberccf:IndustrialTapesMember2020-09-012021-02-280000830524ccf:OtherCountriesMemberccf:CorrosionProtectionAndWaterproofingMember2020-09-012021-02-280000830524ccf:OtherCountriesMemberccf:AdhesivesSealantsAndAdditivesMember2020-09-012021-02-280000830524us-gaap:RoyaltyMember2020-09-012021-02-280000830524us-gaap:ProductMember2020-09-012021-02-280000830524srt:NorthAmericaMember2020-09-012021-02-280000830524srt:EuropeMember2020-09-012021-02-280000830524srt:AsiaMember2020-09-012021-02-280000830524country:US2020-09-012021-02-280000830524country:GB2020-09-012021-02-280000830524ccf:OtherCountriesMember2020-09-012021-02-280000830524ccf:IndustrialTapesMember2020-09-012021-02-280000830524ccf:CorrosionProtectionAndWaterproofingMember2020-09-012021-02-280000830524ccf:AllOtherForeignMember2020-09-012021-02-280000830524ccf:AdhesivesSealantsAndAdditivesMember2020-09-012021-02-280000830524srt:NorthAmericaMemberccf:IndustrialTapesMember2019-12-012020-02-290000830524srt:NorthAmericaMemberccf:CorrosionProtectionAndWaterproofingMember2019-12-012020-02-290000830524srt:NorthAmericaMemberccf:AdhesivesSealantsAndAdditivesMember2019-12-012020-02-290000830524srt:EuropeMemberccf:IndustrialTapesMember2019-12-012020-02-290000830524srt:EuropeMemberccf:CorrosionProtectionAndWaterproofingMember2019-12-012020-02-290000830524srt:EuropeMemberccf:AdhesivesSealantsAndAdditivesMember2019-12-012020-02-290000830524srt:AsiaMemberccf:IndustrialTapesMember2019-12-012020-02-290000830524srt:AsiaMemberccf:CorrosionProtectionAndWaterproofingMember2019-12-012020-02-290000830524srt:AsiaMemberccf:AdhesivesSealantsAndAdditivesMember2019-12-012020-02-290000830524ccf:OtherCountriesMemberccf:IndustrialTapesMember2019-12-012020-02-290000830524ccf:OtherCountriesMemberccf:CorrosionProtectionAndWaterproofingMember2019-12-012020-02-290000830524ccf:OtherCountriesMemberccf:AdhesivesSealantsAndAdditivesMember2019-12-012020-02-290000830524us-gaap:RoyaltyMember2019-12-012020-02-290000830524us-gaap:ProductMember2019-12-012020-02-290000830524srt:NorthAmericaMember2019-12-012020-02-290000830524srt:EuropeMember2019-12-012020-02-290000830524srt:AsiaMember2019-12-012020-02-290000830524country:US2019-12-012020-02-290000830524country:GB2019-12-012020-02-290000830524ccf:OtherCountriesMember2019-12-012020-02-290000830524ccf:IndustrialTapesMember2019-12-012020-02-290000830524ccf:CorrosionProtectionAndWaterproofingMember2019-12-012020-02-290000830524ccf:AllOtherForeignMember2019-12-012020-02-290000830524ccf:AdhesivesSealantsAndAdditivesMember2019-12-012020-02-290000830524srt:NorthAmericaMemberccf:IndustrialTapesMember2019-09-012020-02-290000830524srt:NorthAmericaMemberccf:CorrosionProtectionAndWaterproofingMember2019-09-012020-02-290000830524srt:NorthAmericaMemberccf:AdhesivesSealantsAndAdditivesMember2019-09-012020-02-290000830524srt:EuropeMemberccf:IndustrialTapesMember2019-09-012020-02-290000830524srt:EuropeMemberccf:CorrosionProtectionAndWaterproofingMember2019-09-012020-02-290000830524srt:EuropeMemberccf:AdhesivesSealantsAndAdditivesMember2019-09-012020-02-290000830524srt:AsiaMemberccf:IndustrialTapesMember2019-09-012020-02-290000830524srt:AsiaMemberccf:CorrosionProtectionAndWaterproofingMember2019-09-012020-02-290000830524srt:AsiaMemberccf:AdhesivesSealantsAndAdditivesMember2019-09-012020-02-290000830524ccf:OtherCountriesMemberccf:IndustrialTapesMember2019-09-012020-02-290000830524ccf:OtherCountriesMemberccf:CorrosionProtectionAndWaterproofingMember2019-09-012020-02-290000830524ccf:OtherCountriesMemberccf:AdhesivesSealantsAndAdditivesMember2019-09-012020-02-290000830524us-gaap:RoyaltyMember2019-09-012020-02-290000830524us-gaap:ProductMember2019-09-012020-02-290000830524srt:NorthAmericaMember2019-09-012020-02-290000830524srt:EuropeMember2019-09-012020-02-290000830524srt:AsiaMember2019-09-012020-02-290000830524country:US2019-09-012020-02-290000830524country:GB2019-09-012020-02-290000830524ccf:OtherCountriesMember2019-09-012020-02-290000830524ccf:IndustrialTapesMember2019-09-012020-02-290000830524ccf:CorrosionProtectionAndWaterproofingMember2019-09-012020-02-290000830524ccf:AllOtherForeignMember2019-09-012020-02-290000830524ccf:AdhesivesSealantsAndAdditivesMember2019-09-012020-02-290000830524us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-02-280000830524us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-02-280000830524us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-310000830524us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-08-310000830524us-gaap:FairValueMeasurementsRecurringMember2020-08-310000830524us-gaap:RetainedEarningsMember2020-12-012021-02-280000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-12-012021-02-280000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2020-09-012021-02-280000830524us-gaap:RetainedEarningsMember2019-12-012020-02-290000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-12-012020-02-290000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-09-012020-02-290000830524ccf:AbchimeMember2020-09-012020-09-010000830524us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-012021-02-280000830524us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-09-012020-02-290000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-012021-02-280000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-012021-02-280000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-012020-02-290000830524us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-012020-02-290000830524us-gaap:AccumulatedTranslationAdjustmentMember2020-09-012021-02-280000830524us-gaap:AccumulatedTranslationAdjustmentMember2019-09-012020-02-290000830524country:US2021-02-280000830524country:GB2021-02-280000830524ccf:AllOtherForeignMember2021-02-280000830524country:US2020-08-310000830524country:GB2020-08-310000830524ccf:AllOtherForeignMember2020-08-310000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-012021-02-280000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-012021-02-280000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-09-012021-02-280000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-012021-02-280000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-12-012020-02-290000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-012020-02-290000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-09-012020-02-290000830524us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-09-012020-02-290000830524us-gaap:OperatingSegmentsMember2020-12-012021-02-280000830524us-gaap:CorporateNonSegmentMember2020-12-012021-02-280000830524us-gaap:OperatingSegmentsMember2020-09-012021-02-280000830524us-gaap:CorporateNonSegmentMember2020-09-012021-02-280000830524us-gaap:OperatingSegmentsMember2019-12-012020-02-290000830524us-gaap:CorporateNonSegmentMember2019-12-012020-02-290000830524us-gaap:OperatingSegmentsMember2019-09-012020-02-290000830524us-gaap:CorporateNonSegmentMember2019-09-012020-02-290000830524ccf:CorrosionProtectionAndWaterproofingMember2020-09-012021-02-280000830524ccf:AdhesivesSealantsAndAdditivesMember2020-09-012021-02-280000830524ccf:EmergingTechnologiesMemberccf:AdhesivesSealantsAndAdditivesMember2020-09-012021-02-280000830524ccf:AbchimeMemberccf:AdhesivesSealantsAndAdditivesMember2020-09-012021-02-280000830524ccf:EmergingTechnologiesMember2020-09-012021-02-280000830524ccf:IndustrialTapesMember2021-02-280000830524ccf:CorrosionProtectionAndWaterproofingMember2021-02-280000830524ccf:AdhesivesSealantsAndAdditivesMember2021-02-280000830524ccf:EmergingTechnologiesMember2021-02-050000830524ccf:IndustrialTapesMember2020-08-310000830524ccf:CorrosionProtectionAndWaterproofingMember2020-08-310000830524ccf:AdhesivesSealantsAndAdditivesMember2020-08-310000830524us-gaap:OtherOperatingIncomeExpenseMember2020-12-012021-02-280000830524us-gaap:OtherOperatingIncomeExpenseMember2020-09-012021-02-280000830524us-gaap:OtherOperatingIncomeExpenseMember2019-12-012020-02-290000830524us-gaap:OtherOperatingIncomeExpenseMember2019-09-012020-02-290000830524us-gaap:TradeNamesMember2021-02-280000830524ccf:PatentsAndAgreementsMember2021-02-280000830524ccf:FormulasAndTechnologyMember2021-02-280000830524ccf:CustomerListsAndRelationshipsMember2021-02-280000830524us-gaap:TradeNamesMember2020-08-310000830524ccf:PatentsAndAgreementsMember2020-08-310000830524ccf:FormulasAndTechnologyMember2020-08-310000830524ccf:CustomerListsAndRelationshipsMember2020-08-310000830524us-gaap:RetainedEarningsMember2020-09-012021-02-280000830524us-gaap:RetainedEarningsMember2019-09-012020-02-290000830524us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-012021-02-280000830524us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-012021-02-280000830524us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-012020-02-290000830524us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-09-012020-02-290000830524srt:MinimumMemberccf:NewCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-09-012021-02-280000830524srt:MaximumMemberccf:NewCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-09-012021-02-2800008305242020-02-2900008305242019-08-310000830524ccf:NewarkMemberccf:AdhesivesSealantsAndAdditivesMember2020-12-012021-02-280000830524ccf:NewarkMember2020-12-012021-02-280000830524ccf:NewarkMember2020-09-012021-02-280000830524ccf:GraniteFallsMember2020-09-012021-02-280000830524ccf:GraniteFallsMember2019-12-012020-02-290000830524us-gaap:OperatingSegmentsMemberccf:GraniteFallsMemberccf:IndustrialTapesMember2019-09-012020-02-290000830524ccf:GraniteFallsMember2019-09-012020-02-290000830524us-gaap:OperatingSegmentsMemberccf:GraniteFallsMemberccf:IndustrialTapesMember2019-09-012019-11-300000830524ccf:GraniteFallsMember2019-03-012019-08-310000830524us-gaap:CorporateNonSegmentMemberccf:EngineeringStudiesForFacilityConsolidationAndRationalizationInitiativeMember2019-09-012020-02-290000830524ccf:EngineeringStudiesForFacilityConsolidationAndRationalizationInitiativeMember2019-09-012019-11-300000830524us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-02-280000830524us-gaap:FairValueMeasurementsRecurringMember2021-02-280000830524ccf:AbchimeMember2021-02-280000830524us-gaap:CorporateNonSegmentMemberccf:EmergingTechnologiesMember2021-02-012021-02-280000830524us-gaap:CorporateNonSegmentMemberccf:AbchimeMember2019-12-012020-02-290000830524us-gaap:CorporateNonSegmentMemberccf:AbchimeMember2019-09-012020-02-290000830524us-gaap:OperatingSegmentsMember2021-02-280000830524us-gaap:CorporateNonSegmentMember2021-02-280000830524ccf:IndustrialTapesMember2021-02-280000830524ccf:CorrosionProtectionAndWaterproofingMember2021-02-280000830524ccf:AdhesivesSealantsAndAdditivesMember2021-02-280000830524us-gaap:OperatingSegmentsMember2020-08-310000830524us-gaap:CorporateNonSegmentMember2020-08-310000830524ccf:IndustrialTapesMember2020-08-310000830524ccf:CorrosionProtectionAndWaterproofingMember2020-08-310000830524ccf:AdhesivesSealantsAndAdditivesMember2020-08-310000830524us-gaap:AdditionalPaidInCapitalMember2019-12-012020-02-290000830524us-gaap:AdditionalPaidInCapitalMember2020-12-012021-02-280000830524us-gaap:OperatingSegmentsMemberccf:IndustrialTapesMember2020-12-012021-02-280000830524us-gaap:OperatingSegmentsMemberccf:CorrosionProtectionAndWaterproofingMember2020-12-012021-02-280000830524us-gaap:OperatingSegmentsMemberccf:AdhesivesSealantsAndAdditivesMember2020-12-012021-02-280000830524us-gaap:OperatingSegmentsMemberccf:IndustrialTapesMember2020-09-012021-02-280000830524us-gaap:OperatingSegmentsMemberccf:CorrosionProtectionAndWaterproofingMember2020-09-012021-02-280000830524us-gaap:OperatingSegmentsMemberccf:AdhesivesSealantsAndAdditivesMember2020-09-012021-02-280000830524us-gaap:OperatingSegmentsMemberccf:IndustrialTapesMember2019-12-012020-02-290000830524us-gaap:OperatingSegmentsMemberccf:CorrosionProtectionAndWaterproofingMember2019-12-012020-02-290000830524us-gaap:OperatingSegmentsMemberccf:AdhesivesSealantsAndAdditivesMember2019-12-012020-02-290000830524us-gaap:OperatingSegmentsMemberccf:IndustrialTapesMember2019-09-012020-02-290000830524us-gaap:OperatingSegmentsMemberccf:CorrosionProtectionAndWaterproofingMember2019-09-012020-02-290000830524us-gaap:OperatingSegmentsMemberccf:AdhesivesSealantsAndAdditivesMember2019-09-012020-02-290000830524ccf:EmergingTechnologiesMember2020-12-012021-02-280000830524ccf:AbchimeMember2019-12-012020-02-290000830524ccf:AbchimeMember2019-09-012020-08-3100008305242020-08-3100008305242021-03-310000830524ccf:NewCreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-09-012021-02-280000830524us-gaap:AdditionalPaidInCapitalMember2020-09-012021-02-280000830524us-gaap:AdditionalPaidInCapitalMember2019-09-012020-02-290000830524us-gaap:CommonStockMember2020-09-012021-02-280000830524us-gaap:CommonStockMember2019-09-012020-02-290000830524srt:ManagementMemberus-gaap:EmployeeStockOptionMemberccf:LongTermIncentivePlan2021Member2020-09-012020-09-010000830524ccf:NewCreditAgreementMember2020-09-012021-02-280000830524us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-09-012021-02-280000830524us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-09-012020-02-2900008305242019-12-012020-02-2900008305242019-09-012020-02-290000830524ccf:NewCreditAgreementMember2016-12-1500008305242021-02-280000830524us-gaap:TradeNamesMember2020-09-012021-02-280000830524ccf:PatentsAndAgreementsMember2020-09-012021-02-280000830524ccf:FormulasAndTechnologyMember2020-09-012021-02-280000830524ccf:CustomerListsAndRelationshipsMember2020-09-012021-02-280000830524us-gaap:TradeNamesMember2019-09-012020-08-310000830524ccf:PatentsAndAgreementsMember2019-09-012020-08-310000830524ccf:FormulasAndTechnologyMember2019-09-012020-08-310000830524ccf:CustomerListsAndRelationshipsMember2019-09-012020-08-310000830524srt:MaximumMemberccf:NewCreditAgreementMember2016-12-152016-12-150000830524srt:MinimumMemberccf:NewCreditAgreementMember2016-12-152016-12-150000830524ccf:NewCreditAgreementMember2021-02-280000830524ccf:EmergingTechnologiesMember2021-02-052021-02-050000830524ccf:AbchimeMember2020-09-010000830524ccf:AbchimeMember2020-12-012021-02-2800008305242020-12-012021-02-280000830524ccf:AbchimeMember2020-09-012021-02-2800008305242020-09-012021-02-280000830524ccf:AbchimeMemberccf:AdhesivesSealantsAndAdditivesMember2020-09-012020-09-30iso4217:USDiso4217:EURxbrli:purexbrli:sharesccf:itemiso4217:USDxbrli:sharesccf:segment

It

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended February 28, 2021

Commission File Number: 1-9852

CHASE CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts

11-1797126

(State or other jurisdiction of incorporation
of organization)

(I.R.S. Employer Identification No.)

295 University Avenue, Westwood, Massachusetts 02090

(Address of Principal Executive Offices) (Zip Code)

(781) 332-0700

(Registrant’s Telephone Number, Including Area Code)

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

 

Title of each class

Common stock, $.10 par value

Trading Symbol(s)

CCF

Name of each exchange on which registered

NYSE American

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, 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 definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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 checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES   NO 

The number of shares of Common Stock outstanding as of March 31, 2021 was 9,448,371.

Table of Contents

CHASE CORPORATION

INDEX TO FORM 10-Q

For the Quarter Ended February 28, 2021

Ca

Cautionary Note Concerning Forward-Looking Statements

3

Part I - FINANCIAL INFORMATION

Item 1 – Unaudited Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets as of February 28, 2021 (unaudited) and August 31, 2020

4

Condensed Consolidated Statements of Operations for the three and six months ended February 28, 2021 and February 29, 2020 (unaudited)

5

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended February 28, 2021 and February 29, 2020 (unaudited)

6

Condensed Consolidated Statements of Equity for the three and six months ended February 28, 2021 and February 29, 2020 (unaudited)

7

Condensed Consolidated Statements of Cash Flows for the six months ended February 28, 2021 and February 29, 2020 (unaudited)

9

Notes to Unaudited Condensed Consolidated Financial Statements

10

Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

32

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

43

Item 4 – Controls and Procedures

44

Part II – OTHER INFORMATION

Item 1 – Legal Proceedings

45

Item 1A – Risk Factors

45

Item 6 – Exhibits

45

SIGNATURES

46

2

Table of Contents

Cautionary Note Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, including without limitation forward-looking statements made under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” involve risks and uncertainties. Any statements contained in this Quarterly Report that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements as to Chase Corporation’s future operating results; seasonality expectations; plans for the development, utilization or disposal of manufacturing facilities; future economic conditions; its expectations as to legal proceedings; the effect of its market and product development efforts; expectations relating to the renewal of its credit facility; and expectations or plans relating to the implementation or realization of its strategic goals and future growth, including through potential future acquisitions and divestitures. Forward-looking statements may also include, among other things, statements relating to future sales, earnings, cash flow, results of operations, use of cash and other measures of financial performance, statements relating to future dividend payments, as well as the expected impact of the coronavirus disease 2019 (COVID-19) pandemic on the Company's businesses. Forward-looking statements may be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “predicts,” “targets,” “forecasts,” “strategy,” and other words of similar meaning in connection with the discussion of future operating or financial performance. These statements are based on current expectations, estimates and projections about the industries in which the Company operates, and the beliefs and assumptions made by management. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Accordingly, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Readers should refer to the discussions under “Risk Factors” contained in our Annual Report on Form 10-K for the fiscal year ended August 31, 2020 concerning certain factors that could cause our actual results to differ materially from the results anticipated in such forward-looking statements. These Risk Factors are hereby incorporated by reference into this Quarterly Report.

3

Table of Contents

Item 1 — Unaudited Condensed Consolidated Financial Statements

CHASE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

In thousands, except share and per share amounts

February 28, 

August 31, 

 

2021

    

2020

 

ASSETS

Current Assets

Cash and cash equivalents

$

86,229

$

99,068

Accounts receivable, less allowance for doubtful accounts and credit losses of $448 and $438

43,146

36,993

Inventory

37,034

39,058

Prepaid expenses and other current assets

3,792

2,470

Prepaid income taxes

1,828

231

Total current assets

172,029

177,820

Property, plant and equipment, less accumulated depreciation of $53,366 and $52,283

25,072

25,574

Other Assets

Goodwill

98,244

82,402

Intangible assets, less accumulated amortization of $84,994 and $78,351

53,880

41,200

Cash surrender value of life insurance

4,450

4,450

Restricted investments

1,817

1,619

Deferred income taxes

4,902

4,929

Operating lease right-of-use asset (Note 8)

8,307

8,821

Other assets

317

15

Total assets

$

369,018

$

346,830

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable

$

15,294

$

12,525

Accrued payroll and other compensation

4,794

5,751

Accrued expenses

3,762

4,867

Total current liabilities

23,850

23,143

Operating lease long-term liabilities (Note 8)

6,122

6,395

Deferred compensation

1,825

1,629

Accumulated pension obligation

10,304

10,930

Other liabilities

2,666

Deferred income taxes

3,418

Accrued income taxes

2,289

1,941

Commitments and contingencies (Note 10)

Equity

First Serial Preferred Stock, $1.00 par value: Authorized 100,000 shares; none issued

Common stock, $.10 par value: Authorized 20,000,000 shares; 9,448,371 shares at February 28, 2021 and 9,439,082 shares at August 31, 2020 issued and outstanding

946

944

Additional paid-in capital

17,721

16,674

Accumulated other comprehensive loss

(10,840)

(13,092)

Retained earnings

310,717

298,266

Total equity

318,544

302,792

Total liabilities and equity

$

369,018

$

346,830

See accompanying notes to the condensed consolidated financial statements

4

Table of Contents

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

In thousands, except share and per share amounts

Three Months Ended

Six Months Ended

    

February 28, 2021

    

February 29, 2020

 

February 28, 2021

    

February 29, 2020

 

Revenue

Sales

$

67,575

$

64,626

$

133,711

$

130,383

Royalties and commissions

872

956

1,912

2,001

68,447

65,582

135,623

132,384

Costs and Expenses

Cost of products and services sold

40,915

40,666

80,520

82,449

Selling, general and administrative expenses

12,331

12,608

24,591

25,230

Research and product development costs

1,026

1,069

2,077

2,087

Operations optimization costs (Note 15)

98

60

98

709

Acquisition-related costs (Note 17)

128

133

128

133

Loss (gain) on contingent consideration

733

733

Operating income

13,216

11,046

27,476

21,776

Interest expense

(67)

(56)

(136)

(111)

Other income (expense)

(284)

(185)

(498)

(789)

Income before income taxes

12,865

10,805

26,842

20,876

Income taxes (Note 14)

3,694

2,926

6,834

5,635

Net income

$

9,171

$

7,879

$

20,008

$

15,241

Net income available to common shareholders, per common and common equivalent share (Note 4)

Basic

$

0.97

$

0.83

$

2.12

$

1.62

Diluted

$

0.97

$

0.83

$

2.11

$

1.60

Weighted average shares outstanding

Basic

9,381,666

9,355,821

9,378,743

9,353,985

Diluted

9,426,626

9,444,211

9,422,651

9,439,215

Annual cash dividends declared per share

$

0.80

$

0.80

See accompanying notes to the condensed consolidated financial statements

5

Table of Contents

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

In thousands, except share and per share amounts

Three Months Ended

Six Months Ended

    

February 28, 2021

    

February 29, 2020

 

February 28, 2021

February 29, 2020

 

Net income

$

9,171

$

7,879

$

20,008

$

15,241

Other comprehensive income (loss):

Net unrealized gain (loss) on restricted investments, net of tax

48

(43)

118

(2)

Change in funded status of pension plans, net of tax

125

128

247

259

Foreign currency translation adjustment

1,796

(142)

1,887

1,395

Total other comprehensive income (loss)

1,969

(57)

2,252

1,652

Comprehensive income

$

11,140

$

7,822

$

22,260

$

16,893

See accompanying notes to the condensed consolidated financial statements

6

Table of Contents

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

THREE MONTHS ENDED FEBRUARY 28, 2021 AND FEBRUARY 29, 2020

(UNAUDITED)

 

In thousands, except share and per share amounts

Additional

Accumulated Other

Total

Common Stock

Paid-In

Comprehensive

Retained

Stockholders'

    

Shares

    

Amount

    

Capital

    

Income (Loss)

    

Earnings

    

Equity

Balance at November 30, 2019

9,423,946

$

942

$

15,063

$

(14,003)

$

271,471

$

273,473

Restricted stock grants, net of forfeitures

24,674

3

(3)

Amortization of restricted stock grants

594

594

Amortization of stock option grants

228

228

Change in funded status of pension plans, net of tax $47

128

128

Foreign currency translation adjustment

(142)

(142)

Net unrealized gain (loss) on restricted investments, net of tax ($15)

(43)

(43)

Net income

7,879

7,879

Balance at February 29, 2020

9,448,620

$

945

$

15,882

$

(14,060)

$

279,350

$

282,117

Balance at November 30, 2020

9,446,281

$

945

$

17,264

$

(12,809)

$

301,546

$

306,946

Restricted stock grants, net of forfeitures

3,314

1

(1)

Amortization of restricted stock grants

620

620

Amortization of stock option grants

(23)

(23)

Common stock retained to pay statutory minimum withholding taxes on common stock

(1,224)

(139)

(139)

Change in funded status of pension plans, net of tax $40

125

125

Foreign currency translation adjustment

1,796

1,796

Net unrealized gain (loss) on restricted investments, net of tax $15

48

48

Net income

9,171

9,171

Balance at February 28, 2021

9,448,371

$

946

$

17,721

$

(10,840)

$

310,717

$

318,544

See accompanying notes to the condensed consolidated financial statements

7

Table of Contents

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

SIX MONTHS ENDED FEBRUARY 28, 2021 AND FEBRUARY 29, 2020

(UNAUDITED)

 

In thousands, except share and per share amounts

Additional

Accumulated Other

Total

Common Stock

Paid-In

Comprehensive

Retained

Stockholders'

    

Shares

    

Amount

    

Capital

    

Income (Loss)

    

Earnings

    

Equity

Balance at August 31, 2019

9,400,748

$

940

$

14,351

$

(14,324)

$

270,260

$

271,227

Restricted stock grants, net of forfeitures

45,311

5

(5)

Amortization of restricted stock grants

1,080

1,080

Amortization of stock option grants

456

456

Exercise of stock options

3,618

123

123

Common stock received for payment of stock option exercises

(1,057)

(123)

(123)

Cash dividend on common stock, $0.80 per share

(7,539)

(7,539)

Change in funded status of pension plans, net of tax $91

259

259

Foreign currency translation adjustment

1,395

1,395

Net unrealized gain (loss) on restricted investments, net of tax ($1)

(2)

(2)

Adoption of ASU 2018-02

(1,388)

1,388

Net income

15,241

15,241

Balance at February 29, 2020

9,448,620

$

945

$

15,882

$

(14,060)

$

279,350

$

282,117

Balance at August 31, 2020

9,439,082

$

944

$

16,674

$

(13,092)

$

298,266

$

302,792

Restricted stock grants, net of forfeitures

10,693

2

(2)

Amortization of restricted stock grants

1,190

1,190

Amortization of stock option grants

225

225

Exercise of stock options

2,532

40

40

Common stock received for payment of stock option exercises

(386)

(40)

(40)

Common stock retained to pay statutory minimum withholding taxes on common stock

(3,550)

(366)

(366)

Cash dividend on common stock, $0.80 per share

(7,557)

(7,557)

Change in funded status of pension plans, net of tax $83

247

247

Foreign currency translation adjustment

1,887

1,887

Net unrealized gain (loss) on restricted investments, net of tax $39

118

118

Net income

20,008

20,008

Balance at February 28, 2021

9,448,371

$

946

$

17,721

$

(10,840)

$

310,717

$

318,544

See accompanying notes to the condensed consolidated financial statements

8

Table of Contents

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

In thousands

Six Months Ended

    

February 28, 2021

February 29, 2020

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

20,008

$

15,241

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation

1,952

2,041

Amortization

6,190

5,826

Provision for allowance for doubtful accounts and credit losses

7

81

Stock-based compensation

1,415

1,536

Realized gain on restricted investments

(49)

(28)

Increase (decrease) from changes in assets and liabilities

Accounts receivable

(4,712)

1,169

Inventory

3,344

3,338

Prepaid expenses and other assets

(913)

(356)

Accounts payable

1,862

2,425

Accrued compensation and other expenses

(1,470)

(3,375)

Accrued income taxes

(1,248)

(437)

Net cash provided by operating activities

26,386

27,461

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, plant and equipment

(1,060)

(827)

Payments for acquisitions

(31,238)

Changes in restricted investments

10

(40)

Net cash used in investing activities

(32,288)

(867)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid

(7,557)

(7,539)

Payments of taxes on stock options and restricted stock

(366)

Net cash used in financing activities

(7,923)

(7,539)

(DECREASE) INCREASE IN CASH & CASH EQUIVALENTS

(13,825)

19,055

Effect of foreign exchange rates on cash

986

838

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

99,068