Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
May 26, 2018 | Jun. 21, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | BASSETT FURNITURE INDUSTRIES INC | |
Entity Central Index Key | 10,329 | |
Trading Symbol | bset | |
Current Fiscal Year End Date | --11-24 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 10,735,929 | |
Document Type | 10-Q | |
Document Period End Date | May 26, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Retained Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | |
Sales revenue: | ||||
Sales revenues | $ 116,980 | $ 114,125 | $ 227,252 | $ 220,017 |
Cost of furniture and accessories sold | 45,660 | 44,981 | 88,929 | 86,879 |
Selling, general and administrative expenses excluding new store pre-opening costs | 65,456 | 61,075 | 129,707 | 119,599 |
New store pre-opening costs | 201 | 469 | 903 | 1,275 |
Income from operations | 5,663 | 7,600 | 7,713 | 12,264 |
Gain on sale of investment | 3,267 | 3,267 | ||
Impairment of investment in real estate | (1,084) | (1,084) | ||
Other loss, net | (233) | (678) | (860) | (1,411) |
Income before income taxes | 5,430 | 9,105 | 6,853 | 13,036 |
Income tax expense | 1,141 | 3,263 | 3,477 | 4,333 |
Net income | 4,289 | 5,842 | 3,376 | 8,703 |
Retained earnings-beginning of period | 137,827 | 131,178 | 139,378 | 129,388 |
Reclassification of certain tax effects from accumulated other comprehensive loss | 545 | |||
Cash dividends | (1,182) | (1,073) | (2,365) | (2,144) |
Retained earnings-end of period | $ 140,934 | $ 135,947 | $ 140,934 | $ 135,947 |
Basic earnings per share (in dollars per share) | $ 0.40 | $ 0.55 | $ 0.32 | $ 0.82 |
Diluted earnings per share (in dollars per share) | 0.40 | 0.54 | 0.31 | 0.81 |
Dividends per share (in dollars per share) | $ 0.11 | $ 0.10 | $ 0.22 | $ 0.20 |
Furniture and Accessories [Member] | ||||
Sales revenue: | ||||
Sales revenues | $ 102,675 | $ 100,294 | $ 198,798 | $ 193,992 |
Logistical Services [Member] | ||||
Sales revenue: | ||||
Sales revenues | $ 14,305 | $ 13,831 | $ 28,454 | $ 26,025 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | |
Net income | $ 4,289 | $ 5,842 | $ 3,376 | $ 8,703 |
Other comprehensive income: | ||||
Other comprehensive income, net of tax | 80 | (500) | 160 | (442) |
Total comprehensive income | 4,369 | 5,342 | 3,536 | 8,261 |
Pension Plan [Member] | ||||
Other comprehensive income: | ||||
Recognize prior service cost associated with Long Term Cash Awards (LTCA) | (932) | (932) | ||
Amortization associated with Long Term Cash Awards (LTCA) | 31 | 24 | 62 | 24 |
Income taxes related to LTCA | (8) | 350 | (16) | 350 |
Supplemental Employee Retirement Plan [Member] | ||||
Other comprehensive income: | ||||
Amortization associated with Long Term Cash Awards (LTCA) | 76 | 94 | 152 | 187 |
Income taxes related to LTCA | $ (19) | $ (36) | $ (38) | $ (71) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Current assets | ||
Cash and cash equivalents | $ 22,549 | $ 53,949 |
Short-term investments | 23,125 | 23,125 |
Accounts receivable, net | 20,619 | 19,640 |
Inventories | 62,086 | 54,476 |
Other current assets | 10,539 | 8,192 |
Total current assets | 138,918 | 159,382 |
Property and equipment, net | 101,658 | 103,244 |
Deferred income taxes | 6,210 | 8,393 |
Goodwill and other intangible assets | 28,616 | 17,351 |
Other | 5,946 | 5,378 |
Total long-term assets | 40,772 | 31,122 |
Total assets | 281,348 | 293,748 |
Current liabilities | ||
Accounts payable | 21,787 | 21,760 |
Accrued compensation and benefits | 13,195 | 14,670 |
Customer deposits | 22,093 | 27,107 |
Dividends payable | 3,759 | |
Current portion of long-term debt | 432 | 3,405 |
Other accrued liabilities | 12,323 | 12,655 |
Total current liabilities | 69,830 | 83,356 |
Long-term liabilities | ||
Post employment benefit obligations | 13,672 | 13,326 |
Notes payable | 109 | 329 |
Other long-term liabilities | 5,641 | 5,277 |
Total long-term liabilities | 19,422 | 18,932 |
Stockholders’ equity | ||
Common stock | 53,736 | 53,690 |
Retained earnings | 140,934 | 139,378 |
Additional paid-in capital | 382 | 962 |
Accumulated other comprehensive loss | (2,956) | (2,570) |
Total stockholders' equity | 192,096 | 191,460 |
Total liabilities and stockholders’ equity | $ 281,348 | $ 293,748 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
May 26, 2018 | May 27, 2017 | |
Operating activities: | ||
Net income | $ 3,376 | $ 8,703 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 6,688 | 6,706 |
Provision for asset impairment charge | 1,084 | |
Gain on sale of property and equipment | (136) | |
Gain on sale of investment | (3,267) | |
Tenant improvement allowance received from lessors | 860 | 715 |
Deferred income taxes | 2,183 | 318 |
Other, net | 794 | 960 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 124 | (904) |
Inventories | (3,689) | (4,535) |
Other current assets | (2,311) | 2,128 |
Customer deposits | (5,014) | (2,532) |
Accounts payable and accrued liabilities | (3,045) | 116 |
Net cash provided by (used in) operating activities | (170) | 9,492 |
Investing activities: | ||
Purchases of property and equipment | (7,662) | (9,172) |
Proceeds from sales of property and equipment | 2,463 | 63 |
Proceeds from sale of investment | 3,592 | |
Other | 223 | |
Net cash used in investing activities | (20,755) | (5,949) |
Financing activities: | ||
Cash dividends | (6,124) | (5,363) |
Proceeds from the exercise of stock options | 27 | 221 |
Other issuance of common stock | 173 | |
Repurchases of common stock | (823) | (82) |
Taxes paid related to net share settlement of equity awards | (522) | (474) |
Repayments of notes payable | (3,206) | (3,191) |
Net cash used in financing activities | (10,475) | (8,889) |
Change in cash and cash equivalents | (31,400) | (5,346) |
Cash and cash equivalents - beginning of period | 53,949 | 35,144 |
Cash and cash equivalents - end of period | 22,549 | 29,798 |
Acquisition of Lane Venture [Member] | ||
Investing activities: | ||
Cash paid for business acquisition | $ (15,556) | |
Bassett Home Furnishings, Columbus, Ohio [Member] | ||
Investing activities: | ||
Cash paid for business acquisition | $ (655) |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1 . Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10 not References to “ASC” included hereinafter refer to the Accounting Standards Codification established by the Financial Accounting Standards Board (“FASB”) as the source of authoritative GAAP. The condensed consolidated financial statements include the accounts of Bassett Furniture Industries, Incorporated (“Bassett”, “we”, “our”, or the “Company”) and our wholly-owned subsidiaries of which we have a controlling interest. In accordance with ASC Topic 810, none Revenue from the sale of furniture and accessories is reported in the accompanying condensed consolidated statements of income net of estimates for returns and allowances. Revenues from logistical services are generated by our wholly-owned subsidiary, Zenith Freight Lines, LLC (“Zenith”). Sales of logistical services from Zenith to our wholesale and retail segments have been eliminated in consolidation, and Zenith’s operating costs and expenses are included in selling, general and administrative expenses in our condensed consolidated statements of income. Lane Venture Acquisition On December 21, 2017, 3, |
Note 2 - Interim Financial Pres
Note 2 - Interim Financial Presentation | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Condensed Financial Statements [Text Block] | 2 . Interim Financial Presentation All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. The results of operations for the three six May 26, 2018 not 10 November 25, 2017. Income Taxes and Impact of the Tax Cuts and Jobs Act We calculate an anticipated effective tax rate for the year based on our annual estimates of pretax income and use that effective tax rate to record our year-to-date income tax provision. Any change in annual projections of pretax income could have a significant impact on our effective tax rate for the respective quarter. On December 22, 2017, 35% 21% January 1, 2018 January 1, 2018. 2018 22.2%. 21% 2019 The federal rate reduction has had a significant impact on our provision for income taxes for the three six May 26, 2018. three six May 26, 2018 21.3% 51.4%, 2018 22.2% $155 $2,032, three six May 26, 2018 $16 $197, $266 second 199: Given the significance of the Act, the SEC staff issued Staff Accounting Bulletin No. 118 118” one 118, SAB 118 not As of May 26, 2018, 118. may 2018 2018 Our effective tax rates for the three six May 27, 2017 35.8% 33.2%, 35% $327 six May 27, 2017 199: Adoption of Accounting Standards Update No. 2018 02 The Act has also had a significant impact on the income tax effect of pension costs included in our accumulated other comprehensive loss at November 25, 2017 2018 02 14, 2018 six May 26, 2018 $545 |
Note 3 - Business Combinations
Note 3 - Business Combinations | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. Business Combination s Acquisition of Lane Venture On December 21, 2017, $15,556 Under the acquisition method of accounting, the fair value of the consideration transferred was allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values as of the acquisition date with the remaining unallocated amount recorded as goodwill. The allocation of the fair value of the acquired business was based on a preliminary valuation. Our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period (up to one not three May 26, 2018, $168 $38, $129. $15,556 Allocation of the fair value of consideration transferred: Identifiable assets acquired: Accounts receivable, net of reserve (Note 5) $ 1,357 Inventory, net of reserve (Note 6) 3,921 Prepaid expenses and other current assets 37 Intangible assets 7,360 Total identifiable assets acquired 12,675 Liabilities assumed: Accounts payable (357 ) Other accrued liabilities (852 ) Total liabilities assumed (1,209 ) Net identifiable assets acquired 11,466 Goodwill 4,090 Total net assets acquired $ 15,556 Goodwill was determined based on the residual difference between the fair value of the consideration transferred and the value assigned to the tangible and intangible assets and liabilities recognized in connection with the acquisition and is deductible for tax purposes. Among the factors that contributed to a purchase price resulting in the recognition of goodwill are the expected synergies arising from combining the Company’s manufacturing and distribution capabilities with Lane Venture’s position in the outdoor furnishings market, a segment of the market not A portion of the fair value of the consideration transferred has been provisionally assigned to identifiable intangible assets as follows: Useful Life Description In Years Fair Value Trade name Indefinite $ 6,848 Customer relationships 9 512 Total acquired intangible assets $ 7,360 The finite-lived intangible asset is being amortized on a straight-line basis over its estimated useful life. The indefinite-lived intangible asset and goodwill are not The fair values of consideration transferred and net assets acquired were determined using a combination of Level 2 3 820, Fair Value Measurements and Disclosures 4. Acquisition costs related to the Lane Venture acquisition totaled $26 $254 three six May 26, 2018, not 2018. The pro forma impact of the acquisition and the results of operations attributable to Lane Venture since the acquisition have not not three six May 26, 2018 May 27, 2017. Retail Store Acquisition During the quarter ended February 25, 2017, $655. no The purchase price was allocated as follows: Inventory $ 343 Goodwill 312 Purchase price $ 655 The inputs into our valuation of the acquired assets reflect our market assumptions and are not 3 820, Fair Value Measurements and Disclosures 4. The pro forma impact of the acquisition and the results of operations for the Columbus store since acquisition were not three six May 27, 2017. |
Note 4 - Financial Instruments
Note 4 - Financial Instruments and Fair Value Measurements | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. Financial Instruments and Fair Value Measurements Financial Instruments Our financial instruments include cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, cost method investments, accounts payable and notes payable/long-term debt. Because of their short maturities, the carrying amounts of cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, and accounts payable approximate fair value. Investments Our short-term investments of $ 23,125 May 26, 2018 November 25, 2017 ten 0.10% 1.89%. May 26, 2018, two 1.40%. May 26, 2018 November 25, 2017 Fair Value Measurement The Company accounts for items measured at fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures 820’s 820 Level 1 Level 2 not Level 3 We believe that the carrying amounts of our current assets and current liabilities approximate fair value due to the short-term nature of these items. The recurring estimate of the fair value of our notes payable for disclosure purposes (see Note 8 3 3 2 3 |
Note 5 - Accounts Receivable
Note 5 - Accounts Receivable | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 5 . Accounts Receivable Accounts receivable consists of the following: May 26, 2018 November 25, 2017 Gross accounts receivable $ 21,645 $ 20,257 Allowance for doubtful accounts (1,026 ) (617 ) Accounts receivable, net $ 20,619 $ 19,640 Activity in the allowance for doubtful accounts for the six May 26, 2018 2018 Balance at November 25, 2017 $ 617 Acquired allowance on accounts receivable (Note 3) 200 Additions charged to expense 254 Write-offs and other reductions (45 ) Balance at May 26, 2018 $ 1,026 We believe that the carrying value of our net accounts receivable approximates fair value. The inputs into these fair value estimates reflect our market assumptions and are not 3 820, Fair Value Measurements and Disclosures 4. |
Note 6 - Inventories
Note 6 - Inventories | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6 . Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined for domestic furniture inventories using the last-in, first first first Inventories were comprised of the following: May 26, 2018 November 25, 2017 Wholesale finished goods $ 28,437 $ 26,145 Work in process 434 388 Raw materials and supplies 15,995 11,808 Retail merchandise 27,473 26,173 Total inventories on first-in, first-out method 72,339 64,514 LIFO adjustment (8,351 ) (8,143 ) Reserve for excess and obsolete inventory (1,902 ) (1,895 ) $ 62,086 $ 54,476 We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand, market conditions and the respective valuations at LIFO. The need for these reserves is primarily driven by the normal product life cycle. As products mature and sales volumes decline, we rationalize our product offerings to respond to consumer tastes and keep our product lines fresh. If actual demand or market conditions in the future are less favorable than those estimated, additional inventory write-downs may not not not Activity in the reserves for excess quantities and obsolete inventory by segment are as follows: Wholesale Segment Retail Segment Total Balance at November 25, 2017 $ 1,618 $ 277 $ 1,895 Acquired reserve on inventory (Note 3) 400 - 400 Additions charged to expense 702 233 935 Write-offs (1,100 ) (228 ) (1,328 ) Balance at May 26, 2018 $ 1,620 $ 282 $ 1,902 Our estimates and assumptions have been reasonably accurate in the past. We have not 2018 not |
Note 7 - Goodwill and Other Int
Note 7 - Goodwill and Other Intangible Assets | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 7 . Goodwill and Other Intangible Assets Goodwill and other intangible assets consisted of the following: May 26, 2018 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization Customer relationships $ 3,550 $ (699 ) $ 2,851 Technology - customized applications 834 (397 ) 437 Total intangible assets subject to amortization 4,384 (1,096 ) 3,288 Intangibles not subject to amortization: Trade names 9,338 - 9,338 Goodwill 15,990 - 15,990 Total goodwill and other intangible assets $ 29,712 $ (1,096 ) $ 28,616 November 25, 2017 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization Customer relationships $ 3,038 $ (574 ) $ 2,464 Technology - customized applications 834 (337 ) 497 Total intangible assets subject to amortization 3,872 (911 ) 2,961 Intangibles not subject to amortization: Trade names 2,490 - 2,490 Goodwill 11,900 - 11,900 Total goodwill and other intangible assets $ 18,262 $ (911 ) $ 17,351 Changes in the carrying amounts of goodwill by reportable segment during the quarters ended May 26, 2018 Wholesale Retail Logistics Total Balance as of November 25, 2017 $ 5,045 $ 1,926 $ 4,929 $ 11,900 Goodwill arising from acquisition of Lane Venture (Note 3) 4,090 - - 4,090 Balance as of May 26, 2018 $ 9,135 $ 1,926 $ 4,929 $ 15,990 The goodwill recognized in connection with our acquisition of Lane Venture remains subject to future adjustments before the close of the measurement period in the first 2019. 3, no May 26, 2018 November 25, 2017. Amortization expense associated with intangible assets during the three six May 26, 2018 May 27, 2017 Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Intangible asset amortization expense $ 95 $ 80 $ 185 $ 161 Estimated future amortization expense for intangible assets that exist at May 26, 2018 Remainder of fiscal 2018 $ 189 Fiscal 2019 379 Fiscal 2020 379 Fiscal 2021 379 Fiscal 2022 279 Fiscal 2023 259 Thereafter 1,424 Total $ 3,288 |
Note 8 - Notes Payable and Bank
Note 8 - Notes Payable and Bank Credit Facility | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8 . Notes Payable and Bank Credit Facility Our notes payable consist of the following: May 26, 2018 Real estate notes payable $ 541 Less current portion (432 ) Total long-term notes payable $ 109 November 25, 2017 Principal Balance Unamortized Discount Net Carrying Amount Zenith acquisition note payable $ 3,000 $ (13 ) $ 2,987 Real estate notes payable 747 - 747 Total notes payable 3,747 (13 ) 3,734 Less current portion (3,418 ) 13 (3,405 ) Total long-term notes payable $ 329 $ - $ 329 The future maturities of our notes payable are as follows: Remainder of fiscal 2018 $ 212 Fiscal 2019 329 $ 541 Zenith Acquisition Note Payable The final installment of the Zenith acquisition note was paid in full on February 2, 2018. $13 six May 26, 2018 $19 $57 three six May 27, 2017, Real Estate Notes Payable Certain of our retail real estate properties have been financed through commercial mortgages with outstanding principal totaling $541 $747 May 26, 2018 November 25, 2017, 6.73%. $5,663 $5,727 May 26, 2018 November 25, 2017, one $432 $418 May 26, 2018 November 25, 2017, Fair Value We believe that the carrying amount of our notes payable approximates fair value at both May 26, 2018 November 25, 2017. not 3 820, Fair Value Measurements and Disclosures 3. Bank Credit Facility Our credit facility with our bank provides for a line of credit of up to $15,000. December 2018, At May 26, 2018, $2,249 $12,751. $381. |
Note 9 - Post Employment Benefi
Note 9 - Post Employment Benefit Obligations | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Postemployment Benefits Disclosure [Text Block] | 9. Defined Benefit Plans We have an unfunded Supplemental Retirement Income Plan (the “Supplemental Plan”) that covers one $11,329 $11,337 May 26, 2018 November 25, 2017, We also have the Bassett Furniture Industries, Incorporated Management Savings Plan (the “Management Savings Plan”) which was established in the second 2017. $2,000 $400 $1,032 $985 May 26, 2018 November 25, 2017, The combined pension liability for the Supplemental Plan and LTC Awards is recorded as follows in the condensed consolidated balance sheets: May 26, 2018 November 25, 2017 Accrued compensation and benefits $ 778 $ 778 Post employment benefit obligations 11,583 11,544 Total pension liability $ 12,361 $ 12,322 Components of net periodic pension costs for our defined benefit plans for the three six May 26, 2018 May 27, 2017 Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Service cost $ 49 $ 49 $ 98 $ 87 Interest cost 105 114 210 222 Amortization of prior service costs 31 24 62 24 Amortization of transition obligation 11 11 22 21 Amortization of loss 65 83 130 166 Net periodic pension cost $ 261 $ 281 $ 522 $ 520 The components of net periodic pension cost other than the service cost component are included in other loss, net in our condensed consolidated statements of income. Deferred Compensation Plan s We have an unfunded Deferred Compensation Plan that covers one no $1,877 $1,916 May 26, 2018 November 25, 2017, We also have an unfunded, nonqualified deferred compensation plan maintained for the benefit of certain highly compensated or management level employees which was established under the Management Savings Plan in the second 2017. $485 $139 May 26, 2018 November 25, 2017, Our combined liability for all deferred compensation arrangements, including Company contributions and participant deferrals under the Management Savings Plan, is recorded as follows in the condensed consolidated balance sheets: May 26, 2018 November 25, 2017 Accrued compensation and benefits $ 274 $ 274 Post employment benefit obligations 2,088 1,782 Total deferred compensation liability $ 2,362 $ 2,056 We recognized expense under our deferred compensation arrangements during the three six May 26, 2018 May 27, 2017 Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Deferred compensation expense $ 80 $ 82 $ 159 $ 136 |
Note 10 - Other Gains and Losse
Note 10 - Other Gains and Losses | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Other Gains and Losses [Text Block] | 1 0 . Other Gains and Losses Fiscal 2018 Sale of Retail Location In May 2018 $ 2,463 $ 165 three six May 26, 2018 Fiscal 2017 Gain on Sale of Investment In 1985, $325. April 2017 $3,592 $ 3,267 three six May 27, 2017. Impairment of Investment in Real Estate We own a building in Chesterfield County, Virginia that was formerly leased to a licensee for the operation of a BHF store. The building is subject to a ground lease that expires in 2020, 2012, May 27, 2017 2020 $ 1,084 three six May 27, 2017 |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 1 1 . Commitments and Contingencies We are involved in various legal and environmental matters, which arise in the normal course of business. Although the final outcome of these matters cannot be determined, based on the facts presently known, we believe that the final resolution of these matters will not We lease land and buildings that are used in the operation of our Company-owned retail stores as well as in the operation of certain of our licensee-owned stores, and we lease land and buildings at various locations throughout the continental United States for warehousing and distribution hubs used in our logistical services segment. We also lease tractors, trailers and local delivery trucks used in our logistical services segment. Our real estate lease terms range from one 15 five 15 two seven one May 26, 2018: Retail Stores Distribution Centers Transportation Equipment Total Remainder of fiscal 2018 $ 12,156 $ 2,635 $ 1,521 $ 16,312 Fiscal 2019 24,486 4,237 2,750 31,473 Fiscal 2020 22,887 3,495 2,486 28,868 Fiscal 2021 19,855 2,771 1,552 24,178 Fiscal 2022 16,993 2,583 1,346 20,922 Fiscal 2023 14,136 1,517 637 16,290 Thereafter 41,344 438 559 42,341 Total future minimum lease payments $ 151,857 $ 17,676 $ 10,851 $ 180,384 In connection with our long-term real estate leases, our liability for accrued straight-line rent expense was $5,232 $4,821 May 26, 2018 November 25, 2017, We also have guaranteed certain lease obligations of licensee operators. Lease guarantees range from one ten $2,360 $2,743 May 26, 2018 November 25, 2017, In the event of default by an independent dealer under the guaranteed lease, we believe that the risk of loss is mitigated through a combination of options that include, but are not May 26, 2018 November 25, 2017 not |
Note 12 - Earnings Per Share
Note 12 - Earnings Per Share | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 1 2 . Earnings Per Share The following reconciles basic and diluted earnings per share: Net Income Weighted Average Shares Net Income Per Share For the quarter ended May 26, 2018: Basic earnings per share $ 4,289 10,701,154 $ 0.40 Add effect of dilutive securities: Options and restricted shares - 40,182 - Diluted loss per share $ 4,289 10,741,336 $ 0.40 For the quarter ended May 27 2017: Basic earnings per share $ 5,842 10,648,033 $ 0.55 Add effect of dilutive securities: Options and restricted shares - 74,293 (0.01 ) Diluted earnings per share $ 5,842 10,722,326 $ 0.54 For the six months ended May 26, 2018: Basic earnings per share $ 3,376 10,693,815 $ 0.32 Add effect of dilutive securities: Options and restricted shares - 53,936 (0.01 ) Diluted earnings per share $ 3,376 10,747,751 $ 0.31 For the six months ended May 27, 2017: Basic earnings per share $ 8,703 10,630,836 $ 0.82 Add effect of dilutive securities: Options and restricted shares - 88,009 (0.01 ) Diluted earnings per share $ 8,703 10,718,845 $ 0.81 For the three six May 26, 2018 May 27, 2017, Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Unvested shares 5,292 - 5,292 6,538 |
Note 13 - Segment Information
Note 13 - Segment Information | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 1 3 . Segment Information We have strategically aligned our business into three 280, Segment Reporting ● Wholesale. 3, ● Retail – Company-owned s tores. ● Logistical services . third $24,640 $49,559 three six May 26, 2018, $23,828 $46,388 three six May 27, 2017, Inter-company net sales elimination represents the elimination of wholesale sales to our Company-owned stores and the elimination of Zenith logistics revenue from our wholesale and retail segments. Inter-company income elimination includes the embedded wholesale profit in the Company-owned store inventory that has not The following table presents our segment information: Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Sales Revenue Wholesale $ 63,788 $ 62,293 $ 126,888 $ 124,268 Retail - Company-owned stores 68,682 67,144 133,343 128,737 Logistical services 24,929 24,626 50,178 46,960 Inter-company eliminations: Furniture and accessories (29,795 ) (29,143 ) (61,433 ) (59,013 ) Logistical services (10,624 ) (10,795 ) (21,724 ) (20,935 ) Consolidated $ 116,980 $ 114,125 $ 227,252 $ 220,017 Income from Operations Wholesale $ 3,039 $ 4,783 $ 6,103 $ 10,676 Retail - Company-owned stores 1,626 1,367 113 24 Logistical services 289 798 619 572 Inter-company elimination 709 652 878 992 Consolidated $ 5,663 $ 7,600 $ 7,713 $ 12,264 Depreciation and Amortization Wholesale $ 757 $ 664 $ 1,460 $ 1,308 Retail - Company-owned stores 1,536 1,496 3,064 2,968 Logistical services 1,091 1,195 2,164 2,430 Consolidated $ 3,384 $ 3,355 $ 6,688 $ 6,706 Capital Expenditures Wholesale $ 1,113 $ 2,218 $ 2,330 $ 3,845 Retail - Company-owned stores 1,854 1,211 4,455 4,914 Logistical services 737 133 877 413 Consolidated $ 3,704 $ 3,562 $ 7,662 $ 9,172 As of As of Identifiable Assets May 26, 2018 November 25, 2017 Wholesale $ 139,906 $ 152,181 Retail - Company-owned stores 89,859 89,271 Logistical services 51,583 52,296 Consolidated $ 281,348 $ 293,748 |
Note 14 - Recent Accounting Pro
Note 14 - Recent Accounting Pronouncements | 6 Months Ended |
May 26, 2018 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 1 4 . Recent Accounting Pronouncements In May 2014, No. 2014 09 2014 09 606, Revenue from Contracts with Customers 605, 2014 09 605 35, 340 40, 606 two 1 2 2016 2016 08, 2016 10 2016 12, 2014 09, 2016 11, 2014 09. 2014 09 December 15, 2017, not 2014 09 2019 2014 09 not 2014 09. 2019 In January 2016, No. 2016 01, Financial Instruments - Overall (Subtopic 825 10 2016 01 may not 2016 01 2016 01 2019 not In February 2016, No. 2016 02, Leases (Topic 842 2016 02 12 not 2016 02 2016 02 may 2016 02 2020 2016 02 not In August 2016, No. 2016 15, Statement of Cash Flows (Topic 230 2016 15 2016 15 2019 not In January 2017, No. 2017 01, Business Combinations (Topic 805 ): Clarifying the Definition of a Business 2017 01 not not not 2017 01 1 2 2017 01 2019 not In January 2017, No. 2017 04, Intangibles – Goodwill and Other (Topic 350 ): Simplifying the Test for Goodwill Impairment 2017 04 2 2, 2017 04, not 2017 04 2021 January 1, 2017. not In May 2017, No. 2017 09, Compensation – Stock Compensation (Topic 718 ): Scope of Modification Accounting 2017 09 1 2 718, Compensation—Stock Compensation 718. not 1 2 3 2017 09 2019 not In February 2018, No. 2018 02, Income Statement—Reporting Comprehensive Income (Topic 220 2018 02 220, Income Statement—Reporting Comprehensive Income 2018 02 not 2018 02 December 15, 2018, 1 not 2 not 2018 02 first 2018, $545 2 |
Note 3 - Business Combinations
Note 3 - Business Combinations (Tables) | 6 Months Ended |
May 26, 2018 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Allocation of the fair value of consideration transferred: Identifiable assets acquired: Accounts receivable, net of reserve (Note 5) $ 1,357 Inventory, net of reserve (Note 6) 3,921 Prepaid expenses and other current assets 37 Intangible assets 7,360 Total identifiable assets acquired 12,675 Liabilities assumed: Accounts payable (357 ) Other accrued liabilities (852 ) Total liabilities assumed (1,209 ) Net identifiable assets acquired 11,466 Goodwill 4,090 Total net assets acquired $ 15,556 Inventory $ 343 Goodwill 312 Purchase price $ 655 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Useful Life Description In Years Fair Value Trade name Indefinite $ 6,848 Customer relationships 9 512 Total acquired intangible assets $ 7,360 |
Note 5 - Accounts Receivable (T
Note 5 - Accounts Receivable (Tables) | 6 Months Ended |
May 26, 2018 | |
Notes Tables | |
Schedule Of Accounts Receivable [Table Text Block] | May 26, 2018 November 25, 2017 Gross accounts receivable $ 21,645 $ 20,257 Allowance for doubtful accounts (1,026 ) (617 ) Accounts receivable, net $ 20,619 $ 19,640 |
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | 2018 Balance at November 25, 2017 $ 617 Acquired allowance on accounts receivable (Note 3) 200 Additions charged to expense 254 Write-offs and other reductions (45 ) Balance at May 26, 2018 $ 1,026 |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 6 Months Ended |
May 26, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | May 26, 2018 November 25, 2017 Wholesale finished goods $ 28,437 $ 26,145 Work in process 434 388 Raw materials and supplies 15,995 11,808 Retail merchandise 27,473 26,173 Total inventories on first-in, first-out method 72,339 64,514 LIFO adjustment (8,351 ) (8,143 ) Reserve for excess and obsolete inventory (1,902 ) (1,895 ) $ 62,086 $ 54,476 |
Activity In Reserves For Excess Quantities And Obsolete Inventory By Segment [Table Text Block] | Wholesale Segment Retail Segment Total Balance at November 25, 2017 $ 1,618 $ 277 $ 1,895 Acquired reserve on inventory (Note 3) 400 - 400 Additions charged to expense 702 233 935 Write-offs (1,100 ) (228 ) (1,328 ) Balance at May 26, 2018 $ 1,620 $ 282 $ 1,902 |
Note 7 - Goodwill and Other I23
Note 7 - Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
May 26, 2018 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | May 26, 2018 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization Customer relationships $ 3,550 $ (699 ) $ 2,851 Technology - customized applications 834 (397 ) 437 Total intangible assets subject to amortization 4,384 (1,096 ) 3,288 Intangibles not subject to amortization: Trade names 9,338 - 9,338 Goodwill 15,990 - 15,990 Total goodwill and other intangible assets $ 29,712 $ (1,096 ) $ 28,616 November 25, 2017 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Intangibles subject to amortization Customer relationships $ 3,038 $ (574 ) $ 2,464 Technology - customized applications 834 (337 ) 497 Total intangible assets subject to amortization 3,872 (911 ) 2,961 Intangibles not subject to amortization: Trade names 2,490 - 2,490 Goodwill 11,900 - 11,900 Total goodwill and other intangible assets $ 18,262 $ (911 ) $ 17,351 |
Schedule of Goodwill [Table Text Block] | Wholesale Retail Logistics Total Balance as of November 25, 2017 $ 5,045 $ 1,926 $ 4,929 $ 11,900 Goodwill arising from acquisition of Lane Venture (Note 3) 4,090 - - 4,090 Balance as of May 26, 2018 $ 9,135 $ 1,926 $ 4,929 $ 15,990 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Intangible asset amortization expense $ 95 $ 80 $ 185 $ 161 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Remainder of fiscal 2018 $ 189 Fiscal 2019 379 Fiscal 2020 379 Fiscal 2021 379 Fiscal 2022 279 Fiscal 2023 259 Thereafter 1,424 Total $ 3,288 |
Note 8 - Notes Payable and Ba24
Note 8 - Notes Payable and Bank Credit Facility (Tables) | 6 Months Ended |
May 26, 2018 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | May 26, 2018 Real estate notes payable $ 541 Less current portion (432 ) Total long-term notes payable $ 109 November 25, 2017 Principal Balance Unamortized Discount Net Carrying Amount Zenith acquisition note payable $ 3,000 $ (13 ) $ 2,987 Real estate notes payable 747 - 747 Total notes payable 3,747 (13 ) 3,734 Less current portion (3,418 ) 13 (3,405 ) Total long-term notes payable $ 329 $ - $ 329 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Remainder of fiscal 2018 $ 212 Fiscal 2019 329 $ 541 |
Note 9 - Post Employment Bene25
Note 9 - Post Employment Benefit Obligations (Tables) | 6 Months Ended |
May 26, 2018 | |
Notes Tables | |
Schedule of Pension Liability [Table Text Block] | May 26, 2018 November 25, 2017 Accrued compensation and benefits $ 778 $ 778 Post employment benefit obligations 11,583 11,544 Total pension liability $ 12,361 $ 12,322 |
Schedule of Net Benefit Costs [Table Text Block] | Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Service cost $ 49 $ 49 $ 98 $ 87 Interest cost 105 114 210 222 Amortization of prior service costs 31 24 62 24 Amortization of transition obligation 11 11 22 21 Amortization of loss 65 83 130 166 Net periodic pension cost $ 261 $ 281 $ 522 $ 520 |
Schedule of Deferred Compensation Liability [Table Text Block] | May 26, 2018 November 25, 2017 Accrued compensation and benefits $ 274 $ 274 Post employment benefit obligations 2,088 1,782 Total deferred compensation liability $ 2,362 $ 2,056 |
Recognized Deferred Compensation Expense [Table Text Block] | Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Deferred compensation expense $ 80 $ 82 $ 159 $ 136 |
Note 11 - Commitments and Con26
Note 11 - Commitments and Contingencies (Tables) | 6 Months Ended |
May 26, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Retail Stores Distribution Centers Transportation Equipment Total Remainder of fiscal 2018 $ 12,156 $ 2,635 $ 1,521 $ 16,312 Fiscal 2019 24,486 4,237 2,750 31,473 Fiscal 2020 22,887 3,495 2,486 28,868 Fiscal 2021 19,855 2,771 1,552 24,178 Fiscal 2022 16,993 2,583 1,346 20,922 Fiscal 2023 14,136 1,517 637 16,290 Thereafter 41,344 438 559 42,341 Total future minimum lease payments $ 151,857 $ 17,676 $ 10,851 $ 180,384 |
Note 12 - Earnings Per Share (T
Note 12 - Earnings Per Share (Tables) | 6 Months Ended |
May 26, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net Income Weighted Average Shares Net Income Per Share For the quarter ended May 26, 2018: Basic earnings per share $ 4,289 10,701,154 $ 0.40 Add effect of dilutive securities: Options and restricted shares - 40,182 - Diluted loss per share $ 4,289 10,741,336 $ 0.40 For the quarter ended May 27 2017: Basic earnings per share $ 5,842 10,648,033 $ 0.55 Add effect of dilutive securities: Options and restricted shares - 74,293 (0.01 ) Diluted earnings per share $ 5,842 10,722,326 $ 0.54 For the six months ended May 26, 2018: Basic earnings per share $ 3,376 10,693,815 $ 0.32 Add effect of dilutive securities: Options and restricted shares - 53,936 (0.01 ) Diluted earnings per share $ 3,376 10,747,751 $ 0.31 For the six months ended May 27, 2017: Basic earnings per share $ 8,703 10,630,836 $ 0.82 Add effect of dilutive securities: Options and restricted shares - 88,009 (0.01 ) Diluted earnings per share $ 8,703 10,718,845 $ 0.81 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Unvested shares 5,292 - 5,292 6,538 |
Note 13 - Segment Information (
Note 13 - Segment Information (Tables) | 6 Months Ended |
May 26, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Quarter Ended Six Months Ended May 26, 2018 May 27, 2017 May 26, 2018 May 27, 2017 Sales Revenue Wholesale $ 63,788 $ 62,293 $ 126,888 $ 124,268 Retail - Company-owned stores 68,682 67,144 133,343 128,737 Logistical services 24,929 24,626 50,178 46,960 Inter-company eliminations: Furniture and accessories (29,795 ) (29,143 ) (61,433 ) (59,013 ) Logistical services (10,624 ) (10,795 ) (21,724 ) (20,935 ) Consolidated $ 116,980 $ 114,125 $ 227,252 $ 220,017 Income from Operations Wholesale $ 3,039 $ 4,783 $ 6,103 $ 10,676 Retail - Company-owned stores 1,626 1,367 113 24 Logistical services 289 798 619 572 Inter-company elimination 709 652 878 992 Consolidated $ 5,663 $ 7,600 $ 7,713 $ 12,264 Depreciation and Amortization Wholesale $ 757 $ 664 $ 1,460 $ 1,308 Retail - Company-owned stores 1,536 1,496 3,064 2,968 Logistical services 1,091 1,195 2,164 2,430 Consolidated $ 3,384 $ 3,355 $ 6,688 $ 6,706 Capital Expenditures Wholesale $ 1,113 $ 2,218 $ 2,330 $ 3,845 Retail - Company-owned stores 1,854 1,211 4,455 4,914 Logistical services 737 133 877 413 Consolidated $ 3,704 $ 3,562 $ 7,662 $ 9,172 As of As of Identifiable Assets May 26, 2018 November 25, 2017 Wholesale $ 139,906 $ 152,181 Retail - Company-owned stores 89,859 89,271 Logistical services 51,583 52,296 Consolidated $ 281,348 $ 293,748 |
Note 2 - Interim Financial Pr29
Note 2 - Interim Financial Presentation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | Nov. 30, 2019 | Nov. 24, 2018 | Nov. 25, 2017 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | |||||
Effective Income Tax Rate Reconciliation, Percent, Total | 21.30% | 35.80% | 51.40% | 33.20% | |||
Tax Cuts and Jobs Act of 2017 Provisional Adjustment of Deferred Tax Asset Liability | $ (155) | $ 2,032 | |||||
Excess tax Benefits on Share-based Compensation | 16 | 197 | $ 327 | ||||
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount | 266 | ||||||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income to Retained Earnings Per ASU 2018-02 | 545 | ||||||
ASU 2018-02 [Member] | |||||||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income to Retained Earnings Per ASU 2018-02 | $ 545 | ||||||
Scenario, Forecast [Member] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 22.20% |
Note 3 - Business Combination30
Note 3 - Business Combinations (Details Textual) - USD ($) $ in Thousands | Dec. 21, 2017 | May 26, 2018 | Feb. 25, 2017 | May 26, 2018 |
Acquisition of Lane Venture [Member] | ||||
Payments to Acquire Businesses, Gross | $ 15,556 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | $ 168 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Accrued Liabilities | 38 | |||
Goodwill, Purchase Accounting Adjustments | (129) | |||
Acquisition of Lane Venture [Member] | Selling, General and Administrative Expenses [Member] | ||||
Business Combination, Acquisition Related Costs | $ 26 | $ 254 | ||
Bassett Home Furnishings, Columbus, Ohio [Member] | ||||
Business Combination, Consideration Transferred, Total | $ 655 |
Note 3 - Business Combination31
Note 3 - Business Combinations - Acquisitions (Details) - USD ($) $ in Thousands | May 26, 2018 | Dec. 21, 2017 | Nov. 25, 2017 | Feb. 25, 2017 |
Goodwill | $ 15,990 | $ 11,900 | ||
Bassett Home Furnishings, Columbus, Ohio [Member] | ||||
Inventory, net of reserve (Note 6) | $ 343 | |||
Goodwill | 312 | |||
Total net assets acquired | $ 655 | |||
Acquisition of Lane Venture [Member] | ||||
Accounts receivable, net of reserve (Note 5) | $ 1,357 | |||
Inventory, net of reserve (Note 6) | 3,921 | |||
Prepaid expenses and other current assets | 37 | |||
Intangible assets | 7,360 | |||
Total identifiable assets acquired | 12,675 | |||
Accounts payable | (357) | |||
Other accrued liabilities | (852) | |||
Total liabilities assumed | (1,209) | |||
Net identifiable assets acquired | 11,466 | |||
Goodwill | 4,090 | |||
Total net assets acquired | $ 15,556 |
Note 3 - Business Combination32
Note 3 - Business Combinations - Acquired Identifiable Intangible Assets (Details) - Acquisition of Lane Venture [Member] $ in Thousands | Dec. 21, 2017USD ($) |
Intangible assets | $ 7,360 |
Customer Relationships [Member] | |
Intangible assets | $ 512 |
Useful Life (Year) | 9 years |
Trade Names [Member] | |
Intangible assets | $ 6,848 |
Note 4 - Financial Instrument33
Note 4 - Financial Instruments and Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
May 26, 2018 | Nov. 25, 2017 | |
Short-term Investments, Total | $ 23,125 | $ 23,125 |
Weighted Average [Member] | ||
Certificates of Deposit Terms | 300 days | |
Interest Rate of Certificates of Deposit | 1.40% | |
Minimum [Member] | ||
Interest Rate of Certificates of Deposit | 0.10% | |
Maximum [Member] | ||
Interest Rate of Certificates of Deposit | 1.89% |
Note 5 - Accounts Receivable -
Note 5 - Accounts Receivable - Accounts Receivable (Details) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Gross accounts receivable | $ 21,645 | $ 20,257 |
Allowance for doubtful accounts | (1,026) | (617) |
Accounts receivable, net | $ 20,619 | $ 19,640 |
Note 5 - Accounts Receivable 35
Note 5 - Accounts Receivable - Activity in Allowance for Doubtful Accounts (Details) $ in Thousands | 6 Months Ended |
May 26, 2018USD ($) | |
Balance, beginning | $ 617 |
Acquired allowance on accounts receivable (Note 3) | 200 |
Additions charged to expense | 254 |
Write-offs and other reductions | (45) |
Balance, ending | $ 1,026 |
Note 6 - Inventories - Inventor
Note 6 - Inventories - Inventories (Details) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Wholesale finished goods | $ 28,437 | $ 26,145 |
Work in process | 434 | 388 |
Raw materials and supplies | 15,995 | 11,808 |
Retail merchandise | 27,473 | 26,173 |
Total inventories on first-in, first-out method | 72,339 | 64,514 |
LIFO adjustment | (8,351) | (8,143) |
Reserve for excess and obsolete inventory | (1,902) | (1,895) |
Inventory, net | $ 62,086 | $ 54,476 |
Note 6 - Inventories - Activity
Note 6 - Inventories - Activity in Reserves for Excess Quantities and Obsolete Inventory by Segment (Details) $ in Thousands | 6 Months Ended |
May 26, 2018USD ($) | |
Balance, beginning | $ 1,895 |
Acquired reserve on inventory (Note 3) | 400 |
Additions charged to expense | 935 |
Write-offs | (1,328) |
Balance, ending | 1,902 |
Operating Segments [Member] | Wholesale Segment [Member] | |
Balance, beginning | 1,618 |
Acquired reserve on inventory (Note 3) | 400 |
Additions charged to expense | 702 |
Write-offs | (1,100) |
Balance, ending | 1,620 |
Operating Segments [Member] | Retail Segment [Member] | |
Balance, beginning | 277 |
Acquired reserve on inventory (Note 3) | |
Additions charged to expense | 233 |
Write-offs | (228) |
Balance, ending | $ 282 |
Note 7 - Goodwill and Other I38
Note 7 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | $ 0 |
Note 7 - Goodwill and Other I39
Note 7 - Goodwill and Other Intangible Assets - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Intangibles subject to amortization, Gross Carrying Amount | $ 4,384 | $ 3,872 |
Intangibles subject to amortization, Accumulated Amortization | (1,096) | (911) |
Intangibles subject to amortization, Intangible Assets, Net | 3,288 | 2,961 |
Trade names | 9,338 | 2,490 |
Goodwill | 15,990 | 11,900 |
Total goodwill and other intangible assets | 29,712 | 18,262 |
Total goodwill and other intangible assets | 28,616 | 17,351 |
Customer Relationships [Member] | ||
Intangibles subject to amortization, Gross Carrying Amount | 3,550 | 3,038 |
Intangibles subject to amortization, Accumulated Amortization | (699) | (574) |
Intangibles subject to amortization, Intangible Assets, Net | 2,851 | 2,464 |
Technology-Based Intangible Assets [Member] | ||
Intangibles subject to amortization, Gross Carrying Amount | 834 | 834 |
Intangibles subject to amortization, Accumulated Amortization | (397) | (337) |
Intangibles subject to amortization, Intangible Assets, Net | $ 437 | $ 497 |
Note 7 - Goodwill and Other I40
Note 7 - Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill by Reportable Segment (Details) $ in Thousands | 6 Months Ended |
May 26, 2018USD ($) | |
Balance, beginning | $ 11,900 |
Goodwill arising from acquisition of Lane Venture (Note 3) | 4,090 |
Balance, ending | 15,990 |
Wholesale Segment [Member] | |
Balance, beginning | 5,045 |
Goodwill arising from acquisition of Lane Venture (Note 3) | 4,090 |
Balance, ending | 9,135 |
Retail Segment [Member] | |
Balance, beginning | 1,926 |
Goodwill arising from acquisition of Lane Venture (Note 3) | |
Balance, ending | 1,926 |
Logistical Services [Member] | |
Balance, beginning | 4,929 |
Goodwill arising from acquisition of Lane Venture (Note 3) | |
Balance, ending | $ 4,929 |
Note 7 - Goodwill and Other I41
Note 7 - Goodwill and Other Intangible Assets - Amortization Expense With Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | |
Intangible asset amortization expense | $ 95 | $ 80 | $ 185 | $ 161 |
Note 7 - Goodwill and Other I42
Note 7 - Goodwill and Other Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Remainder of fiscal 2018 | $ 189 | |
Fiscal 2,019 | 379 | |
Fiscal 2,020 | 379 | |
Fiscal 2,021 | 379 | |
Fiscal 2,022 | 279 | |
Fiscal 2,023 | 259 | |
Thereafter | 1,424 | |
Total | $ 3,288 | $ 2,961 |
Note 8 - Notes Payable and Ba43
Note 8 - Notes Payable and Bank Credit Facility (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 27, 2017 | May 26, 2018 | May 27, 2017 | Nov. 25, 2017 | |
Long-term Debt, Total | $ 541 | $ 3,734 | ||
Long-term Debt, Current Maturities, Total | 432 | 3,405 | ||
Bank One [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000 | |||
Letters of Credit Outstanding, Amount | 2,249 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 12,751 | |||
Bank Two [Member] | ||||
Letters of Credit Outstanding, Amount | 381 | |||
Real Estate Notes Payable Operated in Retail Segment [Member] | ||||
Long-term Debt, Total | $ 541 | 747 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.73% | |||
Long-term Debt, Current Maturities, Total | $ 432 | 418 | ||
Real Estate Notes Payable Operated in Retail Segment [Member] | Financed Through Commercial Mortgages [Member] | ||||
Debt Instrument, Collateral Amount | 5,663 | $ 5,727 | ||
Zenith Freight Lines [Member] | Unsecured Debt [Member] | ||||
Amortization of Debt Discount (Premium) | $ 19 | $ 13 | $ 57 |
Note 8 - Notes Payable and Ba44
Note 8 - Notes Payable and Bank Credit Facility - Real Estate Notes Payable and Bank Debt (Details) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Real estate notes payable | $ 541 | $ 3,734 |
Less current portion | (432) | (3,405) |
Total long-term notes payable | 109 | 329 |
Principal Balance | $ 541 | 3,747 |
Unamortized Discount | (13) | |
Principal Balance, less current portion | (3,418) | |
Unamortized discount, current portion | 13 | |
Principal Balance, excluding current portion | 329 | |
Unamortized discount, noncurrent portion | ||
Zenith Note Payable [Member] | ||
Real estate notes payable | 2,987 | |
Principal Balance | 3,000 | |
Unamortized Discount | (13) | |
Real Estate Notes Payable [Member] | ||
Real estate notes payable | 747 | |
Principal Balance | 747 | |
Unamortized Discount |
Note 8 - Notes Payable and Ba45
Note 8 - Notes Payable and Bank Credit Facility - Maturities of Notes Payable (Details) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Remainder of fiscal 2018 | $ 212 | |
Fiscal 2,019 | 329 | |
Total repayments of principal | $ 541 | $ 3,747 |
Note 9 - Post Employment Bene46
Note 9 - Post Employment Benefit Obligations (Details Textual) - USD ($) $ in Thousands | May 02, 2017 | May 26, 2018 | Nov. 25, 2017 |
Postemployment Benefits Liability, Noncurrent | $ 13,672 | $ 13,326 | |
Deferred Compensation, Management Savings Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Recorded Liability | 485 | 139 | |
Unfunded Deferred Compensation Plan [Member] | |||
Postemployment Benefits Liability, Noncurrent | 1,877 | 1,916 | |
Management Savings Plan [member] | |||
Defined Benefit Plan, Fixed Future Benefit Award | $ 2,000 | ||
Defined Benefit Plan, Fixed Future Benefit Award, Individual Participants | $ 400 | ||
Liability, Defined Benefit Pension Plan | 1,032 | 985 | |
Supplemental Employee Retirement Plan [Member] | |||
Postemployment Benefits Liability, Total | $ 11,329 | $ 11,337 |
Note 9 - Post Employment Bene47
Note 9 - Post Employment Benefit Obligations - Pension Liability (Details) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Post employment benefit obligations | $ 13,672 | $ 13,326 |
Pension Plans Defined Benefit and Supplemental Employee Retirement Plan [Member] | ||
Accrued compensation and benefits | 778 | 778 |
Post employment benefit obligations | 11,583 | 11,544 |
Total pension liability | $ 12,361 | $ 12,322 |
Note 9 - Post Employment Bene48
Note 9 - Post Employment Benefit Obligations - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | |
Service cost | $ 49 | $ 49 | $ 98 | $ 87 |
Interest cost | 105 | 114 | 210 | 222 |
Amortization of prior service costs | 31 | 24 | 62 | 24 |
Amortization of transition obligation | 11 | 11 | 22 | 21 |
Amortization of loss | 65 | 83 | 130 | 166 |
Net periodic pension cost | $ 261 | $ 281 | $ 522 | $ 520 |
Note 9 - Post Employment Bene49
Note 9 - Post Employment Benefit Obligations - Deferred Compensation Liability (Details) - USD ($) $ in Thousands | May 26, 2018 | Nov. 25, 2017 |
Post employment benefit obligations | $ 13,672 | $ 13,326 |
Deferred Compensation Plans [Member] | ||
Accrued compensation and benefits | 274 | 274 |
Post employment benefit obligations | 2,088 | 1,782 |
Total deferred compensation liability | $ 2,362 | $ 2,056 |
Note 9 - Post Employment Bene50
Note 9 - Post Employment Benefit Obligations - Recognized Deferred Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | |
Unfunded Deferred Compensation Plan [Member] | ||||
Deferred compensation expense | $ 80 | $ 82 | $ 159 | $ 136 |
Note 10 - Other Gains and Los51
Note 10 - Other Gains and Losses (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2017 | May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | Mar. 31, 2017 | |
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 2,463 | $ 63 | ||||
Gain (Loss) on Disposition of Property Plant Equipment, Total | 136 | |||||
Impairment of Real Estate | $ 1,084 | 1,084 | ||||
Minority Interest in Privately-held, Start-up Provider of Property and Casualty Insurance [Member] | ||||||
Cost Method Investments, Original Cost | $ 325 | |||||
Proceeds from Sale of Long-term Investments | $ 3,592 | |||||
Cost-method Investments, Realized Gains | $ 3,267 | $ 3,267 | ||||
Land and Building occupied by Spring, Texas Retail Store [Member] | ||||||
Proceeds from Sale of Property, Plant, and Equipment, Total | 2,463 | 2,463 | ||||
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 165 | $ 165 |
Note 11 - Commitments and Con52
Note 11 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
May 26, 2018 | Nov. 25, 2017 | |
Accrued Rent | $ 5,232 | $ 4,821 |
Lease Obligations of Licensee Operators [Member] | ||
Loss Contingency, Estimate of Possible Loss | $ 2,360 | $ 2,743 |
Minimum [Member] | ||
Operating Lease, Lease Term | 1 year | |
Renewal Term On Operating Lease | 5 years | |
Lease Guarantees Term | 1 year | |
Minimum [Member] | Transportation Equipment [Member] | ||
Lessee, Operating Lease, Term of Contract | 2 years | |
Maximum [Member] | ||
Operating Lease, Lease Term | 15 years | |
Renewal Term On Operating Lease | 15 years | |
Lease Guarantees Term | 10 years | |
Maximum [Member] | Transportation Equipment [Member] | ||
Lessee, Operating Lease, Term of Contract | 7 years |
Note 11 - Commitments and Con53
Note 11 - Commitments and Contingencies - Future Minimum Lease Payments Under the Non-cancellable Operating Leases (Details) $ in Thousands | May 26, 2018USD ($) |
Remainder of fiscal 2018 | $ 16,312 |
Fiscal 2,019 | 31,473 |
Fiscal 2,020 | 28,868 |
Fiscal 2,021 | 24,178 |
Fiscal 2,022 | 20,922 |
Fiscal 2,023 | 16,290 |
Thereafter | 42,341 |
Total future minimum lease payments | 180,384 |
Retail Stores [Member] | |
Remainder of fiscal 2018 | 12,156 |
Fiscal 2,019 | 24,486 |
Fiscal 2,020 | 22,887 |
Fiscal 2,021 | 19,855 |
Fiscal 2,022 | 16,993 |
Fiscal 2,023 | 14,136 |
Thereafter | 41,344 |
Total future minimum lease payments | 151,857 |
Distribution Centers [Member] | |
Remainder of fiscal 2018 | 2,635 |
Fiscal 2,019 | 4,237 |
Fiscal 2,020 | 3,495 |
Fiscal 2,021 | 2,771 |
Fiscal 2,022 | 2,583 |
Fiscal 2,023 | 1,517 |
Thereafter | 438 |
Total future minimum lease payments | 17,676 |
Transportation Equipment Leases [Member] | |
Remainder of fiscal 2018 | 1,521 |
Fiscal 2,019 | 2,750 |
Fiscal 2,020 | 2,486 |
Fiscal 2,021 | 1,552 |
Fiscal 2,022 | 1,346 |
Fiscal 2,023 | 637 |
Thereafter | 559 |
Total future minimum lease payments | $ 10,851 |
Note 12 - Earnings Per Share -
Note 12 - Earnings Per Share - Reconciliation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | |
Basic earnings (loss) per share, net income (loss) | $ 4,289 | $ 5,842 | $ 3,376 | $ 8,703 |
Basic earnings (loss) per share, weighted average shares (in shares) | 10,701,154 | 10,648,033 | 10,693,815 | 10,630,836 |
Basic earnings per share (in dollars per share) | $ 0.40 | $ 0.55 | $ 0.32 | $ 0.82 |
Options and restricted shares, weighted average shares (in shares) | 40,182 | 74,293 | 53,936 | 88,009 |
Options and restricted shares, net income per share (in dollars per share) | $ (0.01) | $ (0.01) | $ (0.01) | |
Diluted earnings (loss) per share, net income (loss) | $ 4,289 | $ 5,842 | $ 3,376 | $ 8,703 |
Diluted earnings (loss) per share, weighted average shares (in shares) | 10,741,336 | 10,722,326 | 10,747,751 | 10,718,845 |
Diluted earnings per share (in dollars per share) | $ 0.40 | $ 0.54 | $ 0.31 | $ 0.81 |
Note 12 - Earnings Per Share 55
Note 12 - Earnings Per Share - Antidilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | |
Unvested Shares [Member] | ||||
Anti-dilutive securities (in shares) | 5,292 | 5,292 | 6,538 |
Note 13 - Segment Information56
Note 13 - Segment Information (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2018USD ($) | May 27, 2017USD ($) | May 26, 2018USD ($) | May 27, 2017USD ($) | |
Number of Reportable Segments | 3 | |||
SGA Expenses Excluding New Store Pre-opening Costs | $ 65,456 | $ 61,075 | $ 129,707 | $ 119,599 |
Zenith Freight Lines [Member] | ||||
SGA Expenses Excluding New Store Pre-opening Costs | $ 24,640 | $ 23,828 | $ 49,559 | $ 46,388 |
Note 13 - Segment Information -
Note 13 - Segment Information - Segment Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | Nov. 25, 2017 | |
Sales revenue | $ 116,980 | $ 114,125 | $ 227,252 | $ 220,017 | |
Income (loss) from Operations | 5,663 | 7,600 | 7,713 | 12,264 | |
Depreciation and amortization | 3,384 | 3,355 | 6,688 | 6,706 | |
Capital expenditures | 3,704 | 3,562 | 7,662 | 9,172 | |
Identifiable Assets | 281,348 | 281,348 | $ 293,748 | ||
Operating Segments [Member] | Wholesale Segment [Member] | |||||
Sales revenue | 63,788 | 62,293 | 126,888 | 124,268 | |
Income (loss) from Operations | 3,039 | 4,783 | 6,103 | 10,676 | |
Depreciation and amortization | 757 | 664 | 1,460 | 1,308 | |
Identifiable Assets | 139,906 | 139,906 | 152,181 | ||
Operating Segments [Member] | Wholesale Segment [Member] | Non-cash Change in Accounts Payable Related to Property, Plant, and Equipment [Member] | |||||
Capital expenditures | 1,113 | 2,218 | 2,330 | 3,845 | |
Operating Segments [Member] | Company-owned Retail Stores [Member] | |||||
Sales revenue | 68,682 | 67,144 | 133,343 | 128,737 | |
Income (loss) from Operations | 1,626 | 1,367 | 113 | 24 | |
Depreciation and amortization | 1,536 | 1,496 | 3,064 | 2,968 | |
Identifiable Assets | 89,859 | 89,859 | 89,271 | ||
Operating Segments [Member] | Company-owned Retail Stores [Member] | Non-cash Change in Accounts Payable Related to Property, Plant, and Equipment [Member] | |||||
Capital expenditures | 1,854 | 1,211 | 4,455 | 4,914 | |
Operating Segments [Member] | Logistical Services [Member] | |||||
Sales revenue | 24,929 | 24,626 | 50,178 | 46,960 | |
Income (loss) from Operations | 289 | 798 | 619 | 572 | |
Depreciation and amortization | 1,091 | 1,195 | 2,164 | 2,430 | |
Identifiable Assets | 51,583 | 51,583 | $ 52,296 | ||
Operating Segments [Member] | Logistical Services [Member] | Non-cash Change in Accounts Payable Related to Property, Plant, and Equipment [Member] | |||||
Capital expenditures | 737 | 133 | 877 | 413 | |
Intersegment Eliminations [Member] | |||||
Income (loss) from Operations | 709 | 652 | 878 | 992 | |
Intersegment Eliminations [Member] | Logistical Services [Member] | |||||
Sales revenue | (10,624) | (10,795) | (21,724) | (20,935) | |
Intersegment Eliminations [Member] | Furniture and Accessories [Member] | |||||
Sales revenue | $ (29,795) | $ (29,143) | $ (61,433) | $ (59,013) |
Note 14 - Recent Accounting P58
Note 14 - Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2018 | May 27, 2017 | May 26, 2018 | May 27, 2017 | |
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income to Retained Earnings Per ASU 2018-02 | $ 545 | |||
ASU 2018-02 [Member] | ||||
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income to Retained Earnings Per ASU 2018-02 | $ 545 |