Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2014 | Mar. 31, 2014 | Jul. 31, 2013 |
Document And Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'HASTINGS ENTERTAINMENT INC | ' | ' |
Entity Central Index Key | '0001054579 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Jan-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--01-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $16.90 |
Entity Common Stock, Shares Outstanding | ' | 8,143,317 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $3,753 | $3,730 |
Merchandise inventories, net | 152,138 | 145,337 |
Prepaid expenses and other current assets | 10,394 | 9,092 |
Total current assets | 166,285 | 158,159 |
Rental assets, net of accumulated depreciation of $16,869 and $18,827 at January 31, 2014 and 2013, respectively | 10,227 | 11,353 |
Property and equipment, net | 29,212 | 32,099 |
Intangible assets | 244 | 244 |
Other assets | 677 | 2,792 |
Total assets | 206,645 | 204,647 |
Current Liabilities | ' | ' |
Trade accounts payable | 57,236 | 53,593 |
Accrued expenses and other current liabilities | 28,359 | 27,396 |
Total current liabilities | 85,595 | 80,989 |
Long-term debt | 51,749 | 41,805 |
Deferred income taxes | 60 | 50 |
Other liabilities | 5,239 | 7,828 |
Shareholders’ equity: | ' | ' |
Preferred stock, $0.01 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 75,000,000 shares authorized; 11,944,544 shares issued at January 31, 2014 and 11,944,544 shares issued at January 31, 2013; 8,143,317 shares outstanding at January 31, 2014 and 8,146,513 shares outstanding at January 31, 2013 | 119 | 119 |
Additional paid-in capital | 36,413 | 36,375 |
Retained earnings | 48,459 | 58,642 |
Accumulated other comprehensive income | 347 | 247 |
Treasury stock, at cost | -21,336 | -21,408 |
Total shareholders’ equity | 64,002 | 73,975 |
Total liabilities and shareholders’ equity | $206,645 | $204,647 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated depreciation of rental assets | $16,869 | $18,827 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 11,944,544 | 11,944,544 |
Common stock, shares outstanding | 8,143,317 | 8,146,513 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Merchandise revenue | $382,578 | $402,735 | $425,142 |
Rental asset revenue | 53,043 | 59,846 | 70,426 |
Gift card breakage revenue | 341 | -80 | 819 |
Total revenues | 435,962 | 462,501 | 496,387 |
Merchandise cost of revenue | 262,639 | 275,251 | 295,506 |
Rental asset cost of revenue | 19,071 | 20,779 | 27,166 |
Total cost of revenues | 281,710 | 296,030 | 322,672 |
Gross profit | 154,252 | 166,471 | 173,715 |
Selling, general and administrative expenses | 163,698 | 174,461 | 185,107 |
Pre-opening expenses | 0 | 0 | 244 |
Operating loss | -9,446 | -7,990 | -11,636 |
Other income (expense): | ' | ' | ' |
Interest expense | -1,283 | -1,173 | -1,334 |
Other, net | 302 | 147 | 275 |
Loss before income taxes | -10,427 | -9,016 | -12,695 |
Income tax expense (benefit) | -244 | 297 | 4,884 |
Net loss | ($10,183) | ($9,313) | ($17,579) |
Basic loss per share | ($1.25) | ($1.14) | ($2.05) |
Diluted loss per share | ($1.25) | ($1.14) | ($2.05) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Net loss | ($10,183) | ($9,313) | ($17,579) |
Other comprehensive income before income taxes | ' | ' | ' |
Unrealized gains on available for sale investments for supplemental executive retirement plan | 143 | 129 | 19 |
Reclassification adjustment realized in net loss, included in Other Income (Expense) | -43 | ' | ' |
Other comprehensive income, before income taxes | 100 | 129 | 19 |
Income taxes related to components of other comprehensive income | ' | ' | 8 |
Other comprehensive income, net of income taxes | 100 | 129 | 11 |
Total comprehensive loss | ($10,083) | ($9,184) | ($17,568) |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
In Thousands, except Share data | ||||||
Beginning balance at Jan. 31, 2011 | $104,726 | $119 | $36,673 | $88,589 | $107 | ($20,762) |
Beginning balance, shares at Jan. 31, 2011 | ' | 11,944,544 | ' | ' | ' | 3,200,994 |
Issuance of stock to directors | 40 | ' | -23 | ' | ' | 63 |
Issuance of stock to directors, shares | ' | ' | ' | ' | ' | -9,852 |
Purchase of treasury stock | -1,992 | ' | ' | ' | ' | -1,992 |
Purchase of treasury stock, shares | ' | ' | ' | ' | ' | 665,109 |
Exercise of stock options, vesting of restricted stock units and other, net of taxes | -166 | ' | -1,437 | ' | ' | 1,271 |
Exercise of stock options, vesting of restricted stock units and other, net of taxes, shares | ' | ' | ' | ' | ' | -203,854 |
Other stock-based compensation | 1,018 | ' | 1,018 | ' | ' | ' |
Net loss | -17,579 | ' | ' | -17,579 | ' | ' |
Other comprehensive income (loss) | 11 | ' | ' | ' | 11 | ' |
Ending balance at Jan. 31, 2012 | 86,058 | 119 | 36,231 | 71,010 | 118 | -21,420 |
Ending balance, shares at Jan. 31, 2012 | ' | 11,944,544 | ' | ' | ' | 3,652,397 |
Issuance of stock to directors | 112 | ' | ' | ' | ' | 112 |
Issuance of stock to directors, shares | ' | ' | ' | ' | ' | -19,416 |
Purchase of treasury stock | -549 | ' | ' | ' | ' | -549 |
Purchase of treasury stock, shares | ' | ' | ' | ' | ' | 243,800 |
Exercise of stock options, vesting of restricted stock units and other, net of taxes | -72 | ' | -521 | ' | ' | 449 |
Exercise of stock options, vesting of restricted stock units and other, net of taxes, shares | ' | ' | ' | ' | ' | -78,750 |
Other stock-based compensation | 665 | ' | 665 | ' | ' | ' |
Dividends paid | -3,062 | ' | ' | -3,062 | ' | ' |
Treasury dividends received | 7 | ' | ' | 7 | ' | ' |
Net loss | -9,313 | ' | ' | -9,313 | ' | ' |
Other comprehensive income (loss) | 129 | ' | ' | ' | 129 | ' |
Ending balance at Jan. 31, 2013 | 73,975 | 119 | 36,375 | 58,642 | 247 | -21,408 |
Ending balance, shares at Jan. 31, 2013 | ' | 11,944,544 | ' | ' | ' | 3,798,031 |
Issuance of stock to directors | 40 | ' | -19 | ' | ' | 59 |
Issuance of stock to directors, shares | ' | ' | ' | ' | ' | -10,404 |
Purchase of treasury stock | -128 | ' | ' | ' | ' | -128 |
Purchase of treasury stock, shares | ' | ' | ' | ' | ' | 38,600 |
Exercise of stock options, vesting of restricted stock units and other, net of taxes | 58 | ' | -83 | ' | ' | 141 |
Exercise of stock options, vesting of restricted stock units and other, net of taxes, shares | ' | ' | ' | ' | ' | -25,000 |
Other stock-based compensation | 140 | ' | 140 | ' | ' | ' |
Net loss | -10,183 | ' | ' | -10,183 | ' | ' |
Other comprehensive income (loss) | 100 | ' | ' | ' | 100 | ' |
Ending balance at Jan. 31, 2014 | $64,002 | $119 | $36,413 | $48,459 | $347 | ($21,336) |
Ending balance, shares at Jan. 31, 2014 | ' | 11,944,544 | ' | ' | ' | 3,801,227 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($10,183) | ($9,313) | ($17,579) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' | ' |
Rental asset depreciation expense | 3,920 | 6,187 | 11,042 |
Purchases of rental video | -7,849 | -11,072 | -22,126 |
Property and equipment depreciation expense | 12,552 | 14,948 | 17,026 |
Impairment of goodwill | ' | ' | 147 |
Deferred income taxes | 10 | 8 | 7,725 |
Loss on rental videos lost, stolen and defective | 654 | 985 | 1,293 |
Loss on disposal or impairment of property and equipment, excluding rental assets | 607 | 1,411 | 1,055 |
Non-cash stock-based compensation | 180 | 704 | 1,058 |
Changes in operating assets and liabilities: | ' | ' | ' |
Merchandise inventories | -2,398 | 11,209 | 5,558 |
Prepaid expenses and other current assets | 1,964 | 6,137 | -3,487 |
Trade accounts payable | 861 | 560 | -8,284 |
Accrued expenses and other liabilities | -644 | 1,246 | -177 |
Other assets and liabilities, net | -698 | -806 | 2,229 |
Net cash provided by (used in) operating activities | -1,024 | 22,204 | -4,520 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -10,274 | -9,008 | -15,944 |
Net cash used in investing activities | -10,274 | -9,008 | -15,944 |
Cash flows from financing activities: | ' | ' | ' |
Borrowings under revolving credit facility | 437,022 | 433,850 | 548,413 |
Repayments under revolving credit facility | -427,078 | -445,324 | -526,900 |
Purchase of treasury stock | -128 | -542 | -1,992 |
Dividends paid | ' | -3,062 | ' |
Change in cash overdraft | 1,447 | 1,765 | -1,003 |
Deferred financing costs | ' | -325 | -68 |
Proceeds from exercise of stock options | 58 | ' | 37 |
Net cash provided by (used in) financing activities | 11,321 | -13,638 | 18,487 |
Net increase (decrease) in cash | 23 | -442 | -1,977 |
Cash and cash equivalents at beginning of year | 3,730 | 4,172 | 6,149 |
Cash and cash equivalents at end of year | $3,753 | $3,730 | $4,172 |
Operations_and_Summary_of_Sign
Operations and Summary of Significant Accounting Policies | 12 Months Ended | ||
Jan. 31, 2014 | |||
Operations and Summary of Significant Accounting Policies | ' | ||
-1 | Operations and Summary of Significant Accounting Policies | ||
(a) | General | ||
Hastings Entertainment, Inc. (the “Company,” “Hastings,” or “Hastings Entertainment”) operates a chain of retail stores in 19 states, primarily in the Western and Midwestern United States. Revenues are generated from the sale of new and used books, music, DVDs, video games, and video game consoles, and new software, periodicals, consumables, lifestyles and trends products. In addition, our revenues include the rental of DVDs, Blu-ray DVDs, and video games. | |||
(b) | Basis of Consolidation | ||
The consolidated financial statements present the results of Hastings and its wholly-owned subsidiary. All inter-company transactions and balances have been eliminated in consolidation. | |||
(c) | Basis of Presentation | ||
We operate in one reportable segment. Our fiscal years ended January 31, 2014, 2013 and 2012 are referred to as fiscal 2013, 2012 and 2011, respectively. | |||
(d) Reclassifications | |||
Certain prior period amounts have been reclassified to conform to the current presentation. | |||
(e) | Cash and Cash Equivalents | ||
We consider all debit and credit card receivables totaling approximately $1.5 million and $1.2 million at January 31, 2014 and 2013, respectively, from MasterCard, Visa, Discover, and American Express to be cash equivalents. All balances related to debit and credit card receivables typically settle within five days. We utilize a cash management process under which a book cash overdraft may exist for our primary disbursement accounts. These overdrafts represent un-cleared checks in excess of cash balances in bank accounts at the end of the reporting period and have been reclassified to accounts payable on the consolidated balance sheets. We transfer cash on an as-needed basis to fund clearing checks. | |||
(f) | Revenue Recognition | ||
Merchandise and rental asset revenues are recognized at the point of sale or rental or at the time merchandise is shipped to the customer. Additionally, revenues are presented net of estimated returns and exclude all sales taxes. An allowance has been established to provide for expected merchandise returns. | |||
We reduce our rental revenue through reserves for the estimated utilization of early return credits received by renters for early return of rentals. The reserve is relieved upon the redemption of these early return credits. | |||
We provide our customers with the opportunity to trade in used DVDs, video games, CDs and books in exchange for cash consideration or store credit in the form of a gift card. Used merchandise inventory is recorded at a cost equal to the cash offer to the customer. If a customer chooses store credit, a gift card is issued for the amount of the cash offer plus a premium. Premiums associated with gift cards issued as a result of trade-in transactions are recorded as a reduction of revenue in the period in which the related gift cards are redeemed. | |||
(g) | Gift Cards and Breakage Revenue | ||
We sell gift cards through each of our stores and through our web site www.goHastings.com. The gift cards we sell have no stated expiration dates or fees and are subject to potential escheatment rights in some of the jurisdictions in which we operate. Gift card liabilities are recorded as deferred revenue at the time of sale of such cards with the costs of designing, printing and distributing the cards recorded as expense as incurred. Revenue from sales of gift cards is recognized when the gift card is redeemed by the customer, or the likelihood of a gift card being redeemed by the customer is remote (gift card breakage). Gift card breakage revenue is recognized as gift cards are redeemed, based upon an analysis of the aging and utilization of gift cards, our determination that the likelihood of future redemption is remote and our determination that such balances are not subject to escheatment laws applicable to our operations. For fiscal 2013, 2012 and 2011, we recorded approximately $0.3 million, ($0.1) million and $0.8 million, respectively, of revenue related to gift card breakage. During fiscal 2012, we discontinued recognition of gift card breakage for our Colorado stores per state escheat laws and we decreased the overall gift card breakage percentage, causing a negative amount for the fiscal year. Unredeemed gift cards, net of estimated gift card breakage, approximated $11.9 million at January 31, 2014 and $11.6 million at January 31, 2013. | |||
(h) | Merchandise Inventories | ||
Merchandise inventories are recorded at the lower of cost, which approximates the first-in, first-out (“FIFO”) method, or market. Amounts are presented net of an allowance for shrinkage and obsolescence. | |||
Expenses included in cost of revenues include cost of product purchased from vendors; rental asset depreciation expense; revenue-sharing payments; shrinkage; inventory markdowns and write-offs; freight charges; receiving costs; inspection costs; and internal transfer costs. In addition, we include in cost of revenues all expenses associated with our distribution center, including freight, warehouse personnel costs, supplies, maintenance, depreciation, occupancy, property tax, and utility costs, in addition to costs associated with our returns center, including vendor refused product, handling charges, return fees, freight, return center personnel costs, supplies, maintenance, depreciation, rent and utilities. We include occupancy costs for retail locations in Selling, General and Administrative (“SG&A”) expenses. | |||
We transfer rental assets that have been converted to previously viewed titles for sale, from ‘Rental Assets’ to ‘Merchandise Inventories.’ The transfer to ‘Merchandise Inventories’ is recorded at the time of conversion, which is the first date the product is made available for sale. During fiscal 2013, 2012, and 2011, $4.4 million, $5.2 million, and $10.3 million, respectively, were transferred from rental assets to merchandise inventory at the lower of net book value or market. | |||
Merchandise inventory owned by us is generally returnable based upon return agreements with our merchandise vendors. We continually return merchandise to vendors based on, among other factors, current and projected sales trends, overstock situations, authorized return timelines or changes in product offerings. At the end of any reporting period, in order to appropriately match the costs associated with the return of merchandise with the process of returning such merchandise, returns expense accruals are required for inventory that has been returned to vendors, is in the process of being returned to vendors, or has been identified to be returned to vendors. These costs can include freight, valuation and quantity differences, and other fees charged by a vendor. To accrue for such costs and estimate this allowance, we utilize historical experience adjusted for significant estimated or contractual modifications. Certain adjustments to the allowance can have a material effect on the financial results of an annual or interim period. There were no material adjustments in fiscal 2013, 2012, or 2011. | |||
(i) | Property and Equipment | ||
Property and equipment are recorded at cost and depreciated using the straight-line method, except for rental assets, which are depreciated using an accelerated depreciation method. The cost of property and equipment includes the purchase price and all direct incremental expenditures necessary to render the asset suitable for its intended use and location. Furniture, fixtures, equipment and software are depreciated over their estimated useful lives of three to five years. Leasehold improvements are amortized over the shorter of the related lease term or their estimated useful lives. | |||
Expenditures for maintenance, repairs and renewals that do not materially extend the original useful lives of assets are charged to expense as incurred. | |||
We evaluate underperforming stores on a quarterly basis to determine whether projected future cash flows over the remaining lease term are sufficient to recover the carrying value of the fixed asset investment in each individual store. If projected future cash flows are less than the carrying value of the fixed asset investment, an impairment charge is recognized if the estimated fair value is less than the carrying value of such assets. The carrying value of leasehold improvements as well as certain other property and equipment is subject to impairment write-down. | |||
(j) | Rental Asset Depreciation | ||
Rental assets, except for initial purchases for new stores, are depreciated using an accelerated method over six months or nine months. The initial purchases of rental assets for new stores are depreciated over 36 months using the straight-line method. Rental assets, which include DVDs, Blu-rays, and video games, are depreciated to salvage values ranging from $4 to $15. Rental assets purchased for less than established salvage values are not depreciated. | |||
(k) | Financial Instruments | ||
Our financial instruments include cash and cash equivalents, available for sale investments related to our non-qualified supplemental executive retirement plan, accounts payable, and long-term debt. The fair value of cash and cash equivalents and accounts payable approximates carrying values due to their short-term duration. See Note 7 Fair Value Measurements for discussion of the fair value of the available for sale investments and long-term debt. | |||
(l) | Stock Based Compensation | ||
Determining the amount of stock-based compensation expense requires us to develop estimates that are used in calculating the grant-date fair value of stock options. In determining the fair value of stock options, we use the Black-Scholes valuation model, which requires us to make estimates of the following assumptions: | |||
· | Expected volatility – The estimated stock price volatility is derived based upon our historical stock prices over the expected life of the option. | ||
· | Expected life of the option – The estimate of an expected life is calculated based on historical data relating to grants, exercises, and cancellations and the vesting period and contractual life of the option. | ||
· | Risk-free interest rate – The risk-free interest rate is based on the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected life of the option. | ||
· | Expected dividend yield – The estimated rate based on the stock’s current market price and forecasted dividend payout. | ||
Our stock price volatility and expected option lives involve management’s best estimates at the time the valuation is conducted, both of which impact the fair value of the option calculated under the Black-Scholes pricing model and, ultimately, the expense that will be recognized over the vesting period of the option. | |||
We recognize compensation expense only for the portion of options that are expected to vest. Therefore, we apply estimated forfeiture rates that are derived from historical employee termination behavior. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods. | |||
In addition to stock options, we award restricted stock units. The grant date fair value of restricted stock units is equal to the average of the opening and closing stock price on the day on which they are granted. | |||
(m) | Advertising Costs | ||
Advertising costs for newspaper, television and other media are expensed as incurred. Advertising expenses, net of reimbursement allowances from vendors, for fiscal years 2013, 2012, and 2011 were $4.4 million, $6.0 million, and $7.2 million, respectively. | |||
We receive payments and credits from vendors pursuant to cooperative advertising programs and display allowance agreements. During fiscal years 2013, 2012, and 2011, we received a total of approximately $6.2 million, $6.6 million, and $6.7 million, respectively, for such payments and credits. To the extent such payments are a reimbursement for a specific incremental and identifiable cost such amounts are recorded as a reduction in SG&A expenses at the time the associated advertisement is publicly released. The remainder of these payments and allowances are recorded as a reduction of merchandise inventory and the cost of rental assets and recognized in income as the related product is sold or rented. | |||
(n) | Earnings Per Share | ||
Basic earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is similarly computed, but includes the dilutive effect of stock-based awards. | |||
(o) | Use of Management Estimates | ||
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
(p) | Impact of Recently Issued Accounting Standards | ||
During February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-02: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (“GAAP”) to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (for example, inventory) instead of directly to income or expense in the same reporting period. | |||
In July 2013, the Financial Accounting Standards Board issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires unrecognized tax benefits to be presented as a decrease in a net operating loss, similar tax loss or tax credit carryforward if certain criteria are met. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on the Company’s consolidated financial statements. |
Merchandise_Inventories
Merchandise Inventories | 12 Months Ended | |||||||||
Jan. 31, 2014 | ||||||||||
Merchandise Inventories | ' | |||||||||
-2 | Merchandise Inventories | |||||||||
Merchandise inventories consist of the following: | ||||||||||
January 31, | ||||||||||
2014 | 2013 | |||||||||
Books | $ | 41,623 | $ | 47,537 | ||||||
Videos | 37,921 | 39,171 | ||||||||
Video Games | 13,758 | 12,570 | ||||||||
Music | 18,092 | 19,631 | ||||||||
Trends | 24,237 | 18,232 | ||||||||
Consumer Electronics | 13,790 | 10,183 | ||||||||
Other | 6,390 | 1,851 | ||||||||
155,811 | 149,175 | |||||||||
Less allowance for inventory shrinkage and obsolescence | 3,673 | 3,838 | ||||||||
$ | 152,138 | $ | 145,337 | |||||||
During fiscal 2013 and 2012, we purchased approximately 21% and 18%, respectively, of all products (defined herein as merchandise inventories and rental assets) from our top three vendors. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Property and Equipment | ' | |||||||
-3 | Property and Equipment | |||||||
Property and equipment consist of the following: | ||||||||
January 31, | ||||||||
2014 | 2013 | |||||||
Furniture, equipment and software | $ | 191,465 | $ | 188,438 | ||||
Leasehold improvements | 68,100 | 69,855 | ||||||
Buildings and land | 258 | 258 | ||||||
Work in progress | 360 | 1,016 | ||||||
260,183 | 259,567 | |||||||
Less accumulated depreciation | 230,971 | 227,468 | ||||||
Property and equipment, net | $ | 29,212 | $ | 32,099 | ||||
During fiscal 2013, 2012, and 2011, we recorded impairment charges of approximately $0.3 million, $1.4 million, and $0.8 million, respectively, which are included in SG&A expenses. See Note 7 on Fair Value Measurements for a discussion of the inputs used to estimate the fair value of store assets and the related impairment charges. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
-4 | Accrued Expenses and Other Current Liabilities | |||||||
Accrued expenses and other current liabilities consist of the following: | ||||||||
January 31, | ||||||||
2014 | 2013 | |||||||
Deferred gift card revenue | $ | 11,885 | $ | 11,610 | ||||
Salaries, vacation, bonus and benefits | 4,956 | 4,604 | ||||||
Supplemental executive retirement plan | 1,607 | — | ||||||
Early return credit reserve | 1,567 | 1,741 | ||||||
Real property tax | 1,533 | 1,354 | ||||||
Short term lease obligations | 1,190 | 1,814 | ||||||
Sales taxes payable | 930 | 1,052 | ||||||
Allowance for cost of inventory returns | 597 | 813 | ||||||
State income tax payable | 332 | 754 | ||||||
Other accrued expenses | 3,762 | 3,654 | ||||||
Total | $ | 28,359 | $ | 27,396 | ||||
Merchandise inventories that are not sold generally can be returned to the vendors. The allowance for cost of inventory returns represents estimated costs related to merchandise returned or to be returned to vendors for which credit from the vendor is pending. Because the amount of credit to be received requires estimation, it is reasonably possible that our estimate of the ultimate settlement with our vendors may change in the near term. See Note 1 Merchandise Inventories for additional discussion. | ||||||||
Deferred gift card revenue as of the end of each period reflects our estimate of breakage on previously issued and sold gift cards. |
Store_Closing_Reserve
Store Closing Reserve | 12 Months Ended | |||
Jan. 31, 2014 | ||||
Store Closing Reserve | ' | |||
-5 | Store Closing Reserve | |||
From time to time and in the normal course of business, we evaluate our store base to determine if we need to close a store. Such evaluations include consideration of, among other factors, current and future expected profitability, market trends, age of store and lease status. | ||||
Amounts in “Accrued expenses and other current liabilities” and “Other liabilities” at January 31, 2014 included the current and long-term portions, respectively, of accruals for the net present value of future minimum lease payments, net of estimated sublease income, attributable to closed stores. Expenses related to store closings are included in SG&A expenses. | ||||
The following table provides a roll-forward of our store closing reserve: | ||||
Store Closing | ||||
Reserve | ||||
Balance at January 31, 2012 | $ | 2,558 | ||
Additions to provision | — | |||
Changes in estimates | 339 | |||
Cash outlay, net | (792 | ) | ||
Balance at January 31, 2013 | $ | 2,105 | ||
Additions to provision | — | |||
Changes in estimates | 382 | |||
Cash outlay, net | (1,374 | ) | ||
Balance at January 31, 2014 | $ | 1,113 | ||
Longterm_Debt
Long-term Debt | 12 Months Ended | |
Jan. 31, 2014 | ||
Long-term Debt | ' | |
-6 | Long-term Debt | |
On January 31, 2014 and January 31, 2013, the outstanding borrowings on our revolving credit facility were $51.7 million and $41.8 million, respectively. | ||
We have entered into an Amended and Restated Loan and Security Agreement with Bank of America, N.A., as agent (as subsequently amended, the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility of $115 million, allows for the payment of dividends, has a maturity date of January 4, 2017, and provides that we may repurchase up to $10.0 million worth of our common stock. The Credit Agreement also provides that we may repurchase additional shares of our common stock in the event we meet certain criteria set forth in the Credit Agreement. The Credit Agreement includes certain debt and acquisition limitations and requires a minimum Availability (as defined in the Credit Agreement) that is greater than or equal to $10.0 million at all times. Our obligations under the Credit Agreement are secured by a pledge of substantially all of the assets of the Company and our subsidiary and are guaranteed by our subsidiary. | ||
The amount outstanding under the Credit Agreement is limited by a borrowing base predicated on the sum of (a) 85% of Eligible Credit Card Receivables plus (b) either (i) at all times during the year, other than those stated in (ii), 90% of the liquidation value of eligible inventory or (ii) from September 1st through and including December 27th of each year, 92.5% of the liquidation value of eligible inventory, less (c) Availability Reserves and is limited to a ceiling of $115 million, less a minimum availability reserve that is greater than or equal to 10% of the lesser of (a) the Borrowing Base, or (b) the Revolving Credit Ceiling (each term as defined in the Credit Agreement), provided however that we must also maintain Availability that is greater than or equal to $10 million at all times. The lender may increase specifically defined reserves to reduce availability in the event of adverse changes in our industry or our financial condition that are projected to impact the value of our assets pledged as collateral. The lender must exercise reasonable judgment and act in good faith with respect to any changes in the specifically defined reserves. | ||
Interest under the Credit Agreement will accrue, at our election, at a Base Rate or Libor Rate, plus, in each case, an Applicable Margin, which is determined by reference to the level of Availability as defined in the Credit Agreement, with the Applicable Margin for Libor Rate loans ranging from 2.00% to 2.50% and the Applicable Margin for Base Rate loans ranging from 1.00% to 1.50%. In addition, unused line fees ranging from 0.30% to 0.375% (determined by reference to the level of usage under the Credit Agreement) are also payable on unused commitments. | ||
We utilize standby letters of credit to support certain insurance policies. The aggregate amount of the letters of credit at January 31, 2014, was approximately $0.8 million, which reduces the excess availability under the Credit Agreement. | ||
At January 31, 2014, we had approximately $49.7 million in excess availability, after the availability reserve, under the Credit Agreement. The average rate of interest incurred for both fiscal years ended January 31, 2014 and 2013 was 2.5%. Deferred financing costs that were amortized into interest expense during the fiscal years ended January 31, 2014 and 2013 are excluded from the calculation of the average rate of interest for the respective period. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |
Jan. 31, 2014 | ||
Fair Value Measurements | ' | |
-7 | Fair Value Measurements | |
We account for certain assets and liabilities at fair value on either a recurring or non-recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. These levels are: | ||
· | Level 1 – Observable inputs – quoted prices in active markets for identical assets and liabilities; | |
· | Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities – includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets; and | |
· | Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions. | |
At January 31, 2014 and 2013, we had approximately $1.9 million and $2.1 million, respectively, in assets that are carried at fair value on a recurring basis. These assets consist of available-for-sale investments related to our non-qualified supplemental executive retirement plan (“SERP”). The fair value of these investments was determined using Level 1 inputs. | ||
During fiscal 2013, 2012 and 2011, we recognized charges for non-financial assets measured at fair value on a non-recurring basis, related to our store asset impairments. The store asset impairment calculation compared the carrying amount of property and equipment to the individual stores’ fair values based on projected cash flows that we estimated would be used by a market participant in valuing these assets, a Level 3 input. Projected cash flows consist of store level EBIT which is then adjusted for depreciation and corporate overhead allocation and then multiplied by the remaining lease life to arrive at projected cash flows for impairment analysis purposes. | ||
During fiscal 2013, 2012 and 2011, we also recognized charges for non-financial liabilities measured at fair value on a non-recurring basis, related to our store closing reserve. Amounts recognized included accruals for the net present value of minimum lease payments, net of estimated sublease income, attributable to closed stores. These inputs are classified as Level 3 inputs. | ||
The carrying value of our long-term debt approximates its fair value as of January 31, 2014 and 2013, due to the instrument bearing interest at variable rates that are comparable to what is currently available to us. On January 4, 2013, we entered into an amendment to our Credit Agreement, at which time our current interest rates were determined. See Note 6 on Debt for a more detailed discussion of the Credit Agreement. |
Leases
Leases | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Leases | ' | |||||||||||
-8 | Leases | |||||||||||
We lease retail space under operating leases with terms ranging from five to fifteen years, with certain leases containing renewal options. Renewal options are typically for five years and contain terms similar to those of the original lease. Lease agreements generally provide for minimum rentals. Some leases also include additional contingent rental amounts based upon specified percentages of sales above predetermined levels. Rental costs associated with operating leases that are incurred during a construction period are recognized as rental expense. Rental expense for operating leases is comprised of the following: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Minimum rentals | $ | 25,409 | $ | 26,125 | $ | 27,253 | ||||||
Contingent rentals | 17 | 31 | 37 | |||||||||
Less sublease income | (111 | ) | (145 | ) | (71 | ) | ||||||
Rental expense | $ | 25,315 | $ | 26,011 | $ | 27,219 | ||||||
Future minimum lease payments under non-cancelable operating leases as of January 31, 2014 are: | ||||||||||||
2014 | $ | 25,724 | ||||||||||
2015 | 22,868 | |||||||||||
2016 | 20,726 | |||||||||||
2017 | 18,623 | |||||||||||
2018 | 15,296 | |||||||||||
Thereafter | 25,396 | |||||||||||
Total minimum lease payments | 128,633 | |||||||||||
Less sublease income | — | |||||||||||
Net minimum lease payments under operating leases | $ | 128,633 | ||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||||||
-9 | Income Taxes | |||||||||||||||||||||||
Income tax expense (benefit) is comprised of the following: | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Current federal | $ | — | $ | — | $ | (3,124 | ) | |||||||||||||||||
Current state and local | (254 | ) | 289 | 283 | ||||||||||||||||||||
Deferred federal, state, and local | 10 | 8 | 7,725 | |||||||||||||||||||||
$ | (244 | ) | $ | 297 | $ | 4,884 | ||||||||||||||||||
The difference between expected federal income tax expense based upon statutory rates and actual income tax expense is as follows: | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Expected federal income tax benefit at statutory rate | $ | (3,545 | ) | (34.0 | %) | $ | (3,065 | ) | (34.0 | %) | $ | (4,316 | ) | (34.0 | %) | |||||||||
State and local income tax benefits, net of federal income tax effect | (140 | ) | (1.3 | %) | (86 | ) | (1.0 | %) | (164 | ) | (1.3 | %) | ||||||||||||
Valuation allowance | 3,729 | 35.8 | % | 3,189 | 35.4 | % | 8,617 | 67.9 | % | |||||||||||||||
Return to provision adjustment | — | 0 | % | 38 | 0.4 | % | 485 | 3.8 | % | |||||||||||||||
Other | -288 | (2.8 | %) | 221 | 2.5 | % | 262 | 2.1 | % | |||||||||||||||
$ | -244 | (2.3 | %) | $ | 297 | 3.3 | % | $ | 4,884 | 38.5 | % | |||||||||||||
Deferred income taxes have been established based upon the temporary differences between the financial statement and income tax bases of assets and liabilities. The reversal of the temporary differences will result in taxable or deductible amounts in future years when the related asset or liability is recovered or settled. A valuation allowance is required if it is more likely than not that a deferred tax asset will not be realized. In assessing the need for a valuation allowance, we considered all available positive and negative evidence, including our ability to carry back operating losses to prior periods, projected future taxable income, tax planning strategies and the reversal of deferred tax liabilities. Based on this analysis, we determined that it was more likely than not that our deferred tax assets will not be realized. As such, we established a valuation allowance of approximately $8.6 million as of January 31, 2012, which has increased to $14.3 million by January 31, 2014. We reassess the valuation allowance quarterly, and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||
Deferred gift card revenue | $ | 3,604 | $ | 3,410 | ||||||||||||||||||||
Deferred rent and lease incentives | 1,993 | 2,122 | ||||||||||||||||||||||
Inventories | 2,212 | 1,439 | ||||||||||||||||||||||
Property and equipment | 6,500 | 6,385 | ||||||||||||||||||||||
Abandoned leases | 417 | 789 | ||||||||||||||||||||||
Operating loss carryforwards | 2,484 | 422 | ||||||||||||||||||||||
Other | 2,006 | 2,250 | ||||||||||||||||||||||
Total deferred tax assets | 19,216 | 16,817 | ||||||||||||||||||||||
Valuation allowance | (14,357 | ) | (11,019 | ) | ||||||||||||||||||||
Net deferred tax assets | 4,859 | 5,798 | ||||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||
Rental assets | (4,919 | ) | (5,848 | ) | ||||||||||||||||||||
Total deferred tax liabilities | (4,919 | ) | (5,848 | ) | ||||||||||||||||||||
Net deferred tax liabilities | $ | (60 | ) | $ | (50 | ) | ||||||||||||||||||
Included in total deferred tax assets are net U.S. operating loss carryforwards of $11.4 million that expire in fiscal years 2030-2032. | ||||||||||||||||||||||||
We follow the provisions of ASC 740, Income Taxes, which clarifies the accounting and disclosure for uncertainty in income taxes. Below is a reconciliation of the beginning and ending amount of unrecognized tax benefits relating to uncertain tax positions, which are recorded in our Consolidated Balance Sheets. | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Unrecognized tax positions at beginning of period | $ | 186 | $ | 186 | $ | 186 | ||||||||||||||||||
Increases in tax positions from prior years | — | — | — | |||||||||||||||||||||
Decreases in tax positions from prior years | 181 | — | — | |||||||||||||||||||||
Increases in tax positions from current year | — | — | — | |||||||||||||||||||||
Settlements with taxing authorities | — | — | — | |||||||||||||||||||||
Lapse in statute of limitations | — | — | — | |||||||||||||||||||||
Unrecognized tax positions at end of period | $ | 5 | $ | 186 | $ | 186 | ||||||||||||||||||
As of January 31, 2014 and January 31, 2013, the Company had unrecognized tax benefits related to certain state jurisdictions in the amount of approximately $5,000 and $186,000, respectively. If recognized, this amount would result in a favorable effect on our effective tax rate. | ||||||||||||||||||||||||
We classify interest expense and penalties related to our uncertain tax positions as a component of income tax expense in the statement of operations. As of January 31, 2014 and 2013, we had current liabilities for penalties and interest in the amount of approximately $6,000 and $284,000, respectively. We recognized approximately $(278,000), $12,000, and $12,000 of interest and penalties as a component of income tax during each of the fiscal years ended January 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||||||
Hastings and its subsidiary file a consolidated U.S. Federal income tax return as well as separate, unitary and combined income tax returns in several state jurisdictions. The Company has substantially concluded all federal income tax matters and is no longer subject to U.S. federal income tax examination by tax authorities for fiscal years prior to fiscal 2011. State jurisdictions have statutes of limitations generally ranging from three to five years. |
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | |||
Jan. 31, 2014 | ||||
Other Comprehensive Income | ' | |||
(10) Other Comprehensive Income | ||||
Changes in the balances of each component of other comprehensive income (“OCI”) included in accumulated OCI for the year ended January 31, 2014 are presented below. All amounts are net of tax. | ||||
Net Unrealized Gain (Loss) on | ||||
Available-for Sale Securities in | ||||
Supplemental Executive | ||||
Retirement Plan | ||||
Balance at January 31, 2013 | $ | 247 | ||
Other comprehensive income before reclassifications | 143 | |||
Amounts reclassified from accumulated OCI, included in Other Income (Expense) | (43 | ) | ||
Balance as of January 31, 2014 | $ | 347 | ||
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||
-11 | Earnings (Loss) Per Share | |||||||||||
The computations of basic and diluted loss per share are as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income (loss) | $ | (10,183 | ) | $ | (9,313 | ) | $ | (17,579 | ) | |||
Average shares outstanding: | ||||||||||||
Basic | 8,142 | 8,202 | 8,556 | |||||||||
Diluted | 8,142 | 8,202 | 8,556 | |||||||||
Earnings (loss) per share: | ||||||||||||
Basic | $ | (1.25 | ) | $ | (1.14 | ) | $ | (2.05 | ) | |||
Diluted | $ | (1.25 | ) | $ | (1.14 | ) | $ | (2.05 | ) | |||
Options to purchase 520,777, 782,443, and 655,083 shares of common stock outstanding at January 31, 2014, 2013, and 2012, respectively, were not included in the computation of diluted income per share because their inclusion would have been anti-dilutive. |
Benefit_Plans
Benefit Plans | 12 Months Ended | |
Jan. 31, 2014 | ||
Benefit Plans | ' | |
-12 | Benefit Plans | |
Our 401(k) plan permits full-time employees who have attained age 21 and part-time employees who have worked a minimum of 1,000 hours in a year and have attained age 21 to participate in the 401(k) plan and elect to contribute up to 25% of their salary, subject to federal limitations, to the plan. Employer contributions include a quarterly guaranteed match of 25% of employee contributions up to a maximum of 6% deferral of compensation and are allocated solely to those employees who are participating in the plan and are employed on the last day of the plan quarter or who became disabled or have died or retired during the plan quarter. Also included is a discretionary match based on specific criteria reviewed every fiscal six-month period by management and approved by the Board of Directors. This discretionary match is allocated solely to those employees who are participating in the plan and are employed on the last day of the six-month period. Discretionary matching amounts are not material to the financial statements or results of operations. Amounts expensed related to the 401(k) plan were approximately $0.2 million, $0.3 million, and $0.2 million for fiscal 2013, 2012, and 2011, respectively. | ||
Our Associate Stock Ownership Plan (“ASOP”) permits full-time employees who have attained age 21 and completed one year of service and part-time employees who have worked a minimum of 1,000 hours in a year and have attained age 21 to participate in the ASOP. Employer contributions are determined at the discretion of the Board of Directors. The Board of Directors elected not to contribute to the ASOP during fiscal years 2013, 2012 or 2011, nor do they plan to contribute to the plan during fiscal 2014. The contribution is based on a percentage of participants’ eligible compensation. Common shares held by the ASOP were 323,266, 350,372, and 352,414, at January 31, 2014, 2013, and 2012, respectively. Shares issued and held under the ASOP are included as outstanding shares for the purposes of calculating earnings per share. | ||
Until February 25, 2013, we maintained a defined contribution supplemental executive retirement plan (“SERP”). The SERP provided eligible executives with supplemental pension benefits in addition to amounts received under our other retirement plans. Annual contributions ranged from 5% to 10% of base pay plus bonus depending upon the participant’s age. For each of the five plan years beginning January 1, 2006 and ending December 31, 2010, we contributed, as a transitional contribution, an additional 10% of base pay plus bonus for participants, the sum of whose age and service with the Company was at least 60 on January 1, 2006. Contributions into the SERP were invested in available-for-sale securities. As of January 31, 2014, we had approximately $1.9 million in SERP assets, which are recorded at fair value on the consolidated balance sheets in “Current Assets.” As of January 31, 2013, we had approximately $2.1 million in SERP assets, which were recorded at fair value on the consolidated balance sheets in “Other Assets.” The SERP accounts vested on the earliest occurrence of (i) the date the sum of the participant’s age and service with the Company equals 60, (ii) the participant’s death, (iii) the participant’s disability, (iv) the date of involuntary termination occurring within two years from the date of a change in control, or (v) the date the participant’s employment is terminated without cause, all as defined in the SERP. We recorded expenses related to the SERP of approximately $0.1 million, $0.3 million and $0.2 million during the fiscal years ended January 31, 2014, 2013, and 2012, respectively. As of February 25, 2013, the Board of Directors elected to terminate the SERP. The SERP assets were distributed in September 2013 to the four officers who were terminated as a result of the February 2013 restructuring, and the remaining SERP assets were distributed in February 2014. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |
Jan. 31, 2014 | ||
Shareholders' Equity | ' | |
-13 | Shareholders’ Equity | |
We have three stock award plans: the 2006 and 2010 Incentive Stock Plans; and the 2012 Outside Directors Plans (for non-employee directors). A total of 500,000 shares may be granted under each of the 2006 and 2010 Incentive Stock Plans and 50,000 shares may be granted under the 2012 Outside Directors Plan. As of January 31, 2014, we had 296,396 shares available for future grants under all stock award plans. | ||
The 2006 and 2010 Incentive Stock Plans and the 2012 Outside Directors Plan (for non-employee directors only) authorize the award of both incentive stock options and non-qualified stock options to purchase common stock to officers, other associates and directors of the Company. The exercise price per share of incentive stock options may not be less than the market price of our common stock on the date the option is granted. The term of each option is determined by the Board of Directors and generally will not exceed ten years from the date of grant. In general, each option award vests at twenty percent per year over five years. | ||
The 2006 and 2010 Incentive Stock Plans and the 2012 Outside Directors Plan (for non-employee directors only) also authorize the granting of stock appreciation rights, restricted stock, dividend equivalent rights, stock awards, and other stock-based awards to officers, other associates, directors, and consultants of the Company. | ||
We also have one stock grant plan, the 2012 Stock Grant Plan for Outside Directors, which authorizes the granting of shares of stock to outside directors. We issue annual grants of shares of common stock valued at $10,000 per outside director from this plan. As of January 31, 2014, we have 20,180 shares remaining under the 2012 Stock Grant Plan for Outside Directors. | ||
On December 4, 2009, we entered into a stock transfer agreement with the Marmaduke Family Limited Partnership (the “Partnership”). Under the stock transfer agreement, for a period of three years following the death of Mr. John H. Marmaduke, the Company’s Chief Executive Officer, the Partnership may tender for purchase to the Company, and, if so tendered, the Company will be required to purchase, the number of shares of the Company’s common stock belonging to the Partnership that equal an aggregate fair market value of $5.0 million. During this three year period, the Partnership may elect to tender portions of such shares in various lots and parcels, at any time and from time to time, and any tender shall not exhaust or limit the Partnership’s right to tender an additional amount of such shares, subject to the limitations set within the stock transfer agreement. Under the stock transfer agreement, the Company is not obligated to purchase, and the Partnership does not have the right to tender, any amount of such shares with an aggregate fair market value in excess of $5.0 million. In the event that Mr. Marmaduke resigns as an officer or director of the Company prior to his death, the Partnership’s right to tender the shares to the Company shall terminate. The stock transfer agreement shall terminate on the earlier of February 9, 2019, or four years after the death of Mr. Marmaduke. The Company is currently the beneficiary of a $10 million key-man life insurance policy on Mr. Marmaduke, a portion of the proceeds of which would be used to complete any purchases of shares resulting from the stock transfer agreement. | ||
We did not pay any dividend during the fiscal year ending January 31, 2014. An annual dividend of $0.02 per share and a special dividend of $0.35 per share were paid during the fiscal year ending January 31, 2013. Under the Merger Agreement described under the heading “Merger Agreement” in Item 1 of this Annual Report on Form 10-K, the Company is not permitted to pay dividends without Parent’s consent.. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||
-14 | Stock-Based Compensation | |||||||||||||||||||||||
Compensation expense for all stock option awards is measured at fair value on the date of the grant and such cost is recognized over the service period for awards that are expected to vest. The fair value of restricted stock units is based on the number of shares granted and the average of the opening and closing stock price on the day on which they are granted. We use the Black-Scholes valuation model in order to determine the fair value of stock option grants on the date of grant. | ||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||
Under our incentive stock plans, options may be granted to directors, officers and associates with an exercise price equal to the fair market value of our common stock on the date of grant. Stock option grants generally vest ratably over five years and expire within ten years after the date of grant. Shares issued upon exercise of options are issued from treasury shares. | ||||||||||||||||||||||||
The following assumptions were used in the calculation of fair value: | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Expected dividend yield | 0.51 | % | 0.94 | % | — | |||||||||||||||||||
Risk-free interest rate | 1.24 | % | 0.75 | % | 1.53 | % | ||||||||||||||||||
Expected life in years | 5 | 5.44 | 5 | |||||||||||||||||||||
Historical Volatility | 0.57 | 0.51 | 0.51 | |||||||||||||||||||||
A summary of information with respect to stock option plans for fiscal years 2013, 2012, and 2011, and changes during the periods then ended, is presented below. | ||||||||||||||||||||||||
Options (in | Weighted- | |||||||||||||||||||||||
actual shares) | average exercise | |||||||||||||||||||||||
price | ||||||||||||||||||||||||
Outstanding at January 31, 2011 | 777,193 | $ | 4.54 | |||||||||||||||||||||
Granted | 10,120 | 4.06 | ||||||||||||||||||||||
Exercised | (12,530 | ) | 2.99 | |||||||||||||||||||||
Forfeited and expired | (119,700 | ) | 3.88 | |||||||||||||||||||||
Outstanding at January 31, 2012 | 655,083 | $ | 4.68 | |||||||||||||||||||||
Granted | 140,420 | 2.08 | ||||||||||||||||||||||
Exercised | — | — | ||||||||||||||||||||||
Forfeited and expired | (13,060 | ) | 5.17 | |||||||||||||||||||||
Outstanding at January 31, 2013 | 782,443 | $ | 4.21 | |||||||||||||||||||||
Granted | 10,120 | 3.85 | ||||||||||||||||||||||
Exercised | -25,000 | 2.3 | ||||||||||||||||||||||
Forfeited and expired | (246,786 | ) | 3.63 | |||||||||||||||||||||
Outstanding at January 31, 2014 | 520,777 | $ | 4.57 | |||||||||||||||||||||
The total intrinsic value of stock options exercised for the fiscal years ended January 31, 2014, 2013 and 2012 was approximately $4,000, $0, and $7,000, respectively. The total fair value of stock options granted for the fiscal years ended January 31, 2014, 2013 and 2012 was approximately $18,000, $129,000 and $19,000, respectively. The total fair value of stock option shares vested during the fiscal years ended January 31, 2014, 2013 and 2012 was approximately $162,000, $210,000 and $241,000, respectively. | ||||||||||||||||||||||||
As of January 31, 2014 and 2013, we had a total of 157,054 options with a weighted average exercise price of $3.63 and 309,994 options with a weighted average exercise price of $3.90, respectively, that were unvested. | ||||||||||||||||||||||||
Due to a corporate restructuring initiated on February 15, 2013, options of certain terminated associates were forfeited and are no longer considered outstanding. | ||||||||||||||||||||||||
At January 31, 2014, the options outstanding, both exercisable and unexercisable, and their related weighted-average exercise price, and the weighted-average remaining contractual life for the ranges of exercise prices are shown in the table below. | ||||||||||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||||||||||||
average exercise | average | intrinsic value | ||||||||||||||||||||||
price | remaining | |||||||||||||||||||||||
contractual life | ||||||||||||||||||||||||
Range: $1.69 to $4.99 | ||||||||||||||||||||||||
Options outstanding and exercisable at January 31, 2014 | 182,967 | $ | 3.18 | 5.02 years | $ | — | ||||||||||||||||||
Options outstanding and unexercisable at January 31, 2014 | 117,006 | $ | 2.62 | 8.40 years | $ | — | ||||||||||||||||||
Range: $5.00 to $8.70 | ||||||||||||||||||||||||
Options outstanding and exercisable at January 31, 2014 | 180,756 | $ | 6.79 | 3.83 years | $ | — | ||||||||||||||||||
Options outstanding and unexercisable at January 31, 2014 | 40,048 | $ | 6.57 | 6.79 years | $ | — | ||||||||||||||||||
At January 31, 2014, the number of options exercisable was 363,723 and the weighted-average exercise price of those options was $4.97. | ||||||||||||||||||||||||
The per share weighted-average exercise price and the per share weighted-average fair value of stock options at the date of grant, using the Black-Scholes option-pricing model are as follows: | ||||||||||||||||||||||||
Weighted Average Exercise price for | Weighted Average Fair value for | |||||||||||||||||||||||
Fiscal Year | Fiscal Year | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Options granted at market price | $ | 3.85 | $ | 2.05 | $ | 4.06 | $ | 1.83 | $ | 0.87 | $ | 1.85 | ||||||||||||
Options granted at prices exceeding market price | $ | — | $ | 2.26 | $ | — | $ | — | $ | 0.68 | $ | — | ||||||||||||
Total options granted | $ | 3.85 | $ | 2.08 | $ | 4.06 | $ | 1.83 | $ | 0.84 | $ | 1.85 | ||||||||||||
Restricted Stock Awards | ||||||||||||||||||||||||
Restricted stock awards, including restricted stock units and performance-based restricted stock awards, may be granted to eligible directors, officers, and associates with a grant date fair value equal to the average of the opening and closing stock price of our common stock on the day on which they are granted. Restricted stock units entitle the grantee to receive shares of stock at the end of a vesting period, based solely on the grantee’s continuing employment. Restricted stock units will typically vest ratably over two years from the date of grant. Performance-based restricted stock awards have specific performance conditions that must be met before shares will be issued. Once issued, the shares typically vest ratably over two years from the date the performance conditions are achieved. Compensation expense for performance-based restricted stock awards is recognized from the date of grant through the vesting date, once it is deemed probable that the performance conditions will be met. | ||||||||||||||||||||||||
A summary of information with respect to restricted stock awards for fiscal years 2013, 2012, and 2011, and changes during the periods then ended, is presented below. | ||||||||||||||||||||||||
Awards | Weighted-average | |||||||||||||||||||||||
(in actual shares) | grant date fair value | |||||||||||||||||||||||
Outstanding at January 31, 2011 | 315,282 | $ | 5.83 | |||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||
Vested | (191,324 | ) | 5.46 | |||||||||||||||||||||
Forfeited and expired | (45,208 | ) | 5.94 | |||||||||||||||||||||
Outstanding at January 31, 2012 | 78,750 | $ | 6.45 | |||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||
Vested | (78,750 | ) | 2 | |||||||||||||||||||||
Forfeited and expired | — | — | ||||||||||||||||||||||
Outstanding at January 31, 2013 | — | $ | — | |||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||
Vested | — | — | ||||||||||||||||||||||
Forfeited and expired | — | — | ||||||||||||||||||||||
Outstanding at January 31, 2014 | — | $ | — | |||||||||||||||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |
Jan. 31, 2014 | ||
Supplemental Cash Flow Information | ' | |
-15 | Supplemental Cash Flow Information | |
Cash payments for interest during fiscal 2013, 2012 and 2011 totaled $1.3 million, $1.3 million, and $1.4 million, respectively. Net cash payments (refunds) for income taxes during fiscal 2013, 2012 and 2011 totaled $0.2 million, ($5.3) million and ($0.2) million, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Jan. 31, 2014 | ||
Commitments and Contingencies | ' | |
-16 | Commitments and Contingencies | |
Revenue Sharing Agreements | ||
The Company is obligated to pay certain studios minimum amounts associated with certain revenue-sharing agreements related to rental assets. As of January 31, 2014, such minimum future payments approximated $1.1 million, which are expected to be paid during fiscal 2014. | ||
Legal Matters | ||
We are involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our financial position, results of operations or cash flows. | ||
On March 28, 2014, a lawsuit challenging the Merger, captioned CV-00072-J—Andreas Oberegger and David A. Capps, directly and derivatively on behalf of Hastings Entertainment, Inc., v. Danny W. Gurr, Ann S. Lieff, Frank O. Marrs, John H. Marmaduke, Jeffrey G. Shrader, Draw Another Circle, LLC, Hendrix Acquisition Corp., Joel Weinshanker and National Entertainment Collectibles Association, Inc., as defendants, and Hastings Entertainment, Inc., as a nominal defendant, was filed in the United States District Court for the Northern District of Texas, Amarillo Division. The plaintiffs are purported shareholders of the Company and are alleging several claims in connection with the Merger Agreement and the transactions contemplated therein. Plaintiffs allege, among other things, that the Merger contemplated in the Merger Agreement provides for insufficient consideration to be paid to the Company’s shareholders in exchange for their shares of the Company’s common stock, that the officers and directors of the Company breached their respective fiduciary duties in the course of negotiating and approving the Merger Agreement and that the other defendants aided and abetted such breach of fiduciary duties. The lawsuit seeks to enjoin the Merger or rescind the Merger if it is consummated and compensatory damages in an unspecified amount. The Company believes that the lawsuit was improperly and prematurely filed under Texas law. On April 16, 2014, the Company filed a Motion to Dismiss the Action, and Parent, Merger Sub, NECA and Mr. Weinshanker filed a Joinder to this Motion to Dismiss the Action on April 18, 2014. The Court has not yet ruled on the motion. The Company’s management believes that the lawsuit’s allegations are without merit and intends to vigorously defend themselves. | ||
Prior to filing the lawsuit, the plaintiffs’ counsel sent the Company a demand letter dated March 20, 2014 demanding that the Board of Directors commence an action on behalf of the Company against the Directors. The Board of Directors appointed a Special Committee composed of independent directors to review the plaintiffs’ allegations. The Committee has not yet completed its review or made any determination as to what action, if any, should be taken in response to those allegations. |
Interim_Financial_Results_Unau
Interim Financial Results (Unaudited) | 12 Months Ended | |||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||
Interim Financial Results (Unaudited) | ' | |||||||||||||||||
-17 | Interim Financial Results (Unaudited) | |||||||||||||||||
Fiscal year 2013: | Quarter | |||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||
Total revenues | $ | 109,128 | $ | 95,781 | $ | 94,672 | $ | 136,381 | ||||||||||
Total cost of revenues | 69,337 | 60,162 | 60,731 | 91,480 | ||||||||||||||
Gross profit | 39,791 | 35,619 | 33,941 | 44,901 | ||||||||||||||
Selling, general and administrative expenses (1) | 41,745 | 39,388 | 40,337 | 42,226 | ||||||||||||||
Operating income (loss) | -1,954 | (3,769 | ) | (6,396 | ) | 2,675 | ||||||||||||
Interest (expense) and other income, net | (193 | ) | (280 | ) | (234 | ) | (276 | ) | ||||||||||
Income (loss) before taxes | -2,147 | (4,049 | ) | (6,630 | ) | 2,399 | ||||||||||||
Income tax expense (benefit) | 59 | 54 | -422 | 65 | ||||||||||||||
Net income (loss) | -2,206 | (4,103 | ) | (6,208 | ) | 2,334 | ||||||||||||
Basic income (loss) per share(2) | $ | -0.27 | $ | (0.50 | ) | $ | (0.76 | ) | $ | 0.29 | ||||||||
Diluted income (loss) per share(2) | $ | -0.27 | $ | (0.50 | ) | $ | (0.76 | ) | $ | 0.29 | ||||||||
Fiscal year 2012: | Quarter | |||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||
Total revenues | $ | 115,488 | $ | 104,053 | $ | 101,320 | $ | 141,640 | ||||||||||
Total cost of revenues | 73,044 | 64,088 | 65,053 | 93,844 | ||||||||||||||
Gross profit | 42,443 | 39,965 | 36,267 | 47,796 | ||||||||||||||
Selling, general and administrative expenses (1) | 41,290 | 43,035 | 43,957 | 46,178 | ||||||||||||||
Operating income (loss) | 1,153 | (3,070 | ) | (7,690 | ) | 1,618 | ||||||||||||
Interest (expense) and other income, net | (254 | ) | (220 | ) | (267 | ) | (285 | ) | ||||||||||
Income (loss) before taxes | 899 | (3,290 | ) | (7,957 | ) | 1,333 | ||||||||||||
Income tax expense (benefit) | 66 | 66 | 42 | 123 | ||||||||||||||
Net income (loss) | 832 | (3,356 | ) | (7,999 | ) | 1,210 | ||||||||||||
Basic income (loss) per share(2) | $ | 0.1 | $ | (0.41 | ) | $ | (0.98 | ) | $ | 0.15 | ||||||||
Diluted income (loss) per share(2) | $ | 0.1 | $ | (0.41 | ) | $ | (0.98 | ) | $ | 0.15 | ||||||||
-1 | Includes approximately $0.1 million and $0.2 million in store asset impairment expense recognized in the second quarter and fourth quarter of fiscal 2013, respectively, $0.1 million and $0.2 million in abandoned lease expense recognized in the first quarter and third quarter of fiscal 2013, respectively, $0.1 million and $ 1.3 million in store asset impairment expense recognized in the third quarter and fourth quarter of fiscal 2012, respectively, $0.1 million and $0.2 million in abandoned lease expense recognized in the second quarter and fourth quarter of fiscal 2012, respectively. | |||||||||||||||||
(2) Income (loss) per share is calculated from the weighted average common and common stock equivalents outstanding during each quarter, which may fluctuate, based on quarterly income levels and market prices. Therefore, the sum of income (loss) per share information for each quarter may not equal the total year amounts. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Jan. 31, 2014 | ||
Subsequent Events | ' | |
-18 | Subsequent Events | |
Merger Agreement | ||
On March 17, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Draw Another Circle, LLC, a Delaware limited liability company (“Parent”), and Hendrix Acquisition Corp., a Texas corporation and a wholly owned subsidiary of Parent (“Merger Sub”), each of which are wholly-owned, directly or indirectly, by Mr. Joel Weinshanker. Pursuant to the Merger Agreement, subject to satisfaction or waiver of certain closing conditions, Merger Sub will merge with and into the Company (the “Merger”) with the Company continuing its existence under Texas law as the surviving entity in the Merger. Upon the completion of the Merger, the Company will be a wholly owned subsidiary of Parent. | ||
On the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock of the Company issued and outstanding as of immediately prior to the Effective Time (excluding any shares of its common stock held by Parent or its affiliates (including Merger Sub and National Entertainment Collectibles Association, Inc. (“NECA”)), any shares of common stock held by the Company in treasury or by any direct or indirect wholly owned subsidiary of the Company) will be automatically cancelled and converted into the right to receive $3.00 per share in cash, without interest (the “Merger Consideration”). | ||
Additionally, at the Effective Time, each option to purchase shares of the Company’s common stock (each, a “Company Option”) that is outstanding immediately prior to the Effective Time will be cancelled and terminated and, to the extent any such Company Option is vested immediately prior to the Effective Time and held by a person other than Messrs. John Marmaduke, Dan Crow, Alan Van Ongevalle or Philip McConnell, will be converted at the Effective Time into the right to receive a cash amount equal to the Option Consideration for each share of common stock then subject to such Company Option. “Option Consideration” means, with respect to any share of common stock issuable under each Company Option, an amount equal to the excess, if any, of (i) the Merger Consideration over (ii) the exercise price payable in respect of such share of the Company’s common stock issuable under the Company Option. | ||
The Merger Agreement contains customary representations and warranties of the Company and Parent. The Merger Agreement also contains customary covenants and agreements, including covenants and agreements limiting the Company’s ability to engage in certain types of transactions, repurchase shares of its common stock, declare any dividends, in each case, during the period between the date of the signing of the Merger Agreement and the closing date of the Merger. | ||
The Merger Agreement also contains certain termination rights for both the Company and Parent. Upon termination of the Merger Agreement, under certain circumstances, the Company may be required to pay Parent a termination fee equal to $850,000 or, subject to certain limitations, the amount of the documented out-of-pocket fees and expenses incurred by Parent, Merger Sub and their respective affiliates in connection with the transactions contemplated by the Merger Agreement. | ||
The foregoing description of the Merger Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Merger Agreement, a form of which is attached hereto as Exhibit 2.1 by reference to Exhibit 2.1 of our current report on Form 8-K filed with the SEC on March 18, 2014, and is incorporated herein by reference. | ||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts and Reserves | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Valuation and Qualifying Accounts and Reserves | ' | |||||||||||
Financial Statement Schedule II – | ||||||||||||
HASTINGS ENTERTAINMENT, INC. | ||||||||||||
Valuation and Qualifying Accounts and Reserves | ||||||||||||
Years Ended January 31, 2014, 2013 and 2012 | ||||||||||||
(Amounts in thousands) | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Reserves deducted from assets: | ||||||||||||
Allowance for shrinkage and inventory obsolescence: | ||||||||||||
Balance at the beginning of period | $ | 4,164 | $ | 5,348 | $ | 6,374 | ||||||
Additions charged to costs and expenses | 8,992 | 9,079 | 11,711 | |||||||||
Deductions for write-offs | (9,243 | ) | (10,263 | ) | (12,737 | ) | ||||||
Balance at end of period | $ | 3,913 | $ | 4,164 | $ | 5,348 | ||||||
Reserves added to liabilities: | ||||||||||||
Allowance for costs of inventory returns: | ||||||||||||
Balance at the beginning of period | $ | 813 | $ | 724 | $ | 833 | ||||||
Additions charged to costs and expenses | 3,340 | 3,796 | 4,152 | |||||||||
Deductions for write-offs and payments | (3,556 | ) | (3,707 | ) | (4,261 | ) | ||||||
Balance at end of period | $ | 597 | $ | 813 | $ | 724 | ||||||
Operations_and_Summary_of_Sign1
Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Jan. 31, 2014 | |||
General | ' | ||
(a) | General | ||
Hastings Entertainment, Inc. (the “Company,” “Hastings,” or “Hastings Entertainment”) operates a chain of retail stores in 19 states, primarily in the Western and Midwestern United States. Revenues are generated from the sale of new and used books, music, DVDs, video games, and video game consoles, and new software, periodicals, consumables, lifestyles and trends products. In addition, our revenues include the rental of DVDs, Blu-ray DVDs, and video games. | |||
Basis of Consolidation | ' | ||
(b) | Basis of Consolidation | ||
The consolidated financial statements present the results of Hastings and its wholly-owned subsidiary. All inter-company transactions and balances have been eliminated in consolidation. | |||
Basis of Presentation | ' | ||
(c) | Basis of Presentation | ||
We operate in one reportable segment. Our fiscal years ended January 31, 2014, 2013 and 2012 are referred to as fiscal 2013, 2012 and 2011, respectively. | |||
Reclassifications | ' | ||
(d) Reclassifications | |||
Certain prior period amounts have been reclassified to conform to the current presentation. | |||
Cash and Cash Equivalents | ' | ||
(e) | Cash and Cash Equivalents | ||
We consider all debit and credit card receivables totaling approximately $1.5 million and $1.2 million at January 31, 2014 and 2013, respectively, from MasterCard, Visa, Discover, and American Express to be cash equivalents. All balances related to debit and credit card receivables typically settle within five days. We utilize a cash management process under which a book cash overdraft may exist for our primary disbursement accounts. These overdrafts represent un-cleared checks in excess of cash balances in bank accounts at the end of the reporting period and have been reclassified to accounts payable on the consolidated balance sheets. We transfer cash on an as-needed basis to fund clearing checks. | |||
Revenue Recognition | ' | ||
(f) | Revenue Recognition | ||
Merchandise and rental asset revenues are recognized at the point of sale or rental or at the time merchandise is shipped to the customer. Additionally, revenues are presented net of estimated returns and exclude all sales taxes. An allowance has been established to provide for expected merchandise returns. | |||
We reduce our rental revenue through reserves for the estimated utilization of early return credits received by renters for early return of rentals. The reserve is relieved upon the redemption of these early return credits. | |||
We provide our customers with the opportunity to trade in used DVDs, video games, CDs and books in exchange for cash consideration or store credit in the form of a gift card. Used merchandise inventory is recorded at a cost equal to the cash offer to the customer. If a customer chooses store credit, a gift card is issued for the amount of the cash offer plus a premium. Premiums associated with gift cards issued as a result of trade-in transactions are recorded as a reduction of revenue in the period in which the related gift cards are redeemed. | |||
Gift Cards and Breakage Revenue | ' | ||
(g) | Gift Cards and Breakage Revenue | ||
We sell gift cards through each of our stores and through our web site www.goHastings.com. The gift cards we sell have no stated expiration dates or fees and are subject to potential escheatment rights in some of the jurisdictions in which we operate. Gift card liabilities are recorded as deferred revenue at the time of sale of such cards with the costs of designing, printing and distributing the cards recorded as expense as incurred. Revenue from sales of gift cards is recognized when the gift card is redeemed by the customer, or the likelihood of a gift card being redeemed by the customer is remote (gift card breakage). Gift card breakage revenue is recognized as gift cards are redeemed, based upon an analysis of the aging and utilization of gift cards, our determination that the likelihood of future redemption is remote and our determination that such balances are not subject to escheatment laws applicable to our operations. For fiscal 2013, 2012 and 2011, we recorded approximately $0.3 million, ($0.1) million and $0.8 million, respectively, of revenue related to gift card breakage. During fiscal 2012, we discontinued recognition of gift card breakage for our Colorado stores per state escheat laws and we decreased the overall gift card breakage percentage, causing a negative amount for the fiscal year. Unredeemed gift cards, net of estimated gift card breakage, approximated $11.9 million at January 31, 2014 and $11.6 million at January 31, 2013. | |||
Merchandise Inventories | ' | ||
(h) | Merchandise Inventories | ||
Merchandise inventories are recorded at the lower of cost, which approximates the first-in, first-out (“FIFO”) method, or market. Amounts are presented net of an allowance for shrinkage and obsolescence. | |||
Expenses included in cost of revenues include cost of product purchased from vendors; rental asset depreciation expense; revenue-sharing payments; shrinkage; inventory markdowns and write-offs; freight charges; receiving costs; inspection costs; and internal transfer costs. In addition, we include in cost of revenues all expenses associated with our distribution center, including freight, warehouse personnel costs, supplies, maintenance, depreciation, occupancy, property tax, and utility costs, in addition to costs associated with our returns center, including vendor refused product, handling charges, return fees, freight, return center personnel costs, supplies, maintenance, depreciation, rent and utilities. We include occupancy costs for retail locations in Selling, General and Administrative (“SG&A”) expenses. | |||
We transfer rental assets that have been converted to previously viewed titles for sale, from ‘Rental Assets’ to ‘Merchandise Inventories.’ The transfer to ‘Merchandise Inventories’ is recorded at the time of conversion, which is the first date the product is made available for sale. During fiscal 2013, 2012, and 2011, $4.4 million, $5.2 million, and $10.3 million, respectively, were transferred from rental assets to merchandise inventory at the lower of net book value or market. | |||
Merchandise inventory owned by us is generally returnable based upon return agreements with our merchandise vendors. We continually return merchandise to vendors based on, among other factors, current and projected sales trends, overstock situations, authorized return timelines or changes in product offerings. At the end of any reporting period, in order to appropriately match the costs associated with the return of merchandise with the process of returning such merchandise, returns expense accruals are required for inventory that has been returned to vendors, is in the process of being returned to vendors, or has been identified to be returned to vendors. These costs can include freight, valuation and quantity differences, and other fees charged by a vendor. To accrue for such costs and estimate this allowance, we utilize historical experience adjusted for significant estimated or contractual modifications. Certain adjustments to the allowance can have a material effect on the financial results of an annual or interim period. There were no material adjustments in fiscal 2013, 2012, or 2011. | |||
Property and Equipment | ' | ||
(i) | Property and Equipment | ||
Property and equipment are recorded at cost and depreciated using the straight-line method, except for rental assets, which are depreciated using an accelerated depreciation method. The cost of property and equipment includes the purchase price and all direct incremental expenditures necessary to render the asset suitable for its intended use and location. Furniture, fixtures, equipment and software are depreciated over their estimated useful lives of three to five years. Leasehold improvements are amortized over the shorter of the related lease term or their estimated useful lives. | |||
Expenditures for maintenance, repairs and renewals that do not materially extend the original useful lives of assets are charged to expense as incurred. | |||
We evaluate underperforming stores on a quarterly basis to determine whether projected future cash flows over the remaining lease term are sufficient to recover the carrying value of the fixed asset investment in each individual store. If projected future cash flows are less than the carrying value of the fixed asset investment, an impairment charge is recognized if the estimated fair value is less than the carrying value of such assets. The carrying value of leasehold improvements as well as certain other property and equipment is subject to impairment write-down. | |||
Rental Asset Depreciation | ' | ||
(j) | Rental Asset Depreciation | ||
Rental assets, except for initial purchases for new stores, are depreciated using an accelerated method over six months or nine months. The initial purchases of rental assets for new stores are depreciated over 36 months using the straight-line method. Rental assets, which include DVDs, Blu-rays, and video games, are depreciated to salvage values ranging from $4 to $15. Rental assets purchased for less than established salvage values are not depreciated. | |||
Financial Instruments | ' | ||
(k) | Financial Instruments | ||
Our financial instruments include cash and cash equivalents, available for sale investments related to our non-qualified supplemental executive retirement plan, accounts payable, and long-term debt. The fair value of cash and cash equivalents and accounts payable approximates carrying values due to their short-term duration. See Note 7 Fair Value Measurements for discussion of the fair value of the available for sale investments and long-term debt. | |||
Stock Based Compensation | ' | ||
(l) | Stock Based Compensation | ||
Determining the amount of stock-based compensation expense requires us to develop estimates that are used in calculating the grant-date fair value of stock options. In determining the fair value of stock options, we use the Black-Scholes valuation model, which requires us to make estimates of the following assumptions: | |||
· | Expected volatility – The estimated stock price volatility is derived based upon our historical stock prices over the expected life of the option. | ||
· | Expected life of the option – The estimate of an expected life is calculated based on historical data relating to grants, exercises, and cancellations and the vesting period and contractual life of the option. | ||
· | Risk-free interest rate – The risk-free interest rate is based on the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected life of the option. | ||
· | Expected dividend yield – The estimated rate based on the stock’s current market price and forecasted dividend payout. | ||
Our stock price volatility and expected option lives involve management’s best estimates at the time the valuation is conducted, both of which impact the fair value of the option calculated under the Black-Scholes pricing model and, ultimately, the expense that will be recognized over the vesting period of the option. | |||
We recognize compensation expense only for the portion of options that are expected to vest. Therefore, we apply estimated forfeiture rates that are derived from historical employee termination behavior. If the actual number of forfeitures differs from those estimated by management, additional adjustments to compensation expense may be required in future periods. | |||
In addition to stock options, we award restricted stock units. The grant date fair value of restricted stock units is equal to the average of the opening and closing stock price on the day on which they are granted. | |||
Advertising Costs | ' | ||
(m) | Advertising Costs | ||
Advertising costs for newspaper, television and other media are expensed as incurred. Advertising expenses, net of reimbursement allowances from vendors, for fiscal years 2013, 2012, and 2011 were $4.4 million, $6.0 million, and $7.2 million, respectively. | |||
We receive payments and credits from vendors pursuant to cooperative advertising programs and display allowance agreements. During fiscal years 2013, 2012, and 2011, we received a total of approximately $6.2 million, $6.6 million, and $6.7 million, respectively, for such payments and credits. To the extent such payments are a reimbursement for a specific incremental and identifiable cost such amounts are recorded as a reduction in SG&A expenses at the time the associated advertisement is publicly released. The remainder of these payments and allowances are recorded as a reduction of merchandise inventory and the cost of rental assets and recognized in income as the related product is sold or rented. | |||
Earnings Per Share | ' | ||
(n) | Earnings Per Share | ||
Basic earnings per share is computed by dividing net earnings by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is similarly computed, but includes the dilutive effect of stock-based awards. | |||
Use of Management Estimates | ' | ||
(o) | Use of Management Estimates | ||
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Impact of Recently Issued Accounting Standards | ' | ||
(p) | Impact of Recently Issued Accounting Standards | ||
During February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-02: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (“GAAP”) to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (for example, inventory) instead of directly to income or expense in the same reporting period. | |||
In July 2013, the Financial Accounting Standards Board issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires unrecognized tax benefits to be presented as a decrease in a net operating loss, similar tax loss or tax credit carryforward if certain criteria are met. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on the Company’s consolidated financial statements. | |||
Income Taxes | ' | ||
We follow the provisions of ASC 740, Income Taxes, which clarifies the accounting and disclosure for uncertainty in income taxes. Below is a reconciliation of the beginning and ending amount of unrecognized tax benefits relating to uncertain tax positions, which are recorded in our Consolidated Balance Sheets. |
Merchandise_Inventories_Tables
Merchandise Inventories (Tables) | 12 Months Ended | |||||||||
Jan. 31, 2014 | ||||||||||
Merchandise Inventories | ' | |||||||||
Merchandise inventories consist of the following: | ||||||||||
January 31, | ||||||||||
2014 | 2013 | |||||||||
Books | $ | 41,623 | $ | 47,537 | ||||||
Videos | 37,921 | 39,171 | ||||||||
Video Games | 13,758 | 12,570 | ||||||||
Music | 18,092 | 19,631 | ||||||||
Trends | 24,237 | 18,232 | ||||||||
Consumer Electronics | 13,790 | 10,183 | ||||||||
Other | 6,390 | 1,851 | ||||||||
155,811 | 149,175 | |||||||||
Less allowance for inventory shrinkage and obsolescence | 3,673 | 3,838 | ||||||||
$ | 152,138 | $ | 145,337 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Property and Equipment, Net | ' | |||||||
Property and equipment consist of the following: | ||||||||
January 31, | ||||||||
2014 | 2013 | |||||||
Furniture, equipment and software | $ | 191,465 | $ | 188,438 | ||||
Leasehold improvements | 68,100 | 69,855 | ||||||
Buildings and land | 258 | 258 | ||||||
Work in progress | 360 | 1,016 | ||||||
260,183 | 259,567 | |||||||
Less accumulated depreciation | 230,971 | 227,468 | ||||||
Property and equipment, net | $ | 29,212 | $ | 32,099 | ||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
Accrued expenses and other current liabilities consist of the following: | ||||||||
January 31, | ||||||||
2014 | 2013 | |||||||
Deferred gift card revenue | $ | 11,885 | $ | 11,610 | ||||
Salaries, vacation, bonus and benefits | 4,956 | 4,604 | ||||||
Supplemental executive retirement plan | 1,607 | — | ||||||
Early return credit reserve | 1,567 | 1,741 | ||||||
Real property tax | 1,533 | 1,354 | ||||||
Short term lease obligations | 1,190 | 1,814 | ||||||
Sales taxes payable | 930 | 1,052 | ||||||
Allowance for cost of inventory returns | 597 | 813 | ||||||
State income tax payable | 332 | 754 | ||||||
Other accrued expenses | 3,762 | 3,654 | ||||||
Total | $ | 28,359 | $ | 27,396 | ||||
Store_Closing_Reserve_Tables
Store Closing Reserve (Tables) | 12 Months Ended | |||
Jan. 31, 2014 | ||||
Summary of Roll-Forward for Store Closing Reserve | ' | |||
The following table provides a roll-forward of our store closing reserve: | ||||
Store Closing | ||||
Reserve | ||||
Balance at January 31, 2012 | $ | 2,558 | ||
Additions to provision | — | |||
Changes in estimates | 339 | |||
Cash outlay, net | (792 | ) | ||
Balance at January 31, 2013 | $ | 2,105 | ||
Additions to provision | — | |||
Changes in estimates | 382 | |||
Cash outlay, net | (1,374 | ) | ||
Balance at January 31, 2014 | $ | 1,113 | ||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Rental Expense for Operating Leases | ' | |||||||||||
We lease retail space under operating leases with terms ranging from five to fifteen years, with certain leases containing renewal options. Renewal options are typically for five years and contain terms similar to those of the original lease. Lease agreements generally provide for minimum rentals. Some leases also include additional contingent rental amounts based upon specified percentages of sales above predetermined levels. Rental costs associated with operating leases that are incurred during a construction period are recognized as rental expense. Rental expense for operating leases is comprised of the following: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Minimum rentals | $ | 25,409 | $ | 26,125 | $ | 27,253 | ||||||
Contingent rentals | 17 | 31 | 37 | |||||||||
Less sublease income | (111 | ) | (145 | ) | (71 | ) | ||||||
Rental expense | $ | 25,315 | $ | 26,011 | $ | 27,219 | ||||||
Future Minimum Lease Payments under Non-Cancelable Operating Leases | ' | |||||||||||
Future minimum lease payments under non-cancelable operating leases as of January 31, 2014 are: | ||||||||||||
2014 | $ | 25,724 | ||||||||||
2015 | 22,868 | |||||||||||
2016 | 20,726 | |||||||||||
2017 | 18,623 | |||||||||||
2018 | 15,296 | |||||||||||
Thereafter | 25,396 | |||||||||||
Total minimum lease payments | 128,633 | |||||||||||
Less sublease income | — | |||||||||||
Net minimum lease payments under operating leases | $ | 128,633 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||||||
Income Tax Expense (Benefit) | ' | |||||||||||||||||||||||
Income tax expense (benefit) is comprised of the following: | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Current federal | $ | — | $ | — | $ | (3,124 | ) | |||||||||||||||||
Current state and local | (254 | ) | 289 | 283 | ||||||||||||||||||||
Deferred federal, state, and local | 10 | 8 | 7,725 | |||||||||||||||||||||
$ | (244 | ) | $ | 297 | $ | 4,884 | ||||||||||||||||||
Difference between Expected Federal Income Tax Expense Based upon Statutory Rates and Actual Income Tax Expense | ' | |||||||||||||||||||||||
The difference between expected federal income tax expense based upon statutory rates and actual income tax expense is as follows: | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Expected federal income tax benefit at statutory rate | $ | (3,545 | ) | (34.0 | %) | $ | (3,065 | ) | (34.0 | %) | $ | (4,316 | ) | (34.0 | %) | |||||||||
State and local income tax benefits, net of federal income tax effect | (140 | ) | (1.3 | %) | (86 | ) | (1.0 | %) | (164 | ) | (1.3 | %) | ||||||||||||
Valuation allowance | 3,729 | 35.8 | % | 3,189 | 35.4 | % | 8,617 | 67.9 | % | |||||||||||||||
Return to provision adjustment | — | 0 | % | 38 | 0.4 | % | 485 | 3.8 | % | |||||||||||||||
Other | -288 | (2.8 | %) | 221 | 2.5 | % | 262 | 2.1 | % | |||||||||||||||
$ | -244 | (2.3 | %) | $ | 297 | 3.3 | % | $ | 4,884 | 38.5 | % | |||||||||||||
Deferred Tax Assets and Deferred Tax Liabilities | ' | |||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||
Deferred gift card revenue | $ | 3,604 | $ | 3,410 | ||||||||||||||||||||
Deferred rent and lease incentives | 1,993 | 2,122 | ||||||||||||||||||||||
Inventories | 2,212 | 1,439 | ||||||||||||||||||||||
Property and equipment | 6,500 | 6,385 | ||||||||||||||||||||||
Abandoned leases | 417 | 789 | ||||||||||||||||||||||
Operating loss carryforwards | 2,484 | 422 | ||||||||||||||||||||||
Other | 2,006 | 2,250 | ||||||||||||||||||||||
Total deferred tax assets | 19,216 | 16,817 | ||||||||||||||||||||||
Valuation allowance | (14,357 | ) | (11,019 | ) | ||||||||||||||||||||
Net deferred tax assets | 4,859 | 5,798 | ||||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||
Rental assets | (4,919 | ) | (5,848 | ) | ||||||||||||||||||||
Total deferred tax liabilities | (4,919 | ) | (5,848 | ) | ||||||||||||||||||||
Net deferred tax liabilities | $ | (60 | ) | $ | (50 | ) | ||||||||||||||||||
Unrecognized Tax Benefits | ' | |||||||||||||||||||||||
We follow the provisions of ASC 740, Income Taxes, which clarifies the accounting and disclosure for uncertainty in income taxes. Below is a reconciliation of the beginning and ending amount of unrecognized tax benefits relating to uncertain tax positions, which are recorded in our Consolidated Balance Sheets. | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Unrecognized tax positions at beginning of period | $ | 186 | $ | 186 | $ | 186 | ||||||||||||||||||
Increases in tax positions from prior years | — | — | — | |||||||||||||||||||||
Decreases in tax positions from prior years | 181 | — | — | |||||||||||||||||||||
Increases in tax positions from current year | — | — | — | |||||||||||||||||||||
Settlements with taxing authorities | — | — | — | |||||||||||||||||||||
Lapse in statute of limitations | — | — | — | |||||||||||||||||||||
Unrecognized tax positions at end of period | $ | 5 | $ | 186 | $ | 186 | ||||||||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | |||
Jan. 31, 2014 | ||||
Changes in Balances of Each Component of Other Comprehensive Income Included in Accumulated Other Comprehensive Income | ' | |||
Changes in the balances of each component of other comprehensive income (“OCI”) included in accumulated OCI for the year ended January 31, 2014 are presented below. All amounts are net of tax. | ||||
Net Unrealized Gain (Loss) on | ||||
Available-for Sale Securities in | ||||
Supplemental Executive | ||||
Retirement Plan | ||||
Balance at January 31, 2013 | $ | 247 | ||
Other comprehensive income before reclassifications | 143 | |||
Amounts reclassified from accumulated OCI, included in Other Income (Expense) | (43 | ) | ||
Balance as of January 31, 2014 | $ | 347 | ||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Computations for Basic and Diluted Loss Per Share | ' | |||||||||||
The computations of basic and diluted loss per share are as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income (loss) | $ | (10,183 | ) | $ | (9,313 | ) | $ | (17,579 | ) | |||
Average shares outstanding: | ||||||||||||
Basic | 8,142 | 8,202 | 8,556 | |||||||||
Diluted | 8,142 | 8,202 | 8,556 | |||||||||
Earnings (loss) per share: | ||||||||||||
Basic | $ | (1.25 | ) | $ | (1.14 | ) | $ | (2.05 | ) | |||
Diluted | $ | (1.25 | ) | $ | (1.14 | ) | $ | (2.05 | ) | |||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||||||
Calculation of Fair Value of Stock Options | ' | |||||||||||||||||||||||
The following assumptions were used in the calculation of fair value: | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Expected dividend yield | 0.51 | % | 0.94 | % | — | |||||||||||||||||||
Risk-free interest rate | 1.24 | % | 0.75 | % | 1.53 | % | ||||||||||||||||||
Expected life in years | 5 | 5.44 | 5 | |||||||||||||||||||||
Historical Volatility | 0.57 | 0.51 | 0.51 | |||||||||||||||||||||
Summary of Stock Option Plans | ' | |||||||||||||||||||||||
A summary of information with respect to stock option plans for fiscal years 2013, 2012, and 2011, and changes during the periods then ended, is presented below. | ||||||||||||||||||||||||
Options (in | Weighted- | |||||||||||||||||||||||
actual shares) | average exercise | |||||||||||||||||||||||
price | ||||||||||||||||||||||||
Outstanding at January 31, 2011 | 777,193 | $ | 4.54 | |||||||||||||||||||||
Granted | 10,120 | 4.06 | ||||||||||||||||||||||
Exercised | (12,530 | ) | 2.99 | |||||||||||||||||||||
Forfeited and expired | (119,700 | ) | 3.88 | |||||||||||||||||||||
Outstanding at January 31, 2012 | 655,083 | $ | 4.68 | |||||||||||||||||||||
Granted | 140,420 | 2.08 | ||||||||||||||||||||||
Exercised | — | — | ||||||||||||||||||||||
Forfeited and expired | (13,060 | ) | 5.17 | |||||||||||||||||||||
Outstanding at January 31, 2013 | 782,443 | $ | 4.21 | |||||||||||||||||||||
Granted | 10,120 | 3.85 | ||||||||||||||||||||||
Exercised | -25,000 | 2.3 | ||||||||||||||||||||||
Forfeited and expired | (246,786 | ) | 3.63 | |||||||||||||||||||||
Outstanding at January 31, 2014 | 520,777 | $ | 4.57 | |||||||||||||||||||||
Options Outstanding, both Exercisable and Unexercisable | ' | |||||||||||||||||||||||
At January 31, 2014, the options outstanding, both exercisable and unexercisable, and their related weighted-average exercise price, and the weighted-average remaining contractual life for the ranges of exercise prices are shown in the table below. | ||||||||||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||||||||||||
average exercise | average | intrinsic value | ||||||||||||||||||||||
price | remaining | |||||||||||||||||||||||
contractual life | ||||||||||||||||||||||||
Range: $1.69 to $4.99 | ||||||||||||||||||||||||
Options outstanding and exercisable at January 31, 2014 | 182,967 | $ | 3.18 | 5.02 years | $ | — | ||||||||||||||||||
Options outstanding and unexercisable at January 31, 2014 | 117,006 | $ | 2.62 | 8.40 years | $ | — | ||||||||||||||||||
Range: $5.00 to $8.70 | ||||||||||||||||||||||||
Options outstanding and exercisable at January 31, 2014 | 180,756 | $ | 6.79 | 3.83 years | $ | — | ||||||||||||||||||
Options outstanding and unexercisable at January 31, 2014 | 40,048 | $ | 6.57 | 6.79 years | $ | — | ||||||||||||||||||
Weighted-Average Exercise Price and the Per Share Weighted-Average Fair Value | ' | |||||||||||||||||||||||
The per share weighted-average exercise price and the per share weighted-average fair value of stock options at the date of grant, using the Black-Scholes option-pricing model are as follows: | ||||||||||||||||||||||||
Weighted Average Exercise price for | Weighted Average Fair value for | |||||||||||||||||||||||
Fiscal Year | Fiscal Year | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Options granted at market price | $ | 3.85 | $ | 2.05 | $ | 4.06 | $ | 1.83 | $ | 0.87 | $ | 1.85 | ||||||||||||
Options granted at prices exceeding market price | $ | — | $ | 2.26 | $ | — | $ | — | $ | 0.68 | $ | — | ||||||||||||
Total options granted | $ | 3.85 | $ | 2.08 | $ | 4.06 | $ | 1.83 | $ | 0.84 | $ | 1.85 | ||||||||||||
Summary of Information of Restricted Stock Awards | ' | |||||||||||||||||||||||
A summary of information with respect to restricted stock awards for fiscal years 2013, 2012, and 2011, and changes during the periods then ended, is presented below. | ||||||||||||||||||||||||
Awards | Weighted-average | |||||||||||||||||||||||
(in actual shares) | grant date fair value | |||||||||||||||||||||||
Outstanding at January 31, 2011 | 315,282 | $ | 5.83 | |||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||
Vested | (191,324 | ) | 5.46 | |||||||||||||||||||||
Forfeited and expired | (45,208 | ) | 5.94 | |||||||||||||||||||||
Outstanding at January 31, 2012 | 78,750 | $ | 6.45 | |||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||
Vested | (78,750 | ) | 2 | |||||||||||||||||||||
Forfeited and expired | — | — | ||||||||||||||||||||||
Outstanding at January 31, 2013 | — | $ | — | |||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||
Vested | — | — | ||||||||||||||||||||||
Forfeited and expired | — | — | ||||||||||||||||||||||
Outstanding at January 31, 2014 | — | $ | — | |||||||||||||||||||||
Interim_Financial_Results_Unau1
Interim Financial Results (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||
Selected Quarterly Financial Data | ' | |||||||||||||||||
Fiscal year 2013: | Quarter | |||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||
Total revenues | $ | 109,128 | $ | 95,781 | $ | 94,672 | $ | 136,381 | ||||||||||
Total cost of revenues | 69,337 | 60,162 | 60,731 | 91,480 | ||||||||||||||
Gross profit | 39,791 | 35,619 | 33,941 | 44,901 | ||||||||||||||
Selling, general and administrative expenses (1) | 41,745 | 39,388 | 40,337 | 42,226 | ||||||||||||||
Operating income (loss) | -1,954 | (3,769 | ) | (6,396 | ) | 2,675 | ||||||||||||
Interest (expense) and other income, net | (193 | ) | (280 | ) | (234 | ) | (276 | ) | ||||||||||
Income (loss) before taxes | -2,147 | (4,049 | ) | (6,630 | ) | 2,399 | ||||||||||||
Income tax expense (benefit) | 59 | 54 | -422 | 65 | ||||||||||||||
Net income (loss) | -2,206 | (4,103 | ) | (6,208 | ) | 2,334 | ||||||||||||
Basic income (loss) per share(2) | $ | -0.27 | $ | (0.50 | ) | $ | (0.76 | ) | $ | 0.29 | ||||||||
Diluted income (loss) per share(2) | $ | -0.27 | $ | (0.50 | ) | $ | (0.76 | ) | $ | 0.29 | ||||||||
Fiscal year 2012: | Quarter | |||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||
Total revenues | $ | 115,488 | $ | 104,053 | $ | 101,320 | $ | 141,640 | ||||||||||
Total cost of revenues | 73,044 | 64,088 | 65,053 | 93,844 | ||||||||||||||
Gross profit | 42,443 | 39,965 | 36,267 | 47,796 | ||||||||||||||
Selling, general and administrative expenses (1) | 41,290 | 43,035 | 43,957 | 46,178 | ||||||||||||||
Operating income (loss) | 1,153 | (3,070 | ) | (7,690 | ) | 1,618 | ||||||||||||
Interest (expense) and other income, net | (254 | ) | (220 | ) | (267 | ) | (285 | ) | ||||||||||
Income (loss) before taxes | 899 | (3,290 | ) | (7,957 | ) | 1,333 | ||||||||||||
Income tax expense (benefit) | 66 | 66 | 42 | 123 | ||||||||||||||
Net income (loss) | 832 | (3,356 | ) | (7,999 | ) | 1,210 | ||||||||||||
Basic income (loss) per share(2) | $ | 0.1 | $ | (0.41 | ) | $ | (0.98 | ) | $ | 0.15 | ||||||||
Diluted income (loss) per share(2) | $ | 0.1 | $ | (0.41 | ) | $ | (0.98 | ) | $ | 0.15 | ||||||||
-1 | Includes approximately $0.1 million and $0.2 million in store asset impairment expense recognized in the second quarter and fourth quarter of fiscal 2013, respectively, $0.1 million and $0.2 million in abandoned lease expense recognized in the first quarter and third quarter of fiscal 2013, respectively, $0.1 million and $ 1.3 million in store asset impairment expense recognized in the third quarter and fourth quarter of fiscal 2012, respectively, $0.1 million and $0.2 million in abandoned lease expense recognized in the second quarter and fourth quarter of fiscal 2012, respectively. | |||||||||||||||||
(2) Income (loss) per share is calculated from the weighted average common and common stock equivalents outstanding during each quarter, which may fluctuate, based on quarterly income levels and market prices. Therefore, the sum of income (loss) per share information for each quarter may not equal the total year amounts. |
Operations_and_Summary_of_Sign2
Operations and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Segment | |||
State | |||
Operations and Summary of Significant Accounting Policies - Additional Information [Abstract] | ' | ' | ' |
Number of states in which hasting entertainment operates | 19 | ' | ' |
Number of operating reportable segment | 1 | ' | ' |
Revenue recorded related to gift card breakage | $300,000 | ($100,000) | $800,000 |
Unredeemed revenue | 11,885,000 | 11,610,000 | ' |
Transfer of rental assets to merchandise inventory | 4,400,000 | 5,200,000 | 10,300,000 |
Material adjustments | 0 | 0 | 0 |
Advertising expenses, net of reimbursement allowances from vendors | 4,400,000 | 6,000,000 | 7,200,000 |
Payments and credits received from vendors | 6,200,000 | 6,600,000 | 6,700,000 |
Rental Asset New Purchase | ' | ' | ' |
Operations and Summary of Significant Accounting Policies - Additional Information [Abstract] | ' | ' | ' |
Useful life | '36 months | ' | ' |
Minimum | ' | ' | ' |
Operations and Summary of Significant Accounting Policies - Additional Information [Abstract] | ' | ' | ' |
Useful life | '3 years | ' | ' |
Minimum | Rental Asset Old | ' | ' | ' |
Operations and Summary of Significant Accounting Policies - Additional Information [Abstract] | ' | ' | ' |
Useful life | '6 months | ' | ' |
Minimum | Rental Asset New Purchase | ' | ' | ' |
Operations and Summary of Significant Accounting Policies - Additional Information [Abstract] | ' | ' | ' |
Salvage value | 4 | ' | ' |
Maximum | ' | ' | ' |
Operations and Summary of Significant Accounting Policies - Additional Information [Abstract] | ' | ' | ' |
Useful life | '5 years | ' | ' |
Maximum | Rental Asset Old | ' | ' | ' |
Operations and Summary of Significant Accounting Policies - Additional Information [Abstract] | ' | ' | ' |
Useful life | '9 months | ' | ' |
Maximum | Rental Asset New Purchase | ' | ' | ' |
Operations and Summary of Significant Accounting Policies - Additional Information [Abstract] | ' | ' | ' |
Salvage value | 15 | ' | ' |
Debit and Credit Card Receivable | ' | ' | ' |
Operations and Summary of Significant Accounting Policies - Additional Information [Abstract] | ' | ' | ' |
Cash and cash equivalents | $1,500,000 | $1,200,000 | ' |
Settlement period of balances related to debit and credit card receivables | '5 days | ' | ' |
Merchandise_Inventories_Detail
Merchandise Inventories (Detail) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Merchandise inventories | ' | ' |
Inventory, Gross | $155,811 | ' |
Less allowance for inventory shrinkage and obsolescence | 3,673 | ' |
Inventory, Net | 152,138 | 145,337 |
Books | ' | ' |
Merchandise inventories | ' | ' |
Inventory, Gross | 41,623 | ' |
Videos | ' | ' |
Merchandise inventories | ' | ' |
Inventory, Gross | 37,921 | ' |
Video Games | ' | ' |
Merchandise inventories | ' | ' |
Inventory, Gross | 13,758 | ' |
Music | ' | ' |
Merchandise inventories | ' | ' |
Inventory, Gross | 18,092 | ' |
Trends | ' | ' |
Merchandise inventories | ' | ' |
Inventory, Gross | 24,237 | ' |
Consumer Electronics | ' | ' |
Merchandise inventories | ' | ' |
Inventory, Gross | 13,790 | ' |
Other | ' | ' |
Merchandise inventories | ' | ' |
Inventory, Gross | $6,390 | ' |
Merchandise_Inventories_Additi
Merchandise Inventories - Additional Information (Detail) | 12 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Vendor | ||
Merchandise Inventories - Additional Information [Abstract] | ' | ' |
Percentage of items purchased during period | 21.00% | 18.00% |
Number of vendors | 3 | ' |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ' | ' |
Property and equipment, gross | $260,183 | $259,567 |
Less accumulated depreciation | 230,971 | 227,468 |
Property and equipment, net | 29,212 | 32,099 |
Furniture, equipment and software | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 191,465 | 188,438 |
Leasehold improvements | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 68,100 | 69,855 |
Buildings and land | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | 258 | 258 |
Work in progress | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | $360 | $1,016 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Property and Equipment - Additional Information [Abstract] | ' | ' | ' |
Impairment charges related to store asset | $0.30 | $1.40 | $0.80 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses And Other Current Liabilities [Line Items] | ' | ' |
Deferred gift card revenue | $11,885 | $11,610 |
Salaries, vacation, bonus and benefits | 4,956 | 4,604 |
Supplemental executive retirement plan | 1,607 | ' |
Early return credit reserve | 1,567 | 1,741 |
Real property tax | 1,533 | 1,354 |
Short term lease obligations | 1,190 | 1,814 |
Sales taxes payable | 930 | 1,052 |
Allowance for cost of inventory returns | 597 | 813 |
State income tax payable | 332 | 754 |
Other accrued expenses | 3,762 | 3,654 |
Total | $28,359 | $27,396 |
Store_Closing_Reserve_Summary_
Store Closing Reserve - Summary of Roll-Forward for Store Closing Reserve (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Restructuring Cost And Reserve [Line Items] | ' | ' |
Beginning Balance | $2,105 | $2,558 |
Additions to provision | ' | ' |
Changes in estimates | 382 | 339 |
Cash outlay, net | -1,374 | -792 |
Ending Balance | $1,113 | $2,105 |
Longterm_Debt_Additional_Infor
Long-term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Dec. 27, 2012 |
Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Credit Card Receivables Plus | Inventory | Inventory | |||
LIBOR Rate Loans Ranging | Base Rate Loans Ranging | LIBOR Rate Loans Ranging | Base Rate Loans Ranging | ||||||||
Line Of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility outstanding borrowings | $51.70 | $41.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility | 115 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | 4-Jan-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Absolute minimum available reserve | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The amount outstanding under the Amended Credit Agreement is limited by a borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | 90.00% | 92.50% |
Maximum limit to the line of credit facility | 115 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum available reserve percentage | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable Margin for loans ranging rate | ' | ' | ' | 2.00% | 1.00% | ' | 2.50% | 1.50% | ' | ' | ' |
Unused line fees ranging | ' | ' | 0.30% | ' | ' | 0.38% | ' | ' | ' | ' | ' |
Aggregate amount of the letters of credit | 0.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess availability of line of credit | $49.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average rate of interest | 2.50% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Fair value of assets on recurring basis | $1.90 | $2.10 |
Leases_Additional_Information_
Leases - Additional Information (Detail) | 12 Months Ended |
Jan. 31, 2014 | |
Property Subject To Or Available For Operating Lease [Line Items] | ' |
Renewal options under lease, years | '5 years |
Minimum | ' |
Property Subject To Or Available For Operating Lease [Line Items] | ' |
Lease of retail space under operating leases | '5 years |
Maximum | ' |
Property Subject To Or Available For Operating Lease [Line Items] | ' |
Lease of retail space under operating leases | '15 years |
Leases_Rental_Expense_for_Oper
Leases - Rental Expense for Operating Leases (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Operating Leased Assets [Line Items] | ' | ' | ' |
Minimum rentals | $25,409 | $26,125 | $27,253 |
Contingent rentals | 17 | 31 | 37 |
Less sublease income | -111 | -145 | -71 |
Rental expense | $25,315 | $26,011 | $27,219 |
Leases_Future_Minimum_Lease_Pa
Leases - Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $25,724 |
2015 | 22,868 |
2016 | 20,726 |
2017 | 18,623 |
2018 | 15,296 |
Thereafter | 25,396 |
Total minimum lease payments | 128,633 |
Less sublease income | ' |
Net minimum lease payments under operating leases | $128,633 |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Benefit) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current federal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($3,124) |
Current state and local | ' | ' | ' | ' | ' | ' | ' | ' | -254 | 289 | 283 |
Deferred federal, state, and local | ' | ' | ' | ' | ' | ' | ' | ' | 10 | 8 | 7,725 |
Total | $65 | ($422) | $54 | $59 | $123 | $42 | $66 | $66 | ($244) | $297 | $4,884 |
Income_Taxes_Difference_betwee
Income Taxes - Difference between Expected Federal Income Tax Expense Based Upon Statutory Rates and Actual Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected federal income tax benefit at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | ($3,545) | ($3,065) | ($4,316) |
State and local income tax benefits, net of federal income tax effect | ' | ' | ' | ' | ' | ' | ' | ' | -140 | -86 | -164 |
Valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 3,729 | 3,189 | 8,617 |
Return to provision adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38 | 485 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -288 | 221 | 262 |
Total | $65 | ($422) | $54 | $59 | $123 | $42 | $66 | $66 | ($244) | $297 | $4,884 |
Expected federal income tax benefit at statutory rate, rate | ' | ' | ' | ' | ' | ' | ' | ' | -34.00% | -34.00% | -34.00% |
State and local income tax benefits, net of federal income tax effect, rate | ' | ' | ' | ' | ' | ' | ' | ' | -1.30% | -1.00% | -1.30% |
Valuation allowance, rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.80% | 35.40% | 67.90% |
Return to provision adjustment, rate | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.40% | 3.80% |
Other, rate | ' | ' | ' | ' | ' | ' | ' | ' | -2.80% | 2.50% | 2.10% |
Total, rate | ' | ' | ' | ' | ' | ' | ' | ' | -2.30% | 3.30% | 38.50% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2011 | |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Valuation allowance | $14,357,000 | $11,019,000 | $8,600,000 | ' |
Operating loss carryforwards | 11,400,000 | ' | ' | ' |
Unrecognized tax benefits | 5,000 | 186,000 | 186,000 | 186,000 |
Current liabilities for penalties and interest | 6,000 | 284,000 | ' | ' |
Recognized interest component | ($278,000) | $12,000 | $12,000 | ' |
Minimum | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Operating loss carryforwards expiration period | '2030 | ' | ' | ' |
Minimum | State and Local Jurisdiction | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Statues of Limitations | '3 years | ' | ' | ' |
Maximum | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Operating loss carryforwards expiration period | '2032 | ' | ' | ' |
Maximum | State and Local Jurisdiction | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' |
Statues of Limitations | '5 years | ' | ' | ' |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Detail) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | ' | ' | ' |
Deferred gift card revenue | $3,604 | $3,410 | ' |
Deferred rent and lease incentives | 1,993 | 2,122 | ' |
Inventories | 2,212 | 1,439 | ' |
Property and equipment | 6,500 | 6,385 | ' |
Abandoned leases | 417 | 789 | ' |
Operating loss carryforwards | 2,484 | 422 | ' |
Other | 2,006 | 2,250 | ' |
Total deferred tax assets | 19,216 | 16,817 | ' |
Valuation allowance | -14,357 | -11,019 | -8,600 |
Net deferred tax assets | 4,859 | 5,798 | ' |
Deferred tax liabilities: | ' | ' | ' |
Rental assets | -4,919 | -5,848 | ' |
Total deferred tax liabilities | -4,919 | -5,848 | ' |
Net deferred tax liabilities | ($60) | ($50) | ' |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Unrecognized tax positions at beginning of period | $186 | $186 | $186 |
Increases in tax positions from prior years | ' | ' | ' |
Decreases in tax positions from prior years | 181 | ' | ' |
Increases in tax positions from current year | ' | ' | ' |
Settlements with taxing authorities | ' | ' | ' |
Lapse in statute of limitations | ' | ' | ' |
Unrecognized tax positions at end of period | $5 | $186 | $186 |
Other_Comprehensive_Income_Cha
Other Comprehensive Income - Changes in Balances of Each Component of Other Comprehensive Income Included in Accumulated Other Comprehensive Income (Detail) (USD $) | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | Net Unrealized Gain (Loss) on Available-for Sale Securities in Supplemental Executive Retirement Plan | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Balance at beginning of period | $347 | $247 | $247 |
Other comprehensive income before reclassifications | ' | ' | 143 |
Amounts reclassified from accumulated OCI, included in Other Income (Expense) | ' | ' | -43 |
Balance at end of period | $347 | $247 | $347 |
Earnings_Loss_Per_Share_Comput
Earnings (Loss) Per Share - Computations for Basic and Diluted Loss Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Schedule Of Earnings Per Share By Common Class [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $2,334 | ($6,208) | ($4,103) | ($2,206) | $1,210 | ($7,999) | ($3,356) | $832 | ($10,183) | ($9,313) | ($17,579) |
Average shares outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | 8,142 | 8,202 | 8,556 |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | 8,142 | 8,202 | 8,556 |
Earnings (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.29 | ($0.76) | ($0.50) | ($0.27) | $0.15 | ($0.98) | ($0.41) | $0.10 | ($1.25) | ($1.14) | ($2.05) |
Diluted | $0.29 | ($0.76) | ($0.50) | ($0.27) | $0.15 | ($0.98) | ($0.41) | $0.10 | ($1.25) | ($1.14) | ($2.05) |
Earnings_Loss_Per_Share_Additi
Earnings (Loss) Per Share - Additional Information (Detail) | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2011 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Common stock, shares outstanding | 520,777 | 782,443 | 655,083 | 777,193 |
Benefit_Plans_Additional_Infor
Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Employee | |||
Age | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Age condition under Associate Stock Ownership Plan | 21 | ' | ' |
Employee hours worked | '1000 hours | ' | ' |
Contribution from salary | 25.00% | ' | ' |
Quarterly contribution | 25.00% | ' | ' |
Deferral of compensation | 6.00% | ' | ' |
Discretionary match allocated solely | '6 months | ' | ' |
Expenses related to plan | $0.20 | $0.30 | $0.20 |
Number of officers to whom supplemental executive retirement plan assets distributed | 4 | ' | ' |
Supplemental Executive Retirement Plan ("SERP") | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Additional contribution | 10.00% | ' | ' |
Minimum age for vesting under plan | 60 | ' | ' |
SERP Assets | 1.9 | 2.1 | ' |
Period considered in case of involuntary termination | '2 years | ' | ' |
Expense related to SERP | $0.10 | $0.30 | $0.20 |
Supplemental Executive Retirement Plan ("SERP") | Minimum | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Annual contribution | 5.00% | ' | ' |
Supplemental Executive Retirement Plan ("SERP") | Maximum | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Annual contribution | 10.00% | ' | ' |
Associate Stock Ownership Plan ("ASOP") | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Age condition under Associate Stock Ownership Plan | 21 | ' | ' |
Employee hours worked | '1000 hours | ' | ' |
Period of service of full time employee under plan | '1 year | ' | ' |
Common shares held | 323,266 | 350,372 | 352,414 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Shares available for future grant | 296,396 | ' |
Number of stock award plans | 3 | ' |
Term period | '10 years | ' |
Award vesting percent | 20.00% | ' |
Vesting period | '5 years | ' |
Purchase term | '3 years | ' |
Purchase amount | $5,000,000 | ' |
Maximum amount transferable under Stock transfer Agreement | 5,000,000 | ' |
Stock transfer agreement termination date | 9-Feb-19 | ' |
Stock transfer agreement termination period after death of key man | '4 years | ' |
Stock transfer agreement amount | 10,000,000 | ' |
Annual dividend declared per share | ' | $0.02 |
Special dividend declared per share | ' | $0.35 |
2006 Incentive Stock Plan | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Shares available for future grant | 500,000 | ' |
2010 Incentive Stock Plan | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Shares available for future grant | 500,000 | ' |
2012 Outside Directors Plan | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Shares available for future grant | 50,000 | ' |
2012 Stock Grant Plan | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Shares available for future grant | 20,180 | ' |
Annual Issued Grant | $10,000 | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2011 | Jan. 31, 2014 | Jan. 31, 2014 | |
Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Range One | Range Two | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | '5 years | ' | ' | '2 years | ' | ' | ' | ' | ' |
Expiration period | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of stock options | $4,000 | $0 | $7,000 | ' | ' | ' | ' | ' | ' |
Total fair value of stock option granted | 18,000 | 129,000 | 19,000 | ' | ' | ' | ' | ' | ' |
Total fair value of stock option shares vested | $162,000 | $210,000 | $241,000 | ' | ' | ' | ' | ' | ' |
Number of option shares, unvested | 157,054 | 309,994 | ' | ' | ' | 78,750 | 315,282 | ' | ' |
Weighted average exercise price, unvested | $3.63 | $3.90 | ' | ' | ' | $6.45 | $5.83 | ' | ' |
Exercisable and unexercisable, price range per share, lower limit | ' | ' | ' | ' | ' | ' | ' | $1.69 | $5 |
Exercisable and unexercisable, price range per share, upper limit | ' | ' | ' | ' | ' | ' | ' | $4.99 | $8.70 |
Number of options exercisable | 363,723 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price of options exercisable | $4.97 | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Calcul
Stock-Based Compensation - Calculation of Fair Value of Stock Options (Detail) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Calculation of Fair Value of Stock Option | ' | ' | ' |
Expected dividend yield | 0.51% | 0.94% | ' |
Risk-free interest rate | 1.24% | 0.75% | 1.53% |
Expected life in years | '5 years | '5 years 5 months 9 days | '5 years |
Historical Volatility | 0.57% | 0.51% | 0.51% |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option Plans (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Summary of stock option plans | ' | ' | ' |
Options Outstanding, Beginning Balance | 782,443 | 655,083 | 777,193 |
Granted, Options | 10,120 | 140,420 | 10,120 |
Exercised, Options | -25,000 | ' | -12,530 |
Forfeited and expired, Options | -246,786 | -13,060 | -119,700 |
Options Outstanding, Ending Balance | 520,777 | 782,443 | 655,083 |
Outstanding Weighted Average Exercise Price, Beginning Balance | $4.21 | $4.68 | $4.54 |
Granted, Weighted Average Exercise Price | $3.85 | $2.08 | $4.06 |
Exercised, Weighted Average Exercise Price | $2.30 | ' | $2.99 |
Forfeited and expired, Weighted Average Exercise Price | $3.63 | $5.17 | $3.88 |
Outstanding Weighted Average Exercise Price, Ending Balance | $4.57 | $4.21 | $4.68 |
StockBased_Compensation_Option
Stock-Based Compensation - Options Outstanding, both Exercisable and Unexercisable (Detail) (USD $) | 12 Months Ended |
Jan. 31, 2014 | |
Options outstanding, both exercisable and unexercisable | ' |
Options outstanding and exercisable, Aggregate intrinsic value | ' |
Range: $1.69 to $4.99 | ' |
Options outstanding, both exercisable and unexercisable | ' |
Options outstanding and exercisable, Number of Options | 182,967 |
Options outstanding and exercisable, Weighted-average exercise price | $3.18 |
Options outstanding and exercisable, Weighted-average remaining contractual life | '5 years 7 days |
Options outstanding and exercisable, Aggregate intrinsic value | ' |
Options outstanding and unexercisable, Number of Options | 117,006 |
Options outstanding and unexercisable, Weighted-average exercise price | $2.62 |
Options outstanding and unexercisable, Weighted-average remaining contractual life | '8 years 4 months 24 days |
Options outstanding and unexercisable, Aggregate intrinsic value | ' |
Range: $5.00 to $8.70 | ' |
Options outstanding, both exercisable and unexercisable | ' |
Options outstanding and exercisable, Number of Options | 180,756 |
Options outstanding and exercisable, Weighted-average exercise price | $6.79 |
Options outstanding and exercisable, Weighted-average remaining contractual life | '3 years 9 months 29 days |
Options outstanding and exercisable, Aggregate intrinsic value | ' |
Options outstanding and unexercisable, Number of Options | 40,048 |
Options outstanding and unexercisable, Weighted-average exercise price | $6.57 |
Options outstanding and unexercisable, Weighted-average remaining contractual life | '6 years 9 months 15 days |
Options outstanding and unexercisable, Aggregate intrinsic value | ' |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted-Average Exercise Price and the Per Share Weighted-Average Fair Value (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Weighted-average exercise price and the per share weighted-average fair value | ' | ' | ' |
Options granted at market price, Weighted Average Exercise price | $3.85 | $2.05 | $4.06 |
Options granted at prices exceeding market price, Weighted Average Exercise price | ' | $2.26 | ' |
Total options granted, Weighted Average Exercise price | $3.85 | $2.08 | $4.06 |
Options granted at market price, Weighted Average Fair value | $1.83 | $0.87 | $1.85 |
Options granted at prices exceeding market price, Weighted Average Fair value | ' | $0.68 | ' |
Total options granted, Weighted Average Fair value | $1.83 | $0.84 | $1.85 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Information of Restricted Stock Awards (Detail) (USD $) | 12 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | |
Summary of information of restricted stock awards | ' | ' | ' |
Outstanding, Awards, Ending Balance | 157,054 | 309,994 | ' |
Outstanding Weighted - average grant date fair value, Ending Balance | $3.63 | $3.90 | ' |
Restricted Stock | ' | ' | ' |
Summary of information of restricted stock awards | ' | ' | ' |
Outstanding, Awards, Beginning Balance | ' | 78,750 | 315,282 |
Granted, Awards | ' | ' | ' |
Vested, Awards | ' | -78,750 | -191,324 |
Forfeited and expired, Awards | ' | ' | -45,208 |
Outstanding, Awards, Ending Balance | ' | ' | 78,750 |
Outstanding Weighted - average grant date fair value, Beginning Balance | ' | $6.45 | $5.83 |
Granted, Weighted - average grant date fair value | ' | ' | ' |
Vested, Weighted - average grant date fair value | ' | $2 | $5.46 |
Forfeited and expired, Weighted - average grant date fair value | ' | ' | $5.94 |
Outstanding Weighted - average grant date fair value, Ending Balance | ' | ' | $6.45 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Supplemental Cash Flow Information [Line Items] | ' | ' | ' |
Cash payments for interest | $1.30 | $1.30 | $1.40 |
Cash payments (refunds) for income taxes | $0.20 | ($5.30) | ($0.20) |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Jan. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments And Contingencies [Line Items] | ' |
Minimum future payments related to rental assets | $1.10 |
Interim_Financial_Results_Unau2
Interim Financial Results (Unaudited) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Selected quarterly financial data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $136,381 | $94,672 | $95,781 | $109,128 | $141,640 | $101,320 | $104,053 | $115,488 | $435,962 | $462,501 | $496,387 |
Total cost of revenues | 91,480 | 60,731 | 60,162 | 69,337 | 93,844 | 65,053 | 64,088 | 73,044 | 281,710 | 296,030 | 322,672 |
Gross profit | 44,901 | 33,941 | 35,619 | 39,791 | 47,796 | 36,267 | 39,965 | 42,443 | 154,252 | 166,471 | 173,715 |
Selling, general and administrative expenses | 42,226 | 40,337 | 39,388 | 41,745 | 46,178 | 43,957 | 43,035 | 41,290 | 163,698 | 174,461 | 185,107 |
Operating income (loss) | 2,675 | -6,396 | -3,769 | -1,954 | 1,618 | -7,690 | -3,070 | 1,153 | -9,446 | -7,990 | -11,636 |
Interest (expense) and other income, net | -276 | -234 | -280 | -193 | -285 | -267 | -220 | -254 | ' | ' | ' |
Income (loss) before taxes | 2,399 | -6,630 | -4,049 | -2,147 | 1,333 | -7,957 | -3,290 | 899 | -10,427 | -9,016 | -12,695 |
Income tax expense (benefit) | 65 | -422 | 54 | 59 | 123 | 42 | 66 | 66 | -244 | 297 | 4,884 |
Net income (loss) | $2,334 | ($6,208) | ($4,103) | ($2,206) | $1,210 | ($7,999) | ($3,356) | $832 | ($10,183) | ($9,313) | ($17,579) |
Basic | $0.29 | ($0.76) | ($0.50) | ($0.27) | $0.15 | ($0.98) | ($0.41) | $0.10 | ($1.25) | ($1.14) | ($2.05) |
Diluted | $0.29 | ($0.76) | ($0.50) | ($0.27) | $0.15 | ($0.98) | ($0.41) | $0.10 | ($1.25) | ($1.14) | ($2.05) |
Interim_Financial_Results_Unau3
Interim Financial Results (Unaudited) (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
In Millions, unless otherwise specified | Oct. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Jan. 31, 2014 | Jul. 31, 2013 | Jan. 31, 2013 | Oct. 31, 2012 |
Store Assets | Store Assets | Store Assets | Store Assets | ||||||||
Property Plant And Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges related to store asset | ' | ' | ' | ' | $0.30 | $1.40 | $0.80 | $0.20 | $0.10 | $1.30 | $0.10 |
Abandoned lease expense recognized | $0.20 | $0.10 | $0.20 | $0.10 | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | Mar. 17, 2014 |
Subsequent Event | ' |
Subsequent Event [Line Items] | ' |
Common stock voting rights convert to cash per share | $3 |
Merger termination fee | $850,000 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts and Reserves (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 |
Allowance for shrinkage and inventory obsolescence | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at the beginning of period | $4,164 | $5,348 | $6,374 |
Additions charged to costs and expenses | 8,992 | 9,079 | 11,711 |
Deductions for write-offs | -9,243 | -10,263 | -12,737 |
Balance at end of period | 3,913 | 4,164 | 5,348 |
Allowance for costs of inventory returns | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at the beginning of period | 813 | 724 | 833 |
Additions charged to costs and expenses | 3,340 | 3,796 | 4,152 |
Deductions for write-offs | -3,556 | -3,707 | -4,261 |
Balance at end of period | $597 | $813 | $724 |