Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
May. 01, 2016 | Jun. 03, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Hooker Furniture Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --01-29 | |
Entity Common Stock, Shares Outstanding | 11,556,316 | |
Amendment Flag | false | |
Entity Central Index Key | 1,077,688 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | May 1, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 32,354 | $ 53,922 |
Trade accounts receivable, less allowance for doubtful accounts of $3,464 and $1,032 on each respective date | 61,760 | 28,176 |
Inventories | 77,670 | 43,713 |
Prepaid expenses and other current assets | 3,694 | 2,256 |
Total current assets | 175,478 | 128,067 |
Property, plant and equipment, net | 28,192 | 22,768 |
Cash surrender value of life insurance policies (see notes 3 and 8) | 22,246 | 21,888 |
Deferred taxes | 6,633 | 5,350 |
Intangible assets (see notes 3 and 9) | 27,528 | 1,382 |
Goodwill (see notes 3 and 9) | 23,398 | 0 |
Other assets | 2,190 | 2,198 |
Total non-current assets | 110,187 | 53,586 |
Total assets | 285,665 | 181,653 |
Current liabilities | ||
Current portion of term loan | 5,816 | 0 |
Trade accounts payable | 26,275 | 9,105 |
Accrued salaries, wages and benefits | 4,771 | 4,834 |
Income tax accrual | 733 | 357 |
Customer deposits | 4,069 | 797 |
Other accrued expenses | 2,435 | 1,512 |
Total current liabilities | 44,099 | 16,605 |
Long term debt (see note 10) | 46,234 | 0 |
Deferred compensation (see note 11) | 10,619 | 8,409 |
Pension plan (see note 11) | 4,967 | 0 |
Income tax accrual | 168 | 166 |
Other long-term liabilities | 1,416 | 412 |
Total long-term liabilities | 63,404 | 8,987 |
Total liabilities | 107,503 | 25,592 |
Shareholders’ equity | ||
Common stock, no par value, 20,000 shares authorized, 11,556 and 10,818 shares issued and outstanding on each date (see note 4) | 39,434 | 18,667 |
Retained earnings | 138,601 | 137,255 |
Accumulated other comprehensive income | 127 | 139 |
Total shareholders’ equity | 178,162 | 156,061 |
Total liabilities and shareholders’ equity | $ 285,665 | $ 181,653 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | May. 01, 2016 | Jan. 31, 2016 |
Allowance for doubtful accounts (in Dollars) | $ 3,464 | $ 1,032 |
Common stock, shares authorized | 20,000 | 20,000 |
Common stock, shares issued | 11,556 | 10,818 |
Common stock, shares outstanding | 11,556 | 10,818 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Net sales | $ 121,831 | $ 60,956 |
Cost of sales | 95,232 | 44,581 |
Gross profit | 26,599 | 16,375 |
Selling and administrative expenses | 20,944 | 11,133 |
Intangible asset amortization (see notes 3 and 9) | 1,654 | 0 |
Operating income | 4,001 | 5,242 |
Other income, net | 159 | 144 |
Interest expense, net | 263 | 12 |
Income before income taxes | 3,897 | 5,374 |
Income tax expense | 1,397 | 1,902 |
Net income | $ 2,500 | $ 3,472 |
Earnings per share | ||
Basic (in Dollars per share) | $ 0.22 | $ 0.32 |
Diluted (in Dollars per share) | $ 0.22 | $ 0.32 |
Weighted average shares outstanding: | ||
Basic (in Shares) | 11,515 | 10,756 |
Diluted (in Shares) | 11,540 | 10,781 |
Cash dividends declared per share (in Dollars per share) | $ 0.10 | $ 0.10 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Net Income | $ 2,500 | $ 3,472 |
Other comprehensive (loss) income: | ||
Amortization of actuarial (gain) loss | (17) | 45 |
Income tax effect on amortization | 5 | (17) |
Adjustments to net periodic benefit cost | (12) | 28 |
Total comprehensive Income | $ 2,488 | $ 3,500 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Operating Activities: | ||
Net income | $ 2,500 | $ 3,472 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,785 | 620 |
Loss/(Gain) on disposal of assets | (15) | 41 |
Deferred income tax (benefit) expense | (1,276) | 826 |
Noncash restricted stock and performance awards | 629 | 157 |
Provision for doubtful accounts | 16 | 698 |
Changes in assets and liabilities: | ||
Trade accounts receivable | 13,553 | 1,224 |
Inventories | 3,649 | 1,017 |
Income tax receivable | 0 | (178) |
Gain on life insurance policies | (181) | (173) |
Prepaid expenses and other current assets | 335 | 193 |
Trade accounts payable | (5,615) | (1,869) |
Accrued salaries, wages, and benefits | (2,242) | (1,494) |
Accrued income taxes | 376 | (1,368) |
Customer deposits | 651 | 58 |
Other accrued expenses | (639) | 154 |
Deferred compensation | (25) | 146 |
Other long-term liabilities | (40) | 15 |
Net cash provided by operating activities | 14,461 | 3,539 |
Investing Activities: | ||
Acquisition of Home Meridian | (86,062) | 0 |
Purchases of property and equipment | (703) | (428) |
Proceeds received on notes for sale of assets | 26 | 7 |
Premiums paid on life insurance policies | (174) | (168) |
Net cash used in investing activities | (86,913) | (589) |
Financing Activities: | ||
Proceeds from long-term debt | 60,000 | 0 |
Payments for long-term debt | (7,797) | 0 |
Debt issuance cost | (165) | 0 |
Cash dividends paid | (1,154) | (1,079) |
Net cash provided by (used in) financing activities | 50,884 | (1,079) |
Net (decrease) increase in cash and cash equivalents | (21,568) | 1,871 |
Cash and cash equivalents - beginning of year | 53,922 | 38,663 |
Cash and cash equivalents - end of quarter | 32,354 | 40,534 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 2,308 | 2,611 |
Cash paid for interest, net | 164 | 9 |
Non-cash transactions: | ||
Acquisition cost paid in common stock | 20,267 | 0 |
Increase in property and equipment through accrued purchases | $ 44 | $ 0 |
1. Preparation of Interim Finan
1. Preparation of Interim Financial Statements | 3 Months Ended |
May. 01, 2016 | |
Disclosure Text Block [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 1. Preparation of Interim Financial Statements The condensed consolidated financial statements of Hooker Furniture Corporation and subsidiaries (referred to as “we,” “us,” “our,” “Hooker” or the “Company”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these statements include all adjustments necessary for a fair statement of the results of all interim periods reported herein. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) are condensed or omitted pursuant to SEC rules and regulations. However, we believe that the disclosures made are adequate for a fair presentation of our results of operations and financial position. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended January 31, 2016 (“2016 Annual Report”). The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect both the reported amounts of assets and 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 our estimates. Operating results for the interim periods reported herein may not be indicative of the results expected for the fiscal year. References in this document to “HMI” refer to Home Meridian International, the counter-party to the asset purchase agreement we entered into on January 6, 2016. References in this document to “Home Meridian” or “Home Meridian segment” refer to the newly acquired business operations and operating segment that was created upon the closing of the asset purchase agreement on February 1, 2016. On February 1, 2016, we acquired substantially all of the assets and assumed certain liabilities of Home Meridian International, Inc. (“HMI”) for $86 million in cash and the issuance of 716,910 of our common stock valued at $20.3 million (such numbers include agreed upon post-closing working capital adjustments). Based on the way we manage, evaluate and internally report our operations, we determined that Home Meridian’s newly acquired operations will be reported as a separate operating segment. See notes 3 and 13 for additional details on the acquisition and our operating segments. The results of operations of Home Meridian are included in our results of operations beginning on February 1, 2016, the first day of our 2017 fiscal year. Conversely, since the acquisition was completed on the first day of the current fiscal year, comparable prior-year information for the Home Meridian segment is not included in the financial statements presented in this report. The acquisition is discussed in greater detail below in Note 3 Acquisition. We adopted Accounting Standard’s Update (“ASU”) No. 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" We adopted ASU No. 2015-16, "Business Combinations (Topic 805) Simplifying the Accounting for Measurement Period Adjustments", |
2. Fiscal Periods
2. Fiscal Periods | 3 Months Ended |
May. 01, 2016 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 2. Fiscal Periods The financial statements contained herein are being filed as part of a quarterly report on Form 10-Q covering the thirteen-week period (also referred to as “three months,” “three-month period,” “quarter,” “first quarter” or “quarterly period”) that began February 1, 2016 and ended May 1, 2016. These financial statements also include the thirteen-week period that began February 2, 2015 and ended May 3, 2015. References in these notes to the condensed consolidated financial statements of the Company to: § the 2017 fiscal year and comparable terminology mean the fiscal year that began February 1, 2016 and will end January 29, 2017; and § the 2016 fiscal year and comparable terminology mean the fiscal year that began February 2, 2015 and ended January 31, 2016. |
3. Acquisition
3. Acquisition | 3 Months Ended |
May. 01, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 3. Acquisition On February 1, 2016, we completed the previously announced acquisition (the “Acquisition”) of substantially all of the assets of Home Meridian International, Inc. (“HMI”) pursuant to the Asset Purchase Agreement into which we and HMI entered on January 5, 2016 (the “Asset Purchase Agreement”). Upon completion and including post-closing working capital adjustments, we paid $86 million in cash and issued 716,910 shares of our common stock (the “Stock Consideration”) to designees of HMI as consideration for the Acquisition. The Stock Consideration consisted of (i) 530,598 shares due to the $15 million of consideration payable in shares of our common stock under the Asset Purchase Agreement, and (ii) 186,312 shares issued pursuant to working capital adjustments detailed in the Asset Purchase Agreement. The working capital adjustment was driven by an increase in HMI’s accounts receivable due to strong sales towards the end of calendar 2015. The number of shares of common stock issued at closing for the Stock Consideration was determined by reference to the mean closing price of our common stock for the fifteen trading days immediately preceding the closing date ($28.27). Under the Asset Purchase Agreement, we also assumed certain liabilities of HMI, including approximately $7.8 million of liabilities related to certain retirement plans. The assumed liabilities did not include the indebtedness (as defined in the Asset Purchase Agreement) of HMI. Also on February 1, 2016, we entered into an amended and restated loan agreement (the “Loan Agreement”) with Bank of America, N.A. (“BofA”) in connection with the completion of the Acquisition. The Loan Agreement increases the amount available under our existing unsecured revolving credit facility to $30 million and increases the sublimit of such facility available for the issuance of letters of credit to $4 million. The Loan Agreement also provided us with a $41 million unsecured term loan (the “Unsecured Term Loan”) and a $19 million term loan (the “Secured Term Loan”) secured by a security interest in certain Company-owned life insurance policies granted to BofA under a security agreement, dated as of February 1, 2016 (the “Security Agreement”). On February 1, 2016, we borrowed in full the amounts available under the Unsecured Term Loan and the Secured Term Loan in connection with the completion of the Acquisition. For additional details regarding the Loan Agreement, see Note 9 Long Term Debt, below. In accordance with FASB Accounting Standards Codification 805, Business Combinations The following table summarizes the preliminary estimates of the fair values of the identifiable assets acquired and liabilities assumed in the Acquisition as of May 1, 2016. The preliminary estimates of fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in adjustments to the preliminary values presented below, when management’s appraisals and estimates are finalized. Fair value estimates of assets acquired and liabilities assumed Purchase price consideration Cash paid for assets acquired, including working capital adjustment $ 86,062 Value of shares issued for assets acquired 15,000 Value of shares issued for excess net working capital 5,267 Total purchase price $ 106,329 Accounts receivable $ 46,210 Inventory 37,606 Prepaid expenses and other current assets 1,776 Property and equipment 5,801 Intangible assets 27,800 Goodwill 23,398 Accounts payable (22,681 ) Accrued expenses (4,861 ) Pension plan liabilities and deferred compensation balances (8,720 ) Total purchase price $ 106,329 Property and equipment were recorded at fair value and primarily consist of leasehold improvements and will be amortized over their estimated useful lives. Goodwill is calculated as the excess of the purchase price over the net assets acquired. The goodwill recognized is attributable to growth opportunities and expected synergies. All but $1.5 million in goodwill will be deductible for income tax purposes. Intangible assets, net, consist of three separately identified assets: § Home Meridian tradenames of $11.6 million consisting of: o Indefinite-lived intangible assets with an aggregate fair value of $11.4 million. The tradenames are not subject to amortization, but will be evaluated annually and as circumstances dictate, for impairment; and o Definite-lived intangible assets with an aggregate fair value of $200,000, which we expect to amortize over an eight-year period. § Home Meridian customer relationships which are definite-lived intangible assets with an aggregate fair value of $14.4 million. The customer relationships are amortizable and will be amortized over a period of eleven years; and § Home Meridian order backlog which is a definite-lived intangible assets with an aggregate fair value of $1.8 million which we will amortize over five months, with most of the expense recognized in the fiscal 2017 first quarter. The allocation of the purchase price to intangible assets, as well as their estimated useful lives, is preliminary and may be adjusted. We also assumed the net liability for Home Meridian’s legacy pension plans of $8.7 million, which was based on an actuarial valuation performed on February 2, 2016. The market value of pension plan assets, primarily consisting of mutual funds, was $11.6 million on February 2, 2016. Components of net periodic benefit cost for these plans are based on annual actuarial valuations and are included in our condensed consolidated statements of income under selling and administrative expenses. The following unaudited consolidated pro forma summary has been prepared by adjusting our historical data to give effect to the Acquisition as if it had occurred on February 1, 2015: 13 Weeks Ended (in millions except per share data) May 1, 2016 May 3, 2015 (Pro forma) Net Sales $ 121,831 $ 125,800 Net Income 2,500 2,690 Basic EPS $ 0.22 $ 0.23 Diluted EPS $ 0.22 $ 0.23 The unaudited consolidated pro forma financial information was prepared in accordance with existing standards and is not necessarily indicative of the results of operations that would have occurred if the Acquisition had been completed on the date indicated, nor is it indicative of our future operating results. Material non-recurring adjustments excluded from the pro forma financial information in the table above consist of amortization of intangible assets, elimination of transaction related costs and an adjustment of the interest rate on short and long term debt to reflect the interest rates in the Company’s amended credit facility. The unaudited pro forma results do not reflect events that either have occurred or may occur after the Acquisition, including, but not limited to, the anticipated realization of savings from operating synergies in subsequent periods. They also do not give effect to certain charges that we expect to incur in connection with the Acquisition, including, but not limited to, additional professional fees, employee integration, retention, potential asset impairments and accelerated depreciation and amortization. We have incurred approximately $1.0 million in Acquisition related costs so far in fiscal 2017 and expect to incur an additional $400,000 during the remainder of fiscal 2017. These expenses are included in the “Selling and administrative expenses” line of our condensed consolidated statements of income. |
4. Shareholders' Equity
4. Shareholders' Equity | 3 Months Ended |
May. 01, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 4. Shareholders’ Equity The number of shares and the amount of common stock outstanding changed materially from the end of the 2016 fiscal year, as a result of issuing 716,910 shares of common stock to the designees of HMI as partial consideration for the Acquisition. The table below reconciles the number of shares and amounts of common stock outstanding from our most recent fiscal year end to the end of the fiscal 2017 first quarter. The table shows the effects of the Acquisition issuance, as well as other activity in the common stock account unrelated to the Acquisition. Common Stock Shares Amount Oustanding shares January 31, 2016 10,818 $ 18,667 Shares issued for Acquisition 717 20,267 Restricted share grants 21 413 Restricted stock compensation costs - 87 Oustanding shares May 1, 2016 11,556 $ 39,434 |
5. Accounts Receivable
5. Accounts Receivable | 3 Months Ended |
May. 01, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 5. Accounts Receivable May 1, January 31, 2016 2016 Trade accounts receivable $ 61,344 $ 25,520 Receivable from factor 3,880 3,688 Allowance for doubtful accounts (3,464 ) (1,032 ) Accounts receivable $ 61,760 $ 28,176 “Receivable from factor” represents amounts due with respect to factored accounts receivable. Under our current factoring agreement, which continues to serve Bradington-Young (BY), invoices for domestically produced BY upholstery products are generated and transmitted to our customers, with copies to the factor on a daily basis, as products are shipped to our customers. The factor collects the amounts due and remits collected funds to us semi-weekly, less factoring fees. We retain ownership of the accounts receivable until the invoices are 90 days past due. At that time, the factor pays us the net invoice amount, less factoring fees, and takes ownership of the accounts receivable. The factor is then entitled to collect the invoices on its own behalf and retain any subsequent remittances. The invoiced amounts are reported as accounts receivable on our condensed consolidated balance sheets, generally from the date the merchandise is shipped to our customer until payment is received from the factor. A limited number of our accounts receivable for our domestically produced upholstery are factored with recourse to us. The amounts of these receivables at May 1, 2016 and January 31, 2016 were $275,000 and $255,000 , |
6. Inventories
6. Inventories | 3 Months Ended |
May. 01, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 6. Inventories May 1, January 31, 2016 2016 Finished furniture $ 88,881 $ 55,120 Furniture in process 960 727 Materials and supplies 8,181 7,994 Inventories at FIFO 98,022 63,841 Reduction to LIFO basis (20,352 ) (20,128 ) Inventories $ 77,670 $ 43,713 |
7. Property, Plant and Equipmen
7. Property, Plant and Equipment | 3 Months Ended |
May. 01, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 7. Property, Plant and Equipment Depreciable Lives May 1, Jan 31, (In years) 2016 2016 Buildings and land improvements 15 - 30 $ 22,946 $ 22,777 Computer software and hardware 3 - 10 18,460 16,137 Machinery and equipment 10 5,302 4,864 Leasehold improvements 5 9,085 2,817 Furniture and fixtures 3 - 8 2,274 1,453 Other 5 555 546 Total depreciable property at cost 58,622 48,594 Less accumulated depreciation 33,276 27,739 Total depreciable property, net 25,346 20,855 Land 1,067 1,067 Construction-in-progress 1,779 846 Property, plant and equipment, net $ 28,192 $ 22,768 At May 1, 2016, construction-in-progress consisted of approximately $541,000 of expenditures related to our ongoing Enterprise Resource Planning (“ERP”) conversion efforts and approximately $1.2 million of expenditures related to various other projects to enhance our facilities and operations. |
8. Fair Value Measurements
8. Fair Value Measurements | 3 Months Ended |
May. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 8. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the applicable measurement date. We use a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets and liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of May 1, 2016 and January 31, 2016, Company-owned life insurance was measured at fair value on a recurring basis based on Level 2 inputs. The fair value of the Company-owned life insurance is determined by inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Additionally, the fair value of the Company-owned life insurance is marked to market each reporting period and any change in fair value is reflected in income for that period. The majority of our Company-owned life insurance policies are pledged as collateral for the secured term loan (which had a balance of $17.2 million balance at May 1, 2016) that is part of our original $90 million credit facility related to the Home Meridian acquisition (described in Note 10. “Debt” below). As of May 1, 2016, a mortgage note receivable (related to the previously announced sale of our Cloverleaf facility during the fiscal 2015 first quarter) was measured at fair value on a non-recurring basis using Level 3 inputs. The note receivable was recorded at approximately $1.6 million, which was the face value of the note issued for the mortgage. The carrying value of the note receivable is assumed to approximate its fair value. We measure the probability to collect amounts due to us under this note receivable primarily based on the buyer’s payment history. Specifically, we consider the buyer’s adherence to the contractual payment terms for both the timeliness and payment amounts. Should it become probable that we would be unable to collect all amounts due according to the contractual terms of the underlying loan agreement, we would measure the note for impairment and record a valuation allowance against the note receivable, if needed, with the related expense charged to income for that period. The current portion of this note receivable is included on the “Prepaid expenses and other current assets” line of our condensed consolidated balance sheets. The non-current portion of this note receivable is included in the “Other assets” line of our condensed consolidated balance sheets. As of May 1, 2016, the assets of the Home Meridian segment’s legacy Pension Plan (the “Plan”) were measured at fair value on a recurring basis based on Level 1 inputs. Pension plan assets, held in a trust account by the Plan’s trustee, primarily consist of a wide-range of mutual fund asset classes, including domestic and international equities, fixed income securities such as corporate bonds, mortgage-backed securities, real estate investments and U.S. Treasuries. As of the February 2, 2016, the date of the latest actuarial valuation, Plan assets were netted against the Plan’s Projected Benefit Obligation (“PBO”) on that date to determine the Plan’s funded status. Since the PBO exceeded the market value of the Plan’s assets, the funded status is recorded in our condensed consolidated balance sheets as a net liability. At May 1, 2016, the net liability for this plan was $6.2 million, with $1.2 million of that amount (representing expected benefit payments over the next twelve months) included in the “Accrued salaries, wages and benefits” line of our condensed consolidated balance sheets and $5.0 million shown on the “Pension Plan” line of our condensed consolidated balance sheets. The market value of pension plan assets shown below are as of February 2, 2016. See note 11. “Employee Benefit Plans” for additional information about the Plan. Our assets measured at fair value on a recurring basis at May 1, 2016 and January 31, 2016, respectively, were as follows: Fair value at May 1, 2016* Fair value at January 31, 2016 Description Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Assets measured at fair value Company-owned life insurance $ - $ 22,246 $ - $ 22,246 $ - $ 21,888 $ - $ 21,888 Mortgage note receivable - - 1,573 1,573 - - 1,575 1,575 Pension plan assets 11,585 - - 11,585 - - - - *February 2, 2016 for Pension plan assets |
9. Intangible Assets
9. Intangible Assets | 3 Months Ended |
May. 01, 2016 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | 9. Intangible Assets During the fiscal 2017 first quarter, we recorded both non-amortizable and amortizable intangible assets as a result of our acquisition of Home Meridian on February 1, 2016. The acquisition-related trade names, customer relationships and order backlog have been assigned preliminary fair values subject to additional analysis during the measurement period as we continue to gather information. Details of these new intangible assets, as well as previously recorded intangible assets assigned to our Upholstery and All other operating segments, are as follows: May 1, January 31, Non-amortizable Intangible Assets Segment 2016 2016 Goodwill Home Meridian $ 23,398 $ - Trademarks and trade names - Home Meridian Home Meridian 11,400 - Trademarks and trade names - Bradington-Young Upholstery 861 861 Trademarks and trade names - Sam Moore Upholstery 396 396 URL- Homeware.com All other 125 125 Total non-amortizable assets 36,180 1,382 All of our amortizable intangible assets are recorded in our Home Meridian segment. The carrying amounts and changes therein of those amortizable intangible assets were as follows: Amortizable Intangible Assets Customer Relationships Backlog Trademarks Totals Balance at January 31, 2016 $ - $ - $ - $ - Intangibles- HMI acquisition 14,400 1,800 200 16,400 Amortization (327 ) (1,321 ) (6 ) (1,654 ) Balance at May 1, 2016 $ 14,073 $ 479 $ 194 $ 14,746 The estimated amortization expense associated with our amortizable intangible assets is expected to be as follows: Fiscal Year Amount Remainder of 2017 $ 1,480 2018 1,334 2019 1,334 2020 1,334 2021 1,334 Thereafter 7,930 $ 14,746 The expected amortization expense will be approximately $815,000 in the fiscal 2017 second quarter and approximately $335,000 in each of the fiscal 2017 third and fourth quarters. |
10. Debt
10. Debt | 3 Months Ended |
May. 01, 2016 | |
Disclosure Text Block [Abstract] | |
Long-term Debt [Text Block] | 10. Debt On February 1, 2016, we entered into an amended and restated loan agreement (the “Loan Agreement”) with Bank of America, N.A. (“BofA”) in connection with the completion of the Home Meridian acquisition. Also on February 1, 2016, we borrowed in full the amounts available under the Unsecured Term Loan (the “Unsecured Term Loan”) and the Secured Term Loan (the “Secured Term Loan”) in connection with the completion of this acquisition. Details of the individual credit facilities provided for in the Loan Agreement are as follows: § Unsecured revolving line of credit. § Unsecured Term Loan. § Secured Term Loan. We may prepay any outstanding principal amounts borrowed under either the Unsecured Term Loan or the Secured Term Loan in full or in part on any interest payment date without penalty. Since the closing date we have made unscheduled payments of $5.0 million on the Unsecured Term Loan and $1.8 million on the Secured Term Loan, in addition to the regularly-scheduled debt service payments required by the Loan Agreement. Additionally, we incurred $165,000 in debt issuance costs in connection with our terms loans. These costs are amortized over the life of the loan using the interest method and are included in the “interest expense” line of our condensed consolidated income statements. Unamortized debt issuance costs are netted against the carrying value of our term loans on our condensed consolidated balance sheets. As of May 1, 2016, unamortized loan costs of $153,000 were netted against the carrying value of our term loans on our condensed consolidated balance sheets. The Loan Agreement also included customary representations and warranties and requires us to comply with customary covenants, including, among other things, the following financial covenants: § Maintain a tangible net worth of at least: □ As of the fiscal year-end January 31, 2016, $105.0 million plus 40% of net income before taxes earned in the 2016 fiscal year; and □ As of the end of each subsequent fiscal year, the minimum tangible net worth required for the prior fiscal year, plus 40% of net income, before taxes, earned in each subsequent fiscal year. § Maintain a ratio of funded debt to EBITDA not exceeding: □ 2.50:1.0 through August 31, 2017; □ 2.25:1.0 through August 31, 2018; and □ 2.00:1.00 thereafter. § A basic fixed charge coverage ratio of at least 1.25:1.00; and § Limit capital expenditures to no more than $15.0 million during any fiscal year with expenditures to acquire fixed assets pursuant to the Acquisition being excluded for the fiscal year in which the Acquisition occurs. The Loan Agreement also limits our right to incur other indebtedness, make certain investments and create liens upon our assets, subject to certain exceptions, among other restrictions. The Loan Agreement does not restrict our ability to pay cash dividends on, or repurchase, shares of our common stock, subject to our compliance with the financial covenants discussed above, if we are not otherwise in default under the Loan Agreement. We were in compliance with each of these financial covenants at May 1, 2016 and expect to remain in compliance with existing covenants through fiscal 2017 and for the foreseeable future. As of May 1, 2016, we had an aggregate $28.2 million available under our revolving credit facility to fund working capital needs. Standby letters of credit in the aggregate amount of $1.8 million, used to collateralize certain insurance arrangements and for imported product purchases, were outstanding under the revolving credit facility as of May 1, 2016. There were no additional borrowings outstanding under the revolving credit facility on May 1, 2016. Any principal outstanding under the revolving credit facility is due July 31, 2018. Approximately $700,000 of the $1.8 million of our outstanding letters of credit relates to a letter of credit provided for our former captive insurance arrangement. That arrangement officially ended during the fiscal 2017 first quarter and we expect the related letter of credit to be released during the fiscal 2017 second quarter. |
11. Employee Benefit Plans
11. Employee Benefit Plans | 3 Months Ended |
May. 01, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 11. Employee Benefit Plans We maintain a supplemental retirement income plan (“SRIP”) for certain former and current executives of Hooker Furniture Corporation. Additionally, we assumed Home Meridian’s pension plan and other retirement plan liabilities upon completion of the Home Meridian acquisition on February 1, 2016. Home Meridian’s legacy pension plan obligations relate to Pulaski Furniture Corporation, one of two entities combined to form HMI. These legacy pension plan obligations include: § the Pulaski Furniture Corporation Supplemental Executive Retirement Plan (“SERP”) for certain former executives. The SERP is an unfunded plan and all benefits are paid solely out of our general assets; and § the Pulaski Furniture Corporation Pension Plan (“Pension Plan”) for former Pulaski Furniture Corporation employees. The SRIP, SERP and Pension plans are all “frozen” and we do not expect to add additional employees to any of these plans in the future. Pension plan assets include a range of mutual fund asset classes and are measured at fair value using level one inputs, which are quoted prices in active markets. The consolidated liability for our pension plan obligations at May 1, 2016 and January 31, 2016 were $16.8 million and $8.2 million, respectively, and are shown in our condensed consolidated balance sheets as follows: May 1, January 31, 2016 2016 Accrued salaries, wages and benefits (current portions) Hooker SRIP $ 354 $ 354 Home Meridian SERP 262 - Home Meridian Pension 1,191 - Total current portion $ 1,807 $ 354 Long-term portions Hooker SRIP $ 7,895 $ 7,799 Home Meridian SERP 2,169 - Total deferred compensation* 10,064 7,799 Home Meridian Pension Plan 4,967 - Total deferred compensation and pension plans 15,031 $ 7,799 Consolidated pension liabilities $ 16,838 $ 8,153 *Total Deferred Compensation shown in the Long-Term Liabilities section of our Condensed Consolidated Balance Sheets is $10.6 million at May 1, 2016 and $8.4 million at January 31, 2016. These totals include the SRIP and SERP amounts shown in the table above, as well as miscellaneous additional long-term compensation-related items unrelated to these plans. Components of net periodic benefit cost for the SRIP, SERP and pension plans are included in our condensed consolidated statements of income under selling and administrative expenses. Thirteen Weeks Ended May 1, May 3, 2016 2015 Net periodic benefit costs SRIP: Service cost $ 94 $ 101 Interest cost 85 72 Actuarial loss (gain) (18 ) 45 Total SRIP 161 218 SERP: Interest cost 22 - Total SERP 22 - Pension Plan: Interest cost 188 - Expected return on pension plan assets (197 ) Expected administrative expenses 70 - Total Pension Plan 60 - Consolidated net periodic benefit costs $ 244 $ 218 The expected long-term rate of return on Pension Plan assets is 7.0% as of We contributed $146,000 in required contributions to the Pension Plan in the fiscal 2017 first quarter and expect to contribute an additional $450,000 in required contributions to the Pension Plan during fiscal 2017, typically once every fiscal quarter. The SRIP and SERP plans are unfunded plans. Consequently, we expect to pay a total of approximately $450,000 in benefit payments from our general assets during the remainder of fiscal 2017 to fund SRIP and SERP payments. |
12. Earnings Per Share
12. Earnings Per Share | 3 Months Ended |
May. 01, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 12 . Earnings Per Share We refer you to the discussion of Earnings Per Share in Note 1-Summary of Significant Accounting Policies, in the financial statements included in our 2016 Annual Report, for additional information concerning the calculation of earnings per share. We have issued restricted stock awards to non-employee members of the board of directors since 2006 and restricted stock units (RSUs) to certain senior executives since fiscal 2012 under the Company’s Stock Incentive Plan. Each RSU entitles an executive to receive one share of the Company’s common stock if the executive remains continuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of our common stock, cash or both at the discretion of the Compensation Committee of our board of directors. We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated: May 1, January 31, 2016 2016 Restricted shares 30 25 Restricted stock units 20 13 50 38 All restricted shares and RSUs awarded that have not yet vested are considered when computing diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share: Thirteen Weeks Ended May 1, May 3, 2016 2015 Net income $ 2,500 $ 3,472 Less: Unvested participating restricted stock dividends 3 3 Net earnings allocated to unvested participating restricted stock 6 9 Earnings available for common shareholders 2,491 3,460 Weighted average shares outstanding for basic earnings per share 11,515 10,756 Dilutive effect of unvested restricted stock and RSU awards 25 25 Weighted average shares outstanding for diluted earnings per share 11,540 10,781 Basic earnings per share $ 0.22 $ 0.32 Diluted earnings per share $ 0.22 $ 0.32 The increase in the number of shares is primarily due to the issuance of 716,910 shares of our common stock as a result of the Home Meridian acquisition on February 1, 2016. |
13. Income Taxes
13. Income Taxes | 3 Months Ended |
May. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 13. Income Taxes We recorded income tax expense of $1.4 million for the fiscal 2017 first quarter compared to $1.9 million for the comparable prior year period. The effective tax rates for the fiscal 2017 and 2016 first quarters were 35.8% and 35.4%, respectively. Our effective tax rate was higher in the fiscal 2017 first quarter as a result of a higher state rate due to the creation of tax nexus in additional states as part of the Home Meridian acquisition as well as the reduced impact of certain permanent differences as a result of the acquisition. The net unrecognized tax benefits as of May 1, 2016 and January 31, 2016, which, if recognized, would affect our effective tax rate are $168,000 and $221,000, respectively. Tax years ending February 3, 2013, through January 31, 2016 remain subject to examination by federal and state taxing authorities. An examination of the fiscal 2013 with federal taxing authorities was completed during fiscal 2016 with no changes. An examination of our North Carolina state tax returns for fiscal year 2012 and 2013 was completed during the quarter with no material changes. |
14. Segment Information
14. Segment Information | 3 Months Ended |
May. 01, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 14. Segment Information For financial reporting purposes, we are organized into four operating segments – Hooker Casegoods, Home Meridian, Upholstery and an All Other segment, which includes H Contract and Homeware. Based on the way in which we manage, evaluate and internally report our operations, we determined that Home Meridian’s newly acquired operations will be reported as a separate operating segment. The following table presents segment information for the periods, and as of the dates, indicated: Thirteen Weeks Ended May 1, 2016 May 3, 2015 % Net Sales % Net Sales Net Sales Hooker Casegoods $ 32,929 27.0 % $ 38,483 63.1 % Upholstery 21,893 18.0 % 21,303 34.9 % Home Meridian 64,976 53.3 % - All other 2,033 1.7 % 1,332 2.2 % Intercompany eliminations - (162 ) Consolidated $ 121,831 100.0 % $ 60,956 100.0 % Gross Profit & Margin Hooker Casegoods $ 10,154 30.8 % $ 11,301 29.4 % Upholstery 5,076 23.2 % 4,718 22.1 % Home Meridian 10,710 16.5 % - All other 656 32.3 % 351 26.4 % Intercompany eliminations 3 5 Consolidated $ 26,599 21.8 % $ 16,375 26.9 % Operating Income & Margin Hooker Casegoods $ 2,081 6.3 % $ 4,101 10.7 % Upholstery 1,763 8.1 % 1,447 6.8 % Home Meridian 88 0.1 % - All other 67 3.3 % (311 ) -23.3 % Intercompany eliminations 2 5 Consolidated $ 4,001 3.3 % $ 5,242 8.6 % Capital Expenditures Hooker Casegoods $ 380 $ 369 Upholstery 34 59 Home Meridian 289 - All other - - Consolidated $ 703 $ 428 Depreciation & Amortization Hooker Casegoods $ 536 $ 397 Upholstery 229 221 Home Meridian 2,018 All other 2 2 Consolidated $ 2,785 $ 620 As of May 1, 2016 % Total As of January 31, 2016 % Total Total Assets Assets Assets Hooker Casegoods $ 122,396 42.8 % $ 146,794 80.8 % Upholstery 34,561 12.2 % 34,010 18.7 % Home Meridian 127,818 44.7 % - 0.0 % All other 902 0.3 % 863 0.5 % Intercompany eliminations (12 ) (14 ) Consolidated $ 285,665 100.0 % $ 181,653 100.0 % |
15. Contingencies
15. Contingencies | 3 Months Ended |
May. 01, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 15. Contingencies Customs Penalty In September 2009, U.S. Customs and Border Protection (“CBP”) issued an audit report asserting that we had not paid all required antidumping duties due with respect to certain bedroom furniture we imported from China. In February 2015, CBP assessed a civil penalty of approximately $2.1 million and unpaid duties of approximately $500,000 on the matter. In December 2015, in response to our petition to eliminate or modify the assessment, CBP revised the proposed penalty to approximately $1.7 million, while leaving the duty assessment at approximately $500,000. We continue to assert that no antidumping duties are due and that there is no basis for the imposition of a penalty. We intend to vigorously defend against the penalty. In the opinion of management, the ultimate disposition of this matter will not have a material adverse effect on our consolidated financial position, results of operations, or liquidity. |
16. Subsequent Events
16. Subsequent Events | 3 Months Ended |
May. 01, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 16. Subsequent Events Dividends On June 6, 2016, our board of directors declared a quarterly cash dividend of $0.10 per share, payable on June 30, 2016 to shareholders of record at June 16, 2016. |
3. Acquisition (Tables)
3. Acquisition (Tables) | 3 Months Ended |
May. 01, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the preliminary estimates of the fair values of the identifiable assets acquired and liabilities assumed in the Acquisition as of May 1, 2016. The preliminary estimates of fair value of identifiable assets acquired and liabilities assumed are subject to revisions, which may result in adjustments to the preliminary values presented below, when management’s appraisals and estimates are finalized. Fair value estimates of assets acquired and liabilities assumed Purchase price consideration Cash paid for assets acquired, including working capital adjustment $ 86,062 Value of shares issued for assets acquired 15,000 Value of shares issued for excess net working capital 5,267 Total purchase price $ 106,329 Accounts receivable $ 46,210 Inventory 37,606 Prepaid expenses and other current assets 1,776 Property and equipment 5,801 Intangible assets 27,800 Goodwill 23,398 Accounts payable (22,681 ) Accrued expenses (4,861 ) Pension plan liabilities and deferred compensation balances (8,720 ) Total purchase price $ 106,329 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited consolidated pro forma summary has been prepared by adjusting our historical data to give effect to the Acquisition as if it had occurred on February 1, 2015: 13 Weeks Ended (in millions except per share data) May 1, 2016 May 3, 2015 (Pro forma) Net Sales $ 121,831 $ 125,800 Net Income 2,500 2,690 Basic EPS $ 0.22 $ 0.23 Diluted EPS $ 0.22 $ 0.23 |
4. Shareholders' Equity (Tables
4. Shareholders' Equity (Tables) | 3 Months Ended |
May. 01, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | The number of shares and the amount of common stock outstanding changed materially from the end of the 2016 fiscal year, as a result of issuing 716,910 shares of common stock to the designees of HMI as partial consideration for the Acquisition. The table below reconciles the number of shares and amounts of common stock outstanding from our most recent fiscal year end to the end of the fiscal 2017 first quarter. The table shows the effects of the Acquisition issuance, as well as other activity in the common stock account unrelated to the Acquisition. Common Stock Shares Amount Oustanding shares January 31, 2016 10,818 $ 18,667 Shares issued for Acquisition 717 20,267 Restricted share grants 21 413 Restricted stock compensation costs - 87 Oustanding shares May 1, 2016 11,556 $ 39,434 |
5. Accounts Receivable (Tables)
5. Accounts Receivable (Tables) | 3 Months Ended |
May. 01, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | May 1, January 31, 2016 2016 Trade accounts receivable $ 61,344 $ 25,520 Receivable from factor 3,880 3,688 Allowance for doubtful accounts (3,464 ) (1,032 ) Accounts receivable $ 61,760 $ 28,176 |
6. Inventories (Tables)
6. Inventories (Tables) | 3 Months Ended |
May. 01, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | May 1, January 31, 2016 2016 Finished furniture $ 88,881 $ 55,120 Furniture in process 960 727 Materials and supplies 8,181 7,994 Inventories at FIFO 98,022 63,841 Reduction to LIFO basis (20,352 ) (20,128 ) Inventories $ 77,670 $ 43,713 |
7. Property, Plant and Equipm27
7. Property, Plant and Equipment (Tables) | 3 Months Ended |
May. 01, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Depreciable Lives May 1, Jan 31, (In years) 2016 2016 Buildings and land improvements 15 - 30 $ 22,946 $ 22,777 Computer software and hardware 3 - 10 18,460 16,137 Machinery and equipment 10 5,302 4,864 Leasehold improvements 5 9,085 2,817 Furniture and fixtures 3 - 8 2,274 1,453 Other 5 555 546 Total depreciable property at cost 58,622 48,594 Less accumulated depreciation 33,276 27,739 Total depreciable property, net 25,346 20,855 Land 1,067 1,067 Construction-in-progress 1,779 846 Property, plant and equipment, net $ 28,192 $ 22,768 |
8. Fair Value Measurements (Tab
8. Fair Value Measurements (Tables) | 3 Months Ended |
May. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Our assets measured at fair value on a recurring basis at May 1, 2016 and January 31, 2016, respectively, were as follows: Fair value at May 1, 2016* Fair value at January 31, 2016 Description Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Assets measured at fair value Company-owned life insurance $ - $ 22,246 $ - $ 22,246 $ - $ 21,888 $ - $ 21,888 Mortgage note receivable - - 1,573 1,573 - - 1,575 1,575 Pension plan assets 11,585 - - 11,585 - - - - *February 2, 2016 for Pension plan assets |
9. Intangible Assets (Tables)
9. Intangible Assets (Tables) | 3 Months Ended |
May. 01, 2016 | |
Disclosure Text Block [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | May 1, January 31, Non-amortizable Intangible Assets Segment 2016 2016 Goodwill Home Meridian $ 23,398 $ - Trademarks and trade names - Home Meridian Home Meridian 11,400 - Trademarks and trade names - Bradington-Young Upholstery 861 861 Trademarks and trade names - Sam Moore Upholstery 396 396 URL- Homeware.com All other 125 125 Total non-amortizable assets 36,180 1,382 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | All of our amortizable intangible assets are recorded in our Home Meridian segment. The carrying amounts and changes therein of those amortizable intangible assets were as follows: Amortizable Intangible Assets Customer Relationships Backlog Trademarks Totals Balance at January 31, 2016 $ - $ - $ - $ - Intangibles- HMI acquisition 14,400 1,800 200 16,400 Amortization (327 ) (1,321 ) (6 ) (1,654 ) Balance at May 1, 2016 $ 14,073 $ 479 $ 194 $ 14,746 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The estimated amortization expense associated with our amortizable intangible assets is expected to be as follows: Fiscal Year Amount Remainder of 2017 $ 1,480 2018 1,334 2019 1,334 2020 1,334 2021 1,334 Thereafter 7,930 $ 14,746 |
11. Employee Benefit Plans (Tab
11. Employee Benefit Plans (Tables) | 3 Months Ended |
May. 01, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The consolidated liability for our pension plan obligations at May 1, 2016 and January 31, 2016 were $16.8 million and $8.2 million, respectively, and are shown in our condensed consolidated balance sheets as follows: May 1, January 31, 2016 2016 Accrued salaries, wages and benefits (current portions) Hooker SRIP $ 354 $ 354 Home Meridian SERP 262 - Home Meridian Pension 1,191 - Total current portion $ 1,807 $ 354 Long-term portions Hooker SRIP $ 7,895 $ 7,799 Home Meridian SERP 2,169 - Total deferred compensation* 10,064 7,799 Home Meridian Pension Plan 4,967 - Total deferred compensation and pension plans 15,031 $ 7,799 Consolidated pension liabilities $ 16,838 $ 8,153 *Total Deferred Compensation shown in the Long-Term Liabilities section of our Condensed Consolidated Balance Sheets is $10.6 million at May 1, 2016 and $8.4 million at January 31, 2016. These totals include the SRIP and SERP amounts shown in the table above, as well as miscellaneous additional long-term compensation-related items unrelated to these plans. |
Schedule of Net Benefit Costs [Table Text Block] | Components of net periodic benefit cost for the SRIP, SERP and pension plans are included in our condensed consolidated statements of income under selling and administrative expenses. Thirteen Weeks Ended May 1, May 3, 2016 2015 Net periodic benefit costs SRIP: Service cost $ 94 $ 101 Interest cost 85 72 Actuarial loss (gain) (18 ) 45 Total SRIP 161 218 SERP: Interest cost 22 - Total SERP 22 - Pension Plan: Interest cost 188 - Expected return on pension plan assets (197 ) Expected administrative expenses 70 - Total Pension Plan 60 - Consolidated net periodic benefit costs $ 244 $ 218 |
12. Earnings Per Share (Tables)
12. Earnings Per Share (Tables) | 3 Months Ended |
May. 01, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table sets forth the number of outstanding restricted stock awards and RSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated: May 1, January 31, 2016 2016 Restricted shares 30 25 Restricted stock units 20 13 50 38 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share: Thirteen Weeks Ended May 1, May 3, 2016 2015 Net income $ 2,500 $ 3,472 Less: Unvested participating restricted stock dividends 3 3 Net earnings allocated to unvested participating restricted stock 6 9 Earnings available for common shareholders 2,491 3,460 Weighted average shares outstanding for basic earnings per share 11,515 10,756 Dilutive effect of unvested restricted stock and RSU awards 25 25 Weighted average shares outstanding for diluted earnings per share 11,540 10,781 Basic earnings per share $ 0.22 $ 0.32 Diluted earnings per share $ 0.22 $ 0.32 |
14. Segment Information (Tables
14. Segment Information (Tables) | 3 Months Ended |
May. 01, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table presents segment information for the periods, and as of the dates, indicated: Thirteen Weeks Ended May 1, 2016 May 3, 2015 % Net Sales % Net Sales Net Sales Hooker Casegoods $ 32,929 27.0 % $ 38,483 63.1 % Upholstery 21,893 18.0 % 21,303 34.9 % Home Meridian 64,976 53.3 % - All other 2,033 1.7 % 1,332 2.2 % Intercompany eliminations - (162 ) Consolidated $ 121,831 100.0 % $ 60,956 100.0 % Gross Profit & Margin Hooker Casegoods $ 10,154 30.8 % $ 11,301 29.4 % Upholstery 5,076 23.2 % 4,718 22.1 % Home Meridian 10,710 16.5 % - All other 656 32.3 % 351 26.4 % Intercompany eliminations 3 5 Consolidated $ 26,599 21.8 % $ 16,375 26.9 % Operating Income & Margin Hooker Casegoods $ 2,081 6.3 % $ 4,101 10.7 % Upholstery 1,763 8.1 % 1,447 6.8 % Home Meridian 88 0.1 % - All other 67 3.3 % (311 ) -23.3 % Intercompany eliminations 2 5 Consolidated $ 4,001 3.3 % $ 5,242 8.6 % Capital Expenditures Hooker Casegoods $ 380 $ 369 Upholstery 34 59 Home Meridian 289 - All other - - Consolidated $ 703 $ 428 Depreciation & Amortization Hooker Casegoods $ 536 $ 397 Upholstery 229 221 Home Meridian 2,018 All other 2 2 Consolidated $ 2,785 $ 620 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | The following table presents segment information for the periods, and as of the dates, indicated: As of May 1, 2016 % Total As of January 31, 2016 % Total Total Assets Assets Assets Hooker Casegoods $ 122,396 42.8 % $ 146,794 80.8 % Upholstery 34,561 12.2 % 34,010 18.7 % Home Meridian 127,818 44.7 % - 0.0 % All other 902 0.3 % 863 0.5 % Intercompany eliminations (12 ) (14 ) Consolidated $ 285,665 100.0 % $ 181,653 100.0 % |
1. Preparation of Interim Fin33
1. Preparation of Interim Financial Statements (Details) - USD ($) $ in Thousands | Feb. 01, 2016 | May. 01, 2016 | May. 03, 2015 |
1. Preparation of Interim Financial Statements (Details) [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 86,062 | $ 0 | |
Home Meridian International [Member] | |||
1. Preparation of Interim Financial Statements (Details) [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 86,000 | ||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 716,910 | ||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 20,300 |
3. Acquisition (Details)
3. Acquisition (Details) - USD ($) | Feb. 01, 2016 | May. 01, 2016 | May. 03, 2015 | Jan. 31, 2016 | |
3. Acquisition (Details) [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 86,062,000 | $ 0 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 90,000,000 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 11,585,000 | [1] | $ 0 | ||
Home Meridian International [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 86,000,000 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 716,910 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 20,300,000 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Basis for Determining Value | The number of shares of common stock issued at closing for the Stock Consideration was determined by reference to the mean closing price of our common stock for the fifteen trading days immediately preceding the closing date ($28.27). | ||||
Noncash or Part Noncash Acquisition, Other Liabilities Assumed | $ 7,800,000 | ||||
Business Acquisition, Goodwill, Amount No Tax Deductible | 1,500,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 8,700,000 | 8,720,000 | |||
Defined Benefit Plan, Fair Value of Plan Assets | 11,600,000 | ||||
Business Combination, Acquisition Related Costs | 1,000,000 | ||||
Business Combination, Expected Additional Acquisition Related Costs | 400,000 | ||||
Home Meridian International [Member] | Trade Names [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 11,400,000 | ||||
Home Meridian International [Member] | Indefinite-Lived and Finite-Lived Trade Names [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11,600,000 | ||||
Line of Credit [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000,000 | 30,000,000 | |||
Letter of Credit [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 4,000,000 | 4,000,000 | |||
Unsecured Debt [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Debt Instrument, Face Amount | 41,000,000 | 41,000,000 | |||
Secured Debt [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Debt Instrument, Face Amount | $ 19,000,000 | $ 19,000,000 | |||
Trade Names [Member] | Home Meridian International [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 8 years | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 200,000 | ||||
Customer Relationships [Member] | Home Meridian International [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 11 years | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 14,400,000 | ||||
Order or Production Backlog [Member] | Home Meridian International [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 months | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1,800,000 | ||||
Shares Issued for Asset Purchase Agreement [Member] | Home Meridian International [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 530,598 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 15,000,000 | ||||
Share Issued for Working Capital Adjustments [Member] | Home Meridian International [Member] | |||||
3. Acquisition (Details) [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | 186,312 | ||||
[1] | February 2, 2016 for Pension plan assets |
3. Acquisition (Details) - S
3. Acquisition (Details) - Schedule of Business Acquisitions, by Acquisition - USD ($) $ in Thousands | 3 Months Ended | ||
May. 01, 2016 | Feb. 01, 2016 | Jan. 31, 2016 | |
Purchase price consideration | |||
Goodwill | $ 23,398 | $ 0 | |
Home Meridian International [Member] | |||
Purchase price consideration | |||
Cash paid for assets acquired, including working capital adjustment | 86,062 | ||
Value of shares issued for assets acquired | 15,000 | ||
Value of shares issued for excess net working capital | 5,267 | ||
Total purchase price | 106,329 | ||
Accounts receivable | 46,210 | ||
Inventory | 37,606 | ||
Prepaid expenses and other current assets | 1,776 | ||
Property and equipment | 5,801 | ||
Intangible assets | 27,800 | ||
Goodwill | 23,398 | ||
Accounts payable | (22,681) | ||
Accrued expenses | (4,861) | ||
Pension plan liabilities and deferred compensation balances | (8,720) | $ (8,700) | |
Total purchase price | $ 106,329 |
3. Acquisition (Details) - B
3. Acquisition (Details) - Business Acquisition, Pro Forma Information - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Net Sales | $ 121,831 | $ 125,800 |
Net Income | $ 2,500 | $ 2,690 |
Basic EPS | $ 0.22 | $ 0.23 |
Diluted EPS | $ 0.22 | $ 0.23 |
4. Shareholders' Equity (Detail
4. Shareholders' Equity (Details) | Feb. 01, 2016shares |
Home Meridian International [Member] | |
4. Shareholders' Equity (Details) [Line Items] | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 716,910 |
4. Shareholders' Equity (Deta
4. Shareholders' Equity (Details) - Schedule of Common Stock Outstanding Roll Forward shares in Thousands, $ in Thousands | 3 Months Ended |
May. 01, 2016USD ($)shares | |
Schedule of Common Stock Outstanding Roll Forward [Abstract] | |
Oustanding shares January 31, 2016 (in Shares) | shares | 10,818 |
Oustanding shares January 31, 2016 | $ 18,667 |
Shares issued for Acquisition (in Shares) | shares | 717 |
Shares issued for Acquisition | $ 20,267 |
Restricted share grants (in Shares) | shares | 21 |
Restricted share grants | $ 413 |
Restricted stock compensation costs | $ 87 |
Oustanding shares May 1, 2016 (in Shares) | shares | 11,556 |
Oustanding shares May 1, 2016 | $ 39,434 |
5. Accounts Receivable (Details
5. Accounts Receivable (Details) - USD ($) | May. 01, 2016 | Jan. 31, 2016 |
Receivables [Abstract] | ||
Accounts receivable factor recourse | $ 275,000 | $ 255,000 |
5. Accounts Receivable (Detai
5. Accounts Receivable (Details) - Accounts Receivable - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 |
Accounts Receivable [Abstract] | ||
Trade accounts receivable | $ 61,344 | $ 25,520 |
Receivable from factor | 3,880 | 3,688 |
Allowance for doubtful accounts | (3,464) | (1,032) |
Accounts receivable | $ 61,760 | $ 28,176 |
6. Inventories (Details) - Sch
6. Inventories (Details) - Schedule of Inventory, Current - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 |
Schedule of Inventory, Current [Abstract] | ||
Finished furniture | $ 88,881 | $ 55,120 |
Furniture in process | 960 | 727 |
Materials and supplies | 8,181 | 7,994 |
Inventories at FIFO | 98,022 | 63,841 |
Reduction to LIFO basis | (20,352) | (20,128) |
Inventories | $ 77,670 | $ 43,713 |
7. Property, Plant and Equipm42
7. Property, Plant and Equipment (Details) - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 |
7. Property, Plant and Equipment (Details) [Line Items] | ||
Construction in Progress, Gross | $ 1,779 | $ 846 |
Enterprise Resource Planning (ERP) [Member] | ||
7. Property, Plant and Equipment (Details) [Line Items] | ||
Construction in Progress, Gross | 541,000 | |
Various Other Projects to Enhance Facilities and Operations [Member] | ||
7. Property, Plant and Equipment (Details) [Line Items] | ||
Construction in Progress, Gross | $ 1,200 |
7. Property, Plant and Equipm
7. Property, Plant and Equipment (Details) - Property, Plant and Equipment - USD ($) $ in Thousands | 3 Months Ended | |
May. 01, 2016 | Jan. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 58,622 | $ 48,594 |
Less accumulated depreciation | 33,276 | 27,739 |
Total depreciable property, net | 25,346 | 20,855 |
Land | 1,067 | 1,067 |
Construction-in-progress | 1,779 | 846 |
Property, plant and equipment, net | 28,192 | 22,768 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 22,946 | 22,777 |
Computer Software and Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 18,460 | 16,137 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 5,302 | 4,864 |
Property, Plant and Equipment, Depreciable Lives | 10 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,085 | 2,817 |
Property, Plant and Equipment, Depreciable Lives | 5 | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,274 | 1,453 |
Property, Plant and Equipment, Other Types [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 555 | $ 546 |
Property, Plant and Equipment, Depreciable Lives | 5 | |
Minimum [Member] | Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 15 | |
Minimum [Member] | Computer Software and Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 3 | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 3 | |
Maximum [Member] | Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 30 | |
Maximum [Member] | Computer Software and Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 10 | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 8 |
8. Fair Value Measurements (Det
8. Fair Value Measurements (Details) - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 |
8. Fair Value Measurements (Details) [Line Items] | ||
Long-term Debt, Fair Value | $ 17,200 | |
Line of Credit Facility, Maximum Borrowing Capacity | 90,000 | |
Notes Receivable, Fair Value Disclosure | 1,573 | $ 1,575 |
Employee-related Liabilities, Current | 4,771 | $ 4,834 |
Pension Plan [Member] | ||
8. Fair Value Measurements (Details) [Line Items] | ||
Defined Benefit Pension Plan, Liabilities | 6,200 | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 1,200 | |
Employee-related Liabilities, Current | $ 5,000 |
8. Fair Value Measurements (
8. Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 | |
Assets measured at fair value | |||
Company-owned life insurance | $ 22,246 | $ 21,888 | |
Mortgage note receivable | 1,573 | 1,575 | |
Pension plan assets | 11,585 | [1] | 0 |
Fair Value, Inputs, Level 1 [Member] | |||
Assets measured at fair value | |||
Company-owned life insurance | 0 | 0 | |
Mortgage note receivable | 0 | 0 | |
Pension plan assets | 11,585 | [1] | 0 |
Fair Value, Inputs, Level 2 [Member] | |||
Assets measured at fair value | |||
Company-owned life insurance | 22,246 | 21,888 | |
Mortgage note receivable | 0 | 0 | |
Pension plan assets | 0 | [1] | 0 |
Fair Value, Inputs, Level 3 [Member] | |||
Assets measured at fair value | |||
Company-owned life insurance | 0 | 0 | |
Mortgage note receivable | 1,573 | 1,575 | |
Pension plan assets | $ 0 | [1] | $ 0 |
[1] | February 2, 2016 for Pension plan assets |
9. Intangible Assets (Details)
9. Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2016 | May. 01, 2016 | May. 03, 2015 | Jan. 29, 2017 | |
9. Intangible Assets (Details) [Line Items] | ||||
Amortization of Intangible Assets | $ 1,654,000 | $ 0 | ||
Scenario, Forecast [Member] | ||||
9. Intangible Assets (Details) [Line Items] | ||||
Amortization of Intangible Assets | $ 815,000 | $ 335,000 |
9. Intangible Assets (Detail
9. Intangible Assets (Details) - Schedule of Intangible Assets - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 |
9. Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Goodwill | $ 23,398 | $ 0 |
Total non-amortizable assets | 36,180 | 1,382 |
Casegoods [Member] | ||
9. Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
URL- Homeware.com | 125 | 125 |
Bradington-Young [Member] | Upholstery [Member] | ||
9. Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Trademarks and trade names | 861 | 861 |
Sam Moore [Member] | Upholstery [Member] | ||
9. Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Trademarks and trade names | 396 | 396 |
Home Meridian International [Member] | Home Meridian International [Member] | ||
9. Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Trademarks and trade names | $ 11,400 | $ 0 |
9. Intangible Assets (Deta48
9. Intangible Assets (Details) - Schedule of Finite-Lived Intangible Assets - USD ($) $ in Thousands | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Balance at January 31, 2016 | $ 0 | |
Intangibles- HMI acquisition | 16,400 | |
Amortization | (1,654) | $ 0 |
Balance at May 1, 2016 | 14,746 | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Balance at January 31, 2016 | 0 | |
Intangibles- HMI acquisition | 14,400 | |
Amortization | (327) | |
Balance at May 1, 2016 | 14,073 | |
Order or Production Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Balance at January 31, 2016 | 0 | |
Intangibles- HMI acquisition | 1,800 | |
Amortization | (1,321) | |
Balance at May 1, 2016 | 479 | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Balance at January 31, 2016 | 0 | |
Intangibles- HMI acquisition | 200 | |
Amortization | (6) | |
Balance at May 1, 2016 | $ 194 |
9. Intangible Assets (Deta49
9. Intangible Assets (Details) - Finite-lived Intangible Assets Amortization Expense - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 |
Finite-lived Intangible Assets Amortization Expense [Abstract] | ||
Remainder of 2017 | $ 1,480 | |
2,018 | 1,334 | |
2,019 | 1,334 | |
2,020 | 1,334 | |
2,021 | 1,334 | |
Thereafter | 7,930 | |
$ 14,746 | $ 0 |
10. Debt (Details)
10. Debt (Details) - USD ($) | 3 Months Ended | ||
May. 01, 2016 | May. 03, 2015 | Feb. 01, 2016 | |
10. Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 90,000,000 | ||
Repayments of Long-term Debt | 7,797,000 | $ 0 | |
Debt Issuance Costs, Gross | 165,000 | ||
Debt Issuance Costs, Net | $ 153,000 | ||
Line of Credit Facility, Covenant Terms | § Maintain a tangible net worth of at least:□ As of the fiscal year-end January 31, 2016, $105.0 million plus 40% of net income before taxes earned in the 2016 fiscal year; and□ As of the end of each subsequent fiscal year, the minimum tangible net worth required for the prior fiscal year, plus 40% of net income, before taxes, earned in each subsequent fiscal year.§ Maintain a ratio of funded debt to EBITDA not exceeding:□ 2.50:1.0 through August 31, 2017;□ 2.25:1.0 through August 31, 2018; and□ 2.00:1.00 thereafter.§ A basic fixed charge coverage ratio of at least 1.25:1.00; and§ Limit capital expenditures to no more than $15.0 million during any fiscal year with expenditures to acquire fixed assets pursuant to the Acquisition being excluded for the fiscal year in which the Acquisition occurs. | ||
Unsecured Debt [Member] | |||
10. Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 41,000,000 | $ 41,000,000 | |
Debt Instrument, Frequency of Periodic Payment | monthly | ||
Debt Instrument, Periodic Payment, Principal | $ 490,000 | ||
Debt Instrument, Maturity Date | Feb. 1, 2021 | ||
Repayments of Long-term Debt | $ 5,000,000 | ||
Unsecured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
10. Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Secured Debt [Member] | |||
10. Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 19,000,000 | 19,000,000 | |
Debt Instrument, Maturity Date | Feb. 1, 2021 | ||
Debt Instrument, Collateral | interest in certain Company-owned life insurance policies | ||
Repayments of Long-term Debt | $ 1,800,000 | ||
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
10. Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Line of Credit [Member] | |||
10. Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | 30,000,000 | |
Line of Credit Facility, Current Borrowing Capacity | $ 28,200,000 | ||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
10. Debt (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Letter of Credit [Member] | |||
10. Debt (Details) [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | $ 4,000,000 | |
Letters of Credit Outstanding, Amount | 1,800,000 | ||
Provided by Former Captive Insurance Arrangement [Member] | Letter of Credit [Member] | |||
10. Debt (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 700,000 |
11. Employee Benefit Plans (Det
11. Employee Benefit Plans (Details) - USD ($) | 3 Months Ended | |
May. 01, 2016 | Jan. 31, 2016 | |
11. Employee Benefit Plans (Details) [Line Items] | ||
Pension and Other Postretirement and Postemployment Benefit Plans, Liabilities, Current | $ 16,800,000 | $ 8,200,000 |
Deferred Compensation Liability, Classified, Noncurrent | 10,619,000 | $ 8,409,000 |
Defined Benefit Plan, Expected Future Benefit Payments, Remainder of Fiscal Year | $ 450,000 | |
Pension Plan [Member] | ||
11. Employee Benefit Plans (Details) [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 7.00% | |
Defined Benefit Plan, Contributions by Employer | $ 146,000 | |
Defined Benefit Plan, Expected Contributions in Current Fiscal Year | $ 450,000 |
11. Employee Benef
11. Employee Benefit Plans (Details) - Schedule of Defined Benefit Plans Disclosures - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 | |
Accrued salaries, wages and benefits (current portions) | |||
Current portion | $ 1,807 | $ 354 | |
Long-term portions | |||
Deferred compensation | [1] | 10,064 | 7,799 |
Home Meridian Pension Plan | 4,967 | 0 | |
Total deferred compensation and pension plans | 15,031 | 7,799 | |
Consolidated pension liabilities | 16,838 | 8,153 | |
Supplemental Retirement Income Plan ("SRIP") [Member] | |||
Accrued salaries, wages and benefits (current portions) | |||
Current portion | 354 | 354 | |
Long-term portions | |||
Deferred compensation | 7,895 | 7,799 | |
Supplemental Executive Retirement Plan ("SREP") [Member] | |||
Accrued salaries, wages and benefits (current portions) | |||
Current portion | 262 | 0 | |
Long-term portions | |||
Deferred compensation | 2,169 | 0 | |
Pension Plan [Member] | |||
Accrued salaries, wages and benefits (current portions) | |||
Current portion | $ 1,191 | $ 0 | |
[1] | Total Deferred Compensation shown in the Long-Term Liabilities section of our Condensed Consolidated Balance Sheets is $10.6 million at May 1, 2016 and $8.4 million at January 31, 2016. These totals include the SRIP and SERP amounts shown in the table above, as well as miscellaneous additional long-term compensation-related items unrelated to these plans. |
11. Employee Ben53
11. Employee Benefit Plans (Details) - Schedule of Net Benefit Costs - USD ($) $ in Thousands | 12 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
SRIP: | ||
Consolidated net periodic benefit costs | $ 244 | $ 218 |
Supplemental Retirement Income Plan ("SRIP") [Member] | ||
SRIP: | ||
Service cost | 94 | 101 |
Interest cost | 85 | 72 |
Actuarial loss (gain) | (18) | 45 |
Total | 161 | 218 |
Supplemental Executive Retirement Plan ("SREP") [Member] | ||
SRIP: | ||
Interest cost | 22 | 0 |
Total | 22 | 0 |
Pension Plan [Member] | ||
SRIP: | ||
Interest cost | 188 | 0 |
Expected return on pension plan assets | (197) | |
Expected administrative expenses | 70 | 0 |
Total | $ 60 | $ 0 |
12. Earnings Per Share (Deta
12. Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units - shares shares in Thousands | May. 01, 2016 | Jan. 31, 2016 |
12. Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 50 | 38 |
Restricted Stock [Member] | ||
12. Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 30 | 25 |
Restricted Stock Units (RSUs) [Member] | ||
12. Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 20 | 13 |
12. Earnings Per Share (De55
12. Earnings Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||
Net income | $ 2,500 | $ 3,472 |
Less: Unvested participating restricted stock dividends | 3 | 3 |
Net earnings allocated to unvested participating restricted stock | 6 | 9 |
Earnings available for common shareholders | $ 2,491 | $ 3,460 |
Weighted average shares outstanding for basic earnings per share (in Shares) | 11,515 | 10,756 |
Dilutive effect of unvested restricted stock and RSU awards (in Shares) | 25 | 25 |
Weighted average shares outstanding for diluted earnings per share (in Shares) | 11,540 | 10,781 |
Basic earnings per share (in Dollars per share) | $ 0.22 | $ 0.32 |
Diluted earnings per share (in Dollars per share) | $ 0.22 | $ 0.32 |
13. Income Taxes (Details)
13. Income Taxes (Details) - USD ($) | 3 Months Ended | ||
May. 01, 2016 | May. 03, 2015 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Expense (Benefit) | $ 1,397,000 | $ 1,902,000 | |
Effective Income Tax Rate Reconciliation, Percent | 35.80% | 35.40% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 168,000 | $ 221,000 |
14. Segment Information (Detail
14. Segment Information (Details) | 3 Months Ended |
May. 01, 2016 | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 4 |
14. Segment Information (Det
14. Segment Information (Details) - Segment Reporting Information - USD ($) $ in Thousands | 3 Months Ended | |
May. 01, 2016 | May. 03, 2015 | |
Net Sales | ||
Net Sales | $ 121,831 | $ 60,956 |
% of Net Sales | 100.00% | 100.00% |
Gross Profit & Margin | ||
Gross Profit | $ 26,599 | $ 16,375 |
% of Net Sales, Gross Profit | 21.80% | 26.90% |
Operating Income & Margin | ||
Operating Income | $ 4,001 | $ 5,242 |
% of Net Sales, Operating Income | 3.30% | 8.60% |
Capital Expenditures | ||
Capital Expenditures | $ 703 | $ 428 |
Depreciation & Amortization | ||
Depreciation & Amortization | 2,785 | 620 |
Intersegment Eliminations [Member] | ||
Net Sales | ||
Net Sales | 0 | (162) |
Gross Profit & Margin | ||
Gross Profit | 3 | 5 |
Operating Income & Margin | ||
Operating Income | 2 | 5 |
Casegoods [Member] | ||
Net Sales | ||
Net Sales | $ 32,929 | $ 38,483 |
% of Net Sales | 27.00% | 63.10% |
Gross Profit & Margin | ||
Gross Profit | $ 10,154 | $ 11,301 |
% of Net Sales, Gross Profit | 30.80% | 29.40% |
Operating Income & Margin | ||
Operating Income | $ 2,081 | $ 4,101 |
% of Net Sales, Operating Income | 6.30% | 10.70% |
Capital Expenditures | ||
Capital Expenditures | $ 380 | $ 369 |
Depreciation & Amortization | ||
Depreciation & Amortization | 536 | 397 |
Upholstery [Member] | ||
Net Sales | ||
Net Sales | $ 21,893 | $ 21,303 |
% of Net Sales | 18.00% | 34.90% |
Gross Profit & Margin | ||
Gross Profit | $ 5,076 | $ 4,718 |
% of Net Sales, Gross Profit | 23.20% | 22.10% |
Operating Income & Margin | ||
Operating Income | $ 1,763 | $ 1,447 |
% of Net Sales, Operating Income | 8.10% | 6.80% |
Capital Expenditures | ||
Capital Expenditures | $ 34 | $ 59 |
Depreciation & Amortization | ||
Depreciation & Amortization | 229 | 221 |
Home Meridian International [Member] | ||
Net Sales | ||
Net Sales | $ 64,976 | 0 |
% of Net Sales | 53.30% | |
Gross Profit & Margin | ||
Gross Profit | $ 10,710 | 0 |
% of Net Sales, Gross Profit | 16.50% | |
Operating Income & Margin | ||
Operating Income | $ 88 | 0 |
% of Net Sales, Operating Income | 0.10% | |
Capital Expenditures | ||
Capital Expenditures | $ 289 | 0 |
Depreciation & Amortization | ||
Depreciation & Amortization | 2,018 | |
Other Segments [Member] | ||
Net Sales | ||
Net Sales | $ 2,033 | $ 1,332 |
% of Net Sales | 1.70% | 2.20% |
Gross Profit & Margin | ||
Gross Profit | $ 656 | $ 351 |
% of Net Sales, Gross Profit | 32.30% | 26.40% |
Operating Income & Margin | ||
Operating Income | $ 67 | $ (311) |
% of Net Sales, Operating Income | 3.30% | (23.30%) |
Capital Expenditures | ||
Capital Expenditures | $ 0 | $ 0 |
Depreciation & Amortization | ||
Depreciation & Amortization | $ 2 | $ 2 |
14. Segment Information (D59
14. Segment Information (Details) - Assets from Segments to Consolidated - USD ($) $ in Thousands | May. 01, 2016 | Jan. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 285,665 | $ 181,653 |
% Total Assets | 100.00% | 100.00% |
Intersegment Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ (12) | $ (14) |
Casegoods [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 122,396 | $ 146,794 |
% Total Assets | 42.80% | 80.80% |
Upholstery [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 34,561 | $ 34,010 |
% Total Assets | 12.20% | 18.70% |
Home Meridian International [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 127,818 | $ 0 |
% Total Assets | 44.70% | 0.00% |
Other Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 902 | $ 863 |
% Total Assets | 0.30% | 0.50% |
15. Contingencies (Details)
15. Contingencies (Details) - USD ($) | 1 Months Ended | |
Dec. 31, 2015 | Feb. 28, 2015 | |
Antidumping Duties, Civil Penalty [Member] | ||
15. Contingencies (Details) [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 1,700,000 | $ 2,100,000 |
Antidumping Duties [Member] | ||
15. Contingencies (Details) [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 500,000 | |
Loss Contingency Accrual | $ 500,000 |
16. Subsequent Events (Details)
16. Subsequent Events (Details) - $ / shares | Jun. 06, 2016 | May. 01, 2016 | May. 03, 2015 |
16. Subsequent Events (Details) [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.10 | $ 0.10 | |
Subsequent Event [Member] | |||
16. Subsequent Events (Details) [Line Items] | |||
Dividends Payable, Date Declared | Jun. 6, 2016 | ||
Dividends Payable, Date to be Paid | Jun. 30, 2016 | ||
Dividends Payable, Date of Record | Jun. 16, 2016 | ||
Common Stock, Dividends, Per Share, Declared | $ 0.10 |