Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Aug. 04, 2019 | Sep. 06, 2019 | |
Document Information Line Items | ||
Entity Registrant Name | Hooker Furniture Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --01-31 | |
Entity Common Stock, Shares Outstanding | 11,838,367 | |
Amendment Flag | false | |
Entity Central Index Key | 0001077688 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Aug. 4, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Ex Transition Period | false | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Assets | ||
Cash and cash equivalents | $ 13,289 | $ 11,435 |
Trade accounts receivable, net | 86,298 | 112,557 |
Inventories | 113,593 | 105,204 |
Income tax recoverable | 3,856 | 0 |
Prepaid expenses and other current assets | 6,966 | 5,735 |
Total current assets | 224,002 | 234,931 |
Property, plant and equipment, net | 30,925 | 29,482 |
Cash surrender value of life insurance policies | 24,763 | 23,816 |
Deferred taxes | 2,349 | 4,522 |
Operating leases right-of-use assets | 42,536 | 0 |
Intangible assets, net | 34,563 | 35,755 |
Goodwill | 40,058 | 40,058 |
Other assets | 1,414 | 1,152 |
Total non-current assets | 176,608 | 134,785 |
Total assets | 400,610 | 369,716 |
Liabilities and Shareholders’ Equity | ||
Current portion of term loans | 5,846 | 5,829 |
Trade accounts payable | 31,829 | 40,838 |
Accrued salaries, wages and benefits | 5,146 | 8,002 |
Income tax accrual | 0 | 3,159 |
Customer deposits | 5,498 | 3,023 |
Current portion of lease liabilities | 6,447 | 0 |
Other accrued expenses | 4,597 | 3,564 |
Total current liabilities | 59,363 | 64,415 |
Long term debt | 26,697 | 29,628 |
Deferred compensation | 10,847 | 11,513 |
Lease liabilities | 36,567 | 0 |
Other long-term liabilities | 3 | 984 |
Total long-term liabilities | 74,114 | 42,125 |
Total liabilities | 133,477 | 106,540 |
Shareholders’ equity | ||
Common stock, no par value, 20,000 shares authorized, 11,838 and 11,785 shares issued and outstanding on each date | 50,844 | 49,549 |
Retained earnings | 215,986 | 213,380 |
Accumulated other comprehensive income | 303 | 247 |
Total shareholders’ equity | 267,133 | 263,176 |
Total liabilities and shareholders’ equity | $ 400,610 | $ 369,716 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - shares shares in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Common stock, shares authorized | 20,000 | 20,000 |
Common stock, shares issued | 11,838 | 11,785 |
Common stock, shares outstanding | 11,838 | 11,785 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Net sales | $ 152,248 | $ 168,661 | $ 287,766 | $ 311,553 |
Cost of sales | 123,422 | 133,016 | 233,423 | 243,942 |
Gross profit | 28,826 | 35,645 | 54,343 | 67,611 |
Selling and administrative expenses | 22,462 | 23,184 | 44,478 | 45,171 |
Intangible asset amortization | 596 | 596 | 1,192 | 1,192 |
Operating income | 5,768 | 11,865 | 8,673 | 21,248 |
Other (expense)/income, net | (32) | 73 | (94) | 77 |
Interest expense, net | 328 | 364 | 669 | 745 |
Income before income taxes | 5,408 | 11,574 | 7,910 | 20,580 |
Income tax expense | 1,248 | 2,881 | 1,763 | 4,730 |
Net income | $ 4,160 | $ 8,693 | $ 6,147 | $ 15,850 |
Basic (in Dollars per share) | $ 0.35 | $ 0.74 | $ 0.52 | $ 1.35 |
Diluted (in Dollars per share) | $ 0.35 | $ 0.74 | $ 0.52 | $ 1.34 |
Basic (in Shares) | 11,787 | 11,760 | 11,778 | 11,755 |
Diluted (in Shares) | 11,810 | 11,784 | 11,811 | 11,775 |
Cash dividends declared per share (in Dollars per share) | $ 0.15 | $ 0.14 | $ 0.30 | $ 0.28 |
Cost of Sales [Member] | ||||
Cost of sales | $ 123,422 | $ 132,516 | $ 233,423 | $ 243,442 |
Casualty Loss [Member] | ||||
Cost of sales | $ 0 | $ 500 | $ 0 | $ 500 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Net Income | $ 4,160 | $ 8,693 | $ 6,147 | $ 15,850 |
Other comprehensive income (loss): | ||||
Amortization of actuarial loss | 37 | 43 | 74 | 86 |
Income tax effect on amortization | (9) | (10) | (18) | (21) |
Adjustments to net periodic benefit cost | 28 | 33 | 56 | 65 |
Reclassification of tax effects due to the adoption of ASU 2018-02 | 0 | 0 | 0 | 111 |
Total Comprehensive Income | $ 4,188 | $ 8,726 | $ 6,203 | $ 16,026 |
CONDISENSED CONSOLIDATED STATEM
CONDISENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2019 | Jul. 29, 2018 | |
Operating Activities: | ||
Net income | $ 6,147 | $ 15,850 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,471 | 3,689 |
Gain on disposal of assets | (285) | (48) |
Deferred income tax expense | 2,155 | 748 |
Noncash restricted stock and performance awards | 558 | 548 |
Provision/(benefit from) for doubtful accounts and sales allowances | 1,053 | (785) |
Gain on life insurance policies | (624) | (504) |
Changes in assets and liabilities: | ||
Trade accounts receivable | 25,206 | 10,842 |
Inventories | (8,389) | (14,584) |
Income tax recoverable | (3,856) | 0 |
Prepaid expenses and other current assets | (3,191) | (672) |
Trade accounts payable | (9,058) | 4,281 |
Accrued salaries, wages, and benefits | (2,856) | (1,804) |
Accrued income taxes | (3,159) | (3,719) |
Customer deposits | 2,475 | 798 |
Operating lease liabilities | 187 | 0 |
Other accrued expenses | 1,033 | 702 |
Deferred compensation | 145 | 42 |
Other long-term liabilities | 0 | 81 |
Net cash provided by operating activities | 11,012 | 15,465 |
Investing Activities: | ||
Purchases of property and equipment | (3,659) | (833) |
Proceeds received from sale of assets | 1,459 | 70 |
Proceeds received on life insurance policies | 0 | 1,225 |
Premiums paid on life insurance policies | (489) | (529) |
Net cash used in investing activities | (2,689) | (67) |
Financing Activities: | ||
Payments for long-term debt | (2,928) | (13,786) |
Cash dividends paid | (3,541) | (3,296) |
Net cash used in financing activities | (6,469) | (17,082) |
Net increase/(decrease) in cash and cash equivalents | 1,854 | (1,684) |
Cash and cash equivalents - beginning of year | 11,435 | 30,915 |
Cash and cash equivalents - end of quarter | 13,289 | 29,231 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 6,622 | 7,699 |
Cash paid for interest, net | 599 | 632 |
Non-cash transactions: | ||
Increase in lease liabilities arising from obtaining right-of-use assets | 266 | 0 |
Increase in property and equipment through accrued purchases | $ 49 | $ 20 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Jan. 28, 2018 | $ 48,970 | $ 180,122 | $ 368 | $ 229,460 |
Balance (in Shares) at Jan. 28, 2018 | 11,762 | |||
Net income | 15,850 | 15,850 | ||
Prior year adjustment for ASU 2014-09 and 2018-02 | 99 | 111 | 210 | |
Unrealized loss on defined benefit plan, net of tax | 65 | 65 | ||
Cash dividends paid and accrued | (3,296) | (3,296) | ||
Restricted stock grants, net of forfeitures | $ (29) | (29) | ||
Restricted stock grants, net of forfeitures (in Shares) | 23 | |||
Restricted stock compensation cost | $ 283 | 283 | ||
Balance at Jul. 29, 2018 | $ 49,224 | 192,775 | 544 | 242,543 |
Balance (in Shares) at Jul. 29, 2018 | 11,785 | |||
Balance at Feb. 03, 2019 | $ 49,549 | 213,380 | 247 | $ 263,176 |
Balance (in Shares) at Feb. 03, 2019 | 11,785 | 11,785 | ||
Net income | 6,147 | $ 6,147 | ||
Unrealized loss on defined benefit plan, net of tax | 56 | 56 | ||
Cash dividends paid and accrued | (3,541) | (3,541) | ||
Restricted stock grants, net of forfeitures | $ 344 | 344 | ||
Restricted stock grants, net of forfeitures (in Shares) | 53 | |||
Restricted stock compensation cost | $ 367 | 367 | ||
Recognition of PSUs as equity-based awards | 584 | 584 | ||
Balance at Aug. 04, 2019 | $ 50,844 | $ 215,986 | $ 303 | $ 267,133 |
Balance (in Shares) at Aug. 04, 2019 | 11,838 | 11,838 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2019 | Jul. 29, 2018 | |
Unrealized gain loss on defined benefit plan, tax | $ (18) | $ (21) |
Cash dividends paid and accrued, per share | $ 0.15 | $ 0.14 |
NOTE 1 - Preparation of Interim
NOTE 1 - Preparation of Interim Financial Statements | 6 Months Ended |
Aug. 04, 2019 | |
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 February 3, 2019 (“2019 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. 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,” “second quarter” or “quarterly period”) that began May 6, 2019, and the twenty-six week period (also referred to as “six months”, “six-month period” or “first half”) that began February 4, 2019, which both ended August 4, 2019. This report discusses our results of operations for this period compared to the 2019 fiscal year thirteen-week period that began April 30, 2018 and the twenty-six week period that began January 29, 2018, which both ended July 29, 2018; and our financial condition as of August 4, 2019 compared to February 3, 2019. References in these notes to the condensed consolidated financial statements of the Company to: ■ the 2020 fiscal year and comparable terminology mean the fifty-two-week fiscal year that began February 4, 2019 and will end February 2, 2020; and ■ the 2019 fiscal year and comparable terminology mean the fifty-three-week fiscal year that began January 29, 2018 and ended February 3, 2019. |
NOTE 2 - Recently Adopted Accou
NOTE 2 - Recently Adopted Accounting Policies | 6 Months Ended |
Aug. 04, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | 2. Recently Adopted Accounting Policies In February 2016, the FASB issued ASU No. 2016-02, Leases Land Easement Practical Expedient for Transition to Topic 842 Codification Improvements to Topic 842, Leases Targeted Improvements |
NOTE 3 - Accounts Receivable
NOTE 3 - Accounts Receivable | 6 Months Ended |
Aug. 04, 2019 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Accounts Receivable August 4, February 3, 2019 2019 Trade accounts receivable $ 90,142 $ 117,732 Other accounts receivable allowances (3,103 ) (4,267 ) Allowance for doubtful accounts (741 ) (908 ) Accounts receivable $ 86,298 $ 112,557 |
NOTE 4 - Inventories
NOTE 4 - Inventories | 6 Months Ended |
Aug. 04, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 4 . Inventories August 4, February 3, 2019 2019 Finished furniture $ 123,724 $ 112,847 Furniture in process 1,361 1,825 Materials and supplies 9,867 10,896 Inventories at FIFO 134,952 125,568 Reduction to LIFO basis (21,359 ) (20,364 ) Inventories $ 113,593 $ 105,204 |
NOTE 5 - Property, Plant and Eq
NOTE 5 - Property, Plant and Equipment | 6 Months Ended |
Aug. 04, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property, Plant and Equipment Depreciable Lives August 4, February 3, (In years) 2019 2019 Buildings and land improvements 15 - 30 $ 25,058 $ 24,588 Computer software and hardware 3 - 10 18,981 18,719 Machinery and equipment 10 9,320 8,934 Leasehold improvements Term of lease 9,443 9,376 Furniture and fixtures 3 - 10 2,433 2,318 Other 5 665 665 Total depreciable property at cost 65,900 64,600 Less accumulated depreciation 41,942 39,925 Total depreciable property, net 23,958 24,675 Land 1,067 1,067 Construction-in-progress 5,900 3,740 Property, plant and equipment, net $ 30,925 $ 29,482 |
NOTE 6 - Fair Value Measurement
NOTE 6 - Fair Value Measurements | 6 Months Ended |
Aug. 04, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 6. Fair Value Measurements Fair value is the price that would be received upon the sale of an asset or paid upon the transfer of 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 August 4, 2019 and February 3, 2019, 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. On January 30, 2019, our Board of Directors voted to terminate the Pension Plan. Pension Plan termination is an eighteen to twenty-four-month process, that involves seeking certain approvals from both the IRS and Pension Benefit Guaranty Corporation (“PBGC”). As of February 3, 2019, current Pension Plan assets are invested in bond funds and are measured at fair value using Level 1 inputs, which are quoted prices in active markets. As of February 3, 2019, the funded status for this plan was $86,000 shown on the “Other assets” line of our condensed consolidated balance sheets. See Note 10. Employee Benefit Plans for additional information about the Plan. Our assets measured at fair value on a recurring basis at August 4, 2019 and February 3, 2019, were as follows: Fair value at August 4, 2019 Fair value at February 3, 2019 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 $ - $ 24,763 $ - $ 24,763 $ - $ 23,816 $ - $ 23,816 Pension Plan assets* 10,992 - - 10,992 10,992 - - 10,992 * as of February 3, 2019 for Pension Plan assets. |
NOTE 7 - Intangible Assets
NOTE 7 - Intangible Assets | 6 Months Ended |
Aug. 04, 2019 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | 7. Intangible Assets August 4, February 3, Non-amortizable Intangible Assets Segment 2019 2019 Goodwill Home Meridian $ 23,187 $ 23,187 Goodwill All Other 16,871 16,871 Total Goodwill 40,058 40,058 Trademarks and trade names - Home Meridian Home Meridian 11,400 11,400 Trademarks and trade names - Bradington-Young All Other 861 861 Trademarks and trade names - Sam Moore All Other 396 396 Total Trademarks and trade names $ 12,657 $ 12,657 Total non-amortizable assets $ 52,715 $ 52,715 Our amortizable intangible assets are recorded in our Home Meridian segment and All Other. The carrying amounts and changes therein of those amortizable intangible assets were as follows: Amortizable Intangible Assets Customer Relationships Trademarks Totals Balance at February 3, 2019 $ 22,320 $ 778 $ 23,098 Amortization (1,162 ) (30 ) (1,192 ) Balance at August 4, 2019 $ 21,158 $ 748 $ 21,906 For the remainder of fiscal 2020, amortization expense is expected to be approximately $1.2 million. |
NOTE 8 - Leases
NOTE 8 - Leases | 6 Months Ended |
Aug. 04, 2019 | |
ASU 2016-02 Transition [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | 8. Lease s On February 4, 2019, we adopted Accounting Standards Codification Topic 842 Leases. Leases are classified as either finance leases or operating leases based on criteria in Topic 842. All of our leases are classified as operating leases. We do not currently have finance leases but could in the future. Operating lease right-of-use (“ROU”) assets and liabilities are recognized on the adoption date based on the present value of lease payments over the remaining lease term. As interest rates are not explicitly stated or implicit in any of our leases, we utilized our incremental borrowing rate at the adoption date of February 4, 2019, which was one-month LIBOR plus 1.5%. For leases without explicitly stated or implicit interest rates that commenced after the adoption date, we used our incremental borrowing rate which was one-month LIBOR at the lease commencement date plus 1.5%. ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. At the inception of a lease, we allocate the consideration in the contract to each lease and non-lease component based on the component's relative stand-alone price to determine the lease payments. Lease and non-lease components are accounted for separately. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Some of our real estate leases contain variable lease payments, including payments based on the percentage increase in the Consumer Price Index for Urban Consumers (“CPI-U”). We used February 2019 CPI-U issued by the US Department of Labor’s Bureau of Labor Statistics to measure lease payments and calculate lease liabilities. Additional payments based on the change in an index or rate, or payments based on a change in our portion of the operating expenses, including real estate taxes and insurance, are recorded when incurred. We have a sub-lease at one of our warehouses. In accordance with the provisions of Topic 842, since we have not been relieved as the primary obligor of the warehouse lease, we cannot net the sublease income against our lease payment to calculate the lease liability and ROU asset. Our practice has been, and we will continue to, straight-line the sub-lease income over the term of the sublease. We recognized $87,000 and $217,000 sub-lease income for the three-month and six-month period ended August 4, 2019, respectively. Our leases have remaining lease terms of less than one year to seven years, some of which include options to extend the leases for up to seven years. We have elected not to recognize ROU assets and lease liabilities that arise from short term leases for any class of underlying asset. Short term leases are leases with lease terms of 12 months or less with either (a) no renewal option or (b) a renewal option which we are not reasonably certain to exercise. We have elected to adopt a package of practical expedients provided under Topic 842 that allows us not to reassess: (a) whether expired or existing contracts contain a lease under the new definition of a lease; (b) lease classification of expired or existing leases; and (c) whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. The components of lease cost and supplemental cash flow information for leases for the three-month and six-month periods ended August 4, 2019 were: 13 Weeks Ended 26 Weeks Ended August 4, 2019 August 4, 2019 Operating lease cost $ 2,123 $ 4,200 Short-term lease cost 178 291 Total operating lease cost $ 2,301 $ 4,491 Operating cash outflows $ 1,948 $ 4,334 The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheets as of August 4, 2019 were: August 4, 2019 Real estate $ 41,308 Property and equipment 1,228 Total operating leases right-of-use assets $ 42,536 Current portion of operating lease liabilities $ 6,447 Long term operating lease liabilities 36,567 Total operating lease liabilities $ 43,014 Weighted-average remaining lease term is 7.7 years. We used our incremental borrowing rate which is LIBOR plus 1.5% at the adoption date. The weighted-average discount rate is 4.00%. The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheet at August 4, 2019: Undiscounted Future Operating Lease Payments Remainder of 2019 $ 4,069 2020 7,728 2021 7,112 2022 5,518 2023 5,266 2024 and thereafter 20,396 Total lease payments $ 50,089 Less: impact of discounting (7,075 ) Present value of lease payments $ 43,014 As of August 4, 2019, we did not have any additional operating or finance leases that had not yet commenced. |
NOTE 9 - Long-Term Debt
NOTE 9 - Long-Term Debt | 6 Months Ended |
Aug. 04, 2019 | |
Disclosure Text Block [Abstract] | |
Long-term Debt [Text Block] | 9. Long-Term Debt As of August 4, 2019, we had an aggregate $27.8 million available under our revolving credit facility to fund working capital needs. Standby letters of credit in the aggregate amount of $2.2 million, used to collateralize certain insurance arrangements and for imported product purchases, were outstanding under the revolving credit facility as of August 4, 2019. There were no additional borrowings outstanding under the revolving credit facility as of August 4, 2019. |
NOTE 10 - Employee Benefit Plan
NOTE 10 - Employee Benefit Plans | 6 Months Ended |
Aug. 04, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 10. Employee Benefit Plans We maintain three retirement plans for the benefit of certain former and current employees, including a supplemental retirement income plan (“SRIP”) for certain former and current employees of Hooker Furniture Corporation, as well as two plans for the benefit of certain and former employees of Pulaski Furniture Corporation, which we assumed when we acquired the business of Home Meridian International. 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 Pension Plan for former Pulaski Furniture Corporation employees. The SRIP, SERP and Pension Plan are all “frozen” and we do not expect to add additional participants to any of these plans in the future. On January 30, 2019, our Board of Directors voted to terminate the Pension Plan. Pension Plan termination is an eighteen to twenty-four-month process, that involves seeking certain approvals from both the IRS and PBGC. Once we receive the appropriate approvals, an insurance company will be selected to provide annuities for participants at an amount equal to their current monthly pension benefit. Upon settlement of the pension liability, we will reclassify the related pension losses currently recorded in accumulated other comprehensive loss, to the consolidated statements of operations. We expect to record pension settlement expenses and excess costs, if any, to terminate the plan. We do not expect these expenses and costs to be material. As of August 4, 2019, current Pension Plan assets are invested in bond funds and are measured at fair value using Level 1 inputs, which are quoted prices in active markets. Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, July 29, August 4, July 29, 2019 2018 2019 2018 Net periodic benefit costs Service cost 26 81 52 163 Interest cost 204 206 409 413 Actuarial loss 37 43 74 86 Expected return on pension plan assets (101 ) (144 ) (202 ) (288 ) Expected administrative expenses 98 70 195 140 Consolidated net periodic benefit costs $ 264 $ 256 $ 528 $ 514 The expected long-term rate of return on Pension Plan assets is 3.8% as of The SRIP and SERP plans are unfunded plans. We paid $171,000 in the second quarter and $349,000 in the first half. We expect to pay a total of approximately $335,000 in benefit payments from our general assets during the remainder of fiscal 2020 to fund SRIP and SERP payments. |
NOTE 11 - Earnings Per Share
NOTE 11 - Earnings Per Share | 6 Months Ended |
Aug. 04, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 11. Earnings Per Share We refer you to the discussion of Earnings Per Share in Note 2. Summary of Significant Accounting Policies, in the financial statements included in our 2019 Annual Report, for additional information concerning the calculation of earnings per share. All stock awards are designed to encourage retention and to provide an incentive for increasing shareholder value. We have issued restricted stock awards to non-employee members of the board of directors since 2006 and to certain non-executive employees since 2014. We have issued 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 have issued Performance-based Restricted Stock Units (“PSUs”) to certain senior executives since fiscal 2019 under the Company’s Stock Incentive Plan. Each PSU entitles the executive officer to receive one share of our common stock based on the achievement of two specified performance conditions if the executive officer remains continuously employed through the end of the three-year performance period. One target is based on our annual average growth in our EPS over the performance period and the other target is based on EPS growth over the performance period compared to our peers. The payout or settlement of the PSUs will be made in shares of our common stock. 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 and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated: August 4, February 3, 2019 2019 Restricted shares 49 22 RSUs and PSUs 78 36 127 58 The number of outstanding restricted shares increased due primarily to grants of restricted shares to a larger population of our non-executive employees as an incentive for retention and alignment of individual performance to our values. The number of RSUs and PSUs increased primarily due to the addition of three additional executive officers in the second quarter of fiscal 2019. All restricted shares, RSUs and PSUs 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 Twenty-Six Weeks Ended August 4, July 29, August 4, July 29, 2019 2018 2019 2018 Net income $ 4,160 $ 8,693 $ 6,147 $ 15,850 Less: Unvested participating restricted stock dividends 7 3 10 5 Net earnings allocated to unvested participating restricted stock 15 16 18 24 Earnings available for common shareholders 4,138 8,674 6,119 15,821 Weighted average shares outstanding for basic earnings per share 11,787 11,760 11,778 11,755 Dilutive effect of unvested restricted stock, RSU and PSU awards 23 24 33 20 Weighted average shares outstanding for diluted earnings per share 11,810 11,784 11,811 11,775 Basic earnings per share $ 0.35 $ 0.74 $ 0.52 $ 1.35 Diluted earnings per share $ 0.35 $ 0.74 $ 0.52 $ 1.34 |
NOTE 12 - Income Taxes
NOTE 12 - Income Taxes | 6 Months Ended |
Aug. 04, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 12. Income Taxes We recorded income tax expense of $1.2 million for the fiscal 2020 second quarter compared to $2.9 million for the comparable prior year period. The effective tax rates for the fiscal 2020 and 2019 second quarters were 23.1% and 24.9%, respectively. The effective tax rates for the first half of fiscal 2020 and 2019 were 22.3% and 23.0%. The net unrecognized tax benefits as of August 4, 2019 and February 3, 2019, which, if recognized, would affect our effective tax rate are $39,000 and $38,000, respectively. Tax years ending January 31, 2016 through February 3, 2019 remain subject to examination by federal and state taxing authorities. |
NOTE 13 - Segment Information
NOTE 13 - Segment Information | 6 Months Ended |
Aug. 04, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 13. Segment Information For financial reporting purposes, we are organized into two reportable segments and “All Other”, which includes the remainder of our businesses: ■ Hooker Branded ■ Home Meridian ■ All Other The following table presents segment information for the periods, and as of the dates, indicated: Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2019 July 29, 2018 August 4, 2019 July 29, 2018 % Net % Net % Net % Net Net Sales Sales Sales Sales Sales Hooker Branded $ 39,405 25.9 % $ 40,551 24.0 % $ 79,004 27.5 % $ 83,322 26.7 % Home Meridian 87,188 57.3 % 101,022 59.9 % 154,818 53.8 % 171,618 55.1 % All Other 25,655 16.8 % 27,088 16.1 % 53,944 18.7 % 56,613 18.2 % Consolidated $ 152,248 100.0 % $ 168,661 100.0 % $ 287,766 100.0 % $ 311,553 100.0 % Gross Profit Hooker Branded $ 11,820 30.0 % $ 12,616 31.1 % $ 24,376 30.9 % $ 27,038 32.5 % Home Meridian 10,951 12.6 % 17,398 17.2 % 16,854 10.9 % 27,814 16.2 % All Other 6,055 23.6 % 5,631 20.8 % 13,113 24.3 % 12,759 22.5 % Consolidated $ 28,826 18.9 % $ 35,645 21.1 % $ 54,343 18.9 % $ 67,611 21.7 % Operating Income Hooker Branded $ 4,088 10.4 % $ 4,943 12.2 % $ 9,265 11.7 % $ 11,669 14.0 % Home Meridian (66 ) -0.1 % 5,628 5.6 % (5,059 ) -3.3 % 5,339 3.1 % All Other 1,746 6.8 % 1,294 4.8 % 4,467 8.3 % 4,240 7.5 % Consolidated $ 5,768 3.8 % $ 11,865 7.0 % $ 8,673 3.0 % $ 21,248 6.8 % Capital Expenditures Hooker Branded $ 386 $ 168 $ 511 $ 378 Home Meridian 57 122 173 158 All Other 1,690 173 2,975 297 Consolidated $ 2,133 $ 463 $ 3,659 $ 833 Depreciation & Amortization Hooker Branded $ 490 $ 496 $ 982 $ 980 Home Meridian 547 601 1,078 1,192 All Other 718 764 1,411 1,517 Consolidated $ 1,755 $ 1,861 $ 3,471 $ 3,689 As of August 4, As of February 3, 2019 %Total 2019 %Total Identifiable Assets Assets Assets Hooker Branded $ 137,566 42.2 % $ 108,445 36.9 % Home Meridian 148,692 45.6 % 144,277 49.1 % All Other 39,731 12.2 % 41,181 14.0 % Consolidated $ 325,989 100.0 % $ 293,903 100.0 % Consolidated Goodwill and Intangibles 74,621 75,813 Total Consolidated Assets $ 400,610 $ 369,716 Sales by product type are as follows: Net Sales (in thousands) Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2019 %Total July 29, 2018 %Total August 4, 2019 %Total July 29, 2018 %Total Casegoods $ 98,488 65 % $ 105,703 63 % $ 182,954 64 % $ 195,759 63 % Upholstery 53,760 35 % 62,958 37 % 104,812 36 % 115,794 37 % $ 152,248 100 % $ 168,661 100 % $ 287,766 100 % $ 311,553 100 % |
NOTE 14 - Subsequent Events
NOTE 14 - Subsequent Events | 6 Months Ended |
Aug. 04, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 14. Subsequent E vents Dividends On September 4, 2019, our board of directors declared a quarterly cash dividend of $0.15 per share, payable on September 30, 2019 to shareholders of record at September 16, 2019. |
NOTE 3 - Accounts Receivable (T
NOTE 3 - Accounts Receivable (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | August 4, February 3, 2019 2019 Trade accounts receivable $ 90,142 $ 117,732 Other accounts receivable allowances (3,103 ) (4,267 ) Allowance for doubtful accounts (741 ) (908 ) Accounts receivable $ 86,298 $ 112,557 |
NOTE 4 - Inventories (Tables)
NOTE 4 - Inventories (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | August 4, February 3, 2019 2019 Finished furniture $ 123,724 $ 112,847 Furniture in process 1,361 1,825 Materials and supplies 9,867 10,896 Inventories at FIFO 134,952 125,568 Reduction to LIFO basis (21,359 ) (20,364 ) Inventories $ 113,593 $ 105,204 |
NOTE 5 - Property, Plant and _2
NOTE 5 - Property, Plant and Equipment (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Depreciable Lives August 4, February 3, (In years) 2019 2019 Buildings and land improvements 15 - 30 $ 25,058 $ 24,588 Computer software and hardware 3 - 10 18,981 18,719 Machinery and equipment 10 9,320 8,934 Leasehold improvements Term of lease 9,443 9,376 Furniture and fixtures 3 - 10 2,433 2,318 Other 5 665 665 Total depreciable property at cost 65,900 64,600 Less accumulated depreciation 41,942 39,925 Total depreciable property, net 23,958 24,675 Land 1,067 1,067 Construction-in-progress 5,900 3,740 Property, plant and equipment, net $ 30,925 $ 29,482 |
NOTE 6 - Fair Value Measureme_2
NOTE 6 - Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
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 August 4, 2019 and February 3, 2019, were as follows: Fair value at August 4, 2019 Fair value at February 3, 2019 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 $ - $ 24,763 $ - $ 24,763 $ - $ 23,816 $ - $ 23,816 Pension Plan assets* 10,992 - - 10,992 10,992 - - 10,992 |
NOTE 7 - Intangible Assets (Tab
NOTE 7 - Intangible Assets (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Disclosure Text Block [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | August 4, February 3, Non-amortizable Intangible Assets Segment 2019 2019 Goodwill Home Meridian $ 23,187 $ 23,187 Goodwill All Other 16,871 16,871 Total Goodwill 40,058 40,058 Trademarks and trade names - Home Meridian Home Meridian 11,400 11,400 Trademarks and trade names - Bradington-Young All Other 861 861 Trademarks and trade names - Sam Moore All Other 396 396 Total Trademarks and trade names $ 12,657 $ 12,657 Total non-amortizable assets $ 52,715 $ 52,715 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Our amortizable intangible assets are recorded in our Home Meridian segment and All Other. The carrying amounts and changes therein of those amortizable intangible assets were as follows: Amortizable Intangible Assets Customer Relationships Trademarks Totals Balance at February 3, 2019 $ 22,320 $ 778 $ 23,098 Amortization (1,162 ) (30 ) (1,192 ) Balance at August 4, 2019 $ 21,158 $ 748 $ 21,906 |
NOTE 8 - Leases (Tables)
NOTE 8 - Leases (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
ASU 2016-02 Transition [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease cost and supplemental cash flow information for leases for the three-month and six-month periods ended August 4, 2019 were: 13 Weeks Ended 26 Weeks Ended August 4, 2019 August 4, 2019 Operating lease cost $ 2,123 $ 4,200 Short-term lease cost 178 291 Total operating lease cost $ 2,301 $ 4,491 Operating cash outflows $ 1,948 $ 4,334 |
Schedule of Right-of-Use Assets and Lease Liabilities [Table Text Block] | The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheets as of August 4, 2019 were: August 4, 2019 Real estate $ 41,308 Property and equipment 1,228 Total operating leases right-of-use assets $ 42,536 Current portion of operating lease liabilities $ 6,447 Long term operating lease liabilities 36,567 Total operating lease liabilities $ 43,014 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheet at August 4, 2019: Undiscounted Future Operating Lease Payments Remainder of 2019 $ 4,069 2020 7,728 2021 7,112 2022 5,518 2023 5,266 2024 and thereafter 20,396 Total lease payments $ 50,089 Less: impact of discounting (7,075 ) Present value of lease payments $ 43,014 |
NOTE 10 - Employee Benefit Pl_2
NOTE 10 - Employee Benefit Plans (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Pension Plan [Member] | |
NOTE 10 - Employee Benefit Plans (Tables) [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | As of August 4, 2019, current Pension Plan assets are invested in bond funds and are measured at fair value using Level 1 inputs, which are quoted prices in active markets. Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, July 29, August 4, July 29, 2019 2018 2019 2018 Net periodic benefit costs Service cost 26 81 52 163 Interest cost 204 206 409 413 Actuarial loss 37 43 74 86 Expected return on pension plan assets (101 ) (144 ) (202 ) (288 ) Expected administrative expenses 98 70 195 140 Consolidated net periodic benefit costs $ 264 $ 256 $ 528 $ 514 |
NOTE 11 - Earnings Per Share (T
NOTE 11 - Earnings Per Share (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Earnings Per Share [Abstract] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | 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 and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated: August 4, February 3, 2019 2019 Restricted shares 49 22 RSUs and PSUs 78 36 127 58 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | All restricted shares, RSUs and PSUs 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 Twenty-Six Weeks Ended August 4, July 29, August 4, July 29, 2019 2018 2019 2018 Net income $ 4,160 $ 8,693 $ 6,147 $ 15,850 Less: Unvested participating restricted stock dividends 7 3 10 5 Net earnings allocated to unvested participating restricted stock 15 16 18 24 Earnings available for common shareholders 4,138 8,674 6,119 15,821 Weighted average shares outstanding for basic earnings per share 11,787 11,760 11,778 11,755 Dilutive effect of unvested restricted stock, RSU and PSU awards 23 24 33 20 Weighted average shares outstanding for diluted earnings per share 11,810 11,784 11,811 11,775 Basic earnings per share $ 0.35 $ 0.74 $ 0.52 $ 1.35 Diluted earnings per share $ 0.35 $ 0.74 $ 0.52 $ 1.34 |
NOTE 13 - Segment Information (
NOTE 13 - Segment Information (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
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 Twenty-Six Weeks Ended August 4, 2019 July 29, 2018 August 4, 2019 July 29, 2018 % Net % Net % Net % Net Net Sales Sales Sales Sales Sales Hooker Branded $ 39,405 25.9 % $ 40,551 24.0 % $ 79,004 27.5 % $ 83,322 26.7 % Home Meridian 87,188 57.3 % 101,022 59.9 % 154,818 53.8 % 171,618 55.1 % All Other 25,655 16.8 % 27,088 16.1 % 53,944 18.7 % 56,613 18.2 % Consolidated $ 152,248 100.0 % $ 168,661 100.0 % $ 287,766 100.0 % $ 311,553 100.0 % Gross Profit Hooker Branded $ 11,820 30.0 % $ 12,616 31.1 % $ 24,376 30.9 % $ 27,038 32.5 % Home Meridian 10,951 12.6 % 17,398 17.2 % 16,854 10.9 % 27,814 16.2 % All Other 6,055 23.6 % 5,631 20.8 % 13,113 24.3 % 12,759 22.5 % Consolidated $ 28,826 18.9 % $ 35,645 21.1 % $ 54,343 18.9 % $ 67,611 21.7 % Operating Income Hooker Branded $ 4,088 10.4 % $ 4,943 12.2 % $ 9,265 11.7 % $ 11,669 14.0 % Home Meridian (66 ) -0.1 % 5,628 5.6 % (5,059 ) -3.3 % 5,339 3.1 % All Other 1,746 6.8 % 1,294 4.8 % 4,467 8.3 % 4,240 7.5 % Consolidated $ 5,768 3.8 % $ 11,865 7.0 % $ 8,673 3.0 % $ 21,248 6.8 % Capital Expenditures Hooker Branded $ 386 $ 168 $ 511 $ 378 Home Meridian 57 122 173 158 All Other 1,690 173 2,975 297 Consolidated $ 2,133 $ 463 $ 3,659 $ 833 Depreciation & Amortization Hooker Branded $ 490 $ 496 $ 982 $ 980 Home Meridian 547 601 1,078 1,192 All Other 718 764 1,411 1,517 Consolidated $ 1,755 $ 1,861 $ 3,471 $ 3,689 |
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 August 4, As of February 3, 2019 %Total 2019 %Total Identifiable Assets Assets Assets Hooker Branded $ 137,566 42.2 % $ 108,445 36.9 % Home Meridian 148,692 45.6 % 144,277 49.1 % All Other 39,731 12.2 % 41,181 14.0 % Consolidated $ 325,989 100.0 % $ 293,903 100.0 % Consolidated Goodwill and Intangibles 74,621 75,813 Total Consolidated Assets $ 400,610 $ 369,716 |
Revenue from External Customers by Products and Services [Table Text Block] | Sales by product type are as follows: Net Sales (in thousands) Thirteen Weeks Ended Twenty-Six Weeks Ended August 4, 2019 %Total July 29, 2018 %Total August 4, 2019 %Total July 29, 2018 %Total Casegoods $ 98,488 65 % $ 105,703 63 % $ 182,954 64 % $ 195,759 63 % Upholstery 53,760 35 % 62,958 37 % 104,812 36 % 115,794 37 % $ 152,248 100 % $ 168,661 100 % $ 287,766 100 % $ 311,553 100 % |
NOTE 2 - Recently Adopted Acc_2
NOTE 2 - Recently Adopted Accounting Policies (Details) - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Accounting Changes and Error Corrections [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 42,536 | $ 0 |
Operating Lease, Liability | $ 43,014 |
NOTE 3 - Accounts Receivable (D
NOTE 3 - Accounts Receivable (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract] | ||
Trade accounts receivable | $ 90,142 | $ 117,732 |
Other accounts receivable allowances | (3,103) | (4,267) |
Allowance for doubtful accounts | (741) | (908) |
Accounts receivable | $ 86,298 | $ 112,557 |
NOTE 4 - Inventories (Details)
NOTE 4 - Inventories (Details) - Schedule of Inventory, Current - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Schedule of Inventory, Current [Abstract] | ||
Finished furniture | $ 123,724 | $ 112,847 |
Furniture in process | 1,361 | 1,825 |
Materials and supplies | 9,867 | 10,896 |
Inventories at FIFO | 134,952 | 125,568 |
Reduction to LIFO basis | (21,359) | (20,364) |
Inventories | $ 113,593 | $ 105,204 |
NOTE 5 - Property, Plant and _3
NOTE 5 - Property, Plant and Equipment (Details) - Property, Plant and Equipment - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2019 | Feb. 03, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 65,900 | $ 64,600 |
Less accumulated depreciation | 41,942 | 39,925 |
Total depreciable property, net | 23,958 | 24,675 |
Land | 1,067 | 1,067 |
Construction-in-progress | 5,900 | 3,740 |
Property, plant and equipment, net | 30,925 | 29,482 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 25,058 | 24,588 |
Computer Software and Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 18,981 | 18,719 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,320 | 8,934 |
Property, Plant and Equipment, Depreciable Lives | 10 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,443 | 9,376 |
Property, Plant and Equipment, Depreciable Lives | Term of lease | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,433 | 2,318 |
Property, Plant and Equipment, Other Types [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 665 | $ 665 |
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 | 10 |
NOTE 6 - Fair Value Measureme_3
NOTE 6 - Fair Value Measurements (Details) | Feb. 03, 2019USD ($) |
Pension Plan [Member] | |
NOTE 6 - Fair Value Measurements (Details) [Line Items] | |
Assets for Plan Benefits, Defined Benefit Plan | $ 86,000 |
NOTE 6 - Fair Value Measureme_4
NOTE 6 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 | |
Assets measured at fair value | |||
Company-owned life insurance | $ 24,763 | $ 23,816 | |
Pension Plan assets | [1] | 10,992 | 10,992 |
Fair Value, Inputs, Level 1 [Member] | |||
Assets measured at fair value | |||
Company-owned life insurance | 0 | 0 | |
Pension Plan assets | [1] | 10,992 | 10,992 |
Fair Value, Inputs, Level 2 [Member] | |||
Assets measured at fair value | |||
Company-owned life insurance | 24,763 | 23,816 | |
Pension Plan assets | [1] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | |||
Assets measured at fair value | |||
Company-owned life insurance | 0 | 0 | |
Pension Plan assets | [1] | $ 0 | $ 0 |
[1] | as of February 3, 2019 for Pension Plan assets. |
NOTE 7 - Intangible Assets (Det
NOTE 7 - Intangible Assets (Details) $ in Millions | Aug. 04, 2019USD ($) |
Disclosure Text Block [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 1.2 |
NOTE 7 - Intangible Assets (De
NOTE 7 - Intangible Assets (Details) - Schedule of Indefinite-Lived Intangible Assets - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 40,058 | $ 40,058 |
Total non-amortizable assets | 52,715 | 52,715 |
Trademarks and Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and trade names | 12,657 | 12,657 |
Home Meridian International [Member] | Trademarks and Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and trade names | 11,400 | 11,400 |
Bradington-Young [Member] | Trademarks and Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and trade names | 861 | 861 |
Sam Moore [Member] | Trademarks and Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and trade names | 396 | 396 |
Goodwill [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | 40,058 | 40,058 |
Goodwill [Member] | Home Meridian International [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | 23,187 | 23,187 |
Goodwill [Member] | Other Segments [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 16,871 | $ 16,871 |
NOTE 7 - Intangible Assets (_2
NOTE 7 - Intangible Assets (Details) - Schedule of Finite-Lived Intangible Assets $ in Thousands | 6 Months Ended |
Aug. 04, 2019USD ($) | |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Balance | $ 22,320 |
Amortization | (1,162) |
Balance | 21,158 |
Order or Production Backlog [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Balance | 778 |
Amortization | (30) |
Balance | 748 |
Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Balance | 23,098 |
Amortization | (1,192) |
Balance | $ 21,906 |
NOTE 8 - Leases (Details)
NOTE 8 - Leases (Details) - USD ($) | Feb. 04, 2019 | Aug. 04, 2019 | Aug. 04, 2019 |
NOTE 8 - Leases (Details) [Line Items] | |||
Operating Leases of Lessee, Contingent Rentals, Description of Variable Rate Basis | one-month LIBOR plus 1.5% | ||
Operating Leases, Income Statement, Sublease Revenue | $ 87,000 | $ 217,000 | |
Description of Lessee Leasing Arrangements, Operating Leases | Our leases have remaining lease terms of less than one year to seven years, some of which include options to extend the leases for up to seven years. We have elected not to recognize ROU assets and lease liabilities that arise from short term leases for any class of underlying asset. Short term leases are leases with lease terms of 12 months or less with either (a) no renewal option or (b) a renewal option which we are not reasonably certain to exercise. | ||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 255 days | 7 years 255 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.00% | 4.00% | |
London Interbank Offered Rate (LIBOR) [Member] | |||
NOTE 8 - Leases (Details) [Line Items] | |||
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 1.50% | 1.50% |
NOTE 8 - Leases (Details) - Sch
NOTE 8 - Leases (Details) - Schedule of Lease Cost - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Aug. 04, 2019 | Feb. 03, 2019 | |
NOTE 8 - Leases (Details) - Schedule of Lease Cost [Line Items] | ||
Operating lease cost | $ 2,301 | $ 4,491 |
Operating cash outflows | 1,948 | 4,334 |
Leases Greater Than 12 Months [Member] | ||
NOTE 8 - Leases (Details) - Schedule of Lease Cost [Line Items] | ||
Operating lease cost | 2,123 | 4,200 |
Leases Less Than 12 Months [Member] | ||
NOTE 8 - Leases (Details) - Schedule of Lease Cost [Line Items] | ||
Operating lease cost | $ 178 | $ 291 |
NOTE 8 - Leases (Details) - S_2
NOTE 8 - Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
NOTE 8 - Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items] | ||
Operating leases right-of-use assets | $ 42,536 | $ 0 |
Current portion of operating lease liabilities | 6,447 | 0 |
Long term operating lease liabilities | 36,567 | $ 0 |
Total operating lease liabilities | 43,014 | |
Real Estate [Member] | ||
NOTE 8 - Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items] | ||
Operating leases right-of-use assets | 41,308 | |
Property, Plant and Equipment [Member] | ||
NOTE 8 - Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items] | ||
Operating leases right-of-use assets | $ 1,228 |
NOTE 8 - Leases (Details) - S_3
NOTE 8 - Leases (Details) - Schedule of Future Minimum Rental Payments for Operating Leases $ in Thousands | Aug. 04, 2019USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
Remainder of 2019 | $ 4,069 |
2020 | 7,728 |
2021 | 7,112 |
2022 | 5,518 |
2023 | 5,266 |
2024 and therafter | 20,396 |
Total lease payments | 50,089 |
Less: impact of discounting | (7,075) |
Present value of lease payments | $ 43,014 |
NOTE 9 - Long-Term Debt (Detail
NOTE 9 - Long-Term Debt (Details) $ in Millions | Aug. 04, 2019USD ($) |
Disclosure Text Block [Abstract] | |
Line of Credit Facility, Current Borrowing Capacity | $ 27.8 |
Letters of Credit Outstanding, Amount | $ 2.2 |
NOTE 10 - Employee Benefit Pl_3
NOTE 10 - Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Aug. 04, 2019 | Aug. 04, 2019 | Feb. 03, 2019 | |
NOTE 10 - Employee Benefit Plans (Details) [Line Items] | |||
Defined Benefit Plan, Description | We maintain three retirement plans for the benefit of certain former and current employees, including a supplemental retirement income plan (“SRIP”) for certain former and current employees of Hooker Furniture Corporation, as well as two plans for the benefit of certain and former employees of Pulaski Furniture Corporation, which we assumed when we acquired the business of Home Meridian International. 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 Pension Plan for former Pulaski Furniture Corporation employees.The SRIP, SERP and Pension Plan are all “frozen” and we do not expect to add additional participants to any of these plans in the future. On January 30, 2019, our Board of Directors voted to terminate the Pension Plan. Pension Plan termination is an eighteen to twenty-four-month process, that involves seeking certain approvals from both the IRS and PBGC. Once we receive the appropriate approvals, an insurance company will be selected to provide annuities for participants at an amount equal to their current monthly pension benefit. Upon settlement of the pension liability, we will reclassify the related pension losses currently recorded in accumulated other comprehensive loss, to the consolidated statements of operations. We expect to record pension settlement expenses and excess costs, if any, to terminate the plan. We do not expect these expenses and costs to be material. | ||
Supplemental Retirement Income Plan ("SRIP") and Supplemental Executive Retirement Plan ("SERP") [Member] | |||
NOTE 10 - Employee Benefit Plans (Details) [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | $ 171 | $ 349 | |
Defined Benefit Plan, Expected Future Benefit Payment, Remainder of Fiscal Year | $ 335 | $ 335 | |
Pension Plan [Member] | |||
NOTE 10 - Employee Benefit Plans (Details) [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.80% |
NOTE 10 - Employee Benefit Pl_4
NOTE 10 - Employee Benefit Plans (Details) - Schedule of Net Benefit Costs - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Net periodic benefit costs | ||||
Service cost | $ 52 | $ 163 | ||
Interest cost | 409 | 413 | ||
Actuarial loss | 74 | 86 | ||
Expected return on pension plan assets | (202) | (288) | ||
Expected administrative expenses | 195 | 140 | ||
Consolidated net periodic benefit costs | $ 528 | $ 514 | ||
Pension Plan [Member] | ||||
Net periodic benefit costs | ||||
Service cost | $ 26 | $ 81 | ||
Interest cost | 204 | 206 | ||
Actuarial loss | 37 | 43 | ||
Expected return on pension plan assets | (101) | (144) | ||
Expected administrative expenses | 98 | 70 | ||
Consolidated net periodic benefit costs | $ 264 | $ 256 |
NOTE 11 - Earnings Per Share (D
NOTE 11 - Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units - shares shares in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
NOTE 11 - Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 127 | 58 |
Restricted Stock [Member] | ||
NOTE 11 - Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 49 | 22 |
Restricted Stock Units (RSUs) [Member] | ||
NOTE 11 - Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 78 | 36 |
NOTE 11 - Earnings Per Share _2
NOTE 11 - Earnings Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income | $ 4,160 | $ 8,693 | $ 6,147 | $ 15,850 |
Less: Unvested participating restricted stock dividends | 7 | 3 | 10 | 5 |
Net earnings allocated to unvested participating restricted stock | 15 | 16 | 18 | 24 |
Earnings available for common shareholders | $ 4,138 | $ 8,674 | $ 6,119 | $ 15,821 |
Weighted average shares outstanding for basic earnings per share (in Shares) | 11,787 | 11,760 | 11,778 | 11,755 |
Dilutive effect of unvested restricted stock, RSU and PSU awards (in Shares) | 23 | 24 | 33 | 20 |
Weighted average shares outstanding for diluted earnings per share (in Shares) | 11,810 | 11,784 | 11,811 | 11,775 |
Basic earnings per share (in Dollars per share) | $ 0.35 | $ 0.74 | $ 0.52 | $ 1.35 |
Diluted earnings per share (in Dollars per share) | $ 0.35 | $ 0.74 | $ 0.52 | $ 1.34 |
NOTE 12 - Income Taxes (Details
NOTE 12 - Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | Feb. 03, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Income Tax Expense (Benefit) | $ 1,248 | $ 2,881 | $ 1,763 | $ 4,730 | |
Effective Income Tax Rate Reconciliation, Percent | 23.10% | 24.90% | 22.30% | 23.00% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 39 | $ 39 | $ 38 |
NOTE 13 - Segment Information_2
NOTE 13 - Segment Information (Details) | 6 Months Ended |
Aug. 04, 2019 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
NOTE 13 - Segment Information_3
NOTE 13 - Segment Information (Details) - Segment Reporting Information - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 152,248 | $ 168,661 | $ 287,766 | $ 311,553 |
% of Net Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Profit | $ 28,826 | $ 35,645 | $ 54,343 | $ 67,611 |
% of Net Sales, Gross Profit | 18.90% | 21.10% | 18.90% | 21.70% |
Operating Income | $ 5,768 | $ 11,865 | $ 8,673 | $ 21,248 |
% of Net Sales, Operating Income | 3.80% | 7.00% | 3.00% | 6.80% |
Capital Expenditures | $ 2,133 | $ 463 | $ 3,659 | $ 833 |
Depreciation & Amortization | 1,755 | 1,861 | 3,471 | 3,689 |
Hooker Branded [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 39,405 | $ 40,551 | $ 79,004 | $ 83,322 |
% of Net Sales | 25.90% | 24.00% | 27.50% | 26.70% |
Gross Profit | $ 11,820 | $ 12,616 | $ 24,376 | $ 27,038 |
% of Net Sales, Gross Profit | 30.00% | 31.10% | 30.90% | 32.50% |
Operating Income | $ 4,088 | $ 4,943 | $ 9,265 | $ 11,669 |
% of Net Sales, Operating Income | 10.40% | 12.20% | 11.70% | 14.00% |
Capital Expenditures | $ 386 | $ 168 | $ 511 | $ 378 |
Depreciation & Amortization | 490 | 496 | 982 | 980 |
Home Meridian International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 87,188 | $ 101,022 | $ 154,818 | $ 171,618 |
% of Net Sales | 57.30% | 59.90% | 53.80% | 55.10% |
Gross Profit | $ 10,951 | $ 17,398 | $ 16,854 | $ 27,814 |
% of Net Sales, Gross Profit | 12.60% | 17.20% | 10.90% | 16.20% |
Operating Income | $ (66) | $ 5,628 | $ (5,059) | $ 5,339 |
% of Net Sales, Operating Income | (0.10%) | 5.60% | (3.30%) | 3.10% |
Capital Expenditures | $ 57 | $ 122 | $ 173 | $ 158 |
Depreciation & Amortization | 547 | 601 | 1,078 | 1,192 |
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 25,655 | $ 27,088 | $ 53,944 | $ 56,613 |
% of Net Sales | 16.80% | 16.10% | 18.70% | 18.20% |
Gross Profit | $ 6,055 | $ 5,631 | $ 13,113 | $ 12,759 |
% of Net Sales, Gross Profit | 23.60% | 20.80% | 24.30% | 22.50% |
Operating Income | $ 1,746 | $ 1,294 | $ 4,467 | $ 4,240 |
% of Net Sales, Operating Income | 6.80% | 4.80% | 8.30% | 7.50% |
Capital Expenditures | $ 1,690 | $ 173 | $ 2,975 | $ 297 |
Depreciation & Amortization | $ 718 | $ 764 | $ 1,411 | $ 1,517 |
NOTE 13 - Segment Information_4
NOTE 13 - Segment Information (Details) - Assets from Segments to Consolidated - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 325,989 | $ 293,903 |
% Total Assets | 100.00% | 100.00% |
Consolidated Goodwill and Intangibles | $ 74,621 | $ 75,813 |
Total Consolidated Assets | 400,610 | 369,716 |
Hooker Branded [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 137,566 | $ 108,445 |
% Total Assets | 42.20% | 36.90% |
Home Meridian International [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 148,692 | $ 144,277 |
% Total Assets | 45.60% | 49.10% |
Other Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 39,731 | $ 41,181 |
% Total Assets | 12.20% | 14.00% |
NOTE 13 - Segment Information_5
NOTE 13 - Segment Information (Details) - Revenue from External Customers by Products and Services - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Jul. 29, 2018 | Aug. 04, 2019 | Jul. 29, 2018 | |
Revenue from External Customer [Line Items] | ||||
Sales | $ 152,248 | $ 168,661 | $ 287,766 | $ 311,553 |
% of Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Casegoods [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales | $ 98,488 | $ 105,703 | $ 182,954 | $ 195,759 |
% of Sales | 65.00% | 63.00% | 64.00% | 63.00% |
Upholstery [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales | $ 53,760 | $ 62,958 | $ 104,812 | $ 115,794 |
% of Sales | 35.00% | 37.00% | 36.00% | 37.00% |
NOTE 14 - Subsequent Events (De
NOTE 14 - Subsequent Events (Details) - Subsequent Event [Member] | Sep. 04, 2019$ / shares |
NOTE 14 - Subsequent Events (Details) [Line Items] | |
Dividends Payable, Date Declared | Sep. 4, 2019 |
Common Stock, Dividends, Per Share, Declared | $ 0.15 |
Dividends Payable, Date to be Paid | Sep. 30, 2019 |
Dividends Payable, Date of Record | Sep. 16, 2019 |