Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Nov. 03, 2019 | Dec. 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 | Nov. 3, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
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 | Nov. 03, 2019 | Feb. 03, 2019 |
Current assets | ||
Cash and cash equivalents | $ 24,498 | $ 11,435 |
Trade accounts receivable, net | 92,603 | 112,557 |
Inventories | 103,615 | 105,204 |
Income tax recoverable | 2,348 | 0 |
Prepaid expenses and other current assets | 4,119 | 5,735 |
Total current assets | 227,183 | 234,931 |
Property, plant and equipment, net | 30,782 | 29,482 |
Cash surrender value of life insurance policies | 25,016 | 23,816 |
Deferred taxes | 3,035 | 4,522 |
Operating leases right-of-use assets | 40,872 | 0 |
Intangible assets, net | 33,967 | 35,755 |
Goodwill | 40,058 | 40,058 |
Other assets | 1,528 | 1,152 |
Total non-current assets | 175,258 | 134,785 |
Total assets | 402,441 | 369,716 |
Current liabilities | ||
Current portion of term loans | 5,833 | 5,829 |
Trade accounts payable | 27,407 | 40,838 |
Accrued salaries, wages and benefits | 5,449 | 8,002 |
Income tax accrual | 0 | 3,159 |
Customer deposits | 13,030 | 3,023 |
Current portion of lease liabilities | 6,395 | 0 |
Other accrued expenses | 3,913 | 3,564 |
Total current liabilities | 62,027 | 64,415 |
Long term debt | 25,253 | 29,628 |
Deferred compensation | 10,611 | 11,513 |
Lease liabilities | 35,304 | 0 |
Other long-term liabilities | 3 | 984 |
Total long-term liabilities | 71,171 | 42,125 |
Total liabilities | 133,198 | 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 | 51,177 | 49,549 |
Retained earnings | 218,131 | 213,380 |
Accumulated other comprehensive (loss) income | (65) | 247 |
Total shareholders’ equity | 269,243 | 263,176 |
Total liabilities and shareholders’ equity | $ 402,441 | $ 369,716 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - shares shares in Thousands | Nov. 03, 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 | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Net sales | $ 158,176 | $ 171,474 | $ 445,942 | $ 483,026 |
Cost of sales | 129,777 | 135,638 | 363,201 | 379,579 |
Gross profit | 28,399 | 35,836 | 82,741 | 103,447 |
Selling and administrative expenses | 22,810 | 22,979 | 67,286 | 68,150 |
Intangible asset amortization | 596 | 596 | 1,788 | 1,788 |
Operating income | 4,993 | 12,261 | 13,667 | 33,509 |
Other income, net | 309 | 200 | 215 | 275 |
Interest expense, net | 316 | 354 | 986 | 1,099 |
Income before income taxes | 4,986 | 12,107 | 12,896 | 32,685 |
Income tax expense | 1,066 | 2,775 | 2,829 | 7,504 |
Net income | $ 3,920 | $ 9,332 | $ 10,067 | $ 25,181 |
Earnings per share | ||||
Basic (in Dollars per share) | $ 0.33 | $ 0.79 | $ 0.85 | $ 2.14 |
Diluted (in Dollars per share) | $ 0.33 | $ 0.79 | $ 0.85 | $ 2.13 |
Weighted average shares outstanding: | ||||
Basic (in Shares) | 11,789 | 11,763 | 11,782 | 11,758 |
Diluted (in Shares) | 11,816 | 11,778 | 11,821 | 11,778 |
Cash dividends declared per share (in Dollars per share) | $ 0.15 | $ 0.14 | $ 0.45 | $ 0.42 |
Cost of Sales [Member] | ||||
Cost of sales | $ 129,777 | $ 135,638 | $ 363,201 | $ 379,079 |
Casualty Loss [Member] | ||||
Cost of sales | $ 0 | $ 0 | $ 0 | $ 500 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Net Income | $ 3,920 | $ 9,332 | $ 10,067 | $ 25,181 |
Other comprehensive income (loss): | ||||
Gain on pension plan settlement | (520) | 0 | (520) | 0 |
Income tax effect on settlement | 124 | 0 | 124 | 0 |
Amortization of actuarial loss | 37 | 43 | 111 | 129 |
Income tax effect on amortization | (9) | (10) | (27) | (31) |
Adjustments to net periodic benefit cost | (368) | 33 | (312) | 98 |
Reclassification of tax effects due to the adoption of ASU 2018-02 | 0 | 0 | 0 | 111 |
Total Comprehensive Income | $ 3,552 | $ 9,365 | $ 9,755 | $ 25,390 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 03, 2019 | Oct. 28, 2018 | |
Operating Activities: | ||
Net income | $ 10,067 | $ 25,181 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,260 | 5,558 |
Gain on pension settlement | 520 | 0 |
Gain on disposal of assets | (271) | (66) |
Deferred income tax expense | 1,461 | 254 |
Noncash restricted stock and performance awards | 891 | 919 |
Provision/(benefit from) for doubtful accounts and sales allowances | 1,365 | (1,692) |
Gain on life insurance policies | (715) | (608) |
Changes in assets and liabilities: | ||
Trade accounts receivable | 18,589 | 9,036 |
Inventories | 1,589 | (16,862) |
Income tax recoverable | (2,348) | 0 |
Prepaid expenses and other current assets | (638) | (484) |
Trade accounts payable | (13,456) | 5,566 |
Accrued salaries, wages, and benefits | (2,553) | (484) |
Accrued income taxes | (3,159) | (2,412) |
Customer deposits | 10,006 | (1,359) |
Operating lease liabilities | 536 | 0 |
Other accrued expenses | 350 | 503 |
Deferred compensation | 156 | (2,253) |
Other long-term liabilities | 0 | 122 |
Net cash provided by operating activities | 26,610 | 20,919 |
Investing Activities: | ||
Purchases of property and equipment | (4,745) | (2,464) |
Proceeds received from sale of assets | 1,465 | 99 |
Proceeds received on life insurance policies | 0 | 1,225 |
Premiums paid on life insurance policies | (558) | (620) |
Net cash used in investing activities | (3,838) | (1,760) |
Financing Activities: | ||
Payments for long-term debt | (4,393) | (15,679) |
Cash dividends paid | (5,316) | (4,946) |
Net cash used in financing activities | (9,709) | (20,625) |
Net increase/(decrease) in cash and cash equivalents | 13,063 | (1,466) |
Cash and cash equivalents - beginning of year | 11,435 | 30,915 |
Cash and cash equivalents - end of quarter | 24,498 | 29,449 |
Cash paid for income taxes | 6,754 | 9,661 |
Cash paid for interest, net | 852 | 973 |
Non-cash transactions: | ||
Increase in lease liabilities arising from obtaining right-of-use assets | 272 | 0 |
Increase in property and equipment through accrued purchases | $ 25 | $ 104 |
CONDENSED CONSOLIDATED STATEM_4
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 | 25,181 | 25,181 | ||
Prior year adjustment for ASU 2014-09 and 2018-02 | 99 | 111 | 210 | |
Unrealized loss on defined benefit plan, net of tax | 98 | 98 | ||
Cash dividends paid and accrued | (4,945) | (4,945) | ||
Restricted stock grants, net of forfeitures | $ (30) | (30) | ||
Restricted stock grants, net of forfeitures (in Shares) | 23 | |||
Restricted stock compensation cost | $ 450 | 450 | ||
Balance at Oct. 28, 2018 | $ 49,390 | 200,457 | 577 | 250,424 |
Balance (in Shares) at Oct. 28, 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 | 10,067 | $ 10,067 | ||
Gain on pension settlement, net of tax | (396) | (396) | ||
Unrealized loss on defined benefit plan, net of tax | 84 | 84 | ||
Cash dividends paid and accrued | (5,316) | (5,316) | ||
Restricted stock grants, net of forfeitures | $ 344 | 344 | ||
Restricted stock grants, net of forfeitures (in Shares) | 53 | |||
Restricted stock compensation cost | $ 600 | 600 | ||
Recognition of PSUs as equity-based awards | 684 | 684 | ||
Balance at Nov. 03, 2019 | $ 51,177 | $ 218,131 | $ (65) | $ 269,243 |
Balance (in Shares) at Nov. 03, 2019 | 11,838 | 11,838 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 03, 2019 | Oct. 28, 2018 | |
Unrealized gain loss on defined benefit plan, tax | $ (27) | $ (31) |
Cash dividends paid and accrued, per share (in Dollars per share) | $ 0.15 | $ 0.14 |
Gain on pension settlement, tax | $ 124 | $ 0 |
1 - Preparation of Interim Fina
1 - Preparation of Interim Financial Statements | 9 Months Ended |
Nov. 03, 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,” “third quarter” or “quarterly period”) that began August 5, 2019, and the thirty-nine week period (also referred to as “nine months”, “nine-month period” or “year-to-date period”) that began February 4, 2019, which both ended November 3, 2019. This report discusses our results of operations for this period compared to the 2019 fiscal year thirteen-week period that began July 30, 2018 and the thirty-nine-week period that began January 29, 2018, which both ended October 28, 2018; and our financial condition as of November 3, 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. |
2 - Recently Adopted Accounting
2 - Recently Adopted Accounting Policies | 9 Months Ended |
Nov. 03, 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 |
3 - Accounts Receivable
3 - Accounts Receivable | 9 Months Ended |
Nov. 03, 2019 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Accounts Receivable November 3, February 3, 2019 2019 Trade accounts receivable $ 98,818 $ 117,732 Other accounts receivable allowances (5,452 ) (4,267 ) Allowance for doubtful accounts (763 ) (908 ) Accounts receivable $ 92,603 $ 112,557 |
4 - Inventories
4 - Inventories | 9 Months Ended |
Nov. 03, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 4. Inventories November 3, February 3, 2019 2019 Finished furniture $ 116,501 $ 112,847 Furniture in process 1,092 1,825 Materials and supplies 8,965 10,896 Inventories at FIFO 126,558 125,568 Reduction to LIFO basis (22,943 ) (20,364 ) Inventories $ 103,615 $ 105,204 |
5 - Property, Plant and Equipme
5 - Property, Plant and Equipment | 9 Months Ended |
Nov. 03, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property, Plant and Equipment Depreciable Lives November 3, February 3, (In years) 2019 2019 Buildings and land improvements 15 - 30 $ 31,295 $ 24,588 Computer software and hardware 3 - 10 19,100 18,719 Machinery and equipment 10 9,116 8,934 Leasehold improvements Term of lease 9,443 9,376 Furniture and fixtures 3 - 10 2,454 2,318 Other 5 650 665 Total depreciable property at cost 72,058 64,600 Less accumulated depreciation 42,853 39,925 Total depreciable property, net 29,205 24,675 Land 1,077 1,067 Construction-in-progress 500 3,740 Property, plant and equipment, net $ 30,782 $ 29,482 |
6 - Fair Value Measurements
6 - Fair Value Measurements | 9 Months Ended |
Nov. 03, 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 November 3, 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. We settled all Pension Plan obligations during the quarter with the purchase of annuities for plan participants. See Note 11. Employee Benefit Plans for additional information about the Plan. Our assets measured at fair value on a recurring basis at November 3, 2019 and February 3, 2019, were as follows: Fair value at November 3, 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 $ - $ 25,016 $ - $ 25,016 $ - $ 23,816 $ - $ 23,816 Pension Plan assets $ - - - - 10,992 - - 10,992 |
7 - Intangible Assets
7 - Intangible Assets | 9 Months Ended |
Nov. 03, 2019 | |
Disclosure Text Block [Abstract] | |
Intangible Assets Disclosure [Text Block] | 7. Intangible Assets November 3, 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 (1,743 ) (45 ) (1,788 ) Balance at November 3, 2019 $ 20,577 $ 733 $ 21,310 For the remainder of fiscal 2020, amortization expense is expected to be approximately $596,000. |
8. Customer Deposits
8. Customer Deposits | 9 Months Ended |
Nov. 03, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 8. Customer Deposits Due to the highly customized nature of our hospitality products, we typically require a 50% deposit with order, a 40% deposit before goods reach a U.S. port and the remaining 10% balance due within 30 days of the receipt of goods by the customer. These deposits have increased $10.0 million since our fiscal 2019 year-end principally due to increased order activity in our Home Meridian segment’s hospitality division. |
9 - Leases
9 - Leases | 9 Months Ended |
Nov. 03, 2019 | |
ASU 2016-02 Transition [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | 9. Leases 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 $130,000 and $347,000 sub-lease income for the three-month and nine-month period ended November 3, 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 nine-month periods ended November 3, 2019 were: Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, 2019 November 3, 2019 Operating lease cost $ 2,090 $ 6,289 Short-term lease cost 173 467 Total operating lease cost $ 2,263 $ 6,756 Operating cash outflows $ 1,918 $ 6,255 The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheets as of November 3, 2019 were: November 3, 2019 Real estate $ 39,750 Property and equipment 1,122 Total operating leases right-of-use assets $ 40,872 Current portion of operating lease liabilities $ 6,395 Long term operating lease liabilities 35,304 Total operating lease liabilities $ 41,699 Weighted-average remaining lease term is 7.5 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 November 3, 2019: Undiscounted Future Operating Lease Payments Remainder of 2019 $ 2,327 2020 7,732 2021 7,114 2022 5,520 2023 5,267 2024 and thereafter 20,394 Total lease payments $ 48,354 Less: impact of discounting (6,655 ) Present value of lease payments $ 41,699 As of November 3, 2019, we did not have any additional operating or finance leases that had not yet commenced. |
10 - Long-Term Debt
10 - Long-Term Debt | 9 Months Ended |
Nov. 03, 2019 | |
Disclosure Text Block [Abstract] | |
Long-term Debt [Text Block] | 10. Long-Term Debt As of November 3, 2019, we had an aggregate $25.7 million available under our revolving credit facility to fund working capital needs. Standby letters of credit in the aggregate amount of $4.3 million, used to collateralize certain insurance arrangements and for imported product purchases, were outstanding under the revolving credit facility as of November 3, 2019. There were no additional borrowings outstanding under the revolving credit facility as of November 3, 2019. |
11 - Employee Benefit Plans
11 - Employee Benefit Plans | 9 Months Ended |
Nov. 03, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 11. 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. We settled all Pension Plan obligations during the quarter with the purchase of nonparticipating annuity contracts for plan participants. Consequently, we recognized a $520,000 settlement gain during the quarter, which is recorded in the “other income” line of our condensed consolidated statements of income. The $520,000 represented an amount recorded in accumulated other comprehensive income until the pension obligation was settled upon plan termination. Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, October 28, November 3, October 28, 2019 2018 2019 2018 Net periodic benefit costs Service cost 26 81 78 243 Interest cost 204 206 613 618 Actuarial loss 37 43 111 129 Expected return on pension plan assets (101 ) (144 ) (304 ) (431 ) Pension plan administrative expenses 98 70 293 210 Consolidated net periodic benefit costs $ 264 $ 256 $ 791 $ 769 The SRIP and SERP plans are unfunded plans. We paid $171,000 in the third quarter and $520,000 in the first nine months. We expect to pay a total of approximately $164,000 in benefit payments from our general assets during the remainder of fiscal 2020 to fund SRIP and SERP payments. |
12 - Earnings Per Share
12 - Earnings Per Share | 9 Months Ended |
Nov. 03, 2019 | |
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 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: November 3, 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 Thirty-Nine Weeks Ended November 3, October 28, November 3, October 28, 2019 2018 2019 2018 Net income $ 3,920 $ 9,332 $ 10,067 $ 25,181 Less: Unvested participating restricted stock dividends 7 3 18 8 Net earnings allocated to unvested participating restricted stock 16 17 33 41 Earnings available for common shareholders 3,897 9,312 10,016 25,132 Weighted average shares outstanding for basic earnings per share 11,789 11,763 11,782 11,758 Dilutive effect of unvested restricted stock, RSU and PSU awards 27 15 39 20 Weighted average shares outstanding for diluted earnings per share 11,816 11,778 11,821 11,778 Basic earnings per share $ 0.33 $ 0.79 $ 0.85 $ 2.14 Diluted earnings per share $ 0.33 $ 0.79 $ 0.85 $ 2.13 |
13 - Income Taxes
13 - Income Taxes | 9 Months Ended |
Nov. 03, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 13. Income Taxes We recorded income tax expense of $1.1 million for the fiscal 2020 third quarter compared to $2.8 million for the comparable prior year period. The effective tax rates for the fiscal 2020 and 2019 third quarters were 21.4% and 22.9%, respectively. The effective tax rates for the first nine months of fiscal 2020 and 2019 were 21.9% and 23.0%. The net unrecognized tax benefits as of November 3, 2019 and February 3, 2019, which, if recognized, would affect our effective tax rate are $40,000 and $38,000, respectively. Tax years ending January 31, 2016 through February 3, 2019 remain subject to examination by federal and state taxing authorities. |
14 - Segment Information
14 - Segment Information | 9 Months Ended |
Nov. 03, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 14. 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 Thirty-Nine Weeks Ended November 3, 2019 October 28, 2018 November 3, 2019 October 28, 2018 % Net % Net % Net % Net Net Sales Sales Sales Sales Sales Hooker Branded $ 43,703 27.6 % $ 46,479 27.1 % $ 122,707 27.5 % $ 129,801 26.9 % Home Meridian 85,776 54.3 % 95,013 55.4 % 240,594 54.0 % 266,631 55.2 % All Other 28,697 18.1 % 29,982 17.5 % 82,641 18.5 % 86,594 17.9 % Consolidated $ 158,176 100.0 % $ 171,474 100.0 % $ 445,942 100.0 % $ 483,026 100.0 % Gross Profit Hooker Branded $ 13,947 31.9 % $ 14,334 30.8 % $ 38,323 31.2 % $ 41,372 31.9 % Home Meridian 7,286 8.5 % 15,382 16.2 % 24,139 10.0 % 43,196 16.2 % All Other 7,166 25.0 % 6,120 20.4 % 20,279 24.5 % 18,879 21.8 % Consolidated $ 28,399 18.0 % $ 35,836 20.9 % $ 82,741 18.6 % $ 103,447 21.4 % Operating Income (Loss) Hooker Branded $ 6,188 14.2 % $ 5,712 12.3 % $ 15,453 12.6 % $ 17,381 13.4 % Home Meridian (3,955 ) -4.6 % 4,829 5.1 % (9,013 ) -3.7 % 10,168 3.8 % All Other 2,760 9.6 % 1,720 5.7 % 7,227 8.7 % 5,960 6.9 % Consolidated $ 4,993 3.2 % $ 12,261 7.2 % $ 13,667 3.1 % $ 33,509 6.9 % Capital Expenditures Hooker Branded $ 89 $ 350 $ 600 $ 699 Home Meridian 126 143 300 330 All Other 871 1,138 3,845 1,435 Consolidated $ 1,086 $ 1,631 $ 4,745 $ 2,464 Depreciation & Amortization Hooker Branded $ 471 $ 984 $ 1,453 $ 1,479 Home Meridian 549 851 1,627 1,795 All Other 768 1,248 2,180 2,284 Consolidated $ 1,788 $ 3,083 $ 5,260 $ 5,558 As of November 3, As of February 3, 2019 %Total 2019 %Total Identifiable Assets Assets Assets Hooker Branded $ 140,920 42.9 % $ 108,445 36.9 % Home Meridian 146,971 44.8 % 144,277 49.1 % All Other 40,525 12.3 % 41,181 14.0 % Consolidated $ 328,416 100.0 % $ 293,903 100.0 % Consolidated Goodwill and Intangibles 74,025 75,813 Total Consolidated Assets $ 402,441 $ 369,716 Sales by product type are as follows: Net Sales (in thousands) Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, 2019 %Total October 28, 2018 %Total November 3, 2019 %Total October 28, 2018 %Total Casegoods $ 105,018 66 % $ 108,584 63 % $ 288,470 65 % $ 304,370 63 % Upholstery 53,158 34 % 62,890 37 % 157,472 35 % 178,656 37 % $ 158,176 100 % $ 171,474 100 % $ 445,942 100 % $ 483,026 100 % |
15 - Subsequent Events
15 - Subsequent Events | 9 Months Ended |
Nov. 03, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 15. Subsequent Events Dividends On December 5, 2019, our board of directors declared a quarterly cash dividend of $0.16 per share, an increase of 6.7% or $0.01 per share, payable on December 30, 2019 to shareholders of record at December 16, 2019. |
3 - Accounts Receivable (Tables
3 - Accounts Receivable (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | November 3, February 3, 2019 2019 Trade accounts receivable $ 98,818 $ 117,732 Other accounts receivable allowances (5,452 ) (4,267 ) Allowance for doubtful accounts (763 ) (908 ) Accounts receivable $ 92,603 $ 112,557 |
4 - Inventories (Tables)
4 - Inventories (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | November 3, February 3, 2019 2019 Finished furniture $ 116,501 $ 112,847 Furniture in process 1,092 1,825 Materials and supplies 8,965 10,896 Inventories at FIFO 126,558 125,568 Reduction to LIFO basis (22,943 ) (20,364 ) Inventories $ 103,615 $ 105,204 |
5 - Property, Plant and Equip_2
5 - Property, Plant and Equipment (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Depreciable Lives November 3, February 3, (In years) 2019 2019 Buildings and land improvements 15 - 30 $ 31,295 $ 24,588 Computer software and hardware 3 - 10 19,100 18,719 Machinery and equipment 10 9,116 8,934 Leasehold improvements Term of lease 9,443 9,376 Furniture and fixtures 3 - 10 2,454 2,318 Other 5 650 665 Total depreciable property at cost 72,058 64,600 Less accumulated depreciation 42,853 39,925 Total depreciable property, net 29,205 24,675 Land 1,077 1,067 Construction-in-progress 500 3,740 Property, plant and equipment, net $ 30,782 $ 29,482 |
6 - Fair Value Measurements (Ta
6 - Fair Value Measurements (Tables) | 9 Months Ended |
Nov. 03, 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 November 3, 2019 and February 3, 2019, were as follows: Fair value at November 3, 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 $ - $ 25,016 $ - $ 25,016 $ - $ 23,816 $ - $ 23,816 Pension Plan assets $ - - - - 10,992 - - 10,992 |
7 - Intangible Assets (Tables)
7 - Intangible Assets (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Disclosure Text Block [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | November 3, 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 (1,743 ) (45 ) (1,788 ) Balance at November 3, 2019 $ 20,577 $ 733 $ 21,310 |
9 - Leases (Tables)
9 - Leases (Tables) | 9 Months Ended |
Nov. 03, 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 nine-month periods ended November 3, 2019 were: Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, 2019 November 3, 2019 Operating lease cost $ 2,090 $ 6,289 Short-term lease cost 173 467 Total operating lease cost $ 2,263 $ 6,756 Operating cash outflows $ 1,918 $ 6,255 |
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 November 3, 2019 were: November 3, 2019 Real estate $ 39,750 Property and equipment 1,122 Total operating leases right-of-use assets $ 40,872 Current portion of operating lease liabilities $ 6,395 Long term operating lease liabilities 35,304 Total operating lease liabilities $ 41,699 |
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 November 3, 2019: Undiscounted Future Operating Lease Payments Remainder of 2019 $ 2,327 2020 7,732 2021 7,114 2022 5,520 2023 5,267 2024 and thereafter 20,394 Total lease payments $ 48,354 Less: impact of discounting (6,655 ) Present value of lease payments $ 41,699 |
11 - Employee Benefit Plans (Ta
11 - Employee Benefit Plans (Tables) | 9 Months Ended |
Nov. 03, 2019 | |
Pension Plan [Member] | |
11 - Employee Benefit Plans (Tables) [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | On January 30, 2019, our Board of Directors voted to terminate the Pension Plan. We settled all Pension Plan obligations during the quarter with the purchase of nonparticipating annuity contracts for plan participants. Consequently, we recognized a $520,000 settlement gain during the quarter, which is recorded in the “other income” line of our condensed consolidated statements of income. The $520,000 represented an amount recorded in accumulated other comprehensive income until the pension obligation was settled upon plan termination. Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, October 28, November 3, October 28, 2019 2018 2019 2018 Net periodic benefit costs Service cost 26 81 78 243 Interest cost 204 206 613 618 Actuarial loss 37 43 111 129 Expected return on pension plan assets (101 ) (144 ) (304 ) (431 ) Pension plan administrative expenses 98 70 293 210 Consolidated net periodic benefit costs $ 264 $ 256 $ 791 $ 769 |
12 - Earnings Per Share (Tables
12 - Earnings Per Share (Tables) | 9 Months Ended |
Nov. 03, 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: November 3, 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 Thirty-Nine Weeks Ended November 3, October 28, November 3, October 28, 2019 2018 2019 2018 Net income $ 3,920 $ 9,332 $ 10,067 $ 25,181 Less: Unvested participating restricted stock dividends 7 3 18 8 Net earnings allocated to unvested participating restricted stock 16 17 33 41 Earnings available for common shareholders 3,897 9,312 10,016 25,132 Weighted average shares outstanding for basic earnings per share 11,789 11,763 11,782 11,758 Dilutive effect of unvested restricted stock, RSU and PSU awards 27 15 39 20 Weighted average shares outstanding for diluted earnings per share 11,816 11,778 11,821 11,778 Basic earnings per share $ 0.33 $ 0.79 $ 0.85 $ 2.14 Diluted earnings per share $ 0.33 $ 0.79 $ 0.85 $ 2.13 |
14 - Segment Information (Table
14 - Segment Information (Tables) | 9 Months Ended |
Nov. 03, 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 Thirty-Nine Weeks Ended November 3, 2019 October 28, 2018 November 3, 2019 October 28, 2018 % Net % Net % Net % Net Net Sales Sales Sales Sales Sales Hooker Branded $ 43,703 27.6 % $ 46,479 27.1 % $ 122,707 27.5 % $ 129,801 26.9 % Home Meridian 85,776 54.3 % 95,013 55.4 % 240,594 54.0 % 266,631 55.2 % All Other 28,697 18.1 % 29,982 17.5 % 82,641 18.5 % 86,594 17.9 % Consolidated $ 158,176 100.0 % $ 171,474 100.0 % $ 445,942 100.0 % $ 483,026 100.0 % Gross Profit Hooker Branded $ 13,947 31.9 % $ 14,334 30.8 % $ 38,323 31.2 % $ 41,372 31.9 % Home Meridian 7,286 8.5 % 15,382 16.2 % 24,139 10.0 % 43,196 16.2 % All Other 7,166 25.0 % 6,120 20.4 % 20,279 24.5 % 18,879 21.8 % Consolidated $ 28,399 18.0 % $ 35,836 20.9 % $ 82,741 18.6 % $ 103,447 21.4 % Operating Income (Loss) Hooker Branded $ 6,188 14.2 % $ 5,712 12.3 % $ 15,453 12.6 % $ 17,381 13.4 % Home Meridian (3,955 ) -4.6 % 4,829 5.1 % (9,013 ) -3.7 % 10,168 3.8 % All Other 2,760 9.6 % 1,720 5.7 % 7,227 8.7 % 5,960 6.9 % Consolidated $ 4,993 3.2 % $ 12,261 7.2 % $ 13,667 3.1 % $ 33,509 6.9 % Capital Expenditures Hooker Branded $ 89 $ 350 $ 600 $ 699 Home Meridian 126 143 300 330 All Other 871 1,138 3,845 1,435 Consolidated $ 1,086 $ 1,631 $ 4,745 $ 2,464 Depreciation & Amortization Hooker Branded $ 471 $ 984 $ 1,453 $ 1,479 Home Meridian 549 851 1,627 1,795 All Other 768 1,248 2,180 2,284 Consolidated $ 1,788 $ 3,083 $ 5,260 $ 5,558 |
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 November 3, As of February 3, 2019 %Total 2019 %Total Identifiable Assets Assets Assets Hooker Branded $ 140,920 42.9 % $ 108,445 36.9 % Home Meridian 146,971 44.8 % 144,277 49.1 % All Other 40,525 12.3 % 41,181 14.0 % Consolidated $ 328,416 100.0 % $ 293,903 100.0 % Consolidated Goodwill and Intangibles 74,025 75,813 Total Consolidated Assets $ 402,441 $ 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 Thirty-Nine Weeks Ended November 3, 2019 %Total October 28, 2018 %Total November 3, 2019 %Total October 28, 2018 %Total Casegoods $ 105,018 66 % $ 108,584 63 % $ 288,470 65 % $ 304,370 63 % Upholstery 53,158 34 % 62,890 37 % 157,472 35 % 178,656 37 % $ 158,176 100 % $ 171,474 100 % $ 445,942 100 % $ 483,026 100 % |
2 - Recently Adopted Accounti_2
2 - Recently Adopted Accounting Policies (Details) - USD ($) $ in Thousands | Nov. 03, 2019 | Feb. 03, 2019 |
Accounting Changes and Error Corrections [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 40,872 | $ 0 |
Operating Lease, Liability | $ 41,699 |
3 - Accounts Receivable (Detail
3 - Accounts Receivable (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) $ in Thousands | Nov. 03, 2019 | Feb. 03, 2019 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract] | ||
Trade accounts receivable | $ 98,818 | $ 117,732 |
Other accounts receivable allowances | (5,452) | (4,267) |
Allowance for doubtful accounts | (763) | (908) |
Accounts receivable | $ 92,603 | $ 112,557 |
4 - Inventories (Details) - Sch
4 - Inventories (Details) - Schedule of Inventory, Current - USD ($) $ in Thousands | Nov. 03, 2019 | Feb. 03, 2019 |
Schedule of Inventory, Current [Abstract] | ||
Finished furniture | $ 116,501 | $ 112,847 |
Furniture in process | 1,092 | 1,825 |
Materials and supplies | 8,965 | 10,896 |
Inventories at FIFO | 126,558 | 125,568 |
Reduction to LIFO basis | (22,943) | (20,364) |
Inventories | $ 103,615 | $ 105,204 |
5 - Property, Plant and Equip_3
5 - Property, Plant and Equipment (Details) - Property, Plant and Equipment - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 03, 2019 | Feb. 03, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 72,058 | $ 64,600 |
Less accumulated depreciation | 42,853 | 39,925 |
Total depreciable property, net | 29,205 | 24,675 |
Land | 1,077 | 1,067 |
Construction-in-progress | 500 | 3,740 |
Property, plant and equipment, net | 30,782 | 29,482 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 31,295 | 24,588 |
Computer Software and Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 19,100 | 18,719 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,116 | 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 | $ 2,454 | 2,318 |
Property, Plant and Equipment, Other Types [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 650 | $ 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 |
6 - Fair Value Measurements (De
6 - Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Nov. 03, 2019 | Feb. 03, 2019 |
Assets measured at fair value | ||
Company-owned life insurance | $ 25,016 | $ 23,816 |
Pension Plan assets | 0 | 10,992 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Company-owned life insurance | 0 | 0 |
Pension Plan assets | 0 | 10,992 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | ||
Company-owned life insurance | 25,016 | 23,816 |
Pension Plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value | ||
Company-owned life insurance | 0 | 0 |
Pension Plan assets | $ 0 | $ 0 |
7 - Intangible Assets (Details)
7 - Intangible Assets (Details) $ in Millions | Nov. 03, 2019USD ($) |
Disclosure Text Block [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 596,000 |
7 - Intangible Assets (Details
7 - Intangible Assets (Details) - Schedule of Indefinite-Lived Intangible Assets - USD ($) $ in Thousands | Nov. 03, 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 |
7 - Intangible Assets (Detai_2
7 - Intangible Assets (Details) - Schedule of Finite-Lived Intangible Assets $ in Thousands | 9 Months Ended |
Nov. 03, 2019USD ($) | |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Balance | $ 22,320 |
Amortization | (1,743) |
Balance | 20,577 |
Order or Production Backlog [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Balance | 778 |
Amortization | (45) |
Balance | 733 |
Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Balance | 23,098 |
Amortization | (1,788) |
Balance | $ 21,310 |
8. Customer Deposits (Details)
8. Customer Deposits (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 03, 2019 | Oct. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Timing of Satisfaction of Performance Obligation and Payment | Due to the highly customized nature of our hospitality products, we typically require a 50% deposit with order, a 40% deposit before goods reach a U.S. port and the remaining 10% balance due within 30 days of the receipt of goods by the customer. | |
Increase (Decrease) in Contract with Customer, Liability | $ 10,006 | $ (1,359) |
9 - Leases (Details)
9 - Leases (Details) - USD ($) | Feb. 04, 2019 | Nov. 03, 2019 | Nov. 03, 2019 |
9 - 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 | $ 130,000 | $ 347,000 | |
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 6 months | 7 years 6 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.00% | 4.00% | |
London Interbank Offered Rate (LIBOR) [Member] | |||
9 - Leases (Details) [Line Items] | |||
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate | 1.50% | 1.50% |
9 - Leases (Details) - Schedule
9 - Leases (Details) - Schedule of Lease Cost - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Nov. 03, 2019 | Feb. 03, 2019 | |
9 - Leases (Details) - Schedule of Lease Cost [Line Items] | ||
Operating lease cost | $ 2,263 | $ 6,756 |
Operating cash outflows | 1,918 | 6,255 |
Leases Greater Than 12 Months [Member] | ||
9 - Leases (Details) - Schedule of Lease Cost [Line Items] | ||
Operating lease cost | 2,090 | 6,289 |
Leases Less Than 12 Months [Member] | ||
9 - Leases (Details) - Schedule of Lease Cost [Line Items] | ||
Operating lease cost | $ 173 | $ 467 |
9 - Leases (Details) - Schedu_2
9 - Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities - USD ($) $ in Thousands | Nov. 03, 2019 | Feb. 03, 2019 |
9 - Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items] | ||
Operating leases right-of-use assets | $ 40,872 | $ 0 |
Current portion of operating lease liabilities | 6,395 | 0 |
Long term operating lease liabilities | 35,304 | $ 0 |
Total operating lease liabilities | 41,699 | |
Real Estate [Member] | ||
9 - Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items] | ||
Operating leases right-of-use assets | 39,750 | |
Property, Plant and Equipment [Member] | ||
9 - Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items] | ||
Operating leases right-of-use assets | $ 1,122 |
9 - Leases (Details) - Schedu_3
9 - Leases (Details) - Schedule of Future Minimum Rental Payments for Operating Leases $ in Thousands | Nov. 03, 2019USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
Remainder of 2019 | $ 2,327 |
2020 | 7,732 |
2021 | 7,114 |
2022 | 5,520 |
2023 | 5,267 |
2024 and therafter | 20,394 |
Total lease payments | 48,354 |
Less: impact of discounting | (6,655) |
Present value of lease payments | $ 41,699 |
10 - Long-Term Debt (Details)
10 - Long-Term Debt (Details) $ in Millions | Nov. 03, 2019USD ($) |
Disclosure Text Block [Abstract] | |
Line of Credit Facility, Current Borrowing Capacity | $ 25.7 |
Letters of Credit Outstanding, Amount | $ 4.3 |
11 - Employee Benefit Plans (De
11 - Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
11 - 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. We settled all Pension Plan obligations during the quarter with the purchase of nonparticipating annuity contracts for plan participants. Consequently, we recognized a $520,000 settlement gain during the quarter, which is recorded in the “other income” line of our condensed consolidated statements of income. The $520,000 represented an amount recorded in accumulated other comprehensive income until the pension obligation was settled upon plan termination. | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (520) | $ 0 | $ (520) | $ 0 |
Supplemental Retirement Income Plan ("SRIP") and Supplemental Executive Retirement Plan ("SERP") [Member] | ||||
11 - Employee Benefit Plans (Details) [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 171 | 520 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Remainder of Fiscal Year | $ 164 | $ 164 |
11 - Employee Benefit Plans (_2
11 - Employee Benefit Plans (Details) - Schedule of Net Benefit Costs - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Net periodic benefit costs | ||||
Service cost | $ 26 | $ 81 | $ 78 | $ 243 |
Interest cost | 204 | 206 | 613 | 618 |
Actuarial loss | 37 | 43 | 111 | 129 |
Expected return on pension plan assets | (101) | (144) | (304) | (431) |
Expected administrative expenses | 98 | 70 | 293 | 210 |
Consolidated net periodic benefit costs | $ 264 | $ 256 | $ 791 | $ 769 |
12 - Earnings Per Share (Detail
12 - Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units - shares shares in Thousands | Nov. 03, 2019 | Feb. 03, 2019 |
12 - Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 127 | 58 |
Restricted Stock [Member] | ||
12 - 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] | ||
12 - Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 78 | 36 |
12 - Earnings Per Share (Deta_2
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 | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income | $ 3,920 | $ 9,332 | $ 10,067 | $ 25,181 |
Less: Unvested participating restricted stock dividends | 7 | 3 | 18 | 8 |
Net earnings allocated to unvested participating restricted stock | 16 | 17 | 33 | 41 |
Earnings available for common shareholders | $ 3,897 | $ 9,312 | $ 10,016 | $ 25,132 |
Weighted average shares outstanding for basic earnings per share (in Shares) | 11,789 | 11,763 | 11,782 | 11,758 |
Dilutive effect of unvested restricted stock, RSU and PSU awards (in Shares) | 27 | 15 | 39 | 20 |
Weighted average shares outstanding for diluted earnings per share (in Shares) | 11,816 | 11,778 | 11,821 | 11,778 |
Basic earnings per share (in Dollars per share) | $ 0.33 | $ 0.79 | $ 0.85 | $ 2.14 |
Diluted earnings per share (in Dollars per share) | $ 0.33 | $ 0.79 | $ 0.85 | $ 2.13 |
13 - Income Taxes (Details)
13 - Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | Feb. 03, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Income Tax Expense (Benefit) | $ 1,066 | $ 2,775 | $ 2,829 | $ 7,504 | |
Effective Income Tax Rate Reconciliation, Percent | 21.40% | 22.90% | 21.90% | 23.00% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 40 | $ 40 | $ 38 |
14 - Segment Information (Detai
14 - Segment Information (Details) | 9 Months Ended |
Nov. 03, 2019 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
14 - Segment Information (Det_2
14 - Segment Information (Details) - Segment Reporting Information - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 158,176 | $ 171,474 | $ 445,942 | $ 483,026 |
% of Net Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Profit | $ 28,399 | $ 35,836 | $ 82,741 | $ 103,447 |
% of Net Sales, Gross Profit | 18.00% | 20.90% | 18.60% | 21.40% |
Operating Income | $ 4,993 | $ 12,261 | $ 13,667 | $ 33,509 |
% of Net Sales, Operating Income | 3.20% | 7.20% | 3.10% | 6.90% |
Capital Expenditures | $ 1,086 | $ 1,631 | $ 4,745 | $ 2,464 |
Depreciation & Amortization | 1,788 | 3,083 | 5,260 | 5,558 |
Hooker Branded [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 43,703 | $ 46,479 | $ 122,707 | $ 129,801 |
% of Net Sales | 27.60% | 27.10% | 27.50% | 26.90% |
Gross Profit | $ 13,947 | $ 14,334 | $ 38,323 | $ 41,372 |
% of Net Sales, Gross Profit | 31.90% | 30.80% | 31.20% | 31.90% |
Operating Income | $ 6,188 | $ 5,712 | $ 15,453 | $ 17,381 |
% of Net Sales, Operating Income | 14.20% | 12.30% | 12.60% | 13.40% |
Capital Expenditures | $ 89 | $ 350 | $ 600 | $ 699 |
Depreciation & Amortization | 471 | 984 | 1,453 | 1,479 |
Home Meridian International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 85,776 | $ 95,013 | $ 240,594 | $ 266,631 |
% of Net Sales | 54.30% | 55.40% | 54.00% | 55.20% |
Gross Profit | $ 7,286 | $ 15,382 | $ 24,139 | $ 43,196 |
% of Net Sales, Gross Profit | 8.50% | 16.20% | 10.00% | 16.20% |
Operating Income | $ (3,955) | $ 4,829 | $ (9,013) | $ 10,168 |
% of Net Sales, Operating Income | (4.60%) | 5.10% | (3.70%) | 3.80% |
Capital Expenditures | $ 126 | $ 143 | $ 300 | $ 330 |
Depreciation & Amortization | 549 | 851 | 1,627 | 1,795 |
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 28,697 | $ 29,982 | $ 82,641 | $ 86,594 |
% of Net Sales | 18.10% | 17.50% | 18.50% | 17.90% |
Gross Profit | $ 7,166 | $ 6,120 | $ 20,279 | $ 18,879 |
% of Net Sales, Gross Profit | 25.00% | 20.40% | 24.50% | 21.80% |
Operating Income | $ 2,760 | $ 1,720 | $ 7,227 | $ 5,960 |
% of Net Sales, Operating Income | 9.60% | 5.70% | 8.70% | 6.90% |
Capital Expenditures | $ 871 | $ 1,138 | $ 3,845 | $ 1,435 |
Depreciation & Amortization | $ 768 | $ 1,248 | $ 2,180 | $ 2,284 |
14 - Segment Information (Det_3
14 - Segment Information (Details) - Assets from Segments to Consolidated - USD ($) $ in Thousands | Nov. 03, 2019 | Feb. 03, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 328,416 | $ 293,903 |
% Total Assets | 100.00% | 100.00% |
Consolidated Goodwill and Intangibles | $ 74,025 | $ 75,813 |
Total Consolidated Assets | 402,441 | 369,716 |
Hooker Branded [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 140,920 | $ 108,445 |
% Total Assets | 42.90% | 36.90% |
Home Meridian International [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 146,971 | $ 144,277 |
% Total Assets | 44.80% | 49.10% |
Other Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total Assets | $ 40,525 | $ 41,181 |
% Total Assets | 12.30% | 14.00% |
14 - Segment Information (Det_4
14 - Segment Information (Details) - Revenue from External Customers by Products and Services - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2019 | Oct. 28, 2018 | Nov. 03, 2019 | Oct. 28, 2018 | |
Revenue from External Customer [Line Items] | ||||
Sales | $ 158,176 | $ 171,474 | $ 445,942 | $ 483,026 |
% of Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Casegoods [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales | $ 105,018 | $ 108,584 | $ 288,470 | $ 304,370 |
% of Sales | 66.00% | 63.00% | 65.00% | 63.00% |
Upholstery [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales | $ 53,158 | $ 62,890 | $ 157,472 | $ 178,656 |
% of Sales | 34.00% | 37.00% | 35.00% | 37.00% |
15 - Subsequent Events (Details
15 - Subsequent Events (Details) - Subsequent Event [Member] | Dec. 05, 2019$ / shares |
15 - Subsequent Events (Details) [Line Items] | |
Dividends Payable, Date Declared | Dec. 5, 2019 |
Common Stock, Dividends, Per Share, Declared | $ 0.16 |
Dividend, Increase Rate, Percentage | 6.70% |
Dividend, Increase Per-Share | $ 0.01 |
Dividends Payable, Date to be Paid | Dec. 30, 2019 |
Dividends Payable, Date of Record | Dec. 16, 2019 |