Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Aug. 31, 2016 | Oct. 10, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Educational Development Corp | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --02-28 | |
Entity Common Stock, Shares Outstanding | 4,081,072 | |
Amendment Flag | false | |
Entity Central Index Key | 31,667 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Aug. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONDENSED BALANCE SHEETS (UNAUD
CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($) | Aug. 31, 2016 | Feb. 29, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,045,000 | $ 1,183,700 |
Accounts receivable, less allowance for doubtful accounts and sales returns of $395,800 (August 31) and $501,900 (February 29) | 2,869,900 | 2,513,300 |
Inventories—Net | 29,428,800 | 17,479,500 |
Prepaid expenses and other assets | 1,946,000 | 1,028,100 |
Deferred income taxes | 378,900 | 298,200 |
Total current assets | 36,668,600 | 22,502,800 |
INVENTORIES—Net | 200,400 | 169,000 |
PROPERTY, PLANT AND EQUIPMENT—Net | 27,907,700 | 26,710,300 |
OTHER ASSETS | 262,000 | 262,000 |
DEFERRED INCOME TAXES | 31,900 | 50,900 |
TOTAL ASSETS | 65,070,600 | 49,695,000 |
CURRENT LIABILITIES: | ||
Accounts payable | 14,786,400 | 7,801,300 |
Line of credit | 4,876,300 | 3,331,800 |
Deferred revenues | 5,021,400 | 2,925,200 |
Current maturities of long-term debt | 898,500 | 615,400 |
Accrued salaries and commissions | 1,412,300 | 1,202,500 |
Income taxes payable | 726,100 | 803,100 |
Dividends payable | 366,800 | 366,300 |
Other current liabilities | 2,353,500 | 1,732,500 |
Total current liabilities | 30,441,300 | 18,778,100 |
LONG-TERM DEBT-Net of current maturities | 21,082,200 | 17,687,400 |
Total liabilities | 51,523,500 | 36,465,500 |
COMMITMENTS (Note 7) | ||
SHAREHOLDERS’ EQUITY: | ||
Common stock, $0.20 par value; Authorized 8,000,000 shares; Issued 6,041,040 (August 31 and February 29) shares; Outstanding 4,076,291 (August 31) and 4,064,610 (February 29) shares | 1,208,200 | 1,208,200 |
Capital in excess of par value | 8,548,000 | 8,548,000 |
Retained earnings | 14,763,000 | 14,557,500 |
24,519,200 | 24,313,700 | |
Less treasury stock, at cost | (10,972,100) | (11,084,200) |
Total shareholders' equity | 13,547,100 | 13,229,500 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 65,070,600 | $ 49,695,000 |
CONDENSED BALANCE SHEETS (UNAU3
CONDENSED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) | Aug. 31, 2016 | Feb. 29, 2016 |
Allowance for doubtful accounts and sales returns (in Dollars) | $ 395,800 | $ 501,900 |
Common Stock, par value (in Dollars per share) | $ 0.20 | $ 0.20 |
Common Stock, shares authorized | 8,000,000 | 8,000,000 |
Common Stock, shares issued | 6,041,040 | 6,041,040 |
Common Stock, shares outstanding | 4,076,291 | 4,064,610 |
CONDENSED STATEMENTS OF EARNING
CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
GROSS SALES | $ 30,558,600 | $ 17,685,600 | $ 57,259,900 | $ 30,988,700 |
Discounts and allowances | (7,444,900) | (5,994,500) | (13,633,900) | (10,202,100) |
Transportation revenue | 2,779,300 | 915,700 | 5,051,200 | 1,458,000 |
NET REVENUES | 25,893,000 | 12,606,800 | 48,677,200 | 22,244,600 |
COST OF SALES | 7,498,400 | 4,577,400 | 14,172,200 | 8,151,200 |
Gross margin | 18,394,600 | 8,029,400 | 34,505,000 | 14,093,400 |
OPERATING EXPENSES: | ||||
Operating and selling | 8,751,100 | 3,395,400 | 16,220,600 | 6,118,700 |
Sales commissions | 8,307,100 | 3,060,800 | 15,281,200 | 5,375,400 |
General and administrative | 944,200 | 512,500 | 1,761,700 | 996,900 |
Total operating expenses | 18,002,400 | 6,968,700 | 33,263,500 | 12,491,000 |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (248,500) | (27,600) | (465,000) | (43,400) |
Other income | 377,000 | 5,900 | 748,800 | 11,700 |
Total income (expense) | 128,500 | (21,700) | 283,800 | (31,700) |
EARNINGS BEFORE INCOME TAXES | 520,700 | 1,039,000 | 1,525,300 | 1,570,700 |
INCOME TAXES | 202,200 | 394,600 | 586,600 | 601,700 |
NET EARNINGS | $ 318,500 | $ 644,400 | $ 938,700 | $ 969,000 |
BASIC AND DILUTED EARNINGS PER SHARE: | ||||
Basic (in Dollars per share) | $ 0.08 | $ 0.16 | $ 0.23 | $ 0.24 |
Diluted (in Dollars per share) | 0.08 | 0.16 | 0.23 | 0.24 |
DIVIDENDS PER SHARE (in Dollars per share) | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.17 |
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING: | ||||
Basic (in Shares) | 4,074,469 | 4,045,219 | 4,071,574 | 4,039,055 |
Diluted (in Shares) | 4,080,039 | 4,045,219 | 4,077,318 | 4,039,055 |
CONDENSED STATEMENT OF CHANGES
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - 6 months ended Aug. 31, 2016 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Feb. 29, 2016 | $ 1,208,200 | $ 8,548,000 | $ 14,557,500 | $ (11,084,200) | $ 13,229,500 |
Balance (in Shares) at Feb. 29, 2016 | 6,041,040 | 1,976,430 | |||
Sales of treasury stock | $ 112,100 | $ 112,100 | |||
Sales of treasury stock (in Shares) | (11,681) | ||||
Dividends paid ($.09/share) (in Dollars per share) | $ (366,400) | $ (366,400) | |||
Dividends declared ($.09/share) | $ (366,800) | $ (366,800) | |||
Net earnings | 938,700 | 938,700 | |||
Balance at Aug. 31, 2016 | $ 1,208,200 | $ 8,548,000 | $ 14,763,000 | $ (10,972,100) | $ 13,547,100 |
Balance (in Shares) at Aug. 31, 2016 | 6,041,040 | 1,964,749 |
CONDENSED STATEMENT OF CHANGES6
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parentheticals) - Retained Earnings [Member] | 6 Months Ended |
Aug. 31, 2016$ / shares | |
Dividends paid | $ 0.09 |
Dividends declared | $ 0.09 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | $ (2,038,600) | $ 927,800 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (1,701,900) | (397,300) |
Net cash used in investing activities | (1,701,900) | (397,300) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash paid to acquire treasury stock | 0 | (200) |
Cash received from sales of treasury stock | 112,100 | 92,900 |
Borrowings under line of credit | 20,157,000 | 1,550,000 |
Payments under line of credit | (18,612,500) | (1,600,000) |
Proceeds from long-term debt | 4,000,000 | 0 |
Payments on long-term debt | (322,100) | 0 |
Dividends paid | (732,700) | (645,000) |
Net cash provided by (used in) financing activities | 4,601,800 | (602,300) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 861,300 | (71,800) |
CASH AND CASH EQUIVALENTS—BEGINNING OF PERIOD | 1,183,700 | 383,900 |
CASH AND CASH EQUIVALENTS—END OF PERIOD | 2,045,000 | 312,100 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 465,000 | 43,400 |
Cash paid for income taxes | $ 725,300 | $ 366,600 |
Note 1
Note 1 | 6 Months Ended |
Aug. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Note 1 – The information shown with respect to the three and six months ended August 31, 2016 and 2015, which is unaudited, includes all adjustments which in the opinion of Management are considered to be necessary for a fair presentation of earnings for such periods. The adjustments reflected in the financial statements represent normal recurring adjustments. The results of operations for the three and six months ended August 31, 2016 and 2015, are not necessarily indicative of the results to be expected at year end due to seasonality of the product sales. These financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Ex-change Commission for interim reporting and should be read in conjunction with the audited financial statements and accompanying notes contained in our annual report on Form 10-K for the fiscal year ended February 29, 2016. Certain reclassifications have been made to the fiscal year 2016 condensed statements of earnings to conform to the classifications used in fiscal year 2017. These classifications had no effect on net earnings. |
Note 2
Note 2 | 6 Months Ended |
Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 2 2016 August 31, February 29, Line of credit $ 4,876,300 $ 3,331,800 Long-term debt $ 21,980,700 $ 18,302,800 Less current maturities (898,500 ) (615,400 ) LONG-TERM DEBT-NET OF CURRENT MATURITIES $ 21,082,200 $ 17,687,400 We have a Loan Agreement with MidFirst Bank (“the Bank”) including Term Loan #1 comprised of Tranche A of $13.4 million and Tranche B of $5.0 million both with the maturity date of December 1, 2025. The Loan Agreement also provided a revolving loan (“line of credit’) through December 1, 2016. Tranche A has a fixed interest rate of 4.23% and interest is payable monthly. For Tranche B and the line of credit, interest is payable monthly at the bank adjusted LIBOR Index plus 2.75% (3.273% at August 31, 2016). Term Loan #1 is secured by the primary office, warehouse and land. Effective June 15, 2016, we signed a Second Amendment Loan Agreement with the Bank which provides a further increase to $7.0 million from our previous $6.0 million line of credit and extends it through June 15, 2017. Under the amendment, interest is payable monthly at a tiered rate based on our funded debt to EBITDA ratio (“ratio”), whereby pricing tier one is effective for a ratio greater than 4.00 and has a bank adjusted LIBOR Index plus 3.25% and pricing tier two applies for a ratio less than or equal to 4.00, with a bank adjusted LIBOR Index plus 2.75%. EBITDA is defined as earnings before interest expense, income tax expense (benefit) and depreciation and amortization expenses. We had $4,876,300 in borrowings outstanding on our revolving credit agreement at August 31, 2016 and $3,331,800 in borrowings at February 29, 2016. Available credit under the revolving credit agreement was $2,123,700 at August 31, 2016. Effective June 28, 2016, we signed a Third Amendment Loan Agreement with the Bank which includes Term Loan #2 in the amount of $4.0 million with the maturity date of June 28, 2021, and interest payable monthly at the bank adjusted LIBOR Index plus 2.75%. Term Loan #2 is secured by a warehouse, land, and inventory. The Loan Agreement also contains a provision for our use of the Bank’s letters of credit. The Bank agrees to issue, or obtain issuance of commercial or stand-by letters of credit provided that no letters of credit will have an expiry date later than June 15, 2017, and that the sum of the line of credit plus the letters of credit would not exceed the borrowing base in effect at the time. The agreement contains provisions that require us to maintain specified financial ratios, restrict transactions with related parties, prohibit mergers or consolidation, disallow additional debt, and limit the amount of compensation, salaries, investments, capital expenditures and leasing transactions. For the six months ended August 31, 2016, we had no letters of credit outstanding. At August 31, 2016, we were in violation of a certain covenant for which we received a waiver from the Bank through November 30, 2016. |
Note 3
Note 3 | 6 Months Ended |
Aug. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3 2016 August 31, February 29, Current: Book inventory $ 29,453,800 $ 17,504,500 Inventory valuation allowance (25,000 ) (25,000 ) Inventories net–current $ 29,428,800 $ 17,479,500 Non-current: Book inventory $ 450,400 $ 469,000 Inventory valuation allowance (250,000 ) (300,000 ) Inventories net–non-current $ 200,400 $ 169,000 Book inventory quantities in excess of what will be sold within the normal operating cycle, are included in non-current inventory. Significant portions of our inventory purchases are concentrated with an England-based publishing company. Purchases from this company were approximately $9.1 million and $4.1 million for the three months ended August 31, 2016 and 2015, respectively. Total inventory purchases from all suppliers were $15.6 million and $5.5 million for the three months ended August 31, 2016 and 2015, respectively. Purchases from this company were approximately $19.0 million and $18.5 million for the six months ended August 31, 2016 and 2015, respectively. Total inventory purchases from all suppliers were $28.5 million and $11.2 million for the six months ended August 31, 2016 and 2015, respectively. |
Note 4
Note 4 | 6 Months Ended |
Aug. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 4 Earnings Per Share: Three Months Ended August 31, Six Months Ended August 31, 2016 2015 2016 2015 Net earnings $ 318,500 $ 644,400 $ 938,700 $ 969,000 Shares: Weighted average shares outstanding - basic 4,074,469 4,045,219 4,071,574 4,039,055 Assumed exercise of options 5,570 - 5,744 - Weighted average shares outstanding - diluted 4,080,039 4,045,219 4,077,318 4,039,055 Basic Earnings Per Share $ 0.08 $ 0.16 $ 0.23 $ 0.24 Diluted Earnings Per Share $ 0.08 $ 0.16 $ 0.23 $ 0.24 Stock options not considered above because they were antidilutive - 10,000 - 10,000 Our Board of Directors has adopted a stock repurchase plan in which we may purchase up to a total of 3,000,000 shares as market conditions warrant. This plan has no expiration date. During the three and six months ended August 31, 2016, we did not repurchase any shares of common stock. The maximum number of shares that can be repurchased in the future is 303,152. |
Note 5
Note 5 | 6 Months Ended |
Aug. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 5 six months |
Note 6
Note 6 | 6 Months Ended |
Aug. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Other Operating Income and Expense [Text Block] | Note 6 Outbound freight and handling costs incurred are included in operating and selling expenses and were $4,099,100 and $1,547,700 for the three months ended August 31, 2016 and 2015, respectively. These costs were $7,564,800 and $2,605,100 for the six months ended August 31, 2016 and 2015, respectively. |
Note 7
Note 7 | 6 Months Ended |
Aug. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 7 –W The lessee pays $105,800 per month, with a 2.0% annual increase adjustment on the anniversary of the lease. The lease terms allow for one five-year extension, which is not a bargain renewal option, at the expiration of the 15-year term. Revenue associated with the lease is being recorded on a straight-line basis over the 15-year lease and is reported in other income on the condensed statement of earnings. |
Note 8
Note 8 | 6 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 8 The accounting policies of the segments are the same as those of the rest of the Company. We evaluate segment performance based on earnings before income taxes of the segments, which is defined as segment net sales reduced by cost of sales and direct expenses. Corporate expenses, depreciation, interest expense, lease income, and income taxes are not allocated to the segments, but are listed in the “other” row below. Corporate expenses include the executive department, accounting department, information services department, general office management and building facilities management. Our assets and liabilities are not allocated on a segment basis Information by industry segment for the three and six-month periods ended August 31, 2016 and 2015, follows: NET REVENUES Three Months Ended August 31, Six Months Ended August 31, 2016 2015 2016 2015 EDC Publishing $ 2,035,600 $ 3,674,100 $ 4,169,600 $ 6,293,700 UBAM 23,857,400 8,932,700 44,507,600 15,950,900 Total $ 25,893,000 $ 12,606,800 $ 48,677,200 $ 22,244,600 EARNINGS BEFORE INCOME TAXES Three Months Ended August 31, Six Months Ended August 31, 2016 2015 2016 2015 EDC Publishing $ 506,200 $ 1,248,100 $ 1,159,200 $ 1,966,700 UBAM 3,340,200 1,084,600 6,566,400 2,036,600 Other (3,325,700 ) (1,293,700 ) (6,200,300 ) (2,432,600 ) Total $ 520,700 $ 1,039,000 $ 1,525,300 $ 1,570,700 |
Note 9
Note 9 | 6 Months Ended |
Aug. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 9 . In May 2014, FASB issued ASU No. 2014-09, and amended with ASU No. 2015-14 “Revenue from Contracts with Customers,” which provides a single revenue recognition model which is intended to improve comparability over a range of industries, companies and geographical boundaries and will also result in enhanced disclosures. The changes are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which means the first quarter of our fiscal year 2019. We are currently reviewing the ASU and assessing the potential impact on our financial statements. In August 2015, FASB issued ASU No. 2015-15 “Interest—Imputation of Interest,” which modifies the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. These changes allow an entity to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The changes are effective for financial statements issued for annual periods beginning after December 15, 2015, and interim periods within those annual periods, which means the first quarter of our fiscal year 2017. This ASU did not have a significant impact on our financial statements. In November 2015, FASB issued ASU No. 2015-17 “Income Taxes – Balance Sheet Classification of Deferred Taxes”, which is intended to improve how deferred taxes are classified on organizations’ balance sheets by eliminating the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will now be required to classify all deferred tax assets and liabilities as noncurrent. The changes are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, which means the first quarter of our fiscal year 2018. We anticipate this ASU having minimal impact on our financial statements. In February 2016, FASB issued ASU No. 2016-02, “Leases,” which is intended to establish a comprehensive new lease accounting model. The new standard clarifies the definition of a lease, requires a dual approach to lease classification similar to current lease classifications, and causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP, in that the vast majority of operating leases should remain classified as operating leases and lessors should continue to recognize lease income for those leases on a generally straight-line basis over the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2018, which means the first quarter of our fiscal year 2020. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. We are currently reviewing the ASU and evaluating the potential impact on our financial statements. In March 2016, FASB issued ASU No. 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting,” which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard is effective for interim and annual periods beginning after December 15, 2016, which means the first quarter of our fiscal year 2018. We are currently reviewing the ASU and evaluating the potential impact on our financial statements. |
Note 10
Note 10 | 6 Months Ended |
Aug. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 10 Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly. If an asset or liability has a specified term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Unobservable inputs for the asset or liability. We do not report any assets or liabilities at fair value in the financial statements. However, the estimated fair value of our line of credit is estimated by management to approximate the carrying value of $4,876,3 at August 31, 2016. The estimated fair value of our term note payable is estimated by management to approximate $21,757,300 at August 31, 2016. Management's estimates are based on the obligations' characteristics, including floating interest rate, maturity, and collateral. Such valuation inputs are considered a Level 2 measurement in the fair value valuation hierarchy. |
Note 11
Note 11 | 6 Months Ended |
Aug. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 11 |
Note 12
Note 12 | 6 Months Ended |
Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 12 |
Note 2 (Tables)
Note 2 (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | 2016 August 31, February 29, Line of credit $ 4,876,300 $ 3,331,800 Long-term debt $ 21,980,700 $ 18,302,800 Less current maturities (898,500 ) (615,400 ) LONG-TERM DEBT-NET OF CURRENT MATURITIES $ 21,082,200 $ 17,687,400 |
Note 3 (Tables)
Note 3 (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory [Table Text Block] | Inventories consist of the following: 2016 August 31, February 29, Current: Book inventory $ 29,453,800 $ 17,504,500 Inventory valuation allowance (25,000 ) (25,000 ) Inventories net–current $ 29,428,800 $ 17,479,500 Non-current: Book inventory $ 450,400 $ 469,000 Inventory valuation allowance (250,000 ) (300,000 ) Inventories net–non-current $ 200,400 $ 169,000 |
Note 4 (Tables)
Note 4 (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown below. Earnings Per Share: Three Months Ended August 31, Six Months Ended August 31, 2016 2015 2016 2015 Net earnings $ 318,500 $ 644,400 $ 938,700 $ 969,000 Shares: Weighted average shares outstanding - basic 4,074,469 4,045,219 4,071,574 4,039,055 Assumed exercise of options 5,570 - 5,744 - Weighted average shares outstanding - diluted 4,080,039 4,045,219 4,077,318 4,039,055 Basic Earnings Per Share $ 0.08 $ 0.16 $ 0.23 $ 0.24 Diluted Earnings Per Share $ 0.08 $ 0.16 $ 0.23 $ 0.24 Stock options not considered above because they were antidilutive - 10,000 - 10,000 |
Note 8 (Tables)
Note 8 (Tables) | 6 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information by industry segment for the three and six-month periods ended August 31, 2016 and 2015, follows: NET REVENUES Three Months Ended August 31, Six Months Ended August 31, 2016 2015 2016 2015 EDC Publishing $ 2,035,600 $ 3,674,100 $ 4,169,600 $ 6,293,700 UBAM 23,857,400 8,932,700 44,507,600 15,950,900 Total $ 25,893,000 $ 12,606,800 $ 48,677,200 $ 22,244,600 EARNINGS BEFORE INCOME TAXES Three Months Ended August 31, Six Months Ended August 31, 2016 2015 2016 2015 EDC Publishing $ 506,200 $ 1,248,100 $ 1,159,200 $ 1,966,700 UBAM 3,340,200 1,084,600 6,566,400 2,036,600 Other (3,325,700 ) (1,293,700 ) (6,200,300 ) (2,432,600 ) Total $ 520,700 $ 1,039,000 $ 1,525,300 $ 1,570,700 |
Note 2 (Details)
Note 2 (Details) - USD ($) | Jun. 28, 2016 | Jun. 15, 2016 | Feb. 29, 2016 | Aug. 31, 2016 |
Note 2 (Details) [Line Items] | ||||
Long-term Line of Credit | $ 3,331,800 | $ 4,876,300 | ||
Medium-term Notes [Member] | ||||
Note 2 (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 4,000,000 | |||
Medium-term Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Note 2 (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||
Line of Credit [Member] | ||||
Note 2 (Details) [Line Items] | ||||
Line of Credit Facility, Expiration Date | Jun. 15, 2017 | Dec. 1, 2016 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000,000 | |||
Debt Instrument, Interest Rate Terms | interest is payable monthly at a tiered rate based on our funded debt to EBITDA ratio (“ratio”), whereby pricing tier one is effective for a ratio greater than 4.00 and has a bank adjusted LIBOR Index plus 3.25% and pricing tier two applies for a ratio less than or equal to 4.00, with a bank adjusted LIBOR Index plus 2.75% | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,123,700 | |||
Line of Credit [Member] | Interest Rate Tier One [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Note 2 (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |||
Line of Credit [Member] | Interest Rate, Tier Two [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Note 2 (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||
Term Loan #1, Tranche A [Member] | Medium-term Notes [Member] | ||||
Note 2 (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 13,400,000 | |||
Debt Instrument, Maturity Date | Dec. 1, 2025 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.23% | |||
Term Loan #1, Tranche B [Member] | Medium-term Notes [Member] | ||||
Note 2 (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 5,000,000 | |||
Debt Instrument, Maturity Date | Dec. 1, 2025 | |||
Line of Credit Facility, Interest Rate at Period End | 3.273% | |||
Term Loan #1, Tranche B [Member] | Medium-term Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Note 2 (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Note 2 (Details) - Schedule of
Note 2 (Details) - Schedule of Debt - USD ($) | Aug. 31, 2016 | Feb. 29, 2016 |
Schedule of Debt [Abstract] | ||
Line of credit | $ 4,876,300 | $ 3,331,800 |
Long-term debt | 21,980,700 | 18,302,800 |
Less current maturities | (898,500) | (615,400) |
LONG-TERM DEBT-NET OF CURRENT MATURITIES | $ 21,082,200 | $ 17,687,400 |
Note 3 (Details)
Note 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Note 3 (Details) [Line Items] | ||||
Payments for Purchase of Other Assets | $ 15.6 | $ 5.5 | $ 28.5 | $ 11.2 |
England Based Publishing Company [Member] | ||||
Note 3 (Details) [Line Items] | ||||
Payments for Purchase of Other Assets | $ 9.1 | $ 4.1 | $ 19 | $ 18.5 |
Note 3 (Details) - Schedule of
Note 3 (Details) - Schedule of Inventory - USD ($) | Aug. 31, 2016 | Feb. 29, 2016 |
Note 3 (Details) - Schedule of Inventory [Line Items] | ||
Inventories net–non-current | $ 200,400 | $ 169,000 |
Inventories net–current | 29,428,800 | 17,479,500 |
Inventory, Current [Member] | ||
Note 3 (Details) - Schedule of Inventory [Line Items] | ||
Book inventory | 29,453,800 | 17,504,500 |
Inventory valuation allowance | (25,000) | (25,000) |
Inventories net–current | 29,428,800 | 17,479,500 |
Inventory, Noncurrent [Member] | ||
Note 3 (Details) - Schedule of Inventory [Line Items] | ||
Book inventory | 450,400 | 469,000 |
Inventory valuation allowance | (250,000) | (300,000) |
Inventories net–non-current | $ 200,400 | $ 169,000 |
Note 4 (Details)
Note 4 (Details) | Aug. 31, 2016shares |
Earnings Per Share [Abstract] | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 3,000,000 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 303,152 |
Note 4 (Details) - Schedule of
Note 4 (Details) - Schedule of Earnings Per Share - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Schedule of Earnings Per Share [Abstract] | ||||
Net earnings (in Dollars) | $ 318,500 | $ 644,400 | $ 938,700 | $ 969,000 |
Shares: | ||||
Weighted average shares outstanding - basic | 4,074,469 | 4,045,219 | 4,071,574 | 4,039,055 |
Assumed exercise of options | 5,570 | 0 | 5,744 | 0 |
Weighted average shares outstanding - diluted | 4,080,039 | 4,045,219 | 4,077,318 | 4,039,055 |
Basic Earnings Per Share (in Dollars per share) | $ 0.08 | $ 0.16 | $ 0.23 | $ 0.24 |
Diluted Earnings Per Share (in Dollars per share) | $ 0.08 | $ 0.16 | $ 0.23 | $ 0.24 |
Stock options not considered above because they were antidilutive | 0 | 10,000 | 0 | 10,000 |
Note 5 (Details)
Note 5 (Details) - USD ($) | 6 Months Ended | |
Aug. 31, 2016 | Aug. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Allocated Share-based Compensation Expense | $ 0 | $ 0 |
Note 6 (Details)
Note 6 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Disclosure Text Block [Abstract] | ||||
Shipping, Handling and Transportation Costs | $ 4,099,100 | $ 1,547,700 | $ 7,564,800 | $ 2,605,100 |
Note 7 (Details)
Note 7 (Details) | 6 Months Ended |
Aug. 31, 2016USD ($)ft² | |
Accounting Policies [Abstract] | |
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 15 years |
Area of Real Estate Property (in Square Feet) | ft² | 181,300 |
Area of Real Estate Property, as a Percentage of the Facility | 45.30% |
Description of Lessor Leasing Arrangements, Operating Leases | The lessee pays $105,800 per month, with a 2.0% annual increase adjustment on the anniversary of the lease |
Operating Leases, Income Statement, Minimum Lease Revenue (in Dollars) | $ | $ 105,800 |
Lessor Leasing Arrangements, Operating Leases, Renewal Term | 5 years |
Note 8 (Details)
Note 8 (Details) | 6 Months Ended |
Aug. 31, 2016 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note 8 (Details) - Schedule of
Note 8 (Details) - Schedule of Information by Industry Segment - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2016 | Aug. 31, 2015 | Aug. 31, 2016 | Aug. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 25,893,000 | $ 12,606,800 | $ 48,677,200 | $ 22,244,600 |
Earnings (Loss) Before Income Taxes | 520,700 | 1,039,000 | 1,525,300 | 1,570,700 |
Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 2,035,600 | 3,674,100 | 4,169,600 | 6,293,700 |
Earnings (Loss) Before Income Taxes | 506,200 | 1,248,100 | 1,159,200 | 1,966,700 |
Usborne Books and More [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 23,857,400 | 8,932,700 | 44,507,600 | 15,950,900 |
Earnings (Loss) Before Income Taxes | 3,340,200 | 1,084,600 | 6,566,400 | 2,036,600 |
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Loss) Before Income Taxes | $ (3,325,700) | $ (1,293,700) | $ (6,200,300) | $ (2,432,600) |
Note 10 (Details)
Note 10 (Details) - Fair Value, Inputs, Level 2 [Member] | Aug. 31, 2016USD ($) |
Note 10 (Details) [Line Items] | |
Lines of Credit, Fair Value Disclosure | $ 4,876,300 |
Long-term Debt, Fair Value | $ 21,757,300 |
Note 11 (Details)
Note 11 (Details) - $ / shares | Sep. 23, 2016 | Aug. 31, 2016 |
Note 11 (Details) [Line Items] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ (366,400) | |
Subsequent Event [Member] | ||
Note 11 (Details) [Line Items] | ||
Dividends Payable, Date to be Paid | Sep. 23, 2016 | |
Dividends Payable, Date of Record | Sep. 16, 2016 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.09 |
Note 12 (Details)
Note 12 (Details) | 6 Months Ended |
Aug. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Deferred Revenue, Additions | $ 4,890,600 |