Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Nov. 30, 2018 | Jan. 09, 2019 | |
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 | 8,197,826 | |
Amendment Flag | false | |
Entity Central Index Key | 31,667 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Nov. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false |
CONDENSED BALANCE SHEETS (UNAUD
CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 7,840,500 | $ 2,723,300 |
Accounts receivable, less allowance for doubtful accounts of $303,500 (November 30) and $297,100 (February 28) | 3,550,200 | 2,913,700 |
Inventories - Net | 30,646,000 | 26,618,600 |
Prepaid expenses and other assets | 1,583,400 | 1,259,000 |
Total current assets | 43,620,100 | 33,514,600 |
INVENTORIES - Net | 604,000 | 435,900 |
PROPERTY, PLANT AND EQUIPMENT - Net | 27,496,400 | 27,860,500 |
OTHER ASSETS | 26,900 | 26,900 |
TOTAL ASSETS | 71,747,400 | 61,837,900 |
CURRENT LIABILITIES | ||
Accounts payable | 15,156,500 | 12,469,000 |
Deferred revenues | 1,057,300 | 693,000 |
Current maturities of long-term debt | 928,100 | 881,200 |
Accrued salaries and commissions | 3,791,100 | 2,007,900 |
Income taxes payable | 545,900 | 1,798,800 |
Dividends payable | 409,700 | 0 |
Other current liabilities | 4,116,100 | 3,517,900 |
Total current liabilities | 26,004,700 | 21,367,800 |
LONG-TERM DEBT - Net of current maturities | 19,076,000 | 19,825,100 |
DEFERRED INCOME TAXES - Net | 810,000 | 136,900 |
OTHER LONG-TERM LIABILITIES | 109,000 | 106,000 |
Total liabilities | 45,999,700 | 41,435,800 |
SHAREHOLDERS' EQUITY | ||
Common stock, $0.20 par value; Authorized 16,000,000 shares; Issued 12,092,080 (November 30 and February 28) shares; Outstanding 8,203,119 (November 30) and 8,179,612 (February 28) shares | 2,418,400 | 2,418,400 |
Capital in excess of par value | 8,828,600 | 8,573,300 |
Retained earnings | 25,609,600 | 20,714,500 |
36,856,600 | 31,706,200 | |
Less treasury stock, at cost | (11,108,900) | (11,304,100) |
Total shareholders' equity | 25,747,700 | 20,402,100 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 71,747,400 | $ 61,837,900 |
CONDENSED BALANCE SHEETS (UNA_2
CONDENSED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
Allowance for doubtful accounts (in Dollars) | $ 303,500 | $ 297,100 |
Common Stock, par value (in Dollars per share) | $ 0.20 | $ 0.20 |
Common Stock, shares authorized | 16,000,000 | 16,000,000 |
Common Stock, shares issued | 12,092,080 | 12,092,080 |
Common Stock, shares outstanding | 8,203,119 | 8,179,612 |
CONDENSED STATEMENTS OF EARNING
CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
REVENUES | $ 40,482,600 | $ 38,909,900 | $ 95,185,900 | $ 90,038,000 |
COST OF GOODS SOLD | 13,141,600 | 12,211,700 | 31,274,000 | 28,460,800 |
Gross margin | 27,341,000 | 26,698,200 | 63,911,900 | 61,577,200 |
OPERATING EXPENSE: | ||||
Operating and selling | 6,540,600 | 6,121,100 | 14,554,400 | 13,684,200 |
Sales commissions | 12,689,200 | 12,510,400 | 29,375,300 | 28,759,300 |
General and administrative | 4,476,000 | 4,735,200 | 12,106,900 | 12,359,600 |
Total operating expenses | 23,705,800 | 23,366,700 | 56,036,600 | 54,803,100 |
INTEREST EXPENSE | 228,600 | 287,600 | 712,000 | 863,800 |
OTHER INCOME | (397,600) | (388,900) | (1,172,300) | (1,187,400) |
EARNINGS BEFORE INCOME TAXES | 3,804,200 | 3,432,800 | 8,335,600 | 7,097,700 |
INCOME TAXES | 988,600 | 1,304,400 | 2,212,700 | 2,707,100 |
NET EARNINGS | $ 2,815,600 | $ 2,128,400 | $ 6,122,900 | $ 4,390,600 |
BASIC AND DILUTED EARNINGS PER SHARE | ||||
Basic (in Dollars per share) | $ 0.34 | $ 0.26 | $ 0.75 | $ 0.54 |
Diluted (in Dollars per share) | $ 0.34 | $ 0.26 | $ 0.75 | $ 0.54 |
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING | ||||
Basic (in Shares) | 8,194,072 | 8,174,536 | 8,185,561 | 8,175,372 |
Diluted (in Shares) | 8,201,776 | 8,180,022 | 8,193,206 | 8,180,106 |
Dividends per share (in Dollars per share) | $ 0.10 | $ 0.15 | ||
Gross revenue [Member] | ||||
REVENUES | $ 53,486,000 | $ 44,383,700 | $ 125,574,400 | $ 109,395,400 |
Discounts and Allowances [Member] | ||||
REVENUES | (16,572,600) | (9,249,500) | (38,918,700) | (28,317,300) |
Transportation Revenue [Member] | ||||
REVENUES | $ 3,569,200 | $ 3,775,700 | $ 8,530,200 | $ 8,959,900 |
CONDENSED STATEMENT OF CHANGES
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - 9 months ended Nov. 30, 2018 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Feb. 28, 2018 | $ 2,418,400 | $ 8,573,300 | $ 20,714,500 | $ (11,304,100) | $ 20,402,100 |
Balance (in Shares) at Feb. 28, 2018 | 12,092,080 | 3,912,468 | |||
Purchases of treasury stock | $ (31,900) | (31,900) | |||
Purchases of treasury stock (in Shares) | 3,079 | ||||
Sales of treasury stock | $ 227,100 | 227,100 | |||
Sales of treasury stock (in Shares) | (26,586) | ||||
Dividends paid ($0.05/share) | (818,100) | (818,100) | |||
Dividends declared ($0.05/share) | (409,700) | (409,700) | |||
2019 Long-Term Incentive Plan | 255,300 | 255,300 | |||
Net earnings | 6,122,900 | 6,122,900 | |||
Balance at Nov. 30, 2018 | $ 2,418,400 | $ 8,828,600 | $ 25,609,600 | $ (11,108,900) | $ 25,747,700 |
Balance (in Shares) at Nov. 30, 2018 | 12,092,080 | 3,888,961 |
CONDENSED STATEMENT OF CHANGE_2
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parentheticals) | 9 Months Ended |
Nov. 30, 2018$ / shares | |
Dividends paid /share | $ 0.10 |
Dividends declared / share | $ 0.05 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 6,122,900 | $ 4,390,600 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 1,085,100 | 911,700 |
Deferred income taxes, net | 673,100 | 179,400 |
Provision for doubtful accounts | 68,500 | (210,700) |
Provision for inventory valuation allowance | 246,200 | 78,400 |
Share-based compensation expense | 255,300 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (705,000) | (709,500) |
Inventories, net | (4,441,700) | 9,807,100 |
Prepaid expenses and other assets | (324,400) | (198,700) |
Accounts payable | 3,327,000 | (7,301,700) |
Accrued salaries and commissions, and other liabilities | 2,384,300 | 3,889,200 |
Deferred revenues | 364,300 | 28,600 |
Income taxes payable | (1,252,900) | 469,600 |
Total adjustments | 1,679,800 | 6,943,400 |
Net cash provided by operating activities | 7,802,700 | 11,334,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (1,360,500) | (1,330,500) |
Net cash used in investing activities | (1,360,500) | (1,330,500) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on long-term debt | (702,100) | (657,800) |
Proceeds from long-term debt | 0 | 1,019,000 |
Cash received from sale of treasury stock | 227,100 | 32,000 |
Cash received from issuance of shares | 0 | 26,300 |
Cash used to purchase treasury stock | (31,900) | (98,000) |
Net borrowings under line of credit | 0 | (4,882,900) |
Dividends paid | (818,100) | 0 |
Net cash used in financing activities | (1,325,000) | (4,561,400) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 5,117,200 | 5,442,100 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 2,723,300 | 699,200 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 7,840,500 | 6,141,300 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid for interest | 704,300 | 868,900 |
Cash paid for income taxes | $ 2,859,100 | $ 2,058,100 |
Note 1 - BASIS OF PRESENTATION
Note 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Nov. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Note 1 Basis of Presentation The accompanying Unaudited Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim condensed financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. The Unaudited Condensed Financial Statements include all adjustments considered necessary for a fair presentation of the financial position and results of operations for the interim periods presented. Such adjustments consist only of normal recurring items, unless otherwise disclosed herein. Accordingly, the Unaudited Condensed Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. However, we believe that the disclosures made are adequate to make the information not misleading. These interim Unaudited Condensed Financial Statements should be read in conjunction with our audited financial statements as of and for the year ended February 28, 2018 included in our Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year due to the seasonality of our product sales. On July 24, 2018, our Board of Directors authorized a two-for-one stock split in the form of a stock dividend. The stock dividend was distributed on August 22, 2018 to shareholders of record as of August 14, 2018. All share-based data, including the number of shares outstanding and per share amounts, have been retroactively adjusted to reflect the stock split for all periods presented. Reclassifications Certain reclassifications have been made to the fiscal 2018 condensed balance sheet, condensed statement of earnings and condensed statement of cash flows to conform to the classifications used in fiscal 2019. These reclassifications had no effect on net earnings. Use of Estimates in the Preparation of Financial Statements The preparation of the Unaudited Condensed Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Significant Accounting Policies Our significant accounting policies are consistent with those disclosed in Note 1 to our audited financial statements as of and for the year ended February 28, 2018 included in our Form 10-K. New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued accounting standards updates (“ASU”) and concluded that the following recently issued accounting standards apply to us. In May 2014, FASB issued ASU No. 2014-09, and amended with ASU No. 2015-14 “Revenue from Contracts with Customers,” (Topic 606) 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. The amendments in this series of updates shall be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company adopted Topic 606, Revenue from Contracts with Customers, with a date of initial application of March 1, 2018, using the full retrospective method applied to all contracts. Results for all reporting periods are presented under Topic 606. As a result of adopting this new accounting guidance, the Company has changed the method of accounting for its hostess awards program from reporting the net cost of these awards in operating and selling expenses to allocating a portion of the transaction price to the material right and reporting these in gross sales and discounts with the associated costs in cost of goods sold. The new reporting of these awards increases gross sales and increases discounts and allowances for a similar amount, having an immaterial effect on net revenues and no effect on net earnings or retained earnings, but lowering the Company’s gross margin percentage. The Company has also removed the allowance for sales returns from the net accounts receivable amount reported on the balance sheet. The allowance for sales returns has been adjusted to reflect a refund liability and a return asset. The cumulative impact of adoption of the new revenue recognition standard had no impact on net earnings and retained earnings (See Note 10). 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 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 June 2016, FASB issued ASU No. 2016-13 “Financial Instruments—Credit Losses”, which requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which means the first quarter of our fiscal year 2020. We anticipate this ASU to have minimal impact on our financial statements. In August 2016, FASB issued ASU No. 2016-15 “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments.” The guidance’s objective is to reduce diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standards required date of adoption is effective for fiscal years beginning after December 15, 2017. This standard was adopted as of March 1, 2018. Adoption of this new standard did not have a material impact on our financial statements. In May 2017, FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” This update amends the scope of modification accounting surrounding share-based payment arrangements as issued in ASU 2016-09 by providing guidance on the various types of changes which would trigger modification accounting for share-based payment awards. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The new standard is required to be applied prospectively. The guidance was effective March 1, 2018, and the adoption of this ASU did not have a material impact on our financial statements. |
Note 2 - INVENTORIES
Note 2 - INVENTORIES | 9 Months Ended |
Nov. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 2 Inventories consist of the following: 2018 November 30, February 28, Current: Book inventory $ 30,905,100 $ 27,078,600 Inventory valuation allowance (259,100 ) (460,000 ) Inventories net - current $ 30,646,000 $ 26,618,600 Noncurrent: Book inventory $ 1,021,400 $ 707,700 Inventory valuation allowance (417,400 ) (271,800 ) Inventories net - noncurrent $ 604,000 $ 435,900 Book inventory quantities in excess of what we expect will be sold within the normal operating cycle, based on 2.5 years of anticipated sales, are included in non-current inventory. Significant portions of our inventory purchases are concentrated with an England-based publishing company, Usborne Publishing, Ltd. (“Usborne”). Purchases from this company were approximately $8.0 million and $6.9 million for the three months ended November 30, 2018 and 2017, respectively. Total inventory purchases from all suppliers were $10.1 million and $10.9 million for the three months ended November 30, 2018 and 2017, respectively. Purchases from Usborne were approximately $23.5 million and $18.2 million for the nine months ended November 30, 2018 and 2017, respectively. Total inventory purchases from all suppliers were $31.7 million and $27.5 million for the nine months ended November 30, 2018 and 2017, respectively. |
Note 3 - DEBT
Note 3 - DEBT | 9 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 3 Debt consists of the following: 2018 November 30, February 28, Line of credit $ - $ - Long-term debt $ 20,004,100 $ 20,706,300 Less current maturities (928,100 ) (881,200 ) Long-term debt, net of current maturities $ 19,076,000 $ 19,825,100 We have a Loan Agreement dated as of March 10, 2016 (as amended the “Loan Agreement”) with MidFirst Bank (“the Bank”) which includes multiple loans. Term Loan #1 is comprised of Tranche A totaling $13.4 million and Tranche B totaling $5.0 million, both with the maturity date of December 1, 2025. Tranche A has a fixed interest rate of 4.23% and interest is payable monthly. For Tranche B, interest is payable monthly at the bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio (4.84% at November 30, 2018). Term Loan #1 is secured by the primary office, warehouse and land. We also have Term Loan #2 with the Bank 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 a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio (4.84% at November 30, 2018). Term Loan #2 is secured by our secondary warehouse and land. The Loan Agreement also provided a $15.0 million revolving loan (“line of credit”) through August 15, 2019 with interest payable monthly at the bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio (4.84% at November 30, 2018). The Tranche B, the line of credit and the Term Loan #2 accrue interest at a tiered rate based on our Adjusted Funded Debt to EBITDA Ratio, which is payable monthly. The variable interest pricing tier is as follows: Pricing Tier Adjusted Funded Debt to EBITDA Ratio LIBOR Margin (bps) I >2.00 325.00 II >1.50 but < 300.00 III >1.00 but <1 275.00 IV < 250.00 EBITDA is defined in the Loan Agreement as earnings before interest expense, income tax expense (benefit) and depreciation and amortization expenses. We had no borrowings outstanding on our revolving credit agreement at November 30 and February 28, 2018. Available credit under the revolving credit agreement was $10,600,400 and $9,424,000 at November 30, 2018 and February 28, 2018, respectively. On June 15, 2018 the Company executed the Eighth Amendment Loan Agreement with the Bank related to our Loan Agreement dated as of March 10, 2016. This Amendment established a new $3,000,000 advancing term loan to be used for capital expansions to increase daily shipping capacity. We had no borrowings outstanding on the advancing term loan at November 30, 2018. 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 August 15, 2019, 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. For the quarter ended November 30, 2018, we had no letters of credit outstanding. The Loan Agreement contains provisions that require us to maintain specified financial ratios, restrict transactions with related parties, prohibits mergers or consolidation, disallow additional debt, and limit the amount of compensation, salaries, investments, capital expenditures, leasing transactions we can make on a quarterly basis. Additionally, the Loan Agreement places limitations on the amount of dividends that may be distributed and certain stock buyback transactions. The following table reflects aggregate future maturities of long-term debt during the next five fiscal years and thereafter as follows: Year ending February 28 (29), 2019 $ 222,500 2020 943,700 2021 985,400 2022 1,033,900 2023 1,082,300 Thereafter 15,736,300 Total $ 20,004,100 |
Note 4 - EARNINGS PER SHARE
Note 4 - EARNINGS PER SHARE | 9 Months Ended |
Nov. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 4 Basic earnings per share (“EPS”) is computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted EPS is based on the combined weighted average number of common shares outstanding and dilutive potential common shares issuable which include, where appropriate, the assumed exercise of options. In computing diluted EPS, we have utilized the treasury stock method. See Note 1 for additional information regarding the stock split that occurred in fiscal 2019. The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown below. Three Months Ended November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Earnings per share: Net earnings applicable to common shareholders $ 2,815,600 $ 2,128,400 $ 6,122,900 $ 4,390,600 Shares: Weighted average shares outstanding-basic 8,194,072 8,174,536 8,185,561 8,175,372 Assumed exercise of options 7,704 5,486 7,645 4,734 Weighted average shares outstanding-diluted 8,201,776 8,180,022 8,193,206 8,180,106 Diluted earnings per share: Basic $ 0.34 $ 0.26 $ 0.75 $ 0.54 Diluted $ 0.34 $ 0.26 $ 0.75 $ 0.54 |
Note 5 - STOCK-BASED COMPENSATI
Note 5 - STOCK-BASED COMPENSATION | 9 Months Ended |
Nov. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 5 We account for stock-based compensation whereby share-based payment transactions with employees, such as stock options and restricted stock, are measured at estimated fair value at the date of grant. For awards subject to service conditions, compensation expense is recognized over the vesting period on a straight-line basis. Awards subject to performance conditions are attributed separately for each vesting tranche of the award and are recognized ratably from the service inception date to the vesting date for each tranche. Forfeitures are recognized when they occur. The Company has outstanding stock options under the 2002 Employee Incentive Stock Option Plan totaling 10,000 shares. No options have been exercised in the three and nine months ended November 30, 2018. All options outstanding at November 30, 2018 expire in December 2019. In July 2018, our shareholders approved the Company’s 2019 Long-Term Incentive Plan (“2019 LTI Plan”). The 2019 LTI Plan establishes up to 600,000 shares of restricted stock which can be granted to certain members of management based on exceeding specified net revenues and pre-tax performance metrics during fiscal years 2019, 2020 and 2021. Restricted shares granted under the 2019 LTI Plan “cliff vest” after five years. The restricted share awards granted under the 2019 LTI Plan contain both service and performance conditions. The Company recognizes share compensation expense only for the portion of the restricted share awards that are considered probable of vesting. Shares are considered granted, and the service inception date begins, when a mutual understanding of the key terms and conditions between the Company and the employee have been established. The fair value of these awards is determined based on the closing price of the shares on the grant date. The probability of restricted share awards granted with future performance conditions is evaluated at each reporting period and compensation expense is adjusted based on the probability assessment. For certain awards that provide discretion to adjust the allocation of the restricted shares, the service-inception date for such awards could precede the grant date as a mutual understanding of the key terms and conditions between the Company and the employee has not yet been established. For awards in which the service-inception date precedes the grant date, compensation cost is accrued beginning on the service-inception date. The Company estimates the award's fair value on each subsequent reporting date, until the grant date, based on the closing market price of the Company’s common stock. On the grant date, the award's fair value is fixed, subject to the remaining performance conditions, and the cumulative amount of previously recognized compensation expense is adjusted to the fair value at the grant date. On July 24, 2018, the Company granted approximately 240,000 restricted shares under the 2019 LTI Plan with a grant-date fair value of $9.57 per share. In addition, the Company authorized approximately 80,000 restricted shares under the 2019 LTI Plan in which the service-inception date was established on July 24, 2018, resulting in the Company beginning the expense recognition of the fair value of these awards. On October 25, 2018, the Company granted the 80,000 previously authorized restricted shares by communicating the key terms and conditions of the awards to the recipients with a grant-date fair value of $11.24 per share. The remaining compensation expense of the above awards, totaling approximately $2,950,000, will be recognized ratably from the service inception date to the vesting date for this tranche which is approximately 51 months. The number of restricted shares to be distributed depends on attaining the performance metrics defined by the 2019 LTI Plan and may result in the distribution of a number of shares that is greater or less than the number of restricted shares granted, as outlined in the terms of the 2019 LTI Plan. A summary of compensation expense recognized in connection with restricted share awards follows: Three Months Ended November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Share-based compensation expense $ 185,300 $ - $ 255,300 $ - |
Note 6 - SHIPPING AND HANDLING
Note 6 - SHIPPING AND HANDLING COSTS | 9 Months Ended |
Nov. 30, 2018 | |
Disclosure Text Block [Abstract] | |
Other Operating Income and Expense [Text Block] | Note 6 We classify shipping and handling costs as operating and selling expenses in the statements of earnings. Shipping and handling costs include postage, freight, handling costs, as well as, shipping materials and supplies. These costs were $5,897,500 and $5,328,900 for the three months ended November 30, 2018 and 2017, respectively. These costs were $13,556,400 and $12,200,100 for the nine months ended November 30, 2018 and 2017, respectively. |
Note 7 - BUSINESS SEGMENTS
Note 7 - BUSINESS SEGMENTS | 9 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 7 We have two reportable segments: Usborne Books & More (“UBAM”) and Publishing. These reportable segments are business units that offer different methods of distribution to different types of customers. They are managed separately based on the fundamental differences in their operations. Our Publishing segment markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers and our internal tele-sales group. Our UBAM segment markets its products through a network of independent sales consultants using a combination of internet sales, direct sales, home shows and book fairs. 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 revenues reduced by cost of sales and direct expenses. Corporate expenses, depreciation, interest expense 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, warehouse operations and building facilities management. Our assets and liabilities are not allocated on a segment basis. Information by reporting segment for the three and nine-month periods ended November 30, 2018 and 2017, follows: NET REVENUES Three Months Ended November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Publishing $ 3,161,300 $ 2,439,600 $ 8,073,000 $ 6,538,700 UBAM 37,321,300 36,470,300 87,112,900 83,499,300 Total $ 40,482,600 $ 38,909,900 $ 95,185,900 $ 90,038,000 EARNINGS (LOSS) BEFORE INCOME TAXES Three Months Ended November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Publishing $ 998,800 $ 556,800 $ 2,141,800 $ 1,514,200 UBAM 6,459,800 6,916,600 15,835,800 15,866,400 Other (3,654,400 ) (4,040,600 ) (9,642,000 ) (10,282,900 ) Total $ 3,804,200 $ 3,432,800 $ 8,335,600 $ 7,097,700 |
Note 8 - FAIR VALUE MEASUREMENT
Note 8 - FAIR VALUE MEASUREMENTS | 9 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 8 The valuation hierarchy included in U.S. GAAP considers the transparency of inputs used to value assets and liabilities as of the measurement date. A financial instrument’s classification within the valuation hierarchy is based on the lowest level of input that is significant to its fair value measurement. The three levels of the valuation hierarchy and the classification of our financial assets and liabilities within the hierarchy are as follows: 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 $0 at November 30 and February 28, 2018. The estimated fair value of our term notes payable is estimated by management to approximate $19,164,000 and $19,454,500 at November 30 and February 28, 2018, respectively. 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 9 - DEFERRED REVENUES
Note 9 - DEFERRED REVENUES | 9 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 9 As of the end of our third quarter, we had received approximately $1,057,300 in payments for sales orders which were, or will be, shipped out subsequent to the quarter end. As of November 30, 2018, these prepaid sales orders are included in deferred revenues on the condensed balance sheet. |
Note 10 - REVENUE RECOGNITION
Note 10 - REVENUE RECOGNITION | 9 Months Ended |
Nov. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 10 Revenue is derived from the sales of children’s books and related products which are generally capable of being distinct and accounted for as a single performance obligation to deliver tangible goods. Substantially all of our books are sold to end consumers and publishing retail outlets. Accordingly, revenues are recognized at shipping point, which is the point in time the customer obtains control of the products. Shipping and handling fees are recorded as operating and selling expenses when the product is shipped and revenue is recognized. The Company estimates product returns based on historical return rates. The majority of the Company's contracts have a single performance obligation and are short term in nature. Sales taxes, that are collected from customers and remitted to governmental authorities, are accounted for on a net basis and therefore are excluded from net sales. Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On March 1, 2018, the Company adopted Topic 606, as prescribed by the FASB, using the full retrospective method. Results for all reporting periods are presented under Topic 606. There was no change to net earnings or retained earnings due to the adoption of Topic 606, with the impact primarily related to the recording of our hostess award program in gross sales and discounts and allowances, as opposed to recording the net costs in operating and selling expenses. Disaggregation of Revenue Please refer to Note 7 – Business Segments for revenue by segment. Arrangements with Multiple Performance Obligations Certain contracts associated with the hostess awards program include sales incentives, such as discounted or free products. These incentives provide a separate performance obligation in the contract and material right to the customer. The transaction price is allocated to the material right based on its relative standalone selling price and is recognized in revenue as the performance obligations are satisfied, which occurs at shipping point or at the expiration of the material right. As our sales incentives are delivered with the associated products ordered, there is no deferral required. Revenue allocated to the material right are recognized in gross sales, discounts and allowances and cost of goods sold in our condensed statement of earnings. Practical Expedients and Exemptions The Company generally expenses sales commissions when incurred. These costs are recorded within operating expenses. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Impact on Financial Statements As a result of applying Topic 606, the impact to the Company’s condensed consolidated balance sheet as of February 28, 2018 was as follows: Without As Reported Adjustments Adoption ASSETS Accounts receivable-Net $ 2,913,700 $ (99,900 ) $ 2,813,800 Inventories-Net 26,618,600 (100 ) 26,618,500 Prepaid expenses and other assets 1,259,000 (117,000 ) 1,142,000 Total current assets 33,514,600 (217,000 ) 33,297,600 TOTAL ASSETS 61,837,900 (217,000 ) 61,620,900 LIABILITIES Other current liabilities 3,517,900 (217,000 ) 3,300,900 Total liabilities 41,435,800 (217,000 ) 41,218,800 As a result of applying Topic 606, the impact to the Company’s condensed statement of earnings for the three months ended November 30, 2017 was as follows: Without As Reported Adjustments Adoption GROSS SALES: $ 44,383,700 $ (2,489,100 ) $ 41,894,600 Less discounts and allowances (9,249,500 ) 2,487,200 (6,762,300 ) Transportation revenue 3,775,700 - 3,775,700 NET REVENUES 38,909,900 (1,900 ) 38,908,000 COST OF GOODS SOLD 12,211,700 (1,716,900 ) 10,494,800 Gross margin 26,698,200 1,715,000 28,413,200 OPERATING EXPENSE: Operating and selling 6,121,100 1,716,200 7,837,300 Sales commissions 12,510,400 - 12,510,400 General and administrative 4,735,200 - 4,735,200 Total operating expenses 23,366,700 1,716,200 25,082,900 INTEREST EXPENSE 287,600 - 287,600 OTHER INCOME (388,900 ) (1,200 ) (390,100 ) EARNINGS BEFORE INCOME TAXES 3,432,800 - 3,432,800 INCOME TAXES 1,304,400 - 1,304,400 NET EARNINGS $ 2,128,400 $ - $ 2,128,400 As a result of applying Topic 606, the impact to the Company’s operating results by reporting segment for the three months ended November 30, 2017 was as follows: UBAM Without As Reported Adjustments Adoption GROSS SALES: $ 39,250,800 $ (2,489,100 ) $ 36,761,700 Less discounts and allowances (6,546,200 ) 2,487,200 (4,059,000 ) Transportation revenue 3,765,700 - 3,765,700 NET REVENUES 36,470,300 (1,900 ) 36,468,400 COST OF GOODS SOLD 10,831,100 (1,716,900 ) 9,114,200 Gross margin 25,639,200 1,715,000 27,354,200 OPERATING EXPENSE: Operating and selling 5,144,000 1,716,200 6,860,200 Sales commissions 12,420,000 - 12,420,000 General and administrative 1,158,600 - 1,158,600 Total operating expenses 18,722,600 1,716,200 20,438,800 OPERATING INCOME $ 6,916,600 $ (1,200 ) $ 6,915,400 Publishing Without As Reported Adjustments Adoption GROSS SALES: $ 5,132,900 $ - $ 5,132,900 Less discounts and allowances (2,703,300 ) - (2,703,300 ) Transportation revenue 10,000 - 10,000 NET REVENUES 2,439,600 - 2,439,600 COST OF GOODS SOLD 1,380,600 - 1,380,600 Gross margin 1,059,000 - 1,059,000 OPERATING EXPENSE: Operating and selling 337,800 - 337,800 Sales commissions 90,400 - 90,400 General and administrative 74,000 - 74,000 Total operating expenses 502,200 - 502,200 OPERATING INCOME $ 556,800 $ - $ 556,800 As a result of applying Topic 606, the impact to the Company’s condensed statement of earnings for the nine months ended November 30, 2017 was as follows: Without As Reported Adjustments Adoption GROSS SALES: $ 109,395,400 $ (8,405,900 ) $ 100,989,500 Less discounts and allowances (28,317,300 ) 8,388,000 (19,929,300 ) Transportation revenue 8,959,900 - 8,959,900 NET REVENUES 90,038,000 (17,900 ) 90,020,100 COST OF GOODS SOLD 28,460,800 (3,881,600 ) 24,579,200 Gross margin 61,577,200 3,863,700 65,440,900 OPERATING EXPENSE: Operating and selling 13,684,200 3,865,700 17,549,900 Sales commissions 28,759,300 - 28,759,300 General and administrative 12,359,600 - 12,359,600 Total operating expenses 54,803,100 3,865,700 58,668,800 INTEREST EXPENSE 863,800 - 863,800 OTHER INCOME (1,187,400 ) (2,000 ) (1,189,400 ) EARNINGS BEFORE INCOME TAXES 7,097,700 - 7,097,700 INCOME TAXES 2,707,100 - 2,707,100 NET EARNINGS $ 4,390,600 $ - $ 4,390,600 As a result of applying Topic 606, the impact to the Company’s operating results by reporting segment for the nine months ended November 30, 2017 was as follows: UBAM Without As Reported Adjustments Adoption GROSS SALES: $ 95,549,800 $ (8,406,600 ) $ 87,143,200 Less discounts and allowances (20,984,000 ) 8,388,700 (12,595,300 ) Transportation revenue 8,933,500 - 8,933,500 NET REVENUES 83,499,300 (17,900 ) 83,481,400 COST OF GOODS SOLD 24,821,100 (3,881,600 ) 20,939,500 Gross margin 58,678,200 3,863,700 62,541,900 OPERATING EXPENSE: Operating and selling 10,887,200 3,864,900 14,752,100 Sales commissions 28,507,800 - 28,507,800 General and administrative 3,416,800 - 3,416,800 Total operating expenses 42,811,800 3,864,900 46,676,700 OPERATING INCOME $ 15,866,400 $ (1,200 ) $ 15,865,200 Publishing Without As Reported Adjustments Adoption GROSS SALES: $ 13,845,600 $ 700 $ 13,846,300 Less discounts and allowances (7,333,300 ) (700 ) (7,334,000 ) Transportation revenue 26,400 - 26,400 NET REVENUES 6,538,700 - 6,538,700 COST OF GOODS SOLD 3,639,700 - 3,639,700 Gross margin 2,899,000 - 2,899,000 OPERATING EXPENSE: Operating and selling 876,800 - 876,800 Sales commissions 249,500 - 249,500 General and administrative 258,500 - 258,500 Total operating expenses 1,384,800 - 1,384,800 OPERATING INCOME $ 1,514,200 $ - $ 1,514,200 |
Note 11 - SUBSEQUENT EVENT
Note 11 - SUBSEQUENT EVENT | 9 Months Ended |
Nov. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 11 On January 10, 2019, our board of directors declared a distribution of $0.05 per share of common stock. This cash distribution will be paid on or about March 12, 2019 to shareholders of record on February 21, 2019. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Nov. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying Unaudited Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim condensed financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. The Unaudited Condensed Financial Statements include all adjustments considered necessary for a fair presentation of the financial position and results of operations for the interim periods presented. Such adjustments consist only of normal recurring items, unless otherwise disclosed herein. Accordingly, the Unaudited Condensed Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. However, we believe that the disclosures made are adequate to make the information not misleading. These interim Unaudited Condensed Financial Statements should be read in conjunction with our audited financial statements as of and for the year ended February 28, 2018 included in our Form 10-K. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year due to the seasonality of our product sales. On July 24, 2018, our Board of Directors authorized a two-for-one stock split in the form of a stock dividend. The stock dividend was distributed on August 22, 2018 to shareholders of record as of August 14, 2018. All share-based data, including the number of shares outstanding and per share amounts, have been retroactively adjusted to reflect the stock split for all periods presented. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain reclassifications have been made to the fiscal 2018 condensed balance sheet, condensed statement of earnings and condensed statement of cash flows to conform to the classifications used in fiscal 2019. These reclassifications had no effect on net earnings. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates in the Preparation of Financial Statements The preparation of the Unaudited Condensed Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued accounting standards updates (“ASU”) and concluded that the following recently issued accounting standards apply to us. In May 2014, FASB issued ASU No. 2014-09, and amended with ASU No. 2015-14 “Revenue from Contracts with Customers,” (Topic 606) 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. The amendments in this series of updates shall be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company adopted Topic 606, Revenue from Contracts with Customers, with a date of initial application of March 1, 2018, using the full retrospective method applied to all contracts. Results for all reporting periods are presented under Topic 606. As a result of adopting this new accounting guidance, the Company has changed the method of accounting for its hostess awards program from reporting the net cost of these awards in operating and selling expenses to allocating a portion of the transaction price to the material right and reporting these in gross sales and discounts with the associated costs in cost of goods sold. The new reporting of these awards increases gross sales and increases discounts and allowances for a similar amount, having an immaterial effect on net revenues and no effect on net earnings or retained earnings, but lowering the Company’s gross margin percentage. The Company has also removed the allowance for sales returns from the net accounts receivable amount reported on the balance sheet. The allowance for sales returns has been adjusted to reflect a refund liability and a return asset. The cumulative impact of adoption of the new revenue recognition standard had no impact on net earnings and retained earnings (See Note 10). 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 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 June 2016, FASB issued ASU No. 2016-13 “Financial Instruments—Credit Losses”, which requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which means the first quarter of our fiscal year 2020. We anticipate this ASU to have minimal impact on our financial statements. In August 2016, FASB issued ASU No. 2016-15 “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments.” The guidance’s objective is to reduce diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standards required date of adoption is effective for fiscal years beginning after December 15, 2017. This standard was adopted as of March 1, 2018. Adoption of this new standard did not have a material impact on our financial statements. In May 2017, FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” This update amends the scope of modification accounting surrounding share-based payment arrangements as issued in ASU 2016-09 by providing guidance on the various types of changes which would trigger modification accounting for share-based payment awards. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The new standard is required to be applied prospectively. The guidance was effective March 1, 2018, and the adoption of this ASU did not have a material impact on our financial statements. |
Note 2 - INVENTORIES (Tables)
Note 2 - INVENTORIES (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory [Table Text Block] | Inventories consist of the following: 2018 November 30, February 28, Current: Book inventory $ 30,905,100 $ 27,078,600 Inventory valuation allowance (259,100 ) (460,000 ) Inventories net - current $ 30,646,000 $ 26,618,600 Noncurrent: Book inventory $ 1,021,400 $ 707,700 Inventory valuation allowance (417,400 ) (271,800 ) Inventories net - noncurrent $ 604,000 $ 435,900 |
Note 3 - DEBT (Tables)
Note 3 - DEBT (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt consists of the following: 2018 November 30, February 28, Line of credit $ - $ - Long-term debt $ 20,004,100 $ 20,706,300 Less current maturities (928,100 ) (881,200 ) Long-term debt, net of current maturities $ 19,076,000 $ 19,825,100 |
Schedule of Long-term Debt Instruments [Table Text Block] | The Tranche B, the line of credit and the Term Loan #2 accrue interest at a tiered rate based on our Adjusted Funded Debt to EBITDA Ratio, which is payable monthly. The variable interest pricing tier is as follows: Pricing Tier Adjusted Funded Debt to EBITDA Ratio LIBOR Margin (bps) I >2.00 325.00 II >1.50 but < 300.00 III >1.00 but <1 275.00 IV < 250.00 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table reflects aggregate future maturities of long-term debt during the next five fiscal years and thereafter as follows: Year ending February 28 (29), 2019 $ 222,500 2020 943,700 2021 985,400 2022 1,033,900 2023 1,082,300 Thereafter 15,736,300 Total $ 20,004,100 |
Note 4 - EARNINGS PER SHARE (Ta
Note 4 - EARNINGS PER SHARE (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
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. Three Months Ended November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Earnings per share: Net earnings applicable to common shareholders $ 2,815,600 $ 2,128,400 $ 6,122,900 $ 4,390,600 Shares: Weighted average shares outstanding-basic 8,194,072 8,174,536 8,185,561 8,175,372 Assumed exercise of options 7,704 5,486 7,645 4,734 Weighted average shares outstanding-diluted 8,201,776 8,180,022 8,193,206 8,180,106 Diluted earnings per share: Basic $ 0.34 $ 0.26 $ 0.75 $ 0.54 Diluted $ 0.34 $ 0.26 $ 0.75 $ 0.54 |
Note 5 - STOCK-BASED COMPENSA_2
Note 5 - STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | A summary of compensation expense recognized in connection with restricted share awards follows: Three Months Ended November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Share-based compensation expense $ 185,300 $ - $ 255,300 $ - |
Note 7 - BUSINESS SEGMENTS (Tab
Note 7 - BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information by reporting segment for the three and nine-month periods ended November 30, 2018 and 2017, follows: NET REVENUES Three Months Ended November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Publishing $ 3,161,300 $ 2,439,600 $ 8,073,000 $ 6,538,700 UBAM 37,321,300 36,470,300 87,112,900 83,499,300 Total $ 40,482,600 $ 38,909,900 $ 95,185,900 $ 90,038,000 EARNINGS (LOSS) BEFORE INCOME TAXES Three Months Ended November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Publishing $ 998,800 $ 556,800 $ 2,141,800 $ 1,514,200 UBAM 6,459,800 6,916,600 15,835,800 15,866,400 Other (3,654,400 ) (4,040,600 ) (9,642,000 ) (10,282,900 ) Total $ 3,804,200 $ 3,432,800 $ 8,335,600 $ 7,097,700 |
Note 10 - REVENUE RECOGNITION (
Note 10 - REVENUE RECOGNITION (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Without As Reported Adjustments Adoption ASSETS Accounts receivable-Net $ 2,913,700 $ (99,900 ) $ 2,813,800 Inventories-Net 26,618,600 (100 ) 26,618,500 Prepaid expenses and other assets 1,259,000 (117,000 ) 1,142,000 Total current assets 33,514,600 (217,000 ) 33,297,600 TOTAL ASSETS 61,837,900 (217,000 ) 61,620,900 LIABILITIES Other current liabilities 3,517,900 (217,000 ) 3,300,900 Total liabilities 41,435,800 (217,000 ) 41,218,800 Without As Reported Adjustments Adoption GROSS SALES: $ 44,383,700 $ (2,489,100 ) $ 41,894,600 Less discounts and allowances (9,249,500 ) 2,487,200 (6,762,300 ) Transportation revenue 3,775,700 - 3,775,700 NET REVENUES 38,909,900 (1,900 ) 38,908,000 COST OF GOODS SOLD 12,211,700 (1,716,900 ) 10,494,800 Gross margin 26,698,200 1,715,000 28,413,200 OPERATING EXPENSE: Operating and selling 6,121,100 1,716,200 7,837,300 Sales commissions 12,510,400 - 12,510,400 General and administrative 4,735,200 - 4,735,200 Total operating expenses 23,366,700 1,716,200 25,082,900 INTEREST EXPENSE 287,600 - 287,600 OTHER INCOME (388,900 ) (1,200 ) (390,100 ) EARNINGS BEFORE INCOME TAXES 3,432,800 - 3,432,800 INCOME TAXES 1,304,400 - 1,304,400 NET EARNINGS $ 2,128,400 $ - $ 2,128,400 Without As Reported Adjustments Adoption GROSS SALES: $ 109,395,400 $ (8,405,900 ) $ 100,989,500 Less discounts and allowances (28,317,300 ) 8,388,000 (19,929,300 ) Transportation revenue 8,959,900 - 8,959,900 NET REVENUES 90,038,000 (17,900 ) 90,020,100 COST OF GOODS SOLD 28,460,800 (3,881,600 ) 24,579,200 Gross margin 61,577,200 3,863,700 65,440,900 OPERATING EXPENSE: Operating and selling 13,684,200 3,865,700 17,549,900 Sales commissions 28,759,300 - 28,759,300 General and administrative 12,359,600 - 12,359,600 Total operating expenses 54,803,100 3,865,700 58,668,800 INTEREST EXPENSE 863,800 - 863,800 OTHER INCOME (1,187,400 ) (2,000 ) (1,189,400 ) EARNINGS BEFORE INCOME TAXES 7,097,700 - 7,097,700 INCOME TAXES 2,707,100 - 2,707,100 NET EARNINGS $ 4,390,600 $ - $ 4,390,600 |
Disaggregation of Revenue [Table Text Block] | Without As Reported Adjustments Adoption GROSS SALES: $ 39,250,800 $ (2,489,100 ) $ 36,761,700 Less discounts and allowances (6,546,200 ) 2,487,200 (4,059,000 ) Transportation revenue 3,765,700 - 3,765,700 NET REVENUES 36,470,300 (1,900 ) 36,468,400 COST OF GOODS SOLD 10,831,100 (1,716,900 ) 9,114,200 Gross margin 25,639,200 1,715,000 27,354,200 OPERATING EXPENSE: Operating and selling 5,144,000 1,716,200 6,860,200 Sales commissions 12,420,000 - 12,420,000 General and administrative 1,158,600 - 1,158,600 Total operating expenses 18,722,600 1,716,200 20,438,800 OPERATING INCOME $ 6,916,600 $ (1,200 ) $ 6,915,400 Without As Reported Adjustments Adoption GROSS SALES: $ 5,132,900 $ - $ 5,132,900 Less discounts and allowances (2,703,300 ) - (2,703,300 ) Transportation revenue 10,000 - 10,000 NET REVENUES 2,439,600 - 2,439,600 COST OF GOODS SOLD 1,380,600 - 1,380,600 Gross margin 1,059,000 - 1,059,000 OPERATING EXPENSE: Operating and selling 337,800 - 337,800 Sales commissions 90,400 - 90,400 General and administrative 74,000 - 74,000 Total operating expenses 502,200 - 502,200 OPERATING INCOME $ 556,800 $ - $ 556,800 Without As Reported Adjustments Adoption GROSS SALES: $ 95,549,800 $ (8,406,600 ) $ 87,143,200 Less discounts and allowances (20,984,000 ) 8,388,700 (12,595,300 ) Transportation revenue 8,933,500 - 8,933,500 NET REVENUES 83,499,300 (17,900 ) 83,481,400 COST OF GOODS SOLD 24,821,100 (3,881,600 ) 20,939,500 Gross margin 58,678,200 3,863,700 62,541,900 OPERATING EXPENSE: Operating and selling 10,887,200 3,864,900 14,752,100 Sales commissions 28,507,800 - 28,507,800 General and administrative 3,416,800 - 3,416,800 Total operating expenses 42,811,800 3,864,900 46,676,700 OPERATING INCOME $ 15,866,400 $ (1,200 ) $ 15,865,200 Without As Reported Adjustments Adoption GROSS SALES: $ 13,845,600 $ 700 $ 13,846,300 Less discounts and allowances (7,333,300 ) (700 ) (7,334,000 ) Transportation revenue 26,400 - 26,400 NET REVENUES 6,538,700 - 6,538,700 COST OF GOODS SOLD 3,639,700 - 3,639,700 Gross margin 2,899,000 - 2,899,000 OPERATING EXPENSE: Operating and selling 876,800 - 876,800 Sales commissions 249,500 - 249,500 General and administrative 258,500 - 258,500 Total operating expenses 1,384,800 - 1,384,800 OPERATING INCOME $ 1,514,200 $ - $ 1,514,200 |
Note 1 - BASIS OF PRESENTATIO_2
Note 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jul. 24, 2018 |
Disclosure Text Block [Abstract] | |
Stockholders' Equity Note, Stock Split | two-for-one |
Note 2 - INVENTORIES (Details)
Note 2 - INVENTORIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Note 2 - INVENTORIES (Details) [Line Items] | ||||
Payments for Purchase of Other Assets | $ 10.1 | $ 10.9 | $ 31.7 | $ 27.5 |
England Based Publishing Company [Member] | ||||
Note 2 - INVENTORIES (Details) [Line Items] | ||||
Payments for Purchase of Other Assets | $ 8 | $ 6.9 | $ 23.5 | $ 18.2 |
Note 2 - INVENTORIES (Details)
Note 2 - INVENTORIES (Details) - Schedule of Inventory - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
Inventory, Current [Member] | ||
Note 2 - INVENTORIES (Details) - Schedule of Inventory [Line Items] | ||
Book inventory | $ 30,905,100 | $ 27,078,600 |
Inventory valuation allowance | (259,100) | (460,000) |
Inventories net–current | 30,646,000 | 26,618,600 |
Inventory, Noncurrent [Member] | ||
Note 2 - INVENTORIES (Details) - Schedule of Inventory [Line Items] | ||
Book inventory | 1,021,400 | 707,700 |
Inventory valuation allowance | (417,400) | (271,800) |
Inventories net–non-current | $ 604,000 | $ 435,900 |
Note 3 - DEBT (Details)
Note 3 - DEBT (Details) - USD ($) | Mar. 10, 2016 | Nov. 30, 2018 | Jun. 15, 2018 | Feb. 28, 2018 |
Note 3 - DEBT (Details) [Line Items] | ||||
Line of Credit, Current | $ 0 | $ 0 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 10,600,400 | $ 9,424,000 | ||
Term Loan #2 [Member] | Line of Credit [Member] | ||||
Note 3 - DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15,000,000 | |||
Line of Credit Facility, Expiration Date | Aug. 15, 2019 | |||
Debt Instrument, Payment Terms | interest payable monthly | |||
Debt Instrument, Interest Rate Terms | bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio | |||
Line of Credit Facility, Interest Rate at Period End | 4.84% | |||
Notes Payable to Banks [Member] | Term Loan #1, Tranche A [Member] | ||||
Note 3 - DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 13,400,000 | |||
Line of Credit Facility, Expiration Date | Dec. 1, 2025 | |||
Notes Payable to Banks [Member] | Term Loan #1, Tranche B [Member] | ||||
Note 3 - DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||
Debt Instrument, Payment Terms | interest is payable monthly | |||
Debt Instrument, Interest Rate Terms | bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio | |||
Line of Credit Facility, Interest Rate at Period End | 4.84% | |||
Notes Payable to Banks [Member] | Term Loan #2 [Member] | ||||
Note 3 - DEBT (Details) [Line Items] | ||||
Debt Instrument, Payment Terms | interest payable monthly | |||
Debt Instrument, Interest Rate Terms | bank adjusted LIBOR Index plus a tiered pricing rate based on the Company’s Adjusted Funded Debt to EBITDA Ratio | |||
Debt Instrument, Face Amount | $ 4,000,000 | |||
Debt Instrument, Maturity Date | Jun. 28, 2021 | |||
Debt Instrument, Interest Rate During Period | 4.84% | |||
Notes Payable to Banks [Member] | Term Loan #1, Tranche C [Member] | ||||
Note 3 - DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | |||
Medium-term Notes [Member] | Term Loan #1, Tranche A [Member] | ||||
Note 3 - DEBT (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.23% |
Note 3 - DEBT (Details) - Sched
Note 3 - DEBT (Details) - Schedule of Debt - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
Schedule of Debt [Abstract] | ||
Line of credit | $ 0 | $ 0 |
Long-term debt | 20,004,100 | 20,706,300 |
Less current maturities | (928,100) | (881,200) |
Long-term debt, net of current maturities | $ 19,076,000 | $ 19,825,100 |
Note 3 - DEBT (Details) - Sch_2
Note 3 - DEBT (Details) - Schedule of Long-term Debt Instruments | 9 Months Ended |
Nov. 30, 2018 | |
Pricing Tier I [Member] | |
Debt Instrument [Line Items] | |
Adjusted Funded Debt to EBITDA Ratio | >2.00 |
Pricing Teir II [Member] | |
Debt Instrument [Line Items] | |
Adjusted Funded Debt to EBITDA Ratio | >1.50 but <2.00 |
Pricing Tier III [Member] | |
Debt Instrument [Line Items] | |
Adjusted Funded Debt to EBITDA Ratio | >1.00 but <1.50 |
Pricing Tier IV [Member] | |
Debt Instrument [Line Items] | |
Adjusted Funded Debt to EBITDA Ratio | <1.00 |
London Interbank Offered Rate (LIBOR) [Member] | Pricing Tier I [Member] | |
Debt Instrument [Line Items] | |
LIBOR Margin | 325.00% |
London Interbank Offered Rate (LIBOR) [Member] | Pricing Teir II [Member] | |
Debt Instrument [Line Items] | |
LIBOR Margin | 300.00% |
London Interbank Offered Rate (LIBOR) [Member] | Pricing Tier III [Member] | |
Debt Instrument [Line Items] | |
LIBOR Margin | 275.00% |
London Interbank Offered Rate (LIBOR) [Member] | Pricing Tier IV [Member] | |
Debt Instrument [Line Items] | |
LIBOR Margin | 250.00% |
Note 3 - DEBT (Details) - Sch_3
Note 3 - DEBT (Details) - Schedule of Maturities of Long-term Debt - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
Schedule of Maturities of Long-term Debt [Abstract] | ||
2,019 | $ 222,500 | |
2,020 | 943,700 | |
2,021 | 985,400 | |
2,022 | 1,033,900 | |
2,023 | 1,082,300 | |
Thereafter | 15,736,300 | |
Total | $ 20,004,100 | $ 20,706,300 |
Note 4 - EARNINGS PER SHARE (D
Note 4 - EARNINGS PER SHARE (Details) - Schedule of Earnings Per Share - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Earnings per share: | ||||
Net earnings applicable to common shareholders (in Dollars) | $ 2,815,600 | $ 2,128,400 | $ 6,122,900 | $ 4,390,600 |
Shares: | ||||
Weighted average shares outstanding-basic | 8,194,072 | 8,174,536 | 8,185,561 | 8,175,372 |
Assumed exercise of options | 7,704 | 5,486 | 7,645 | 4,734 |
Weighted average shares outstanding-diluted | 8,201,776 | 8,180,022 | 8,193,206 | 8,180,106 |
Diluted earnings per share: | ||||
Basic (in Dollars per share) | $ 0.34 | $ 0.26 | $ 0.75 | $ 0.54 |
Diluted (in Dollars per share) | $ 0.34 | $ 0.26 | $ 0.75 | $ 0.54 |
Note 5 - STOCK-BASED COMPENSA_3
Note 5 - STOCK-BASED COMPENSATION (Details) - USD ($) | Oct. 25, 2018 | Jul. 24, 2018 | Nov. 30, 2018 |
2002 Employee Incentive Stock Option Plan [Member] | |||
Note 5 - STOCK-BASED COMPENSATION (Details) [Line Items] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 10,000 | ||
2019 Long-Term Incentive Plan [Member] | |||
Note 5 - STOCK-BASED COMPENSATION (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 600,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 80,000 | 240,000 | 80,000 |
Shares Issued, Price Per Share (in Dollars per share) | $ 11.24 | $ 9.57 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | $ 2,950,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 51 months |
Note 5 - STOCK-BASED COMPENSA_4
Note 5 - STOCK-BASED COMPENSATION (Details) - Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Abstract] | ||||
Share-based compensation expense | $ 185,300 | $ 0 | $ 255,300 | $ 0 |
Note 6 - SHIPPING AND HANDLIN_2
Note 6 - SHIPPING AND HANDLING COSTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Shipping and Handling [Member] | ||||
Note 6 - SHIPPING AND HANDLING COSTS (Details) [Line Items] | ||||
Cost of Goods and Services Sold | $ 5,897,500 | $ 5,328,900 | $ 13,556,400 | $ 12,200,100 |
Note 7 - BUSINESS SEGMENTS (Det
Note 7 - BUSINESS SEGMENTS (Details) | 9 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note 7 - BUSINESS SEGMENTS (D_2
Note 7 - BUSINESS SEGMENTS (Details) - Schedule of Information by Industry Segment - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net Revenues | $ 40,482,600 | $ 38,909,900 | $ 95,185,900 | $ 90,038,000 |
Earnings (Loss) Before Income Taxes | 3,804,200 | 3,432,800 | 8,335,600 | 7,097,700 |
Publishing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 3,161,300 | 2,439,600 | 8,073,000 | 6,538,700 |
Earnings (Loss) Before Income Taxes | 998,800 | 556,800 | 2,141,800 | 1,514,200 |
Usborne Books and More [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Revenues | 37,321,300 | 36,470,300 | 87,112,900 | 83,499,300 |
Earnings (Loss) Before Income Taxes | 6,459,800 | 6,916,600 | 15,835,800 | 15,866,400 |
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Earnings (Loss) Before Income Taxes | $ (3,654,400) | $ (4,040,600) | $ (9,642,000) | $ (10,282,900) |
Note 8 - FAIR VALUE MEASUREME_2
Note 8 - FAIR VALUE MEASUREMENTS (Details) - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
Note 8 - FAIR VALUE MEASUREMENTS (Details) [Line Items] | ||
Lines of Credit, Fair Value Disclosure | $ 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Note 8 - FAIR VALUE MEASUREMENTS (Details) [Line Items] | ||
Lines of Credit, Fair Value Disclosure | $ 0 | |
Long-term Debt, Fair Value | $ 19,164,000 | $ 19,454,500 |
Note 9 - DEFERRED REVENUES (Det
Note 9 - DEFERRED REVENUES (Details) | 9 Months Ended |
Nov. 30, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Deferred Revenue, Additions | $ 1,057,300 |
Note 10 - REVENUE RECOGNITION_2
Note 10 - REVENUE RECOGNITION (Details) - Schedule of New Accounting Pronouncements and Changes in Accounting Principles - USD ($) | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Feb. 28, 2018 | |
ASSETS | |||||
Accounts receivable—Net | $ 3,550,200 | $ 3,550,200 | $ 2,913,700 | ||
Inventories—Net | 30,646,000 | 30,646,000 | 26,618,600 | ||
Prepaid expenses and other assets | 1,583,400 | 1,583,400 | 1,259,000 | ||
Total current assets | 43,620,100 | 43,620,100 | 33,514,600 | ||
TOTAL ASSETS | 71,747,400 | 71,747,400 | 61,837,900 | ||
LIABILITIES | |||||
Other current liabilities | 4,116,100 | 4,116,100 | 3,517,900 | ||
Total liabilities | 45,999,700 | 45,999,700 | 41,435,800 | ||
REVENUES | 40,482,600 | $ 38,909,900 | 95,185,900 | $ 90,038,000 | |
COST OF GOODS SOLD | 13,141,600 | 12,211,700 | 31,274,000 | 28,460,800 | |
Gross margin | 27,341,000 | 26,698,200 | 63,911,900 | 61,577,200 | |
OPERATING EXPENSE: | |||||
Operating and selling | 6,540,600 | 6,121,100 | 14,554,400 | 13,684,200 | |
Sales commissions | 12,689,200 | 12,510,400 | 29,375,300 | 28,759,300 | |
General and administrative | 4,476,000 | 4,735,200 | 12,106,900 | 12,359,600 | |
Total operating expenses | 23,705,800 | 23,366,700 | 56,036,600 | 54,803,100 | |
INTEREST EXPENSE | 228,600 | 287,600 | 712,000 | 863,800 | |
OTHER INCOME | (397,600) | (388,900) | (1,172,300) | (1,187,400) | |
EARNINGS BEFORE INCOME TAXES | 3,804,200 | 3,432,800 | 8,335,600 | 7,097,700 | |
INCOME TAXES | 988,600 | 1,304,400 | 2,212,700 | 2,707,100 | |
NET EARNINGS | 2,815,600 | 2,128,400 | 6,122,900 | 4,390,600 | |
Topic 606 [Member] | |||||
ASSETS | |||||
Accounts receivable—Net | (99,900) | ||||
Inventories—Net | (100) | ||||
Prepaid expenses and other assets | (117,000) | ||||
Total current assets | (217,000) | ||||
TOTAL ASSETS | (217,000) | ||||
LIABILITIES | |||||
Other current liabilities | (217,000) | ||||
Total liabilities | (217,000) | ||||
REVENUES | (1,900) | (17,900) | |||
COST OF GOODS SOLD | (1,716,900) | (3,881,600) | |||
Gross margin | 1,715,000 | 3,863,700 | |||
OPERATING EXPENSE: | |||||
Operating and selling | 1,716,200 | 3,865,700 | |||
Sales commissions | 0 | 0 | |||
General and administrative | 0 | 0 | |||
Total operating expenses | 1,716,200 | 3,865,700 | |||
INTEREST EXPENSE | 0 | 0 | |||
OTHER INCOME | (1,200) | (2,000) | |||
EARNINGS BEFORE INCOME TAXES | 0 | 0 | |||
INCOME TAXES | 0 | 0 | |||
NET EARNINGS | 0 | 0 | |||
Without Adoption [Member] | |||||
ASSETS | |||||
Accounts receivable—Net | 2,813,800 | ||||
Inventories—Net | 26,618,500 | ||||
Prepaid expenses and other assets | 1,142,000 | ||||
Total current assets | 33,297,600 | ||||
TOTAL ASSETS | 61,620,900 | ||||
LIABILITIES | |||||
Other current liabilities | 3,300,900 | ||||
Total liabilities | $ 41,218,800 | ||||
REVENUES | 38,908,000 | 90,020,100 | |||
COST OF GOODS SOLD | 10,494,800 | 24,579,200 | |||
Gross margin | 28,413,200 | 65,440,900 | |||
OPERATING EXPENSE: | |||||
Operating and selling | 7,837,300 | 17,549,900 | |||
Sales commissions | 12,510,400 | 28,759,300 | |||
General and administrative | 4,735,200 | 12,359,600 | |||
Total operating expenses | 25,082,900 | 58,668,800 | |||
INTEREST EXPENSE | 287,600 | 863,800 | |||
OTHER INCOME | (390,100) | (1,189,400) | |||
EARNINGS BEFORE INCOME TAXES | 3,432,800 | 7,097,700 | |||
INCOME TAXES | 1,304,400 | 2,707,100 | |||
NET EARNINGS | 2,128,400 | 4,390,600 | |||
Gross revenue [Member] | |||||
LIABILITIES | |||||
REVENUES | 53,486,000 | 44,383,700 | 125,574,400 | 109,395,400 | |
Gross revenue [Member] | Topic 606 [Member] | |||||
LIABILITIES | |||||
REVENUES | (2,489,100) | (8,405,900) | |||
Gross revenue [Member] | Without Adoption [Member] | |||||
LIABILITIES | |||||
REVENUES | 41,894,600 | 100,989,500 | |||
Discounts and Allowances [Member] | |||||
LIABILITIES | |||||
REVENUES | (16,572,600) | (9,249,500) | (38,918,700) | (28,317,300) | |
Discounts and Allowances [Member] | Topic 606 [Member] | |||||
LIABILITIES | |||||
REVENUES | 2,487,200 | 8,388,000 | |||
Discounts and Allowances [Member] | Without Adoption [Member] | |||||
LIABILITIES | |||||
REVENUES | (6,762,300) | (19,929,300) | |||
Transportation Revenue [Member] | |||||
LIABILITIES | |||||
REVENUES | $ 3,569,200 | 3,775,700 | $ 8,530,200 | 8,959,900 | |
Transportation Revenue [Member] | Topic 606 [Member] | |||||
LIABILITIES | |||||
REVENUES | 0 | 0 | |||
Transportation Revenue [Member] | Without Adoption [Member] | |||||
LIABILITIES | |||||
REVENUES | $ 3,775,700 | $ 8,959,900 |
Note 10 - REVENUE RECOGNITION_3
Note 10 - REVENUE RECOGNITION (Details) - Disaggregation of Revenue - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
UBAM [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 36,470,300 | $ 83,499,300 | ||
COST OF GOODS SOLD | 10,831,100 | 24,821,100 | ||
Gross margin | 25,639,200 | 58,678,200 | ||
OPERATING EXPENSE: | ||||
Operating and selling | 5,144,000 | 10,887,200 | ||
Sales commissions | 12,420,000 | 28,507,800 | ||
General and administrative | 1,158,600 | 3,416,800 | ||
Total operating expenses | 18,722,600 | 42,811,800 | ||
OPERATING INCOME | 6,916,600 | 15,866,400 | ||
UBAM [Member] | Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (1,900) | (17,900) | ||
COST OF GOODS SOLD | (1,716,900) | (3,881,600) | ||
Gross margin | 1,715,000 | 3,863,700 | ||
OPERATING EXPENSE: | ||||
Operating and selling | 1,716,200 | 3,864,900 | ||
Sales commissions | 0 | 0 | ||
General and administrative | 0 | 0 | ||
Total operating expenses | 1,716,200 | 3,864,900 | ||
OPERATING INCOME | (1,200) | (1,200) | ||
UBAM [Member] | Without Adoption [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,468,400 | 83,481,400 | ||
COST OF GOODS SOLD | 9,114,200 | 20,939,500 | ||
Gross margin | 27,354,200 | 62,541,900 | ||
OPERATING EXPENSE: | ||||
Operating and selling | 6,860,200 | 14,752,100 | ||
Sales commissions | 12,420,000 | 28,507,800 | ||
General and administrative | 1,158,600 | 3,416,800 | ||
Total operating expenses | 20,438,800 | 46,676,700 | ||
OPERATING INCOME | 6,915,400 | 15,865,200 | ||
Publishing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 3,161,300 | 2,439,600 | $ 8,073,000 | 6,538,700 |
COST OF GOODS SOLD | 1,380,600 | 3,639,700 | ||
Gross margin | 1,059,000 | 2,899,000 | ||
OPERATING EXPENSE: | ||||
Operating and selling | 337,800 | 876,800 | ||
Sales commissions | 90,400 | 249,500 | ||
General and administrative | 74,000 | 258,500 | ||
Total operating expenses | 502,200 | 1,384,800 | ||
OPERATING INCOME | 556,800 | 1,514,200 | ||
Publishing [Member] | Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
COST OF GOODS SOLD | 0 | 0 | ||
Gross margin | 0 | 0 | ||
OPERATING EXPENSE: | ||||
Operating and selling | 0 | 0 | ||
Sales commissions | 0 | 0 | ||
General and administrative | 0 | 0 | ||
Total operating expenses | 0 | 0 | ||
OPERATING INCOME | 0 | 0 | ||
Publishing [Member] | Without Adoption [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,439,600 | 6,538,700 | ||
COST OF GOODS SOLD | 1,380,600 | 3,639,700 | ||
Gross margin | 1,059,000 | 2,899,000 | ||
OPERATING EXPENSE: | ||||
Operating and selling | 337,800 | 876,800 | ||
Sales commissions | 90,400 | 249,500 | ||
General and administrative | 74,000 | 258,500 | ||
Total operating expenses | 502,200 | 1,384,800 | ||
OPERATING INCOME | 556,800 | 1,514,200 | ||
Gross revenue [Member] | UBAM [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 39,250,800 | 95,549,800 | ||
Gross revenue [Member] | UBAM [Member] | Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (2,489,100) | (8,406,600) | ||
Gross revenue [Member] | UBAM [Member] | Without Adoption [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36,761,700 | 87,143,200 | ||
Gross revenue [Member] | Publishing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,132,900 | 13,845,600 | ||
Gross revenue [Member] | Publishing [Member] | Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 700 | ||
Gross revenue [Member] | Publishing [Member] | Without Adoption [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,132,900 | 13,846,300 | ||
Discounts and Allowances [Member] | UBAM [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (6,546,200) | (20,984,000) | ||
Discounts and Allowances [Member] | UBAM [Member] | Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,487,200 | 8,388,700 | ||
Discounts and Allowances [Member] | UBAM [Member] | Without Adoption [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (4,059,000) | (12,595,300) | ||
Discounts and Allowances [Member] | Publishing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (2,703,300) | (7,333,300) | ||
Discounts and Allowances [Member] | Publishing [Member] | Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | (700) | ||
Discounts and Allowances [Member] | Publishing [Member] | Without Adoption [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (2,703,300) | (7,334,000) | ||
Transportation Revenue [Member] | UBAM [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,765,700 | 8,933,500 | ||
Transportation Revenue [Member] | UBAM [Member] | Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Transportation Revenue [Member] | UBAM [Member] | Without Adoption [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,765,700 | 8,933,500 | ||
Transportation Revenue [Member] | Publishing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,000 | 26,400 | ||
Transportation Revenue [Member] | Publishing [Member] | Topic 606 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Transportation Revenue [Member] | Publishing [Member] | Without Adoption [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 10,000 | $ 26,400 |
Note 11 - SUBSEQUENT EVENT (Det
Note 11 - SUBSEQUENT EVENT (Details) - Subsequent Event [Member] | Jan. 10, 2019$ / shares |
Note 11 - SUBSEQUENT EVENT (Details) [Line Items] | |
Common Stock, Dividends, Per Share, Declared | $ 0.05 |
Dividends Payable, Date to be Paid | Mar. 12, 2019 |
Dividends Payable, Date of Record | Feb. 21, 2019 |