Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Feb. 28, 2019 | May 22, 2019 | Aug. 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Educational Development Corp | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --02-28 | ||
Entity Common Stock, Shares Outstanding | 8,175,836 | ||
Entity Public Float | $ 73,291,100 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000031667 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Feb. 28, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Ex Transition Period | false |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Feb. 28, 2019 | Feb. 28, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,199,300 | $ 2,723,300 |
Accounts receivable, less allowance for doubtful accounts of $268,600 (2019) and $297,100 (2018) | 3,258,800 | 2,913,700 |
Inventories - Net | 33,445,600 | 26,618,600 |
Prepaid expenses and other assets | 1,603,500 | 1,259,000 |
Total current assets | 41,507,200 | 33,514,600 |
INVENTORIES - Net | 575,000 | 435,900 |
PROPERTY, PLANT AND EQUIPMENT - Net | 27,164,600 | 27,860,500 |
OTHER ASSETS | 19,500 | 26,900 |
TOTAL ASSETS | 69,266,300 | 61,837,900 |
CURRENT LIABILITIES: | ||
Accounts payable | 14,228,600 | 12,469,000 |
Deferred revenues | 965,600 | 693,000 |
Current maturities of long-term debt | 945,900 | 881,200 |
Accrued salaries and commissions | 2,039,000 | 2,007,900 |
Income taxes payable | 756,400 | 1,798,800 |
Dividends payable | 410,100 | 0 |
Other current liabilities | 4,177,900 | 3,517,900 |
Total current liabilities | 23,523,500 | 21,367,800 |
LONG-TERM DEBT - Net of current maturities | 18,830,700 | 19,825,100 |
DEFERRED INCOME TAXES - Net | 872,600 | 136,900 |
OTHER LONG-TERM LIABILITIES | 109,000 | 106,000 |
Total liabilities | 43,335,800 | 41,435,800 |
COMMITMENTS (Note 7) | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, $0.20 par value; Authorized 16,000,000 shares; Issued 12,092,080 shares; Outstanding 8,195,082 (2019) and 8,179,612 (2018) shares | 2,418,400 | 2,418,400 |
Capital in excess of par value | 8,975,100 | 8,573,300 |
Retained earnings | 25,754,900 | 20,714,500 |
37,148,400 | 31,706,200 | |
Less treasury stock, at cost | (11,217,900) | (11,304,100) |
Total shareholders' equity | 25,930,500 | 20,402,100 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 69,266,300 | $ 61,837,900 |
BALANCE SHEETS (Parentheticals)
BALANCE SHEETS (Parentheticals) - USD ($) | Feb. 28, 2019 | Feb. 28, 2018 |
Allowance for doubtful accounts (in Dollars) | $ 268,600 | $ 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 | 8,195,082 | 8,179,612 |
STATEMENTS OF EARNINGS
STATEMENTS OF EARNINGS - USD ($) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
NET REVENUES | $ 118,811,300 | $ 111,984,600 |
COST OF GOODS SOLD | 39,063,600 | 35,824,300 |
Gross margin | 79,747,700 | 76,160,300 |
OPERATING EXPENSES: | ||
Operating and selling | 18,550,600 | 17,694,700 |
Sales commissions | 36,480,400 | 35,359,000 |
General and administrative | 16,164,300 | 15,736,300 |
Total operating expenses | 71,195,300 | 68,790,000 |
INTEREST EXPENSE | 931,300 | 1,119,500 |
OTHER INCOME | (1,559,700) | (1,581,900) |
EARNINGS BEFORE INCOME TAXES | 9,180,800 | 7,832,700 |
INCOME TAXES | 2,502,400 | 2,618,000 |
NET EARNINGS | $ 6,678,400 | $ 5,214,700 |
BASIC AND DILUTED EARNINGS PER SHARE: | ||
Basic (in Dollars per share) | $ 0.82 | $ 0.64 |
Diluted (in Dollars per share) | $ 0.81 | $ 0.64 |
WEIGHTED AVERAGE NUMBER OF COMMON AND EQUIVALENT SHARES OUTSTANDING: | ||
Basic (in Shares) | 8,189,149 | 8,175,996 |
Diluted (in Shares) | 8,196,628 | 8,181,322 |
Dividends per share (in Dollars per share) | $ 0.20 | $ 0 |
Gross Sales [Member] | ||
REVENUES | $ 157,870,100 | $ 139,040,400 |
Discounts and Allowances [Member] | ||
Less discounts and allowances | (49,754,000) | (38,103,500) |
Transportation Revenue [Member] | ||
REVENUES | $ 10,695,200 | $ 11,047,700 |
STATEMENTS OF SHAREHOLDERS' EQU
STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balance at Feb. 28, 2017 | $ 2,416,400 | $ 8,549,000 | $ 15,499,800 | $ (11,247,800) | $ 15,217,400 |
Balance (in Shares) at Feb. 28, 2017 | 12,082,080 | 3,901,932 | |||
Exercise of stock options | $ 2,000 | 24,300 | $ 26,300 | ||
Exercise of stock options (in Shares) | 10,000 | 10,000 | |||
Purchases of treasury stock | $ (98,400) | $ (98,400) | |||
Purchases of treasury stock (in Shares) | 20,138 | ||||
Sales of treasury stock | $ 42,100 | 42,100 | |||
Sales of treasury stock (in Shares) | (9,602) | ||||
Net earnings | 5,214,700 | 5,214,700 | |||
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 | |||
Exercise of stock options (in Shares) | 0 | ||||
Purchases of treasury stock | $ (256,500) | $ (256,500) | |||
Purchases of treasury stock (in Shares) | 25,171 | ||||
Sales of treasury stock | $ 342,700 | 342,700 | |||
Sales of treasury stock (in Shares) | (40,641) | ||||
Dividends paid | (1,227,900) | (1,227,900) | |||
Dividends declared | (410,100) | (410,100) | |||
Share-based compensation expense | 401,800 | 401,800 | |||
Net earnings | 6,678,400 | 6,678,400 | |||
Balance at Feb. 28, 2019 | $ 2,418,400 | $ 8,975,100 | $ 25,754,900 | $ (11,217,900) | $ 25,930,500 |
Balance (in Shares) at Feb. 28, 2019 | 12,092,080 | 3,896,998 |
STATEMENTS OF SHAREHOLDERS' E_2
STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - Retained Earnings [Member] | 12 Months Ended |
Feb. 28, 2019$ / shares | |
Dividends paid | $ 0.15 |
Dividends declared | $ 0.05 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 6,678,400 | $ 5,214,700 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 1,455,800 | 1,251,000 |
Deferred income taxes, net | 735,700 | 264,900 |
Provision for doubtful accounts | 74,100 | 510,900 |
Provision for inventory valuation allowance | 140,700 | 311,800 |
Share-based compensation expense | 401,800 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (419,100) | (407,700) |
Inventories, net | (7,106,800) | 7,079,000 |
Prepaid expenses and other assets | (337,100) | (412,300) |
Accounts payable | 2,399,100 | (5,096,300) |
Accrued salaries and commissions, and other liabilities | 694,000 | 177,400 |
Deferred revenues | 272,600 | 59,900 |
Income taxes payable | (1,042,400) | 279,400 |
Total adjustments | (2,731,600) | 4,018,000 |
Net cash provided by operating activities | 3,946,800 | 9,232,700 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (1,399,400) | (1,437,700) |
Net cash used in investing activities | (1,399,400) | (1,437,700) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on long-term debt | (929,700) | (1,877,000) |
Proceeds from long-term debt | 0 | 1,019,000 |
Cash received from sale of treasury stock | 342,700 | 42,100 |
Cash used to purchase treasury stock | (256,500) | (98,400) |
Cash proceeds from issuance of stock options | 0 | 26,300 |
Net payments on line of credit | 0 | (4,882,900) |
Dividends paid | (1,227,900) | 0 |
Net cash used in financing activities | (2,071,400) | (5,770,900) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 476,000 | 2,024,100 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 2,723,300 | 699,200 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 3,199,300 | 2,723,300 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid for interest | 926,900 | 1,116,500 |
Cash paid for income taxes | 2,874,300 | 2,073,600 |
NON-CASH TRANSACTIONS: | ||
Accrued capital expenditures | $ 0 | $ 639,500 |
1. SUMMARY OF SIGNIFICANT ACCOU
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 28, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business — Stock Split — Estimates — Reclassifications — Business Concentration — A significant portion of our UBAM division sales are facilitated through the use of social media collaboration platforms that allow our consultants to interact in real-time, or near real-time, with customers. Consultants use these platforms to invite potential customers to “online parties,” provide book recommendations, answer questions and provide links to other supporting online materials. When a customer is ready to purchase books from the online party, they are redirected from the social media platform to the consultant’s e-commerce site where the order can be placed. Cash and Cash Equivalents — Accounts Receivable — Management periodically reviews accounts receivable balances and, based on an assessment of historical bad debts, current customer receivable balances, age of customer receivable balances, customers’ financial conditions and current economic trends, estimates the portion of the balance that will not be collected. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation account based on its assessment of the current status of the individual accounts. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Recoveries of accounts receivable previously written off are recorded as income when received. Management has estimated an allowance for doubtful accounts of $268,600 and $297,100 as of February 28, 2019 and 2018, respectively. Included within this allowance is $93,900 of reserve for vendor discounts to sell remaining inventory as of February 28, 2019 and 2018. Inventories — Consultants that meet certain eligibility requirements may request and receive inventory on consignment. Consignment inventory is stated at the lower of cost or net realizable value, less an estimated reserve for consignment inventory that is not expected to be sold or returned to the Company. The total cost of inventory on consignment, excluding the estimated reserve, with consultants was $1,545,000 and $1,549,300 at February 28, 2019 and 2018, respectively. The Company has reserved for consignment inventory not expected to be sold or returned of $48,600 and $460,000 as of February 28, 2019 and 2018, respectively. Inventories are presented net of a valuation allowance, which includes reserves for inventory obsolescence and consultant consignment inventory that is not expected to be sold or returned. Management estimates the allowance for both current and noncurrent inventory. The allowance is based on management’s identification of slow-moving inventory and estimated consignment inventory that will not be sold or returned. Property, Plant and Equipment — Building 30 years Building improvements 10 – 15 years Machinery and equipment 3 – 15 years Furniture and fixtures 3 years Capitalized projects that are not placed in service are recorded as in progress and are not depreciated until the related assets are placed in service. Impairments of Long-Lived Assets — Income Taxes — Revenue Recognition — Estimated allowances for sales returns, which reduce net sales and costs of goods sold, are recorded as sales are recognized. Management uses a moving average calculation to estimate the allowance for sales returns. We are not responsible for product damaged in transit. Damaged returns are primarily from retail stores. These returns result from damage that occurs in the stores, not in shipping to the stores. It is industry practice to accept non-damaged returns from retail customers. Management has estimated sales returns of approximately $204,000 and $217,000 as of February 28, 2019 and 2018, respectively, which is included in other current liabilities on the Company’s balance sheet. In addition, Management has recorded an asset for the expected value of non-damaged inventories to be returned. The estimated value of returned products of $102,000 and $117,000 is included in other current assets on the Company’s balance sheet as of February 28, 2019 and 2018, respectively. Advertising Costs — Shipping and Handling Costs — Interest Expense — Interest Expense — Earnings per Share — The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown below. Year Ended February 28, 2019 2018 Earnings per share: Net earnings applicable to common shareholders $ 6,678,400 $ 5,214,700 Shares: Weighted average shares outstanding-basic 8,189,149 8,175,996 Assumed exercise of options 7,479 5,326 Weighted average shares outstanding-diluted 8,196,628 8,181,322 Diluted earnings per share: Basic $ 0.82 $ 0.64 Diluted $ 0.81 $ 0.64 Stock-Based Compensation — New Accounting Pronouncements — 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 our financial position, results of operations and cash flows (See Note 11 to the 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 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 have reviewed the ASU and evaluated the potential impact on our financial statements. As the accounting applied by a lessor is largely unchanged from that applied under the current standard, the Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position, results of operations and cash flows. 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 2021. We expect the implementation of this ASU will not have a significant impact on our financial position, results of operations and cash flows. 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 flow. 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 position, results of operations and cash flows. 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. 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 position, results of operations and cash flows. |
2. INVENTORIES
2. INVENTORIES | 12 Months Ended |
Feb. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 2. INVENTORIES Inventories consist of the following: February 28, 2019 2018 Current: Book inventory $ 33,494,200 $ 27,078,600 Inventory valuation allowance (48,600 ) (460,000 ) Inventories net - current $ 33,445,600 $ 26,618,600 Noncurrent: Book inventory $ 904,400 $ 707,700 Inventory valuation allowance (329,400 ) (271,800 ) Inventories net - noncurrent $ 575,000 $ 435,900 |
3. PROPERTY, PLANT AND EQUIPMEN
3. PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Feb. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 3. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: February 28, 2019 2018 Land $ 4,107,200 $ 4,107,200 Building 20,321,800 20,321,800 Building improvements 1,777,100 1,758,800 Machinery and equipment 7,972,900 7,231,300 Furniture and fixtures 109,000 109,000 34,288,000 33,528,100 Less accumulated depreciation (7,123,400 ) (5,667,600 ) $ 27,164,600 $ 27,860,500 During fiscal years 2018 and 2019, the Company purchased and installed new warehouse equipment and made software enhancements to increase its daily shipping capacity and reduce warehouse labor. |
4. OTHER CURRENT LIABILITIES
4. OTHER CURRENT LIABILITIES | 12 Months Ended |
Feb. 28, 2019 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities Disclosure [Text Block] | 4. OTHER CURRENT LIABILITIES Other current liabilities consist of the following: February 28, 2019 2018 Accrued royalties $ 869,200 $ 791,800 Accrued UBAM incentives 832,100 633,800 Accrued freight 431,400 357,800 Sales tax payable 547,000 557,600 Allowance for expected inventory returns 204,000 217,000 Other 1,294,200 959,900 Total other current liabilities $ 4,177,900 $ 3,517,900 |
5. INCOME TAXES
5. INCOME TAXES | 12 Months Ended |
Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 5. INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising our net deferred tax assets and liabilities are as follows: February 28, 2019 2018 Deferred tax assets: Allowance for doubtful accounts $ 72,500 $ 149,600 Inventory overhead capitalization 87,600 69,800 Inventory valuation allowance 13,100 47,200 Inventory valuation allowance – noncurrent 88,900 70,700 Allowance for sales returns 27,500 26,000 Capital loss carryforward 116,200 111,900 Accruals 252,900 141,700 Deferred tax assets 658,700 616,900 Less valuation allowance (116,200 ) (111,900 ) Total deferred tax assets 542,500 505,000 Deferred tax liabilities: Property, plant and equipment (1,415,100 ) (641,900 ) Total deferred tax liabilities (1,415,100 ) (641,900 ) Net deferred income tax liabilities $ (872,600 ) $ (136,900 ) On December 22, 2017, President Trump signed into law the Tax Act. Among its provisions, the Tax Act reduces the statutory U.S. Corporate income tax rate from a maximum rate of 35% to 21% effective January 1, 2018. The Tax Act also provides for accelerated deductions of certain capital expenditures made after September 27, 2017 through bonus depreciation. Upon the enactment of the Tax Act in fiscal 2018, we recorded a reduction in our deferred income tax liabilities of $43,200 for the effect of the aforementioned change in the U.S. statutory income tax rate. The application of the Tax Act may change due to regulations subsequently issued by the U.S. Treasury Department. Management has assessed the evidence to estimate whether sufficient future capital gains will be generated to utilize the existing capital loss carryforward. As no current expectation of capital gains exists, management has determined that a valuation allowance is necessary to reduce the carrying value of the capital loss carryforward deferred tax asset as it is “more likely than not” that such assets are unrealizable. The amount of the deferred tax asset considered realizable, however, could be adjusted if future capital gains are generated during the carryforward period which ended February 28, 2019. Management has determined that no valuation allowance is necessary to reduce the carrying value of other deferred tax assets as it is “more likely than not” that such assets are realizable. The components of income tax expense are as follows: February 28, 2019 2018 Current: Federal $ 1,253,600 $ 1,964,700 State 513,100 388,400 1,766,700 2,353,100 Deferred: Federal 674,500 239,800 State 61,200 25,100 735,700 264,900 Total income tax expense $ 2,502,400 $ 2,618,000 The following reconciles our expected income tax rate to the U.S. federal statutory income tax rate: February 28, 2019 2018 U.S. federal statutory income tax rate 21.0 % 31.8 % U.S. state and local income taxes–net of federal benefit 4.7 % 4.0 % Other 1.6 % (2.4 %) Total income tax expense 27.3 % 33.4 % Our U.S. federal statutory income tax rate declined from 34.0% to 21.0% as of January 1, 2018. As our fiscal year ends February 28, our federal effective tax rate for fiscal 2018 was a blended rate of 31.8%. We file our tax returns in the U.S. and certain state jurisdictions in which we have nexus. We are no longer subject to income tax examinations by tax authorities for fiscal years before 2017. Based upon a review of our income tax filing positions, we believe that our positions would be sustained upon an audit and do not anticipate any adjustments that would result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded. We classify interest and penalties associated with income taxes as a component of income tax expense on the statements of earnings. |
6. EMPLOYEE BENEFIT PLAN
6. EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Feb. 28, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 6. EMPLOYEE BENEFIT PLAN We have a profit-sharing plan that incorporates the provisions of Section 401(k) of the Internal Revenue Code. The 401(k) plan covers substantially all employees meeting specific age and length of service requirements. Matching contributions are discretionary and amounted to $133,300 and $89,400 during the fiscal years ended February 28, 2019 and 2018, respectively. The 401(k) plan includes an option for employees to invest in our stock, which is purchased from our treasury stock shares. Shares purchased for the 401(k) plan from treasury stock amounted to 40,641 net shares and 9,602 net shares during the fiscal years ended February 28, 2019 and 2018, respectively. |
7. COMMITMENTS
7. COMMITMENTS | 12 Months Ended |
Feb. 28, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Commitments Disclosure [Text Block] | 7. COMMITMENTS In connection with the purchase our 400,000 square-foot facility on 40-acres, in 2015, we entered into a 15-year lease with the seller, a non-related third party, who leases 181,300 square feet, or 45.3% of the facility. The lease is being accounted for as an operating lease. The cost of the leased space upon acquisition, and as of February 28, 2019, was estimated at $10,159,000. The accumulated depreciation associated with the leased assets was $1,139,700 and $789,100 for the fiscal years ended February 28, 2019 and 2018, respectively. Both the leased assets and accumulated depreciation are included in property, plant and equipment-net in the balance sheets. The lessee pays $112,200 per month, through the lease anniversary date of December 2019, with a 2.0% annual increase adjustment on each anniversary date thereafter. The lease terms allow for one five-year extension, which is not a bargain renewal option, at the expiration of the 15-year term. Revenues associated with the lease are being recorded on a straight-line basis over the initial lease term and are reported in other income on the statements of earnings. The following table reflects future minimum rental income payments under the non-cancellable portion of this lease as of February 28, 2019: Year Ending February 28 (29), 2020 $ 1,351,300 2021 1,378,300 2022 1,405,900 2023 1,434,000 2024 1,462,700 Thereafter 10,806,600 Total $ 17,838,800 At February 28, 2019, we had outstanding purchase commitments for inventory totaling $13,324,800, which is due during fiscal year 2020. Of these commitments, $8,825,600 were with Usborne, $4,489,400 with various Kane Miller publishers and the remaining $9,800 with other suppliers. Rent expense for the year ended February 28, 2019 and 2018, was $18,800 and $17,200, respectively. The current lease on the property extends through 2021. |
8. DEBT
8. DEBT | 12 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 8. DEBT Debt consists of the following: February 28, 2019 2018 Line of credit $ - $ - Long-term debt $ 19,776,600 $ 20,706,300 Less current maturities (945,900 ) (881,200 ) Long-term debt, net of current maturities $ 18,830,700 $ 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. 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 (4.99% at February 28, 2019). Term Loan #1 is secured by the primary office, warehouse and land. The outstanding borrowings on Tranche A were $11,984,100 and $12,453,300 at February 28, 2019 and 2018, respectively. The outstanding borrowings on Tranche B were $4,479,700 and $4,657,700 at February 28, 2019 and 2018, respectively. 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 (4.99% at February 28, 2019). 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 (4.99% at February 28, 2019). The outstanding borrowings on Term Loan #2 were $3,312,800 and $3,595,100 at February 28, 2019 and 2018, respectively. We had no borrowings outstanding on line of credit at February 28, 2019 and 2018. Available credit under the revolving credit agreement was $12,439,300 at February 28, 2019 and $9,424,000 at February 28, 2018. The Tranche B, line of credit and Term Loan #2 all accrue interest at a tiered rate based on our Adjusted Funded Debt to EBITDA ratio which is payable monthly. The current 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 <2 300.00 III >1.00 but <1 275.00 IV <1 250.00 Adjusted Funded Debt is defined as all long term and short-term bank debt less the outstanding balances of Tranche A and Tranche B Term Loans. EBITDA is defined in the Loan Agreement as earnings before interest expense, income tax expense (benefit) and depreciation and amortization expenses, reduced by rental income. The $15.0 million line of credit is limited to advance rates on eligible receivables and eligible inventory levels. On June 15, 2018, the Company executed the Eighth Amendment Loan Agreement with the Bank related to our Loan Agreement. The amendment modifies the Loan Agreement, extending the termination date until August 15, 2019, reduces the interest rate pricing grid for all floating rate borrowings covered by the Loan Agreement, establishes a new $3,000,000 advancing term loan to be used for capital expansions to increase daily shipping capacity, releases the personal Guaranty of Randall W. White and Carol White, along with other covenant restrictions being lessened. The amendment also includes an adjustment to the Adjusted Funded Debt to EBITDA ratio for covenant compliance. On February 7, 2019, the Company executed the Ninth Amendment Loan Agreement with the Bank related to our Loan Agreement. The amendment modifies the Loan Agreement, removing the covenant prohibiting the Company from repurchasing its shares, subject to certain conditions. The Loan Agreement 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. We had no letters of credit outstanding for the year ended February 28, 2019. The Loan Agreement also 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 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 the total value of stock that can be repurchased. 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), 2020 $ 945,900 2021 988,600 2022 1,038,100 2023 1,087,600 2024 1,139,500 Thereafter 14,576,900 $ 19,776,600 |
9. STOCK-BASED COMPENSATION
9. STOCK-BASED COMPENSATION | 12 Months Ended |
Feb. 28, 2019 | |
Share-based Payment Arrangement, Disclosure [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | 9 . STOCK-BASED COMPENSATION The Board of Directors adopted the 2002 Incentive Stock Option Plan (the “2002 Plan”) in June of 2002. The 2002 Plan also authorized us to grant up to 2,000,000 stock options. Options granted under the 2002 Plan vest at date of grant and are exercisable up to ten years from the date of grant. The exercise price on options granted is equal to the market price at the date of grant. Options outstanding at February 28, 2019 expire in December 2019. A summary of the status of our 2002 Plan as of February 28, 2019 and 2018, and changes during the years then ended is presented below: February 28, 2019 2018 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding at beginning of year 10,000 $ 2.63 20,000 $ 2.63 Exercised - - 10,000 2.63 Expired - - - - Outstanding at end of year 10,000 $ 2.63 10,000 $ 2.63 At February 28, 2019, all options outstanding are exercisable with an aggregate intrinsic value of $54,300 and weighted-average remaining contractual terms of options outstanding of 0.8 years. 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. The first award of 200,000 shares of restricted stock will be made for exceeding the initial annual net revenues target of $100,000,000. The second award of an additional 200,000 shares of restricted stock will begin to be awarded for exceeding annual net revenues of $112,500,000 up to the full award of shares for reaching the second targeted annual net revenues of $130,000,000. The third award of 200,000 shares of restricted stock will begin to be awarded for exceeding annual net revenues of $146,250,000 up to the full award of shares for reaching the third targeted annual net revenues of $160,000,000. Should the Company’s annual net revenues exceed $160,000,000 in any of the three years under the plan, the 2019 LTI Plan calls for the full award of the 600,000 shares of restricted stock to be issued. Awards of restricted stock will be made based on interpolation for years that net revenues exceed an established net revenues target but do not fully reach the next net revenues target. Net revenues under the 2019 LTI Plan is defined as gross sales, less discounts plus transportation revenue, similarly as presented on the Company’s Statement of Earnings. Awards of shares will be delayed if the Company does not achieve a minimum pre-tax profit of 3.0% in any fiscal year. Delayed awards will be made to participants upon the Company achieving the minimum profitability during the next completed fiscal year. Restricted shares granted under the 2019 LTI Plan “cliff vest” after five years of continued employment. 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. During fiscal year 2019, the Company granted approximately 308,000 restricted shares under the 2019 LTI Plan with an average grant-date fair value of $9.94 per share. During fiscal year 2019, the Company recognized $401,800 of compensation expense associated with the shares granted. The remaining compensation expense for these awards, totaling approximately $2,660,500, will be recognized ratably over the remaining vesting period of approximately 48 months. A summary of compensation expense recognized in connection with restricted share awards follows: Year Ended February 28, 2019 2018 Share-based compensation expense $ 401,800 $ - |
10. STOCK REPURCHASE PLAN
10. STOCK REPURCHASE PLAN | 12 Months Ended |
Feb. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | 10 . STOCK REPURCHASE PLAN In April 2008, the Board of Directors authorized us to repurchase up to an additional 1,000,000 shares of our common stock under the plan initiated in 1998 (“amended 2008 plan”). On February 4, 2019, the Board of Directors replaced the amended 2008 plan with a new plan which authorized us to repurchase up to 800,000 of outstanding common stock in the open market or in privately negotiated transactions, and to utilize any derivative or similar instrument to effect share repurchase transactions (including without limitation, accelerated share repurchase contracts, equity forward transactions, equity swap transactions, floor transactions or other similar transactions or any combination of the foregoing transactions). The Company received approval for the new plan from its primary lender, which removed certain restrictions on share repurchases outlined in the fourth amendment and added other restrictions outlined in the ninth amendment to the Company’s Loan Agreement (see Note 8 to the financial statements). During fiscal year 2019, and prior to February 4, 2019, we purchased 16,805 shares at an average price of $11.31 per share totaling approximately $190,100 under the amended 2008 stock repurchase plan. Between February 4 and February 28, 2019, we purchased 8,366 shares at an average price of $7.93 per share totaling approximately $66,400 under the new 2019 stock repurchase plan. |
11. REVENUE RECOGNITION
11. REVENUE RECOGNITION | 12 Months Ended |
Feb. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 1 1 . REVENUE RECOGNITION 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. Revenues are recognized at shipping point, which is the point in time the customer obtains control of the products and risk of loss and rewards of ownership have been transferred. 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 awards program in gross sales and discounts and allowances, as opposed to recording the net costs in operating and selling expenses. Disaggregation of Revenue Refer to Note 13 – 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 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 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 statement of earnings for the year ended February 28, 2018 was as follows: Without As Reported Adjustments Adoption GROSS SALES $ 139,040,400 $ (13,193,200 ) $ 125,847,200 Less discounts and allowances (38,103,500 ) 13,174,700 (24,928,800 ) Transportation revenue 11,047,700 - 11,047,700 NET REVENUES 111,984,600 (18,500 ) 111,966,100 COST OF GOODS SOLD 35,824,300 (4,893,000 ) 30,931,300 Gross margin 76,160,300 4,874,500 81,034,800 OPERATING EXPENSE: Operating and selling 17,694,700 4,876,500 22,571,200 Sales commissions 35,359,000 - 35,359,000 General and administrative 15,736,300 - 15,736,300 Total operating expenses 68,790,000 4,876,500 73,666,500 INTEREST EXPENSE 1,119,500 - 1,119,500 OTHER INCOME (1,581,900 ) (2,000 ) (1,583,900 ) EARNINGS BEFORE INCOME TAXES 7,832,700 - 7,832,700 INCOME TAXES 2,618,000 - 2,618,000 NET EARNINGS $ 5,214,700 $ - $ 5,214,700 As a result of applying Topic 606, the impact to the Company’s operating results by reporting segment for the year ended February 28, 2018 was as follows: UBAM Without As Reported Adjustments Adoption GROSS SALES $ 121,364,700 $ (13,193,900 ) $ 108,170,800 Less discounts and allowances (28,657,900 ) 13,175,400 (15,482,500 ) Transportation revenue 11,010,300 - 11,010,300 NET REVENUES 103,717,100 (18,500 ) 103,698,600 COST OF GOODS SOLD 31,132,800 (4,893,000 ) 26,239,800 Gross margin 72,584,300 4,874,500 77,458,800 OPERATING EXPENSE: Operating and selling 14,509,500 4,875,500 19,385,000 Sales commissions 35,043,200 - 35,043,200 General and administrative 3,602,000 - 3,602,000 Total operating expenses 53,154,700 4,875,500 58,030,200 OPERATING INCOME $ 19,429,600 $ (1,000 ) $ 19,428,600 Publishing Without As Reported Adjustments Adoption GROSS SALES $ 17,675,700 $ 700 $ 17,676,400 Less discounts and allowances (9,445,600 ) (700 ) (9,446,300 ) Transportation revenue 37,400 - 37,400 NET REVENUES 8,267,500 - 8,267,500 COST OF GOODS SOLD 4,691,500 - 4,691,500 Gross margin 3,576,000 - 3,576,000 OPERATING EXPENSE: Operating and selling 987,500 - 987,500 Sales commissions 315,700 - 315,700 General and administrative 509,600 - 509,600 Total operating expenses 1,812,800 - 1,812,800 OPERATING INCOME $ 1,763,200 $ - $ 1,763,200 |
12. QUARTERLY RESULTS OF OPERAT
12. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended |
Feb. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | 12 . QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following is a summary of the quarterly results of operations for the years ended February 28, 2019 and 2018. Net Revenues Gross Margin Net Earnings Basic Earnings Per Share Diluted Earnings Per Share 2019 First quarter $ 30,022,300 $ 20,352,600 $ 1,816,600 $ 0.22 $ 0.22 Second quarter 24,681,000 16,218,300 1,490,700 0.18 0.18 Third quarter 40,482,600 27,341,000 2,815,600 0.34 0.34 Fourth quarter 23,625,400 15,835,800 555,500 0.08 0.07 Total year $ 118,811,300 $ 79,747,700 $ 6,678,400 $ 0.82 $ 0.81 2018 First quarter $ 26,941,200 $ 18,342,400 $ 1,225,300 $ 0.15 $ 0.15 Second quarter 24,186,900 16,536,600 1,036,900 0.13 0.13 Third quarter 38,909,900 26,698,200 2,128,400 0.26 0.26 Fourth quarter 21,946,600 14,583,100 824,100 0.10 0.10 Total year $ 111,984,600 $ 76,160,300 $ 5,214,700 $ 0.64 $ 0.64 |
13. BUSINESS SEGMENTS
13. BUSINESS SEGMENTS | 12 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 1 3 . BUSINESS SEGMENTS We have two reportable segments: Publishing and UBAM. These reportable segments 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 industry segment for the years ended February 28, 2019 and 2018 is set forth below: NET REVENUES 2019 2018 Publishing $ 10,430,000 $ 8,267,500 UBAM 108,381,300 103,717,100 Total $ 118,811,300 $ 111,984,600 EARNINGS (LOSS) BEFORE INCOME TAXES 2019 2018 Publishing $ 2,885,800 $ 1,763,200 UBAM 19,250,100 19,429,600 Other (12,955,100 ) (13,360,100 ) Total $ 9,180,800 $ 7,832,700 |
14. FAIR VALUE MEASUREMENTS
14. FAIR VALUE MEASUREMENTS | 12 Months Ended |
Feb. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 1 4 . FAIR VALUE MEASUREMENTS 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 February 28, 2019 and 2018. The estimated fair value of our term notes payable is estimated by management to approximate $19,123,700 and $19,454,500 at February 28, 2019 and 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. |
15. DEFERRED REVENUES
15. DEFERRED REVENUES | 12 Months Ended |
Feb. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 1 5 . DEFERRED REVENUES The Company’s UBAM division receives payments on orders in advance of shipment. Any payments received prior to our fiscal year end that were not shipped as of February 28, 2019 are recorded as deferred revenues on the balance sheet. We received approximately $965,600 and $693,000 at February 28, 2019 and 2018, respectively, in payments for sales orders which were, or will be, shipped out subsequent to the year end. Orders that were included in deferred revenues predominantly shipped within the first few days of the next fiscal year. |
16. SUBSEQUENT EVENT
16. SUBSEQUENT EVENT | 12 Months Ended |
Feb. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 1 6 . SUBSEQUENT EVENTS On May 21, 2019, the Board of Directors of EDC approved a $0.05 dividend that will be paid to shareholders of record on Tuesday, June 4, 2019. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Feb. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Nature of Business — |
Stockholders' Equity, Policy [Policy Text Block] | Stock Split — |
Use of Estimates, Policy [Policy Text Block] | Estimates — |
Reclassification, Policy [Policy Text Block] | Reclassifications — |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Business Concentration — A significant portion of our UBAM division sales are facilitated through the use of social media collaboration platforms that allow our consultants to interact in real-time, or near real-time, with customers. Consultants use these platforms to invite potential customers to “online parties,” provide book recommendations, answer questions and provide links to other supporting online materials. When a customer is ready to purchase books from the online party, they are redirected from the social media platform to the consultant’s e-commerce site where the order can be placed. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents — |
Receivable [Policy Text Block] | Accounts Receivable — Management periodically reviews accounts receivable balances and, based on an assessment of historical bad debts, current customer receivable balances, age of customer receivable balances, customers’ financial conditions and current economic trends, estimates the portion of the balance that will not be collected. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation account based on its assessment of the current status of the individual accounts. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Recoveries of accounts receivable previously written off are recorded as income when received. Management has estimated an allowance for doubtful accounts of $268,600 and $297,100 as of February 28, 2019 and 2018, respectively. Included within this allowance is $93,900 of reserve for vendor discounts to sell remaining inventory as of February 28, 2019 and 2018. |
Inventory, Policy [Policy Text Block] | Inventories — Consultants that meet certain eligibility requirements may request and receive inventory on consignment. Consignment inventory is stated at the lower of cost or net realizable value, less an estimated reserve for consignment inventory that is not expected to be sold or returned to the Company. The total cost of inventory on consignment, excluding the estimated reserve, with consultants was $1,545,000 and $1,549,300 at February 28, 2019 and 2018, respectively. The Company has reserved for consignment inventory not expected to be sold or returned of $48,600 and $460,000 as of February 28, 2019 and 2018, respectively. Inventories are presented net of a valuation allowance, which includes reserves for inventory obsolescence and consultant consignment inventory that is not expected to be sold or returned. Management estimates the allowance for both current and noncurrent inventory. The allowance is based on management’s identification of slow-moving inventory and estimated consignment inventory that will not be sold or returned. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment — Building 30 years Building improvements 10 – 15 years Machinery and equipment 3 – 15 years Furniture and fixtures 3 years Capitalized projects that are not placed in service are recorded as in progress and are not depreciated until the related assets are placed in service. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairments of Long-Lived Assets — |
Income Tax, Policy [Policy Text Block] | Income Taxes — |
Revenue [Policy Text Block] | Revenue Recognition — Estimated allowances for sales returns, which reduce net sales and costs of goods sold, are recorded as sales are recognized. Management uses a moving average calculation to estimate the allowance for sales returns. We are not responsible for product damaged in transit. Damaged returns are primarily from retail stores. These returns result from damage that occurs in the stores, not in shipping to the stores. It is industry practice to accept non-damaged returns from retail customers. Management has estimated sales returns of approximately $204,000 and $217,000 as of February 28, 2019 and 2018, respectively, which is included in other current liabilities on the Company’s balance sheet. In addition, Management has recorded an asset for the expected value of non-damaged inventories to be returned. The estimated value of returned products of $102,000 and $117,000 is included in other current assets on the Company’s balance sheet as of February 28, 2019 and 2018, respectively. |
Advertising Cost [Policy Text Block] | Advertising Costs — |
Cost of Goods and Service [Policy Text Block] | Shipping and Handling Costs — |
Interest Expense, Policy [Policy Text Block] | Interest Expense — |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share — The computation of weighted average common and common equivalent shares used in the calculation of basic and diluted EPS is shown below. Year Ended February 28, 2019 2018 Earnings per share: Net earnings applicable to common shareholders $ 6,678,400 $ 5,214,700 Shares: Weighted average shares outstanding-basic 8,189,149 8,175,996 Assumed exercise of options 7,479 5,326 Weighted average shares outstanding-diluted 8,196,628 8,181,322 Diluted earnings per share: Basic $ 0.82 $ 0.64 Diluted $ 0.81 $ 0.64 |
Share-based Payment Arrangement [Policy Text Block] | Stock-Based Compensation — |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements — 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 our financial position, results of operations and cash flows (See Note 11 to the 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 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 have reviewed the ASU and evaluated the potential impact on our financial statements. As the accounting applied by a lessor is largely unchanged from that applied under the current standard, the Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position, results of operations and cash flows. 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 2021. We expect the implementation of this ASU will not have a significant impact on our financial position, results of operations and cash flows. 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 flow. 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 position, results of operations and cash flows. 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. 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 position, results of operations and cash flows. |
1. SUMMARY OF SIGNIFICANT ACC_2
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items] | |
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. Year Ended February 28, 2019 2018 Earnings per share: Net earnings applicable to common shareholders $ 6,678,400 $ 5,214,700 Shares: Weighted average shares outstanding-basic 8,189,149 8,175,996 Assumed exercise of options 7,479 5,326 Weighted average shares outstanding-diluted 8,196,628 8,181,322 Diluted earnings per share: Basic $ 0.82 $ 0.64 Diluted $ 0.81 $ 0.64 |
Property, Plant and Equipment, Estimated Useful Life [Member] | |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives, as follows: Building 30 years Building improvements 10 – 15 years Machinery and equipment 3 – 15 years Furniture and fixtures 3 years |
2. INVENTORIES (Tables)
2. INVENTORIES (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory [Table Text Block] | Inventories consist of the following: February 28, 2019 2018 Current: Book inventory $ 33,494,200 $ 27,078,600 Inventory valuation allowance (48,600 ) (460,000 ) Inventories net - current $ 33,445,600 $ 26,618,600 Noncurrent: Book inventory $ 904,400 $ 707,700 Inventory valuation allowance (329,400 ) (271,800 ) Inventories net - noncurrent $ 575,000 $ 435,900 |
3. PROPERTY, PLANT AND EQUIPM_2
3. PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Property, Plant and Equipment [Member] | |
3. PROPERTY, PLANT AND EQUIPMENT (Tables) [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consist of the following: February 28, 2019 2018 Land $ 4,107,200 $ 4,107,200 Building 20,321,800 20,321,800 Building improvements 1,777,100 1,758,800 Machinery and equipment 7,972,900 7,231,300 Furniture and fixtures 109,000 109,000 34,288,000 33,528,100 Less accumulated depreciation (7,123,400 ) (5,667,600 ) $ 27,164,600 $ 27,860,500 |
4. OTHER CURRENT LIABILITIES (T
4. OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Current Liabilities [Table Text Block] | Other current liabilities consist of the following: February 28, 2019 2018 Accrued royalties $ 869,200 $ 791,800 Accrued UBAM incentives 832,100 633,800 Accrued freight 431,400 357,800 Sales tax payable 547,000 557,600 Allowance for expected inventory returns 204,000 217,000 Other 1,294,200 959,900 Total other current liabilities $ 4,177,900 $ 3,517,900 |
5. INCOME TAXES (Tables)
5. INCOME TAXES (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant items comprising our net deferred tax assets and liabilities are as follows: February 28, 2019 2018 Deferred tax assets: Allowance for doubtful accounts $ 72,500 $ 149,600 Inventory overhead capitalization 87,600 69,800 Inventory valuation allowance 13,100 47,200 Inventory valuation allowance – noncurrent 88,900 70,700 Allowance for sales returns 27,500 26,000 Capital loss carryforward 116,200 111,900 Accruals 252,900 141,700 Deferred tax assets 658,700 616,900 Less valuation allowance (116,200 ) (111,900 ) Total deferred tax assets 542,500 505,000 Deferred tax liabilities: Property, plant and equipment (1,415,100 ) (641,900 ) Total deferred tax liabilities (1,415,100 ) (641,900 ) Net deferred income tax liabilities $ (872,600 ) $ (136,900 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax expense are as follows: February 28, 2019 2018 Current: Federal $ 1,253,600 $ 1,964,700 State 513,100 388,400 1,766,700 2,353,100 Deferred: Federal 674,500 239,800 State 61,200 25,100 735,700 264,900 Total income tax expense $ 2,502,400 $ 2,618,000 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following reconciles our expected income tax rate to the U.S. federal statutory income tax rate: February 28, 2019 2018 U.S. federal statutory income tax rate 21.0 % 31.8 % U.S. state and local income taxes–net of federal benefit 4.7 % 4.0 % Other 1.6 % (2.4 %) Total income tax expense 27.3 % 33.4 % |
7. COMMITMENTS (Tables)
7. COMMITMENTS (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following table reflects future minimum rental income payments under the non-cancellable portion of this lease as of February 28, 2019: Year Ending February 28 (29), 2020 $ 1,351,300 2021 1,378,300 2022 1,405,900 2023 1,434,000 2024 1,462,700 Thereafter 10,806,600 Total $ 17,838,800 |
8. DEBT (Tables)
8. DEBT (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt consists of the following: February 28, 2019 2018 Line of credit $ - $ - Long-term debt $ 19,776,600 $ 20,706,300 Less current maturities (945,900 ) (881,200 ) Long-term debt, net of current maturities $ 18,830,700 $ 19,825,100 |
Schedule of Long-term Debt Instruments [Table Text Block] | The Tranche B, line of credit and Term Loan #2 all accrue interest at a tiered rate based on our Adjusted Funded Debt to EBITDA ratio which is payable monthly. The current 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 <2 300.00 III >1.00 but <1 275.00 IV <1 250.00 |
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), 2020 $ 945,900 2021 988,600 2022 1,038,100 2023 1,087,600 2024 1,139,500 Thereafter 14,576,900 $ 19,776,600 |
9. STOCK-BASED COMPENSATION (Ta
9. STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Share-based Payment Arrangement, Disclosure [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | A summary of the status of our 2002 Plan as of February 28, 2019 and 2018, and changes during the years then ended is presented below: February 28, 2019 2018 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding at beginning of year 10,000 $ 2.63 20,000 $ 2.63 Exercised - - 10,000 2.63 Expired - - - - Outstanding at end of year 10,000 $ 2.63 10,000 $ 2.63 |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | A summary of compensation expense recognized in connection with restricted share awards follows: Year Ended February 28, 2019 2018 Share-based compensation expense $ 401,800 $ - |
11. REVENUE RECOGNITION (Tables
11. REVENUE RECOGNITION (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | As a result of applying Topic 606, the impact to the Company’s 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 Without As Reported Adjustments Adoption GROSS SALES $ 139,040,400 $ (13,193,200 ) $ 125,847,200 Less discounts and allowances (38,103,500 ) 13,174,700 (24,928,800 ) Transportation revenue 11,047,700 - 11,047,700 NET REVENUES 111,984,600 (18,500 ) 111,966,100 COST OF GOODS SOLD 35,824,300 (4,893,000 ) 30,931,300 Gross margin 76,160,300 4,874,500 81,034,800 OPERATING EXPENSE: Operating and selling 17,694,700 4,876,500 22,571,200 Sales commissions 35,359,000 - 35,359,000 General and administrative 15,736,300 - 15,736,300 Total operating expenses 68,790,000 4,876,500 73,666,500 INTEREST EXPENSE 1,119,500 - 1,119,500 OTHER INCOME (1,581,900 ) (2,000 ) (1,583,900 ) EARNINGS BEFORE INCOME TAXES 7,832,700 - 7,832,700 INCOME TAXES 2,618,000 - 2,618,000 NET EARNINGS $ 5,214,700 $ - $ 5,214,700 Without As Reported Adjustments Adoption GROSS SALES $ 121,364,700 $ (13,193,900 ) $ 108,170,800 Less discounts and allowances (28,657,900 ) 13,175,400 (15,482,500 ) Transportation revenue 11,010,300 - 11,010,300 NET REVENUES 103,717,100 (18,500 ) 103,698,600 COST OF GOODS SOLD 31,132,800 (4,893,000 ) 26,239,800 Gross margin 72,584,300 4,874,500 77,458,800 OPERATING EXPENSE: Operating and selling 14,509,500 4,875,500 19,385,000 Sales commissions 35,043,200 - 35,043,200 General and administrative 3,602,000 - 3,602,000 Total operating expenses 53,154,700 4,875,500 58,030,200 OPERATING INCOME $ 19,429,600 $ (1,000 ) $ 19,428,600 Without As Reported Adjustments Adoption GROSS SALES $ 17,675,700 $ 700 $ 17,676,400 Less discounts and allowances (9,445,600 ) (700 ) (9,446,300 ) Transportation revenue 37,400 - 37,400 NET REVENUES 8,267,500 - 8,267,500 COST OF GOODS SOLD 4,691,500 - 4,691,500 Gross margin 3,576,000 - 3,576,000 OPERATING EXPENSE: Operating and selling 987,500 - 987,500 Sales commissions 315,700 - 315,700 General and administrative 509,600 - 509,600 Total operating expenses 1,812,800 - 1,812,800 OPERATING INCOME $ 1,763,200 $ - $ 1,763,200 |
12. QUARTERLY RESULTS OF OPER_2
12. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following is a summary of the quarterly results of operations for the years ended February 28, 2019 and 2018. Net Revenues Gross Margin Net Earnings Basic Earnings Per Share Diluted Earnings Per Share 2019 First quarter $ 30,022,300 $ 20,352,600 $ 1,816,600 $ 0.22 $ 0.22 Second quarter 24,681,000 16,218,300 1,490,700 0.18 0.18 Third quarter 40,482,600 27,341,000 2,815,600 0.34 0.34 Fourth quarter 23,625,400 15,835,800 555,500 0.08 0.07 Total year $ 118,811,300 $ 79,747,700 $ 6,678,400 $ 0.82 $ 0.81 2018 First quarter $ 26,941,200 $ 18,342,400 $ 1,225,300 $ 0.15 $ 0.15 Second quarter 24,186,900 16,536,600 1,036,900 0.13 0.13 Third quarter 38,909,900 26,698,200 2,128,400 0.26 0.26 Fourth quarter 21,946,600 14,583,100 824,100 0.10 0.10 Total year $ 111,984,600 $ 76,160,300 $ 5,214,700 $ 0.64 $ 0.64 |
13. BUSINESS SEGMENTS (Tables)
13. BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information by industry segment for the years ended February 28, 2019 and 2018 is set forth below: 2019 2018 Publishing $ 10,430,000 $ 8,267,500 UBAM 108,381,300 103,717,100 Total $ 118,811,300 $ 111,984,600 2019 2018 Publishing $ 2,885,800 $ 1,763,200 UBAM 19,250,100 19,429,600 Other (12,955,100 ) (13,360,100 ) Total $ 9,180,800 $ 7,832,700 |
1. SUMMARY OF SIGNIFICANT ACC_3
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Payments for (Proceeds from) Other Investing Activities | $ 42,800,000 | $ 24,500,000 |
Cash, FDIC Insured Amount | 250,000 | |
Accounts Receivable, Allowance for Credit Loss | 268,600 | 297,100 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | 1,545,000 | 1,549,300 |
Inventory Valuation Reserves | 48,600 | 460,000 |
Asset Impairment Charges | 0 | 0 |
Other Liabilities, Current | 4,177,900 | 3,517,900 |
Advertising Expense | 629,900 | 546,600 |
Cost of Goods and Services Sold | 39,063,600 | 35,824,300 |
Interest Expense | 931,300 | 1,119,500 |
Sales Returns and Allowances [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Other Liabilities, Current | 204,000 | 217,000 |
Inventory Vendor Discounts [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Accounts Receivable, Allowance for Credit Loss | 93,900 | 93,900 |
Usborne Books and More [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Payments for (Proceeds from) Other Investing Activities | 29,800,000 | 15,100,000 |
Accounts Payable, Other, Current | 5,600,000 | |
Shipping and Handling [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Cost of Goods and Services Sold | 17,263,000 | 15,990,800 |
Returned Products [Member] | ||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ||
Other Assets, Current | $ 102,000 | $ 117,000 |
1. SUMMARY OF SIGNIFICAN
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Property, Plant and Equipment | 12 Months Ended |
Feb. 28, 2019 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 30 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Minimum [Member] | Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Maximum [Member] | Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 15 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 15 years |
1. SUMMARY OF SIGNIFIC_2
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Diluted Earnings Per Share - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | |
Earnings per share: | ||||||||||
Net earnings applicable to common shareholders (in Dollars) | $ 6,678,400 | $ 5,214,700 | ||||||||
Shares: | ||||||||||
Weighted average shares outstanding-basic | 8,189,149 | 8,175,996 | ||||||||
Assumed exercise of options | 7,479 | 5,326 | ||||||||
Weighted average shares outstanding-diluted | 8,196,628 | 8,181,322 | ||||||||
Diluted earnings per share: | ||||||||||
Basic (in Dollars per share) | $ 0.08 | $ 0.34 | $ 0.18 | $ 0.22 | $ 0.26 | $ 0.13 | $ 0.15 | $ 0.10 | $ 0.82 | $ 0.64 |
Diluted (in Dollars per share) | $ 0.07 | $ 0.34 | $ 0.18 | $ 0.22 | $ 0.26 | $ 0.13 | $ 0.15 | $ 0.10 | $ 0.81 | $ 0.64 |
2. INVENTORIES (Details
2. INVENTORIES (Details) - Schedule of Inventory, Noncurrent - USD ($) | Feb. 28, 2019 | Feb. 28, 2018 |
Inventory Current [Member] | ||
Current: | ||
Book inventory | $ 33,494,200 | $ 27,078,600 |
Inventory valuation allowance | (48,600) | (460,000) |
Inventories net | 33,445,600 | 26,618,600 |
Inventory, Noncurrent [Member] | ||
Current: | ||
Book inventory | 904,400 | 707,700 |
Inventory valuation allowance | (329,400) | (271,800) |
Inventories net | $ 575,000 | $ 435,900 |
3. PROPERTY, PLANT AND E
3. PROPERTY, PLANT AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment - USD ($) | Feb. 28, 2019 | Feb. 28, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 34,288,000 | $ 33,528,100 |
Less accumulated depreciation | (7,123,400) | (5,667,600) |
Property, Plant and Equipment, Net | 27,164,600 | 27,860,500 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4,107,200 | 4,107,200 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 20,321,800 | 20,321,800 |
Less accumulated depreciation | (1,139,700) | (789,100) |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,777,100 | 1,758,800 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 7,972,900 | 7,231,300 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 109,000 | $ 109,000 |
4. OTHER CURRENT LIABILI
4. OTHER CURRENT LIABILITIES (Details) - Schedule of Other Current Liabilities - USD ($) | Feb. 28, 2019 | Feb. 28, 2018 |
Schedule of Other Current Liabilities [Abstract] | ||
Accrued royalties | $ 869,200 | $ 791,800 |
Accrued UBAM incentives | 832,100 | 633,800 |
Accrued freight | 431,400 | 357,800 |
Sales tax payable | 547,000 | 557,600 |
Allowance for expected inventory returns | 204,000 | 217,000 |
Other | 1,294,200 | 959,900 |
Total other current liabilities | $ 4,177,900 | $ 3,517,900 |
5. INCOME TAXES (Details)
5. INCOME TAXES (Details) - USD ($) | Jan. 01, 2018 | Dec. 22, 2017 | Feb. 28, 2019 | Feb. 28, 2018 |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 21.00% | 31.80% |
Increase (Decrease) in Deferred Income Taxes (in Dollars) | $ (43,200) |
5. INCOME TAXES (Detail
5. INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities - USD ($) | Feb. 28, 2019 | Feb. 28, 2018 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 72,500 | $ 149,600 |
Inventory overhead capitalization | 87,600 | 69,800 |
Inventory valuation allowance | 13,100 | 47,200 |
Inventory valuation allowance – noncurrent | 88,900 | 70,700 |
Allowance for sales returns | 27,500 | 26,000 |
Capital loss carryforward | 116,200 | 111,900 |
Accruals | 252,900 | 141,700 |
Deferred tax assets | 658,700 | 616,900 |
Less valuation allowance | (116,200) | (111,900) |
Total deferred tax assets | 542,500 | 505,000 |
Deferred tax liabilities: | ||
Property, plant and equipment | (1,415,100) | (641,900) |
Total deferred tax liabilities | (1,415,100) | (641,900) |
Net deferred income tax liabilities | $ (872,600) | $ (136,900) |
5. INCOME TAXES (Deta_2
5. INCOME TAXES (Details) - Schedule of Components of Income Tax Expense (Benefit) - USD ($) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Current: | ||
Federal | $ 1,253,600 | $ 1,964,700 |
State | 513,100 | 388,400 |
1,766,700 | 2,353,100 | |
Deferred: | ||
Federal | 674,500 | 239,800 |
State | 61,200 | 25,100 |
735,700 | 264,900 | |
Total income tax expense | $ 2,502,400 | $ 2,618,000 |
5. INCOME TAXES (Deta_3
5. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation | Jan. 01, 2018 | Dec. 22, 2017 | Feb. 28, 2019 | Feb. 28, 2018 |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||||
U.S. federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 31.80% |
U.S. state and local income taxes–net of federal benefit | 4.70% | 4.00% | ||
Other | 1.60% | (2.40%) | ||
Total income tax expense | 27.30% | 33.40% |
6. EMPLOYEE BENEFIT PLAN (Detai
6. EMPLOYEE BENEFIT PLAN (Details) - 401(k) Plan [Member] - USD ($) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
6. EMPLOYEE BENEFIT PLAN (Details) [Line Items] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 133,300 | $ 89,400 |
Stock Issued During Period, Shares, Treasury Stock Reissued | 40,641 | 9,602 |
7. COMMITMENTS (Details)
7. COMMITMENTS (Details) | 12 Months Ended | |
Feb. 28, 2019USD ($)ft²a | Feb. 28, 2018USD ($) | |
7. COMMITMENTS (Details) [Line Items] | ||
Area of Real Estate Property (in Square Feet) | ft² | 400,000 | |
Area of Land (in Acres) | a | 40 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 7,123,400 | $ 5,667,600 |
Operating Leases, Rent Expense | $ 18,800 | 17,200 |
Building [Member] | ||
7. COMMITMENTS (Details) [Line Items] | ||
Area of Real Estate Property (in Square Feet) | ft² | 181,300 | |
Lessee, Operating Lease, Term of Contract | 15 years | |
Area of Real Estate, Percentage Leased | 45.30% | |
Buildings and Improvements, Gross | $ 10,159,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 1,139,700 | $ 789,100 |
Description of Lessee Leasing Arrangements, Operating Leases | The lessee pays $112,200 per month, through the lease anniversary date of December 2019, with a 2.0% annual increase adjustment on each anniversary date thereafter. | |
Operating Leases, Rent Expense, Minimum Rentals | $ 112,200 | |
Lessee, Operating Lease, Renewal Term | 5 years | |
Inventory [Member] | ||
7. COMMITMENTS (Details) [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 13,324,800 | |
Inventory [Member] | Usborne Books and More [Member] | ||
7. COMMITMENTS (Details) [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 8,825,600 | |
Inventory [Member] | Kane Miller [Member] | ||
7. COMMITMENTS (Details) [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | 4,489,400 | |
Inventory [Member] | Other Suppliers [Member] | ||
7. COMMITMENTS (Details) [Line Items] | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 9,800 |
7. COMMITMENTS (Details) - Sche
7. COMMITMENTS (Details) - Schedule of Future Minimum Rental Payments for Operating Leases | Feb. 28, 2019USD ($) |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2020 | $ 1,351,300 |
2021 | 1,378,300 |
2022 | 1,405,900 |
2023 | 1,434,000 |
2024 | 1,462,700 |
Thereafter | 10,806,600 |
Total | $ 17,838,800 |
8. DEBT (Details)
8. DEBT (Details) - USD ($) | Dec. 01, 2015 | Feb. 28, 2019 | Jun. 15, 2018 | Feb. 28, 2018 |
8. DEBT (Details) [Line Items] | ||||
Long-term Debt | $ 19,776,600 | $ 20,706,300 | ||
Term Loan # 2 [Member] | ||||
8. DEBT (Details) [Line Items] | ||||
Long-term Debt | 3,312,800 | 3,595,100 | ||
Line of Credit [Member] | ||||
8. DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 12,439,300 | 9,424,000 | ||
Line of Credit [Member] | Term Loan # 2 [Member] | ||||
8. DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 15,000,000 | |||
Notes Payable to Banks [Member] | Tranche A [Member] | ||||
8. DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 13,400,000 | |||
Line of Credit Facility, Expiration Date | Aug. 15, 2019 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.23% | |||
Debt Instrument, Payment Terms | interest is payable monthly | |||
Long-term Debt | $ 11,984,100 | 12,453,300 | ||
Notes Payable to Banks [Member] | Tranche B [Member] | ||||
8. DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||
Line of Credit Facility, Expiration Date | Dec. 1, 2025 | |||
Debt Instrument, Payment Terms | 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 | |||
Debt Instrument, Interest Rate During Period | 4.99% | |||
Long-term Debt | $ 4,479,700 | $ 4,657,700 | ||
Notes Payable to Banks [Member] | Term Loan # 2 [Member] | ||||
8. DEBT (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 4,000,000 | |||
Debt Instrument, Maturity Date | Jun. 28, 2021 | |||
Notes Payable to Banks [Member] | Term Loan # 1 [Member] | ||||
8. DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | Term Loan # 2 [Member] | ||||
8. DEBT (Details) [Line Items] | ||||
Line of Credit Facility, Interest Rate at Period End | 4.99% | |||
London Interbank Offered Rate (LIBOR) [Member] | Notes Payable to Banks [Member] | Term Loan # 2 [Member] | ||||
8. DEBT (Details) [Line Items] | ||||
Debt Instrument, Interest Rate During Period | 4.99% |
8. DEBT (Details)
8. DEBT (Details) - Schedule of Debt - USD ($) | Feb. 28, 2019 | Feb. 28, 2018 |
Schedule of Debt [Abstract] | ||
Line of credit | $ 0 | $ 0 |
Long-term debt | 19,776,600 | 20,706,300 |
Less current maturities | (945,900) | (881,200) |
Long-term debt, net of current maturities | $ 18,830,700 | $ 19,825,100 |
8. DEBT (Detail_2
8. DEBT (Details) - Schedule of Long-term Debt Instruments | 12 Months Ended |
Feb. 28, 2019 | |
Pricing Tier I [Member] | |
Debt Instrument [Line Items] | |
Adjusted Funded Debt to EBITDA Ratio | >2.00 |
Pricing Tier 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 Tier 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% |
8. DEBT (Detail_3
8. DEBT (Details) - Schedule of Maturities of Long-term Debt - USD ($) | Feb. 28, 2019 | Feb. 28, 2018 |
Schedule of Maturities of Long-term Debt [Abstract] | ||
2020 | $ 945,900 | |
2021 | 988,600 | |
2022 | 1,038,100 | |
2023 | 1,087,600 | |
2024 | 1,139,500 | |
Thereafter | 14,576,900 | |
$ 19,776,600 | $ 20,706,300 |
9. STOCK-BASED COMPENSATION (De
9. STOCK-BASED COMPENSATION (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
Jun. 30, 2002 | Feb. 28, 2019 | |
2002 Plan [Member] | ||
9. STOCK-BASED COMPENSATION (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | exercise price on options granted is equal to the market price at the date of grant | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 54,300 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 292 days | |
2002 Plan [Member] | Maximum [Member] | ||
9. STOCK-BASED COMPENSATION (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |
The 2019 Long-term Incentive Plan [Member] | ||
9. 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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Description | The first award of 200,000 shares of restricted stock will be made for exceeding the initial annual net revenues target of $100,000,000.  The second award of an additional 200,000 shares of restricted stock will begin to be awarded for exceeding annual net revenues of $112,500,000 up to the full award of shares for reaching the second targeted annual net revenues of $130,000,000.  The third award of 200,000 shares of restricted stock will begin to be awarded for exceeding annual net revenues of $146,250,000 up to the full award of shares for reaching the third targeted annual net revenues of $160,000,000.  Should the Company’s annual net revenues exceed $160,000,000 in any of the three years under the plan, the 2019 LTI Plan calls for the full award of the 600,000 shares of restricted stock to be issued.  Awards of restricted stock will be made based on interpolation for years that net revenues exceed an established net revenues target but do not fully reach the next net revenues target.  Net revenues under the 2019 LTI Plan is defined as gross sales, less discounts plus transportation revenue, similarly as presented on the Company’s Statement of Earnings.  Awards of shares will be delayed if the Company does not achieve a minimum pre-tax profit of 3.0% in any fiscal year.  Delayed awards will be made to participants upon the Company achieving the minimum profitability during the next completed fiscal year. Restricted shares granted under the 2019 LTI Plan “cliff vest” after five years of continued employment. | |
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 308,000 | |
Shares Issued, Price Per Share | $ 9.94 | |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 401,800 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 2,660,500 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 48 months |
9. STOCK-BASED COMPENSAT
9. STOCK-BASED COMPENSATION (Details) - Schedule of Stock Option Activity - $ / shares | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Schedule of Stock Option Activity [Abstract] | ||
Outstanding at beginning of year | 10,000 | 20,000 |
Outstanding at beginning of year | $ 2.63 | $ 2.63 |
Exercised | 0 | 10,000 |
Exercised | $ 0 | $ 2.63 |
Expired | 0 | 0 |
Expired | $ 0 | $ 0 |
Outstanding at end of year | 10,000 | 10,000 |
Outstanding at end of year | $ 2.63 | $ 2.63 |
9. STOCK-BASED COMPENS_2
9. STOCK-BASED COMPENSATION (Details) - Share-based Payment Arrangement, Cost by Plan - USD ($) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Share-based Payment Arrangement, Cost by Plan [Abstract] | ||
Share-based compensation expense | $ 401,800 | $ 0 |
10. STOCK REPURCHASE PLAN (Deta
10. STOCK REPURCHASE PLAN (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||
Feb. 28, 2019 | Feb. 03, 2019 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 04, 2019 | Apr. 30, 2008 | |
Share-based Payment Arrangement [Abstract] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,000,000 | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 800,000 | |||||
Stock Repurchased During Period, Shares | 8,366 | 16,805 | ||||
Stock Repurchased During Period, Average Price Paid (in Dollars per share) | $ 7.93 | $ 11.31 | ||||
Stock Repurchased During Period, Value (in Dollars) | $ 66,400 | $ 190,100 | $ 256,500 | $ 98,400 |
11. REVENUE RECOGNITION
11. REVENUE RECOGNITION (Details) - Schedule of New Accounting Pronouncements and Changes in Accounting Principles - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | |
ASSETS | ||||||||||
Accounts receivable-Net | $ 3,258,800 | $ 3,258,800 | $ 2,913,700 | |||||||
Inventories-Net | 33,445,600 | 33,445,600 | 26,618,600 | |||||||
Prepaid expenses and other assets | 1,603,500 | 1,603,500 | 1,259,000 | |||||||
Total current assets | 41,507,200 | 41,507,200 | 33,514,600 | |||||||
TOTAL ASSETS | 69,266,300 | 69,266,300 | 61,837,900 | |||||||
LIABILITIES | ||||||||||
Other current liabilities | 4,177,900 | 4,177,900 | 3,517,900 | |||||||
Total liabilities | 43,335,800 | 43,335,800 | 41,435,800 | |||||||
REVENUES | 23,625,400 | $ 40,482,600 | $ 24,681,000 | $ 30,022,300 | $ 38,909,900 | $ 24,186,900 | $ 26,941,200 | $ 21,946,600 | 118,811,300 | 111,984,600 |
COST OF GOODS SOLD | 39,063,600 | 35,824,300 | ||||||||
Gross margin | 15,835,800 | 27,341,000 | 16,218,300 | 20,352,600 | 26,698,200 | 16,536,600 | 18,342,400 | 14,583,100 | 79,747,700 | 76,160,300 |
OPERATING EXPENSE: | ||||||||||
Operating and selling | 18,550,600 | 17,694,700 | ||||||||
Sales commissions | 36,480,400 | 35,359,000 | ||||||||
General and administrative | 16,164,300 | 15,736,300 | ||||||||
Total operating expenses | 71,195,300 | 68,790,000 | ||||||||
INTEREST EXPENSE | 931,300 | 1,119,500 | ||||||||
OTHER INCOME | (1,559,700) | (1,581,900) | ||||||||
EARNINGS BEFORE INCOME TAXES | 9,180,800 | 7,832,700 | ||||||||
INCOME TAXES | 2,502,400 | 2,618,000 | ||||||||
NET EARNINGS | $ 555,500 | $ 2,815,600 | $ 1,490,700 | $ 1,816,600 | $ 2,128,400 | $ 1,036,900 | $ 1,225,300 | $ 824,100 | 6,678,400 | 5,214,700 |
Gross Sales [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 139,040,400 | |||||||||
Discounts and Allowances [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (38,103,500) | |||||||||
Transportation Revenue [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 11,047,700 | |||||||||
Difference between Revenue Guidance in Effect before and after 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 | (18,500) | |||||||||
COST OF GOODS SOLD | (4,893,000) | |||||||||
Gross margin | 4,874,500 | |||||||||
OPERATING EXPENSE: | ||||||||||
Operating and selling | 4,876,500 | |||||||||
Sales commissions | 0 | |||||||||
General and administrative | 0 | |||||||||
Total operating expenses | 4,876,500 | |||||||||
INTEREST EXPENSE | 0 | |||||||||
OTHER INCOME | (2,000) | |||||||||
EARNINGS BEFORE INCOME TAXES | 0 | |||||||||
INCOME TAXES | 0 | |||||||||
NET EARNINGS | 0 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Gross Sales [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (13,193,200) | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Discounts and Allowances [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 13,174,700 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Transportation Revenue [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 0 | |||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [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 | 111,966,100 | |||||||||
COST OF GOODS SOLD | 30,931,300 | |||||||||
Gross margin | 81,034,800 | |||||||||
OPERATING EXPENSE: | ||||||||||
Operating and selling | 22,571,200 | |||||||||
Sales commissions | 35,359,000 | |||||||||
General and administrative | 15,736,300 | |||||||||
Total operating expenses | 73,666,500 | |||||||||
INTEREST EXPENSE | 1,119,500 | |||||||||
OTHER INCOME | (1,583,900) | |||||||||
EARNINGS BEFORE INCOME TAXES | 7,832,700 | |||||||||
INCOME TAXES | 2,618,000 | |||||||||
NET EARNINGS | 5,214,700 | |||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Gross Sales [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 125,847,200 | |||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Discounts and Allowances [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (24,928,800) | |||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Transportation Revenue [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 11,047,700 | |||||||||
UBAM [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 103,717,100 | |||||||||
COST OF GOODS SOLD | 31,132,800 | |||||||||
Gross margin | 72,584,300 | |||||||||
OPERATING EXPENSE: | ||||||||||
Operating and selling | 14,509,500 | |||||||||
Sales commissions | 35,043,200 | |||||||||
General and administrative | 3,602,000 | |||||||||
Total operating expenses | 53,154,700 | |||||||||
OPERATING INCOME | 19,429,600 | |||||||||
UBAM [Member] | Gross Sales [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 121,364,700 | |||||||||
UBAM [Member] | Discounts and Allowances [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (28,657,900) | |||||||||
UBAM [Member] | Transportation Revenue [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 11,010,300 | |||||||||
UBAM [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (18,500) | |||||||||
COST OF GOODS SOLD | (4,893,000) | |||||||||
Gross margin | 4,874,500 | |||||||||
OPERATING EXPENSE: | ||||||||||
Operating and selling | 4,875,500 | |||||||||
Sales commissions | 0 | |||||||||
General and administrative | 0 | |||||||||
Total operating expenses | 4,875,500 | |||||||||
OPERATING INCOME | (1,000) | |||||||||
UBAM [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Gross Sales [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (13,193,900) | |||||||||
UBAM [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Discounts and Allowances [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 13,175,400 | |||||||||
UBAM [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Transportation Revenue [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 0 | |||||||||
UBAM [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 103,698,600 | |||||||||
COST OF GOODS SOLD | 26,239,800 | |||||||||
Gross margin | 77,458,800 | |||||||||
OPERATING EXPENSE: | ||||||||||
Operating and selling | 19,385,000 | |||||||||
Sales commissions | 35,043,200 | |||||||||
General and administrative | 3,602,000 | |||||||||
Total operating expenses | 58,030,200 | |||||||||
OPERATING INCOME | 19,428,600 | |||||||||
UBAM [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Gross Sales [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 108,170,800 | |||||||||
UBAM [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Discounts and Allowances [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (15,482,500) | |||||||||
UBAM [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Transportation Revenue [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 11,010,300 | |||||||||
Publishing [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 10,430,000 | 8,267,500 | ||||||||
COST OF GOODS SOLD | 4,691,500 | |||||||||
Gross margin | 3,576,000 | |||||||||
OPERATING EXPENSE: | ||||||||||
Operating and selling | 987,500 | |||||||||
Sales commissions | 315,700 | |||||||||
General and administrative | 509,600 | |||||||||
Total operating expenses | 1,812,800 | |||||||||
OPERATING INCOME | 1,763,200 | |||||||||
EARNINGS BEFORE INCOME TAXES | $ 2,885,800 | 1,763,200 | ||||||||
Publishing [Member] | Gross Sales [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 17,675,700 | |||||||||
Publishing [Member] | Discounts and Allowances [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (9,445,600) | |||||||||
Publishing [Member] | Transportation Revenue [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 37,400 | |||||||||
Publishing [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 0 | |||||||||
COST OF GOODS SOLD | 0 | |||||||||
Gross margin | 0 | |||||||||
OPERATING EXPENSE: | ||||||||||
Operating and selling | 0 | |||||||||
Sales commissions | 0 | |||||||||
General and administrative | 0 | |||||||||
Total operating expenses | 0 | |||||||||
OPERATING INCOME | 0 | |||||||||
Publishing [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Gross Sales [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 700 | |||||||||
Publishing [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Discounts and Allowances [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (700) | |||||||||
Publishing [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Transportation Revenue [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 0 | |||||||||
Publishing [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 8,267,500 | |||||||||
COST OF GOODS SOLD | 4,691,500 | |||||||||
Gross margin | 3,576,000 | |||||||||
OPERATING EXPENSE: | ||||||||||
Operating and selling | 987,500 | |||||||||
Sales commissions | 315,700 | |||||||||
General and administrative | 509,600 | |||||||||
Total operating expenses | 1,812,800 | |||||||||
OPERATING INCOME | 1,763,200 | |||||||||
Publishing [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Gross Sales [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | 17,676,400 | |||||||||
Publishing [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Discounts and Allowances [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | (9,446,300) | |||||||||
Publishing [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Transportation Revenue [Member] | ||||||||||
LIABILITIES | ||||||||||
REVENUES | $ 37,400 |
12. QUARTERLY RESULTS OF O
12. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Details) - Schedule of Quarterly Financial Information - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | |
Schedule of Quarterly Financial Information [Abstract] | ||||||||||
Net Revenues | $ 23,625,400 | $ 40,482,600 | $ 24,681,000 | $ 30,022,300 | $ 38,909,900 | $ 24,186,900 | $ 26,941,200 | $ 21,946,600 | $ 118,811,300 | $ 111,984,600 |
Gross Margin | 15,835,800 | 27,341,000 | 16,218,300 | 20,352,600 | 26,698,200 | 16,536,600 | 18,342,400 | 14,583,100 | 79,747,700 | 76,160,300 |
Net Earnings | $ 555,500 | $ 2,815,600 | $ 1,490,700 | $ 1,816,600 | $ 2,128,400 | $ 1,036,900 | $ 1,225,300 | $ 824,100 | $ 6,678,400 | $ 5,214,700 |
Basic Earnings Per Share (in Dollars per share) | $ 0.08 | $ 0.34 | $ 0.18 | $ 0.22 | $ 0.26 | $ 0.13 | $ 0.15 | $ 0.10 | $ 0.82 | $ 0.64 |
Diluted Earnings Per Share (in Dollars per share) | $ 0.07 | $ 0.34 | $ 0.18 | $ 0.22 | $ 0.26 | $ 0.13 | $ 0.15 | $ 0.10 | $ 0.81 | $ 0.64 |
13. BUSINESS SEGMENTS (Details)
13. BUSINESS SEGMENTS (Details) | 12 Months Ended |
Feb. 28, 2019 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
13. BUSINESS SEGMENTS (De
13. BUSINESS SEGMENTS (Details) - Schedule of Information by Industry Segment - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Feb. 28, 2019 | Feb. 28, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||
Net Revenues | $ 23,625,400 | $ 40,482,600 | $ 24,681,000 | $ 30,022,300 | $ 38,909,900 | $ 24,186,900 | $ 26,941,200 | $ 21,946,600 | $ 118,811,300 | $ 111,984,600 |
Earnings (Loss) Before Income Taxes | 9,180,800 | 7,832,700 | ||||||||
Publishing [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Revenues | 10,430,000 | 8,267,500 | ||||||||
Earnings (Loss) Before Income Taxes | 2,885,800 | 1,763,200 | ||||||||
Usborne Books and More [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net Revenues | 108,381,300 | 103,717,100 | ||||||||
Earnings (Loss) Before Income Taxes | 19,250,100 | 19,429,600 | ||||||||
Other Segments [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Earnings (Loss) Before Income Taxes | $ (12,955,100) | $ (13,360,100) |
14. FAIR VALUE MEASUREMENTS (De
14. FAIR VALUE MEASUREMENTS (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) | Feb. 28, 2019 | Feb. 28, 2018 |
14. FAIR VALUE MEASUREMENTS (Details) [Line Items] | ||
Lines of Credit, Fair Value Disclosure | $ 0 | |
Long-term Debt, Fair Value | $ 19,123,700 | $ 19,454,500 |
15. DEFERRED REVENUES (Details)
15. DEFERRED REVENUES (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Deferred Revenue, Additions | $ 965,600 | $ 693,000 |
16. SUBSEQUENT EVENT (Details)
16. SUBSEQUENT EVENT (Details) - Subsequent Event [Member] | May 21, 2019$ / shares |
16. SUBSEQUENT EVENT (Details) [Line Items] | |
Dividends Payable, Date Declared | May 21, 2019 |
Common Stock, Dividends, Per Share, Declared | $ 0.05 |