Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 31, 2017 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | May 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EBF | |
Entity Registrant Name | ENNIS, INC. | |
Entity Central Index Key | 33,002 | |
Current Fiscal Year End Date | --02-28 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 25,417,035 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2017 | Feb. 28, 2017 |
Current assets | ||
Cash | $ 84,323 | $ 80,466 |
Accounts receivable, net of allowance for doubtful receivables of $1,442 at May 31, 2017 and $1,674 at February 28, 2017 | 36,359 | 37,368 |
Prepaid expenses | 1,041 | 1,351 |
Prepaid income taxes | 855 | |
Inventories | 29,249 | 27,965 |
Assets held for sale | 1,314 | 1,245 |
Total current assets | 152,286 | 149,250 |
Property, plant and equipment, at cost | ||
Plant, machinery and equipment | 135,005 | 136,584 |
Land and buildings | 53,374 | 53,821 |
Other | 23,670 | 23,644 |
Total property, plant and equipment | 212,049 | 214,049 |
Less accumulated depreciation | 163,423 | 164,054 |
Net property, plant and equipment | 48,626 | 49,995 |
Goodwill | 70,603 | 70,603 |
Trademarks and trade names | 17,417 | 17,699 |
Other intangible assets, net | 34,985 | 36,228 |
Other assets | 481 | 510 |
Total assets | 324,398 | 324,285 |
Current liabilities | ||
Accounts payable | 11,661 | 14,202 |
Accrued expenses | ||
Employee compensation and benefits | 12,175 | 13,515 |
Taxes other than income | 403 | 225 |
Income taxes payable | 3,422 | |
Other | 1,764 | 2,026 |
Total current liabilities | 29,425 | 29,968 |
Long-term debt | 30,000 | 30,000 |
Liability for pension benefits | 4,846 | 4,846 |
Deferred income taxes | 7,105 | 6,953 |
Other liabilities | 1,080 | 1,163 |
Total liabilities | 72,456 | 72,930 |
Commitments and contingencies | ||
Shareholders' equity | ||
Preferred stock $10 par value, authorized 1,000,000 shares none issued | ||
Common stock $2.50 par value, authorized 40,000,000 shares; issued 30,053,443 shares at May 31 and February 28, 2017 | 75,134 | 75,134 |
Additional paid-in capital | 120,391 | 121,525 |
Retained earnings | 154,001 | 150,685 |
Accumulated other comprehensive income (loss): | ||
Minimum pension liability, net of taxes | (15,013) | (15,261) |
Total accumulated other comprehensive income (loss) | (15,013) | (15,261) |
Treasury stock | (82,571) | (80,728) |
Total shareholders' equity | 251,942 | 251,355 |
Total liabilities and shareholders' equity | $ 324,398 | $ 324,285 |
Unaudited Consolidated Balance3
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2017 | Feb. 28, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful receivables | $ 1,442 | $ 1,674 |
Preferred stock, par value | $ 10 | $ 10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 30,053,443 | 30,053,443 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 94,590 | $ 90,410 |
Cost of goods sold | 64,671 | 63,716 |
Gross profit margin | 29,919 | 26,694 |
Selling, general and administrative | 17,372 | 16,071 |
Loss from disposal of assets | 15 | 6 |
Income from operations | 12,532 | 10,617 |
Other income (expense) | ||
Interest expense | (190) | (2) |
Other, net | 13 | (7) |
Total other expense | (177) | (9) |
Earnings from continuing operations before income taxes | 12,355 | 10,608 |
Provision for income taxes | 4,571 | 3,925 |
Earnings from continuing operations | 7,784 | 6,683 |
Income from discontinued operations, net of tax | 2,481 | |
Loss on sale of discontinued operations, net of tax | (26,042) | |
Earnings (loss) from discontinued operations, net of tax | (23,561) | |
Net earnings (loss) | $ 7,784 | $ (16,878) |
Weighted average common shares outstanding | ||
Basic | 25,422,856 | 25,783,770 |
Diluted | 25,436,787 | 25,810,735 |
Earnings (loss) per share - basic and diluted | ||
Continuing operations | $ 0.31 | $ 0.26 |
Discontinued operations | (0.91) | |
Net earnings (loss) | 0.31 | (0.65) |
Cash dividends per share | $ 0.175 | $ 0.175 |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ 7,784 | $ (16,878) |
Foreign currency translation adjustment, net of deferred taxes | 9,940 | |
Adjustment to pension, net of deferred taxes | 248 | |
Comprehensive income (loss) | $ 8,032 | $ (6,938) |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 7,784 | $ (16,878) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation | 1,996 | 1,983 |
Amortization of deferred finance charges | 28 | |
Amortization of intangibles | 1,525 | 1,159 |
Pre-tax loss on sale of discontinued operations | 36,775 | |
Operating cash flows of discontinued operations | 538 | |
Loss from disposal of assets | 15 | 6 |
Bad debt expense, net of recoveries | (166) | 2 |
Stock based compensation | 333 | 339 |
Changes in operating assets and liabilities, net of the effects of acquisitions: | ||
Accounts receivable | 1,175 | 565 |
Prepaid expenses and income taxes | 1,165 | (7,576) |
Inventories | (1,284) | 124 |
Other assets | 1 | 6 |
Accounts payable and accrued expenses | (543) | (2,649) |
Other liabilities | (83) | 14 |
Liability for pension benefits | 400 | 639 |
Net cash provided by operating activities | 12,346 | 15,047 |
Cash flows from investing activities: | ||
Capital expenditures | (731) | (428) |
Purchase of businesses, net of cash acquired | (617) | |
Proceeds from sale of discontinued operations | 107,354 | |
Investing cash flows of discontinued operations | (279) | |
Proceeds from disposal of plant and property | 20 | 7 |
Net cash provided by (used in) investing activities | (711) | 106,037 |
Cash flows from financing activities: | ||
Repayment of debt | (5,000) | |
Dividends | (4,468) | (4,530) |
Purchase of treasury stock | (3,310) | |
Proceeds from exercise of stock options | 2,910 | |
Net cash used in financing activities | (7,778) | (6,620) |
Net change in cash | 3,857 | 114,464 |
Cash at beginning of period | 80,466 | 7,957 |
Cash at end of period | $ 84,323 | $ 122,421 |
Significant Accounting Policies
Significant Accounting Policies and General Matters | 3 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and General Matters | 1. Significant Accounting Policies and General Matters Basis of Presentation These unaudited consolidated financial statements of Ennis, Inc. and its subsidiaries (collectively referred to as the “Company,” “Registrant,” “Ennis,” or “we,” “us,” or “our”) for the period ended May 31, 2017 have been prepared in accordance with generally accepted accounting principles for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2017, from which the accompanying consolidated balance sheet at February 28, 2017 was derived. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation of the interim financial information have been included and are of a normal recurring nature. In preparing the financial statements, the Company is required to make estimates and assumptions that affect the disclosure and reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates and judgments on an ongoing basis, including those related to bad debts, inventory valuations, property, plant and equipment, intangible assets, pension plan, accrued liabilities, and income taxes. The Company bases estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. The results of operations for any interim period are not necessarily indicative of the results of operations for a full year. On May 25, 2016, the Company sold Alstyle Apparel, LLC and its subsidiaries, which constituted the Company’s Apparel Segment, to Gildan Activewear Inc. As a result of this action, the current year and prior year disclosures reflect these operations as discontinued operations and prior year financial information has been restated to reflect this accounting treatment. Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“ FASB ASU Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ASU 2017-04 , In March 2016, the FASB issued Accounting Standards Update ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) ASU 2016-09 , In February 2016, the FASB issued Accounting Standards Update ASU No. 2016-02, Leases (Topic 842) ASU 2016-02 , In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ASU 2016-01 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ASU 2014-09 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ASU 2015-14 |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Doubtful Receivables | 3 Months Ended |
May 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable and Allowance for Doubtful Receivables | 2. Accounts Receivable and Allowance for Doubtful Receivables Accounts receivable are reduced by an allowance for an estimate of amounts that are uncollectible. Substantially all of the Company’s receivables are due from customers in the United States. The Company extends credit to its customers based upon its evaluation of the following factors: (i) the customer’s financial condition, (ii) the amount of credit the customer requests, and (iii) the customer’s actual payment history (which includes disputed invoice resolution). The Company does not typically require its customers to post a deposit or supply collateral. The Company’s allowance for doubtful receivables is based on an analysis that estimates the amount of its total customer receivable balance that is not collectible. This analysis includes assessing a default probability to customers’ receivable balances, which is influenced by several factors including (i) current market conditions, (ii) periodic review of customer creditworthiness, and (iii) review of customer receivable aging and payment trends. The Company writes off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance in the period the payment is received. Credit losses from continuing operations have consistently been within management’s expectations. The following table presents the activity in the Company’s allowance for doubtful receivables (in thousands): Three months ended 2017 2016 Balance at beginning of period $ 1,674 $ 2,041 Bad debt expense, net of recoveries (166 ) 2 Accounts written off (66 ) (256 ) Balance at end of period $ 1,442 $ 1,787 |
Inventories
Inventories | 3 Months Ended |
May 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories The Company uses the lower of last-in, first-out (“ LIFO FIFO The following table summarizes the components of inventories at the different stages of production as of the dates indicated (in thousands): May 31, February 28, Raw material $ 16,986 $ 16,130 Work-in-process 3,397 3,199 Finished goods 8,866 8,636 $ 29,249 $ 27,965 |
Acquisitions
Acquisitions | 3 Months Ended |
May 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions On January 27, 2017, the Company completed the acquisition of Independent Printing Company, Inc. and its related entities (collectively “ Independent Accounts receivable $ 4,252 Inventories 1,539 Other assets 575 Property, plant & equipment 5,526 Customer lists 3,390 Trademarks 2,408 Goodwill 6,066 Accounts payable and accrued liabilities (6,079 ) $ 17,677 The results of operations for Independent are included in the Company’s consolidated financial statements from the date of acquisition. The following table represents certain operating information on a pro forma basis as though all Independent operations had been acquired as of March 1, 2016, after the estimated impact of adjustments such as amortization of intangible assets, interest expense, interest income, and related tax effects (in thousands, except per share amounts): Three months ended Pro forma net sales $ 99,553 Pro forma net earnings 6,883 Pro forma earnings per share—diluted 0.27 The pro forma results are not necessarily indicative of what would have occurred if the acquisitions had been in effect for the periods presented. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
May 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 5. Discontinued Operations On May 25, 2016 the Company sold Alstyle Apparel, LLC and its subsidiaries (the “ Apparel Segment The operating results of these discontinued operations only reflect revenues and expenses that are directly attributable to the Apparel Segment and that have been eliminated from continuing operations. The following tables show the key components on the sale and discontinued operations related to the Apparel Segment that was completed on May 25, 2016 (in thousands): Sales price $ 110,000 Expenses related to disposal of business (130,174 ) Expenses related to sales (1) (4,365 ) Loss on sale before write-off of foreign currency translation adjustment (24,539 ) Write-off of foreign currency translation adjustments recorded in other comprehensive income (16,109 ) Loss on sale of sale of discontinued operations $ (40,648 ) (1) The termination fee, in the amount of $3.0 million, paid as a result of the termination of a prior purchase agreement for the sale of the Apparel Segment to Alstyle Operations, LLC. Three Net sales $ 41,038 Income from discontinued operations before income taxes 3,873 Loss on sale of discontinued operations before income taxes (40,648 ) Loss on discontinued operations before income taxes (36,775 ) Income tax benefit (13,214 ) Net loss from discontinued operations $ (23,561 ) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
May 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets Beginning March 1, 2017, given the general declining trend line of print sales, and its expected continuance into the foreseeable future, the Company elected to treat the recorded value of trademarks/trade names as no longer being an indefinite-lived asset. As such, as of March 1, 2017, the Company began amortizing the carrying value of these assets over their estimated remaining useful life, approximately 17—19 years. The amortization expense associated with this election (a non-cash charge) is expected to impact the Company’s selling, general and administrative expense line by approximately $830,000 during fiscal year 2018. The carrying amount and accumulated amortization of the Company’s intangible assets at each balance sheet date are as follows (in thousands): As of May 31, 2017 Weighted (in years) Gross Accumulated Net Amortized intangible assets Trademarks and trade names 16.8 $ 18,933 $ 1,516 $ 17,417 Customer lists 8.7 57,347 22,532 34,815 Noncompete 0.6 175 100 75 Patent 0.8 783 688 95 Total 11.4 $ 77,238 $ 24,836 $ 52,402 As of February 28, 2017 Amortized intangible assets Trademarks and trade names 8.0 $ 3,642 $ 1,234 $ 2,408 Customer lists 8.9 57,347 21,336 36,011 Noncompete 0.8 175 86 89 Patent 1.0 783 655 128 Total 8.8 $ 61,947 $ 23,311 $ 38,636 May 31, February 28, Non-amortizing intangible assets Trademarks and trade names $ — $ 15,291 Aggregate amortization expense for the three months ended May 31, 2017 and May 31, 2016 was $1.5 million and $1.2 million, respectively. The Company’s estimated amortization expense for the next five fiscal years ending in February of the stated fiscal year is as follows (in thousands): 2018 $ 5,888 2019 5,402 2020 5,320 2021 5,250 2022 5,207 Changes in the net carrying amount of goodwill as of the dates indicated are as follows (in thousands): Balance as of March 1, 2016 $ 64,537 Goodwill acquired 6,066 Goodwill impairment — Balance as of February 28, 2017 70,603 Goodwill acquired — Goodwill impairment — Balance as of May 31, 2017 $ 70,603 During the fiscal year ended February 28, 2017, $6.1 million was added to goodwill related to the acquisition of Independent. |
Other Accrued Expenses
Other Accrued Expenses | 3 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
Other Accrued Expenses | 7. Other Accrued Expenses The following table summarizes the components of other accrued expenses as of the dates indicated (in thousands): May 31, February 28, Accrued taxes $ 101 $ 329 Accrued legal and professional fees 319 414 Accrued interest 173 98 Accrued utilities 90 90 Accrued acquisition related obligations 825 789 Accrued credit card fees 122 119 Other accrued expenses 134 187 $ 1,764 $ 2,026 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
May 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. Long-Term Debt Long-term debt consisted of the following as of the dates indicated (in thousands): May 31, February 28, Revolving credit facility $ 30,000 $ 30,000 The Company has entered into a Second Amended and Restated Credit Agreement, which has been amended from time to time, pursuant to which a credit facility has been extended to the Company (the “ Credit Facility The Credit Facility bears interest at the LIBOR rate plus a spread ranging from 1.0% to 2.0%, which rate was 2.2% (3 month LIBOR + 1.0%) at May 31, 2017 and 1.86% (2 month LIBOR + 1.0%) at February 28, 2017. The rate is determined by our fixed charge coverage ratio of total funded debt to earnings before interest, taxes, depreciation and amortization (“ EBITDA |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
May 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | 9. Shareholders’ Equity Changes in shareholders’ equity accounts for the three months ended May 31, 2017 are as follows (in thousands, except share amounts): Common Stock Additional Retained Accumulated Treasury Stock Shares Amount Capital Earnings Income (Loss) Shares Amount Total Balance March 1, 2017 30,053,443 $ 75,134 $ 121,525 $ 150,685 $ (15,261 ) (4,686,821 ) $ (80,728 ) $ 251,355 Net earnings — — — 7,784 — — — 7,784 Adjustment to pension, net of deferred tax of $152 — — — — 248 — — 248 Dividends paid ($0.175 per share) — — — (4,468 ) — — — (4,468 ) Stock based compensation — — 333 — — — — 333 Exercise of stock options and restricted stock — — (1,467 ) — — 85,189 1,467 — Stock repurchases — — — — — (191,033 ) (3,310 ) (3,310 ) Balance May 31, 2017 30,053,443 $ 75,134 $ 120,391 $ 154,001 $ (15,013 ) (4,792,665 ) $ (82,571 ) $ 251,942 The Board has authorized the repurchase of up to an aggregate of $40.0 million of the Company’s outstanding common stock through a stock repurchase program. Under the repurchase program, share purchases may be made from time to time in the open market or through privately negotiated transactions depending on market conditions, share price, trading volume and other factors. Such purchases, if any, will be made in accordance with applicable insider trading and other securities laws and regulations. These repurchases may be commenced or suspended at any time or from time to time without prior notice. During the three months ended May 31, 2017, the Company, under the program, repurchased 191,033 shares of common stock at an average price of $17.33 per share. Since the program’s inception in October 2008, there have been 1,442,236 common shares repurchased at an average price of $14.99 per share. As of May 31, 2017 there was $18.4 million available to repurchase shares of the Company’s common stock under the program. |
Stock Option Plan and Stock Bas
Stock Option Plan and Stock Based Compensation | 3 Months Ended |
May 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plan and Stock Based Compensation | 10. Stock Option Plan and Stock Based Compensation The Company grants stock options and restricted stock to key executives and managerial employees and non-employee directors. At May 31, 2017, the Company had one stock option plan, the 2004 Long-Term Incentive Plan of Ennis, Inc., as amended and restated as of June 30, 2011, formerly the 1998 Option and Restricted Stock Plan amended and restated as of May 14, 2008 (the “ Plan The Company recognizes compensation expense for stock options and restricted stock grants on a straight-line basis over the requisite service period. For the three months ended May 31, 2017 and May 31, 2016, the Company included compensation expense related to share-based compensation of $0.3 million ($0.2 million net of tax), and $0.3 million ($0.2 million net of tax), respectively, in selling, general, and administrative expenses. Stock Options The Company had the following stock option activity for the three months ended May 31, 2017: Number (exact quantity) Weighted Weighted (in years) Aggregate (in thousands) Outstanding at March 1, 2017 172,496 $ 15.95 4.2 $ 223 Granted — — Terminated — — Exercised — — Outstanding at May 31, 2017 172,496 $ 15.95 4.0 $ 200 Exercisable at May 31, 2017 170,880 $ 15.97 3.9 $ 196 (a) Intrinsic value is measured as the excess of fair market value of the Company’s common stock as reported on the New York Stock Exchange over the applicable exercise price. No stock options were granted during the three months ended May 31, 2017 and May 31, 2016. A summary of the stock options exercised and tax benefits realized from stock based compensation is presented below (in thousands): Three months ended May 31, 2017 2016 Total cash received $ — $ 2,910 Income tax benefits — — Total grant-date fair value — 532 Intrinsic value — 969 A summary of the Company’s unvested stock options at May 31, 2017 and the changes during the three months ended May 31, 2017 are presented below: Number Weighted Unvested at March 1, 2017 5,073 $ 2.41 New grants — — Vested (3,457 ) 2.48 Forfeited — — Unvested at May 31, 2017 1,616 $ 2.24 As of May 31, 2017, there was approximately $2,000 of unrecognized compensation cost related to unvested stock options granted under the Plan. The weighted average remaining requisite service period of the unvested stock options was 0.9 years. Restricted Stock The Company had the following restricted stock grant activity for the three months ended May 31, 2017: Number of Weighted Outstanding at March 1, 2017 166,546 $ 16.35 Granted 74,900 16.30 Terminated — — Vested (85,189 ) 15.87 Outstanding at May 31, 2017 156,257 $ 16.60 As of May 31, 2017, the total remaining unrecognized compensation cost related to unvested restricted stock granted under the Plan was approximately $2.4 million. The weighted average remaining requisite service period of the unvested restricted stock awards was 2.1 years. |
Pension Plan
Pension Plan | 3 Months Ended |
May 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plan | 11. Pension Plan The Company and certain subsidiaries have a noncontributory defined benefit retirement plan (the “ Pension Plan Pension expense is composed of the following components included in cost of goods sold and selling, general, and administrative expenses in the Company’s consolidated statements of earnings (in thousands): Three months ended 2017 2016 Components of net periodic benefit cost Service cost $ 271 $ 291 Interest cost 568 593 Expected return on plan assets (949 ) (916 ) Amortization of: Unrecognized net loss 510 671 Net periodic benefit cost $ 400 $ 639 The Company is required to make contributions to the Pension Plan. These contributions are required under the minimum funding requirements of ERISA. Due to the enactment of the Highway and Transportation Funding Act (HATFA) in August 2014, plan sponsors can calculate the discount rate used to measure the Pension Plan liability using a 25-year average of interest rates plus or minus a corridor. The Company’s minimum required contribution to the Pension Plan is zero for the Pension Plan year ending February 28, 2018. However, the Company expects to make a cash contribution to the Pension Plan of between $2.0 million and $3.0 million during fiscal year 2018. The Company contributed $3.0 million to the Pension Plan during fiscal year 2017. |
Earnings (loss) per Share
Earnings (loss) per Share | 3 Months Ended |
May 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per Share | 12. Earnings (loss) per Share Basic earnings (loss) per share have been computed by dividing net earnings by the weighted average number of common shares outstanding during the applicable period. Diluted earnings (loss) per share reflect the potential dilution that could occur if stock options or other contracts to issue common shares were exercised or converted into common stock. For the three months ended May 31, 2017, 95,692 shares related to stock options were not included in the diluted earnings per share computation because the exercise price exceeded the average fair market value of the Company’s stock. For the three months ended May 31, 2016, all options were included in the diluted earnings (loss) per share computation because their average fair market value exceeded the exercise price of the Company’s stock. The following table sets forth the computation for basic and diluted earnings (loss) per share for the periods indicated: Three months ended 2017 2016 Basic weighted average common shares outstanding 25,422,856 25,783,770 Effect of dilutive options 13,931 26,965 Diluted weighted average common shares outstanding 25,436,787 25,810,735 Earnings (loss) per share—basic and diluted Earnings per share on continuing operations $ 0.31 $ 0.26 Earnings per share on discontinued operations — 0.10 Loss per share on sale of discontinued operations — (1.01 ) Loss on discontinued operations — (0.91 ) Net earnings (loss) $ 0.31 $ (0.65 ) Cash dividends $ 0.175 $ 0.175 |
Concentrations of Risk
Concentrations of Risk | 3 Months Ended |
May 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | 13. Concentrations of Risk Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and trade receivables. Cash is placed with high-credit quality financial institutions. The Company believes its credit risk with respect to trade receivables is limited due to industry and geographic diversification. As disclosed on the Consolidated Balance Sheets, the Company maintains an allowance for doubtful receivables to cover the Company’s estimate of credit losses associated with accounts receivable. The Company, for quality and pricing reasons, purchases its paper products from a limited number of suppliers. While other sources may be available to the Company to purchase these products, they may not be available at the cost or at the quality the Company has come to expect. For the purposes of the Consolidated Statements of Cash Flows, the Company considers cash to include cash on hand and in bank accounts. The Federal Deposit Insurance Corporation insures accounts up to $250,000. At May 31, 2017, cash balances included $83.4 million that was not federally insured because it represented amounts in individual accounts above the federally insured limit for each such account. This at-risk amount is subject to fluctuation on a daily basis. While management does not believe there is significant risk with respect to such deposits, we cannot be assured that we will not experience losses on our deposits. |
Subsequent Events
Subsequent Events | 3 Months Ended |
May 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On June 19, 2017, the Board declared a quarterly cash dividend of 20 cents per share, which will be paid on August 7, 2017 to the shareholders of record on July 7, 2017. |
Significant Accounting Polici21
Significant Accounting Policies and General Matters (Policies) | 3 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited consolidated financial statements of Ennis, Inc. and its subsidiaries (collectively referred to as the “Company,” “Registrant,” “Ennis,” or “we,” “us,” or “our”) for the period ended May 31, 2017 have been prepared in accordance with generally accepted accounting principles for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2017, from which the accompanying consolidated balance sheet at February 28, 2017 was derived. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation of the interim financial information have been included and are of a normal recurring nature. In preparing the financial statements, the Company is required to make estimates and assumptions that affect the disclosure and reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates and judgments on an ongoing basis, including those related to bad debts, inventory valuations, property, plant and equipment, intangible assets, pension plan, accrued liabilities, and income taxes. The Company bases estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. The results of operations for any interim period are not necessarily indicative of the results of operations for a full year. On May 25, 2016, the Company sold Alstyle Apparel, LLC and its subsidiaries, which constituted the Company’s Apparel Segment, to Gildan Activewear Inc. As a result of this action, the current year and prior year disclosures reflect these operations as discontinued operations and prior year financial information has been restated to reflect this accounting treatment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“ FASB ASU Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ASU 2017-04 , In March 2016, the FASB issued Accounting Standards Update ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) ASU 2016-09 , In February 2016, the FASB issued Accounting Standards Update ASU No. 2016-02, Leases (Topic 842) ASU 2016-02 , In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ASU 2016-01 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ASU 2014-09 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ASU 2015-14 |
Accounts Receivable and Allow22
Accounts Receivable and Allowance for Doubtful Receivables (Tables) | 3 Months Ended |
May 31, 2017 | |
Receivables [Abstract] | |
Allowance for Doubtful Receivables | The following table presents the activity in the Company’s allowance for doubtful receivables (in thousands): Three months ended 2017 2016 Balance at beginning of period $ 1,674 $ 2,041 Bad debt expense, net of recoveries (166 ) 2 Accounts written off (66 ) (256 ) Balance at end of period $ 1,442 $ 1,787 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
May 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table summarizes the components of inventories at the different stages of production as of the dates indicated (in thousands): May 31, February 28, Raw material $ 16,986 $ 16,130 Work-in-process 3,397 3,199 Finished goods 8,866 8,636 $ 29,249 $ 27,965 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
May 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Preliminary Purchase Price Allocations | Accounts receivable $ 4,252 Inventories 1,539 Other assets 575 Property, plant & equipment 5,526 Customer lists 3,390 Trademarks 2,408 Goodwill 6,066 Accounts payable and accrued liabilities (6,079 ) $ 17,677 |
Summary of Operating Information on a Pro Forma Basis | The following table represents certain operating information on a pro forma basis as though all Independent operations had been acquired as of March 1, 2016, after the estimated impact of adjustments such as amortization of intangible assets, interest expense, interest income, and related tax effects (in thousands, except per share amounts): Three months ended Pro forma net sales $ 99,553 Pro forma net earnings 6,883 Pro forma earnings per share—diluted 0.27 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
May 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations Related to Apparel Segment | The following tables show the key components on the sale and discontinued operations related to the Apparel Segment that was completed on May 25, 2016 (in thousands): Sales price $ 110,000 Expenses related to disposal of business (130,174 ) Expenses related to sales (1) (4,365 ) Loss on sale before write-off of foreign currency translation adjustment (24,539 ) Write-off of foreign currency translation adjustments recorded in other comprehensive income (16,109 ) Loss on sale of sale of discontinued operations $ (40,648 ) (1) The termination fee, in the amount of $3.0 million, paid as a result of the termination of a prior purchase agreement for the sale of the Apparel Segment to Alstyle Operations, LLC. Three Net sales $ 41,038 Income from discontinued operations before income taxes 3,873 Loss on sale of discontinued operations before income taxes (40,648 ) Loss on discontinued operations before income taxes (36,775 ) Income tax benefit (13,214 ) Net loss from discontinued operations $ (23,561 ) |
Goodwill and Other Intangible26
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
May 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount and Accumulated Amortization of Intangible Assets | The carrying amount and accumulated amortization of the Company’s intangible assets at each balance sheet date are as follows (in thousands): As of May 31, 2017 Weighted (in years) Gross Accumulated Net Amortized intangible assets Trademarks and trade names 16.8 $ 18,933 $ 1,516 $ 17,417 Customer lists 8.7 57,347 22,532 34,815 Noncompete 0.6 175 100 75 Patent 0.8 783 688 95 Total 11.4 $ 77,238 $ 24,836 $ 52,402 As of February 28, 2017 Amortized intangible assets Trademarks and trade names 8.0 $ 3,642 $ 1,234 $ 2,408 Customer lists 8.9 57,347 21,336 36,011 Noncompete 0.8 175 86 89 Patent 1.0 783 655 128 Total 8.8 $ 61,947 $ 23,311 $ 38,636 |
Non-amortizing Intangible Assets | May 31, February 28, Non-amortizing intangible assets Trademarks and trade names $ — $ 15,291 |
Estimated Amortization Expense | The Company’s estimated amortization expense for the next five fiscal years ending in February of the stated fiscal year is as follows (in thousands): 2018 $ 5,888 2019 5,402 2020 5,320 2021 5,250 2022 5,207 |
Changes in Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill as of the dates indicated are as follows (in thousands): Balance as of March 1, 2016 $ 64,537 Goodwill acquired 6,066 Goodwill impairment — Balance as of February 28, 2017 70,603 Goodwill acquired — Goodwill impairment — Balance as of May 31, 2017 $ 70,603 |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 3 Months Ended |
May 31, 2017 | |
Text Block [Abstract] | |
Components of Other Accrued Expenses | The following table summarizes the components of other accrued expenses as of the dates indicated (in thousands): May 31, February 28, Accrued taxes $ 101 $ 329 Accrued legal and professional fees 319 414 Accrued interest 173 98 Accrued utilities 90 90 Accrued acquisition related obligations 825 789 Accrued credit card fees 122 119 Other accrued expenses 134 187 $ 1,764 $ 2,026 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
May 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following as of the dates indicated (in thousands): May 31, February 28, Revolving credit facility $ 30,000 $ 30,000 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
May 31, 2017 | |
Equity [Abstract] | |
Changes in Shareholders' Equity | Changes in shareholders’ equity accounts for the three months ended May 31, 2017 are as follows (in thousands, except share amounts): Common Stock Additional Retained Accumulated Treasury Stock Shares Amount Capital Earnings Income (Loss) Shares Amount Total Balance March 1, 2017 30,053,443 $ 75,134 $ 121,525 $ 150,685 $ (15,261 ) (4,686,821 ) $ (80,728 ) $ 251,355 Net earnings — — — 7,784 — — — 7,784 Adjustment to pension, net of deferred tax of $152 — — — — 248 — — 248 Dividends paid ($0.175 per share) — — — (4,468 ) — — — (4,468 ) Stock based compensation — — 333 — — — — 333 Exercise of stock options and restricted stock — — (1,467 ) — — 85,189 1,467 — Stock repurchases — — — — — (191,033 ) (3,310 ) (3,310 ) Balance May 31, 2017 30,053,443 $ 75,134 $ 120,391 $ 154,001 $ (15,013 ) (4,792,665 ) $ (82,571 ) $ 251,942 |
Stock Option Plan and Stock B30
Stock Option Plan and Stock Based Compensation (Tables) | 3 Months Ended |
May 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | The Company had the following stock option activity for the three months ended May 31, 2017: Number (exact quantity) Weighted Weighted (in years) Aggregate (in thousands) Outstanding at March 1, 2017 172,496 $ 15.95 4.2 $ 223 Granted — — Terminated — — Exercised — — Outstanding at May 31, 2017 172,496 $ 15.95 4.0 $ 200 Exercisable at May 31, 2017 170,880 $ 15.97 3.9 $ 196 (a) Intrinsic value is measured as the excess of fair market value of the Company’s common stock as reported on the New York Stock Exchange over the applicable exercise price. |
Summary of Stock Options Exercised and Tax Benefits Realized from Stock Based Compensation | A summary of the stock options exercised and tax benefits realized from stock based compensation is presented below (in thousands): Three months ended May 31, 2017 2016 Total cash received $ — $ 2,910 Income tax benefits — — Total grant-date fair value — 532 Intrinsic value — 969 |
Summary of Unvested Stock Options | A summary of the Company’s unvested stock options at May 31, 2017 and the changes during the three months ended May 31, 2017 are presented below: Number Weighted Unvested at March 1, 2017 5,073 $ 2.41 New grants — — Vested (3,457 ) 2.48 Forfeited — — Unvested at May 31, 2017 1,616 $ 2.24 |
Restricted Stock Grant Activity | The Company had the following restricted stock grant activity for the three months ended May 31, 2017: Number of Weighted Outstanding at March 1, 2017 166,546 $ 16.35 Granted 74,900 16.30 Terminated — — Vested (85,189 ) 15.87 Outstanding at May 31, 2017 156,257 $ 16.60 |
Pension Plan (Tables)
Pension Plan (Tables) | 3 Months Ended |
May 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Pension Expense Composed of Components Included in Cost of Goods Sold and Selling, General and Administrative Expenses | Pension expense is composed of the following components included in cost of goods sold and selling, general, and administrative expenses in the Company’s consolidated statements of earnings (in thousands): Three months ended 2017 2016 Components of net periodic benefit cost Service cost $ 271 $ 291 Interest cost 568 593 Expected return on plan assets (949 ) (916 ) Amortization of: Unrecognized net loss 510 671 Net periodic benefit cost $ 400 $ 639 |
Earnings (loss) per Share (Tabl
Earnings (loss) per Share (Tables) | 3 Months Ended |
May 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation for Basic and Diluted Earnings (loss) per Share | The following table sets forth the computation for basic and diluted earnings (loss) per share for the periods indicated: Three months ended 2017 2016 Basic weighted average common shares outstanding 25,422,856 25,783,770 Effect of dilutive options 13,931 26,965 Diluted weighted average common shares outstanding 25,436,787 25,810,735 Earnings (loss) per share—basic and diluted Earnings per share on continuing operations $ 0.31 $ 0.26 Earnings per share on discontinued operations — 0.10 Loss per share on sale of discontinued operations — (1.01 ) Loss on discontinued operations — (0.91 ) Net earnings (loss) $ 0.31 $ (0.65 ) Cash dividends $ 0.175 $ 0.175 |
Accounts Receivable and Allow33
Accounts Receivable and Allowance for Doubtful Receivables - Allowance for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Receivables [Abstract] | ||
Balance at beginning of period | $ 1,674 | $ 2,041 |
Bad debt expense, net of recoveries | (166) | 2 |
Accounts written off | (66) | (256) |
Balance at end of period | $ 1,442 | $ 1,787 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | May 31, 2017 | Feb. 28, 2017 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 16,986 | $ 16,130 |
Work-in-process | 3,397 | 3,199 |
Finished goods | 8,866 | 8,636 |
Inventories | $ 29,249 | $ 27,965 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
May 31, 2017USD ($) | May 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jan. 27, 2017USD ($)LocationFacilities | |
Business Acquisition [Line Items] | ||||
Net sales | $ 94,590 | $ 90,410 | ||
Independent Printing Company, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Total purchase consideration | $ 17,677 | |||
Net sales | $ 37,000 | |||
Number of location | Location | 4 | |||
Number of folder facilities | Facilities | 4 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Purchase Price Allocations (Detail) - USD ($) $ in Thousands | May 31, 2017 | Feb. 28, 2017 | Jan. 27, 2017 | Feb. 29, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 70,603 | $ 70,603 | $ 64,537 | |
Independent Printing Company, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 4,252 | |||
Inventories | 1,539 | |||
Other assets | 575 | |||
Property, plant & equipment | 5,526 | |||
Goodwill | 6,066 | |||
Accounts payable and accrued liabilities | (6,079) | |||
Total purchase consideration | 17,677 | |||
Independent Printing Company, Inc. [Member] | Customer Lists [Member] | ||||
Business Acquisition [Line Items] | ||||
Customer lists and Trademarks | 3,390 | |||
Independent Printing Company, Inc. [Member] | Trademarks [Member] | ||||
Business Acquisition [Line Items] | ||||
Customer lists and Trademarks | $ 2,408 |
Acquisitions - Summary of Opera
Acquisitions - Summary of Operating Information on Pro Forma Basis (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended |
May 31, 2016USD ($)$ / shares | |
Business Combinations [Abstract] | |
Pro forma net sales | $ 99,553 |
Pro forma net earnings | $ 6,883 |
Pro forma earnings per share-diluted | $ / shares | $ 0.27 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) $ in Millions | May 25, 2016USD ($) |
Alstyle Apparel, LLC [Member] | Gildan Activewear Inc. [Member] | Gildan Purchase Agreement [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase price, cash to be received | $ 110 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations Related to the Apparel Segment (Detail) - USD ($) $ in Thousands | May 25, 2016 | May 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss on discontinued operations before income taxes | $ (36,775) | ||
Earnings (loss) from discontinued operations, net of tax | (23,561) | ||
Apparel Segment [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales price | $ 110,000 | ||
Expenses related to disposal of business | (130,174) | ||
Expenses related to sales | [1] | (4,365) | |
Loss on sale before write-off of foreign currency translation adjustment | (24,539) | ||
Write-off of foreign currency translation adjustments recorded in other comprehensive income | (16,109) | ||
Loss on sale of sale of discontinued operations | $ (40,648) | (40,648) | |
Net sales | 41,038 | ||
Income from discontinued operations before income taxes | 3,873 | ||
Loss on discontinued operations before income taxes | (36,775) | ||
Income tax benefit | (13,214) | ||
Earnings (loss) from discontinued operations, net of tax | $ (23,561) | ||
[1] | The termination fee, in the amount of $3.0 million, paid as a result of the termination of a prior purchase agreement for the sale of the Apparel Segment to Alstyle Operations, LLC. |
Discontinued Operations - Sch40
Discontinued Operations - Schedule of Discontinued Operations Related to the Apparel Segment (Parenthetical) (Detail) $ in Millions | Feb. 28, 2017USD ($) |
Apparel Segment [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Termination fee paid | $ 3 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | Mar. 01, 2017 | May 31, 2017 | May 31, 2016 | Feb. 28, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of trade names, customer lists, and patent | $ 1,525,000 | $ 1,159,000 | ||
Goodwill acquired | $ 6,066,000 | |||
Selling, General and Administrative [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of trade names, customer lists, and patent | $ 830,000 | |||
Independent Printing Company, Inc. [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill acquired | $ 6,100,000 | |||
Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Remaining estimated useful life | 17 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Remaining estimated useful life | 19 years |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
May 31, 2017 | Feb. 28, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 11 years 4 months 24 days | 8 years 9 months 18 days |
Gross Carrying Amount | $ 77,238 | $ 61,947 |
Accumulated Amortization | 24,836 | 23,311 |
Amortized intangible assets, Net | $ 52,402 | $ 38,636 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 16 years 9 months 18 days | 8 years |
Gross Carrying Amount | $ 18,933 | $ 3,642 |
Accumulated Amortization | 1,516 | 1,234 |
Amortized intangible assets, Net | $ 17,417 | $ 2,408 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 8 years 8 months 12 days | 8 years 10 months 25 days |
Gross Carrying Amount | $ 57,347 | $ 57,347 |
Accumulated Amortization | 22,532 | 21,336 |
Amortized intangible assets, Net | $ 34,815 | $ 36,011 |
Noncompete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 7 months 6 days | 9 months 18 days |
Gross Carrying Amount | $ 175 | $ 175 |
Accumulated Amortization | 100 | 86 |
Amortized intangible assets, Net | $ 75 | $ 89 |
Patent [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 9 months 18 days | 1 year |
Gross Carrying Amount | $ 783 | $ 783 |
Accumulated Amortization | 688 | 655 |
Amortized intangible assets, Net | $ 95 | $ 128 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Non-amortizing Intangible Assets (Detail) $ in Thousands | Feb. 28, 2017USD ($) |
Non-amortizing intangible assets: | |
Non-amortizing intangible assets, Trademarks and trade names | $ 15,291 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Estimated Amortization Expense (Detail) $ in Thousands | Feb. 28, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 5,888 |
2,019 | 5,402 |
2,020 | 5,320 |
2,021 | 5,250 |
2,022 | $ 5,207 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets - Changes in Net Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
May 31, 2017 | Feb. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Beginning balance | $ 70,603 | $ 64,537 |
Goodwill acquired | 6,066 | |
Goodwill impairment | 0 | 0 |
Goodwill, Ending balance | $ 70,603 | $ 70,603 |
Other Accrued Expenses - Compon
Other Accrued Expenses - Components of Other Accrued Expenses (Detail) - USD ($) $ in Thousands | May 31, 2017 | Feb. 28, 2017 |
Payables and Accruals [Abstract] | ||
Accrued taxes | $ 101 | $ 329 |
Accrued legal and professional fees | 319 | 414 |
Accrued interest | 173 | 98 |
Accrued utilities | 90 | 90 |
Accrued acquisition related obligations | 825 | 789 |
Accrued credit card fees | 122 | 119 |
Other accrued expenses | 134 | 187 |
Other accrued expenses, Total | $ 1,764 | $ 2,026 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | May 31, 2017 | Feb. 28, 2017 |
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 30,000 | $ 30,000 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 30,000 | $ 30,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |
May 31, 2017 | Feb. 28, 2017 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, outstanding borrowings | $ 30,000,000 | |
Second Amendment [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility maturity date | Aug. 11, 2020 | |
Revolving credit facility, maximum borrowing capacity | $ 100,000,000 | |
Revolving credit facility, additional borrowing capacity | $ 50,000,000 | |
Fixed charge coverage ratio, minimum | 1.25 | |
Line of credit facility, borrowing capacity description | (i) the Company's net leverage ratio may not exceed 3.001.00, (ii) the Company's fixed charge coverage ratio may not be less than 1.251.00, and (iii) the Company may make dividends or distributions to shareholders so long as (a) no event of default has occurred and its continuing and (b) the Company's net leverage ratio both before and after giving effect to any such dividend or distribution is equal to or less than 2.501.00. | |
Revolving credit facility, interest rate description | LIBOR rate plus a spread ranging from 1.0% to 2.0%, which rate was 2.2% (3 month LIBOR + 1.0%) at May 31, 2017 and 1.86% (2 month LIBOR + 1.0%) at February 28, 2017. | |
Revolving credit facility, interest rate variable basis spread, option one | 2.20% | 1.86% |
Revolving credit facility, interest rate variable basis spread, option two | 1.00% | 1.00% |
Second Amendment [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Net leverage ratio | 3 | |
Revolving credit facility, variable basis spread | 2.00% | |
Second Amendment [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, variable basis spread | 1.00% | |
Second Amendment [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Dividends or Distributions Effect [Member] | ||
Line of Credit Facility [Line Items] | ||
Net leverage ratio | 2.50 | |
Second Amendment [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, outstanding borrowings | $ 20,000,000 | |
Second Amendment [Member] | Swing-line Loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, outstanding borrowings | 15,000,000 | |
Third Amendment [Member] | Standby Letters of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, outstanding borrowings | 1,200,000 | |
Revolving credit facility, remaining borrowing capacity | $ 68,800,000 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Shareholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 103 Months Ended | |
May 31, 2017 | May 31, 2016 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance, Amount | $ 251,355 | ||
Beginning Balance, Shares | 30,053,443 | ||
Net earnings | $ 7,784 | $ (16,878) | |
Adjustment to pension, net of deferred tax of $152 | 248 | ||
Dividends paid ($0.175 per share) | (4,468) | ||
Stock based compensation | 333 | ||
Stock repurchases | $ (3,310) | ||
Stock repurchases, shares | (191,033) | (1,442,236) | |
Ending Balance, Amount | $ 251,942 | $ 251,942 | |
Ending Balance, Shares | 30,053,443 | 30,053,443 | |
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance, Amount | $ 75,134 | ||
Beginning Balance, Shares | 30,053,443 | ||
Ending Balance, Amount | $ 75,134 | $ 75,134 | |
Ending Balance, Shares | 30,053,443 | 30,053,443 | |
Additional Paid-in Capital [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance, Amount | $ 121,525 | ||
Stock based compensation | 333 | ||
Exercise of stock options and restricted stock | (1,467) | ||
Ending Balance, Amount | 120,391 | $ 120,391 | |
Retained Earnings [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance, Amount | 150,685 | ||
Net earnings | 7,784 | ||
Dividends paid ($0.175 per share) | (4,468) | ||
Ending Balance, Amount | 154,001 | 154,001 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance, Amount | (15,261) | ||
Adjustment to pension, net of deferred tax of $152 | 248 | ||
Ending Balance, Amount | (15,013) | (15,013) | |
Treasury Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance, Amount | $ (80,728) | ||
Beginning Balance, Treasury Stock, Shares | (4,686,821) | ||
Exercise of stock options and restricted stock | $ 1,467 | ||
Exercise of stock options and restricted stock, shares | 85,189 | ||
Stock repurchases | $ (3,310) | ||
Stock repurchases, shares | (191,033) | ||
Ending Balance, Amount | $ (82,571) | $ (82,571) | |
Ending Balance, Treasury Stock, Shares | (4,792,665) | (4,792,665) |
Shareholders' Equity - Change50
Shareholders' Equity - Changes in Shareholders' Equity (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Adjustment to pension, deferred tax | $ 152 | |
Dividends paid, per share amount | $ 0.175 | $ 0.175 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | May 31, 2017USD ($) | May 31, 2017USD ($)$ / sharesshares | May 31, 2017USD ($)$ / sharesshares |
Statement of Stockholders' Equity [Abstract] | |||
Repurchase of common stock through a stock repurchase program | $ 40,000,000 | $ 40,000,000 | $ 40,000,000 |
Repurchase of common stock | shares | 191,033 | 1,442,236 | |
Repurchase of common stock, average cost per share | $ / shares | $ 17.33 | $ 14.99 | |
Total amount available to repurchase of shares | $ 18,400,000 |
Stock Option Plan and Stock B52
Stock Option Plan and Stock Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unissued common stock reserved | 529,408 | |
Stock option award maximum term | 10 years | |
Share based compensation arrangements by share based payment award vesting period maximum | 5 years | |
Number of stock options granted | 0 | 0 |
Unrecognized compensation cost related to unvested stock options granted | $ 2,000 | |
Remaining unrecognized compensation cost related to unvested restricted stock | $ 2,400,000 | |
Weighted average remaining requisite service period of the unvested restricted stock awards | 2 years 1 month 6 days | |
Unvested Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average remaining requisite service period of the unvested stock options | 10 months 25 days | |
Selling, General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense related share based compensation before tax | $ 300,000 | $ 300,000 |
Compensation expense related share based compensation net of tax | $ 200,000 | $ 200,000 |
Stock Option Plan and Stock B53
Stock Option Plan and Stock Based Compensation - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 01, 2017 | May 31, 2017 | May 31, 2016 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of Shares, Options Outstanding, Beginning Balance | 172,496 | 172,496 | |
Number of Shares, Granted | 0 | 0 | |
Number of Shares, Terminated | 0 | ||
Number of Shares, Exercised | 0 | ||
Number of Shares, Options Outstanding, Ending Balance | 172,496 | ||
Weighted Average Exercise Price, Beginning Balance | $ 15.95 | $ 15.95 | |
Weighted Average Exercise Price, Granted | 0 | ||
Weighted Average Exercise Price, Terminated | 0 | ||
Weighted Average Exercise Price, Exercised | 0 | ||
Weighted Average Exercise Price, Ending Balance | $ 15.95 | ||
Weighted Average Remaining Contractual Life, Ending Balance | 4 years 2 months 12 days | 4 years | |
Aggregate Intrinsic Value | $ 223 | $ 200 | |
Number of Shares, Exercisable | 170,880 | ||
Weighted Average Exercise Price, Exercisable | $ 15.97 | ||
Weighted Average Remaining Contractual Life, Exercisable | 3 years 10 months 25 days | ||
Aggregate Intrinsic Value, Exercisable | $ 196 |
Stock Option Plan and Stock B54
Stock Option Plan and Stock Based Compensation - Summary of Stock Options Exercised and Tax Benefits Realized from Stock Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Total cash received | $ 2,910 | |
Income tax benefits | $ 0 | 0 |
Total grant-date fair value | 532 | |
Intrinsic value | $ 969 |
Stock Option Plan and Stock B55
Stock Option Plan and Stock Based Compensation - Summary of Unvested Stock Options (Detail) - $ / shares | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Unvested Beginning Balance, Number of Options | 5,073 | |
New grants, Number of Options | 0 | 0 |
Vested, Number of Options | (3,457) | |
Forfeited, Number of Options | 0 | |
Unvested Ending Balance, Number of Options | 1,616 | |
Unvested Beginning Balance, Weighted Average Grant Date Fair Value | $ 2.41 | |
New grants, Weighted Average Grant Date Fair Value | 0 | |
Vested, Weighted Average Grant Date Fair Value | 2.48 | |
Forfeited, Weighted Average Grant Date Fair Value | 0 | |
Unvested Ending Balance, Weighted Average Grant Date Fair Value | $ 2.24 |
Stock Option Plan and Stock B56
Stock Option Plan and Stock Based Compensation - Restricted Stock Grant Activity (Detail) - Restricted Stock [Member] | 3 Months Ended |
May 31, 2017$ / sharesshares | |
Restricted stock grant activity | |
Outstanding at Beginning, Number of Shares | shares | 166,546 |
Number of Shares, Granted | shares | 74,900 |
Number of Shares, Terminated | shares | 0 |
Number of Shares, Vested | shares | (85,189) |
Outstanding at Ending, Number of Shares | shares | 156,257 |
Outstanding at Beginning, Weighted Average Grant Date Fair value | $ / shares | $ 16.35 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 16.30 |
Weighted Average Grant Date Fair Value, Terminated | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 15.87 |
Outstanding at Ending, Weighted Average Grant Date Fair value | $ / shares | $ 16.60 |
Pension Plan - Additional Infor
Pension Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
May 31, 2017 | Feb. 28, 2018 | Feb. 28, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employees covered under noncontributory Pension Plan | 20.00% | ||
Compensation period preceding retirement and termination | 5 years | ||
Expected contributions | $ 3,000,000 | ||
Period used for calculating Pension Plan liability | 25 years | ||
Scenario Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum required contribution to the plan is approximately | $ 0 | ||
Minimum [Member] | Scenario Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions | 2,000,000 | ||
Maximum [Member] | Scenario Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions | $ 3,000,000 |
Pension Plan - Summary of Pensi
Pension Plan - Summary of Pension Expense Composed of Components Included in Cost of Goods Sold and Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Components of net periodic benefit cost | ||
Service cost | $ 271 | $ 291 |
Interest cost | 568 | 593 |
Expected return on plan assets | (949) | (916) |
Amortization of: | ||
Unrecognized net loss | 510 | 671 |
Net periodic benefit cost | $ 400 | $ 639 |
Earnings (loss) per Share - Add
Earnings (loss) per Share - Additional Information (Detail) | 3 Months Ended |
May 31, 2017shares | |
Earnings Per Share [Abstract] | |
Stock options not included in the diluted earnings per share computation | 95,692 |
Earnings (loss) per Share - Com
Earnings (loss) per Share - Computation for Basic and Diluted Earnings (loss) per Share (Detail) - $ / shares | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding | 25,422,856 | 25,783,770 |
Effect of dilutive options | 13,931 | 26,965 |
Diluted weighted average common shares outstanding | 25,436,787 | 25,810,735 |
Earnings (loss) per share-basic and diluted | ||
Earnings per share on continuing operations | $ 0.31 | $ 0.26 |
Earnings per share on discontinued operations | 0.10 | |
Loss per share on sale of discontinued operations | (1.01) | |
Loss on discontinued operations | (0.91) | |
Net earnings (loss) | 0.31 | (0.65) |
Cash dividends | $ 0.175 | $ 0.175 |
Concentrations of Risk - Additi
Concentrations of Risk - Additional Information (Detail) | May 31, 2017USD ($) |
Risks and Uncertainties [Abstract] | |
Maximum insurance available to depositors under the FDIC's general deposit insurance rules | $ 250,000 |
Cash balances not federally insured | $ 83,400,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | 3 Months Ended | |
May 31, 2017 | Jun. 19, 2017 | |
Subsequent Event [Line Items] | ||
Dividend payable date | Aug. 7, 2017 | |
Dividend payable, date of record | Jul. 7, 2017 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Dividend payable per share | $ 0.20 |