Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Nov. 30, 2017 | Dec. 29, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | 25,416,890 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2017 | Feb. 28, 2017 |
Current assets | ||
Cash and cash equivalents | $ 92,930 | $ 80,466 |
Accounts receivable, net of allowance for doubtful receivables of $1,306 at November 30, 2017 and $1,674 at February 28, 2017 | 38,409 | 37,368 |
Prepaid expenses | 1,228 | 1,351 |
Prepaid income taxes | 888 | 855 |
Inventories | 27,799 | 27,965 |
Assets held for sale | 1,320 | 1,245 |
Total current assets | 162,574 | 149,250 |
Property, plant and equipment | ||
Plant, machinery and equipment | 135,367 | 136,584 |
Land and buildings | 53,587 | 53,821 |
Other | 23,556 | 23,644 |
Total property, plant and equipment | 212,510 | 214,049 |
Less accumulated depreciation | 166,274 | 164,054 |
Net property, plant and equipment | 46,236 | 49,995 |
Goodwill | 70,603 | 70,603 |
Intangible assets, net | 50,746 | 53,927 |
Other assets | 357 | 510 |
Total assets | 330,516 | 324,285 |
Current liabilities | ||
Accounts payable | 9,988 | 14,202 |
Accrued expenses | ||
Employee compensation and benefits | 14,775 | 13,515 |
Taxes other than income | 357 | 225 |
Other | 1,880 | 2,026 |
Total current liabilities | 27,000 | 29,968 |
Long-term debt | 30,000 | 30,000 |
Liability for pension benefits | 4,846 | 4,846 |
Deferred income taxes | 7,408 | 6,953 |
Other liabilities | 1,511 | 1,163 |
Total liabilities | 70,765 | 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 November 30 and February 28, 2017 | 75,134 | 75,134 |
Additional paid-in capital | 121,010 | 121,525 |
Retained earnings | 160,648 | 150,685 |
Accumulated other comprehensive loss: | ||
Minimum pension liability, net of taxes | (14,517) | (15,261) |
Total accumulated other comprehensive loss | (14,517) | (15,261) |
Treasury stock | (82,524) | (80,728) |
Total shareholders’ equity | 259,751 | 251,355 |
Total liabilities and shareholders' equity | $ 330,516 | $ 324,285 |
Unaudited Consolidated Balance3
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2017 | Feb. 28, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful receivables | $ 1,306 | $ 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 | 9 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 93,606 | $ 88,660 | $ 283,083 | $ 270,316 |
Cost of goods sold | 63,722 | 63,368 | 192,493 | 191,292 |
Gross profit margin | 29,884 | 25,292 | 90,590 | 79,024 |
Selling, general and administrative | 16,699 | 15,833 | 51,167 | 47,961 |
(Gain) loss from disposal of assets | (4) | 264 | 59 | 266 |
Income from operations | 13,189 | 9,195 | 39,364 | 30,797 |
Other income (expense) | ||||
Interest expense | (163) | (172) | (557) | (405) |
Other, net | 108 | 88 | 238 | 92 |
Total other expense | (55) | (84) | (319) | (313) |
Earnings from continuing operations before income taxes | 13,134 | 9,111 | 39,045 | 30,484 |
Income tax expense | 4,860 | 3,371 | 14,447 | 11,277 |
Earnings from continuing operations | 8,274 | 5,740 | 24,598 | 19,207 |
Income from discontinued operations, net of tax | 2,481 | |||
Loss on sale of discontinued operations, net of tax | (26,042) | |||
Loss from discontinued operations, net of tax | (23,561) | |||
Net earnings (loss) | $ 8,274 | $ 5,740 | $ 24,598 | $ (4,354) |
Weighted average common shares outstanding | ||||
Basic | 25,360,452 | 25,673,824 | 25,387,389 | 25,802,658 |
Diluted | 25,393,482 | 25,683,613 | 25,409,259 | 25,818,146 |
Earnings (loss) per share - basic and diluted | ||||
Continuing operations | $ 0.33 | $ 0.22 | $ 0.97 | $ 0.74 |
Discontinued operations | (0.91) | |||
Net earnings (loss) | 0.33 | 0.22 | 0.97 | (0.17) |
Cash dividends per share | $ 0.200 | $ 0.175 | $ 0.575 | $ 2.025 |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 8,274 | $ 5,740 | $ 24,598 | $ (4,354) |
Foreign currency translation adjustment, net of deferred taxes | 9,940 | |||
Adjustment to pension, net of deferred taxes | 248 | 744 | ||
Comprehensive income | $ 8,522 | $ 5,740 | $ 25,342 | $ 5,586 |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statement of Changes in Shareholders' Equity - 9 months ended Nov. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Beginning balance at Feb. 28, 2017 | $ 251,355 | $ 75,134 | $ 121,525 | $ 150,685 | $ (15,261) | $ (80,728) |
Beginning balance common stock, shares at Feb. 28, 2017 | 30,053,443 | 30,053,443 | ||||
Beginning balance, treasury stock, shares at Feb. 28, 2017 | (4,686,821) | |||||
Net earnings (loss) | $ 24,598 | 24,598 | ||||
Adjustment to pension, net of deferred tax of $456 | 744 | 744 | ||||
Dividends paid ($0.575 per share) | (14,635) | (14,635) | ||||
Stock based compensation | 1,002 | 1,002 | ||||
Exercise of stock options and restricted stock | (1,517) | $ 1,517 | ||||
Exercise of stock options and restricted stock, shares | 88,105 | |||||
Common stock repurchases | $ (3,313) | $ (3,313) | ||||
Common stock repurchases, shares | (191,033) | (191,178) | ||||
Ending balance at Nov. 30, 2017 | $ 259,751 | $ 75,134 | $ 121,010 | $ 160,648 | $ (14,517) | $ (82,524) |
Ending balance common stock, shares at Nov. 30, 2017 | 30,053,443 | 30,053,443 | ||||
Ending balance treasury stock, shares at Nov. 30, 2017 | (4,789,894) |
Unaudited Consolidated Stateme7
Unaudited Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) $ in Thousands | 9 Months Ended |
Nov. 30, 2017USD ($)$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Deferred tax adjusted to pension | $ | $ 456 |
Dividends paid per share | $ / shares | $ 0.575 |
Unaudited Consolidated Stateme8
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 24,598 | $ (4,354) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||
Depreciation | 6,016 | 5,944 |
Amortization of deferred finance charges | 85 | 36 |
Amortization of intangible assets | 4,566 | 3,494 |
Pre-tax loss from discontinued operations | 36,775 | |
Operating cash flows of discontinued operations | 538 | |
(Gain) loss from disposal of assets | 59 | 266 |
Bad debt expense, net of recoveries | (231) | 118 |
Stock based compensation | 1,002 | 1,019 |
Deferred income taxes | (1) | |
Changes in operating assets and liabilities, net of the effects of acquisitions: | ||
Accounts receivable | (810) | 1,426 |
Prepaid expenses and income taxes | 90 | (1,620) |
Inventories | 247 | 722 |
Other assets | 67 | (593) |
Accounts payable and accrued expenses | (3,418) | (3,121) |
Other liabilities | 348 | (7) |
Liability for pension benefits | 1,200 | 1,917 |
Net cash provided by operating activities | 33,818 | 42,560 |
Cash flows from investing activities: | ||
Capital expenditures | (2,092) | (1,912) |
Purchase of businesses, net of cash acquired | (1,350) | (907) |
Proceeds from sale of discontinued operations | 107,354 | |
Investing cash flows of discontinued operations | (279) | |
Proceeds from disposal of plant and property | 36 | 663 |
Net cash provided by (used in) investing activities | (3,406) | 104,919 |
Cash flows from financing activities: | ||
Repayment of debt | (10,000) | |
Dividends paid | (14,635) | (52,724) |
Common stock repurchases | (3,313) | (7,757) |
Proceeds from exercise of stock options | 2,910 | |
Net cash used in financing activities | (17,948) | (67,571) |
Net change in cash and cash equivalents | 12,464 | 79,908 |
Cash and cash equivalents at beginning of period | 80,466 | 7,957 |
Cash and cash equivalents at end of period | $ 92,930 | $ 87,865 |
Significant Accounting Policies
Significant Accounting Policies and General Matters | 9 Months Ended |
Nov. 30, 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 November 30, 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 (the “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. Recent Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“ FASB ASU Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ASU 2017-07 In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ASU 2017-04 , In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) ASU 2016-09 , In February 2016, the FASB issued 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 |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Doubtful Receivables | 9 Months Ended |
Nov. 30, 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 Nine months ended November 30, November 30, 2017 2016 2017 2016 Balance at beginning of period $ 1,318 $ 1,820 $ 1,674 $ 2,041 Bad debt expense, net of recoveries 17 15 (231 ) 118 Accounts written off (29 ) (203 ) (137 ) (527 ) Balance at end of period $ 1,306 $ 1,632 $ 1,306 $ 1,632 |
Inventories
Inventories | 9 Months Ended |
Nov. 30, 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): November 30, February 28, 2017 2017 Raw material $ 16,584 $ 16,130 Work-in-process 3,336 3,199 Finished goods 7,879 8,636 $ 27,799 $ 27,965 |
Acquisitions
Acquisitions | 9 Months Ended |
Nov. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions On July 7, 2017, the Company acquired the assets of a tag operation located in Ohio, for $1.4 million in cash plus the assumption of certain accrued liabilities. Management considers this acquisition immaterial. On January 27, 2017, the Company completed the acquisition of Independent Printing Company, Inc. and its related entities (collectively “ Independent The following is a summary of the final purchase price allocation for Independent (in thousands): 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 Nine months ended November 30, 2016 November 30, 2016 Pro forma net sales $ 97,803 $ 297,745 Pro forma net earnings 5,990 19,957 Pro forma earnings per share - diluted 0.23 0.77 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 | 9 Months Ended |
Nov. 30, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 5. Discontinued Operations On May 25, 2016 the Company sold its Apparel Segment to Gildan Activewear Inc. for an all-cash purchase price of $110.0 million, subject to a working capital adjustment, customary indemnification arrangements, and the other terms of the Unit Purchase Agreement dated May 4, 2016. 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 Carrying value of disposed (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) Includes 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. Nine months ended November 30, 2016 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 Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Nov. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and 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 is expected to increase 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): Weighted Average Remaining Gross Life Carrying Accumulated As of November 30, 2017 (in years) Amount Amortization Net Amortized intangible assets Trademarks and trade names 16.2 $ 19,625 $ 2,109 $ 17,516 Customer lists 8.3 58,040 24,884 33,156 Noncompete 0.1 175 130 45 Patent 0.3 783 754 29 Total 11.0 $ 78,623 $ 27,877 $ 50,746 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 November 30, February 28, 2017 2017 Non-amortizing intangible assets Trademarks and trade names $ — $ 15,291 Aggregate amortization expense for the nine months ended November 30, 2017 and November 30, 2016 was $4.6 million and $3.5 million, respectively. The Company’s estimated amortization expense for the current and next four fiscal years ending in February of the stated fiscal year is as follows (in thousands): 2018 $ 5,992 2019 5,558 2020 5,476 2021 5,406 2022 5,363 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 November 30, 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 | 9 Months Ended |
Nov. 30, 2017 | |
Payables And Accruals [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): November 30, February 28, 2017 2017 Accrued taxes $ 140 $ 329 Accrued legal and professional fees 438 414 Accrued interest 134 98 Accrued utilities 111 90 Accrued acquisition related obligations 759 789 Accrued credit card fees 127 119 Other accrued expenses 171 187 $ 1,880 $ 2,026 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Nov. 30, 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): November 30, February 28, 2017 2017 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 2.5% (3 month LIBOR + 1.0%) at November 30, 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 | 9 Months Ended |
Nov. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | 9. Shareholders’ Equity 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 nine months ended November 30, 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 November 30, 2017 there was $18.4 million available to repurchase shares of the Company’s common stock under the program. Unrelated to the stock repurchase program, the Company purchased 145 shares of its common stock during the nine months ended November 30, 2017. |
Stock Option Plan and Stock Bas
Stock Option Plan and Stock Based Compensation | 9 Months Ended |
Nov. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased 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 November 30, 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 November 30, 2017 and November 30, 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. For the nine months ended November 30, 2017 and November 30, 2016, the Company included compensation expense related to share-based compensation of $1.0 million ($0.6 million net of tax), and $1.0 million ($0.6 million net of tax), respectively, in selling, general, and administrative expenses. Stock Options The Company had the following stock option activity for the nine months ended November 30, 2017: Weighted Weighted Average Aggregate Number Average Remaining Intrinsic of Shares Exercise Contractual Value(a) (exact quantity) Price Life (in years) (in Outstanding at March 1, 2017 172,496 $ 15.95 4.2 $ 223 Granted — — Terminated — — Exercised — — Outstanding at November 30, 2017 172,496 $ 15.95 3.5 $ 896 Exercisable at November 30, 2017 170,880 $ 15.97 3.4 $ 884 (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 nine months ended November 30, 2017 and November 30, 2016. A summary of the stock options exercised and tax benefits realized from stock based compensation is presented below (in thousands): Three months ended Nine months ended November 30, November 30, 2017 2016 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 November 30, 2017 and the changes during the nine months ended November 30, 2017 are presented below: Weighted Average Number Grant Date of Options Fair Value Unvested at March 1, 2017 5,073 $ 2.41 New grants — — Vested (3,457 ) 2.48 Forfeited — — Unvested at November 30, 2017 1,616 $ 2.24 As of November 30, 2017, there was approximately $0.8 million 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 0.4 years. Restricted Stock The Company had the following restricted stock grant activity for the nine months ended November 30, 2017: Weighted Average Number of Grant Date Shares Fair Value Outstanding at March 1, 2017 166,546 $ 16.35 Granted 74,900 16.30 Terminated — — Vested (88,105 ) 15.91 Outstanding at November 30, 2017 153,341 $ 16.58 As of November 30, 2017, the total remaining unrecognized compensation cost related to unvested restricted stock granted under the Plan was approximately $1.8 million. The weighted average remaining requisite service period of the unvested restricted stock awards was 1.7 years. |
Pension Plan
Pension Plan | 9 Months Ended |
Nov. 30, 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 Nine months ended November 30, November 30, 2017 2016 2017 2016 Components of net periodic benefit cost Service cost $ 271 $ 292 $ 812 $ 875 Interest cost 567 593 1,702 1,779 Expected return on plan assets (948 ) (917 ) (2,845 ) (2,749 ) Amortization of: Unrecognized net loss 510 671 1,531 2,012 Net periodic benefit cost $ 400 $ 639 $ 1,200 $ 1,917 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 made a cash contribution to the Pension Plan of $3.0 million on December 28, 2017 for 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 | 9 Months Ended |
Nov. 30, 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 November 30, 2017, all options were included in the diluted earnings per share computation because the average fair market value of the Company’s stock exceeded the exercise price of the options. Three months ended Nine months ended November 30, November 30, 2017 2016 2017 2016 Basic weighted average common shares outstanding 25,360,452 25,673,824 25,387,389 25,802,658 Effect of dilutive options 33,030 9,789 21,870 15,488 Diluted weighted average common shares outstanding 25,393,482 25,683,613 25,409,259 25,818,146 Earnings (loss) per share - basic and diluted Earnings per share on continuing operations $ 0.33 $ 0.22 $ 0.97 $ 0.74 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) $ 0.33 $ 0.22 $ 0.97 $ (0.17 ) Cash dividends $ 0.200 $ 0.175 $ 0.575 $ 2.025 |
Concentrations of Risk
Concentrations of Risk | 9 Months Ended |
Nov. 30, 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 November 30, 2017, cash balances included $92.0 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 | 9 Months Ended |
Nov. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On December 21, 2017, the Board declared a quarterly cash dividend of 20 cents per share, which will be paid on February 9, 2018 to the shareholders of record on January 12, 2018. The Tax Cuts and Jobs Act (the “ Act In conjunction with the signing of the Act, the Ennis Board of Directors approved a special one-time bonus to more than 2,200 non-management employees in the amount of $500 each. This payment will take place with the first payroll period in January 2018. In addition, in response to the Act, the Board of Directors declared a special one-time cash dividend of 10 cents per share of our common stock. The dividend will be paid on February 9, 2018 to the shareholders of record on January 12, 2018. |
Significant Accounting Polici23
Significant Accounting Policies and General Matters (Policies) | 9 Months Ended |
Nov. 30, 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 November 30, 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 (the “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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“ FASB ASU Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ASU 2017-07 In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ASU 2017-04 , In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) ASU 2016-09 , In February 2016, the FASB issued 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 |
Accounts Receivable and Allow24
Accounts Receivable and Allowance for Doubtful Receivables (Tables) | 9 Months Ended |
Nov. 30, 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 Nine months ended November 30, November 30, 2017 2016 2017 2016 Balance at beginning of period $ 1,318 $ 1,820 $ 1,674 $ 2,041 Bad debt expense, net of recoveries 17 15 (231 ) 118 Accounts written off (29 ) (203 ) (137 ) (527 ) Balance at end of period $ 1,306 $ 1,632 $ 1,306 $ 1,632 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Nov. 30, 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): November 30, February 28, 2017 2017 Raw material $ 16,584 $ 16,130 Work-in-process 3,336 3,199 Finished goods 7,879 8,636 $ 27,799 $ 27,965 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Business Combinations [Abstract] | |
Summary of Final Purchase Price Allocation | The following is a summary of the final purchase price allocation for Independent (in thousands): 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 Nine months ended November 30, 2016 November 30, 2016 Pro forma net sales $ 97,803 $ 297,745 Pro forma net earnings 5,990 19,957 Pro forma earnings per share - diluted 0.23 0.77 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Nov. 30, 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 Carrying value of disposed (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) Includes 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. Nine months ended November 30, 2016 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 Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Nov. 30, 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): Weighted Average Remaining Gross Life Carrying Accumulated As of November 30, 2017 (in years) Amount Amortization Net Amortized intangible assets Trademarks and trade names 16.2 $ 19,625 $ 2,109 $ 17,516 Customer lists 8.3 58,040 24,884 33,156 Noncompete 0.1 175 130 45 Patent 0.3 783 754 29 Total 11.0 $ 78,623 $ 27,877 $ 50,746 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 | November 30, February 28, 2017 2017 Non-amortizing intangible assets Trademarks and trade names $ — $ 15,291 |
Estimated Amortization Expense | The Company’s estimated amortization expense for the current and next four fiscal years ending in February of the stated fiscal year is as follows (in thousands): 2018 $ 5,992 2019 5,558 2020 5,476 2021 5,406 2022 5,363 |
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 November 30, 2017 $ 70,603 |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Payables And Accruals [Abstract] | |
Components of Other Accrued Expenses | The following table summarizes the components of other accrued expenses as of the dates indicated (in thousands): November 30, February 28, 2017 2017 Accrued taxes $ 140 $ 329 Accrued legal and professional fees 438 414 Accrued interest 134 98 Accrued utilities 111 90 Accrued acquisition related obligations 759 789 Accrued credit card fees 127 119 Other accrued expenses 171 187 $ 1,880 $ 2,026 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following as of the dates indicated (in thousands): November 30, February 28, 2017 2017 Revolving credit facility $ 30,000 $ 30,000 |
Stock Option Plan and Stock B31
Stock Option Plan and Stock Based Compensation (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Activity | The Company had the following stock option activity for the nine months ended November 30, 2017: Weighted Weighted Average Aggregate Number Average Remaining Intrinsic of Shares Exercise Contractual Value(a) (exact quantity) Price Life (in years) (in Outstanding at March 1, 2017 172,496 $ 15.95 4.2 $ 223 Granted — — Terminated — — Exercised — — Outstanding at November 30, 2017 172,496 $ 15.95 3.5 $ 896 Exercisable at November 30, 2017 170,880 $ 15.97 3.4 $ 884 (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 Nine months ended November 30, November 30, 2017 2016 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 November 30, 2017 and the changes during the nine months ended November 30, 2017 are presented below: Weighted Average Number Grant Date of Options Fair Value Unvested at March 1, 2017 5,073 $ 2.41 New grants — — Vested (3,457 ) 2.48 Forfeited — — Unvested at November 30, 2017 1,616 $ 2.24 |
Restricted Stock Grant Activity | The Company had the following restricted stock grant activity for the nine months ended November 30, 2017: Weighted Average Number of Grant Date Shares Fair Value Outstanding at March 1, 2017 166,546 $ 16.35 Granted 74,900 16.30 Terminated — — Vested (88,105 ) 15.91 Outstanding at November 30, 2017 153,341 $ 16.58 |
Pension Plan (Tables)
Pension Plan (Tables) | 9 Months Ended |
Nov. 30, 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 Nine months ended November 30, November 30, 2017 2016 2017 2016 Components of net periodic benefit cost Service cost $ 271 $ 292 $ 812 $ 875 Interest cost 567 593 1,702 1,779 Expected return on plan assets (948 ) (917 ) (2,845 ) (2,749 ) Amortization of: Unrecognized net loss 510 671 1,531 2,012 Net periodic benefit cost $ 400 $ 639 $ 1,200 $ 1,917 |
Earnings (loss) per Share (Tabl
Earnings (loss) per Share (Tables) | 9 Months Ended |
Nov. 30, 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 Nine months ended November 30, November 30, 2017 2016 2017 2016 Basic weighted average common shares outstanding 25,360,452 25,673,824 25,387,389 25,802,658 Effect of dilutive options 33,030 9,789 21,870 15,488 Diluted weighted average common shares outstanding 25,393,482 25,683,613 25,409,259 25,818,146 Earnings (loss) per share - basic and diluted Earnings per share on continuing operations $ 0.33 $ 0.22 $ 0.97 $ 0.74 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) $ 0.33 $ 0.22 $ 0.97 $ (0.17 ) Cash dividends $ 0.200 $ 0.175 $ 0.575 $ 2.025 |
Accounts Receivable and Allow34
Accounts Receivable and Allowance for Doubtful Receivables - Allowance for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Receivables [Abstract] | ||||
Balance at beginning of period | $ 1,318 | $ 1,820 | $ 1,674 | $ 2,041 |
Bad debt expense, net of recoveries | 17 | 15 | (231) | 118 |
Accounts written off | (29) | (203) | (137) | (527) |
Balance at end of period | $ 1,306 | $ 1,632 | $ 1,306 | $ 1,632 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Feb. 28, 2017 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 16,584 | $ 16,130 |
Work-in-process | 3,336 | 3,199 |
Finished goods | 7,879 | 8,636 |
Inventories | $ 27,799 | $ 27,965 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Jul. 07, 2017USD ($) | Jan. 27, 2017USD ($)LocationFacility | |
Business Acquisition [Line Items] | |||||||
Net sales | $ 93,606 | $ 88,660 | $ 283,083 | $ 270,316 | |||
Tag Company [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 1,400 | ||||||
Independent Printing Company, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 17,677 | ||||||
Number of location | Location | 4 | ||||||
Number of folder facilities | Facility | 4 | ||||||
Net sales | $ 37,000 |
Acquisitions - Summary of Final
Acquisitions - Summary of Final Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Nov. 30, 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) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Nov. 30, 2016 | Nov. 30, 2016 | |
Business Combinations [Abstract] | ||
Pro forma net sales | $ 97,803 | $ 297,745 |
Pro forma net earnings | $ 5,990 | $ 19,957 |
Pro forma earnings per share - diluted | $ 0.23 | $ 0.77 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - Apparel Segment [Member] $ in Thousands | May 25, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Purchase price, cash to be received | $ 110,000 |
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 | $ 110,000 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations Related to the Apparel Segment (Detail) - USD ($) $ in Thousands | May 25, 2016 | Nov. 30, 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) | ||
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 | ||
Carrying value of disposed | (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 sale of discontinued operations before income taxes | $ (40,648) | (40,648) | |
Loss on discontinued operations before income taxes | (36,775) | ||
Income tax benefit | (13,214) | ||
Loss from discontinued operations, net of tax | $ (23,561) | ||
[1] | Includes 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 - Sch41
Discontinued Operations - Schedule of Discontinued Operations Related to the Apparel Segment (Parenthetical) (Detail) $ in Millions | May 25, 2016USD ($) |
Apparel Segment [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Termination fee paid | $ 3 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | Mar. 02, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | Feb. 28, 2018 | Feb. 28, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of trade names, customer lists, and patent | $ 4,566,000 | $ 3,494,000 | |||
Goodwill acquired | $ 6,066,000 | ||||
Independent Printing Company, Inc. [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill acquired | $ 6,100,000 | ||||
Selling, General and Administrative [Member] | Scenario Forecast [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of trade names, customer lists, and patent | $ 830,000 | ||||
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 Intangible Asset43
Goodwill and Intangible Assets - Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Nov. 30, 2017 | Feb. 28, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 11 years | 8 years 9 months 18 days |
Gross Carrying Amount | $ 78,623 | $ 61,947 |
Accumulated Amortization | 27,877 | 23,311 |
Amortized intangible assets, Net | $ 50,746 | $ 38,636 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 16 years 2 months 12 days | 8 years |
Gross Carrying Amount | $ 19,625 | $ 3,642 |
Accumulated Amortization | 2,109 | 1,234 |
Amortized intangible assets, Net | $ 17,516 | $ 2,408 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 8 years 3 months 18 days | 8 years 10 months 25 days |
Gross Carrying Amount | $ 58,040 | $ 57,347 |
Accumulated Amortization | 24,884 | 21,336 |
Amortized intangible assets, Net | $ 33,156 | $ 36,011 |
Noncompete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 1 month 6 days | 9 months 18 days |
Gross Carrying Amount | $ 175 | $ 175 |
Accumulated Amortization | 130 | 86 |
Amortized intangible assets, Net | $ 45 | $ 89 |
Patent [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life (in years) | 3 months 18 days | 1 year |
Gross Carrying Amount | $ 783 | $ 783 |
Accumulated Amortization | 754 | 655 |
Amortized intangible assets, Net | $ 29 | $ 128 |
Goodwill and Intangible Asset44
Goodwill and 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 Intangible Asset45
Goodwill and Intangible Assets - Estimated Amortization Expense (Detail) $ in Thousands | Nov. 30, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,018 | $ 5,992 |
2,019 | 5,558 |
2,020 | 5,476 |
2,021 | 5,406 |
2,022 | $ 5,363 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Changes in Net Carrying Amount of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Feb. 28, 2017USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning balance | $ 64,537 |
Goodwill acquired | 6,066 |
Goodwill impairment | 0 |
Goodwill, Ending balance | $ 70,603 |
Other Accrued Expenses - Compon
Other Accrued Expenses - Components of Other Accrued Expenses (Detail) - USD ($) $ in Thousands | Nov. 30, 2017 | Feb. 28, 2017 |
Payables And Accruals [Abstract] | ||
Accrued taxes | $ 140 | $ 329 |
Accrued legal and professional fees | 438 | 414 |
Accrued interest | 134 | 98 |
Accrued utilities | 111 | 90 |
Accrued acquisition related obligations | 759 | 789 |
Accrued credit card fees | 127 | 119 |
Other accrued expenses | 171 | 187 |
Other accrued expenses, Total | $ 1,880 | $ 2,026 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Nov. 30, 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) | Feb. 28, 2017 | Nov. 30, 2017USD ($) |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 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 3.00:1.00, (ii) the Company’s fixed charge coverage ratio may not be less than 1.25:1.00, and (iii) the Company may make dividends or distributions to shareholders so long as (a) no event of default has occurred and is 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 2.50:1.00. | |
Revolving credit facility, interest rate description | LIBOR rate plus a spread ranging from 1.0% to 2.0%, which rate was 2.5% (3 month LIBOR + 1.0%) at November 30, 2017 and 1.86% (2 month LIBOR + 1.0%) at February 28, 2017. | |
Revolving credit facility, variable basis spread | 1.00% | 1.00% |
Revolving credit facility, interest rate | 1.86% | 2.50% |
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] | Dividends or Distributions Effect [Member] | Minimum [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] | ||
Long-term debt | $ 20,000,000 | |
Second Amendment [Member] | Swing-line Loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 15,000,000 | |
Third Amendment [Member] | Standby Letters of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 1,200,000 | |
Revolving credit facility, remaining borrowing capacity | $ 68,800,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Nov. 30, 2017USD ($) | Nov. 30, 2017USD ($)$ / sharesshares | Nov. 30, 2017USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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 | ||
Unrelated to Stock Repurchase Program [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Repurchase of common stock | shares | 145 |
Stock Option Plan and Stock B51
Stock Option Plan and Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unissued common stock reserved | 529,408 | 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 | $ 0.8 | $ 0.8 | ||
Remaining unrecognized compensation cost related to unvested restricted stock | 1.8 | $ 1.8 | ||
Weighted average remaining requisite service period of the unvested restricted stock awards | 1 year 8 months 12 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 | 4 months 24 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 | 0.3 | $ 0.3 | $ 1 | $ 1 |
Compensation expense related share based compensation net of tax | $ 0.2 | $ 0.2 | $ 0.6 | $ 0.6 |
Stock Option Plan and Stock B52
Stock Option Plan and Stock Based Compensation - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | Feb. 28, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Number of Shares, Options Outstanding, Beginning Balance | 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 | 172,496 | |
Number of Shares, Exercisable | 170,880 | ||
Weighted Average Exercise Price, Beginning Balance | $ 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 | $ 15.95 | |
Weighted Average Exercise Price, Exercisable | $ 15.97 | ||
Weighted Average Remaining Contractual Life (in years) | 3 years 6 months | 4 years 2 months 12 days | |
Weighted Average Remaining Contractual Life, Exercisable | 3 years 4 months 24 days | ||
Aggregate Intrinsic Value | $ 896 | $ 223 | |
Aggregate Intrinsic Value, Exercisable | $ 884 |
Stock Option Plan and Stock B53
Stock Option Plan and Stock Based Compensation - Summary of Stock Options Exercised and Tax Benefits Realized from Stock Based Compensation (Detail) $ in Thousands | 9 Months Ended |
Nov. 30, 2016USD ($) | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Total cash received | $ 2,910 |
Total grant-date fair value | 532 |
Intrinsic value | $ 969 |
Stock Option Plan and Stock B54
Stock Option Plan and Stock Based Compensation - Summary of Unvested Stock Options (Detail) - $ / shares | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased 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 B55
Stock Option Plan and Stock Based Compensation - Restricted Stock Grant Activity (Detail) - Restricted Stock [Member] | 9 Months Ended |
Nov. 30, 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 | (88,105) |
Outstanding at Ending, Number of Shares | shares | 153,341 |
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 | 15.91 |
Outstanding at Ending, Weighted Average Grant Date Fair value | $ / shares | $ 16.58 |
Pension Plan - Additional Infor
Pension Plan - Additional Information (Detail) - USD ($) | Dec. 28, 2017 | Nov. 30, 2017 | Feb. 28, 2017 | Feb. 28, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Employees covered under noncontributory Pension Plan | 20.00% | |||
Compensation period preceding retirement and termination | 5 years | |||
Period used for calculating Pension Plan liability | 25 years | |||
Cash contribution to the pension plan | $ 3,000,000 | |||
Scenario Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum required contribution to the plan is approximately | $ 0 | |||
Subsequent Event [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contribution to the pension plan | $ 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 | 9 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Components of net periodic benefit cost | ||||
Service cost | $ 271 | $ 292 | $ 812 | $ 875 |
Interest cost | 567 | 593 | 1,702 | 1,779 |
Expected return on plan assets | (948) | (917) | (2,845) | (2,749) |
Amortization of: | ||||
Unrecognized net loss | 510 | 671 | 1,531 | 2,012 |
Net periodic benefit cost | $ 400 | $ 639 | $ 1,200 | $ 1,917 |
Earnings (loss) per Share - Add
Earnings (loss) per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Earnings Per Share [Abstract] | |||
Stock options not included in the diluted earnings per share computation | 95,692 | 42,500 | 42,500 |
Earnings (loss) per Share - Com
Earnings (loss) per Share - Computation for Basic and Diluted Earnings (loss) per Share (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding | 25,360,452 | 25,673,824 | 25,387,389 | 25,802,658 |
Effect of dilutive options | 33,030 | 9,789 | 21,870 | 15,488 |
Diluted weighted average common shares outstanding | 25,393,482 | 25,683,613 | 25,409,259 | 25,818,146 |
Earnings (loss) per share - basic and diluted | ||||
Earnings per share on continuing operations | $ 0.33 | $ 0.22 | $ 0.97 | $ 0.74 |
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) | 0.33 | 0.22 | 0.97 | (0.17) |
Cash dividends | $ 0.200 | $ 0.175 | $ 0.575 | $ 2.025 |
Concentrations of Risk - Additi
Concentrations of Risk - Additional Information (Detail) | Nov. 30, 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 | $ 92,000,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Dec. 22, 2017 | Dec. 21, 2017USD ($)Employee$ / shares | Nov. 30, 2017 |
Subsequent Event [Line Items] | |||
Dividend payable date | Feb. 9, 2018 | ||
Dividend payable, date of record | Jan. 12, 2018 | ||
Corporate tax rate | 35.00% | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividend payable per share | $ 0.20 | ||
Corporate tax rate | 21.00% | ||
Subsequent Event [Member] | Special One-time Cash Dividend [Member] | |||
Subsequent Event [Line Items] | |||
Dividend payable per share | $ 0.10 | ||
Dividend payable date | Feb. 9, 2018 | ||
Dividend payable, date of record | Jan. 12, 2018 | ||
Subsequent Event [Member] | Non-management Employees [Member] | Special One-time Bonus [Member] | |||
Subsequent Event [Line Items] | |||
Bonus payment to each employee | $ | $ 500 | ||
Subsequent Event [Member] | Non-management Employees [Member] | Special One-time Bonus [Member] | Minimum [Member] | |||
Subsequent Event [Line Items] | |||
Number of employees | Employee | 2,200 |