Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jan. 31, 2014 | |
Entity Information | ' |
Entity Registrant Name | 'OIL DRI CORP OF AMERICA |
Entity Central Index Key | '0000074046 |
Current Fiscal Year End Date | '--07-31 |
Entity Filer Category | 'Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 31-Jan-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Amendment Flag | 'false |
Common Stock | ' |
Entity Information | ' |
Entity Common Stock, Shares Outstanding | 4,978,567 |
Common Class B | ' |
Entity Information | ' |
Entity Common Stock, Shares Outstanding | 2,074,927 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jan. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $12,082 | $24,035 |
Restricted cash | 500 | 0 |
Short-term investments | 7,100 | 18,459 |
Accounts receivable, less allowance of $683 and $641 at January 31, 2014 and July 31, 2013, respectively | 37,022 | 31,148 |
Inventories | 22,734 | 20,723 |
Deferred income taxes | 3,540 | 3,986 |
Prepaid repairs expense | 3,288 | 3,458 |
Prepaid expenses and other assets | 3,087 | 1,563 |
Total Current Assets | 89,353 | 103,372 |
Property, Plant and Equipment | ' | ' |
Cost | 188,915 | 184,137 |
Less accumulated depreciation and amortization | -119,956 | -118,082 |
Total Property, Plant and Equipment, Net | 68,959 | 66,055 |
Other Assets | ' | ' |
Goodwill | 8,553 | 5,162 |
Trademarks and patents, net of accumulated amortization of $439 and $427 at January 31, 2014 and July 31, 2013, respectively | 661 | 581 |
Debt issuance costs, net of accumulated amortization of $488 and $455 at January 31, 2014 and July 31 2013, respectively | 277 | 309 |
Licensing agreements and non-compete agreements, net of accumulated amortization of $1,986 and $1,861 at January 31, 2014 and July 31, 2013, respectively | 253 | 378 |
Customer list, net of accumulated amortization of $255 at January 31, 2014 | 7,530 | 0 |
Deferred income taxes | 2,740 | 2,164 |
Other | 5,534 | 5,538 |
Total Other Assets | 25,548 | 14,132 |
Total Assets | 183,860 | 183,559 |
Current Liabilities | ' | ' |
Current maturities of notes payable | 3,500 | 3,500 |
Accounts payable | 7,699 | 6,483 |
Dividends payable | 1,242 | 1,236 |
Accrued expenses: | ' | ' |
Salaries, wages and commissions | 4,674 | 9,087 |
Trade promotions and advertising | 3,188 | 2,824 |
Freight | 2,480 | 2,154 |
Other | 6,344 | 6,163 |
Total Current Liabilities | 29,127 | 31,447 |
Noncurrent Liabilities | ' | ' |
Notes payable | 18,900 | 22,400 |
Deferred compensation | 8,976 | 8,569 |
Pension and postretirement benefits | 16,778 | 16,362 |
Other | 2,021 | 1,843 |
Total Noncurrent Liabilities | 46,675 | 49,174 |
Total Liabilities | 75,802 | 80,621 |
Stockholders’ Equity | ' | ' |
Additional paid-in capital | 32,446 | 31,317 |
Restricted unearned stock compensation | -2,277 | -1,824 |
Retained earnings | 137,422 | 132,750 |
Accumulated other comprehensive income: | ' | ' |
Unrealized gain on marketable securities | 84 | 86 |
Pension and postretirement benefits | -5,495 | -5,608 |
Cumulative translation adjustment | 193 | 487 |
Total accumulated other comprehensive loss | -5,218 | -5,035 |
Less Treasury Stock, at cost (2,915,893 Common and 324,741 Class B shares at January 31, 2014 and 2,914,567 Common and 324,741 Class B shares at July 31, 2013) | -55,344 | -55,296 |
Total Stockholders’ Equity | 108,058 | 102,938 |
Total Liabilities & Stockholders’ Equity | 183,860 | 183,559 |
Common Stock | ' | ' |
Stockholders’ Equity | ' | ' |
Common Stock, par value $.10 per share | 789 | 787 |
Common Class B | ' | ' |
Stockholders’ Equity | ' | ' |
Common Stock, par value $.10 per share | $240 | $239 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheet Parenthetical (USD $) | Jan. 31, 2014 | Jul. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets | ' | ' |
Allowance for doubtful accounts | $683 | $641 |
Other Assets | ' | ' |
Accumulated amortization Trademarks and patents | 439 | 427 |
Accumulated amortization Debt issuance costs | 488 | 455 |
Accumulated amortization Licensing and non-compete agreements | 1,986 | 1,861 |
Accumulated amortization Customer lists | $255 | $0 |
Common Stock | ' | ' |
Stockholder's Equity | ' | ' |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares issued | 7,894,460 | 7,866,560 |
Treasury stock, common shares | 2,915,893 | 2,914,567 |
Common Class B | ' | ' |
Stockholder's Equity | ' | ' |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares issued | 2,399,668 | 2,394,487 |
Treasury stock, common shares | 324,741 | 324,741 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income and Retained Earnings (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Net Sales | $69,305 | $61,122 | $132,851 | $122,539 |
Cost of Sales | -52,412 | -44,853 | -99,458 | -89,039 |
Gross Profit | 16,893 | 16,269 | 33,393 | 33,500 |
Selling, General and Administrative Expenses | -11,159 | -12,834 | -23,317 | -23,654 |
Capacity Rationalization Charges | 0 | -50 | 0 | -62 |
Income from Operations | 5,734 | 3,385 | 10,076 | 9,784 |
Other Income (Expense) | ' | ' | ' | ' |
Interest expense | -385 | -446 | -809 | -927 |
Interest income | 6 | 8 | 16 | 17 |
Other, net | 175 | 84 | 140 | 214 |
Total Other Income (Expense), Net | -204 | -354 | -653 | -696 |
Income Before Income Taxes | 5,530 | 3,031 | 9,423 | 9,088 |
Income taxes | -1,249 | -885 | -2,255 | -2,490 |
Net Income | 4,281 | 2,146 | 7,168 | 6,598 |
Retained Earnings | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | 132,750 | 122,901 |
Cash dividends declared and treasury stock issuances | ' | ' | -2,496 | -3,502 |
Balance at end of period | $137,422 | $125,997 | $137,422 | $125,997 |
Net Income Per Share | ' | ' | ' | ' |
Diluted (in dollars per share) | $0.60 | $0.31 | $1.01 | $0.94 |
Average Shares Outstanding | ' | ' | ' | ' |
Diluted (in shares) | 7,007 | 6,922 | 6,991 | 6,904 |
Common Stock | ' | ' | ' | ' |
Net Income Per Share | ' | ' | ' | ' |
Basic Common (in dollars per share) | $0.65 | $0.33 | $1.09 | $1.02 |
Average Shares Outstanding | ' | ' | ' | ' |
Basic Common (in shares) | 4,979 | 4,896 | 4,967 | 4,887 |
Common Class B | ' | ' | ' | ' |
Net Income Per Share | ' | ' | ' | ' |
Basic Common (in dollars per share) | $0.49 | $0.25 | $0.82 | $0.77 |
Average Shares Outstanding | ' | ' | ' | ' |
Basic Common (in shares) | 2,005 | 1,976 | 1,999 | 1,960 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Net Income | $4,281 | $2,146 | $7,168 | $6,598 |
Other Comprehensive Income (net of tax): | ' | ' | ' | ' |
Unrealized gain (loss) on marketable securities | 6 | -5 | -2 | -2 |
Pension and postretirement benefits | 56 | 150 | 113 | 300 |
Cumulative translation adjustment | -227 | 7 | -294 | 23 |
Other Comprehensive (Loss) Income | -165 | 152 | -183 | 321 |
Total Comprehensive Income | $4,116 | $2,298 | $6,985 | $6,919 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net Income | $7,168 | $6,598 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 4,860 | 4,475 |
Amortization of investment net discount | -2 | -3 |
Non-cash stock compensation expense | 560 | 413 |
Excess tax benefits for share-based payments | -21 | -199 |
Deferred income taxes | 79 | 184 |
Provision for bad debts | 45 | 36 |
Loss on the sale of fixed assets | 13 | 7 |
Capacity rationalization charges | 0 | 62 |
(Increase) Decrease in assets, net of acquisition: | ' | ' |
Accounts receivable | -5,919 | -812 |
Inventories | -1,347 | -2,513 |
Prepaid expenses | -725 | 879 |
Other assets | -312 | 24 |
Increase (Decrease) in liabilities, net of acquisition: | ' | ' |
Accounts payable | 381 | -168 |
Accrued expenses | -3,558 | 690 |
Deferred compensation | 407 | 281 |
Pension and postretirement benefits | 528 | 882 |
Other liabilities | 243 | -25 |
Total Adjustments | -4,768 | 4,213 |
Net Cash Provided by Operating Activities | 2,400 | 10,811 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -6,782 | -5,009 |
Proceeds from sale of property, plant and equipment | 16 | 34 |
Acquisition of business | -12,505 | 0 |
Restricted cash | -500 | 0 |
Purchases of short-term investments | -7,991 | -12,147 |
Dispositions of short-term investments | 19,352 | 10,925 |
Net Cash Used in Investing Activities | -8,410 | -6,197 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Principal payments on notes payable | -3,500 | -2,300 |
Dividends paid | -2,478 | -4,630 |
Purchase of treasury stock | -13 | -175 |
Proceeds from issuance of treasury stock | 39 | 82 |
Proceeds from issuance of common stock | 12 | 571 |
Excess tax benefits for share-based payments | 21 | 199 |
Net Cash Used in Financing Activities | -5,919 | -6,253 |
Effect of exchange rate changes on cash and cash equivalents | -24 | -24 |
Net Decrease in Cash and Cash Equivalents | -11,953 | -1,663 |
Cash and Cash Equivalents, Beginning of Period | 24,035 | 27,093 |
Cash and Cash Equivalents, End of Period | $12,082 | $25,430 |
Basis_of_Statement_Presentatio
Basis of Statement Presentation | 6 Months Ended |
Jan. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Statement Presentation | ' |
BASIS OF STATEMENT PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in compliance with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The financial statements and the related notes are condensed and should be read in conjunction with the consolidated financial statements and related notes for the year ended July 31, 2013 included in our Annual Report on Form 10-K filed with the SEC. | |
The unaudited condensed consolidated financial statements include the accounts of Oil-Dri Corporation of America and its subsidiaries. All significant intercompany transactions are eliminated. Except as otherwise indicated herein or as the context otherwise requires, references to “Oil-Dri,” the “Company,” “we,” “us” or “our” refer to Oil-Dri Corporation of America and its subsidiaries. | |
The unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of the statements contained herein. Operating results for the three and six months ended January 31, 2014 are not necessarily an indication of the results that may be expected for the fiscal year ending July 31, 2014. | |
The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions related to the reporting of assets, liabilities, revenues, expenses and related disclosures. Estimates and assumptions are revised periodically. Actual results could differ from these estimates. | |
Under the terms of our sales agreements with customers, we recognize revenue when risk of loss and title are transferred. An invoice is generated upon shipment that sets the fixed and determinable price. Trade promotion reserves are provided for sales incentives made directly to consumers, such as coupons, and made to customers, such as slotting, discounts based on sales volume, cooperative marketing programs and other arrangements. Such trade promotion costs are netted against sales. Sales returns and allowances are not material. | |
Selling, general and administrative expenses include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all advertising and marketing-related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. | |
We evaluate our allowance for doubtful accounts utilizing a combination of historical experience and periodic review of our accounts receivable aging and specific customer account analysis. A customer account is determined to be uncollectible when we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. | |
As part of our overall operations, we mine sorbent materials on property that we either own or lease. A significant part of our overall mining cost is incurred during the process of removing the overburden (non-usable material) from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. The pre-production overburden removal costs associated with opening a new mine are deferred as prepaid expense and amortized. | |
Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral patents, including legal fees and drilling expenses, are also capitalized. Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the minerals are also capitalized. All exploration related costs are expensed as incurred. | |
We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, thereby minimizing the costs associated with the reclamation process. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jan. 31, 2014 | |
NEW ACCOUNTING PRONOUNCEMENTS [Abstract] | ' |
New Accounting Pronouncements | ' |
NEW ACCOUNTING PRONOUNCEMENTS | |
Recently Adopted Accounting Standards | |
In the first quarter of fiscal 2014 we adopted new guidance from the Financial Accounting Standard Board (“FASB”) issued under Accounting Standard Codification (“ASC”) 220, Comprehensive Income-Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The guidance required presentation by the respective net income line items, either on the face of the statement where net income is presented or in the notes, of information about significant amounts required to be reclassified out of accumulated other comprehensive income (“AOCI”). We elected to present the reclassifications in the notes to the financial statements. See Note 8 for additional information regarding amounts reclassified from AOCI. | |
In the first quarter of fiscal 2014 we considered the FASB guidance issued under ASC 350, Testing Indefinite-Lived Intangible Assets for Impairment, which provides the option to first assess qualitative factors to determine if the annual two-step test for impairment must be performed. Based on the relevant events and circumstances that could have affected the significant inputs used to determine the fair value of our indefinite-lived intangible assets, we determined that it is more likely than not that these assets are not impaired and we did not perform a quantitative impairment assessment. There was no impact on our condensed consolidated financial statements as a result of this new guidance. |
Inventories
Inventories | 6 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure | ' | |||||||
INVENTORIES | ||||||||
The composition of inventories is as follows (in thousands): | ||||||||
January 31, | July 31, | |||||||
2014 | 2013 | |||||||
Finished goods | $ | 13,130 | $ | 12,112 | ||||
Packaging | 5,191 | 4,003 | ||||||
Other | 4,413 | 4,608 | ||||||
Total Inventories | $ | 22,734 | $ | 20,723 | ||||
Inventories are valued at the lower of cost (first-in, first-out) or market. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We perform a quarterly review of our inventory items to determine if an obsolescence reserve adjustment is necessary. The review surveys all of our operating facilities and sales groups to ensure that both historical issues and new market trends are considered. The allowance not only considers specific items, but also takes into consideration the overall value of the inventory as of the balance sheet date. The inventory obsolescence reserve values at January 31, 2014 and July 31, 2013 were $348,000 and $364,000, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value Measurements | ' | |||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into categories based on the lowest level of input that is significant to the fair value measurement. The categories in the hierarchy are as follows: | ||||||||||||
Level 1: | Financial assets and liabilities whose values are based on quoted market prices in active markets for identical assets or liabilities. | |||||||||||
Level 2: | Financial assets and liabilities whose values are based on: | |||||||||||
1) Quoted prices for similar assets or liabilities in active markets. | ||||||||||||
2) Quoted prices for identical or similar assets or liabilities in markets that are not active. | ||||||||||||
3) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. | ||||||||||||
Level 3: | Financial assets and liabilities whose values are based on valuation techniques that require inputs that are unobservable. These inputs may reflect estimates of the assumptions that market participants would use in valuing the financial assets and liabilities. | |||||||||||
The following table summarizes our financial assets and liabilities that were measured at fair value by level within the fair value hierarchy: | ||||||||||||
Fair Value at January 31, 2014 | ||||||||||||
(in thousands) | ||||||||||||
Total | Level 1 | Level 2 | ||||||||||
Assets | ||||||||||||
Cash equivalents | $ | 3,555 | $ | 3,555 | $ | — | ||||||
Marketable equity securities | 87 | 87 | — | |||||||||
Cash surrender value of life insurance | 4,493 | — | 4,493 | |||||||||
Cash equivalents are classified as Level 1 of the fair value hierarchy because they were valued using quoted market prices in active markets. These cash instruments are primarily money market mutual funds and are included in cash and cash equivalents on the condensed Consolidated Balance Sheets. | ||||||||||||
Marketable equity securities were valued using quoted market prices in active markets and as such are classified as Level 1 in the fair value hierarchy. These securities represent stock we own in one publicly traded company and are included in other assets on the condensed Consolidated Balance Sheets. | ||||||||||||
Cash surrender value of life insurance is classified as Level 2. The value was determined by the underwriting insurance company’s valuation models, which take into account the passage of time, mortality tables, interest rates, cash values for paid-up additions and dividend accumulations. The cash surrender value represents the guaranteed value we would receive upon surrender of these policies held on former key employees as of January 31, 2014. The cash surrender value of life insurance is included in other assets on the condensed Consolidated Balance Sheets. | ||||||||||||
The short-term investments on the condensed Consolidated Balance Sheets includes U.S. Treasury securities and certificates of deposit. We have the ability to hold our short-term investments to maturity and intend to do so; therefore, these investments were reported at amortized cost on the condensed Consolidated Balance Sheets, which approximated fair value as of January 31, 2014. These balances are excluded from the above table. | ||||||||||||
Accounts receivable and accounts payable balances on the condensed Consolidated Balance Sheets approximated their fair values at January 31, 2014 due to the short maturity and nature of those balances; therefore, these balances are excluded from the above table. | ||||||||||||
Prepaid expenses and other assets on the condensed Consolidated Balance Sheets includes a receivable for the amount due to us upon the sale of the real property retained by MFM Industries Inc. ("MFM") per the acquisition agreement described in Note 9. The portion of the acquisition purchase cost assigned to this receivable of $500,000 is estimated based on the fair value of the real property. The fair value was determined using a market valuation approach and is classified as Level 3. This receivable will be carried at the allocated purchase cost and will be evaluated for impairment on an ongoing basis; therefore, this amount is excluded from the above table. | ||||||||||||
The carrying values of notes payable approximated their fair values at January 31, 2014 and are excluded from the above table. The estimated fair value of notes payable, including current maturities, was $23,981,000 as of January 31, 2014. Our debt does not trade on a daily basis in an active market, therefore the fair value estimate is based on market observable borrowing rates currently available for debt with similar terms and average maturities and is classified as Level 2. | ||||||||||||
We apply fair value techniques on a non-recurring basis associated with: (1) valuing potential impairment loss related to goodwill and indefinite-lived intangible assets and (2) valuing potential impairment loss related to long-lived assets. Our annual goodwill impairment analysis was performed in the first quarter of fiscal 2014 and did not indicate any impairment. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 6 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Pension and Other Postretirement Benefit Expense [Abstract] | ' | |||||||||||||||
Pension and Other Postretirement Benefits Disclosure | ' | |||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | ||||||||||||||||
The components of net periodic pension and postretirement health benefit costs were as follows: | ||||||||||||||||
Pension Benefits | ||||||||||||||||
(in thousands) | ||||||||||||||||
For the Three Months Ended January 31, | For the Six Months Ended January 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 361 | $ | 417 | $ | 721 | $ | 876 | ||||||||
Interest cost | 435 | 384 | 871 | 772 | ||||||||||||
Expected return on plan assets | (429 | ) | (373 | ) | (858 | ) | (755 | ) | ||||||||
Amortization of: | ||||||||||||||||
Prior service costs | 4 | 4 | 7 | 7 | ||||||||||||
Other actuarial loss | 78 | 220 | 156 | 442 | ||||||||||||
Net periodic benefit cost | $ | 449 | $ | 652 | $ | 897 | $ | 1,342 | ||||||||
Postretirement Health Benefits | ||||||||||||||||
(in thousands) | ||||||||||||||||
For the Three Months Ended January 31, | For the Six Months Ended January 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 30 | $ | 34 | $ | 60 | $ | 68 | ||||||||
Interest cost | 29 | 24 | 58 | 48 | ||||||||||||
Amortization of: | ||||||||||||||||
Net transition obligation | 4 | 4 | 8 | 8 | ||||||||||||
Prior service costs | (2 | ) | — | (3 | ) | — | ||||||||||
Other actuarial loss | 8 | 13 | 15 | 26 | ||||||||||||
Net periodic benefit cost | $ | 69 | $ | 75 | $ | 138 | $ | 150 | ||||||||
Our plan covering postretirement health benefits is an unfunded plan. We have funded the pension plan based upon actuarially determined contributions that take into account the amount deductible for income tax purposes, the normal cost and the minimum and the maximum contribution requirements of various regulations. We contributed $230,000 to our pension plan during the second quarter ended January 31, 2014. We estimate contributions will be $601,000 for the remainder of fiscal 2014. See Item 3. "Quantitative and Qualitative Disclosures About Market Risk" for a discussion of the potential impact of financial market fluctuations on pension plan assets and future funding contributions. | ||||||||||||||||
Assumptions used in the previous calculations were as follows: | ||||||||||||||||
Pension Benefits | Postretirement Health Benefits | |||||||||||||||
For the Three and Six Months Ended January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Discount rate for net periodic benefit cost | 4.8 | % | 3.75 | % | 4.8 | % | 3.75 | % | ||||||||
Rate of increase in compensation levels | 3.5 | % | 3.5 | % | — | — | ||||||||||
Long-term expected rate of return on assets | 7.5 | % | 7.5 | % | — | — | ||||||||||
The medical cost trend assumption for postretirement health benefits was 8.0%. The graded trend rate is expected to decrease to an ultimate rate of 5.0% in fiscal 2024. |
Operating_Segment
Operating Segment | 6 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Operating Segment Disclosure | ' | |||||||||||||||
OPERATING SEGMENTS | ||||||||||||||||
We have two operating segments: (1) Retail and Wholesale Products and (2) Business to Business Products. These segments are managed separately because each business has different customer characteristics. Net sales and operating income for each segment are provided below. Revenues by product line are not provided because it would be impracticable to do so. The accounting policies of the segments are the same as those described in Note 1 of the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2013. | ||||||||||||||||
We do not rely on any operating segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. The corporate expenses line includes certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the estimated annual incentive plan bonus accrual. | ||||||||||||||||
Assets | ||||||||||||||||
January 31, 2014 | July 31, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Business to Business Products | $ | 55,116 | $ | 53,721 | ||||||||||||
Retail and Wholesale Products | 91,207 | 76,376 | ||||||||||||||
Unallocated Assets | 37,537 | 53,462 | ||||||||||||||
Total Assets | $ | 183,860 | $ | 183,559 | ||||||||||||
For the Six Months Ended January 31, | ||||||||||||||||
Net Sales | Income | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Business to Business Products | $ | 49,179 | $ | 43,497 | $ | 15,644 | $ | 14,624 | ||||||||
Retail and Wholesale Products | 83,672 | 79,042 | 4,257 | 6,460 | ||||||||||||
Total Sales | $ | 132,851 | $ | 122,539 | ||||||||||||
Corporate Expenses | (9,825 | ) | (11,238 | ) | ||||||||||||
Capacity Rationalization Charges | — | (62 | ) | |||||||||||||
Income from Operations | 10,076 | 9,784 | ||||||||||||||
Total Other Expense, Net | (653 | ) | (696 | ) | ||||||||||||
Income before Income Taxes | 9,423 | 9,088 | ||||||||||||||
Income Taxes | (2,255 | ) | (2,490 | ) | ||||||||||||
Net Income | $ | 7,168 | $ | 6,598 | ||||||||||||
For the Three Months Ended January 31, | ||||||||||||||||
Net Sales | Income | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Business to Business Products | $ | 25,264 | $ | 21,715 | $ | 7,993 | $ | 7,101 | ||||||||
Retail and Wholesale Products | 44,041 | 39,407 | 2,982 | 1,936 | ||||||||||||
Total Sales | $ | 69,305 | $ | 61,122 | ||||||||||||
Corporate Expenses | (5,241 | ) | (5,602 | ) | ||||||||||||
Capacity Rationalization Charges | — | (50 | ) | |||||||||||||
Income from Operations | 5,734 | 3,385 | ||||||||||||||
Total Other Expense, Net | (204 | ) | (354 | ) | ||||||||||||
Income before Income Taxes | 5,530 | 3,031 | ||||||||||||||
Income Taxes | (1,249 | ) | (885 | ) | ||||||||||||
Net Income | $ | 4,281 | $ | 2,146 | ||||||||||||
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments | ' | ||||||||||||
STOCK-BASED COMPENSATION | |||||||||||||
We determine the fair value of stock options and restricted stock issued under our long term incentive plans as of the grant date. We recognized the related compensation expense over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service to the Company. | |||||||||||||
The Oil-Dri Corporation of America 2006 Long Term Incentive Plan (the “2006 Plan”) permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash-based awards. Our employees and outside directors are eligible to receive grants under the 2006 Plan. The total number of shares of stock subject to grants under the 2006 Plan may not exceed 937,500. Stock options have been granted to our outside directors with a vesting period of one year and stock options granted to employees generally vest 25% two years after the grant date and in each of the three following anniversaries of the grant date. In addition, restricted shares have been issued under the 2006 Plan as described in the restricted stock section below. | |||||||||||||
The Oil-Dri Corporation of America Outside Director Stock Plan provides for grants of stock options to directors. Stock options have been granted to our directors with a one year vesting period. There are no shares available for future grants under this plan. All shares of stock issued under this plan were from treasury stock. | |||||||||||||
Stock Options | |||||||||||||
A summary of stock option transactions as of January 31, 2014 is shown below: | |||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (Years) | (in thousands) | |||||||||||
Options outstanding, July 31, 2013 | 60 | $ | 14.25 | 2.3 | $ | 1,059 | |||||||
Exercised | (4 | ) | $ | 12 | $ | 90 | |||||||
Forfeitures | (8 | ) | $ | 9.43 | |||||||||
Options outstanding, January 31, 2014 | 48 | $ | 15.27 | 2.3 | $ | 911 | |||||||
Options exercisable, January 31, 2014 | 48 | $ | 15.27 | 2.3 | $ | 911 | |||||||
There were no stock options exercised during the second quarter of fiscal 2014. The amount of cash received from the exercise of stock options during the second quarter of fiscal 2013 was $591,000 and the related tax benefit was $255,000. The amount of cash received from the exercise of stock options during the first six months of fiscal 2014 was $51,000 and the related tax benefit was $24,000. The amount of cash received from the exercise of stock options during the first six months of fiscal 2013 was $652,000 and the related tax benefit was $268,000. | |||||||||||||
No stock options were granted in the first six months of either fiscal 2014 or 2013. | |||||||||||||
Restricted Stock | |||||||||||||
All of our non-vested restricted stock as of January 31, 2014 was issued under the 2006 Plan with vesting periods between two years and five years. | |||||||||||||
Under the 2006 Plan, no new restricted shares of common stock were granted in the second quarter of either fiscal 2014 or fiscal 2013. In the first quarter of fiscal 2014, 22,000 restricted shares of Common Stock and 10,000 restricted shares of Class B stock were granted. In the first quarter of fiscal 2013, 7,000 restricted shares of Class B stock were granted. | |||||||||||||
Included in our stock-based compensation expense in the second quarter of fiscal years 2014 and 2013 was $319,000 and $210,000, respectively, related to non-vested restricted stock. In the first six months of fiscal years 2014 and 2013, the expense related to unvested restricted stock was $560,000 and 413,000, respectively. | |||||||||||||
A summary of restricted stock transactions under the plan is shown below: | |||||||||||||
Restricted Shares | Weighted Average Grant Date Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Non-vested restricted stock outstanding at July 31, 2013 | 117 | $ | 22.24 | ||||||||||
Vested | (27 | ) | $ | 21.67 | |||||||||
Granted | 32 | $ | 34.55 | ||||||||||
Forfeitures | (4 | ) | $ | 21.8 | |||||||||
Non-vested restricted stock outstanding at January 31, 2014 | 118 | $ | 25.72 | ||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 6 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income by component as of January 31, 2014 (in thousands): | ||||||||||||||||
Unrealized Gain (Loss) on Marketable Securities | Pension and Postretirement Health Benefits | Cumulative Translation Adjustment | Total Accumulated Other Comprehensive Income | |||||||||||||
Balance as of July 31, 2013 | $ | 86 | $ | (5,608 | ) | $ | 487 | $ | (5,035 | ) | ||||||
Other comprehensive income before reclassifications, net of tax | (2 | ) | — | (294 | ) | (296 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 113 | a) | — | 113 | |||||||||||
Net current-period other comprehensive income, net of tax | (2 | ) | 113 | (294 | ) | (183 | ) | |||||||||
Balance as of January 31, 2014 | $ | 84 | $ | (5,495 | ) | $ | 193 | $ | (5,218 | ) | ||||||
a) Amount is net of tax expense of $70,000. Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. See Note 5 for further information. |
Acquisition_Notes
Acquisition (Notes) | 6 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Acquisition [Abstract] | ' | |||||||||||||
Acquisition | ' | |||||||||||||
ACQUISITION | ||||||||||||||
On November 1, 2013, we acquired certain assets of MFM, a company engaged in the manufacturing, marketing and distribution of primarily private label cat litter. MFM and its parent company, MFM Delaware, Inc., had filed for bankruptcy in May 2013. The purchase of MFM’s cat litter business assets was a strategic business decision intended to expand our private label cat litter business. We did not acquire any land or mineral rights nor did we operate the MFM plant. MFM’s customers’ orders were transitioned to our existing cat litter manufacturing plants which had available capacity and were producing similar cat litter products. | ||||||||||||||
This transaction qualifies as a business combination for accounting purposes, therefore the assets acquired were recorded at their respective estimated fair values at the date of acquisition. The excess of the purchase price over those fair values is recorded as goodwill. The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed at the acquisition date. The fair values are subject to refinement within the measurement period as we finalize our valuations. | ||||||||||||||
Estimated Fair Value as of November 1, 2013 | ||||||||||||||
(in thousands) | ||||||||||||||
Consideration transferred: | ||||||||||||||
Cash | $ | 12,505 | ||||||||||||
Contingent Consideration | 500 | |||||||||||||
Fair value of total consideration transferred | 13,005 | |||||||||||||
Recognized amounts of identifiable assets acquired: | ||||||||||||||
Inventories | $ | 664 | ||||||||||||
Current assets | 630 | |||||||||||||
Deferred taxes - current | 190 | |||||||||||||
Equipment | 299 | |||||||||||||
Deferred taxes - noncurrent | 46 | |||||||||||||
Customer list | 7,785 | |||||||||||||
Total identifiable net assets | 9,614 | |||||||||||||
Goodwill | $ | 3,391 | ||||||||||||
Inventories acquired included finished goods, packaging supplies and raw materials. The inventory fair value was determined using the comparative sales method approach. | ||||||||||||||
The MFM purchase agreement provides that we will receive half of the proceeds upon the sale of the real property retained by MFM. The receivable was valued at $500,000 based upon the fair value of the real property, which was determined using a market valuation approach, which may not be the ultimate sale price of the property. We expect to receive these proceeds within a year since MFM is required to sell the real property in order to resolve its bankruptcy proceedings. This receivable is included in current assets on the condensed Consolidated Balance Sheets. Current assets also includes a $130,000 prepaid asset for MFM deposits held by packaging suppliers to which we are entitled. | ||||||||||||||
Various machinery and equipment purchased was valued primarily using a market valuation approach; however, a cost approach was used for certain equipment for which appropriate market comparisons were not available. | ||||||||||||||
We deposited $500,000 in an escrow account to fund our maximum obligation to indemnify MFM for expenses incurred to prepare and sell the real property retained by MFM. We expect the full escrow amount to be spent within a year. The cash held in escrow is shown as restricted cash and the corresponding liability is included in current liabilities on the condensed Consolidated Balance Sheets. | ||||||||||||||
We acquired a customer list which was recorded as an intangible asset at fair value using an income valuation approach. The valuation process estimated the present value of the anticipated benefits in excess of the returns on the contributory assets required to realize those benefits. The value of the customer list will be amortized over a period of 10 years with an accelerated amortization rate in the earlier years to reflect the expected pattern of decline in the related benefits over time. This customer list is related to the Retail and Wholesale Products Group segment. | ||||||||||||||
The goodwill recorded from the acquisition is primarily attributable to anticipated synergies of our product portfolios. All of the goodwill recognized is deductible for tax purposes. This goodwill is related to the Retail and Wholesale Products Group segment. | ||||||||||||||
Deferred taxes reflects primarily the difference between the book basis and tax basis of the accrued expense to indemnify MFM for costs incurred to prepare and sell the real property retained by MFM. | ||||||||||||||
We incurred $120,000 of acquisition-related costs, primarily in the first quarter of fiscal 2014, which are included in selling, general and administrative expenses on the condensed Consolidated Statements of Income and Retained Earnings. | ||||||||||||||
The summarized proforma financial information below presents the combined results of operations as if the acquisition of MFM had occurred as of August 1, 2012. MFM’s pre-acquisition results have been added to Oil-Dri’s historical results and include certain adjustments related to the acquisition, such as amortization of intangible assets and depreciation expense. These proforma results do not include any anticipated cost synergies and do not reflect the actual results of operations that would have been achieved, nor are they indicative of future results of operations. The following proforma results are presented for comparative purposes only (unaudited) (in thousands, except per share amounts): | ||||||||||||||
Three months ended | Six months ended | |||||||||||||
January 31, | January 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Proforma net sales | $ | 69,305 | $ | 66,697 | $ | 137,817 | $ | 133,794 | ||||||
Proforma net income | $ | 4,209 | $ | 2,057 | $ | 6,802 | $ | 6,335 | ||||||
Proforma net income per share - Basic Common | $ | 0.64 | $ | 0.32 | $ | 1.04 | $ | 0.98 | ||||||
Proforma net income per share - Basic Class B | $ | 0.48 | $ | 0.24 | $ | 0.78 | $ | 0.74 | ||||||
Proforma net income per share - Diluted | $ | 0.59 | $ | 0.29 | $ | 0.96 | $ | 0.9 | ||||||
The net sales for MFM-related customers after the acquisition that are included in our condensed consolidated financial statements for the second quarter of fiscal 2014 were approximately $3,000,000. The amount of net income specifically attributed to these customers cannot be determined because MFM’s customers’ orders were fulfilled in our existing cat litter manufacturing plants and with our existing sales team and logistics processes. |
Basis_of_Statement_Presentatio1
Basis of Statement Presentation Level 2 (Policies) | 6 Months Ended |
Jan. 31, 2014 | |
BASIS OF STATEMENT PRESENTATION [Abstract] | ' |
Revenue Recognition | ' |
Under the terms of our sales agreements with customers, we recognize revenue when risk of loss and title are transferred. An invoice is generated upon shipment that sets the fixed and determinable price. Trade promotion reserves are provided for sales incentives made directly to consumers, such as coupons, and made to customers, such as slotting, discounts based on sales volume, cooperative marketing programs and other arrangements. Such trade promotion costs are netted against sales. Sales returns and allowances are not material. | |
Selling, General and Administrative Expenses | ' |
Selling, general and administrative expenses include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all advertising and marketing-related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. | |
Trade Receivable | ' |
We evaluate our allowance for doubtful accounts utilizing a combination of historical experience and periodic review of our accounts receivable aging and specific customer account analysis. A customer account is determined to be uncollectible when we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. | |
Overburden Removal and Mining Costs | ' |
As part of our overall operations, we mine sorbent materials on property that we either own or lease. A significant part of our overall mining cost is incurred during the process of removing the overburden (non-usable material) from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. The pre-production overburden removal costs associated with opening a new mine are deferred as prepaid expense and amortized. | |
Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral patents, including legal fees and drilling expenses, are also capitalized. Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the minerals are also capitalized. All exploration related costs are expensed as incurred. | |
Reclamation | ' |
We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, thereby minimizing the costs associated with the reclamation process. |
Inventories_Level_2_Policies
Inventories Level 2 (Policies) | 6 Months Ended |
Jan. 31, 2014 | |
INVENTORIES [Abstract] | ' |
Inventories | ' |
Inventories are valued at the lower of cost (first-in, first-out) or market. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We perform a quarterly review of our inventory items to determine if an obsolescence reserve adjustment is necessary. The review surveys all of our operating facilities and sales groups to ensure that both historical issues and new market trends are considered. The allowance not only considers specific items, but also takes into consideration the overall value of the inventory as of the balance sheet date. |
Operating_Segment_Level_2_Poli
Operating Segment Level 2 (Policies) | 6 Months Ended |
Jan. 31, 2014 | |
Segment Reporting [Abstract] | ' |
Operating Segment | ' |
We have two operating segments: (1) Retail and Wholesale Products and (2) Business to Business Products. These segments are managed separately because each business has different customer characteristics. Net sales and operating income for each segment are provided below. Revenues by product line are not provided because it would be impracticable to do so. The accounting policies of the segments are the same as those described in Note 1 of the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2013. |
StockBased_Compensation_Level_
Stock-Based Compensation Level 2 (Policies) | 6 Months Ended |
Jan. 31, 2014 | |
STOCK-BASED COMPENSATION [Abstract] | ' |
Stock-based Compensation Policy | ' |
We determine the fair value of stock options and restricted stock issued under our long term incentive plans as of the grant date. We recognized the related compensation expense over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service to the Company. |
Acquisition_Policies
Acquisition (Policies) | 6 Months Ended |
Jan. 31, 2014 | |
Acquisition [Abstract] | ' |
Acquisition Policy | ' |
This transaction qualifies as a business combination for accounting purposes, therefore the assets acquired were recorded at their respective estimated fair values at the date of acquisition. The excess of the purchase price over those fair values is recorded as goodwill. |
Inventories_Level_3_Tables
Inventories Level 3 (Tables) | 6 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
INVENTORIES [Abstract] | ' | |||||||
Inventories | ' | |||||||
The composition of inventories is as follows (in thousands): | ||||||||
January 31, | July 31, | |||||||
2014 | 2013 | |||||||
Finished goods | $ | 13,130 | $ | 12,112 | ||||
Packaging | 5,191 | 4,003 | ||||||
Other | 4,413 | 4,608 | ||||||
Total Inventories | $ | 22,734 | $ | 20,723 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | |||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||
The following table summarizes our financial assets and liabilities that were measured at fair value by level within the fair value hierarchy: | ||||||||||||
Fair Value at January 31, 2014 | ||||||||||||
(in thousands) | ||||||||||||
Total | Level 1 | Level 2 | ||||||||||
Assets | ||||||||||||
Cash equivalents | $ | 3,555 | $ | 3,555 | $ | — | ||||||
Marketable equity securities | 87 | 87 | — | |||||||||
Cash surrender value of life insurance | 4,493 | — | 4,493 | |||||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS [Abstract] | ' | |||||||||||||||
Schedule of Net Benefit Costs | ' | |||||||||||||||
The components of net periodic pension and postretirement health benefit costs were as follows: | ||||||||||||||||
Pension Benefits | ||||||||||||||||
(in thousands) | ||||||||||||||||
For the Three Months Ended January 31, | For the Six Months Ended January 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 361 | $ | 417 | $ | 721 | $ | 876 | ||||||||
Interest cost | 435 | 384 | 871 | 772 | ||||||||||||
Expected return on plan assets | (429 | ) | (373 | ) | (858 | ) | (755 | ) | ||||||||
Amortization of: | ||||||||||||||||
Prior service costs | 4 | 4 | 7 | 7 | ||||||||||||
Other actuarial loss | 78 | 220 | 156 | 442 | ||||||||||||
Net periodic benefit cost | $ | 449 | $ | 652 | $ | 897 | $ | 1,342 | ||||||||
Postretirement Health Benefits | ||||||||||||||||
(in thousands) | ||||||||||||||||
For the Three Months Ended January 31, | For the Six Months Ended January 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 30 | $ | 34 | $ | 60 | $ | 68 | ||||||||
Interest cost | 29 | 24 | 58 | 48 | ||||||||||||
Amortization of: | ||||||||||||||||
Net transition obligation | 4 | 4 | 8 | 8 | ||||||||||||
Prior service costs | (2 | ) | — | (3 | ) | — | ||||||||||
Other actuarial loss | 8 | 13 | 15 | 26 | ||||||||||||
Net periodic benefit cost | $ | 69 | $ | 75 | $ | 138 | $ | 150 | ||||||||
Schedule of Assumptions Used | ' | |||||||||||||||
Assumptions used in the previous calculations were as follows: | ||||||||||||||||
Pension Benefits | Postretirement Health Benefits | |||||||||||||||
For the Three and Six Months Ended January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Discount rate for net periodic benefit cost | 4.8 | % | 3.75 | % | 4.8 | % | 3.75 | % | ||||||||
Rate of increase in compensation levels | 3.5 | % | 3.5 | % | — | — | ||||||||||
Long-term expected rate of return on assets | 7.5 | % | 7.5 | % | — | — | ||||||||||
The medical cost trend assumption for postretirement health benefits was 8.0%. The graded trend rate is expected to decrease to an ultimate rate of 5.0% in fiscal 2024. |
Operating_Segment_Tables
Operating Segment (Tables) | 6 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Operating Segment Information | ' | |||||||||||||||
Assets | ||||||||||||||||
January 31, 2014 | July 31, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Business to Business Products | $ | 55,116 | $ | 53,721 | ||||||||||||
Retail and Wholesale Products | 91,207 | 76,376 | ||||||||||||||
Unallocated Assets | 37,537 | 53,462 | ||||||||||||||
Total Assets | $ | 183,860 | $ | 183,559 | ||||||||||||
For the Six Months Ended January 31, | ||||||||||||||||
Net Sales | Income | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Business to Business Products | $ | 49,179 | $ | 43,497 | $ | 15,644 | $ | 14,624 | ||||||||
Retail and Wholesale Products | 83,672 | 79,042 | 4,257 | 6,460 | ||||||||||||
Total Sales | $ | 132,851 | $ | 122,539 | ||||||||||||
Corporate Expenses | (9,825 | ) | (11,238 | ) | ||||||||||||
Capacity Rationalization Charges | — | (62 | ) | |||||||||||||
Income from Operations | 10,076 | 9,784 | ||||||||||||||
Total Other Expense, Net | (653 | ) | (696 | ) | ||||||||||||
Income before Income Taxes | 9,423 | 9,088 | ||||||||||||||
Income Taxes | (2,255 | ) | (2,490 | ) | ||||||||||||
Net Income | $ | 7,168 | $ | 6,598 | ||||||||||||
For the Three Months Ended January 31, | ||||||||||||||||
Net Sales | Income | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Business to Business Products | $ | 25,264 | $ | 21,715 | $ | 7,993 | $ | 7,101 | ||||||||
Retail and Wholesale Products | 44,041 | 39,407 | 2,982 | 1,936 | ||||||||||||
Total Sales | $ | 69,305 | $ | 61,122 | ||||||||||||
Corporate Expenses | (5,241 | ) | (5,602 | ) | ||||||||||||
Capacity Rationalization Charges | — | (50 | ) | |||||||||||||
Income from Operations | 5,734 | 3,385 | ||||||||||||||
Total Other Expense, Net | (204 | ) | (354 | ) | ||||||||||||
Income before Income Taxes | 5,530 | 3,031 | ||||||||||||||
Income Taxes | (1,249 | ) | (885 | ) | ||||||||||||
Net Income | $ | 4,281 | $ | 2,146 | ||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||||||||||
Schedule of Stock Options Activity | ' | ||||||||||||
A summary of stock option transactions as of January 31, 2014 is shown below: | |||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(in thousands) | (Years) | (in thousands) | |||||||||||
Options outstanding, July 31, 2013 | 60 | $ | 14.25 | 2.3 | $ | 1,059 | |||||||
Exercised | (4 | ) | $ | 12 | $ | 90 | |||||||
Forfeitures | (8 | ) | $ | 9.43 | |||||||||
Options outstanding, January 31, 2014 | 48 | $ | 15.27 | 2.3 | $ | 911 | |||||||
Options exercisable, January 31, 2014 | 48 | $ | 15.27 | 2.3 | $ | 911 | |||||||
Schedule of Restricted Stock Transactions | ' | ||||||||||||
A summary of restricted stock transactions under the plan is shown below: | |||||||||||||
Restricted Shares | Weighted Average Grant Date Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Non-vested restricted stock outstanding at July 31, 2013 | 117 | $ | 22.24 | ||||||||||
Vested | (27 | ) | $ | 21.67 | |||||||||
Granted | 32 | $ | 34.55 | ||||||||||
Forfeitures | (4 | ) | $ | 21.8 | |||||||||
Non-vested restricted stock outstanding at January 31, 2014 | 118 | $ | 25.72 | ||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income by Component | ' | |||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income by component as of January 31, 2014 (in thousands): | ||||||||||||||||
Unrealized Gain (Loss) on Marketable Securities | Pension and Postretirement Health Benefits | Cumulative Translation Adjustment | Total Accumulated Other Comprehensive Income | |||||||||||||
Balance as of July 31, 2013 | $ | 86 | $ | (5,608 | ) | $ | 487 | $ | (5,035 | ) | ||||||
Other comprehensive income before reclassifications, net of tax | (2 | ) | — | (294 | ) | (296 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | — | 113 | a) | — | 113 | |||||||||||
Net current-period other comprehensive income, net of tax | (2 | ) | 113 | (294 | ) | (183 | ) | |||||||||
Balance as of January 31, 2014 | $ | 84 | $ | (5,495 | ) | $ | 193 | $ | (5,218 | ) | ||||||
a) Amount is net of tax expense of $70,000. Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. See Note 5 for further information. |
Acquisition_Tables
Acquisition (Tables) | 6 Months Ended | |||||||||||||
Jan. 31, 2014 | ||||||||||||||
Acquisition [Abstract] | ' | |||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | |||||||||||||
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed at the acquisition date. The fair values are subject to refinement within the measurement period as we finalize our valuations. | ||||||||||||||
Estimated Fair Value as of November 1, 2013 | ||||||||||||||
(in thousands) | ||||||||||||||
Consideration transferred: | ||||||||||||||
Cash | $ | 12,505 | ||||||||||||
Contingent Consideration | 500 | |||||||||||||
Fair value of total consideration transferred | 13,005 | |||||||||||||
Recognized amounts of identifiable assets acquired: | ||||||||||||||
Inventories | $ | 664 | ||||||||||||
Current assets | 630 | |||||||||||||
Deferred taxes - current | 190 | |||||||||||||
Equipment | 299 | |||||||||||||
Deferred taxes - noncurrent | 46 | |||||||||||||
Customer list | 7,785 | |||||||||||||
Total identifiable net assets | 9,614 | |||||||||||||
Goodwill | $ | 3,391 | ||||||||||||
Business Acquisition, Pro Forma Information | ' | |||||||||||||
The following proforma results are presented for comparative purposes only (unaudited) (in thousands, except per share amounts): | ||||||||||||||
Three months ended | Six months ended | |||||||||||||
January 31, | January 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Proforma net sales | $ | 69,305 | $ | 66,697 | $ | 137,817 | $ | 133,794 | ||||||
Proforma net income | $ | 4,209 | $ | 2,057 | $ | 6,802 | $ | 6,335 | ||||||
Proforma net income per share - Basic Common | $ | 0.64 | $ | 0.32 | $ | 1.04 | $ | 0.98 | ||||||
Proforma net income per share - Basic Class B | $ | 0.48 | $ | 0.24 | $ | 0.78 | $ | 0.74 | ||||||
Proforma net income per share - Diluted | $ | 0.59 | $ | 0.29 | $ | 0.96 | $ | 0.9 | ||||||
Inventories_Details
Inventories (Details) (USD $) | Jan. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finished goods | $13,130 | $12,112 |
Packaging | 5,191 | 4,003 |
Other | 4,413 | 4,608 |
Total Inventories | $22,734 | $20,723 |
Inventories_Narrative_Details
Inventories Narrative (Details) (USD $) | Jan. 31, 2014 | Jul. 31, 2013 |
Inventory obsolescence reserve | $348,000 | $364,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' |
Cash equivalents | $3,555 |
Marketable equity securities | 87 |
Cash surrender value of life insurance | 4,493 |
Level 1 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' |
Cash equivalents | 3,555 |
Marketable equity securities | 87 |
Cash surrender value of life insurance | 0 |
Level 2 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' |
Cash equivalents | 0 |
Marketable equity securities | 0 |
Cash surrender value of life insurance | $4,493 |
Fair_Value_Measurements_Narrat
Fair Value Measurements Narrative (Details) (USD $) | Jan. 31, 2014 | Nov. 02, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Contingent consideration receivable | $500,000 | $500,000 |
Notes Payable, Fair Value | $23,981,000 | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Pension Plan | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' | ' | ' |
Service cost | $361 | $417 | $721 | $876 |
Interest cost | 435 | 384 | 871 | 772 |
Expected return on plan assets | -429 | -373 | -858 | -755 |
Amortization of Prior service costs | 4 | 4 | 7 | 7 |
Amortization of Other actuarial loss | 78 | 220 | 156 | 442 |
Net periodic benefit cost | 449 | 652 | 897 | 1,342 |
Postretirement Health Plan | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' | ' | ' |
Service cost | 30 | 34 | 60 | 68 |
Interest cost | 29 | 24 | 58 | 48 |
Amortization of Net transition obligation | 4 | 4 | 8 | 8 |
Amortization of Prior service costs | -2 | 0 | -3 | 0 |
Amortization of Other actuarial loss | 8 | 13 | 15 | 26 |
Net periodic benefit cost | $69 | $75 | $138 | $150 |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefits Assumptions (Details) | 6 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Pension Plan | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' |
Discount rate for net periodic benefit cost | 4.80% | 3.75% |
Rate of increase in compensation levels | 3.50% | 3.50% |
Long-term expected rate of return on assets | 7.50% | 7.50% |
Postretirement Health Plan | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' |
Discount rate for net periodic benefit cost | 4.80% | 3.75% |
Rate of increase in compensation levels | 0.00% | 0.00% |
Long-term expected rate of return on assets | 0.00% | 0.00% |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Benefits Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended |
Jan. 31, 2014 | Jan. 31, 2014 | |
Pension Plan | Postretirement Health Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans | ' | ' |
Employer contributions to date during current fiscal year | $230,000 | ' |
Estimated contributions in remainder of current fiscal year | $601,000 | ' |
Medical Cost Trend Assumption | ' | 8.00% |
Ultimate Health Care Cost Trend Rate | ' | 5.00% |
Year that Rate Reaches Ultimate Trend Rate | ' | '2024 |
Operating_Segment_Details
Operating Segment (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jul. 31, 2013 |
Segment Reporting Information | ' | ' | ' | ' | ' |
Assets | $183,860 | ' | $183,860 | ' | $183,559 |
Total Sales | 69,305 | 61,122 | 132,851 | 122,539 | ' |
Corporate Expenses | -5,241 | -5,602 | -9,825 | -11,238 | ' |
Capacity Rationalization Charges | 0 | -50 | 0 | -62 | ' |
Income from Operations | 5,734 | 3,385 | 10,076 | 9,784 | ' |
Total Other Expense, Net | -204 | -354 | -653 | -696 | ' |
Income before Income Taxes | 5,530 | 3,031 | 9,423 | 9,088 | ' |
Income Taxes | -1,249 | -885 | -2,255 | -2,490 | ' |
Net Income | 4,281 | 2,146 | 7,168 | 6,598 | ' |
Business to Business Products | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Assets | 55,116 | ' | 55,116 | ' | 53,721 |
Segment Net Sales | 25,264 | 21,715 | 49,179 | 43,497 | ' |
Segment Income | 7,993 | 7,101 | 15,644 | 14,624 | ' |
Retail and Wholesale Products | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Assets | 91,207 | ' | 91,207 | ' | 76,376 |
Segment Net Sales | 44,041 | 39,407 | 83,672 | 79,042 | ' |
Segment Income | 2,982 | 1,936 | 4,257 | 6,460 | ' |
Unallocated Assets | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Assets | $37,537 | ' | $37,537 | ' | $53,462 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (Stock Options, USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2014 | Jul. 31, 2013 |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Options Outstanding, Number (shares) | 48,000 | 48,000 | 60,000 |
Options, Outstanding, Weighted Average Exercise Price | $15.27 | $15.27 | $14.25 |
Options, Outstanding, Weighted Average Remaining Contractual Term (years) | ' | '2 years 3 months 15 days | '2 years 3 months 19 days |
Options, Outstanding, Aggregate Intrinsic Value | $911 | $911 | $1,059 |
Exercised, Number (shares) | 0 | -4,000 | ' |
Exercised, Weighted Average Exercise Price | ' | $12 | ' |
Exercised, Aggregate Intrinsic Value | ' | 90 | ' |
Forfeitures, Number (shares) | ' | -8,000 | ' |
Forfeitures, Weighted Average Exercise Price | ' | $9.43 | ' |
Options Exercisable, Number (shares) | 48,000 | 48,000 | ' |
Exercisable, Weighted Average Exercise Price | $15.27 | $15.27 | ' |
Exercisable, Weighted Average Remaining Contractual Term (years) | ' | '2 years 3 months 15 days | ' |
Exercisable, Aggregate Intrinsic Value | $911 | $911 | ' |
StockBased_Compensation_Summar
Stock-Based Compensation Summary of Restricted Stock Transactions (Details) (Restricted Stock, USD $) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jul. 31, 2013 | |
Restricted Stock | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Non-vested Restricted Stock Outstanding, Number (shares) | 118,000 | ' | 118,000 | 117,000 |
Non-vested Restricted Stock Outstanding, Weighted Average Grant Date Fair Value | $25.72 | ' | $25.72 | $22.24 |
Vested, Number (shares) | ' | ' | -27,000 | ' |
Vested, Weighted Average Grant Date Fair Value | ' | ' | $21.67 | ' |
Granted, Number (shares) | 0 | 0 | 32,000 | ' |
Granted, Weighted Average Grant Date Fair Value | ' | ' | $34.55 | ' |
Forfeitures, Number (shares) | ' | ' | -4,000 | ' |
Forfeiture, Weighted Average Grant Date Fair Value | ' | ' | $21.80 | ' |
StockBased_Compensation_Narrat
Stock-Based Compensation Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | |
Stock Options | Stock Options | Stock Options | Stock Options | Restricted Stock | Restricted Stock | Restricted Stock | Directors' Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan | 2006 Plan - Director Stock Option | 2006 Plan - Employee Stock Options | Common Stock | Common Class B | Common Class B | |
Stock Options | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Stock Options | Stock Options | Restricted Stock | Restricted Stock | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Authorized (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 937,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award Vesting Period (Years) | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' |
Annual Vesting Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Number of years after grant date vesting starts (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' |
Number of consecutive years vesting occurs after initial vest date (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Number available for grant (shares) | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares exercised | 0 | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Received from Exercise of Stock Options | ' | $591,000 | $51,000 | $652,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Benefit Realized from Exercise of Stock Options | ' | 255,000 | 24,000 | 268,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, Granted (shares) | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award Vesting Period, Minimum (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' |
Award Vesting Period, Maximum (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' |
Restricted Stock Granted, Number (shares) | ' | ' | ' | ' | 0 | 0 | 32,000 | ' | ' | ' | ' | ' | ' | ' | ' | 22,000 | 10,000 | 7,000 |
Share-based Compensation Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | $319,000 | $210,000 | $560,000 | $413,000 | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Accumulated Other Comprehensive Income, Balance, beginning | ' | ' | ($5,035) | ' |
Other comprehensive income, before reclassifications, net of tax | ' | ' | -296 | ' |
Amounts reclassified from accumulated other comprehensive income, net of tax | ' | ' | 113 | ' |
Net current-period other comprehensive income, net of tax | -165 | 152 | -183 | 321 |
Accumulated Other Comprehensive Income, Balance, ending | -5,218 | ' | -5,218 | ' |
Unrealized Gain (Loss) on Marketable Securities | ' | ' | ' | ' |
Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Accumulated Other Comprehensive Income, Balance, beginning | ' | ' | 86 | ' |
Other comprehensive income, before reclassifications, net of tax | ' | ' | -2 | ' |
Amounts reclassified from accumulated other comprehensive income, net of tax | ' | ' | 0 | ' |
Net current-period other comprehensive income, net of tax | ' | ' | -2 | ' |
Accumulated Other Comprehensive Income, Balance, ending | 84 | ' | 84 | ' |
Pension and Postretirement Health Benefits | ' | ' | ' | ' |
Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Accumulated Other Comprehensive Income, Balance, beginning | ' | ' | -5,608 | ' |
Other comprehensive income, before reclassifications, net of tax | ' | ' | 0 | ' |
Amounts reclassified from accumulated other comprehensive income, net of tax | ' | ' | 113 | ' |
Net current-period other comprehensive income, net of tax | ' | ' | 113 | ' |
Accumulated Other Comprehensive Income, Balance, ending | -5,495 | ' | -5,495 | ' |
Cumulative Translation Adjustment | ' | ' | ' | ' |
Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Accumulated Other Comprehensive Income, Balance, beginning | ' | ' | 487 | ' |
Other comprehensive income, before reclassifications, net of tax | ' | ' | -294 | ' |
Amounts reclassified from accumulated other comprehensive income, net of tax | ' | ' | 0 | ' |
Net current-period other comprehensive income, net of tax | ' | ' | -294 | ' |
Accumulated Other Comprehensive Income, Balance, ending | $193 | ' | $193 | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Narrative (Details) (USD $) | 6 Months Ended |
Jan. 31, 2014 | |
Accumulated Other Comprehensive Income | ' |
Tax for reclassification adjustment from AOCI for pension and other postretirement benefits | $70,000 |
Acquisition_Assets_acquired_De
Acquisition Assets acquired (Details) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Nov. 02, 2013 | Jul. 31, 2013 |
Business Acquisition | ' | ' | ' | ' |
Consideration transferred, Cash | $12,505 | $0 | ' | ' |
Consideration transferred, Contingent consideration | ' | ' | 500 | ' |
Fair value of total consideration transferred | 13,005 | ' | ' | ' |
Recognized amounts of identifiable assets acquired, Inventories | ' | ' | 664 | ' |
Recognized amounts of identifiable assets acquired, Current assets | ' | ' | 630 | ' |
Recognized amounts of identifiable assets acquired, Deferred taxes current | ' | ' | 190 | ' |
Recognized amounts of identifiable assets acquired, Equipment | ' | ' | 299 | ' |
Recognized amounts of identifiable assets acquired, Deferred taxes noncurrent | ' | ' | 46 | ' |
Recognized amount of identifiable assets acquired, Customer list | ' | ' | 7,785 | ' |
Total identifiable net assets acquired | ' | ' | 9,614 | ' |
Goodwill | $8,553 | ' | $3,391 | $5,162 |
Acquisition_Proforma_Details
Acquisition Proforma (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Business Acquisition | ' | ' | ' | ' |
Proforma net sales | $69,305 | $66,697 | $137,817 | $133,794 |
Proforma net income | $4,209 | $2,057 | $6,802 | $6,335 |
Proforma net income per share - Diluted | $0.59 | $0.29 | $0.96 | $0.90 |
Common Stock | ' | ' | ' | ' |
Business Acquisition | ' | ' | ' | ' |
Proforma net income per share - Basic | $0.64 | $0.32 | $1.04 | $0.98 |
Common Class B | ' | ' | ' | ' |
Business Acquisition | ' | ' | ' | ' |
Proforma net income per share - Basic | $0.48 | $0.24 | $0.78 | $0.74 |
Acquisition_Narrative_Details
Acquisition Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2014 | Nov. 02, 2013 | |
Business Acquisition | ' | ' | ' |
Recognized receivable contingent upon sale of real property | $500,000 | $500,000 | $500,000 |
Recognized amounts identifiable assets acquired, Prepaid Expense | ' | ' | 130,000 |
Recognized liability contingent upon real property sale preparation costs | ' | ' | 500,000 |
Weighted average useful life of acquired intangible asset | ' | '10 years | ' |
Acquisition-related costs | ' | ' | 120,000 |
Net sales of acquiree since acquisition date, actual | $3,000,000 | ' | ' |