Virco Mfg. (VIRC) 10-Q 15 Dec 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2015	Dec. 04, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	VIRCO MFG CORPORATION
Entity Central Index Key	751,365
Document Type	10-Q
Document Period End Date	Oct. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--01-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,998,187

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2015	Jan. 31, 2015	Oct. 31, 2014
Current assets:
Cash	$ 1,595	$ 470	$ 1,216
Trade accounts receivables, net	20,369	10,614	14,776
Other receivables	141	43	55
Income tax receivable	266	267	299
Inventories:
Finished goods	5,179	5,602	6,732
Work in process	12,858	11,487	11,676
Raw materials and supplies	9,131	9,589	10,018
Total inventories	27,168	26,678	28,426
Deferred tax assets, net	156	156	203
Prepaid expenses and other current assets	1,098	743	1,308
Total current assets	50,793	38,971	46,283
Property, plant and equipment:
Land	1,671	1,671	1,671
Land improvements	851	851	851
Buildings and building improvements	46,448	47,047	47,047
Machinery and equipment	105,289	110,060	112,228
Leasehold improvements	1,758	1,909	1,894
Total property, plant and equipment	156,017	161,538	163,691
Less accumulated depreciation and amortization	120,742	126,317	128,095
Net property, plant and equipment	35,275	35,221	35,596
Deferred tax assets, net	445	624	545
Other assets	6,932	6,995	6,969
Total assets	93,445	81,811	89,393
Current liabilities:
Accounts payable	13,189	9,901	12,248
Accrued compensation and employee benefits	5,383	4,199	4,012
Current portion of long-term debt	68	3,366	2,018
Deferred tax liabilities	0	0	0
Other accrued liabilities	5,808	3,939	4,885
Total current liabilities	24,448	21,405	23,163
Non-current liabilities:
Accrued self-insurance retention	2,050	1,730	2,083
Accrued pension expenses	27,368	28,986	22,063
Income tax payable	40	42	39
Long-term debt, less current portion	4,064	6,153	6,153
Other accrued liabilities	978	922	1,095
Total non-current liabilities	$ 34,500	$ 37,833	$ 31,433
Commitments and contingencies
Preferred stock:
Authorized 3,000,000 shares, $.01 par value; none issued or outstanding	$ 0	$ 0	$ 0
Common stock:
Authorized 25,000,000 shares, $.01 par value; issued and outstanding 14,998,187 shares at 10/31/2015 and 14,852,640 at 1/31/2015 and 10/31/2014	150	149	148
Additional paid-in capital	116,510	116,348	116,226
Accumulated deficit	(63,414)	(73,690)	(68,560)
Accumulated other comprehensive loss	(18,749)	(20,234)	(13,017)
Total stockholders’ equity	34,497	22,573	34,797
Total liabilities and stockholders’ equity	$ 93,445	$ 81,811	$ 89,393

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 31, 2015	Oct. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	14,998,187	14,852,640
Common stock, shares outstanding	14,998,187	14,852,640

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Income Statement [Abstract]
Net sales	$ 64,981	$ 62,273	$ 149,100	$ 138,698
Costs of goods sold	41,771	41,601	93,701	89,300
Gross profit	23,210	20,672	55,399	49,398
Selling, general and administrative expenses	16,691	15,881	43,763	42,076
Gain on sale of property, plant & equipment	0	(2)	17	(2)
Restructuring expense	0	0	0	62
Operating income (loss)	6,519	4,793	11,619	7,262
Interest expense, net	379	393	1,129	1,227
Income (loss) before income taxes	6,140	4,400	10,490	6,035
Income tax expense (benefit)	137	(232)	214	55
Net income (loss)	$ 6,003	$ 4,632	$ 10,276	$ 5,980
Net income (loss) per common share:
Basic (usd per share)	$ 0.40	$ 0.31	$ 0.69	$ 0.41
Diluted (usd per share)	$ 0.39	$ 0.31	$ 0.67	$ 0.40
Weighted average shares outstanding:
Basic (shares)	14,971	14,824	14,895	14,747
Diluted (shares)	15,324	15,054	15,227	14,934

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) Unaudited - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 6,003	$ 4,632	$ 10,276	$ 5,980
Other comprehensive income (loss) :
Pension adjustments	495	321	1,485	963
Comprehensive income (loss)	$ 6,498	$ 4,953	$ 11,761	$ 6,943

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows Unaudited - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Operating activities
Net income (loss)	$ 10,276	$ 5,980
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,518	3,300
Provision for doubtful accounts	58	115
(Gain) loss on sale of property, plant and equipment	9	(2)
Deferred income taxes	179	36
Stock-based compensation	370	380
Amortization of net actuarial (gain) loss for pension plans, net of tax	1,485	963
Changes in operating assets and liabilities:
Trade accounts receivable	(9,814)	(6,423)
Other receivables	(98)	(3)
Inventories	(490)	(646)
Income taxes	(2)	(9)
Prepaid expenses and other current assets	(292)	307
Accounts payable and accrued liabilities	5,095	(1,044)
Net cash provided by (used in) operating activities	10,294	2,954
Investing activities
Capital expenditures	(3,583)	(2,584)
Proceeds from sale of property, plant and equipment	8	2
Net cash provided by (used in) investing activities	(3,575)	(2,582)
Financing activities
Proceeds from long-term debt	31,960	33,750
Repayment of long-term debt	(37,348)	(33,827)
Common stock repurchased	(206)	(130)
Net cash provided by (used in) financing activities	(5,594)	(207)
Net increase (decrease) in cash	1,125	165
Cash at beginning of year	470	1,051
Cash at end of year	$ 1,595	$ 1,216

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended October 31, 2015 , are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2016 . The balance sheet at January 31, 2015 , has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2015 (“Form 10-K”). All references to the “Company” refer to Virco Mfg. Corporation and its subsidiaries.

Correction of Immaterial Errors

Correction of Immaterial Errors	9 Months Ended
	Oct. 31, 2015
Accounting Changes and Error Corrections [Abstract]
Correction of Immaterial Errors	Correction of Immaterial Errors In connection with the preparation of the January 31, 2015 consolidated financial statements, the Company determined that certain payments directly made to customers, which were previously included in selling, general, and administrative expenses, should instead be reflected as decreases to net sales. The current year Condensed Consolidated Statement of Operations properly reflects payments directly made to customers as decreases to net sales. While the amounts included in prior year were considered to be immaterial, the Company elected to revise the presentation of previously reported amounts to be consistent with the presentation for the quarter ended October 31, 2015. The change resulted in decreases to net sales, gross margin and selling, general, and administrative expenses of $379,000 and $676,000 for the three and nine months ended October 31, 2014, respectively.

Seasonality

Seasonality	9 Months Ended
	Oct. 31, 2015
Seasonality [Abstract]
Seasonality	Seasonality The market for educational furniture is marked by extreme seasonality, with approximately 50% of the Company’s total sales typically occurring from June to August each year, the Company’s peak season. Hence, the Company typically builds and carries significant amounts of inventory during and in anticipation of this peak summer season to facilitate the rapid delivery requirements of customers in the educational market. This requires a large up-front investment in inventory, labor, storage and related costs as inventory is built in anticipation of peak sales during the summer months. As the capital required for this build-up generally exceeds cash available from operations, the Company has generally relied on third-party bank financing to meet cash flow requirements during the build-up period immediately preceding the peak season. In addition, the Company typically is faced with a large balance of accounts receivable during the peak season. This occurs for two primary reasons. First, accounts receivable balances typically increase during the peak season as shipments of products increase. Second, many customers during this period are government institutions, which tend to pay accounts receivable more slowly than commercial customers. The Company’s working capital requirements during and in anticipation of the peak summer season require management to make estimates and judgments that affect assets, liabilities, revenues and expenses, and related contingent assets and liabilities. On an ongoing basis, management evaluates its estimates, including those related to market demand, labor costs, and stocking inventory.

New Accounting Standards

New Accounting Standards	9 Months Ended
	Oct. 31, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards	New Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09") an updated standard on revenue recognition . This ASU will supersede the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition , and most industry-specific guidance. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using US GAAP and International Financial Reporting Standards. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. In doing so the Company may be required to use more judgment and make more estimates than under current authoritative guidance. ASU 2014-09 will be effective for the Company in the first quarter of fiscal 2018 and may be applied on a full retrospective or modified retrospective approach. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual and interim reporting periods ending after December 15, 2016. We are currently evaluating this new standard and expect it to have no impact on our financial position and results of operations. In April 2015, the FASB issued an Accounting Standards Update that requires reporting entities to present debt issuance costs as a direct deduction from the face amount of that note payable presented in the balance sheet. The Accounting Standards Update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity is required to apply the amendments in the Accounting Standards Update retrospectively to all prior periods. The adoption of the Accounting Standards will have no impact on our consolidated financial statements. In July 2015, the FASB issued authoritative guidance to simplify the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. This guidance is effective for fiscal years beginning after December 15, 2016, which will be the Company’s first quarter of fiscal 2018, and requires prospective adoption, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements or related disclosures.

Debt

Debt	9 Months Ended
	Oct. 31, 2015
Debt Disclosure [Abstract]
Debt	Debt Outstanding balances (in thousands) for the Company’s long-term debt were as follows: 10/31/2015 1/31/2015 10/31/2014 (in thousands) Revolving credit line $ 4,018 $ 9,366 $ 7,967 Other 114 153 204 Total debt 4,132 9,519 8,171 Less current portion 68 3,366 2,018 Non-current portion $ 4,064 $ 6,153 $ 6,153 On December 22, 2011, the Company entered into a Revolving Credit and Security Agreement (the “Credit Agreement”) with PNC Bank, National Association (“PNC”). The credit agreement currently matures on December 22, 2017 and has a maximum availability of $50,000,000 , including sub-lines for letters of credit and equipment financing. Borrowings under the Credit Agreement bear interest at either the Alternate Base Rate (as defined in the Credit Agreement) plus 0.75% to 1.75% or the Eurodollar Currency Rate (as defined in the Credit Agreement) plus 1.75% to 2.75% . The interest rate at October 31, 2015 was 4% . Approximately $13,331,000 was available for borrowing as of October 31, 2015 . The Credit Agreement prohibits the Company from issuing dividends or making payments with respect to the Company's capital stock, and contains numerous other covenants, including these financial covenants: (1) minimum tangible net worth, (2) fixed charge coverage ratio, and (3) minimum EBITDA amount, in each case as of the end of the relevant monthly, quarterly or annual measurement period. The Company was in compliance with its covenants during the first three quarters of 2015. Pursuant to the Credit Agreement, substantially all of the Company's accounts receivable are automatically and promptly swept to repay amounts outstanding under the Revolving Credit Facility upon receipt by the Company. In addition, the Credit Agreement contains a clean down provision that requires the Company to reduce borrowings under the line to less than $6,000,000 for a period of 60 consecutive days each fiscal year. On June 18, 2015, the Company entered into Amendment No. 10 to the Credit Agreement which, among other things, increased the borrowing availability for the period from June 18, 2015 through August 15, 2015. On December 2, 2015, the Company entered into Amendment No. 11 to the Credit Agreement which, among other things, modified the clean down requirement, commencing in calendar year 2015, during the period between October 1st and December 31st of each year to permit Revolving Advances in the aggregate to exceed $6,000,000 at any time for a period of 30 consecutive days during such period. The Company believes that the Revolving Credit Facility will provide sufficient liquidity to meet its capital requirements for at least in the next 12 months. Management believes that the carrying value of debt approximated fair value at October 31, 2015 and 2014, as all of the long-term debt bears interest at variable rates based on prevailing market conditions.

Inventories

Inventories	9 Months Ended
	Oct. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories primarily consist of raw materials, work in progress, and finished goods of manufactured products. In addition, the Company maintains an inventory of finished goods purchased for resale. Inventories are stated at lower of cost or market and consist of materials, labor, and overhead. The Company determines the cost of inventory by the first-in, first-out method. The value of inventory includes any related production overhead costs incurred in bringing the inventory to its present location and condition. The Company records the cost of excess capacity as a period expense, not as a component of capitalized inventory valuation. Management continually monitors production costs, material costs and inventory levels to determine that interim inventories are fairly stated.

Income Taxes

Income Taxes	9 Months Ended
	Oct. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recognizes deferred income taxes under the asset and liability method of accounting for income taxes in accordance with the provisions of ASC No. 740, Accounting for Income Taxes . Deferred income taxes are recognized for differences between the financial statement and tax basis of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, the Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income or reversal of deferred tax liabilities during the periods in which those temporary differences become deductible. Based on this consideration, the Company determined the realization of a majority of the net deferred tax assets do not meet the more likely than not criteria and a valuation allowance was recorded against the majority of the net deferred tax assets at October 31, 2015 . The effective tax rate for the quarter ended October 31, 2015 was impacted by the valuation allowance recognized against state deferred tax assets and discrete items associated with non-taxable permanent differences. The years ended January 31, 2012 , January 31, 2014 and subsequent years remain open for examination by the IRS. The fiscal years ended January 31, 2011 and subsequent years remain open for examination by state tax authorities. The Company is not currently under IRS or state examination. As of October 31, 2015, the Company has $137,000 of uncertain tax positions accrued. The specific timing of when the resolution of each tax position will be reached is uncertain. As of October 31, 2015 , we do not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.

Net Income (Loss) per Share

Net Income (Loss) per Share	9 Months Ended
	Oct. 31, 2015
Earnings Per Share [Abstract]
Net Income (Loss) per Share	Net Income (Loss) per Share Three Months Ended Nine Months Ended 10/31/2015 10/31/2014 10/31/2015 10/31/2014 (In thousands, except per share data) Net income (loss) $ 6,003 $ 4,632 $ 10,276 $ 5,980 Weighted average shares outstanding 14,971 14,824 14,895 14,747 Net effect of dilutive share-based on the treasury stock method using average market price 353 230 332 187 Totals 15,324 15,054 15,227 14,934 Net income (loss) per share - basic $ 0.40 $ 0.31 $ 0.69 $ 0.41 Net income (loss) per share - diluted $ 0.39 $ 0.31 $ 0.67 $ 0.40

Stock-Based Compensation and St

Stock-Based Compensation and Stockholders' Rights	9 Months Ended
	Oct. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation and Stockholders' Rights	Stock-Based Compensation and Stockholders’ Rights Stock Incentive Plans The Company's two stock plans are the 2011 Employee Stock Incentive Plan (the “2011 Plan”) and the 2007 Employee Incentive Stock Plan (the “2007 Plan”). Under the 2011 Plan, the Company may grant an aggregate of 2,000,000 shares to its employees and non-employee directors in the form of stock options or awards. Restricted stock or stock units awarded under the 2011 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock unit awards and related compensation expense as the difference between the market value of the awards on the date of grant less the exercise price of the awards granted. The Company granted 75,174 awards under the 2011 Plan during the nine month periods ended October 31, 2015 . As of October 31, 2015 , there were approximately 803,520 shares available for future issuance under the 2011 Plan. Under the 2007 Plan, the Company may grant an aggregate of 1,000,000 shares to its employees and non-employee directors in the form of stock options or awards. Restricted stock or stock units awarded under the 2007 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock unit awards and related compensation expense as the difference between the market value of the awards on the date of grant less the exercise price of the awards granted. The Company granted 0 awards under the 2007 Plan during 2015 and 0 awards under the 2007 Plan during the quarter ended October 31, 2015 . As of October 31, 2015 , there were approximately 13,075 shares available for future issuance under the 2007 Plan. Accounting for the Plans Restricted Stock Unit Awards The following table presents a summary of restricted stock and stock unit awards at October 31, 2015 and 2014 : Expense for 3 months ended Expense for 9 months ended Unrecognized Compensation Cost at Date of Grants Units Granted Terms of Vesting 10/31/2015 10/31/2014 10/31/2015 10/31/2014 10/31/2015 2011 Stock Incentive Plan 6/22/2015 48,000 4 years $ 8,000 $ — $ 13,000 $ — $ 118,000 6/22/2015 27,174 1 year 19,000 — 33,000 — 44,000 6/24/2014 28,626 1 year — 18,000 25,000 31,000 — 6/24/2014 490,000 5 years 60,000 64,000 185,000 107,000 860,000 12/3/2013 10,000 1 year — — — 12,000 — 6/25/2013 71,430 1 year — — — 50,000 — 6/19/2012 520,000 5 years 37,000 39,000 114,000 118,000 233,000 2007 Stock Incentive Plan 6/16/2009 382,500 5 years — — — 62,000 — Totals for the period $ 124,000 $ 121,000 $ 370,000 $ 380,000 $ 1,255,000

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Oct. 31, 2015
Equity [Abstract]
Stockholders’ Equity	Stockholders’ Equity In June 2015, the Board of Directors terminated the Company's common stock repurchase plan. Prior to the termination, the Company did not repurchase any shares of its common stock during nine months ended October 31, 2015. Pursuant to the Company’s Credit Agreement with PNC, the Company is prohibited from repurchasing any shares of its stock except in cases where a repurchase is financed by a substantially concurrent issuance of new shares of the Company’s common stock.

Retirement Plans

Retirement Plans	9 Months Ended
	Oct. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Retirement Plans	Retirement Plans The Company and its subsidiaries cover certain employees under a noncontributory defined benefit retirement plan, entitled the Virco Employees’ Retirement Plan (the “Pension Plan”). Benefits under the Employees Retirement Plan are based on years of service and career average earnings. As more fully described in the Form 10-K, benefit accruals under the Employees Retirement Plan were frozen effective December 31, 2003. The Company also provides a supplementary retirement plan for certain key employees, the VIP Retirement Plan (the “VIP Plan”). The VIP Plan provides a benefit of up to 50% of average compensation for the last 5 years in the VIP Plan, offset by benefits earned under the Pension Plan. As more fully described in the Form 10-K, benefit accruals under this plan were frozen effective December 31, 2003. The Company also provides a non-qualified plan for certain former non-employee directors of the Company (the “Non-Employee Directors Retirement Plan”). The Non-Employee Directors Retirement Plan provides a lifetime annual retirement benefit equal to the director’s annual retainer fee for the fiscal year in which the director terminated his or her position with the Board, subject to the director having provided 10 years of service to the Company. As more fully described in the Form 10-K, benefit accruals under this plan were frozen effective December 31, 2003. The net periodic pension cost (income) for the Pension Plan, the VIP Plan, and the Non-Employee Directors Retirement Plan for the three months and nine months ended October 31, 2015 and 2014 were as follows (in thousands): Three Months Ended Pension Plan VIP Plan Non-Employee Directors Retirement Plan 10/31/2015 10/31/2014 10/31/2015 10/31/2014 10/31/2015 10/31/2014 Service cost $ — $ — $ — $ — $ — $ — Interest cost 324 315 105 88 3 4 Expected return on plan assets (324 ) (275 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to curtailments — — — — — — Amortization of prior service cost — — — — — — Recognized net actuarial (gain) loss 375 284 120 45 — (8 ) Benefit cost $ 375 $ 324 $ 225 $ 133 $ 3 $ (4 ) Nine Months Ended Pension Plan VIP Plan Non-Employee Directors Retirement Plan 10/31/2015 10/31/2014 10/31/2015 10/31/2014 10/31/2015 10/31/2014 Service cost $ — $ — $ — $ — $ — $ — Interest cost 972 945 315 264 9 12 Expected return on plan assets (972 ) (825 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to curtailments — — — — — — Amortization of prior service cost — — — — — — Recognized net actuarial (gain) loss 1,125 852 360 135 — (24 ) Benefit cost $ 1,125 $ 972 $ 675 $ 399 $ 9 $ (12 )

Warranty Accrual

Warranty Accrual	9 Months Ended
	Oct. 31, 2015
Product Warranties Disclosures [Abstract]
Warranty Accrual	Warranty Accrual The Company provides a warranty against all substantial defects in material and workmanship. In 2005 the Company extended its standard warranty from five years to 10 years. Effective February 1, 2014 the Company modified its warranty to a limited lifetime warranty. The new warranty effective February 1, 2014 is not anticipated to have a significant effect on warranty expense. The Company’s warranty is not a guarantee of service life, which depends upon events outside the Company’s control and may be different from the warranty period. The Company accrues an estimate of its exposure to warranty claims based upon both product sales data and an analysis of actual warranty claims incurred. The following is a summary of the Company’s warranty-claim activity for the three months and nine months ended October 31, 2015 and 2014 . Three Months Ended Nine Months Ended 10/31/2015 10/31/2014 10/31/2015 10/31/2014 (In thousands) Beginning balance $ 1,000 $ 1,000 $ 950 $ 1,000 Provision 89 134 332 352 Costs incurred (89 ) (134 ) (282 ) (352 ) Ending balance $ 1,000 $ 1,000 $ 1,000 $ 1,000

Subsequent Events

Subsequent Events	9 Months Ended
	Oct. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On December 2, 2015, the Company entered into Amendment No. 11 to the Credit Agreement which, among other things, modified the clean down requirement, commencing in calendar year 2015, during the period between October 1st and December 31st of each year to permit Revolving Advances in the aggregate to exceed $6,000,000 at any time for a period of 30 consecutive days during such period. We have evaluated subsequent events to assess the need for potential recognition or disclosure in this Quarterly Report on Form 10-Q. Such events were evaluated through the date these financial statements were issued. Based upon this evaluation, it was determined that, no subsequent events occurred that required recognition or disclosure in the financial statements.

Debt (Tables)

Debt (Tables)	9 Months Ended
	Oct. 31, 2015
Debt Disclosure [Abstract]
Outstanding balances of long-term debt	Outstanding balances (in thousands) for the Company’s long-term debt were as follows: 10/31/2015 1/31/2015 10/31/2014 (in thousands) Revolving credit line $ 4,018 $ 9,366 $ 7,967 Other 114 153 204 Total debt 4,132 9,519 8,171 Less current portion 68 3,366 2,018 Non-current portion $ 4,064 $ 6,153 $ 6,153

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	9 Months Ended
	Oct. 31, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Three Months Ended Nine Months Ended 10/31/2015 10/31/2014 10/31/2015 10/31/2014 (In thousands, except per share data) Net income (loss) $ 6,003 $ 4,632 $ 10,276 $ 5,980 Weighted average shares outstanding 14,971 14,824 14,895 14,747 Net effect of dilutive share-based on the treasury stock method using average market price 353 230 332 187 Totals 15,324 15,054 15,227 14,934 Net income (loss) per share - basic $ 0.40 $ 0.31 $ 0.69 $ 0.41 Net income (loss) per share - diluted $ 0.39 $ 0.31 $ 0.67 $ 0.40

Stock-Based Compensation and 22

Stock-Based Compensation and Stockholders' Rights (Tables)	9 Months Ended
	Oct. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Restricted Stock and Stock Unit Award Activity	The following table presents a summary of restricted stock and stock unit awards at October 31, 2015 and 2014 : Expense for 3 months ended Expense for 9 months ended Unrecognized Compensation Cost at Date of Grants Units Granted Terms of Vesting 10/31/2015 10/31/2014 10/31/2015 10/31/2014 10/31/2015 2011 Stock Incentive Plan 6/22/2015 48,000 4 years $ 8,000 $ — $ 13,000 $ — $ 118,000 6/22/2015 27,174 1 year 19,000 — 33,000 — 44,000 6/24/2014 28,626 1 year — 18,000 25,000 31,000 — 6/24/2014 490,000 5 years 60,000 64,000 185,000 107,000 860,000 12/3/2013 10,000 1 year — — — 12,000 — 6/25/2013 71,430 1 year — — — 50,000 — 6/19/2012 520,000 5 years 37,000 39,000 114,000 118,000 233,000 2007 Stock Incentive Plan 6/16/2009 382,500 5 years — — — 62,000 — Totals for the period $ 124,000 $ 121,000 $ 370,000 $ 380,000 $ 1,255,000

Retirement Plans (Tables)

Retirement Plans (Tables)	9 Months Ended
	Oct. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Schedule of Defined Benefit Plans Disclosures	The net periodic pension cost (income) for the Pension Plan, the VIP Plan, and the Non-Employee Directors Retirement Plan for the three months and nine months ended October 31, 2015 and 2014 were as follows (in thousands): Three Months Ended Pension Plan VIP Plan Non-Employee Directors Retirement Plan 10/31/2015 10/31/2014 10/31/2015 10/31/2014 10/31/2015 10/31/2014 Service cost $ — $ — $ — $ — $ — $ — Interest cost 324 315 105 88 3 4 Expected return on plan assets (324 ) (275 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to curtailments — — — — — — Amortization of prior service cost — — — — — — Recognized net actuarial (gain) loss 375 284 120 45 — (8 ) Benefit cost $ 375 $ 324 $ 225 $ 133 $ 3 $ (4 ) Nine Months Ended Pension Plan VIP Plan Non-Employee Directors Retirement Plan 10/31/2015 10/31/2014 10/31/2015 10/31/2014 10/31/2015 10/31/2014 Service cost $ — $ — $ — $ — $ — $ — Interest cost 972 945 315 264 9 12 Expected return on plan assets (972 ) (825 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to curtailments — — — — — — Amortization of prior service cost — — — — — — Recognized net actuarial (gain) loss 1,125 852 360 135 — (24 ) Benefit cost $ 1,125 $ 972 $ 675 $ 399 $ 9 $ (12 )

Warranty Accrual (Tables)

Warranty Accrual (Tables)	9 Months Ended
	Oct. 31, 2015
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability	The following is a summary of the Company’s warranty-claim activity for the three months and nine months ended October 31, 2015 and 2014 . Three Months Ended Nine Months Ended 10/31/2015 10/31/2014 10/31/2015 10/31/2014 (In thousands) Beginning balance $ 1,000 $ 1,000 $ 950 $ 1,000 Provision 89 134 332 352 Costs incurred (89 ) (134 ) (282 ) (352 ) Ending balance $ 1,000 $ 1,000 $ 1,000 $ 1,000

Correction of Immaterial Erro25

Correction of Immaterial Errors (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales	$ 64,981	$ 62,273	$ 149,100	$ 138,698
Gross profit	23,210	20,672	55,399	49,398
Selling, general and administrative expenses	$ 16,691	15,881	$ 43,763	42,076
Scenario, Adjustment [Member] | Reclassification of Payments Made to Customers [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net sales		379		676
Gross profit		379		676
Selling, general and administrative expenses		$ 379		$ 676

Seasonality (Details)

Seasonality (Details)	9 Months Ended
	Oct. 31, 2015
Sales [Member]
Seasonality (Textual) [Abstract]
The market for educational furniture is marked by extreme seasonality	50.00%

Debt (Long-term Debt) (Details)

Debt (Long-term Debt) (Details) - USD ($) $ in Thousands	Oct. 31, 2015	Jan. 31, 2015	Oct. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 4,132	$ 9,519	$ 8,171
Less current portion	68	3,366	2,018
Non-current portion	4,064	6,153	6,153
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	4,018	9,366	7,967
Other Debt [Member]
Debt Instrument [Line Items]
Long-term debt	$ 114	$ 153	$ 204

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($)	9 Months Ended
	Oct. 31, 2015	Apr. 15, 2014
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate at Period End	4.00%
Provision to reduce borrowings under the line	$ 6,000,000
Provision to reduce borrowings under the line, period	60 days
PNC [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Remaining borrowing capacity	$ 13,331,000
PNC [Member] | Revolving Credit Facility [Member] | Amendment No. 7 To The Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 50,000,000
Eurodollar [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of	1.75%
Eurodollar [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of	2.75%
Alternate Base Rate Loans [Member] | London Interbank Offered Rate LIBOR [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of	0.75%
Alternate Base Rate Loans [Member] | London Interbank Offered Rate LIBOR [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of	1.75%

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details)	Oct. 31, 2015USD ($)
Income Tax Disclosure [Abstract]
Liability for Uncertain Tax Positions, Current	$ 137,000

Net Income (Loss) per Share (De

Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Earnings Per Share [Abstract]
Net income (loss)	$ 6,003	$ 4,632	$ 10,276	$ 5,980
Weighted average shares outstanding	14,971	14,824	14,895	14,747
Net effect of dilutive share-based on the treasury stock method using average market price	353	230	332	187
Totals	15,324	15,054	15,227	14,934
Net income (loss) per share - basic	$ 0.40	$ 0.31	$ 0.69	$ 0.41
Net income (loss) per share - diluted	$ 0.39	$ 0.31	$ 0.67	$ 0.40

Stock-Based Compensation and 31

Stock-Based Compensation and Stockholders' Rights (Narrative) (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Oct. 31, 2015shares
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant of stock option or awards	2,000,000
Granted during the year	75,174
Stock available for future issuance	803,520
2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant of stock option or awards	1,000,000
Granted during the year	0
Stock available for future issuance	13,075

Stock-Based Compensation and 32

Stock-Based Compensation and Stockholders' Rights (Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($)	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Summary of restricted stock and stock unit awards
Expense	$ 124,000	$ 121,000	$ 370,000	$ 380,000
Unrecognized compensation cost	1,255,000		$ 1,255,000
2011 Plan [Member]
Summary of restricted stock and stock unit awards
Unites granted			75,174
2011 Plan [Member] | June 22, 2015 [Member] | 4 years [Member]
Summary of restricted stock and stock unit awards
Unites granted			48,000
Terms of vesting			4 years
Expense	8,000	0	$ 13,000	0
Unrecognized compensation cost	118,000		$ 118,000
2011 Plan [Member] | June 22, 2015 [Member] | 1 year [Member]
Summary of restricted stock and stock unit awards
Unites granted			27,174
Terms of vesting			1 year
Expense	19,000	0	$ 33,000	0
Unrecognized compensation cost	44,000		$ 44,000
2011 Plan [Member] | June 24, 2014 [Member] | 1 year [Member]
Summary of restricted stock and stock unit awards
Unites granted			28,626
Terms of vesting			1 year
Expense	0	18,000	$ 25,000	31,000
Unrecognized compensation cost	0		$ 0
2011 Plan [Member] | June 24, 2014 [Member] | 5 years [Member]
Summary of restricted stock and stock unit awards
Unites granted			490,000
Terms of vesting			5 years
Expense	60,000	64,000	$ 185,000	107,000
Unrecognized compensation cost	860,000		$ 860,000
2011 Plan [Member] | December 3, 2013 [Member] | 1 year [Member]
Summary of restricted stock and stock unit awards
Unites granted			10,000
Terms of vesting			1 year
Expense	0	0	$ 0	12,000
Unrecognized compensation cost	0		$ 0
2011 Plan [Member] | June 25, 2013 [Member] | 1 year [Member]
Summary of restricted stock and stock unit awards
Unites granted			71,430
Terms of vesting			1 year
Expense	0	0	$ 0	50,000
Unrecognized compensation cost	0		$ 0
2011 Plan [Member] | June 19, 2012 [Member] | 5 years [Member]
Summary of restricted stock and stock unit awards
Unites granted			520,000
Terms of vesting			5 years
Expense	37,000	39,000	$ 114,000	118,000
Unrecognized compensation cost	233,000		$ 233,000
2007 Plan [Member]
Summary of restricted stock and stock unit awards
Unites granted			0
2007 Plan [Member] | June 16, 2009 [Member] | 5 years [Member]
Summary of restricted stock and stock unit awards
Unites granted			382,500
Terms of vesting			5 years
Expense	0	$ 0	$ 0	$ 62,000
Unrecognized compensation cost	$ 0		$ 0

Retirement Plans (Periodic Pens

Retirement Plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Components of Net Cost
Amortization of prior service cost				$ 0
Employee Plan [Member]
Components of Net Cost
Service cost	$ 0	$ 0	$ 0	0
Interest cost	324	315	972	945
Expected return on plan assets	(324)	(275)	(972)	(825)
Amortization of transition amount	0	0	0	0
Recognized (gain) loss due to curtailments	0	0	0	0
Amortization of prior service cost	0	0	0	0
Recognized net actuarial (gain) loss	375	284	1,125	852
Benefit cost	375	324	$ 1,125	972
VIP Retirement Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase			50.00%
Components of Net Cost
Service cost	0	0	$ 0	0
Interest cost	105	88	315	264
Expected return on plan assets	0	0	0	0
Amortization of transition amount	0	0	0	0
Recognized (gain) loss due to curtailments	0	0	0	0
Amortization of prior service cost	0	0	0	0
Recognized net actuarial (gain) loss	120	45	360	135
Benefit cost	225	133	$ 675	399
Directors Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Director Providing Service To Company			10 years
Components of Net Cost
Service cost	0	0	$ 0	0
Interest cost	3	4	9	12
Expected return on plan assets	0	0	0	0
Amortization of transition amount	0	0	0	0
Recognized (gain) loss due to curtailments	0	0	0	0
Amortization of prior service cost	0	0
Recognized net actuarial (gain) loss	0	(8)	0	(24)
Benefit cost	$ 3	$ (4)	$ 9	$ (12)

Retirement Plans (Pension Plan

Retirement Plans (Pension Plan Actuarial Gain or Loss) (Details)	9 Months Ended
	Oct. 31, 2015
VIP Retirement Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Benefit Of Average Compensation Years	5 years

Warranty (Details)

Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Oct. 31, 2015	Oct. 31, 2014
Warranty claim activity
Beginning balance	$ 1,000	$ 1,000	$ 950	$ 1,000
Provision	89	134	332	352
Costs incurred	(89)	(134)	(282)	(352)
Ending balance	$ 1,000	$ 1,000	$ 1,000	$ 1,000
Minimum [Member]
Warranty [Line Items]
Product warranty period			5 years
Maximum [Member]
Warranty [Line Items]
Product warranty period			10 years