Virco Mfg. (VIRC) 10-Q 13 Jun 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2016	Jun. 10, 2016
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	Apr. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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	Apr. 30, 2016	Jan. 31, 2016	Apr. 30, 2015
Current assets:
Cash	$ 1,033	$ 815	$ 580
Trade accounts receivables, net	8,882	9,929	9,798
Other receivables	67	34	39
Income tax receivable	260	317	258
Inventories, net	53,924	34,603	42,250
Prepaid expenses and other current assets	1,904	990	1,513
Total current assets	66,070	46,688	54,438
Property, plant and equipment:
Land	1,671	1,671	1,671
Land improvements	674	675	851
Buildings and building improvements	46,106	45,860	46,443
Machinery and equipment	102,800	103,969	108,533
Leasehold improvements	684	1,636	1,909
Total property, plant and equipment	151,935	153,811	159,407
Less accumulated depreciation and amortization	117,593	118,991	124,114
Net property, plant and equipment	34,342	34,820	35,293
Deferred tax assets, net	698	703	757
Other assets	7,071	7,071	6,843
Total assets	108,181	89,282	97,331
Current liabilities:
Accounts payable	16,894	12,982	15,931
Accrued compensation and employee benefits	4,355	5,608	4,054
Current portion of long-term debt	18,416	579	14,607
Other accrued liabilities	4,652	3,525	4,793
Total current liabilities	44,317	22,694	39,385
Non-current liabilities:
Accrued self-insurance retention	1,869	1,650	2,503
Accrued pension expenses	22,968	23,330	28,447
Income tax payable	39	38	45
Long-term debt, less current portion	5,804	6,028	6,015
Other accrued liabilities	2,556	2,229	924
Total non-current liabilities	$ 33,236	$ 33,275	$ 37,934
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 04/30/2016 and at 1/31/2016 and 14,852,640 at 04/30/2015	150	150	149
Additional paid-in capital	116,757	116,633	116,470
Accumulated deficit	(72,279)	(69,140)	(76,868)
Accumulated other comprehensive loss	(14,000)	(14,330)	(19,739)
Total stockholders’ equity	30,628	33,313	20,012
Total liabilities and stockholders’ equity	$ 108,181	$ 89,282	$ 97,331

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2016	Jan. 31, 2016	Apr. 30, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,000,000	3,000,000	3,000,000
Preferred stock, shares issued	0	0	0
Preferred stock, shares outstanding	0	0	0
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000	25,000,000
Common stock, shares issued	14,998,187	14,998,187	14,852,640
Common stock, shares outstanding	14,998,187	14,998,187	14,852,640

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations Unaudited - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Apr. 30, 2016	Apr. 30, 2015
Income Statement [Abstract]
Net sales		$ 20,827	$ 23,048
Costs of goods sold		12,764	14,854
Gross profit		8,063	8,194
Selling, general and administrative expenses		10,909	11,043
Gain on sale of property, plant & equipment		(1)	(8)
Operating loss		(2,845)	(2,841)
Interest expense, net		264	298
Loss before income taxes		(3,109)	(3,139)
Income tax expense		29	39
Net loss		$ (3,138)	$ (3,178)
Net income (loss) per common share:
Basic (usd per share)	[1]	$ (0.21)	$ (0.21)
Diluted (usd per share)	[1]	$ (0.21)	$ (0.21)
Weighted average shares outstanding:
Basic (shares)	[1]	14,971	14,824
Diluted (shares)	[1]	14,971	14,824
[1]	Net loss per share was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss Unaudited - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,138)	$ (3,178)
Other comprehensive income (loss) :
Pension adjustments	330	495
Comprehensive income (loss)	$ (2,808)	$ (2,683)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows Unaudited - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Operating activities
Net loss	$ (3,138)	$ (3,178)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,305	1,130
Provision for doubtful accounts	16	15
Gain on sale of property, plant and equipment	(1)	(8)
Deferred income taxes	5	23
Stock-based compensation	124	122
Amortization of net actuarial loss for pension plans, net of tax	330	495
Changes in operating assets and liabilities:
Trade accounts receivable	1,032	801
Other receivables	(35)	4
Inventories	(19,320)	(15,572)
Income taxes	58	12
Prepaid expenses and other current assets	(893)	(840)
Accounts payable and accrued liabilities	3,991	6,973
Net cash used in operating activities	(16,526)	(10,023)
Investing activities
Capital expenditures	(1,097)	(1,200)
Proceeds from sale of property, plant and equipment	1	8
Net cash used in investing activities	(1,096)	(1,192)
Financing activities
Proceeds from long-term debt	24,600	22,300
Repayment of long-term debt	(6,760)	(10,975)
Common stock repurchased	0	0
Net cash provided by financing activities	17,840	11,325
Net increase in cash	218	110
Cash at beginning of year	815	470
Cash at end of year	$ 1,033	$ 580

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 30, 2016
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 three months ended April 30, 2016 , are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2017 . The balance sheet at January 31, 2016 , 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, 2016 (“Form 10-K”). All references to the “Company” refer to Virco Mfg. Corporation and its subsidiaries.

Seasonality

Seasonality	3 Months Ended
	Apr. 30, 2016
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	3 Months Ended
	Apr. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards	New Accounting Standards In April 2015, the FASB amended its existing accounting standards for the presentation of debt issuance costs in the statement of financial position. The amendments generally require that the issuance costs related to a recognized debt obligation be presented as a deduction from the carrying amount of the debt obligation, with the associated amortization recognized as a component of interest expense. The amendments were effective for beginning February 1, 2016 on a retrospective basis; the Company adopted the standard for issuance costs incurred related to its revolving line of credit. The adoption resulted in the reclassification of $84,000 from prepaid expenses and other current assets and $69,000 from other assets to current portion of long-term debt and long-term debt, respectively, as of January 31, 2016. The adoption resulted in the reclassification of $84,000 from prepaid expenses and other current assets and $138,000 from other assets to current portion of long-term debt and long-term debt, respectively, as of April 30, 2015.

Debt

Debt	3 Months Ended
	Apr. 30, 2016
Debt Disclosure [Abstract]
Debt	Debt Outstanding balances (in thousands) for the Company’s long-term debt were as follows: 4/30/2016 1/31/2016 4/30/2015 (in thousands) Revolving credit line $ 24,140 $ 6,510 $ 20,469 Other 80 97 153 Total debt 24,220 6,607 20,622 Less current portion 18,416 579 14,607 Non-current portion $ 5,804 $ 6,028 $ 6,015 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 $49,750,000 , 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 0.50% to 1.50% or the Eurodollar Currency Rate (as defined in the Credit Agreement) plus 1.50% to 2.50% . The interest rate at April 30, 2016 was 4% . Approximately $8,860,000 was available for borrowing as of April 30, 2016 . The Credit Agreement restricts the Company from issuing dividends or making payments with respect to the Company's capital stock to an annual limit of $1.3 million , 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 quarter of fiscal 2017. 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 April 4, 2016, the Company entered into Amendment No. 12 to the Credit Agreement which, among other things, increased the borrowing availability for the period from June 1, 2016 through August 15, 2016. 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 April 30, 2016 and 2015, as all of the long-term debt bears interest at variable rates based on prevailing market conditions.

Inventories

Inventories	3 Months Ended
	Apr. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventory is valued at the lower of cost or Net Realizable Value (determined on a first-in, first-out basis) and includes material, labor, and factory overhead. The Company maintains allowances for estimated slow moving and obsolete inventory to reflect the difference between the cost of inventory and the estimated market value. Allowances for slow moving and obsolete inventory are determined through a physical inspection of the product in connection with a physical inventory, a review of slow-moving product, and consideration of active marketing programs. The market for education furniture is traditionally driven by value, not style, and the Company has not typically incurred significant obsolescence expenses. If market conditions are less favorable than those anticipated by management, additional allowances may be required. Due to reductions in sales volume in the past years, the Company’s manufacturing facilities are operating at reduced levels of capacity. The Company records the cost of excess capacity as a period expense, not as a component of capitalized inventory valuation. The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of April 30, 2016, January 31, 2016 and April 30, 2015: 4/30/2016 1/31/2016 4/30/2015 Finished goods $ 21,984 $ 10,233 $ 14,917 WIP 21,086 13,443 17,776 Raw materials 10,854 10,927 9,557 Inventories, net $ 53,924 $ 34,603 $ 42,250 In connection with the preparation of the consolidated financial statements, the Company determined that its reserve for excess and obsolete inventory had previously been applied exclusively to the Finished goods portion of inventory, when it should have been applied against Finished goods, Work in process, and Raw materials and supplies, based on the identification of the specific parts determined to be held in excess or obsolete. The Company evaluated the impact of this error on prior year financial statements and concluded that it was immaterial for the quarter ended April 30, 2015, and for all interim periods within the fiscal year ending January 31, 2016. While the amounts included in the prior year disclosure were considered to be immaterial, the Company elected to revise the disclosure of previously reported amounts to be consistent with the presentation as of April 30, 2016 and January 31, 2016. The changes resulted in no change to Inventories, net. The changes resulted in an increase to Finished goods of $2,237,000 , a decrease to Work in process of $1,360,000 , and a decrease to Raw materials and supplies of $877,000 as of April 30, 2015. Management continually monitors production costs, material costs and inventory levels to determine that interim inventories are fairly stated.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 30, 2016
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 April 30, 2016 . 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, 2012 and subsequent years remain open for examination by state tax authorities. The Company is not currently under IRS or state examination. 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 Loss per Share

Net Loss per Share	3 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share Three Months Ended 4/30/2016 4/30/2015 (In thousands, except per share data) Net loss $ (3,138 ) $ (3,178 ) Weighted average shares outstanding (a) 14,971 14,824 Net effect of dilutive share-based on the treasury stock method using average market price — — Totals 14,971 14,824 Net income per share - basic $ (0.21 ) $ (0.21 ) Net income per share - diluted $ (0.21 ) $ (0.21 ) (a) All exercisable and non-exercisable stock options were not included in the computation of diluted net loss per share at April 30, 2016 and 2015, because their inclusion would have been anti-dilutive. The number of stock options outstanding, which met this anti-dilutive criterion for the three months ended April 30, 2016 and 2015, was 270,000 and 233,000 , respectively.

Stock-Based Compensation and St

Stock-Based Compensation and Stockholders' Rights	3 Months Ended
	Apr. 30, 2016
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 0 awards under the 2011 Plan during the quarter ended April 30, 2016 . As of April 30, 2016 , 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 the quarter ended April 30, 2016 . As of April 30, 2016 , 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 April 30, 2016 and 2015 : Expense for 3 months ended Unrecognized Date of Grants Units Granted Terms of Vesting 4/30/2016 4/30/2015 4/30/2016 2011 Stock Incentive Plan 06/22/2015 48,000 4 years $ 8,000 $ — $ 102,000 06/22/2015 27,174 1 year 19,000 19,000 6,000 06/24/2014 490,000 5 years 60,000 64,000 740,000 06/19/2012 520,000 5 years 37,000 39,000 160,000 Totals for the period $ 124,000 $ 122,000 $ 1,008,000

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Apr. 30, 2016
Equity [Abstract]
Stockholders’ Equity	Stockholders’ Equity In June 2015, the Board of Directors terminated the Company's common stock repurchase plan. Pursuant to the Company’s Credit Agreement with PNC, the Company is generally 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. On April 4, 2016, the Company entered into Amendment No. 12 to the Credit Agreement with PNC which, among other things, amended the restrictions on share repurchases to allow repurchases under certain circumstances and within certain dollar limitations.

Retirement Plans

Retirement Plans	3 Months Ended
	Apr. 30, 2016
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 ended April 30, 2016 and 2015 were as follows (in thousands): Three Months Ended Pension Plan VIP Plan 4/30/2016 4/30/2015 4/30/2016 4/30/2015 Service cost $ — $ — $ — $ — Interest cost 296 324 90 105 Expected return on plan assets (284 ) (324 ) — — Amortization of transition amount — — — — Recognized (gain) loss due to curtailments — — — — Amortization of prior service cost — — — — Recognized net actuarial (gain) loss 291 375 77 120 Benefit cost $ 303 $ 375 $ 167 $ 225

Warranty Accrual

Warranty Accrual	3 Months Ended
	Apr. 30, 2016
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 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 ended April 30, 2016 and 2015 . Three Months Ended 4/30/2016 4/30/2015 (In thousands) Beginning balance $ 1,000 $ 950 Provision 129 83 Costs incurred (129 ) (83 ) Ending balance $ 1,000 $ 950

Subsequent Events

Subsequent Events	3 Months Ended
	Apr. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events 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.

Inventories (Policies)

Inventories (Policies)	3 Months Ended
	Apr. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventory is valued at the lower of cost or Net Realizable Value (determined on a first-in, first-out basis) and includes material, labor, and factory overhead. The Company maintains allowances for estimated slow moving and obsolete inventory to reflect the difference between the cost of inventory and the estimated market value. Allowances for slow moving and obsolete inventory are determined through a physical inspection of the product in connection with a physical inventory, a review of slow-moving product, and consideration of active marketing programs. The market for education furniture is traditionally driven by value, not style, and the Company has not typically incurred significant obsolescence expenses. If market conditions are less favorable than those anticipated by management, additional allowances may be required. Due to reductions in sales volume in the past years, the Company’s manufacturing facilities are operating at reduced levels of capacity. The Company records the cost of excess capacity as a period expense, not as a component of capitalized inventory valuation.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Apr. 30, 2016
Debt Disclosure [Abstract]
Outstanding balances of long-term debt	Outstanding balances (in thousands) for the Company’s long-term debt were as follows: 4/30/2016 1/31/2016 4/30/2015 (in thousands) Revolving credit line $ 24,140 $ 6,510 $ 20,469 Other 80 97 153 Total debt 24,220 6,607 20,622 Less current portion 18,416 579 14,607 Non-current portion $ 5,804 $ 6,028 $ 6,015

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of April 30, 2016, January 31, 2016 and April 30, 2015: 4/30/2016 1/31/2016 4/30/2015 Finished goods $ 21,984 $ 10,233 $ 14,917 WIP 21,086 13,443 17,776 Raw materials 10,854 10,927 9,557 Inventories, net $ 53,924 $ 34,603 $ 42,250

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Apr. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Three Months Ended 4/30/2016 4/30/2015 (In thousands, except per share data) Net loss $ (3,138 ) $ (3,178 ) Weighted average shares outstanding (a) 14,971 14,824 Net effect of dilutive share-based on the treasury stock method using average market price — — Totals 14,971 14,824 Net income per share - basic $ (0.21 ) $ (0.21 ) Net income per share - diluted $ (0.21 ) $ (0.21 )

Stock-Based Compensation and 23

Stock-Based Compensation and Stockholders' Rights (Tables)	3 Months Ended
	Apr. 30, 2016
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 April 30, 2016 and 2015 : Expense for 3 months ended Unrecognized Date of Grants Units Granted Terms of Vesting 4/30/2016 4/30/2015 4/30/2016 2011 Stock Incentive Plan 06/22/2015 48,000 4 years $ 8,000 $ — $ 102,000 06/22/2015 27,174 1 year 19,000 19,000 6,000 06/24/2014 490,000 5 years 60,000 64,000 740,000 06/19/2012 520,000 5 years 37,000 39,000 160,000 Totals for the period $ 124,000 $ 122,000 $ 1,008,000

Retirement Plans (Tables)

Retirement Plans (Tables)	3 Months Ended
	Apr. 30, 2016
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 ended April 30, 2016 and 2015 were as follows (in thousands): Three Months Ended Pension Plan VIP Plan 4/30/2016 4/30/2015 4/30/2016 4/30/2015 Service cost $ — $ — $ — $ — Interest cost 296 324 90 105 Expected return on plan assets (284 ) (324 ) — — Amortization of transition amount — — — — Recognized (gain) loss due to curtailments — — — — Amortization of prior service cost — — — — Recognized net actuarial (gain) loss 291 375 77 120 Benefit cost $ 303 $ 375 $ 167 $ 225

Warranty Accrual (Tables)

Warranty Accrual (Tables)	3 Months Ended
	Apr. 30, 2016
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 ended April 30, 2016 and 2015 . Three Months Ended 4/30/2016 4/30/2015 (In thousands) Beginning balance $ 1,000 $ 950 Provision 129 83 Costs incurred (129 ) (83 ) Ending balance $ 1,000 $ 950

Seasonality (Details)

Seasonality (Details)	3 Months Ended
	Apr. 30, 2016
Sales [Member]
Seasonality (Textual) [Abstract]
The market for educational furniture is marked by extreme seasonality	50.00%

New Accounting Standards (Detai

New Accounting Standards (Details) - Accounting Standards Update 2015-03 [Member] - USD ($) $ in Thousands	Jan. 31, 2016	Apr. 30, 2015
Prepaid Expenses and Other Current Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ (84)	$ (84)
Other Current Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	(69)	(138)
Long-term Debt, Current Maturities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	84	84
Long-term Debt, Excluding Current Maturities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ 69	$ 138

Debt (Long-term Debt) (Details)

Debt (Long-term Debt) (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016	Apr. 30, 2015
Debt Instrument [Line Items]
Long-term debt	$ 24,220	$ 6,607	$ 20,622
Less current portion	18,416	579	14,607
Non-current portion	5,804	6,028	6,015
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	24,140	6,510	20,469
Other Debt [Member]
Debt Instrument [Line Items]
Long-term debt	$ 80	$ 97	$ 153

Debt (Narrative) (Details)

Debt (Narrative) (Details)	3 Months Ended
	Apr. 30, 2016USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate at Period End	4.00%
Annual Limit	$ 1,300,000
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	$ 8,860,000
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	$ 49,750,000
Eurodollar [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of	1.50%
Eurodollar [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of	2.50%
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	0.50%
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	1.50%

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016	Apr. 30, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 21,984	$ 10,233	$ 14,917
WIP	21,086	13,443	17,776
Raw materials	10,854	10,927	9,557
Inventories, net	$ 53,924	$ 34,603	$ 42,250

Inventories Narrative (Details)

Inventories Narrative (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016	Apr. 30, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Finished goods	$ 21,984	$ 10,233	$ 14,917
WIP	21,086	13,443	17,776
Raw materials	$ 10,854	$ 10,927	9,557
Restatement Adjustment [Member] | Change in Application of Inventory Reserve [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Finished goods			2,237
WIP			(1,360)
Raw materials			$ (877)

Net Loss per Share (Details)

Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Apr. 30, 2016	Apr. 30, 2015
Earnings Per Share [Abstract]
Net loss		$ (3,138)	$ (3,178)
Weighted average shares outstanding	[1]	14,971	14,824
Net effect of dilutive share-based on the treasury stock method using average market price		0	0
Totals	[1]	14,971	14,824
Net income per share - basic	[1]	$ (0.21)	$ (0.21)
Net income per share - diluted	[1]	$ (0.21)	$ (0.21)
Antidilutive shares		270	233
[1]	Net loss per share was calculated based on basic shares outstanding due to the anti-dilutive effect on the inclusion of common stock equivalent shares.

Stock-Based Compensation and 33

Stock-Based Compensation and Stockholders' Rights (Narrative) (Details) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Apr. 30, 2016shares
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	0
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 34

Stock-Based Compensation and Stockholders' Rights (Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Summary of restricted stock and stock unit awards
Expense	$ 124	$ 122
Unrecognized compensation cost	$ 1,008
2011 Plan [Member]
Summary of restricted stock and stock unit awards
Unites granted	0
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	0
Unrecognized compensation cost	$ 102
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	19
Unrecognized compensation cost	$ 6
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	64
Unrecognized compensation cost	$ 740
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	$ 39
Unrecognized compensation cost	$ 160

Retirement Plans (Periodic Pens

Retirement Plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Employee Plan [Member]
Components of Net Cost
Service cost	$ 0	$ 0
Interest cost	296	324
Expected return on plan assets	(284)	(324)
Amortization of transition amount	0	0
Recognized (gain) loss due to curtailments	0	0
Amortization of prior service cost	0	0
Recognized net actuarial (gain) loss	291	375
Benefit cost	$ 303	375
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
Interest cost	90	105
Expected return on plan assets	0	0
Amortization of transition amount	0	0
Recognized (gain) loss due to curtailments	0	0
Amortization of prior service cost	0	0
Recognized net actuarial (gain) loss	77	120
Benefit cost	$ 167	$ 225
Directors Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Director Providing Service To Company	10 years

Retirement Plans (Pension Plan

Retirement Plans (Pension Plan Actuarial Gain or Loss) (Details)	3 Months Ended
	Apr. 30, 2016
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
	Apr. 30, 2016	Apr. 30, 2015
Warranty claim activity
Beginning balance	$ 1,000	$ 950
Provision	129	83
Costs incurred	(129)	(83)
Ending balance	$ 1,000	$ 950
Minimum [Member]
Warranty [Line Items]
Product warranty period	5 years
Maximum [Member]
Warranty [Line Items]
Product warranty period	10 years