Virco Mfg. (VIRC) 10-Q 13 Dec 16 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2016	Dec. 09, 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	Oct. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--01-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		15,179,664

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015
Current assets:
Cash	$ 2,309	$ 815	$ 1,595
Trade accounts receivables, net	18,932	9,929	20,369
Other receivables	465	34	141
Income tax receivable	263	317	266
Inventories, net	31,655	34,603	27,168
Prepaid expenses and other current assets	1,279	990	1,014
Total current assets	54,903	46,688	50,553
Property, plant and equipment:
Land	1,671	1,671	1,671
Land improvements	674	675	851
Buildings and building improvements	46,019	45,860	46,448
Machinery and equipment	98,710	103,969	105,289
Leasehold improvements	701	1,636	1,758
Total property, plant and equipment	147,775	153,811	156,017
Less accumulated depreciation and amortization	113,550	118,991	120,742
Net property, plant and equipment	34,225	34,820	35,275
Deferred tax assets, net	18,382	703	601
Other assets	7,071	7,071	6,842
Total assets	114,581	89,282	93,271
Current liabilities:
Accounts payable	10,587	12,982	13,189
Accrued compensation and employee benefits	6,312	5,608	5,383
Current portion of long-term debt	89	579	109
Other accrued liabilities	5,099	3,525	5,683
Total current liabilities	22,087	22,694	24,364
Non-current liabilities:
Accrued self-insurance retention	1,200	1,650	2,050
Accrued pension expenses	22,244	23,330	27,368
Income tax payable	33	38	40
Long-term debt, less current portion	4,547	6,028	3,974
Other accrued liabilities	2,245	2,229	978
Total non-current liabilities	30,269	33,275	34,410
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 15,179,664 shares at 10/31/2016 and 14,998,187 at 1/31/2016 and 10/31/2015	152	150	150
Additional paid-in capital	116,809	116,633	116,510
Accumulated deficit	(41,396)	(69,140)	(63,414)
Accumulated other comprehensive loss	(13,340)	(14,330)	(18,749)
Total stockholders’ equity	62,225	33,313	34,497
Total liabilities and stockholders’ equity	$ 114,581	$ 89,282	$ 93,271

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized (shares)	3,000,000	3,000,000	3,000,000
Preferred stock, shares issued (shares)	0	0	0
Preferred stock, shares outstanding (shares)	0	0	0
Common stock, par value (usd per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	25,000,000	25,000,000	25,000,000
Common stock, shares issued (shares)	15,179,664	14,998,187	14,998,187
Common stock, shares outstanding (shares)	15,179,664	14,998,187	14,998,187

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Income Statement [Abstract]
Net sales	$ 67,795	$ 64,981	$ 149,976	$ 149,100
Costs of goods sold	43,484	41,771	93,864	93,701
Gross profit	24,311	23,210	56,112	55,399
Selling, general and administrative expenses	17,780	16,674	44,915	43,771
(Gain) loss on sale of property, plant & equipment	(1)	17	(2)	9
Operating income	6,532	6,519	11,199	11,619
Interest expense, net	326	379	1,076	1,129
Income before income taxes	6,206	6,140	10,123	10,490
Income tax (benefit) expense	(17,792)	137	(17,622)	214
Net income	$ 23,998	$ 6,003	$ 27,745	$ 10,276
Net income (loss) per common share:
Basic (usd per share)	$ 1.59	$ 0.40	$ 1.84	$ 0.69
Diluted (usd per share)	$ 1.57	$ 0.39	$ 1.83	$ 0.67
Weighted average shares outstanding:
Basic (shares)	15,128	14,971	15,047	14,895
Diluted (shares)	15,293	15,324	15,186	15,227

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income Unaudited - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 23,998	$ 6,003	$ 27,745	$ 10,276
Other comprehensive income (loss) :
Pension adjustments	330	495	990	1,485
Comprehensive income (loss)	$ 24,328	$ 6,498	$ 28,735	$ 11,761

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows Unaudited - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Operating activities
Net income	$ 27,745	$ 10,276
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	3,794	3,518
Provision for doubtful accounts	68	58
(Gain) loss on sale of property, plant and equipment	(2)	9
Deferred income taxes	(17,680)	179
Stock-based compensation	443	370
Amortization of net actuarial loss for pension plans, net of tax	990	1,485
Changes in operating assets and liabilities:
Trade accounts receivable	(9,053)	(9,814)
Other receivables	(431)	(98)
Inventories, net	2,948	(490)
Income taxes	49	(2)
Prepaid expenses and other current assets	(289)	(292)
Accounts payable and accrued liabilities	(1,615)	5,095
Net cash provided by operating activities	6,967	10,294
Investing activities
Capital expenditures	(3,239)	(3,583)
Proceeds from sale of property, plant and equipment	2	8
Net cash used in investing activities	(3,237)	(3,575)
Financing activities
Proceeds from long-term debt	37,004	31,960
Repayment of long-term debt	(38,976)	(37,348)
Common stock repurchased	(264)	(206)
Net cash used in financing activities	(2,236)	(5,594)
Net increase in cash	1,494	1,125
Cash at beginning of year	815	470
Cash at end of year	$ 2,309	$ 1,595

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 31, 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 nine months ended October 31, 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	9 Months Ended
	Oct. 31, 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	9 Months Ended
	Oct. 31, 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 to current portion of long-term debt, $125,000 from other accrued liabilities to current portion of long-term debt and $69,000 from other assets to long-term debt to as of January 31, 2016. The adoption resulted in the reclassification of $84,000 from prepaid expenses and other current assets to current portion of long-term debt, $125,000 from other accrued liabilities to current portion of long-term debt and $90,000 from other assets to long-term debt as of October 31, 2015. In November 2015, the FASB issued Accounting Standard Update No. 2015-17, "Balance Sheet Classification of Deferred Taxes", an update to ASC 740, Income Taxes. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Update. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Board also decided to permit earlier application by all entities as of the beginning of any interim or annual reporting period. The Company has chosen to early adopt the Update for the year ended January 31, 2016. The Company chose to retrospectively adopt these provisions, which resulted in reclassifications in the Consolidated Balance Sheet as of October 31, 2015, of $156,000 from current Deferred income taxes to long-term Deferred income taxes .

Inventories

Inventories	9 Months Ended
	Oct. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventory is valued at the lower of cost (determined on a first-in, first-out basis) or Net Realizable Value 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 October 31, 2016, January 31, 2016 and October 31, 2015: 10/31/2016 1/31/2016 10/31/2015 Finished goods 9,498 10,233 7,574 WIP 11,906 13,443 11,446 Raw materials 10,251 10,927 8,148 Inventories, net 31,655 34,603 27,168 In connection with the preparation of the January 31, 2016 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 October 31, 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 October 31, 2016 and January 31, 2016. The changes resulted in no change to Inventories, net. The changes resulted in an increase to Finished goods of $2,395,000 , a decrease to Work in process of $1,412,000 , and a decrease to Raw materials and supplies of $983,000 as of October 31, 2015. Management continually monitors production costs, material costs and inventory levels to determine that interim inventories are fairly stated.

Debt

Debt	9 Months Ended
	Oct. 31, 2016
Debt Disclosure [Abstract]
Debt	Debt Outstanding balances (in thousands) for the Company’s long-term debt were as follows: 10/31/2016 1/31/2016 10/31/2015 (in thousands) Revolving credit line $ 4,602 $ 6,595 $ 3,950 Other 34 12 133 Total debt 4,636 6,607 4,083 Less current portion 89 579 109 Non-current portion $ 4,547 $ 6,028 $ 3,974 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, 2019 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 October 31, 2016 was 4.5% . Approximately $15,020,000 was available for borrowing as of October 31, 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 third 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. 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 and modified the clean down provision to reduce borrowings under the line to less than $6,000,000 from a period of 60 consecutive days to 30 consecutive days. On October 27, 2016, the Company entered into Amendment No. 13 to the Credit Agreement which, among other things, reduced the maximum availability of $49,750,000 to $49,500,000 to allow for a sub-line for the company's credit card program. 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, 2016 and 2015, as all of the long-term debt bears interest at variable rates based on prevailing market conditions.

Income Taxes

Income Taxes	9 Months Ended
	Oct. 31, 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. At October 31, 2016, the Company determined that it was more-likely-than-not to realize the majority of its deferred tax assets, and therefore released its valuation against those assets resulting in a benefit to income taxes of $17,962,000 . The Company has left a partial valuation allowance against certain state deferred tax assets that the Company does not believe it is more-likely-than-not to realize. The year January 31, 2014 and subsequent years remain open for examination by the IRS. The fiscal year 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 Income per Share

Net Income per Share	9 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
Net Income (Loss) per Share	Net Income per Share Three Months Ended Nine Months Ended 10/31/2016 10/31/2015 10/31/2016 10/31/2015 (In thousands, except per share data) Net income $ 23,998 $ 6,003 $ 27,745 $ 10,276 Weighted average shares outstanding 15,128 14,971 15,047 14,895 Net effect of dilutive share-based on the treasury stock method using average market price 165 353 139 332 Totals 15,293 15,324 15,186 15,227 Net income per share - basic $ 1.59 $ 0.40 $ 1.84 $ 0.69 Net income per share - diluted $ 1.57 $ 0.39 $ 1.83 $ 0.67

Stock-Based Compensation and St

Stock-Based Compensation and Stockholders' Rights	9 Months Ended
	Oct. 31, 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 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. There were 87,284 awards granted and 223,174 awards were vested during the second quarter ended July 31, 2016. There were no additional awards granted or vested during the third quarter ended October 31, 2016. There were approximately 746,236 shares available for future issuance under the 2011 Plan as of October 31, 2016 . Accounting for the Plans Restricted Stock Unit Awards The following table presents a summary of restricted stock and stock unit awards at October 31, 2016 and 2015 : Expense for 3 months ended Expense for 9 months ended Unrecognized Date of Grants Units Granted Terms of Vesting 10/31/2016 10/31/2015 10/31/2016 10/31/2015 10/31/2016 2011 Stock Incentive Plan 06/21/2016 51,284 1 year $ 50,000 $ — $ 83,000 $ — $ 116,000 06/21/2016 36,000 3 years 12,000 — 20,000 — 120,000 06/22/2015 48,000 4 years 8,000 8,000 24,000 13,000 86,000 06/22/2015 27,174 1 year — 19,000 25,000 33,000 — 06/24/2014 490,000 5 years 60,000 60,000 180,000 185,000 620,000 06/24/2014 28,626 1 year — — — 25,000 — 06/19/2012 520,000 5 years 37,000 37,000 111,000 114,000 86,000 Totals for the period $ 167,000 $ 124,000 $ 443,000 $ 370,000 $ 1,028,000

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Oct. 31, 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 cash dividends and share repurchases to allow repurchases under certain circumstances and within certain dollar limitations.

Retirement Plans

Retirement Plans	9 Months Ended
	Oct. 31, 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 and nine months ended October 31, 2016 and 2015 were as follows (in thousands): Three Months Ended Pension Plan VIP Plan Non-Employee Directors Retirement Plan 10/31/2016 10/31/2015 10/31/2016 10/31/2015 10/31/2016 10/31/2015 Service cost $ — $ — $ — $ — $ — $ — Interest cost 296 324 90 105 3 3 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 282 375 77 120 (29 ) — Benefit cost $ 294 $ 375 $ 167 $ 225 $ (26 ) $ 3 Nine months Ended Pension Plan VIP Plan Non-Employee Directors Retirement Plan 10/31/2016 10/31/2015 10/31/2016 10/31/2015 10/31/2016 10/31/2015 Service cost $ — $ — $ — $ — $ — $ — Interest cost 888 972 270 315 9 9 Expected return on plan assets (852 ) (972 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to curtailments — — — — — — Amortization of prior service cost — — — — — — Recognized net actuarial (gain) loss 846 1,125 231 360 (87 ) — Benefit cost $ 882 $ 1,125 $ 501 $ 675 $ (78 ) $ 9

Warranty Accrual

Warranty Accrual	9 Months Ended
	Oct. 31, 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 5 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 and nine months ended October 31, 2016 and 2015 . Three Months Ended Nine Months Ended 10/31/2016 10/31/2015 10/31/2016 10/31/2015 (In thousands) Beginning balance $ 1,000 $ 1,000 $ 1,000 $ 950 Provision 155 89 331 332 Costs incurred (155 ) (89 ) (331 ) (282 ) Ending balance $ 1,000 $ 1,000 $ 1,000 $ 1,000

Subsequent Events

Subsequent Events	9 Months Ended
	Oct. 31, 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)	9 Months Ended
	Oct. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventory is valued at the lower of cost (determined on a first-in, first-out basis) or Net Realizable Value 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.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Oct. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of October 31, 2016, January 31, 2016 and October 31, 2015: 10/31/2016 1/31/2016 10/31/2015 Finished goods 9,498 10,233 7,574 WIP 11,906 13,443 11,446 Raw materials 10,251 10,927 8,148 Inventories, net 31,655 34,603 27,168

Debt (Tables)

Debt (Tables)	9 Months Ended
	Oct. 31, 2016
Debt Disclosure [Abstract]
Outstanding balances of long-term debt	Outstanding balances (in thousands) for the Company’s long-term debt were as follows: 10/31/2016 1/31/2016 10/31/2015 (in thousands) Revolving credit line $ 4,602 $ 6,595 $ 3,950 Other 34 12 133 Total debt 4,636 6,607 4,083 Less current portion 89 579 109 Non-current portion $ 4,547 $ 6,028 $ 3,974

Net Income per Share (Tables)

Net Income per Share (Tables)	9 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Three Months Ended Nine Months Ended 10/31/2016 10/31/2015 10/31/2016 10/31/2015 (In thousands, except per share data) Net income $ 23,998 $ 6,003 $ 27,745 $ 10,276 Weighted average shares outstanding 15,128 14,971 15,047 14,895 Net effect of dilutive share-based on the treasury stock method using average market price 165 353 139 332 Totals 15,293 15,324 15,186 15,227 Net income per share - basic $ 1.59 $ 0.40 $ 1.84 $ 0.69 Net income per share - diluted $ 1.57 $ 0.39 $ 1.83 $ 0.67

Stock-Based Compensation and 23

Stock-Based Compensation and Stockholders' Rights (Tables)	9 Months Ended
	Oct. 31, 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 October 31, 2016 and 2015 : Expense for 3 months ended Expense for 9 months ended Unrecognized Date of Grants Units Granted Terms of Vesting 10/31/2016 10/31/2015 10/31/2016 10/31/2015 10/31/2016 2011 Stock Incentive Plan 06/21/2016 51,284 1 year $ 50,000 $ — $ 83,000 $ — $ 116,000 06/21/2016 36,000 3 years 12,000 — 20,000 — 120,000 06/22/2015 48,000 4 years 8,000 8,000 24,000 13,000 86,000 06/22/2015 27,174 1 year — 19,000 25,000 33,000 — 06/24/2014 490,000 5 years 60,000 60,000 180,000 185,000 620,000 06/24/2014 28,626 1 year — — — 25,000 — 06/19/2012 520,000 5 years 37,000 37,000 111,000 114,000 86,000 Totals for the period $ 167,000 $ 124,000 $ 443,000 $ 370,000 $ 1,028,000

Retirement Plans (Tables)

Retirement Plans (Tables)	9 Months Ended
	Oct. 31, 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 and nine months ended October 31, 2016 and 2015 were as follows (in thousands): Three Months Ended Pension Plan VIP Plan Non-Employee Directors Retirement Plan 10/31/2016 10/31/2015 10/31/2016 10/31/2015 10/31/2016 10/31/2015 Service cost $ — $ — $ — $ — $ — $ — Interest cost 296 324 90 105 3 3 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 282 375 77 120 (29 ) — Benefit cost $ 294 $ 375 $ 167 $ 225 $ (26 ) $ 3 Nine months Ended Pension Plan VIP Plan Non-Employee Directors Retirement Plan 10/31/2016 10/31/2015 10/31/2016 10/31/2015 10/31/2016 10/31/2015 Service cost $ — $ — $ — $ — $ — $ — Interest cost 888 972 270 315 9 9 Expected return on plan assets (852 ) (972 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to curtailments — — — — — — Amortization of prior service cost — — — — — — Recognized net actuarial (gain) loss 846 1,125 231 360 (87 ) — Benefit cost $ 882 $ 1,125 $ 501 $ 675 $ (78 ) $ 9

Warranty Accrual (Tables)

Warranty Accrual (Tables)	9 Months Ended
	Oct. 31, 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 and nine months ended October 31, 2016 and 2015 . Three Months Ended Nine Months Ended 10/31/2016 10/31/2015 10/31/2016 10/31/2015 (In thousands) Beginning balance $ 1,000 $ 1,000 $ 1,000 $ 950 Provision 155 89 331 332 Costs incurred (155 ) (89 ) (331 ) (282 ) Ending balance $ 1,000 $ 1,000 $ 1,000 $ 1,000

Seasonality (Details)

Seasonality (Details)	9 Months Ended
	Oct. 31, 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) - USD ($) $ in Thousands	Jan. 31, 2016	Oct. 31, 2015	Jan. 31, 2015
Long-term Debt, Current Maturities [Member] | Accounting Standards Update 2015-03 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ 84	$ 84
Accrued Liabilities [Member] | Accounting Standards Update 2015-03 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	125	125
Long-term Debt, Excluding Current Maturities [Member] | Accounting Standards Update 2015-03 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ 69	$ 90
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Updated 2015-17 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred tax assets, current			$ (156)
Deferred income tax assets			$ 156

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 9,498	$ 10,233	$ 7,574
WIP	11,906	13,443	11,446
Raw materials	10,251	10,927	8,148
Inventories, net	$ 31,655	$ 34,603	$ 27,168

Inventories Narrative (Details)

Inventories Narrative (Details) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Finished goods	$ 9,498	$ 10,233	$ 7,574
WIP	11,906	13,443	11,446
Raw materials	$ 10,251	$ 10,927	8,148
Restatement Adjustment [Member] | Change in Application of Inventory Reserve [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Finished goods			2,395
WIP			(1,412)
Raw materials			$ (983)

Debt (Long-term Debt) (Details)

Debt (Long-term Debt) (Details) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015
Debt Instrument [Line Items]
Long-term debt	$ 4,636	$ 6,607	$ 4,083
Less current portion	89	579	109
Non-current portion	4,547	6,028	3,974
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	4,602	6,595	3,950
Other Debt [Member]
Debt Instrument [Line Items]
Long-term debt	$ 34	$ 12	$ 133

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($)	Apr. 03, 2016	Oct. 31, 2016	Oct. 27, 2016	Oct. 26, 2016
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate at Period End		4.50%
Company restriction from issuing dividends or making payments with respect to the Company's Capital Stock to it's 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	30 days
PNC [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Remaining borrowing capacity		$ 15,020,000
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			$ 49,500,000	$ 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%

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) $ in Thousands	9 Months Ended
	Oct. 31, 2016USD ($)
Income Tax Disclosure [Abstract]
Benefit to income taxes resulting from releasing valuation allowance	$ 17,962

Net Income per Share (Details)

Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 23,998	$ 6,003	$ 27,745	$ 10,276
Weighted average shares outstanding (shares)	15,128	14,971	15,047	14,895
Net effect of dilutive share-based on the treasury stock method using average market price (shares)	165	353	139	332
Totals (shares)	15,293	15,324	15,186	15,227
Net income per share - basic (usd per share)	$ 1.59	$ 0.40	$ 1.84	$ 0.69
Net income per share - diluted (usd per share)	$ 1.57	$ 0.39	$ 1.83	$ 0.67

Stock-Based Compensation and 34

Stock-Based Compensation and Stockholders' Rights (Narrative) (Details) - Restricted Stock Units (RSUs) [Member] - 2011 Plan [Member]	9 Months Ended
	Oct. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant of stock option or awards (shares)	2,000,000
Granted in the period (shares)	87,284
Vested in period (shares)	223,174
Stock available for future issuance (shares)	746,236

Stock-Based Compensation and 35

Stock-Based Compensation and Stockholders' Rights (Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Summary of restricted stock and stock unit awards
Expense	$ 167	$ 124	$ 443	$ 370
Unrecognized compensation cost	1,028		$ 1,028
2011 Plan [Member]
Summary of restricted stock and stock unit awards
Units granted (units)			87,284
2011 Plan [Member] | June 21, 2016 [Member] | 1 year [Member]
Summary of restricted stock and stock unit awards
Units granted (units)			51,284
Terms of vesting			1 year
Expense	50	0	$ 83	0
Unrecognized compensation cost	116		$ 116
2011 Plan [Member] | June 21, 2016 [Member] | 3 years [Member]
Summary of restricted stock and stock unit awards
Units granted (units)			36,000
Terms of vesting			3 years
Expense	12	0	$ 20	0
Unrecognized compensation cost	120		$ 120
2011 Plan [Member] | June 22, 2015 [Member] | 1 year [Member]
Summary of restricted stock and stock unit awards
Units granted (units)			27,174
Terms of vesting			1 year
Expense	0	19	$ 25	33
Unrecognized compensation cost	0		$ 0
2011 Plan [Member] | June 22, 2015 [Member] | 4 years [Member]
Summary of restricted stock and stock unit awards
Units granted (units)			48,000
Terms of vesting			4 years
Expense	8	8	$ 24	13
Unrecognized compensation cost	86		$ 86
2011 Plan [Member] | June 24, 2014 [Member] | 1 year [Member]
Summary of restricted stock and stock unit awards
Units granted (units)			28,626
Terms of vesting			1 year
Expense	0	0	$ 0	25
Unrecognized compensation cost	0		$ 0
2011 Plan [Member] | June 24, 2014 [Member] | 5 years [Member]
Summary of restricted stock and stock unit awards
Units granted (units)			490,000
Terms of vesting			5 years
Expense	60	60	$ 180	185
Unrecognized compensation cost	620		$ 620
2011 Plan [Member] | June 19, 2012 [Member] | 5 years [Member]
Summary of restricted stock and stock unit awards
Units granted (units)			520,000
Terms of vesting			5 years
Expense	37	$ 37	$ 111	$ 114
Unrecognized compensation cost	$ 86		$ 86

Retirement Plans (Narrative) (D

Retirement Plans (Narrative) (Details)	9 Months Ended
	Oct. 31, 2016
VIP Retirement Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Rate of compensation increase	50.00%
Benefit Of Average Compensation Years	5 years
Other Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Director providing service to company	10 years

Retirement Plans (Periodic Pens

Retirement Plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Pension Plan [Member]
Components of Net Cost
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	296	324	888	972
Expected return on plan assets	(284)	(324)	(852)	(972)
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	282	375	846	1,125
Benefit cost	294	375	882	1,125
VIP Retirement Plan [Member]
Components of Net Cost
Service cost	0	0	0	0
Interest cost	90	105	270	315
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	77	120	231	360
Benefit cost	167	225	501	675
Non-Employee Directors Retirement Plan [Member]
Components of Net Cost
Service cost	0	0	0	0
Interest cost	3	3	9	9
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	(29)	0	(87)	0
Benefit cost	$ (26)	$ 3	$ (78)	$ 9

Warranty (Details)

Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Warranty claim activity
Beginning balance	$ 1,000	$ 1,000	$ 1,000	$ 950
Provision	155	89	331	332
Costs incurred	(155)	(89)	(331)	(282)
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