Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2018 | Apr. 01, 2018 | Jul. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | VIRCO MFG CORPORATION | ||
Entity Central Index Key | 751,365 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 65 | ||
Entity Common Stock, Shares Outstanding | 15,357,457 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Current assets: | ||
Cash | $ 534 | $ 788 |
Trade accounts receivables (net of allowance for doubtful accounts of $200 at January 31, 2018 and 2017) | 11,385 | 9,915 |
Other receivables | 29 | 216 |
Income tax receivable | 171 | 275 |
Inventories, net | 42,057 | 35,689 |
Prepaid expenses and other current assets | 1,537 | 1,610 |
Total current assets | 55,713 | 48,493 |
Property, plant and equipment | ||
Land | 3,731 | 1,671 |
Land improvements | 688 | 675 |
Buildings and building improvements | 51,176 | 46,021 |
Machinery and equipment | 103,015 | 99,896 |
Leasehold improvements | 809 | 842 |
Total property, plant and equipment | 159,419 | 149,105 |
Less accumulated depreciation and amortization | 116,977 | 114,780 |
Net property, plant and equipment | 42,442 | 34,325 |
Deferred income tax assets, net | 10,093 | 17,008 |
Other assets | 8,375 | 8,361 |
Total assets | 116,623 | 108,187 |
Current liabilities: | ||
Accounts payable | 14,106 | 12,388 |
Accrued compensation and employee benefits | 4,779 | 5,138 |
Current portion of long-term debt | 4,681 | 68 |
Other accrued liabilities | 4,157 | 3,991 |
Total current liabilities | 27,723 | 21,585 |
Non-current liabilities: | ||
Accrued self-insurance | 1,425 | 1,350 |
Accrued retirement benefits | 14,664 | 18,699 |
Income tax payable | 44 | 36 |
Non-current portion | 12,000 | 4,943 |
Other accrued liabilities | 2,055 | 2,220 |
Total non-current liabilities | 30,188 | 27,248 |
Commitments and contingencies | ||
Preferred stock: | ||
Authorized 3,000,000 shares, $.01 par value; none issued or outstanding | 0 | 0 |
Common stock: | ||
Authorized 25,000,000 shares, $.01 par value; issued and outstanding 15,357,457 shares in 2018 and 15,179,664 shares in 2017 | 154 | 152 |
Additional paid-in capital | 117,465 | 116,976 |
Accumulated deficit | (49,648) | (46,380) |
Accumulated other comprehensive loss | (9,259) | (11,394) |
Total stockholders’ equity | 58,712 | 59,354 |
Total liabilities and stockholders’ equity | $ 116,623 | $ 108,187 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 200 | $ 200 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 15,357,457 | 15,179,664 |
Common stock, shares outstanding | 15,357,457 | 15,179,664 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 189,287 | $ 173,417 | $ 168,595 |
Costs of goods sold | 123,816 | 110,874 | 108,985 |
Gross profit | 65,471 | 62,543 | 59,610 |
Selling, general and administrative expenses | 61,528 | 56,601 | 53,653 |
(Gain) loss on sale of property, plant & equipment | (16) | (2) | 9 |
Operating income | 3,959 | 5,944 | 5,948 |
Interest expense, net | 1,545 | 1,217 | 1,281 |
Income before income taxes | 2,414 | 4,727 | 4,667 |
Income tax expense (benefit) | 5,623 | (18,033) | 118 |
Net (loss) income | $ (3,209) | $ 22,760 | $ 4,549 |
Net income (loss) per common share: | |||
Basic | $ (0.21) | $ 1.51 | $ 0.31 |
Diluted | $ (0.21) | $ 1.49 | $ 0.30 |
Weighted average shares outstanding: | |||
Basic | 15,244 | 15,067 | 14,914 |
Diluted | 15,244 | 15,266 | 15,118 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parenthetical) | 12 Months Ended |
Jan. 31, 2018shares | |
Income Statement [Abstract] | |
Shares of common stock equivalents excluded from computation of diluted net income per share (in shares) | 147,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (3,209) | $ 22,760 | $ 4,549 |
Other comprehensive (loss) income | |||
Pension adjustments (net of tax $1,267, $1,816, $0 in 2018, 2017 and 2016) | 2,135 | 2,936 | 5,904 |
Comprehensive (loss) income | $ (1,074) | $ 25,696 | $ 10,453 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Balance (in shares) at Jan. 31, 2015 | 14,852,640 | ||||
Balance at Jan. 31, 2015 | $ 22,573,000 | $ 149,000 | $ 116,348,000 | $ (73,690,000) | $ (20,234,000) |
Net (loss) income | 4,549,000 | 0 | 0 | 4,549,000 | 0 |
Pension adjustments, net of tax effect | 5,904,000 | $ 0 | 0 | 0 | 5,904,000 |
Shares vested and others (in shares) | 145,547 | ||||
Shares vested and others | (205,000) | $ 1,000 | (207,000) | 1,000 | 0 |
Stock compensation expense | 492,000 | $ 0 | 492,000 | 0 | 0 |
Balance (in shares) at Jan. 31, 2016 | 14,998,187 | ||||
Balance at Jan. 31, 2016 | 33,313,000 | $ 150,000 | 116,633,000 | (69,140,000) | (14,330,000) |
Net (loss) income | 22,760,000 | 0 | 0 | 22,760,000 | 0 |
Pension adjustments, net of tax effect | 2,936,000 | $ 0 | 0 | 0 | 2,936,000 |
Shares vested and others (in shares) | 181,477 | ||||
Shares vested and others | (264,000) | $ 2,000 | (266,000) | 0 | 0 |
Stock compensation expense | 609,000 | $ 0 | 609,000 | 0 | 0 |
Balance (in shares) at Jan. 31, 2017 | 15,179,664 | ||||
Balance at Jan. 31, 2017 | 59,354,000 | $ 152,000 | 116,976,000 | (46,380,000) | (11,394,000) |
Net (loss) income | (3,209,000) | 0 | 0 | (3,209,000) | 0 |
Pension adjustments, net of tax effect | 2,135,000 | $ 0 | 0 | 0 | 2,135,000 |
Dividends | (230,000) | (230,000) | |||
Shares vested and others (in shares) | 177,793 | ||||
Shares vested and others | (339,000) | $ 2,000 | (341,000) | 0 | 0 |
Stock compensation expense | 830,000 | $ 0 | 830,000 | 0 | 0 |
Balance (in shares) at Jan. 31, 2018 | 15,357,457 | ||||
Balance at Jan. 31, 2018 | 58,712,000 | $ 154,000 | $ 117,465,000 | (49,648,000) | $ (9,259,000) |
Beginning balance adjustment to retained earnings as a result of the adoption of ASU 2016-09 | Accounting Standards Update 2014-09 | $ 171,000 | $ 171,000 |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders’ Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Pension adjustment tax effects | $ 1,267 | $ 1,816 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Operating activities | |||
Net (loss) income | $ (3,209,000) | $ 22,760,000 | $ 4,549,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 5,466,000 | 5,026,000 | 4,757,000 |
Increase in provision for doubtful accounts | 55,000 | 160,000 | 141,000 |
Increase in inventory reserve | 493,000 | 626,000 | 350,000 |
(Gain) loss on sale of property, plant and equipment | (16,000) | (2,000) | 9,000 |
Deferred income taxes | 5,821,000 | (18,122,000) | 77,000 |
Stock-based compensation | 830,000 | 609,000 | 493,000 |
Defined benefit plan, recognized net loss due to settlements | 0 | 0 | 587,000 |
Amortization of net actuarial loss for pension plans | 955,000 | 1,328,000 | 2,013,000 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (1,470,000) | 14,000 | 544,000 |
Other receivables | 181,000 | (182,000) | 10,000 |
Inventories | (6,861,000) | (1,712,000) | (8,275,000) |
Income taxes | 112,000 | 41,000 | (54,000) |
Prepaid expenses and other current assets | 73,000 | (536,000) | (532,000) |
Accounts payable and accrued liabilities | (748,000) | (4,148,000) | 2,838,000 |
Net cash provided by operating activities | 1,682,000 | 5,862,000 | 7,507,000 |
Investing activities | |||
Capital expenditures | (6,208,000) | (4,408,000) | (4,261,000) |
Purchase of manufacturing facility | (7,200,000) | 0 | 0 |
Proceeds from sale of property, plant and equipment | 22,000 | 2,000 | 8,000 |
Net proceeds (investments in) from life insurance | 119,000 | (65,000) | 56,000 |
Net cash used in investing activities | (13,267,000) | (4,471,000) | (4,197,000) |
Financing activities | |||
Proceeds from long-term debt | 36,742,000 | 37,447,000 | 31,960,000 |
Repayment of long-term debt | (25,072,000) | (38,601,000) | (34,719,000) |
Common stock repurchased | (339,000) | (264,000) | (206,000) |
Net cash provided by (used in) financing activities | 11,331,000 | (1,418,000) | (2,965,000) |
Net (decrease) increase in cash | (254,000) | (27,000) | 345,000 |
Cash at beginning of year | 788,000 | 815,000 | 470,000 |
Cash at end of year | 534,000 | 788,000 | 815,000 |
Interest | 1,545,000 | 1,217,000 | 1,281,000 |
Income tax, net of refunds | $ 46,000 | $ 49,000 | $ 72,000 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Business Virco Mfg. Corporation (the “Company”), which operates in one business segment, is engaged in the design, production and distribution of quality furniture for the commercial and education markets. Over 68 years of manufacturing operations have resulted in a wide product assortment. Major products include mobile tables, mobile storage equipment, desks, computer furniture, chairs, activity tables, folding chairs and folding tables. The Company manufactures its products in Torrance, California, and Conway, Arkansas, for sale primarily in the United States. The Company operates in a seasonal business, and requires significant amounts of working capital under its credit facility to fund acquisitions of inventory and finance receivables during the summer delivery season. Restrictions imposed by the terms of the Company’s credit facility may limit the Company’s operating and financial flexibility. However, management believes that its existing cash and available borrowings under its credit facility, and any cash generated from operations will be sufficient to fund its working capital requirements, capital expenditures and other obligations through the next 12 months. Principles of Consolidation The consolidated financial statements include the accounts of Virco Mfg. Corporation and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Management Use of Estimates Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities - and disclosure of contingent assets and liabilities - at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, but are not limited to, valuation of inventory; deferred tax assets and liabilities; useful lives of property, plant, and equipment; liabilities under pension, warranty, self-insurance, and environmental claims; and the accounts receivable allowance for doubtful accounts. Actual results could differ from these estimates. Fiscal Year End Fiscal years 2018 , 2017 , and 2016 refer to the fiscal years ended January 31, 2018 , 2017 and 2016 respectively. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company’s recurring customers are generally made on open account with terms consistent with the industry. Credit is extended based on an evaluation of the customer’s financial condition and payment history. Past due accounts are determined based on how recently payments have been made in relation to the terms granted. Amounts are written off against the allowance in the period that the Company determines that the receivable is not collectable. The Company purchases insurance on receivables from certain commercial customers to minimize the Company’s credit risk. The Company does not typically obtain collateral to secure credit risk. Customers with inadequate credit are required to provide cash in advance or letters of credit. The Company does not assess interest on receivable balances. A substantial percentage of the Company’s receivables come from low-risk government entities. No customer exceeded 10% of the Company’s sales for fiscal years ended January 31, 2018 , 2017 and 2016. Foreign sales were approximately 6.3% , 6.3% and 6.7% of the Company’s sales for fiscal years 2018 , 2017 and 2016 , respectively. No single customer accounted for more than 10% of the Company’s accounts receivable at January 31, 2018 or 2017 . Because of the short time between shipment and collection, the net carrying value of receivables approximates the fair value for these assets. Fair Values of Financial Instruments The fair values of the Company’s cash, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. Financial assets and liabilities measured at fair value on a recurring basis are classified in one of the three following categories, which are described below: Level 1 — Valuations based on unadjusted quoted prices for identical assets in an active market. Level 2 — Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 3 — Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing. Financial assets measured at fair value on a recurring basis include assets associated with the Virco Employees Retirement Plan. 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 lower of 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 January 31, 2018 and 2017 : January 31, 2018 2017 Finished goods 13,054 11,174 WIP 16,627 13,486 Raw materials 12,376 11,029 Inventories, net 42,057 35,689 Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation and amortization are computed on the straight-line method for financial reporting purposes based upon the following estimated useful lives: Land improvements 5 to 25 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements shorter of lease or useful life The Company capitalizes the cost of betterments that extend the life of an asset. Repairs and maintenance that do not extend the life of an asset are expensed as incurred. Repair and maintenance expense was $1,518,000 , $1,460,000 and $1,759,000 for fiscal years ended January 31, 2018 , 2017 and 2016 , respectively. The Company subleased space at one of its facilities on a month-to-month basis during 2018 , 2017 , and 2016 . Rental income was $40,000 , $40,000 , $51,000 for fiscal years ended January 31, 2018 , 2017 , and 2016 respectively. The Company has established asset retirement obligations related to leased manufacturing facilities in accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 410, “Asset Retirement and Environmental Obligations.” Accrued asset retirement obligations are recorded at net present value and discounted over the life of the lease. Asset retirement obligations, included in other non-current liabilities were $170,000 and $590,000 at January 31, 2018 and 2017 , respectively. January 31, 2018 2017 Balance at beginning of period $ 590,000 $ 581,000 Decrease in obligation (425,000 ) — Accretion expense 5,000 9,000 Balance at end of period $ 170,000 $ 590,000 Impairment of Long-Lived Assets An impairment loss is recognized in the event facts and circumstances indicate the carrying amount of a long-lived asset may not be recoverable, and an estimate of future undiscounted cash flows is less than the carrying amount of the asset. Impairment is recorded based on the excess of the carrying amount of the impaired asset over the fair value. Generally, fair value represents the Company’s expected future cash flows from the use of an asset or group of assets, discounted at a rate commensurate with the risks involved. There were no impairments in fiscal years 2018 , 2017 and 2016 . Net (Loss) Income per Share Basic net income per share is calculated by dividing net income by the weighted-average number of common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted-average number of common shares outstanding plus the dilution effect of stock grants. The following table sets forth the computation of basic and diluted income per share: In thousands, except per share data 2018 2017 2016 Numerator Net (loss) income $ (3,209 ) $ 22,760 $ 4,549 Denominator Weighted-average shares — basic 15,244 15,067 14,914 Dilutive effect of equity incentive plans — 199 204 Weighted-average shares — diluted (a) 15,244 15,266 15,118 Net (loss) income per common share Basic $ (0.21 ) $ 1.51 $ 0.31 Diluted (0.21 ) 1.49 0.30 (a) For fiscal year 2018, approximately 147,000 shares of common stock equivalents were excluded in the computation of diluted net income per share, as the effect would be anti-dilutive. Environmental Costs The Company is subject to numerous environmental laws and regulations in the various jurisdictions in which it operates that (a) govern operations that may have adverse environmental effects, such as the discharge of materials into the environment, as well as handling, storage, transportation and disposal practices for solid and hazardous wastes, and (b) impose liability for response costs and certain damages resulting from past and current spills, disposals or other releases of hazardous materials. Normal, recurring expenses related to operating the Company's factories in a manner that meets or exceeds environmental laws and regulations are matched to the cost of producing inventory. Despite our efforts to comply with existing laws and regulations, compliance with more stringent laws or regulations, or stricter interpretation of existing laws, may require additional expenditures by us, some of which may be material. We reserve amounts for such matters when expenditures are probable and reasonably estimable. Costs incurred to investigate and remediate environmental waste are expensed, unless the remediation extends the useful life of the assets employed at the site. At January 31, 2018 and 2017 , the Company had not capitalized any remediation costs and had not recorded any amortization expense in fiscal years 2018 , 2017 , and 2016 . Advertising Costs Advertising costs are expensed in the period during which the advertising space is run. Selling, general and administrative expenses include advertising costs of $974,000 in 2018 , $945,000 in 2017 , and $1,057,000 in 2016 . Prepaid advertising costs reported as a prepaid asset on the balance sheet at January 31, 2018 and 2017 , were $355,000 and $326,000 , respectively. Product Warranty Expense The Company provides a product warranty on most products. The standard warranty offered on products sold through January 31, 2013 is ten years. Effective February 1, 2014 through December 31, 2016, the Company modified its warranty to a limited lifetime warranty. Effective January 1, 2017, the Company modified the warranty offered to provide specific warranty periods by product component, with no warranty period longer than ten years. The Company generally provides that customers can return a defective product during the specified warranty period following purchase in exchange for a replacement product or that the Company can repair the product at no charge to the customer. The Company determines whether replacement or repair is appropriate in each circumstance. The Company uses historic data to estimate appropriate levels of warranty reserves. Because product mix, production methods, and raw material sources change over time, historic data may not always provide precise estimates for future warranty expense. The Company recorded warranty reserves of $925,000 and $1,000,000 as of January 31, 2018 and 2017 , respectively. The current portion of the warranty reserve was $400,000 and $500,000 for 2018 and 2017 , respectively. Self-Insurance In 2018 and 2017 , the Company was self-insured for product and general liability losses up to $250,000 per occurrence, for workers’ compensation losses up to $250,000 per occurrence, and for auto liability up to $50,000 per occurrence. Actuaries assist the Company in determining its liability for the self-insured component of claims, which have been discounted to their net present value utilizing a discount rate of 2.00% in 2018 and 2.00% in 2017 . Stock-Based Compensation Plans The Company recognizes stock-based compensation cost for shares that are expected to vest, on a straight-line basis, over the requisite service period of the award. Virco issued a 10% stock dividend or 3/2 stock split every year beginning in 1983 through 2003. Although the stock dividend had no cash consequences to the Company, the accounting methodology required for 10% dividends has affected the equity section of the balance sheet. When the Company records a 10% stock dividend, 10% of the market capitalization of the Company on the date of the declaration is reclassified from retained earnings to additional paid-in capital. During the period from 1983 through 2003, the cumulative effect of the stock dividends has been to reclassify over $122 million from retained earnings to additional paid-in capital. The equity section of the balance sheet on January 31, 2018 reflects additional paid-in capital of approximately $117 million and accumulated deficit of approximately $49.6 million . Other than the losses incurred during 2004-2006 and 2011-2014, the accumulated deficit is a result of the accounting reclassification, and is not the result of accumulated losses. Accumulated Other Comprehensive Income (Loss), Net of Tax The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the year ended January 31, 2018 and 2017 : January 31, (in thousands) 2018 2017 Balance as of beginning of year $ (11,394 ) $ (14,330 ) Other comprehensive income before reclassifications 1,180 1,608 Amounts reclassified from AOCI 955 1,328 Net current period other comprehensive income 2,135 2,936 Balance as of end of year $ (9,259 ) $ (11,394 ) The reclassifications out of accumulated other comprehensive income (loss) of $955,000 and $1,328,000 for the years ended January 31, 2018 and 2017 , respectively, related to amortization of actuarial losses. Revenue Recognition The Company recognizes revenue in accordance with FASB ASC Topic 605, “Revenue Recognition.” Revenue is recognized when title passes under its various shipping terms, when classroom delivery services are complete, and when collectability is reasonably assured. The Company reports sales net of sales returns and allowances, sales taxes imposed by various government authorities, cash discounts and rebate to customers. In most instances, the Company sells furniture on bids and contracts, which may include multiple elements. For sales that include freight to the customer, many sales are delivered on the same day shipped, with an average delivery being in route for 1 to 3 days. Classroom delivery, which involves carrying the furniture to the classroom and setting the desks and chairs in place, typically occurs the day the furniture is delivered. In accordance with ASC 605, 25, “Revenue Recognition - Multiple-Element Arrangements,” revenue arrangements with multiple deliverables are generally accounted for by the Company on a combined unit of accounting as the furniture delivery and classroom delivery are generally provided at the same time. We recognize the consideration for the combined unit of accounting once the final item has been delivered and installed. Revenue includes freight charged to customers; related costs are recorded in selling and administrative expense. Rebates, discounts, and other marketing program expenses directly related to the sale are recorded as a reduction to net sales. Delivery Costs For the fiscal years ended January 31, 2018 , 2017 and 2016 , shipping and classroom delivery costs of approximately $19,299,000 , $16,116,000 and $15,799,000 , respectively, were included in selling, general and administrative expenses. Accounting for 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 FASB ASC Topic 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. A valuation allowance against deferred tax assets is recorded when it is determined to be more likely than not that the asset will not be realized. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Jan. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In February 2018, the FASB issued authoritative guidance to address certain stranded income tax effects in accumulated other comprehensive income (loss) resulting from the 2017 Tax Cuts and Jobs Act (the “Tax Reform”) enacted in December 2017. This guidance provides the Company with an option to reclassify stranded tax effected within accumulated other comprehensive income (loss) to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate due to the Tax Reform is recorded. The Company will adopt this standard in the first quarter of fiscal 2019. The Company is currently evaluating the effect the standard will have on consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use asset and lease liability. Changes to the lessee accounting model may change key balance sheet measures and ratios, potentially effecting analyst expectations and compliance with financial covenants. The new standard becomes effective for the Company effective for fiscal years beginning after December 15, 2018, but may be adopted at any time, and requires a modified retrospective transition. The Company is currently evaluating the effect the standard will have on consolidated financial statements and related disclosures which could be significant. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. The new standard provides classification guidance on eight cash flow issues including debt prepayment, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlements of insurance claims, proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. The new standard becomes effective for the Company for fiscal years beginning after December 15, 2017. The Company anticipates the standard will have an immaterial effect on consolidated statements of cash flows. In March 2017, the FASB issued authoritative guidance related to the presentation of net periodic pension cost in the income statement. This guidance requires that the service cost component of net periodic pension cost is presented in the same line as other compensation costs arising from services rendered by the respective employees during the period. The other components of net periodic pension cost are required to be presented in the income statement separately from the service cost component and outside of earnings from operations. This guidance also allows for the service cost component to be eligible for capitalization when applicable. This guidance is effective for fiscal years beginning after December 15, 2017, which will be the Company’s first quarter of fiscal 2019, and requires retrospective adoption for the presentation of the service cost component and other components of net periodic pension cost in the income statement and prospective adoption for capitalization of the service cost component. Early adoption is permitted at the beginning of a fiscal year. The Company adopted this standard in the first quarter of fiscal 2018 and it had no effect on the condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The new standard is intended to simplify accounting for share based employment awards to employees. Changes include: all excess tax benefits/deficiencies should be recognized as income tax expense/benefit; entities can make elections on how to account for forfeitures; and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity on the cash flow statement. The Company implemented the new standard in the first quarter of fiscal 2018. The primary impact of implementation was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital beginning with the first quarter of fiscal 2018. Upon adoption, the balance of the unrecognized excess tax benefits of approximately $172,000 was reversed with the impact recorded to retained earnings. Prior to the adoption of this standard, that amount would have been recognized as an adjustment to "Additional paid-in capital" in the Consolidated Balance Sheets. Excess tax benefits will be recorded in the operating section of the Consolidated Statements of Cash Flows on a prospective basis. Prior to fiscal 2018, the tax benefits or shortfalls were recorded in financing cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares in the financing section had no impact to any of the periods presented in our Consolidated Statements of Cash Flows since such cash flows have historically been presented as a financing activity. 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 and requires prospective adoption with early adoption permitted. The Company adopted this standard in the first quarter of fiscal 2018 and it had no effect on the consolidated financial statements and related disclosures. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), and has modified the standard thereafter. The core principal of the standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The new revenue standard will be effective for the Company on February 1, 2018. The standard permits the use of either a full retrospective method, where the standard is applied to each prior reporting period presented or a cumulative effect transition method, or modified retrospective method, where the cumulative effect of initially applying the standard is recognized at the date of initial application. The Company will adopt the standard in the first quarter of 2019 using the modified retrospective approach to adoption. Our sales generally involve single performance obligations to ship goods pursuant to customer purchase orders without further underlying contracts. Prices for our products are based on published price lists, customer agreements and individual customer orders which, for certain arrangements, involve variable consideration such as sales volume rebates to customers which is currently recorded as sales are recorded. We currently record sales when products are shipped and title and other risks and rewards of ownership have passed to the customer. Under ASU 2014-09, we will record sales when our customers obtain control of our products. Accordingly, we expect adoption of this standard will have minimal effect on our revenues and disclosure. |
Debt
Debt | 12 Months Ended |
Jan. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Outstanding balances (in thousands) for the Company’s long-term debt were as follows: January 31, In thousands, except per share data 2018 2017 Revolving credit line $ 10,059 $ 4,914 Other 6,622 97 Total debt 16,681 5,011 Less current portion 4,681 68 Non-current portion $ 12,000 $ 4,943 On December 22, 2011, the Company entered into a Revolving Credit and Security Agreement (the “Credit Agreement”) with PNC Bank, National Association, as administrative agent and lender (“PNC”). The credit agreement has been amended seventeen times subsequent to that date, which, among other things, extended the maturity date of the Credit Agreement for three years until March 19, 2023, increased the maximum availability under the Credit Agreement to $60,000,000 with seasonal adjustments to the credit limit and subject to borrowing base limitations, and includes a sub-limit of up to $3,000,000 for issuances of letters of credit, modified, eliminated or waived covenants, amended seasonal advances and established a 2,500,000 line for equipment financing. The Credit Agreement provides the Borrowers with a secured revolving line of credit (the “Revolving Credit Facility”) of up to $60,000,000, with seasonal adjustments to the credit limit and subject to borrowing base limitations, and includes a sub-limit of up to $3,000,000 for issuances of letters of credit. In addition, the Credit Agreement provides an Equipment Line for purchases of equipment up to $2,500,000. The Revolving Credit Facility is an asset-based line of credit that is subject to a borrowing base limitation and generally provides for advances of up to 85% of eligible accounts receivable, plus a percentage equal to the lesser of 60% of the value of eligible inventory or 85% of the liquidation value of eligible inventory, plus an amount ranging from $8,000,000 to $14,000,000 from December 1 through July 31 of each year, minus undrawn amounts of letters of credit and reserves. The Revolving Credit Facility is secured by substantially all of the Borrowers' personal property and certain of the Borrowers' real property. The principal amount outstanding under the Credit Agreement and any accrued and unpaid interest is due no later than March 19, 2023, and the Revolving Credit Facility is subject to certain prepayment penalties upon earlier termination of the Revolving Credit Facility. Prior to the maturity date, principal amounts outstanding under the Credit Agreement may be repaid and reborrowed at the option of the Borrowers without premium or penalty, subject to borrowing base limitations, seasonal adjustments and certain other conditions. The Revolving Credit Facility bears interest, at the Borrowers' option, at either the Alternate Base Rate (as defined in the Credit Agreement) or the Eurodollar Currency Rate (as defined in the Credit Agreement), in each case plus an applicable margin. The applicable margin for Alternate Base Rate loans is a percentage within a range of 0.50% to 1.50% , and the applicable margin for Eurodollar Currency Rate loans is a percentage within a range of 1.50% to 2.50% , in each case based on the EBITDA of the Borrowers at the end of each fiscal quarter, and may be increased at PNC's option by 2.0% during the continuance of an event of default. Accrued interest with respect to principal amounts outstanding under the Credit Agreement is payable in arrears on a monthly basis for Alternative Base Rate loans, and at the end of the applicable interest period but at most every three months for Eurodollar Currency Rate loans. The interest rate at January 31, 2018 was 5.0% . On April 4, 2016, the Company entered into Amendment No. 12, which retroactively modified the capital expenditure covenant at January 31, 2016 and extended the maturity to December 2019. On October 27, 2016 the Company entered into Amendment No. 13, which modified the line to allow for a credit card program through PNC Bank. On March 13, 2017 the Company entered into Amendment No. 14 which established an equipment line to facilitate the capital expenditure plan for 2018 and to establish covenants for 2018. On June 8, 2017, the Company entered into Amendment No. 15 to the Credit Agreement which, among other things, will allow the restatement of the amount of revolving advances to $14,000,000 for June 2017 and $11,000,000 for July 2017 and extend the time to borrow under the $2,500,000 Equipment Line until March 12, 2018. In August 2017, the Company purchased a manufacturing building in Conway Arkansas for $7,200,000 with Virco making a 20% down payment and the seller providing financing for the remaining balance of $5,760,000 for 20 years at a fixed rate of 4% per year. In connection to this purchase, the Company entered into Amendment No. 16 to the Credit Agreement with PNC Bank which, among other things, will (a) consent to the acquisition of the building, (b) permit the Company to incur the additional indebtedness and (c) amend the Credit Agreement in certain respects, which Lenders and Agent are willing to do on the terms and subject to the conditions contained in this Amendment. On March 19, 2018, the Company entered into Amendment No. 17, which amended the Credit Agreement by (i) extending the maturity date of the Credit Agreement for three years until March 19, 2023, (ii) allowing dividends and stock buyback up to $2,000,000 in aggregate for any fiscal year, (iii) setting forth the minimum EBITDA financial covenant for fiscal quarter ending April 30, 2018 at ( $3,767,000 ) and two consecutive fiscal quarters ending July 31, 2018 at $6,402,000 , (iv) increasing the Maximum Revolving Advance Amount from $50,000,000 to $60,000,000 , and (v) setting forth the minimum fixed charge coverage ratio of not less than 1.10 to 1.00 commencing with the consecutive four fiscal quarter period ending October 31, 2018 and measured as of the end of each fiscal quarter until the maturity date of the Credit Agreement. In connection with the Seventeenth Amendment, the Borrowers also agreed to pay to PNC Bank a non-refundable extension fee of $250,000 . The Credit Agreement also requires the Company to maintain the following financial maintenance covenants: (i) a minimum fixed charge coverage ratio, and (ii) a minimum EBITDA amount, in each case as of the end of the relevant monthly, quarterly or annual measurement period. As of January 31, 2018 , the Credit Agreement required the Company to maintain: (i) a minimum fixed charge coverage ratio of at least 1.10 to 1.00 for the four consecutive fiscal quarters ending January 31, 2018 , and (ii) a minimum EBITDA amount of $7,400,000 for the twelve consecutive fiscal months ending January 31, 2018 . The actual results of the Company with respect to the foregoing financial covenants for the period ending January 31, 2018 were as follows: (i) the Company maintained a fixed charge coverage ratio of greater than 1.41 to 1.00 for the four consecutive fiscal quarters ended January 31, 2018 , and (ii) the Company achieved EBITDA of $10,254,000 for the fiscal year ended January 31, 2018 . In addition, the Credit Agreement contains a clean down provision that requires the Company to reduce borrowings under the line to less than $8,000,000 for a period of 30 consecutive days each fiscal year. The Company believes that normal operating cash flow will allow it to meet the clean down requirement with no adverse impact on the Company's liquidity. Events of default (subject to certain cure periods and other limitations) under the Credit Agreement include, but are not limited to, (i) non-payment of principal, interest or other amounts due under the Credit Agreement, (ii) the violation of terms, covenants, representations or warranties in the Credit Agreement or related loan documents, (iii) any event of default under agreements governing certain indebtedness of the Borrowers and certain defaults by the Borrowers under other agreements that would materially adversely affect the Borrowers, (iv) certain events of bankruptcy, insolvency or liquidation involving the Borrowers, (v) judgments or judicial actions against the Borrowers in excess of $250,000 ,subject to certain conditions, (vi) the failure of the Company to comply with Pension Benefit Plans (as defined in the Credit Agreement), (vii) the invalidity of loan documents pertaining to the Credit Agreement, (viii) a change of control of the Borrowers and (ix) the interruption of operations of any of the Borrowers' manufacturing facilities for five consecutive days during the peak season or fifteen consecutive days during any other time, subject to certain conditions. Pursuant to the Credit Agreement, substantially all of the Borrowers' accounts receivable are automatically and promptly swept to repay amounts outstanding under the Revolving Credit Facility upon receipt by the Borrowers. Due to this automatic liquidating nature of the Revolving Credit Facility, if the Borrowers breach any covenant, violate any representation or warranty or suffer a deterioration in their ability to borrow pursuant to the borrowing base calculation, the Borrowers may not have access to cash liquidity unless provided by PNC at its discretion. In addition, certain of the covenants and representations and warranties set forth in the Credit Agreement contain limited or no materiality thresholds, and many of the representations and warranties must be true and correct in all material respects upon each borrowing, which the Borrowers expect to occur on an ongoing basis. There can be no assurance that the Borrowers will be able to comply with all such covenants and be able to continue to make such representations and warranties on an ongoing basis. The Company's line of credit with PNC is structured to provide seasonal credit availability during the Company's peak summer season. The Company believes that the Revolving Credit Facility will provide sufficient liquidity to meet its capital requirements in the next 12 months. Approximately $15,961,000 was available for borrowing as of January 31, 2018 . As of January 31, 2018 , long-term debt repayments are approximately as follows (in thousands): Year ending January 31, 2019 $ 4,681 2020 6,767 2021 767 2022 461 2023 419 Thereafter 3,586 Management believes that the carrying value of debt approximated fair value at January 31, 2018 and 2017 , as all of the long-term debt bears interest at variable rates based on prevailing market conditions. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jan. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Retirement Plans Pension Plans The Company maintains three defined benefit pension plans, the Virco Employees Retirement Plan (“Employee Plan”), the Virco Important Performers Retirement Plan (“VIP Plan”) and the Directors Plan. The annual measurement date for all plans for the fiscal years ended January 31, 2018 , 2017 and 2016 is January 31. The Company and its subsidiaries cover all employees hired prior to December 31, 2003 under the Employee Plan, which is a qualified noncontributory defined benefit retirement plan. Benefits under the Employee Plan are based on years of service and career average earnings. Benefit accruals under the Employee Plan were frozen effective December 31, 2003. All benefits were fully vested on January 31, 2018 and 2017. The Company also provides a supplementary retirement plan for certain key employees, the VIP Plan. The VIP Plan provides a benefit up to 50% of average compensation for the last five years in the VIP Plan offset by benefits earned under the Employee Plan. Benefit accruals under the VIP Plan were frozen effective December 31, 2003. The VIP Plan benefits are secured by a life insurance program. Substantially all assets securing the VIP Plan are held in a rabbi trust. These cash surrender values are included in other assets in the consolidated balance sheets. The cash surrender values of the policies securing the VIP Plan were $3,411,000 and $3,367,000 at January 31, 2018 and 2017 , respectively. Death benefits payable under life insurance policies held by the Plan were approximately $9,095,000 and $9,189,000 at January 31, 2018 and 2017 , respectively. The Company maintains a rabbi trust to hold assets related to the VIP Retirement Plan and a Split Dollar Life Insurance Plan. In April 2001, the Board of Directors established the Directors Plan, a non-qualified plan for non-employee directors of the Company. Benefit accruals under the Directors Plan were frozen effective December 31, 2003. At January 31, 2018 , the Directors Plan did not hold any assets. Accounting policy regarding pensions requires management to make complex and subjective estimates and assumptions relating to amounts which are inherently uncertain. Three primary economic assumptions influence the reported values of plan liabilities and pension costs. The Company takes the following factors into consideration: discount rate, assumed rate of return and rate of increase in compensation. The discount rate represents an estimate of the rate of return on a portfolio of high-quality fixed-income securities that would provide cash flows that match the expected benefit payment stream from the plans. When setting the discount rate, the Company utilizes a spot-rate yield curve developed from high-quality bonds currently available which reflects changes in rates that have occurred over the past year. This assumption is sensitive to movements in market rates that have occurred since the preceding valuation date, and therefore, may change from year to year. Because the Company froze future benefit accruals for all benefit plans, the compensation increase assumption had no impact on pension expense, accumulated benefit obligation or projected benefit obligation for the period ended January 31, 2018 or 2017 . The assumed rate of return on plan assets represents an estimate of long-term returns available to investors who hold a mixture of stocks, bonds, and cash equivalent securities. When setting its expected return on plan asset assumptions, the Company considers long-term rates of return on various asset classes (both historical and forecasted, using data collected from various sources generally regarded as authoritative) in the context of expected long-term average asset allocations for its defined benefit pension plan. The VIP Plan and Directors Plan are executive benefit plans that are not funded and is subject to the Company's creditors. Because this plan is not funded, the assumed rate of return has no impact on pension expense or the funded status of the plan. The Company maintains a trust for and funds the pension obligations for the Employee Plan. The Board of Directors appoints a Retirement Plan Committee that establishes a policy for investment and funding strategies. Approximately 70% of the trust assets are managed by investment advisors and held in common trust funds with the balance managed by the Retirement Plan Committee. The Retirement Plan Committee has established target asset allocations for its investment advisors, who invest the trust assets in a variety of institutional collective trust funds. The Company’s investment advisors have developed a funding strategy that moves fund asset allocation from equity and other investments to fixed income instruments designed to mirror the changes in discount rates as the Plan becomes more fully funded. At January 31, 2018 less than 10% of the trust assets were held in these investments. The Retirement Plan Committee receives quarterly reports addressing investment returns, funded status of the plan, and progress on the glidepath to fully funded status from the investment advisors and meets periodically with them to discuss investment performance. At January 31, 2018 and 2017 , the amount of the plan assets invested in bond or short-term investment funds was 4% and 9% , respectively, and the balance of the trust was held in equity funds or investments. The trust does not hold any Company stock. It is the Company's policy to contribute adequate funds to the trust accounts to cover benefit payments under the VIP Plan and the Directors Plan to maintain the funded status of the Employee Plan at a level which is adequate to avoid significant restrictions to the Employee Plan under the Pension Protection Act of 2006. The Company contributed $1.4 million , $1.4 million , and $1.6 million , to the trust in 2018 , 2017 , and 2016 , respectively. Contributions during fiscal year 2019 will depend upon actual investment results and benefit payments, but are anticipated to be approximately $0.9 million . During 2018 , 2017 , and 2016 , the Company paid approximately $345,000 , $536,000 and $591,000 respectively, in benefits per year under the non-qualified plans. It is anticipated that contributions to non-qualified plans will be approximately $345,000 for 2019 . At January 31, 2018 , accumulated other comprehensive loss of approximately $9.3 million , net of tax, is attributable to the pension plans. The following tables set forth (in thousands) the funded status of the Company’s pension plans at January 31, 2018 , and 2017 : Employee Plan VIP Plan Directors Plan 1/31/2018 1/31/2017 1/31/2018 1/31/2017 1/31/2018 1/31/2017 Change in Benefit Obligation Benefit obligation at beg. of year $ 31,212 $ 32,659 $ 8,292 $ 8,701 $ 257 $ 280 Service cost — — — — — — Interest cost 1,217 1,184 367 357 9 10 Participant contributions — — — — — — Amendments — — — — — — Actuarial losses (gains) 256 (1,125 ) 656 (266 ) 18 3 Plan settlement — — — — — — Benefits paid (1,758 ) (1,506 ) (309 ) (500 ) (36 ) (36 ) Benefit obligation at end of year $ 30,927 $ 31,212 $ 9,006 $ 8,292 $ 248 $ 257 Change in Plan Assets Fair value at beg. of year $ 22,911 $ 19,848 $ — $ — $ — $ — Actual return on plan assets 4,726 3,169 — — — — Company contributions 1,380 1,400 309 500 36 36 Settlements — — — — — — Benefits paid (1,758 ) (1,506 ) (309 ) (500 ) (36 ) (36 ) Fair value at end of year $ 27,259 $ 22,911 $ — $ — $ — $ — Funded Status Unfunded status of the plan $ (3,668 ) $ (8,301 ) $ (9,006 ) $ (8,292 ) $ (248 ) $ (257 ) Amounts Recognized in Statement of Financial Position Current liabilities — — (312 ) (278 ) (34 ) (34 ) Non-current liabilities (3,668 ) (8,301 ) (8,694 ) (8,014 ) (214 ) (223 ) Accrued benefit cost $ (3,668 ) $ (8,301 ) $ (9,006 ) $ (8,292 ) $ (248 ) $ (257 ) Amounts Recognized in Statement of Financial Position and Operations Accrued benefit liability $ (3,668 ) $ (8,301 ) $ (9,006 ) $ (8,292 ) $ (248 ) $ (257 ) Accumulated other comp. loss (gain) 5,749 9,567 2,863 2,447 — — Net amount recognized $ 2,081 $ 1,266 $ (6,143 ) $ (5,845 ) $ (248 ) $ (257 ) Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI Unrecognized net actuarial loss (gain) $ 5,749 $ 9,567 $ 2,863 $ 2,447 $ — $ — Unamortized prior service costs — — — — — — Net initial asset recognition — — — — — — $ 5,749 $ 9,567 $ 2,863 $ 2,447 $ — $ — Employee Plan VIP Plan Directors Plan 1/31/2018 1/31/2017 1/31/2018 1/31/2017 1/31/2018 1/31/2017 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) $ (3,103 ) $ (3,159 ) $ 656 $ (266 ) $ — $ 3 Prior service cost — — — — — Amortization of (loss) gain (715 ) (1,162 ) (240 ) (310 ) 144 Amortization of prior service cost (credit) — — — — — — Amortization of initial asset — — — — — — Total recognized in other comprehensive (loss) income $ (3,818 ) $ (4,321 ) $ 416 $ (576 ) $ — $ 147 Items to be Recognized as a Component of Periodic Pension Cost for next fiscal year Prior service cost $ — $ — $ — $ — $ — $ — Net actuarial loss (gain) 362 715 330 240 — — $ 362 $ 715 $ 330 $ 240 $ — $ — Supplemental Data Projected benefit obligation $ 30,927 $ 31,212 $ 9,006 $ 8,292 $ 248 $ 257 Accumulated benefit obligation 30,927 31,212 9,006 8,292 248 257 Fair value of plan assets 27,259 22,911 — — — — Components of Net Cost Service cost $ — $ — $ — $ — $ — $ — Interest cost 1,217 1,184 367 357 9 10 Expected return on plan assets (1,367 ) (1,134 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to settlement — — — — — — Amortization of prior service cost — — — — — — Recognized net actuarial loss 715 1,162 240 310 — (144 ) Benefit cost $ 565 $ 1,212 $ 607 $ 667 $ 9 $ (134 ) Estimated Future Benefit Payments FYE 01-31-2019 $ 5,215 $ 312 $ 34 FYE 01-31-2020 2,415 324 32 FYE 01-31-2021 2,077 316 31 FYE 01-31-2022 1,897 352 29 FYE 01-31-2023 1,895 366 27 FYE 01-31-2024 to 2028 9,325 2,191 70 Total $ 22,824 $ 3,861 $ 223 Weighted Average Assumptions to Determine Benefit Obligations at Year-End Discount rate 3.75 % 4.25 % 4.00 % 4.50 % 3.75 % 4.25 % Rate of compensation increase N/A N/A N/A N/A N/A N/A Weighted Average Assumptions to Determine Net Periodic Pension Cost Discount rate 4.25 % 4.00 % 4.25 % 4.25 % 4.25 % 4.00 % Expected return on plan assets 6.50 % 6.50 % N/A N/A N/A N/A Rate of compensation increase N/A N/A N/A N/A N/A N/A Fair Value Measurements of Plan Assets Employee Plan 1/31/2018 1/31/2017 Level 1 Measurement Cash & Cash Equivalents $ — $ — Common Stock 9,701 7,379 Total Level 1 $ 9,701 $ 7,379 Level 2 Measurement PNC Govt Money Fund $ 1,030 $ 856 Vanguard Total Bond — 1,144 Ishares Credit Bond ETF 340 172 Vanguard INTM Term Investment 702 346 Vanguard LT Investment 1,973 — Ishares Russell 2000 2,047 1,771 Ishares Russell MID-CAP 2,129 1,817 Ishares Emerging Markets 1,338 1,110 Ishares MCSI RAFE 1,838 1,553 Ishares S&P Index 4,825 — Vanguard REIT — 913 Blackrock S&P Index — 4,643 Managed Investment Fund 1,336 1,207 Total Level 2 $ 17,558 $ 15,532 Level 3 Measurement None N/A N/A 401(k) Retirement Plan The Company’s retirement plan, which covers all U.S. employees, allows participants to defer from 1% to 75% of their eligible compensation through a 401(k) retirement program. Through December 31, 2001, the plan included an employee stock ownership component. The plan continues to include Virco stock as one of the investment options. At January 31, 2018 and 2017 , the plan held 564,375 shares and 587,084 shares of Virco stock, respectively. For the fiscal year ended January 31, 2018 , the Company made a small contribution to employees enrolled in the Plan in connection with an auto enrollment program and initiated a Company match effective January 1, 2018. For the fiscal years ended January 31, 2018 , the compensation costs incurred for employer match was $44,000 . There was no employer match for fiscal year 2017 and 2016 . Life Insurance The Company provided post-retirement life insurance to certain retired employees under the Dual Option Life Insurance Plan. Effective January 2004, the Company terminated this plan for active employees. The Company has purchased split-dollar life insurance on the lives of the covered participants. Death benefits due to participants are approximately $2,450,000 . Cash surrender values of these policies, which are included in other assets in the consolidated balance sheets, were $2,092,000 and $2,231,000 at January 31, 2018 and 2017 , respectively. Death benefits payable under the policies were approximately $4,486,000 and $4,748,000 at January 31, 2018 and 2017 , respectively. Death benefits received under the Plan in excess of the benefit obligation will be retained in the trust and used to secure and fund benefits payable under the VIP Pension Plan. The Company maintains a rabbi trust to hold assets related to the Dual Option Life Insurance Plan. All assets securing this plan are held in the rabbi trust. The following sets forth the Company's change in death benefits payable during the years ended January 31, 2018 and 2017 : 1/31/2018 1/31/2017 Liability beginning of year $ 2,184,000 $ 2,166,000 Accretion expense 54,000 68,000 Death benefits paid (150,000 ) (50,000 ) Liability end of year $ 2,088,000 $ 2,184,000 |
Stock-Based Compensation and St
Stock-Based Compensation and Stockholders' Rights | 12 Months Ended |
Jan. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation and Stockholders' Rights | Stock-Based Compensation 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 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 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 504,404 awards granted and 259,284 awards were vested during fiscal 2018 . As of January 31, 2018 , there were approximately 303,832 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 no awards and the plan expired during fiscal 2018 . Accounting for the Plans Restricted Stock Unit Awards The following table presents a summary of restricted stock and stock unit awards: Expense for 12 months ended Unrecognized Compensation Cost at Date of Grants Units Granted Terms of Vesting 1/31/2018 1/31/2017 1/31/2016 1/31/2018 2011 Stock Incentive Plan 06/20/2017 40,404 1 year $ 133,000 $ — $ — $ 67,000 06/20/2017 464,000 5 years 292,000 — — 1,901,000 06/21/2016 51,284 1 year 67,000 133,000 — — 06/21/2016 36,000 3 years 16,000 32,000 — — 06/22/2015 48,000 4 years 33,000 32,000 22,000 44,000 06/22/2015 27,174 1 year — 25,000 50,000 — 06/24/2014 490,000 5 years 240,000 240,000 246,000 320,000 06/24/2014 28,626 5 years — — 25,000 — 06/19/2012 520,000 5 years 49,000 147,000 150,000 — Totals for the period $ 830,000 $ 609,000 $ 493,000 $ 2,332,000 A summary of the Company’s restricted stock unit awards activity, and related information for the following years ended January 31, is as follows: 2018 2017 2016 Restricted stock units Weighted- average fair value of restricted stock units Restricted stock units Weighted- average fair value of restricted stock units Restricted stock units Weighted- average fair value of restricted stock units Outstanding at beginning of year 491,284 $ 2.46 657,174 $ 2.34 812,626 $ 2.24 Granted 504,404 4.95 87,284 3.89 75,174 2.76 Vested (259,284 ) 4.86 (223,174 ) 4.04 (212,626 ) 2.79 Forfeited (44,000 ) 4.42 (30,000 ) 2.61 (18,000 ) 2.74 Outstanding at end of year 692,404 4.25 491,284 2.46 657,174 2.34 Weighted-average fair value of restricted stock units granted during the year 4.95 3.89 2.76 The aggregate fair value of restricted stock unit awards vested during fiscal years 2018 , 2017 , and 2016 was $1,260,120 , $901,623 and $593,227 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax expense (benefit) for the last three years is reconciled to the statutory federal income tax rate as follows (in thousands): Year ended January 31, 2018 2017 2016 Statutory $ 794 $ 1,607 $ 1,587 State taxes (net of federal tax) 341 363 303 Change in valuation allowance 410 (19,831 ) (2,214 ) State rate adjustment (260 ) (548 ) 168 Change in unrecognized tax benefits 6 (1 ) (3 ) Stock Compensation (200 ) — — Tax cuts and jobs act 4,438 — — Expirations of attributes 143 408 229 Other (49 ) (31 ) 48 Income tax expense (benefit) $ 5,623 $ (18,033 ) $ 118 Significant components of the expense (benefit) for income taxes (in thousands) attributed to continuing operations are as follows: Year ended January 31, 2018 2017 2016 Current Federal $ (296 ) $ 24 $ 1 State 98 65 40 (198 ) 89 41 Deferred Federal 5,270 1,519 1,567 State 141 190 724 5,411 1,709 2,291 Change in Valuation Allowance 410 (19,831 ) (2,214 ) 5,821 (18,122 ) 77 Income tax expense (benefit) $ 5,623 $ (18,033 ) $ 118 Deferred tax assets and liabilities (in thousands) are comprised of the following: Year ended January 31, 2018 2017 Deferred tax assets Accrued vacation and sick leave $ 1,015 $ 1,211 Retirement plans 3,756 6,900 Insurance reserves 451 633 Warranty 242 383 Net operating loss carryforwards 4,722 7,627 Intangibles — — Inventory 1,085 1,418 Other 624 1,005 $ 11,895 $ 19,177 Deferred tax liabilities Tax in excess of book depreciation $ (811 ) $ (1,556 ) Other (66 ) (98 ) $ (877 ) $ (1,654 ) Valuation allowance (925 ) (515 ) Net long term deferred tax asset $ 10,093 $ 17,008 In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. 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. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. 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. The Company has left a partial valuation allowance of $925,000 against certain state deferred tax assets that the Company does not believe it is more-likely-than-not to realize. At January 31, 2018 , the Company has net operating loss carryforwards of approximately $13,458,000 for federal and $30,979,000 for state income tax purposes, expiring at various dates through January 31, 2035. The following table summarizes the activity related to our gross unrecognized tax benefits from February 1, 2016 to January 31, 2018 (in thousands): January 31, 2018 2017 Balances as of February 1, $ 29 $ 31 Increases related to prior year tax positions 2 1 Decreases related to prior year tax positions — — Increases related to current year tax positions 16 5 Decreases relating to settlements with taxing authorities — — Decreases related to lapsing of statute of limitations (9 ) (8 ) Balance as of January 31, $ 38 $ 29 At January 31, 2018 , the Company’s unrecognized tax benefits associated with uncertain tax positions were $38,000 , of which $30,000 if recognized, would favorably affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense which is consistent with the recognition of the items in prior reporting. The Company had recorded a liability for interest and penalties related to unrecognized tax benefits of $5,000 at January 31, 2018 , and $4,000 at January 31, 2017 . In 2016, the Company closed its IRS examination for its tax return for the year ended January 31, 2013 with no changes. The years ended January 31, 2015 and subsequent years remain open for examination by the IRS and state tax authorities. The Company is currently under IRS examination for fiscal year ended January 31, 2016. The Company is not currently under state examinations. The specific timing of when the resolution of each tax position will be reached is uncertain. As of January 31, 2018 , it is reasonably possible that unrecognized tax benefits will decrease by $4,000 within the next 12 months due to the expiration of the statute of limitations. In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting (''ASU 2016-09''). ASU 2016-09 simplifies how several aspects of share-based payments are accounted for and presented in the financial statements. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016. The Company adopted this ASU in the first quarter of fiscal 2018. The Company has excess tax benefits for which a benefit could not be previously recognized of approximately $172,000 . The balance of the unrecognized excess tax benefits was reversed with the impact recorded to retained earnings. The Tax Cuts and Jobs Act was enacted on December 22, 2017. The Act reduces the US federal corporate tax rate to 21%. On December 22, 2017, Staff Accounting Bulletin No. 118 was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, we have determined that $4,438,000 of the deferred tax expense recorded in connection with the remeasurement of certain deferred tax assets and liabilities was provisional amount and reasonable estimate at January 31, 2018. Additional work is necessary to do a more detailed analysis. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of fiscal year 2019 when the analysis is complete. |
Commitments
Commitments | 12 Months Ended |
Jan. 31, 2018 | |
Commitments [Abstract] | |
Commitments | Commitments The Company has operating leases on real property and equipment that expire at various dates. The Company has been operating a component fabrication operation in this building since 1998 under a series of 10-year leases. The current lease would have expired in March 2018. In August 2017, the Company purchased this facility for $7,200,000 with Virco making a 20% down payment and the seller providing financing for the remaining balance of $5,760,000 for 20 years at a fixed rate of 4% per year. The Torrance, CA office, manufacturing and distribution facility is leased under a series of 5 -year operating lease that would have expired on February 28, 2020. On November 14, 2017, the Company entered into a fourth amendment which extends the term of the lease for an additional 62 months through April 30, 2025, and provides for monthly base lease payments that increase after each 12-month period. The monthly base lease payments range from approximately $396,890.00 per month (which applies for the period from May 1, 2020 to February 28, 2021) to $446,703.19 per month (which applies for the period from March 1, 2024 to April 30, 2025). The Company leases machinery and equipment under a 5 -year operating lease arrangement. The Company has the option of buying out the assets at the end of the lease period. The Company leases trucks, automobiles, and forklifts under operating leases that include certain fleet management and maintenance services. Certain of the leases contain renewal or purchase options and require payment for property taxes and insurance. The Company records rent expense on a straight-line basis based on contractual lease payments. Allowances from lessors for tenant improvements have been included in the straight-line rent expense for applicable locations. Tenant improvements are capitalized and depreciated over the remaining life of the applicable lease. Minimum future lease payments (in thousands) for operating leases in effect as of January 31, 2018 , are as follows: Year ending January 31, 2019 $ 4,386 2020 4,219 2021 3,970 2022 4,927 2023 5,040 Thereafter 11,879 Total minimum lease payments $ 34,421 Rent expense relating to operating leases was as follows (in thousands): Year ended January 31, 2018 $ 5,644 2017 5,735 2016 5,681 The Company has issued purchase commitments for raw materials at January 31, 2018 , of approximately $12,646,000 . There were no commitments in excess of normal operating requirements. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 31, 2018 | |
Contingencies [Abstract] | |
Contingencies | Contingencies The Company and other furniture manufacturers are subject to federal, state and local laws and regulations relating to the discharge of materials into the environment and the generation, handling, storage, transportation and disposal of waste and hazardous materials. The Company has expended, and expects to continue to spend, significant amounts in the future to comply with environmental laws. Normal recurring expenses relating to operating the Company factories in a manner that meets or exceeds environmental laws are matched to the cost of producing inventory. Despite the Company’s significant dedication to operating in compliance with applicable laws, there is a risk that the Company could fail to comply with a regulation or that applicable laws and regulations change. On these occasions, the Company records liabilities for remediation costs when remediation costs are probable and can be reasonably estimated. The Company is subject to contingencies pursuant to environmental laws and regulations that in the future may require the Company to take action to correct the effects on the environment of prior disposal practices or releases of chemical or petroleum substances by the Company or other parties. The Company has a self-insured retention for product and general liability losses up to $250,000 per occurrence, workers’ compensation liability losses up to $250,000 per occurrence, and for automobile liability losses up to $50,000 per occurrence. The Company has purchased insurance to cover losses in excess of the retention up to a limit of $30,000,000 . The Company has obtained an actuarial estimate of its total expected future losses for liability claims and recorded a liability equal to the net present value of $1,375,000 and $1,650,000 at January 31, 2018 and 2017 , respectively, based upon the Company’s estimated payout period of five years using a 2.0% and 2.0% discount rate, respectively. Workers’ compensation, automobile, general and product liability claims may be asserted in the future for events not currently known by management. Management does not anticipate that any related settlement, after consideration of the existing reserve for claims incurred and potential insurance recovery, would have a material adverse effect on the Company’s financial position, results of operations or cash flows. Estimated payments under the self-insurance programs are as follows (in thousands): Year ending January 31, 2019 $ 300 2020 300 2021 300 2022 300 2023 215 Thereafter — Total $ 1,415 Discount to net present value (40 ) $ 1,375 The Company and its subsidiaries are defendants in various legal proceedings resulting from operations in the normal course of business. It is the opinion of management, in consultation with legal counsel, that the ultimate outcome of all such matters will not materially affect the Company’s financial position, results of operations or cash flows. |
Warranty
Warranty | 12 Months Ended |
Jan. 31, 2018 | |
Standard Product Warranty Disclosure [Abstract] | |
Warranty | Warranty The Company provides a warranty against all substantial defects in material and workmanship. The standard warranty offered on products sold through January 31, 2013 is 10 years. Effective February 1, 2014 the Company modified its warranty to a limited lifetime warranty. The warranty effective February 1, 2014 is not anticipated to have a significant effect on warranty expense. Effective January 1, 2017, the Company modified the warranty offered to provide specific warranty periods by product component, with no warranty period longer than ten years. 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 during 2018 and 2017 . January 31, (In thousands) 2018 2017 Beginning balance $ 1,000 $ 1,000 Provision for current year 760 700 Provision for (benefits from) prior year (380 ) (285 ) Costs incurred (455 ) (415 ) Ending balance $ 925 $ 1,000 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated events subsequent to January 31, 2018 , to assess the need for potential recognition or disclosure in this report. 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 require recognition or additional disclosure in the financial statements except for Amendment No. 17, dated March 19, 2018 to the Revolving Credit and Security Agreement, dated as of December 22, 2011, which is disclosed in the notes to the consolidated financial statements. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Jan. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) The Company’s quarterly results for the years ended January 31, 2018 and 2017 , as adjusted, are summarized as follows (in thousands, except per share data): Q1 Q2 Q3 Q4 Year ended January 31, 2018 Net sales $ 23,235 $ 72,636 $ 68,794 $ 24,622 Gross profit 8,427 26,683 24,467 5,894 Net (loss) income*** (2,211 ) 5,028 2,524 (8,550 ) Per common share Net (loss) income* Basic $ (0.15 ) $ 0.33 $ 0.16 $ (0.56 ) Assuming dilution (0.15 ) 0.33 0.16 (0.56 ) Year ended January 31, 2017 Net sales $ 20,827 $ 61,354 $ 67,795 $ 23,441 Gross profit 8,063 23,738 24,311 6,431 Net (loss) income** (3,138 ) 6,885 23,998 (4,985 ) Per common share Net (loss) income* Basic $ (0.21 ) $ 0.46 $ 1.59 $ (0.33 ) Assuming dilution (0.21 ) 0.45 1.57 (0.33 ) ______________________________ * 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. ** For fiscal quarter ended October 31, 2016, the Company released its valuation allowance against the deferred tax assets resulting in a benefit to income taxes of $17,962,000 . *** For fiscal quarter ended January 31, 2018, the Company's tax expense increased by $4,438,000 from the revaluation of deferred tax assets as a result of the reduction in the federal tax rate due to the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Jan. 31, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | VIRCO MFG. CORPORATION AND SUBSIDIARIES SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE YEARS ENDED JANUARY 31, 2018, 2017 AND 2016 (In Thousands) Col. A Col. B Col. C Col. E Col. F Allowance for doubtful accounts for the period ended: January 31, 2018 $ 200 $ 55 $ 55 $ 200 January 31, 2017 $ 200 $ 110 $ 110 $ 200 January 31, 2016 $ 200 $ 141 $ 141 $ 200 Warranty reserve for the period ended: January 31, 2018 $ 1,000 $ 380 $ 455 $ 925 January 31, 2017 $ 1,000 $ 415 $ 415 $ 1,000 January 31, 2016 $ 950 $ 375 $ 325 $ 1,000 Product, general, workers’ compensation and automobile liability reserves for the period ended: January 31, 2018 $ 1,650 $ 1,101 $ 1,404 $ 1,347 January 31, 2017 $ 2,050 $ 777 $ 1,177 $ 1,650 January 31, 2016 $ 2,130 $ 975 $ 1,055 $ 2,050 Deferred tax valuation allowance for the period ended: January 31, 2018 $ 515 $ 410 $ — $ 925 January 31, 2017 $ 21,906 $ — $ 21,391 $ 515 January 31, 2016 $ 26,399 $ — $ 4,493 $ 21,906 All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions, are inapplicable, or are included in the Financial Statements or Notes thereto, and therefore are not required to be presented under this Item. |
Summary of Business and Signi22
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of Virco Mfg. Corporation and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Management Use of Estimates | Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities - and disclosure of contingent assets and liabilities - at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, but are not limited to, valuation of inventory; deferred tax assets and liabilities; useful lives of property, plant, and equipment; liabilities under pension, warranty, self-insurance, and environmental claims; and the accounts receivable allowance for doubtful accounts. Actual results could differ from these estimates. |
Fiscal Year End | Fiscal years 2018 , 2017 , and 2016 refer to the fiscal years ended January 31, 2018 , 2017 and 2016 respectively. |
Concentration of Credit Risk | Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company’s recurring customers are generally made on open account with terms consistent with the industry. Credit is extended based on an evaluation of the customer’s financial condition and payment history. Past due accounts are determined based on how recently payments have been made in relation to the terms granted. Amounts are written off against the allowance in the period that the Company determines that the receivable is not collectable. The Company purchases insurance on receivables from certain commercial customers to minimize the Company’s credit risk. The Company does not typically obtain collateral to secure credit risk. Customers with inadequate credit are required to provide cash in advance or letters of credit. The Company does not assess interest on receivable balances. A substantial percentage of the Company’s receivables come from low-risk government entities. No customer exceeded 10% of the Company’s sales for fiscal years ended January 31, 2018 , 2017 and 2016. Foreign sales were approximately 6.3% , 6.3% and 6.7% of the Company’s sales for fiscal years 2018 , 2017 and 2016 , respectively. No single customer accounted for more than 10% of the Company’s accounts receivable at January 31, 2018 or 2017 . Because of the short time between shipment and collection, the net carrying value of receivables approximates the fair value for these assets. |
Fair Values of Financial Instruments | The fair values of the Company’s cash, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. Financial assets and liabilities measured at fair value on a recurring basis are classified in one of the three following categories, which are described below: Level 1 — Valuations based on unadjusted quoted prices for identical assets in an active market. Level 2 — Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 3 — Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing. Financial assets measured at fair value on a recurring basis include assets associated with the Virco Employees Retirement Plan. |
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 lower of 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 January 31, 2018 and 2017 : January 31, 2018 2017 Finished goods 13,054 11,174 WIP 16,627 13,486 Raw materials 12,376 11,029 Inventories, net 42,057 35,689 |
Property, Plant and Equipment | Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation and amortization are computed on the straight-line method for financial reporting purposes based upon the following estimated useful lives: Land improvements 5 to 25 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements shorter of lease or useful life The Company capitalizes the cost of betterments that extend the life of an asset. Repairs and maintenance that do not extend the life of an asset are expensed as incurred. Repair and maintenance expense was $1,518,000 , $1,460,000 and $1,759,000 for fiscal years ended January 31, 2018 , 2017 and 2016 , respectively. The Company subleased space at one of its facilities on a month-to-month basis during 2018 , 2017 , and 2016 . Rental income was $40,000 , $40,000 , $51,000 for fiscal years ended January 31, 2018 , 2017 , and 2016 respectively. The Company has established asset retirement obligations related to leased manufacturing facilities in accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 410, “Asset Retirement and Environmental Obligations.” Accrued asset retirement obligations are recorded at net present value and discounted over the life of the lease. Asset retirement obligations, included in other non-current liabilities were $170,000 and $590,000 at January 31, 2018 and 2017 , respectively. January 31, 2018 2017 Balance at beginning of period $ 590,000 $ 581,000 Decrease in obligation (425,000 ) — Accretion expense 5,000 9,000 Balance at end of period $ 170,000 $ 590,000 |
Impairment of Long-Lived Assets | An impairment loss is recognized in the event facts and circumstances indicate the carrying amount of a long-lived asset may not be recoverable, and an estimate of future undiscounted cash flows is less than the carrying amount of the asset. Impairment is recorded based on the excess of the carrying amount of the impaired asset over the fair value. Generally, fair value represents the Company’s expected future cash flows from the use of an asset or group of assets, discounted at a rate commensurate with the risks involved. There were no impairments in fiscal years 2018 , 2017 and 2016 . |
Net Loss per Share | Basic net income per share is calculated by dividing net income by the weighted-average number of common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted-average number of common shares outstanding plus the dilution effect of stock grants. The following table sets forth the computation of basic and diluted income per share: In thousands, except per share data 2018 2017 2016 Numerator Net (loss) income $ (3,209 ) $ 22,760 $ 4,549 Denominator Weighted-average shares — basic 15,244 15,067 14,914 Dilutive effect of equity incentive plans — 199 204 Weighted-average shares — diluted (a) 15,244 15,266 15,118 Net (loss) income per common share Basic $ (0.21 ) $ 1.51 $ 0.31 Diluted (0.21 ) 1.49 0.30 |
Environmental Costs | The Company is subject to numerous environmental laws and regulations in the various jurisdictions in which it operates that (a) govern operations that may have adverse environmental effects, such as the discharge of materials into the environment, as well as handling, storage, transportation and disposal practices for solid and hazardous wastes, and (b) impose liability for response costs and certain damages resulting from past and current spills, disposals or other releases of hazardous materials. Normal, recurring expenses related to operating the Company's factories in a manner that meets or exceeds environmental laws and regulations are matched to the cost of producing inventory. Despite our efforts to comply with existing laws and regulations, compliance with more stringent laws or regulations, or stricter interpretation of existing laws, may require additional expenditures by us, some of which may be material. We reserve amounts for such matters when expenditures are probable and reasonably estimable. Costs incurred to investigate and remediate environmental waste are expensed, unless the remediation extends the useful life of the assets employed at the site. At January 31, 2018 and 2017 , the Company had not capitalized any remediation costs and had not recorded any amortization expense in fiscal years 2018 , 2017 , and 2016 . |
Advertising Costs | Advertising costs are expensed in the period during which the advertising space is run. Selling, general and administrative expenses include advertising costs of $974,000 in 2018 , $945,000 in 2017 , and $1,057,000 in 2016 . Prepaid advertising costs reported as a prepaid asset on the balance sheet at January 31, 2018 and 2017 , were $355,000 and $326,000 , respectively. |
Product Warranty Expense | The Company provides a product warranty on most products. The standard warranty offered on products sold through January 31, 2013 is ten years. Effective February 1, 2014 through December 31, 2016, the Company modified its warranty to a limited lifetime warranty. Effective January 1, 2017, the Company modified the warranty offered to provide specific warranty periods by product component, with no warranty period longer than ten years. The Company generally provides that customers can return a defective product during the specified warranty period following purchase in exchange for a replacement product or that the Company can repair the product at no charge to the customer. The Company determines whether replacement or repair is appropriate in each circumstance. The Company uses historic data to estimate appropriate levels of warranty reserves. Because product mix, production methods, and raw material sources change over time, historic data may not always provide precise estimates for future warranty expense. The Company recorded warranty reserves of $925,000 and $1,000,000 as of January 31, 2018 and 2017 , respectively. The current portion of the warranty reserve was $400,000 and $500,000 for 2018 and 2017 , respectively. |
Self-Insurance | In 2018 and 2017 , the Company was self-insured for product and general liability losses up to $250,000 per occurrence, for workers’ compensation losses up to $250,000 per occurrence, and for auto liability up to $50,000 per occurrence. Actuaries assist the Company in determining its liability for the self-insured component of claims, which have been discounted to their net present value utilizing a discount rate of 2.00% in 2018 and 2.00% in 2017 . |
Share-based Compensation Plans | The Company recognizes stock-based compensation cost for shares that are expected to vest, on a straight-line basis, over the requisite service period of the award. Virco issued a 10% stock dividend or 3/2 stock split every year beginning in 1983 through 2003. Although the stock dividend had no cash consequences to the Company, the accounting methodology required for 10% dividends has affected the equity section of the balance sheet. When the Company records a 10% stock dividend, 10% of the market capitalization of the Company on the date of the declaration is reclassified from retained earnings to additional paid-in capital. During the period from 1983 through 2003, the cumulative effect of the stock dividends has been to reclassify over $122 million from retained earnings to additional paid-in capital. The equity section of the balance sheet on January 31, 2018 reflects additional paid-in capital of approximately $117 million and accumulated deficit of approximately $49.6 million . Other than the losses incurred during 2004-2006 and 2011-2014, the accumulated deficit is a result of the accounting reclassification, and is not the result of accumulated losses. |
Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss), Net of Tax The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the year ended January 31, 2018 and 2017 : January 31, (in thousands) 2018 2017 Balance as of beginning of year $ (11,394 ) $ (14,330 ) Other comprehensive income before reclassifications 1,180 1,608 Amounts reclassified from AOCI 955 1,328 Net current period other comprehensive income 2,135 2,936 Balance as of end of year $ (9,259 ) $ (11,394 ) The reclassifications out of accumulated other comprehensive income (loss) of $955,000 and $1,328,000 for the years ended January 31, 2018 and 2017 , respectively, related to amortization of actuarial losses. |
Revenue Recognition | The Company recognizes revenue in accordance with FASB ASC Topic 605, “Revenue Recognition.” Revenue is recognized when title passes under its various shipping terms, when classroom delivery services are complete, and when collectability is reasonably assured. The Company reports sales net of sales returns and allowances, sales taxes imposed by various government authorities, cash discounts and rebate to customers. In most instances, the Company sells furniture on bids and contracts, which may include multiple elements. For sales that include freight to the customer, many sales are delivered on the same day shipped, with an average delivery being in route for 1 to 3 days. Classroom delivery, which involves carrying the furniture to the classroom and setting the desks and chairs in place, typically occurs the day the furniture is delivered. In accordance with ASC 605, 25, “Revenue Recognition - Multiple-Element Arrangements,” revenue arrangements with multiple deliverables are generally accounted for by the Company on a combined unit of accounting as the furniture delivery and classroom delivery are generally provided at the same time. We recognize the consideration for the combined unit of accounting once the final item has been delivered and installed. |
Delivery Costs | For the fiscal years ended January 31, 2018 , 2017 and 2016 , shipping and classroom delivery costs of approximately $19,299,000 , $16,116,000 and $15,799,000 , respectively, were included in selling, general and administrative expenses. |
Accounting for Income Taxes | Accounting for 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 FASB ASC Topic 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. A valuation allowance against deferred tax assets is recorded when it is determined to be more likely than not that the asset will not be realized. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 12 Months Ended |
Jan. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In February 2018, the FASB issued authoritative guidance to address certain stranded income tax effects in accumulated other comprehensive income (loss) resulting from the 2017 Tax Cuts and Jobs Act (the “Tax Reform”) enacted in December 2017. This guidance provides the Company with an option to reclassify stranded tax effected within accumulated other comprehensive income (loss) to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate due to the Tax Reform is recorded. The Company will adopt this standard in the first quarter of fiscal 2019. The Company is currently evaluating the effect the standard will have on consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use asset and lease liability. Changes to the lessee accounting model may change key balance sheet measures and ratios, potentially effecting analyst expectations and compliance with financial covenants. The new standard becomes effective for the Company effective for fiscal years beginning after December 15, 2018, but may be adopted at any time, and requires a modified retrospective transition. The Company is currently evaluating the effect the standard will have on consolidated financial statements and related disclosures which could be significant. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. The new standard provides classification guidance on eight cash flow issues including debt prepayment, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlements of insurance claims, proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. The new standard becomes effective for the Company for fiscal years beginning after December 15, 2017. The Company anticipates the standard will have an immaterial effect on consolidated statements of cash flows. In March 2017, the FASB issued authoritative guidance related to the presentation of net periodic pension cost in the income statement. This guidance requires that the service cost component of net periodic pension cost is presented in the same line as other compensation costs arising from services rendered by the respective employees during the period. The other components of net periodic pension cost are required to be presented in the income statement separately from the service cost component and outside of earnings from operations. This guidance also allows for the service cost component to be eligible for capitalization when applicable. This guidance is effective for fiscal years beginning after December 15, 2017, which will be the Company’s first quarter of fiscal 2019, and requires retrospective adoption for the presentation of the service cost component and other components of net periodic pension cost in the income statement and prospective adoption for capitalization of the service cost component. Early adoption is permitted at the beginning of a fiscal year. The Company adopted this standard in the first quarter of fiscal 2018 and it had no effect on the condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The new standard is intended to simplify accounting for share based employment awards to employees. Changes include: all excess tax benefits/deficiencies should be recognized as income tax expense/benefit; entities can make elections on how to account for forfeitures; and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity on the cash flow statement. The Company implemented the new standard in the first quarter of fiscal 2018. The primary impact of implementation was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital beginning with the first quarter of fiscal 2018. Upon adoption, the balance of the unrecognized excess tax benefits of approximately $172,000 was reversed with the impact recorded to retained earnings. Prior to the adoption of this standard, that amount would have been recognized as an adjustment to "Additional paid-in capital" in the Consolidated Balance Sheets. Excess tax benefits will be recorded in the operating section of the Consolidated Statements of Cash Flows on a prospective basis. Prior to fiscal 2018, the tax benefits or shortfalls were recorded in financing cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares in the financing section had no impact to any of the periods presented in our Consolidated Statements of Cash Flows since such cash flows have historically been presented as a financing activity. 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 and requires prospective adoption with early adoption permitted. The Company adopted this standard in the first quarter of fiscal 2018 and it had no effect on the consolidated financial statements and related disclosures. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), and has modified the standard thereafter. The core principal of the standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The new revenue standard will be effective for the Company on February 1, 2018. The standard permits the use of either a full retrospective method, where the standard is applied to each prior reporting period presented or a cumulative effect transition method, or modified retrospective method, where the cumulative effect of initially applying the standard is recognized at the date of initial application. The Company will adopt the standard in the first quarter of 2019 using the modified retrospective approach to adoption. Our sales generally involve single performance obligations to ship goods pursuant to customer purchase orders without further underlying contracts. Prices for our products are based on published price lists, customer agreements and individual customer orders which, for certain arrangements, involve variable consideration such as sales volume rebates to customers which is currently recorded as sales are recorded. We currently record sales when products are shipped and title and other risks and rewards of ownership have passed to the customer. Under ASU 2014-09, we will record sales when our customers obtain control of our products. Accordingly, we expect adoption of this standard will have minimal effect on our revenues and disclosure. |
Summary of Business and Signi24
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Net | The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of January 31, 2018 and 2017 : January 31, 2018 2017 Finished goods 13,054 11,174 WIP 16,627 13,486 Raw materials 12,376 11,029 Inventories, net 42,057 35,689 |
Depreciation and amortization computed on the straight-line method for financial reporting purposes based upon estimated useful lives | Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation and amortization are computed on the straight-line method for financial reporting purposes based upon the following estimated useful lives: Land improvements 5 to 25 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements shorter of lease or useful life |
Asset retirement obligations related to leased manufacturing facilities | January 31, 2018 2017 Balance at beginning of period $ 590,000 $ 581,000 Decrease in obligation (425,000 ) — Accretion expense 5,000 9,000 Balance at end of period $ 170,000 $ 590,000 |
Computation of basic and diluted loss per share | The following table sets forth the computation of basic and diluted income per share: In thousands, except per share data 2018 2017 2016 Numerator Net (loss) income $ (3,209 ) $ 22,760 $ 4,549 Denominator Weighted-average shares — basic 15,244 15,067 14,914 Dilutive effect of equity incentive plans — 199 204 Weighted-average shares — diluted (a) 15,244 15,266 15,118 Net (loss) income per common share Basic $ (0.21 ) $ 1.51 $ 0.31 Diluted (0.21 ) 1.49 0.30 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the year ended January 31, 2018 and 2017 : January 31, (in thousands) 2018 2017 Balance as of beginning of year $ (11,394 ) $ (14,330 ) Other comprehensive income before reclassifications 1,180 1,608 Amounts reclassified from AOCI 955 1,328 Net current period other comprehensive income 2,135 2,936 Balance as of end of year $ (9,259 ) $ (11,394 ) The reclassifications out of accumulated other comprehensive income (loss) of $955,000 and $1,328,000 for the years ended January 31, 2018 and 2017 , respectively, related to amortization of actuarial losses. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Debt Disclosure [Abstract] | |
Outstanding balances of long-term debt | Outstanding balances (in thousands) for the Company’s long-term debt were as follows: January 31, In thousands, except per share data 2018 2017 Revolving credit line $ 10,059 $ 4,914 Other 6,622 97 Total debt 16,681 5,011 Less current portion 4,681 68 Non-current portion $ 12,000 $ 4,943 |
Schedule of maturities of long-term debt | As of January 31, 2018 , long-term debt repayments are approximately as follows (in thousands): Year ending January 31, 2019 $ 4,681 2020 6,767 2021 767 2022 461 2023 419 Thereafter 3,586 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of pension plans | The following tables set forth (in thousands) the funded status of the Company’s pension plans at January 31, 2018 , and 2017 : Employee Plan VIP Plan Directors Plan 1/31/2018 1/31/2017 1/31/2018 1/31/2017 1/31/2018 1/31/2017 Change in Benefit Obligation Benefit obligation at beg. of year $ 31,212 $ 32,659 $ 8,292 $ 8,701 $ 257 $ 280 Service cost — — — — — — Interest cost 1,217 1,184 367 357 9 10 Participant contributions — — — — — — Amendments — — — — — — Actuarial losses (gains) 256 (1,125 ) 656 (266 ) 18 3 Plan settlement — — — — — — Benefits paid (1,758 ) (1,506 ) (309 ) (500 ) (36 ) (36 ) Benefit obligation at end of year $ 30,927 $ 31,212 $ 9,006 $ 8,292 $ 248 $ 257 Change in Plan Assets Fair value at beg. of year $ 22,911 $ 19,848 $ — $ — $ — $ — Actual return on plan assets 4,726 3,169 — — — — Company contributions 1,380 1,400 309 500 36 36 Settlements — — — — — — Benefits paid (1,758 ) (1,506 ) (309 ) (500 ) (36 ) (36 ) Fair value at end of year $ 27,259 $ 22,911 $ — $ — $ — $ — Funded Status Unfunded status of the plan $ (3,668 ) $ (8,301 ) $ (9,006 ) $ (8,292 ) $ (248 ) $ (257 ) Amounts Recognized in Statement of Financial Position Current liabilities — — (312 ) (278 ) (34 ) (34 ) Non-current liabilities (3,668 ) (8,301 ) (8,694 ) (8,014 ) (214 ) (223 ) Accrued benefit cost $ (3,668 ) $ (8,301 ) $ (9,006 ) $ (8,292 ) $ (248 ) $ (257 ) Amounts Recognized in Statement of Financial Position and Operations Accrued benefit liability $ (3,668 ) $ (8,301 ) $ (9,006 ) $ (8,292 ) $ (248 ) $ (257 ) Accumulated other comp. loss (gain) 5,749 9,567 2,863 2,447 — — Net amount recognized $ 2,081 $ 1,266 $ (6,143 ) $ (5,845 ) $ (248 ) $ (257 ) Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI Unrecognized net actuarial loss (gain) $ 5,749 $ 9,567 $ 2,863 $ 2,447 $ — $ — Unamortized prior service costs — — — — — — Net initial asset recognition — — — — — — $ 5,749 $ 9,567 $ 2,863 $ 2,447 $ — $ — Employee Plan VIP Plan Directors Plan 1/31/2018 1/31/2017 1/31/2018 1/31/2017 1/31/2018 1/31/2017 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) $ (3,103 ) $ (3,159 ) $ 656 $ (266 ) $ — $ 3 Prior service cost — — — — — Amortization of (loss) gain (715 ) (1,162 ) (240 ) (310 ) 144 Amortization of prior service cost (credit) — — — — — — Amortization of initial asset — — — — — — Total recognized in other comprehensive (loss) income $ (3,818 ) $ (4,321 ) $ 416 $ (576 ) $ — $ 147 Items to be Recognized as a Component of Periodic Pension Cost for next fiscal year Prior service cost $ — $ — $ — $ — $ — $ — Net actuarial loss (gain) 362 715 330 240 — — $ 362 $ 715 $ 330 $ 240 $ — $ — Supplemental Data Projected benefit obligation $ 30,927 $ 31,212 $ 9,006 $ 8,292 $ 248 $ 257 Accumulated benefit obligation 30,927 31,212 9,006 8,292 248 257 Fair value of plan assets 27,259 22,911 — — — — Components of Net Cost Service cost $ — $ — $ — $ — $ — $ — Interest cost 1,217 1,184 367 357 9 10 Expected return on plan assets (1,367 ) (1,134 ) — — — — Amortization of transition amount — — — — — — Recognized (gain) loss due to settlement — — — — — — Amortization of prior service cost — — — — — — Recognized net actuarial loss 715 1,162 240 310 — (144 ) Benefit cost $ 565 $ 1,212 $ 607 $ 667 $ 9 $ (134 ) Estimated Future Benefit Payments FYE 01-31-2019 $ 5,215 $ 312 $ 34 FYE 01-31-2020 2,415 324 32 FYE 01-31-2021 2,077 316 31 FYE 01-31-2022 1,897 352 29 FYE 01-31-2023 1,895 366 27 FYE 01-31-2024 to 2028 9,325 2,191 70 Total $ 22,824 $ 3,861 $ 223 Weighted Average Assumptions to Determine Benefit Obligations at Year-End Discount rate 3.75 % 4.25 % 4.00 % 4.50 % 3.75 % 4.25 % Rate of compensation increase N/A N/A N/A N/A N/A N/A Weighted Average Assumptions to Determine Net Periodic Pension Cost Discount rate 4.25 % 4.00 % 4.25 % 4.25 % 4.25 % 4.00 % Expected return on plan assets 6.50 % 6.50 % N/A N/A N/A N/A Rate of compensation increase N/A N/A N/A N/A N/A N/A |
Fair value measurements of plan assets | 1/31/2018 1/31/2017 Level 1 Measurement Cash & Cash Equivalents $ — $ — Common Stock 9,701 7,379 Total Level 1 $ 9,701 $ 7,379 Level 2 Measurement PNC Govt Money Fund $ 1,030 $ 856 Vanguard Total Bond — 1,144 Ishares Credit Bond ETF 340 172 Vanguard INTM Term Investment 702 346 Vanguard LT Investment 1,973 — Ishares Russell 2000 2,047 1,771 Ishares Russell MID-CAP 2,129 1,817 Ishares Emerging Markets 1,338 1,110 Ishares MCSI RAFE 1,838 1,553 Ishares S&P Index 4,825 — Vanguard REIT — 913 Blackrock S&P Index — 4,643 Managed Investment Fund 1,336 1,207 Total Level 2 $ 17,558 $ 15,532 Level 3 Measurement None N/A N/A |
Life insurance liability | The following sets forth the Company's change in death benefits payable during the years ended January 31, 2018 and 2017 : 1/31/2018 1/31/2017 Liability beginning of year $ 2,184,000 $ 2,166,000 Accretion expense 54,000 68,000 Death benefits paid (150,000 ) (50,000 ) Liability end of year $ 2,088,000 $ 2,184,000 |
Stock-Based Compensation and 27
Stock-Based Compensation and Stockholders' Rights (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
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: Expense for 12 months ended Unrecognized Compensation Cost at Date of Grants Units Granted Terms of Vesting 1/31/2018 1/31/2017 1/31/2016 1/31/2018 2011 Stock Incentive Plan 06/20/2017 40,404 1 year $ 133,000 $ — $ — $ 67,000 06/20/2017 464,000 5 years 292,000 — — 1,901,000 06/21/2016 51,284 1 year 67,000 133,000 — — 06/21/2016 36,000 3 years 16,000 32,000 — — 06/22/2015 48,000 4 years 33,000 32,000 22,000 44,000 06/22/2015 27,174 1 year — 25,000 50,000 — 06/24/2014 490,000 5 years 240,000 240,000 246,000 320,000 06/24/2014 28,626 5 years — — 25,000 — 06/19/2012 520,000 5 years 49,000 147,000 150,000 — Totals for the period $ 830,000 $ 609,000 $ 493,000 $ 2,332,000 A summary of the Company’s restricted stock unit awards activity, and related information for the following years ended January 31, is as follows: 2018 2017 2016 Restricted stock units Weighted- average fair value of restricted stock units Restricted stock units Weighted- average fair value of restricted stock units Restricted stock units Weighted- average fair value of restricted stock units Outstanding at beginning of year 491,284 $ 2.46 657,174 $ 2.34 812,626 $ 2.24 Granted 504,404 4.95 87,284 3.89 75,174 2.76 Vested (259,284 ) 4.86 (223,174 ) 4.04 (212,626 ) 2.79 Forfeited (44,000 ) 4.42 (30,000 ) 2.61 (18,000 ) 2.74 Outstanding at end of year 692,404 4.25 491,284 2.46 657,174 2.34 Weighted-average fair value of restricted stock units granted during the year 4.95 3.89 2.76 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income tax expense (benefit) reconciled to statutory rate | The income tax expense (benefit) for the last three years is reconciled to the statutory federal income tax rate as follows (in thousands): Year ended January 31, 2018 2017 2016 Statutory $ 794 $ 1,607 $ 1,587 State taxes (net of federal tax) 341 363 303 Change in valuation allowance 410 (19,831 ) (2,214 ) State rate adjustment (260 ) (548 ) 168 Change in unrecognized tax benefits 6 (1 ) (3 ) Stock Compensation (200 ) — — Tax cuts and jobs act 4,438 — — Expirations of attributes 143 408 229 Other (49 ) (31 ) 48 Income tax expense (benefit) $ 5,623 $ (18,033 ) $ 118 |
Significant components of expense (benefit) | Significant components of the expense (benefit) for income taxes (in thousands) attributed to continuing operations are as follows: Year ended January 31, 2018 2017 2016 Current Federal $ (296 ) $ 24 $ 1 State 98 65 40 (198 ) 89 41 Deferred Federal 5,270 1,519 1,567 State 141 190 724 5,411 1,709 2,291 Change in Valuation Allowance 410 (19,831 ) (2,214 ) 5,821 (18,122 ) 77 Income tax expense (benefit) $ 5,623 $ (18,033 ) $ 118 |
Deferred tax assets and liabilities | Deferred tax assets and liabilities (in thousands) are comprised of the following: Year ended January 31, 2018 2017 Deferred tax assets Accrued vacation and sick leave $ 1,015 $ 1,211 Retirement plans 3,756 6,900 Insurance reserves 451 633 Warranty 242 383 Net operating loss carryforwards 4,722 7,627 Intangibles — — Inventory 1,085 1,418 Other 624 1,005 $ 11,895 $ 19,177 Deferred tax liabilities Tax in excess of book depreciation $ (811 ) $ (1,556 ) Other (66 ) (98 ) $ (877 ) $ (1,654 ) Valuation allowance (925 ) (515 ) Net long term deferred tax asset $ 10,093 $ 17,008 |
Unrecognized tax benefits | The following table summarizes the activity related to our gross unrecognized tax benefits from February 1, 2016 to January 31, 2018 (in thousands): January 31, 2018 2017 Balances as of February 1, $ 29 $ 31 Increases related to prior year tax positions 2 1 Decreases related to prior year tax positions — — Increases related to current year tax positions 16 5 Decreases relating to settlements with taxing authorities — — Decreases related to lapsing of statute of limitations (9 ) (8 ) Balance as of January 31, $ 38 $ 29 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Commitments [Abstract] | |
Minimum future lease payments | Minimum future lease payments (in thousands) for operating leases in effect as of January 31, 2018 , are as follows: Year ending January 31, 2019 $ 4,386 2020 4,219 2021 3,970 2022 4,927 2023 5,040 Thereafter 11,879 Total minimum lease payments $ 34,421 |
Rent expense | Rent expense relating to operating leases was as follows (in thousands): Year ended January 31, 2018 $ 5,644 2017 5,735 2016 5,681 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Contingencies [Abstract] | |
Estimated payments under the self-insurance programs | Estimated payments under the self-insurance programs are as follows (in thousands): Year ending January 31, 2019 $ 300 2020 300 2021 300 2022 300 2023 215 Thereafter — Total $ 1,415 Discount to net present value (40 ) $ 1,375 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Standard Product Warranty Disclosure [Abstract] | |
Warranty claim activity | The following is a summary of the Company’s warranty-claim activity during 2018 and 2017 . January 31, (In thousands) 2018 2017 Beginning balance $ 1,000 $ 1,000 Provision for current year 760 700 Provision for (benefits from) prior year (380 ) (285 ) Costs incurred (455 ) (415 ) Ending balance $ 925 $ 1,000 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results | The Company’s quarterly results for the years ended January 31, 2018 and 2017 , as adjusted, are summarized as follows (in thousands, except per share data): Q1 Q2 Q3 Q4 Year ended January 31, 2018 Net sales $ 23,235 $ 72,636 $ 68,794 $ 24,622 Gross profit 8,427 26,683 24,467 5,894 Net (loss) income*** (2,211 ) 5,028 2,524 (8,550 ) Per common share Net (loss) income* Basic $ (0.15 ) $ 0.33 $ 0.16 $ (0.56 ) Assuming dilution (0.15 ) 0.33 0.16 (0.56 ) Year ended January 31, 2017 Net sales $ 20,827 $ 61,354 $ 67,795 $ 23,441 Gross profit 8,063 23,738 24,311 6,431 Net (loss) income** (3,138 ) 6,885 23,998 (4,985 ) Per common share Net (loss) income* Basic $ (0.21 ) $ 0.46 $ 1.59 $ (0.33 ) Assuming dilution (0.21 ) 0.45 1.57 (0.33 ) ______________________________ * 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. ** For fiscal quarter ended October 31, 2016, the Company released its valuation allowance against the deferred tax assets resulting in a benefit to income taxes of $17,962,000 . *** For fiscal quarter ended January 31, 2018, the Company's tax expense increased by $4,438,000 from the revaluation of deferred tax assets as a result of the reduction in the federal tax rate due to the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017. |
Summary of Business and Signi33
Summary of Business and Significant Accounting Policies (Concentration of Credit risk) (Details) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Concentration Risk [Line Items] | |||
Period of Manufacturing Operations | 68 years | ||
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Foreign sales revenue by percent | 6.30% | 6.30% | 6.70% |
Summary of Business and Signi34
Summary of Business and Significant Accounting Policies (Inventory, net) (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Accounting Policies [Abstract] | ||
Finished goods | $ 13,054 | $ 11,174 |
WIP | 16,627 | 13,486 |
Raw materials | 12,376 | 11,029 |
Inventories, net | $ 42,057 | $ 35,689 |
Summary of Business and Signi35
Summary of Business and Significant Accounting Policies (Property, Plant, and Equipment) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Repair and maintenance | $ 1,518,000 | $ 1,460,000 | $ 1,759,000 |
Depreciation and amortization expense | 5,466,000 | 5,026,000 | 4,757,000 |
Rental income | $ 40,000 | $ 40,000 | $ 51,000 |
Land Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Land Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 25 years | ||
Buildings and building improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Buildings and building improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Machinery and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Machinery and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years |
Summary of Business and Signi36
Summary of Business and Significant Accounting Policies (Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Accounting Policies [Abstract] | ||
Asset retirement obligation beginning of period | $ 590 | $ 581 |
Decrease in obligation | (425) | 0 |
Accretion expense | 5 | 9 |
Asset retirement obligation end of period | $ 170 | $ 590 |
Summary of Business and Signi37
Summary of Business and Significant Accounting Policies (Computation of Basic and Diluted Loss Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |||||||||
Accounting Policies [Abstract] | |||||||||||||||||||
Net (loss) income | $ (8,550) | $ 2,524 | $ 5,028 | $ (2,211) | $ (4,985) | $ 23,998 | $ 6,885 | $ (3,138) | $ (3,209) | $ 22,760 | $ 4,549 | ||||||||
Weighted-average shares — basic | 15,244,000 | 15,067,000 | 14,914,000 | ||||||||||||||||
Dilutive effect of equity incentive plans | 0 | 199,000 | 204,000 | ||||||||||||||||
Weighted-average shares — diluted | 15,244,000 | 15,266,000 | 15,118,000 | ||||||||||||||||
Basic | $ (0.56) | [1] | $ 0.16 | [1] | $ 0.33 | [1] | $ (0.15) | [1] | $ (0.33) | [1] | $ 1.59 | [1] | $ 0.46 | [1] | $ (0.21) | [1] | $ (0.21) | $ 1.51 | $ 0.31 |
Diluted | $ (0.56) | [1] | $ 0.16 | [1] | $ 0.33 | [1] | $ (0.15) | [1] | $ (0.33) | [1] | $ 1.57 | [1] | $ 0.45 | [1] | $ (0.21) | [1] | $ (0.21) | $ 1.49 | $ 0.30 |
Shares of common stock equivalents excluded from computation of diluted net income per share (in shares) | 147,000 | ||||||||||||||||||
[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. |
Summary of Business and Signi38
Summary of Business and Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Accounting Policies [Abstract] | |||
Advertising cost | $ 974 | $ 945 | $ 1,057 |
Prepaid advertising costs | $ 355 | $ 326 |
Summary of Business and Signi39
Summary of Business and Significant Accounting Policies (Product Warranty Expense) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Warranty [Line Items] | |||
Accrued warranty balance | $ 925,000 | $ 1,000,000 | $ 1,000,000 |
Product Warranty Accrual, Current | $ 400,000 | $ 500,000 | |
Minimum [Member] | |||
Warranty [Line Items] | |||
Product warranty period | 10 years | ||
Maximum [Member] | |||
Warranty [Line Items] | |||
Product warranty period | 10 years |
Summary of Business and Signi40
Summary of Business and Significant Accounting Policies (Self-Insurance) (Details) - USD ($) | Jan. 31, 2018 | Jan. 31, 2017 |
Loss Contingencies [Line Items] | ||
Discount rate | 2.00% | 2.00% |
Product and General Liability [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 250,000 | |
Workers Compensation [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | 250,000 | |
Automobile Losses [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 50,000 |
Summary of Business and Signi41
Summary of Business and Significant Accounting Policies (Stock-Based Compensation Plans) (Details) $ in Thousands | 12 Months Ended | ||||
Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2003USD ($) | |
Accounting Policies [Abstract] | |||||
Stock dividend, return percentage (as a percent) | 10.00% | ||||
Stock conversion ratio | 1.5 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stockholders' equity | $ 58,712 | $ 59,354 | $ 33,313 | $ 22,573 | |
Additional Paid-in Capital | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stockholders' equity | 117,465 | 116,976 | 116,633 | 116,348 | $ 122,000 |
Accumulated Deficit | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stockholders' equity | $ (49,648) | $ (46,380) | $ (69,140) | $ (73,690) |
Summary of Business and Signi42
Summary of Business and Significant Accounting Policies (Manufacturing Operations and Shipping Fees) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Accounting Policies [Abstract] | |||
Shipping and delivery costs | $ 19,299 | $ 16,116 | $ 15,799 |
Summary of Business and Signi43
Summary of Business and Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of year | $ (11,394) | ||
Amortization of prior service cost (credit) | 955 | $ 1,328 | $ 2,013 |
Net current period other comprehensive income | 2,135 | 2,936 | 5,904 |
Balance as of end of year | (9,259) | (11,394) | |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance as of beginning of year | (11,394) | (14,330) | |
Other comprehensive income before reclassifications | 1,180 | 1,608 | |
Amortization of prior service cost (credit) | 955 | 1,328 | |
Net current period other comprehensive income | 2,135 | 2,936 | 5,904 |
Balance as of end of year | $ (9,259) | $ (11,394) | $ (14,330) |
New Accounting Pronouncements44
New Accounting Pronouncements (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Excess tax benefit amount for share based compensation | $ 200 | $ 0 | $ 0 |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 16,681 | $ 5,011 |
Less current portion | 4,681 | 68 |
Non-current portion | 12,000 | 4,943 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,059 | 4,914 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 6,622 | $ 97 |
Debt (Long-term Debt Repayments
Debt (Long-term Debt Repayments) (Details) $ in Thousands | Jan. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 4,681 |
2,020 | 6,767 |
2,021 | 767 |
2,022 | 461 |
2,023 | 419 |
Thereafter | $ 3,586 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Aug. 01, 2017USD ($) | Aug. 31, 2017 | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Jul. 01, 2017USD ($) | Jun. 30, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||||||
Revolving credit facility | $ 60,000,000 | $ 50,000,000 | ||||||
Revolving credit facility bears interest increased | 2.00% | |||||||
Interest rate | 4.00% | 5.00% | ||||||
Dividends | $ 2,000,000 | $ 230,000 | ||||||
Purchase agreement nonbinding commitment | $ 7,200,000 | |||||||
Purchase agreement nonbinding commitment down payment | 20.00% | 20.00% | ||||||
Purchase Agreement, Non-binding Commitment, Seller Financed Portion | $ 5,760,000 | |||||||
Purchase Agreement, Non-binding Commitment, Financing Period | 20 years | |||||||
Maximum fixed charge coverage ratio | 1.10 | |||||||
Non-refundable Extension Fee | $ 250,000 | |||||||
Debt Instrument, Covenant, Achieved EBITDA | 10,254,000 | |||||||
Provision to reduce borrowings under the line | $ 8,000,000 | |||||||
Provision to reduce borrowings under the line, period | 30 days | |||||||
Judgments or judicial actions against the borrowers in excess | $ 250,000 | |||||||
Accounts receivable [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving credit facility borrowing base limitation | 85.00% | |||||||
Inventory [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving credit facility borrowing base limitation | 60.00% | |||||||
Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving credit facility | $ 8,000,000 | |||||||
Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving credit facility | $ 14,000,000 | |||||||
Maximum [Member] | Accounts receivable [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving credit facility borrowing base limitation | 85.00% | |||||||
Credit Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Minimum EBITDA | $ 7,400,000 | |||||||
Maximum fixed charge coverage ratio | 1.41 | |||||||
PNC [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving Advances | $ 11,000,000 | $ 14,000,000 | ||||||
Remaining borrowing capacity | $ 15,961,000 | |||||||
PNC [Member] | Revolving Credit Facility [Member] | Amendment To Credit Agreement [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 3,000,000 | |||||||
Line of credit facility, Equipment financing | $ 2,500,000 | |||||||
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% | |||||||
Subsequent Event [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Minimum EBITDA | $ 6,402,000 | $ 3,767,000 |
Retirement Plans (Pension Plans
Retirement Plans (Pension Plans, Narrative) (Details) - USD ($) | 12 Months Ended | |||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Liability for Future Policy Benefits, Life | $ 9,095,000 | $ 9,189,000 | ||
Company contributions | 1,400,000 | 1,400,000 | $ 1,600,000 | |
Benefit payments | 345,000 | 536,000 | $ 591,000 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | $ 9,300,000 | |||
Employee Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of trust assets managed | 70.00% | |||
Company contributions | $ 1,380,000 | 1,400,000 | ||
Accumulated other comprehensive loss net of tax | 5,749,000 | 9,567,000 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | $ 0 | 0 | ||
VIP Retirement Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Benefit of average compensation | 50.00% | |||
Benefit of average compensation period | 5 years | |||
Cash surrender value | $ 3,411,000 | 3,367,000 | ||
Company contributions | 309,000 | 500,000 | ||
Accumulated other comprehensive loss net of tax | 2,863,000 | 2,447,000 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 0 | 0 | ||
Directors Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Company contributions | 36,000 | 36,000 | ||
Accumulated other comprehensive loss net of tax | 0 | 0 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | $ 0 | $ 0 | ||
Debt Securities [Member] | Employee Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Short-term investment funds | 4.00% | 9.00% | ||
Scenario, Forecast [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated contributions to qualified pension plans for 2019 | $ 900,000 | |||
Estimated future contributions to non-qualified plans for 2019 | $ 345,000 | |||
Fixed Income Securities [Member] | Employee Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Percentage of assets held in trust (less than) | 10.00% |
Retirement Plans (Funded Status
Retirement Plans (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Change in Plan Assets | |||
Company contributions | $ 1,400 | $ 1,400 | $ 1,600 |
Employee Plan [Member] | |||
Change in Benefit Obligation | |||
Benefit obligation at beg. of year | 31,212 | 32,659 | |
Service cost | 0 | 0 | |
Interest cost | 1,217 | 1,184 | |
Participant contributions | 0 | 0 | |
Amendments | 0 | 0 | |
Actuarial losses (gains) | 256 | (1,125) | |
Plan settlement | 0 | 0 | |
Benefits paid | (1,758) | (1,506) | |
Benefit obligation at end of year | 30,927 | 31,212 | 32,659 |
Change in Plan Assets | |||
Fair value at beg. of year | 22,911 | 19,848 | |
Actual return on plan assets | 4,726 | 3,169 | |
Company contributions | 1,380 | 1,400 | |
Settlements | 0 | 0 | |
Benefits paid | (1,758) | (1,506) | |
Fair value at end of year | 27,259 | 22,911 | 19,848 |
Unfunded status of the plan | (3,668) | (8,301) | |
Amounts Recognized in Statement of Financial Position | |||
Current liabilities | 0 | 0 | |
Non-current liabilities | (3,668) | (8,301) | |
Accrued benefit cost | (3,668) | (8,301) | |
Amounts Recognized in Statement of Financial Position and Operations | |||
Accrued benefit liability | (3,668) | (8,301) | |
Accumulated other comp. loss (gain) | 5,749 | 9,567 | |
Net amount recognized | 2,081 | 1,266 | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Unrecognized net actuarial loss (gain) | 5,749 | 9,567 | |
Unamortized prior service costs | 0 | 0 | |
Net initial asset recognition | 0 | 0 | |
Net periodic pension expense, included in AOCI | 5,749 | 9,567 | |
VIP Retirement Plan [Member] | |||
Change in Benefit Obligation | |||
Benefit obligation at beg. of year | 8,292 | 8,701 | |
Service cost | 0 | 0 | |
Interest cost | 367 | 357 | |
Participant contributions | 0 | 0 | |
Amendments | 0 | 0 | |
Actuarial losses (gains) | 656 | (266) | |
Plan settlement | 0 | 0 | |
Benefits paid | (309) | (500) | |
Benefit obligation at end of year | 9,006 | 8,292 | 8,701 |
Change in Plan Assets | |||
Fair value at beg. of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 309 | 500 | |
Settlements | 0 | 0 | |
Benefits paid | (309) | (500) | |
Fair value at end of year | 0 | 0 | 0 |
Unfunded status of the plan | (9,006) | (8,292) | |
Amounts Recognized in Statement of Financial Position | |||
Current liabilities | (312) | (278) | |
Non-current liabilities | (8,694) | (8,014) | |
Accrued benefit cost | (9,006) | (8,292) | |
Amounts Recognized in Statement of Financial Position and Operations | |||
Accrued benefit liability | (9,006) | (8,292) | |
Accumulated other comp. loss (gain) | 2,863 | 2,447 | |
Net amount recognized | (6,143) | (5,845) | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Unrecognized net actuarial loss (gain) | 2,863 | 2,447 | |
Unamortized prior service costs | 0 | 0 | |
Net initial asset recognition | 0 | 0 | |
Net periodic pension expense, included in AOCI | 2,863 | 2,447 | |
Directors Plan [Member] | |||
Change in Benefit Obligation | |||
Benefit obligation at beg. of year | 257 | 280 | |
Service cost | 0 | 0 | |
Interest cost | 9 | 10 | |
Participant contributions | 0 | 0 | |
Amendments | 0 | 0 | |
Actuarial losses (gains) | 18 | 3 | |
Plan settlement | 0 | 0 | |
Benefits paid | (36) | (36) | |
Benefit obligation at end of year | 248 | 257 | 280 |
Change in Plan Assets | |||
Fair value at beg. of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 36 | 36 | |
Settlements | 0 | 0 | |
Benefits paid | (36) | (36) | |
Fair value at end of year | 0 | 0 | $ 0 |
Unfunded status of the plan | (248) | (257) | |
Amounts Recognized in Statement of Financial Position | |||
Current liabilities | (34) | (34) | |
Non-current liabilities | (214) | (223) | |
Accrued benefit cost | (248) | (257) | |
Amounts Recognized in Statement of Financial Position and Operations | |||
Accrued benefit liability | (248) | (257) | |
Accumulated other comp. loss (gain) | 0 | 0 | |
Net amount recognized | (248) | (257) | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Unrecognized net actuarial loss (gain) | 0 | 0 | |
Unamortized prior service costs | 0 | 0 | |
Net initial asset recognition | 0 | 0 | |
Net periodic pension expense, included in AOCI | $ 0 | $ 0 |
Retirement Plans (Periodic Pens
Retirement Plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Amortization of prior service cost (credit) | $ 955 | $ 1,328 | $ 2,013 |
Total recognized in other Comprehensive Income | (2,135) | (2,936) | (5,904) |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 9,300 | ||
Employee Plan [Member] | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss (gain) | (3,103) | (3,159) | |
Prior service cost | 0 | 0 | |
Amortization of (loss) gain | (715) | (1,162) | |
Amortization of prior service cost (credit) | 0 | 0 | |
Amortization of initial asset | 0 | 0 | |
Total recognized in other Comprehensive Income | (3,818) | (4,321) | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 0 | 0 | |
Net actuarial loss (gain) | 362 | 715 | |
Net periodic pension cost | 362 | 715 | |
Projected benefit obligation | 30,927 | 31,212 | 32,659 |
Accumulated benefit obligation | 30,927 | 31,212 | |
Fair value of plan assets | 27,259 | 22,911 | 19,848 |
Components of Net Cost | |||
Service cost | 0 | 0 | |
Interest cost | 1,217 | 1,184 | |
Expected return on plan assets | (1,367) | (1,134) | |
Amortization of transition amount | 0 | 0 | |
Recognized (gain) loss due to settlement | 0 | 0 | |
Amortization of prior service cost | 0 | 0 | |
Recognized net actuarial loss | 715 | 1,162 | |
Benefit cost | 565 | $ 1,212 | |
Estimated Future Benefit Payments | |||
FYE 01-31-2019 | 5,215 | ||
FYE 01-31-2020 | 2,415 | ||
FYE 01-31-2021 | 2,077 | ||
FYE 01-31-2022 | 1,897 | ||
FYE 01-31-2023 | 1,895 | ||
FYE 01-31-2024 to 2028 | 9,325 | ||
Total | $ 22,824 | ||
Weighted Average Assumptions to Determine Benefit Obligations at Year-End | |||
Discount rate | 3.75% | 4.25% | |
Weighted Average Assumptions to Determine Net Periodic Pension Cost | |||
Discount rate | 4.25% | 4.00% | |
Expected return on plan assets | 6.50% | 6.50% | |
VIP Retirement Plan [Member] | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss (gain) | $ 656 | $ (266) | |
Prior service cost | 0 | ||
Amortization of (loss) gain | (240) | (310) | |
Amortization of prior service cost (credit) | 0 | 0 | |
Amortization of initial asset | 0 | 0 | |
Total recognized in other Comprehensive Income | 416 | (576) | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 0 | 0 | |
Net actuarial loss (gain) | 330 | 240 | |
Net periodic pension cost | 330 | 240 | |
Projected benefit obligation | 9,006 | 8,292 | 8,701 |
Accumulated benefit obligation | 9,006 | 8,292 | |
Fair value of plan assets | 0 | 0 | 0 |
Components of Net Cost | |||
Service cost | 0 | 0 | |
Interest cost | 367 | 357 | |
Expected return on plan assets | 0 | 0 | |
Amortization of transition amount | 0 | 0 | |
Recognized (gain) loss due to settlement | 0 | 0 | |
Amortization of prior service cost | 0 | 0 | |
Recognized net actuarial loss | 240 | 310 | |
Benefit cost | 607 | $ 667 | |
Estimated Future Benefit Payments | |||
FYE 01-31-2019 | 312 | ||
FYE 01-31-2020 | 324 | ||
FYE 01-31-2021 | 316 | ||
FYE 01-31-2022 | 352 | ||
FYE 01-31-2023 | 366 | ||
FYE 01-31-2024 to 2028 | 2,191 | ||
Total | $ 3,861 | ||
Weighted Average Assumptions to Determine Benefit Obligations at Year-End | |||
Discount rate | 4.00% | 4.50% | |
Weighted Average Assumptions to Determine Net Periodic Pension Cost | |||
Discount rate | 4.25% | 4.25% | |
Directors Plan [Member] | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss (gain) | $ 0 | $ 3 | |
Prior service cost | 0 | 0 | |
Amortization of (loss) gain | 144 | ||
Amortization of prior service cost (credit) | 0 | 0 | |
Amortization of initial asset | 0 | 0 | |
Total recognized in other Comprehensive Income | 0 | 147 | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income Net Prior Service Cost (Credit), after Tax | 0 | 0 | |
Net actuarial loss (gain) | 0 | 0 | |
Net periodic pension cost | 0 | 0 | |
Projected benefit obligation | 248 | 257 | 280 |
Accumulated benefit obligation | 248 | 257 | |
Fair value of plan assets | 0 | 0 | $ 0 |
Components of Net Cost | |||
Service cost | 0 | 0 | |
Interest cost | 9 | 10 | |
Expected return on plan assets | 0 | 0 | |
Amortization of transition amount | 0 | 0 | |
Recognized (gain) loss due to settlement | 0 | 0 | |
Recognized net actuarial loss | 0 | (144) | |
Benefit cost | 9 | $ (134) | |
Estimated Future Benefit Payments | |||
FYE 01-31-2019 | 34 | ||
FYE 01-31-2020 | 32 | ||
FYE 01-31-2021 | 31 | ||
FYE 01-31-2022 | 29 | ||
FYE 01-31-2023 | 27 | ||
FYE 01-31-2024 to 2028 | 70 | ||
Total | $ 223 | ||
Weighted Average Assumptions to Determine Benefit Obligations at Year-End | |||
Discount rate | 3.75% | 4.25% | |
Weighted Average Assumptions to Determine Net Periodic Pension Cost | |||
Discount rate | 4.25% | 4.00% |
Retirement Plans (Fair Value of
Retirement Plans (Fair Value of Employee Plan Assets) (Details) - Employee Plan [Member] - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 27,259 | $ 22,911 | $ 19,848 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,701 | 7,379 | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,701 | 7,379 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17,558 | 15,532 | |
Fair Value, Inputs, Level 2 [Member] | PNC Government Money Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,030 | 856 | |
Fair Value, Inputs, Level 2 [Member] | Vanguard Total Bond [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1,144 | |
Fair Value, Inputs, Level 2 [Member] | Ishares Credit Bond ETF Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 340 | 172 | |
Fair Value, Inputs, Level 2 [Member] | Vanguard INTM Term Investment Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 702 | 346 | |
Fair Value, Inputs, Level 2 [Member] | Vanguard LT Investment [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,973 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Ishares Russell 2000 [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,047 | 1,771 | |
Fair Value, Inputs, Level 2 [Member] | Ishares MID-CAP Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,129 | 1,817 | |
Fair Value, Inputs, Level 2 [Member] | Ishares Emerging Markets Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,338 | 1,110 | |
Fair Value, Inputs, Level 2 [Member] | Ishares MCSI RAFE Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,838 | 1,553 | |
Fair Value, Inputs, Level 2 [Member] | Ishares S&P Index [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,825 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Vanguard REIT Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 913 | |
Fair Value, Inputs, Level 2 [Member] | Blackrock S&P Index [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 4,643 | |
Fair Value, Inputs, Level 2 [Member] | Managed Investment Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,336 | $ 1,207 |
Retirement Plans (401(k) Retire
Retirement Plans (401(k) Retirement Plan) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions | $ 1,400,000 | $ 1,400,000 | $ 1,600,000 |
401(k) Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Virco stock held in plan | 564,375 | 587,084 | |
Company contributions | $ 44,000 | ||
Minimum [Member] | 401(k) Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Participant deferral percentage allowance | 1.00% | ||
Maximum [Member] | 401(k) Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Participant deferral percentage allowance | 75.00% |
Retirement Plans (Life Insuranc
Retirement Plans (Life Insurance) (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | ||
Liability for Future Policy Benefits, Life | $ 9,095,000 | $ 9,189,000 |
Life Insurance, Corporate or Bank Owned, Amount | 2,450,000 | |
Liability beginning of year | 2,184,000 | 2,166,000 |
Accretion expense | 54,000 | 68,000 |
Present value of death benefits paid | (150,000) | (50,000) |
Liability end of year | 2,088,000 | 2,184,000 |
Cash surrender value | 2,092,000 | 2,231,000 |
Death benefits received from life insurance policy | $ 4,486,000 | $ 4,748,000 |
Stock-Based Compensation and 54
Stock-Based Compensation and Stockholders' Rights (Textual) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate fair value of stock awards vested during the period | $ 1,260 | $ 902 | $ 593 |
Restricted Stock [Member] | 2007 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stocks granted during period | 0 | ||
Restricted Stock or Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stocks granted during period | 504,404 | 87,284 | 75,174 |
Restricted Stock or Stock Units [Member] | 2011 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock available for future issuance | 303,832 | ||
Restricted stocks granted during period | 504,404 | ||
Awards vested during the year | 259,284 | ||
Restricted Stock or Stock Units [Member] | 2007 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock available for future issuance | 1,000,000 |
Stock-Based Compensation and 55
Stock-Based Compensation and Stockholders' Rights (Restricted Stock Units) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Weighted- average fair value of restricted stock units | |||
Aggregate fair value of stock awards vested during the period | $ 1,260,000 | $ 902,000 | $ 593,000 |
Restricted Stock or Stock Units [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 504,404 | 87,284 | 75,174 |
Expense for 12 months ended | $ 830,000 | $ 609,000 | $ 493,000 |
Unrecognized compensation at cost | $ 2,332,000 | ||
Restricted Stock Units | |||
Outstanding at beginning of year | 491,284 | 657,174 | 812,626 |
Granted | 504,404 | 87,284 | 75,174 |
Vested | (259,284) | (223,174) | (212,626) |
Forfeited | (44,000) | (30,000) | (18,000) |
Outstanding at end of year | 692,404 | 491,284 | 657,174 |
Weighted- average fair value of restricted stock units | |||
Outstanding at beginning of year | $ 2.46 | $ 2.34 | $ 2.24 |
Granted | 4.95 | 3.89 | 2.76 |
Vested | 4.86 | 4.04 | 2.79 |
Forfeited | 4.42 | 2.61 | 2.74 |
Outstanding at end of year | $ 4.25 | $ 2.46 | $ 2.34 |
2011 Plan [Member] | 40,404 Restricted Stock Units, issued 6/20/2017, vesting over 1 year [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 40,404 | ||
Maximum term of stock options | 1 year | ||
Expense for 12 months ended | $ 133,000 | $ 0 | $ 0 |
Unrecognized compensation at cost | $ 67,000 | ||
Restricted Stock Units | |||
Granted | 40,404 | ||
2011 Plan [Member] | 464,000 Restricted Stock Units, issued on 6/20/2017 vesting over 5 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 464,000 | ||
Maximum term of stock options | 5 years | ||
Expense for 12 months ended | $ 292,000 | $ 0 | 0 |
Unrecognized compensation at cost | $ 1,901,000 | ||
Restricted Stock Units | |||
Granted | 464,000 | ||
2011 Plan [Member] | 51,284 Restricted Stock Units, issued 6/21/2016, vesting over 1 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 51,284 | ||
Maximum term of stock options | 1 year | ||
Expense for 12 months ended | $ 67,000 | $ 133,000 | 0 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 51,284 | ||
2011 Plan [Member] | 36,000 Restricted Stock Units, issued 6/21/2016, vesting over 3 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 36,000 | ||
Maximum term of stock options | 3 years | ||
Expense for 12 months ended | $ 16,000 | $ 32,000 | 0 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 36,000 | ||
2011 Plan [Member] | 48,000 Restricted Stock Units, issued 6/22/2015, vesting over 4 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 48,000 | ||
Maximum term of stock options | 4 years | ||
Expense for 12 months ended | $ 33,000 | $ 32,000 | 22,000 |
Unrecognized compensation at cost | $ 44,000 | ||
Restricted Stock Units | |||
Granted | 48,000 | ||
2011 Plan [Member] | 27,124 Restricted Stock Units, issued 6/22/2015, vesting over 1 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 27,174 | ||
Maximum term of stock options | 1 year | ||
Expense for 12 months ended | $ 0 | $ 25,000 | 50,000 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 27,174 | ||
2011 Plan [Member] | 490,000 units of restricted stock issued on 6/24/2014 vesting over 5 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 490,000 | ||
Maximum term of stock options | 5 years | ||
Expense for 12 months ended | $ 240,000 | $ 240,000 | 246,000 |
Unrecognized compensation at cost | $ 320,000 | ||
Restricted Stock Units | |||
Granted | 490,000 | ||
2011 Plan [Member] | 28,626 Restricted Stock Units, issued 6/24/2014, vesting over 5 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 28,626 | ||
Maximum term of stock options | 5 years | ||
Expense for 12 months ended | $ 0 | $ 0 | 25,000 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 28,626 | ||
2011 Plan [Member] | 520,000 Restricted Stock Units, issued 6/19/2012, vesting over 5 years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 520,000 | ||
Maximum term of stock options | 5 years | ||
Expense for 12 months ended | $ 49,000 | $ 147,000 | $ 150,000 |
Unrecognized compensation at cost | $ 0 | ||
Restricted Stock Units | |||
Granted | 520,000 | ||
2011 Plan [Member] | Restricted Stock or Stock Units [Member] | |||
Summary of restricted stock and stock unit awards | |||
Granted | 504,404 | ||
Restricted Stock Units | |||
Granted | 504,404 | ||
2007 Plan [Member] | 382,500 Restricted Stock Units, issued 6/16/2009, Vesting over Five Years [Member] | |||
Summary of restricted stock and stock unit awards | |||
Maximum term of stock options | 5 years |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory | $ 794 | $ 1,607 | $ 1,587 |
State taxes (net of federal tax) | 341 | 363 | 303 |
Change in valuation allowance | 410 | (19,831) | (2,214) |
State rate adjustment | (260) | (548) | 168 |
Change in unrecognized tax benefits | 6 | (1) | (3) |
Stock Compensation | (200) | 0 | 0 |
Tax cuts and jobs act | 4,438 | 0 | 0 |
Expirations of attributes | 143 | 408 | 229 |
Other | (49) | (31) | 48 |
Income tax expense (benefit) | $ 5,623 | $ (18,033) | $ 118 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Current | |||
Federal | $ (296) | $ 24 | $ 1 |
State | 98 | 65 | 40 |
Current income tax benefit (expense) | (198) | 89 | 41 |
Deferred | |||
Federal | 5,270 | 1,519 | 1,567 |
State | 141 | 190 | 724 |
Total deferred income taxes | 5,411 | 1,709 | 2,291 |
Change in Valuation Allowance | 410 | (19,831) | (2,214) |
Deferred income taxes | 5,821 | (18,122) | 77 |
Income tax expense (benefit) | $ 5,623 | $ (18,033) | $ 118 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jan. 31, 2017 | Oct. 31, 2016 |
Deferred tax assets | |||
Accrued vacation and sick leave | $ 1,015 | $ 1,211 | |
Retirement plans | 3,756 | 6,900 | |
Insurance reserves | 451 | 633 | |
Warranty | 242 | 383 | |
Net operating loss carryforwards | 4,722 | 7,627 | |
Intangibles | 0 | 0 | |
Inventory | 1,085 | 1,418 | |
Other | 624 | 1,005 | |
Total deferred tax assets | 11,895 | 19,177 | |
Deferred tax liabilities | |||
Tax in excess of book depreciation | (811) | (1,556) | |
Other | (66) | (98) | |
Total deferred tax liabilities | (877) | (1,654) | |
Valuation allowance | (925) | (515) | $ (17,962) |
Net long term deferred tax asset | $ 10,093 | $ 17,008 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning Balance, unrecognized tax benefits | $ 29 | $ 31 |
Increases related to prior year tax positions | 2 | 1 |
Decreases related to prior year tax positions | 0 | 0 |
Increases related to current year tax positions | 16 | 5 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | 0 |
Decreases related to lapsing of statute of limitations | (9) | (8) |
Ending Balance, unrecognized tax benefits | $ 38 | $ 29 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | Dec. 22, 2017 | Jan. 31, 2018 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | Oct. 31, 2016 |
Income Tax Contingency [Line Items] | ||||||
Unrecognized tax benefits | $ 38,000 | $ 38,000 | $ 29,000 | $ 31,000 | ||
Unrecognized tax benefits that would favorably impact effective tax rate | 30,000 | 30,000 | ||||
Liability for interest and penalties related to unrecognized tax benefits | 5,000 | 5,000 | 4,000 | |||
Unrecognized tax benefit amount that is reasonably possible to decrease | 4,000 | 4,000 | ||||
Valuation allowance | 925,000 | 925,000 | 515,000 | $ 17,962,000 | ||
Federal net operating loss carryforward | 13,458,000 | 13,458,000 | ||||
State net operating loss carryforward | 30,979,000 | 30,979,000 | ||||
Excess tax benefit amount for share based compensation | 200,000 | $ 0 | $ 0 | |||
TCJA, Change in tax rate, income tax expense (benefit) | $ 4,438,000 | $ 4,438,000 | ||||
Accounting Standards update 2016-09 [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Excess tax benefit amount for share based compensation | $ 172,000 |
Commitments (Lease Terms) (Deta
Commitments (Lease Terms) (Details) - USD ($) | Nov. 14, 2017 | Aug. 01, 2017 | Aug. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 |
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Purchase of manufacturing facility | $ 7,200,000 | $ 7,200,000 | $ 0 | $ 0 | ||
Purchase agreement nonbinding commitment down payment | 20.00% | 20.00% | ||||
Balance remaining on property after down payment | $ 5,760,000 | |||||
Period to pay off balance of property | 20 years | |||||
Interest rate on property balance payoff | 4.00% | |||||
Lease length | 62 months | 5 years | ||||
Manufacturing and Distribution Facility in Torrance, CA [Member] | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Operating lease period | 5 years | |||||
Minimum [Member] | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Monthly base rent | $ 396,890 | |||||
Maximum [Member] | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Monthly base rent | $ 446,703.19 |
Commitments (Minimum Future Lea
Commitments (Minimum Future Lease Payments) (Details) $ in Thousands | Jan. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due | |
Operating leases payments due 2019 | $ 4,386 |
Operating leases payments due 2020 | 4,219 |
Operating leases payments due 2021 | 3,970 |
Operating leases payments due 2022 | 4,927 |
Operating leases payments due 2023 | 5,040 |
Operating leases payments due Thereafter | 11,879 |
Total | $ 34,421 |
Commitments (Rent Expense) (Det
Commitments (Rent Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Commitments [Abstract] | |||
Rent expense | $ 5,644 | $ 5,735 | $ 5,681 |
Commitments (Purchase Commitmen
Commitments (Purchase Commitments) (Details) | 12 Months Ended |
Jan. 31, 2018USD ($) | |
Raw Materials [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitment | $ 12,646,000 |
Contingencies (Details Textual)
Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Liability retention losses | $ 30,000,000 | |
Expected future losses | $ 1,375,000 | $ 1,650,000 |
Estimated payout period | 5 years | |
Discount rate | 2.00% | 2.00% |
Product and General Liability [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 250,000 | |
Workers Compensation [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | 250,000 | |
Automobile Losses [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 50,000 |
Contingencies (Minimum Self Ins
Contingencies (Minimum Self Insurance Payments) (Details) $ in Thousands | Jan. 31, 2018USD ($) |
Self Insurance, Future Estimated Payments Due | |
Estimated self insurance payments due in 2019 | $ 300 |
Estimated self insurance payments due in 2020 | 300 |
Estimated self insurance payments due in 2021 | 300 |
Estimated self insurance payments due in 2022 | 300 |
Estimated self insurance payments due in 2023 | 215 |
Estimated self insurance payments due thereafter | 0 |
Estimated self insurance payments, gross | 1,415 |
Discount to net present value | (40) |
Estimated self insurance payments, net | $ 1,375 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Warranty claim activity | ||
Beginning accrued warranty balance | $ 1,000 | $ 1,000 |
Provision | 760 | 700 |
Provision for (benefits from) prior year | (380) | (285) |
Costs incurred | (455) | (415) |
Ending accrued warranty balance | $ 925 | $ 1,000 |
Minimum [Member] | ||
Warranty [Line Items] | ||
Product warranty period | 10 years | |
Maximum [Member] | ||
Warranty [Line Items] | ||
Product warranty period | 10 years |
Quarterly Results (Unaudited)68
Quarterly Results (Unaudited) (Details) - USD ($) | Dec. 22, 2017 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Net sales | $ 24,622,000 | $ 68,794,000 | $ 72,636,000 | $ 23,235,000 | $ 23,441,000 | $ 67,795,000 | $ 61,354,000 | $ 20,827,000 | $ 189,287,000 | $ 173,417,000 | $ 168,595,000 | |||||||||
Gross profit | 5,894,000 | 24,467,000 | 26,683,000 | 8,427,000 | 6,431,000 | 24,311,000 | 23,738,000 | 8,063,000 | 65,471,000 | 62,543,000 | 59,610,000 | |||||||||
Net (loss) income | $ (8,550,000) | $ 2,524,000 | $ 5,028,000 | $ (2,211,000) | $ (4,985,000) | $ 23,998,000 | $ 6,885,000 | $ (3,138,000) | $ (3,209,000) | $ 22,760,000 | $ 4,549,000 | |||||||||
Per common share | ||||||||||||||||||||
Basic (dollar per share) | $ (0.56) | [1] | $ 0.16 | [1] | $ 0.33 | [1] | $ (0.15) | [1] | $ (0.33) | [1] | $ 1.59 | [1] | $ 0.46 | [1] | $ (0.21) | [1] | $ (0.21) | $ 1.51 | $ 0.31 | |
Assuming dilution (dollar per share) | $ (0.56) | [1] | $ 0.16 | [1] | $ 0.33 | [1] | $ (0.15) | [1] | $ (0.33) | [1] | $ 1.57 | [1] | $ 0.45 | [1] | $ (0.21) | [1] | $ (0.21) | $ 1.49 | $ 0.30 | |
Valuation allowance | $ 925,000 | $ 515,000 | $ 17,962,000 | $ 925,000 | $ 515,000 | |||||||||||||||
TCJA, Change in tax rate, income tax expense (benefit) | $ 4,438,000 | $ 4,438,000 | ||||||||||||||||||
[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. |
Schedule II - Valuation and Q69
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Beginning Balance | $ 200 | $ 200 | $ 200 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 55 | 110 | 141 |
Valuation Allowances and Reserves, Deductions from Reserves | 55 | 110 | 141 |
Valuation Allowances and Reserves, Ending Balance | 200 | 200 | 200 |
Warranty reserve | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Beginning Balance | 1,000 | 1,000 | 950 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 380 | 415 | 375 |
Valuation Allowances and Reserves, Deductions from Reserves | 455 | 415 | 325 |
Valuation Allowances and Reserves, Ending Balance | 925 | 1,000 | 1,000 |
Product, general, workers’ compensation and automobile liability reserves | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Beginning Balance | 1,650 | 2,050 | 2,130 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 1,101 | 777 | 975 |
Valuation Allowances and Reserves, Deductions from Reserves | 1,404 | 1,177 | 1,055 |
Valuation Allowances and Reserves, Ending Balance | 1,347 | 1,650 | 2,050 |
Deferred tax valuation allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation Allowances and Reserves, Beginning Balance | 515 | 21,906 | 26,399 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 410 | 0 | 0 |
Valuation Allowances and Reserves, Deductions from Reserves | 0 | 21,391 | 4,493 |
Valuation Allowances and Reserves, Ending Balance | $ 925 | $ 515 | $ 21,906 |