Virco Mfg. (VIRC) 10-Q 13 Sep 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 31, 2019	Sep. 12, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	VIRCO MFG CORPORATION
Entity Central Index Key	0000751365
Document Type	10-Q
Document Period End Date	Jul. 31, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--01-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		15,713,549
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Current Reporting Status	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2019	Jan. 31, 2019	Jul. 31, 2018
Current assets:
Cash	$ 877	$ 738	$ 1,109
Trade accounts receivables, net	41,105	13,253	44,109
Other receivables	397	40	161
Income tax receivable	340	175	175
Inventories	59,017	47,289	60,296
Prepaid expenses and other current assets	2,359	1,616	2,117
Total current assets	104,095	63,111	107,967
Property, plant and equipment:
Land	3,731	3,731	3,731
Land improvements	688	688	688
Buildings and building improvements	51,192	51,176	51,176
Machinery and equipment	109,540	108,253	104,761
Leasehold improvements	970	830	820
Total property, plant and equipment	166,121	164,678	161,176
Less accumulated depreciation and amortization	125,250	122,758	119,792
Net property, plant and equipment	40,871	41,920	41,384
Operating lease right-of-use assets	22,924	0	0
Deferred tax assets, net	7,816	9,598	9,973
Other assets, net	8,256	8,484	8,491
Total assets	183,962	123,113	167,815
Current liabilities:
Accounts payable	18,634	17,760	23,072
Accrued compensation and employee benefits	5,322	4,568	5,353
Current portion of long-term debt	35,457	5,504	36,894
Current portion operating lease liability	3,275	0	0
Other accrued liabilities	6,871	4,293	8,583
Total current liabilities	69,559	32,125	73,902
Non-current liabilities:
Accrued self-insurance retention	1,686	1,190	1,936
Accrued pension expenses	13,951	14,487	16,544
Income tax payable	55	45	45
Long-term debt, less current portion	16,291	15,910	14,139
Operating lease liability, less current portion	21,598	0	0
Other long-term liabilities	557	2,329	2,274
Total non-current liabilities	54,138	33,961	34,938
Commitments and contingencies (Notes 6, 7 and 14)
Preferred stock:
Authorized 3,000,000 shares, $0.01 par value; none issued or outstanding	0	0	0
Common stock:
Authorized 25,000,000 shares, $0.01 par value; issued and outstanding 15,713,549 shares at 7/31/2019 and 15,541,956 at 1/31/2019 and 7/31/2018	157	155	155
Additional paid-in capital	118,282	118,106	117,636
Accumulated deficit	(49,392)	(52,192)	(48,208)
Accumulated other comprehensive loss	(8,782)	(9,042)	(10,608)
Total stockholders’ equity	60,265	57,027	58,975
Total liabilities and stockholders’ equity	$ 183,962	$ 123,113	$ 167,815

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2019	Jan. 31, 2019	Jul. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized (shares)	3,000,000	3,000,000	3,000,000
Preferred stock, shares issued (shares)	0	0	0
Preferred stock, shares outstanding (shares)	0	0	0
Common stock, par value (usd per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	25,000,000	25,000,000	25,000,000
Common stock, shares issued (shares)	15,713,549	15,541,956	15,541,956
Common stock, shares outstanding (shares)	15,713,549	15,541,956	15,541,956

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Income Statement [Abstract]
Net sales	$ 70,359	$ 74,802	$ 97,252	$ 97,371
Costs of goods sold	41,620	47,670	59,429	62,554
Gross profit	28,739	27,132	37,823	34,817
Selling, general and administrative expenses	18,557	18,277	31,238	30,431
Gain on sale of property, plant & equipment	3	0	3	(1)
Operating Income	10,179	8,855	6,582	4,387
Pension expense	188	440	376	560
Interest expense	907	822	1,607	1,268
Income (loss) before income taxes	9,084	7,593	4,599	2,559
Income tax (benefit) expense	3,217	2,118	1,799	656
Net income (loss)	$ 5,867	$ 5,475	$ 2,800	$ 1,903
Net income (loss) per common share:
Basic (usd per share)	$ 0.38	$ 0.36	$ 0.18	$ 0.12
Diluted (usd per share)	$ 0.38	$ 0.35	$ 0.18	$ 0.12
Weighted average shares outstanding:
Basic (shares)	15,561	15,392	15,524	15,355
Diluted (shares)	15,568	15,435	15,529	15,395

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) Unaudited - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 5,867	$ 5,475	$ 2,800	$ 1,903
Other comprehensive income:
Pension adjustments	130	(1,476)	260	(1,349)
Comprehensive income (loss)	$ 5,997	$ 3,999	$ 3,060	$ 554

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) Unaudited (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Statement of Comprehensive Income [Abstract]
Pension adjustments, tax	$ 45	$ (522)	$ 91	$ (477)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows Unaudited - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Operating activities
Net income (loss)	$ 2,800	$ 1,903
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	2,916	2,825
Non-cash rent expense	173	0
Provision for doubtful accounts	35	35
Loss (gain) on sale of property, plant and equipment	3	(1)
Deferred income taxes	1,782	120
Stock-based compensation	423	438
Defined pension plan settlement	0	319
Amortization of net actuarial loss for pension plans	352	345
Changes in operating assets and liabilities:
Trade accounts receivable	(27,887)	(32,759)
Other receivables	(357)	(132)
Inventories	(11,728)	(18,239)
Income taxes	(155)	(3)
Prepaid expenses and other current assets	(515)	(696)
Accounts payable and accrued liabilities	4,516	14,604
Net cash used in operating activities	(27,642)	(31,241)
Investing activities:
Capital expenditures	(2,309)	(1,686)
Proceeds from sale of property, plant and equipment	0	3
Net cash used in investing activities	(2,309)	(1,683)
Financing activities:
Proceeds from long-term debt	30,911	51,033
Repayment of long-term debt	(577)	(16,681)
Payment on deferred financing costs	0	(124)
Tax withholding payments on share-based compensation	(244)	(265)
Cash dividends paid	0	(464)
Net cash provided by financing activities	30,090	33,499
Net increase in cash	139	575
Cash at beginning of year	738	534
Cash at end of year	$ 877	$ 1,109

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Changes in Equity and Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive income
Beginning balance (shares) at Jan. 31, 2018		15,357,457
Beginning balance at Jan. 31, 2018	$ 58,712	$ 154	$ 117,465	$ (49,648)	$ (9,259)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	1,903			1,903
Cash dividends	(463)			(463)
Pension adjustments, net of tax effect	(1,349)				(1,349)
Shares vested and others (shares)		184,499
Shares vested and others	(266)	$ 1	(267)
Stock compensation expense	$ 438		438
Ending balance (shares) at Jul. 31, 2018	15,541,956	15,541,956
Ending balance at Jul. 31, 2018	$ 58,975	$ 155	117,636	(48,208)	(10,608)
Beginning balance (shares) at Apr. 30, 2018		15,357,457
Beginning balance at Apr. 30, 2018	55,264	$ 154	117,693	(53,451)	(9,132)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	5,475			5,475
Cash dividends	(232)			(232)
Pension adjustments, net of tax effect	(1,476)				(1,476)
Shares vested and others (shares)		184,499
Shares vested and others	(266)	$ 1	(267)
Stock compensation expense	$ 210		210
Ending balance (shares) at Jul. 31, 2018	15,541,956	15,541,956
Ending balance at Jul. 31, 2018	$ 58,975	$ 155	117,636	(48,208)	(10,608)
Beginning balance (shares) at Jan. 31, 2019	15,541,956	15,541,956
Beginning balance at Jan. 31, 2019	$ 57,027	$ 155	118,106	(52,192)	(9,042)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	2,800			2,800
Cash dividends	0			0
Pension adjustments, net of tax effect	260				260
Shares vested and others (shares)		171,593
Shares vested and others	(245)	$ 2	(247)
Stock compensation expense	$ 423		423
Ending balance (shares) at Jul. 31, 2019	15,713,549	15,713,549
Ending balance at Jul. 31, 2019	$ 60,265	$ 157	118,282	(49,392)	(8,782)
Beginning balance (shares) at Apr. 30, 2019		15,541,956
Beginning balance at Apr. 30, 2019	54,276	$ 155	118,292	(55,259)	(8,912)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	5,867			5,867
Cash dividends	0			0
Pension adjustments, net of tax effect	130				130
Shares vested and others (shares)		171,593
Shares vested and others	(245)	$ 2	(247)
Stock compensation expense	$ 237		237
Ending balance (shares) at Jul. 31, 2019	15,713,549	15,713,549
Ending balance at Jul. 31, 2019	$ 60,265	$ 157	$ 118,282	$ (49,392)	$ (8,782)

Unaudited Consolidated Statem_2

Unaudited Consolidated Statements of Changes in Equity and Accumulated Other Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Statement of Stockholders' Equity [Abstract]
Pension adjustments, tax	$ 45	$ (522)	$ 91	$ (477)

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2019 (“Form 10-K”). In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and six months ended July 31, 2019 , are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2020 . The balance sheet at January 31, 2019 , has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. All references to the “Company” refer to Virco Mfg. Corporation and its subsidiaries.

Seasonality

Seasonality	6 Months Ended
	Jul. 31, 2019
Seasonality [Abstract]
Seasonality	Seasonality The market for educational furniture is marked by extreme seasonality, with approximately 50% of the Company’s total sales typically occurring from June to August each year, the Company’s peak season. Hence, the Company typically builds and carries significant amounts of inventory during and in anticipation of this peak summer season to facilitate the rapid delivery requirements of customers in the educational market. This requires a large up-front investment in inventory, labor, storage and related costs as inventory is built in anticipation of peak sales during the summer months. As the capital required for this build-up generally exceeds cash available from operations, the Company has generally relied on third-party bank financing to meet cash flow requirements during the build-up period immediately preceding the peak season. In addition, the Company typically is faced with a large balance of accounts receivable during the peak season. This occurs for two primary reasons. First, accounts receivable balances typically increase during the peak season as shipments of products increase. Second, many customers during this period are educational institutions and government entities, which tend to pay accounts receivable slower than commercial customers. The Company’s working capital requirements during and in anticipation of the peak summer season require management to make estimates and judgments that affect assets, liabilities, revenues and expenses, and related contingent assets and liabilities. On an ongoing basis, management evaluates its estimates, including those related to market demand, labor costs and stocking inventory.

New Accounting Standards

New Accounting Standards	6 Months Ended
	Jul. 31, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards	New Accounting Pronouncements Recently Adopted Accounting Updates The Company adopted Accounting Standards Codification (“ASC”) 842 - Leases , as of February 1, 2019, using transition relief to the modified retrospective approach. The transition relief to the modified retrospective approach allows the recording of existing leases at adoption and recognizing a cumulative-effect adjustment to the opening balance of retained earnings on the adoption date. As a result, the Company did not restate comparative periods in transition to ASC 842 and instead reported comparative periods under ASC 840 - Leases . In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. Further, the Company did not elect the practical expedient to use hindsight in determining the lease term and in assessing impairment of right-of-use (“ROU”) assets. The Company has elected to account for leases with an original term of 12 months or less that do not contain a purchase option as short-term leases. Adoption of the new standard resulted in the recording of ROU assets and lease liabilities of approximately $23.9 million and $25.6 million respectively, as of February 1, 2019. The difference between the ROU assets and lease liabilities was due to previous deferred rent balances that were removed and offset against the ROU asset under ASC 842. The adoption of this standard did not materially impact our interim unaudited consolidated statement of operations, shareholders’ equity or cash flows. See Note 6 for additional disclosures. Leases The Company determines if an arrangement is a lease at inception. Operating leases in which the Company is the lessee are included in operating lease ROU assets, other current liabilities, and operating lease liabilities in the interim unaudited condensed consolidated balance sheet. The Company does not have any finance leases, as a lessee, and no long-term leases for which it is the lessor. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the reasonably certain lease term. As most of the Company’s leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and reduced by lease incentives, such as tenant improvement allowances. The Company’s lease terms include options to extend or terminate the lease only when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has elected the practical expedient to account for non-lease components and the lease components to which they relate, as a single lease component for the following asset classes: (i) Buildings, (ii) Equipment, and (iii) Automobiles. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock compensation ( Topic 718 ) which simplifies several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Some of the areas for simplification apply only to nonpublic entities. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers . The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. The Company adopted this ASU effective February 1, 2019. The adoption of the standard did not materially impact the Condensed Consolidated Statements of Operations, Comprehensive Income or Cash Flows and Statement of Stockholders' Equity and Comprehensive Income (Loss). Recently Issued Accounting Updates In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the incurred loss impairment methodology for measuring and recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This amendment is effective for fiscal years beginning after December 15, 2019. The Company does not believe there will be a material impact to the financial statements as a result of adopting this ASU. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement ( Topic 820 ) which modifies the disclosure requirements of fair value measurements in Topic 820, Fair Value Measurement . For public companies the ASU removes disclosure requirements for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation process for Level 3 fair value measurements. The ASU modifies the disclosure requirements for investments in certain entities that calculate net asset value and clarifies that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The ASU adds the disclosure requirement for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2019 including interim periods within that fiscal year. Early adoption is permitted. The Company does not believe there will be a material impact to the financial statements as a result of adopting this ASU. Other recently issued accounting updates are not expected to have a material impact on the Company’s consolidated financial statements.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jul. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Adoption of ASC Topic 606, “Revenues from Contracts with Customers” On February 1, 2018, the Company adopted ASC Topic 606 with no significant impact to its financial position or results of operations, using the modified retrospective method. Results for reporting periods beginning after February 1, 2018 are presented under ASC Topic 606. The Company had no adjustment to opening retained earnings as of February 1, 2018 as a result of adopting ASC Topic 606. The adoption of the standard did not materially impact the Condensed Consolidated Statements of Operations and Comprehensive Income or Cash Flows. Revenue Recognition The Company manufactures, markets and distributes a wide variety of school and office furniture to wholesalers, distributors, educational institutions and governmental entities. Revenue is recorded for promised goods or services when control is transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company's sales generally involve a single performance obligation to deliver goods pursuant to customer purchase orders. Prices for our products are based on published price lists and customer agreements. The Company has determined that the performance obligations are satisfied at a point in time when the Company completes delivery per the customer contract. The majority of sales are free on board ("FOB") destination where the destination is specified per the customer contract and may include delivering the furniture into the classroom, school site or warehouse. Sales of furniture that are sold FOB factory are typically made to resellers of our product who in turn provide logistics to the ultimate customer. Once a product has been delivered per the shipping terms, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the asset. The Company considers control to have transferred upon shipment or delivery in accordance with shipping terms because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. The Company offers sales incentives and discounts through various regional and national programs to our customers. These programs include product rebates, product returns allowances and trade promotions. Variable consideration for these programs is estimated in the transaction price at contract inception based on current sales levels and historical experience using the expected value method, subject to constraint. The Company generates revenue primarily by manufacturing and distributing products through resellers and direct-to-customers. Control transfers to both resellers and direct customers at a point in time when the delivery process is complete as determined by the corresponding shipping terms. Therefore, we do not consider them to be meaningfully different revenue streams given similarities in the nature of the products, performance obligation and distribution processes. Sales are predominately in the United States and to a similar class of customer. We do not manage or evaluate the business based on product line or any other discernable category. For product produced by and sourced from third parties, management has determined that it is the principal in all cases, since it (i) bears primary responsibility for fulfilling the promise to the customer; (ii) bears inventory risk before and/or after the good or service is transferred to the customer; and (iii) has discretion in establishing the price for the sale of good or service to the customer.

Inventories

Inventories	6 Months Ended
	Jul. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are valued at the lower of cost (determined on a first-in, first-out basis) or net realizable value and includes material, labor and factory overhead. The Company maintains valuation allowances for estimated slow-moving and obsolete inventory to reflect the difference between the cost of inventory and the estimated net realizable value. Valuation 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 valuation 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 breakdown of the Company’s inventories as of July 31, 2019, January 31, 2019 and July 31, 2018: 7/31/2019 1/31/2019 7/31/2018 (in thousands) Finished goods $ 27,464 $ 15,908 $ 27,055 WIP 17,989 18,820 20,331 Raw materials 13,564 12,561 12,910 Inventories $ 59,017 $ 47,289 $ 60,296 Management continually monitors production costs, material costs and inventory levels to determine that interim inventories are fairly stated.

Leases

Leases	6 Months Ended
	Jul. 31, 2019
Leases [Abstract]
Leases	Leases The Company has operating leases on real property, equipment, and automobiles that expire at various dates. The Company determines if an arrangement is a lease at inception and assesses classification of the lease at commencement. All of the Company’s leases are classified as operating leases, as a lessee. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments using company specific credit spreads. The Company’s lease terms include options to extend or terminate the lease only when it is reasonably certain that we will exercise that option. Lease expense for our operating leases is recognized on a straight-line basis over the lease term. The Company has an operating lease for its corporate office, manufacturing and distribution facility located in Torrance, CA, currently with a remaining lease term through April 30, 2025. The Company leases machinery and equipment under a 5 -year operating lease arrangement. The Company has the option of buying the assets at the end of the lease period at a price that does not result in the Company being reasonably certain of exercising the option. In addition, 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 the 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. In accordance with ASC 842, quantitative information regarding our leases is as follows: Three-Months Ended Six-Months Ended 7/31/2019 7/31/2019 (in thousands) Operating lease cost $ 1,320 $ 2,700 Short-term lease cost 82 136 Short-term sublease income (20 ) (30 ) Total lease cost $ 1,382 $ 2,806 Other operating leases information: Cash paid for amounts included in the measurement of lease liabilities $ 1,320,000 Right-of-use assets obtained in exchange for new lease liabilities $ 641,000 Weighted-average remaining lease term (years) 5.4 Weighted-average discount rate 6.38 % Minimum future lease payments (in thousands) for operating leases in effect as of July 31, 2019, are as follows: Operating Lease Remaining of 2020 $ 2,690 2021 4,820 2022 5,435 2023 5,085 2024 5,192 Thereafter 6,687 Remaining balance of lease payments $ 29,909 Short-term lease liabilities $ 3,275 Long-term lease liabilities 21,598 Total lease liabilities $ 24,873 Difference between undiscounted cash flows and discounted cash flows $ 5,036 In accordance with ASC 840, future minimum lease payments under non-cancelable leases as of January 31, 2019 were as follows (in thousands): Year ending January 31, 2020 $ 5,045 2021 4,405 2022 5,041 2023 5,040 2024 5,192 Thereafter 6,687 Total minimum lease payments $ 31,410 In accordance with ASC 840, rent expense for operating leases for the three and six months ended July 31, 2018 was $ 1,519,000 and $ 2,969,000 , respectively.

Debt

Debt	6 Months Ended
	Jul. 31, 2019
Debt Disclosure [Abstract]
Debt	Debt Outstanding balances for the Company’s long-term debt were as follows (in thousands): 7/31/2019 1/31/2019 7/30/2018 Revolving credit line $ 44,585 $ 14,858 $ 43,907 Other 7,163 6,556 7,126 Total debt 51,748 21,414 51,033 Less current portion 35,457 5,504 36,894 Non-current portion $ 16,291 $ 15,910 $ 14,139 The Company has 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 eighteen times since it’s origination in 2011 through fiscal 2019, 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 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 $15,000,000 from January 1 through June 30 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 0.75% to 1.25% , and the applicable margin for Eurodollar Currency Rate loans is a percentage within a range of 1.75% to 2.25% , 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 July 31, 2019 was 6.75% . 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. In connection with the Seventeenth Amendment, the Borrowers also agreed to pay to PNC Bank a non-refundable extension fee of $250,000 . In March 2019, the Company entered into Amendment No. 19 which, among other things, (i) increased the Maximum Revolving Advance Amount to $65,000,000 with seasonal adjustments to the credit limit and subject to borrowing base limitations, (ii) increased seasonal advance to $15,000,000 from January to July of each year, (iii) increased equipment loan to $2,000,000 , (iv) to reduce borrowings under the line to less than or equal to $10,000,000 for a period of 30 consecutive days during the fourth quarter of each fiscal year. In connection with Amendment No. 19, the Borrowers also agreed to pay to PNC Bank a non-refundable fee of $24,000 . The clean-down provision allows the Company to maintain a minimum outstanding balance to be carried on an uninterrupted period extending beyond one year and ultimately due at the scheduled maturity date in March 2023. As a result of Amendment No. 19, the clean-down limit was increased to $10,000,000 , thereby allowing the Company to refinance an additional $2,000,000 of its short-term borrowings under the line of credit on a long-term basis at January 31, 2019. 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 15 consecutive days during any other time, subject to certain conditions. For the year ended January 31, 2019, the Company was in violation of the minimum fixed charge coverage ratio resulting in an Event of Default. In April 2019, the Company entered into Amendment No. 20 which, among other things, waived the covenant violation for the fourth quarter of fiscal 2019, amended the minimum EBITDA covenant and the fixed charge coverage ratio for fiscal 2020, and eliminated the Company’s ability to pay dividends or repurchase stock commencing on February 1, 2019 and ending on January 31, 2020. The fixed charge coverage ratio is as follows: (i) for the consecutive two fiscal quarter period ending July 31, 2019, 2.25 to 1.00, and (ii) for each consecutive four fiscal quarter period of Borrowers ending thereafter, 1.10 to 1.00. Minimum EBITDA for the three consecutive fiscal month period ending on April 30, 2019, may not be less than (negative) $5,000,000 . In addition, certain restrictions were placed upon the Company’s capital expenditures limiting the amount: (a) in the first fiscal quarter ending April 30, 2019 in an aggregate amount in excess of $900,000 , (b) in the consecutive two fiscal quarter periods ending July 31, 2019 in an aggregate amount in excess of $1,900,000 , (c) in the consecutive three fiscal quarter period ended October 31, 2019 in an aggregate amount in excess of (i) $3,900,000 , if an only if, the Borrowers’ EBITDA for the consecutive two fiscal quarter period ending July 31, 2019 exceeds $8,500,000 or (ii) $2,900,000 if Borrowers’ EBITDA for such period is less than or equal to $8,500,000 and (d) in the consecutive four fiscal quarter period ending January 31, 2020 or any fiscal year thereafter, in an aggregate amount for all Borrowers in excess of $8,000,000 . In connection with Amendment No. 20 the Borrowers also agreed to pay to PNC Bank a non-refundable fee of $125,000 . 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. The Company was in compliance with its financial covenants as of July 31, 2019. 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. Approximately $18,415,000 was available for borrowing as of July 31, 2019. Management believes that the carrying value of debt approximated fair value at July 31, 2019 and 2018, as all of the long-term debt bears interest at variable rates based on prevailing market conditions.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recognizes deferred income taxes under the asset and liability method of accounting for income taxes in accordance with the provisions of ASC No. 740, Accounting for Income Taxes . Deferred income taxes are recognized for differences between the financial statement and tax basis of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, the Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income or reversal of deferred tax liabilities during the periods in which those temporary differences become deductible. The Company maintains a partial valuation allowance against certain state deferred tax assets that the Company does not believe it is more-likely-than-not to realize. The January 31, 2016 and subsequent years remain open for examination by the IRS and state tax authorities. The Company is not currently under any state examination. The Company is currently under IRS examination for its fiscal year ended January 31, 2016 Federal tax return.

Net Income (Loss) per Share

Net Income (Loss) per Share	6 Months Ended
	Jul. 31, 2019
Earnings Per Share [Abstract]
Net Income (Loss) per Share	Net income per Share Three Months Ended Six Months Ended 7/31/2019 7/31/2018 7/31/2019 7/31/2018 (In thousands, except per share data) Net income $ 5,867 $ 5,475 $ 2,800 $ 1,903 Weighted average shares of common stock outstanding 15,561 15,392 15,524 15,355 Net effect of dilutive shares - based on the treasury stock method using average market price 7 43 5 40 Totals 15,568 15,435 15,529 15,395 Net income per share - basic $ 0.38 $ 0.36 $ 0.18 $ 0.12 Net income per share - diluted $ 0.38 $ 0.35 $ 0.18 $ 0.12

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jul. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock Incentive Plan The Company's two stock plans are the 2019 Employee Stock Incentive Plan (the “2019 Plan”) and the 2011 Employee Incentive Stock Plan (the “2011 Plan”). Under the 2019 Plan, the Company may grant an aggregate of 1,000,000 shares to its employees in the form of restricted stock units and non-employee directors in the form of restricted stock awards. Restricted stock units and awards granted under the 2019 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock units or awards and related compensation expense as the difference between the market value of the units or awards on the date of grant less the exercise price of the units or awards granted. During the six month periods ended July 31, 2019, the Company granted 228,000 units, vested 0 shares according to their terms and forfeited 0 shares under the 2019 Plan. As of July 31, 2019, there were approximately 772,000 shares available for future issuance under the 2019 Plan. Under the 2011 Plan, the Company may grant an aggregate of 2,000,000 shares to its employees in the form of restricted stock units and non-employee directors in the form of restricted stock awards. Restricted stock units and awards granted under the 2011 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock units or awards and related compensation expense as the difference between the market value of the units or awards on the date of grant less the exercise price of the units or awards granted. During the six month periods ended July 31, 2019, the Company granted 59,385 restricted awards to non-employee directors and 260,000 units to its employees; vested 55,555 stock awards and 168,000 units according to their terms and forfeited 24,000 stock units under the 2011 Plan. As of July 31, 2019, there were approximately 892 shares available for future issuance under the 2011 Plan. During the three months ended July 31, 2019, stock-based compensation expense related to restricted stock awards recognized in cost of goods sold and selling, general and administrative expenses was $57,000 and $180,000 , respectively. During the three months ended July 31, 2018, stock-based compensation expense related to restricted stock awards recognized in cost of goods sold and selling, general and administrative expenses was $60,000 and $151,000 , respectively. During the six months ended July 31, 2019, stock-based compensation expense related to restricted stock awards recognized in cost of goods sold and selling, general and administrative expenses was $116,000 and $307,000 , respectively. During the six months ended July 31, 2018, stock-based compensation expense related to restricted stock awards recognized in cost of goods sold and selling, general and administrative expenses was $120,000 and $319,000 , respectively. As of July 31, 2019, there was $3,336,000 of unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average period of approximately 3 years .

Statement of Changes in Equity

Statement of Changes in Equity and Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jul. 31, 2019
Equity [Abstract]
Statement of Changes in Equity and Accumulated Other Comprehensive Income (Loss)	Statement of Changes in Equity and Accumulated Other Comprehensive Income (Loss) The Company’s Credit Agreement with PNC currently restricts the Company from issuing dividends or making payments with respect to the Company's capital stock through January 31, 2020. The Company did not declare a cash dividend during quarter ended July 31, 2019. The Company declared a quarterly cash dividend of $0.015 per share, payable July 10, 2018 to shareholders of record as of June 26, 2018, during the same period last year.

Retirement Plans

Retirement Plans	6 Months Ended
	Jul. 31, 2019
Retirement Benefits [Abstract]
Retirement Plans	Retirement Plans The Company and its subsidiaries cover certain employees under a noncontributory defined benefit retirement plan, entitled the Virco Employees’ Retirement Plan (the “Pension Plan”). Benefits under the Employees Retirement Plan are based on years of service and career average earnings. As more fully described in the Form 10-K, benefit accruals under the Employees Retirement Plan were frozen effective December 31, 2003. There is no service cost incurred under this plan. The Company also provides a supplementary retirement plan for certain key employees, the VIP Retirement Plan (the “VIP Plan”). The VIP Plan provides a benefit of up to 50% of average compensation for the last 5 years in the VIP Plan, offset by benefits earned under the Pension Plan. As more fully described in the Annual Report on Form 10-K for the year ended January 31, 2019, benefit accruals under this plan were frozen since December 31, 2003. There is no service cost incurred under this plan. The net periodic pension cost for the Pension Plan and the VIP Plan for the three and six months ended July 31, 2019 and 2018 were as follows (in thousands): Combined Employee Retirement Plans Three Months Ended Six Months Ended 7/31/2019 7/31/2018 7/31/2019 7/31/2018 Service cost $ — $ — $ — $ — Interest cost 355 355 710 710 Expected return on plan assets (343 ) (407 ) (686 ) (814 ) Plan settlement — 319 — 319 Amortization of prior service cost — — — — Recognized net actuarial loss 176 173 352 345 Benefit cost $ 188 $ 440 $ 376 $ 560 401(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. The plan includes Virco stock as one of the investment options. At July 31, 2019 and 2018 , the plan held 708,345 shares and 608,928 shares of Virco stock, respectively. For the three months ended July 31, 2019 and 2018, the compensation costs incurred for employer match was $187,000 and $179,000 , respectively. For the six months ended July 31, 2019 and 2018, the compensation costs incurred for employer match was $374,000 and $363,000 , respectively.

Warranty Accrual

Warranty Accrual	6 Months Ended
	Jul. 31, 2019
Product Warranties Disclosures [Abstract]
Warranty Accrual	Warranty Accrual The Company provides an assurance type 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 for the three and six months ended July 31, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 7/31/2019 7/31/2018 7/31/2019 7/31/2018 Beginning balance $ 700 $ 925 $ 700 $ 925 Provision 245 86 316 141 Costs incurred (145 ) (86 ) (216 ) (141 ) Ending balance $ 800 $ 925 $ 800 $ 925

Contingencies

Contingencies	6 Months Ended
	Jul. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies 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. 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.

Reclassification of Prior Year

Reclassification of Prior Year Presentation Reclassification of Prior Year Presentation	6 Months Ended
	Jul. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification of Prior Year Presentation	Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. We have reclassified the pension costs from selling, general and administrative expense to non-operating pension expense in the Company's Condensed Consolidated Statement of Income for the three and six months ended July 31, 2018. This reclassification had no impact upon the reported net income. This change in classification does not affect previously reported cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows.

Subsequent Events

Subsequent Events	6 Months Ended
	Jul. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In accordance with ASC 855 “Subsequent Events” Management evaluated subsequent events through the date the condensed consolidated financial statements were issued. Management concluded that no subsequent events have occurred that would require recognition or disclosure in the condensed consolidated financial statements.

Inventories (Policies)

Inventories (Policies)	6 Months Ended
	Jul. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are valued at the lower of cost (determined on a first-in, first-out basis) or net realizable value and includes material, labor and factory overhead. The Company maintains valuation allowances for estimated slow-moving and obsolete inventory to reflect the difference between the cost of inventory and the estimated net realizable value. Valuation 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 valuation 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 breakdown of the Company’s inventories as of July 31, 2019, January 31, 2019 and July 31, 2018: 7/31/2019 1/31/2019 7/31/2018 (in thousands) Finished goods $ 27,464 $ 15,908 $ 27,055 WIP 17,989 18,820 20,331 Raw materials 13,564 12,561 12,910 Inventories $ 59,017 $ 47,289 $ 60,296 Management continually monitors production costs, material costs and inventory levels to determine that interim inventories are fairly stated.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventory	The following table presents breakdown of the Company’s inventories as of July 31, 2019, January 31, 2019 and July 31, 2018: 7/31/2019 1/31/2019 7/31/2018 (in thousands) Finished goods $ 27,464 $ 15,908 $ 27,055 WIP 17,989 18,820 20,331 Raw materials 13,564 12,561 12,910 Inventories $ 59,017 $ 47,289 $ 60,296

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 31, 2019
Leases [Abstract]
Quantitative Information of Leases	In accordance with ASC 842, quantitative information regarding our leases is as follows: Three-Months Ended Six-Months Ended 7/31/2019 7/31/2019 (in thousands) Operating lease cost $ 1,320 $ 2,700 Short-term lease cost 82 136 Short-term sublease income (20 ) (30 ) Total lease cost $ 1,382 $ 2,806 Other operating leases information: Cash paid for amounts included in the measurement of lease liabilities $ 1,320,000 Right-of-use assets obtained in exchange for new lease liabilities $ 641,000 Weighted-average remaining lease term (years) 5.4 Weighted-average discount rate 6.38 %
Schedule of Minimum Future Lease Payments	Minimum future lease payments (in thousands) for operating leases in effect as of July 31, 2019, are as follows: Operating Lease Remaining of 2020 $ 2,690 2021 4,820 2022 5,435 2023 5,085 2024 5,192 Thereafter 6,687 Remaining balance of lease payments $ 29,909 Short-term lease liabilities $ 3,275 Long-term lease liabilities 21,598 Total lease liabilities $ 24,873 Difference between undiscounted cash flows and discounted cash flows $ 5,036
Schedule of ASC 840 Future Minimum Lease Payments	In accordance with ASC 840, future minimum lease payments under non-cancelable leases as of January 31, 2019 were as follows (in thousands): Year ending January 31, 2020 $ 5,045 2021 4,405 2022 5,041 2023 5,040 2024 5,192 Thereafter 6,687 Total minimum lease payments $ 31,410

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jul. 31, 2019
Debt Disclosure [Abstract]
Outstanding balances of long-term debt	Outstanding balances for the Company’s long-term debt were as follows (in thousands): 7/31/2019 1/31/2019 7/30/2018 Revolving credit line $ 44,585 $ 14,858 $ 43,907 Other 7,163 6,556 7,126 Total debt 51,748 21,414 51,033 Less current portion 35,457 5,504 36,894 Non-current portion $ 16,291 $ 15,910 $ 14,139

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	6 Months Ended
	Jul. 31, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Three Months Ended Six Months Ended 7/31/2019 7/31/2018 7/31/2019 7/31/2018 (In thousands, except per share data) Net income $ 5,867 $ 5,475 $ 2,800 $ 1,903 Weighted average shares of common stock outstanding 15,561 15,392 15,524 15,355 Net effect of dilutive shares - based on the treasury stock method using average market price 7 43 5 40 Totals 15,568 15,435 15,529 15,395 Net income per share - basic $ 0.38 $ 0.36 $ 0.18 $ 0.12 Net income per share - diluted $ 0.38 $ 0.35 $ 0.18 $ 0.12

Retirement Plans (Tables)

Retirement Plans (Tables)	6 Months Ended
	Jul. 31, 2019
Retirement Benefits [Abstract]
Schedule of Defined Benefit Plans Disclosures	The net periodic pension cost for the Pension Plan and the VIP Plan for the three and six months ended July 31, 2019 and 2018 were as follows (in thousands): Combined Employee Retirement Plans Three Months Ended Six Months Ended 7/31/2019 7/31/2018 7/31/2019 7/31/2018 Service cost $ — $ — $ — $ — Interest cost 355 355 710 710 Expected return on plan assets (343 ) (407 ) (686 ) (814 ) Plan settlement — 319 — 319 Amortization of prior service cost — — — — Recognized net actuarial loss 176 173 352 345 Benefit cost $ 188 $ 440 $ 376 $ 560

Warranty Accrual (Tables)

Warranty Accrual (Tables)	6 Months Ended
	Jul. 31, 2019
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability	The following is a summary of the Company’s warranty-claim activity for the three and six months ended July 31, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 7/31/2019 7/31/2018 7/31/2019 7/31/2018 Beginning balance $ 700 $ 925 $ 700 $ 925 Provision 245 86 316 141 Costs incurred (145 ) (86 ) (216 ) (141 ) Ending balance $ 800 $ 925 $ 800 $ 925

Seasonality (Details)

Seasonality (Details)	6 Months Ended
	Jul. 31, 2019
Sales [Member]
Seasonality (Textual) [Abstract]
The market for educational furniture is marked by extreme seasonality	50.00%

New Accounting Standards (Detai

New Accounting Standards (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Feb. 01, 2019	Jan. 31, 2019	Jul. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 22,924		$ 0	$ 0
Lease liabilities	$ 24,873
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 23,900
Lease liabilities		$ 25,600

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jan. 31, 2019	Jul. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 27,464	$ 15,908	$ 27,055
WIP	17,989	18,820	20,331
Raw materials	13,564	12,561	12,910
Inventories	$ 59,017	$ 47,289	$ 60,296

Inventories Narrative (Details)

Inventories Narrative (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jan. 31, 2019	Jul. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 27,464	$ 15,908	$ 27,055
WIP	17,989	18,820	20,331
Raw materials	$ 13,564	$ 12,561	$ 12,910

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jul. 31, 2018	Jul. 31, 2018	Jul. 31, 2019
Lessee, Lease, Description [Line Items]
Weighted-average remaining lease term (years)			5 years 5 months 12 days
Rent expense	$ 1,519,000	$ 2,969,000
Weighted-average discount rate			6.38%
Manufacturing and Distribution Facility in Torrance, CA [Member]
Lessee, Lease, Description [Line Items]
Operating lease period (in years)			5 years

Leases - ASC 842 Quantitative I

Leases - ASC 842 Quantitative Information (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 31, 2019USD ($)	Jul. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 1,320	$ 2,700
Short-term lease cost	82	136
Short-term sublease income	(20)	(30)
Total lease cost	$ 1,382	2,806
Cash paid for amounts included in the measurement of lease liabilities		1,320
Right-of-use assets obtained in exchange for new lease liabilities		$ 641
Weighted-average remaining lease term (years)	5 years 5 months 12 days	5 years 5 months 12 days
Weighted-average discount rate	6.38%	6.38%

Leases - ASC 842 Minimum Lease

Leases - ASC 842 Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jan. 31, 2019	Jul. 31, 2018
Leases [Abstract]
Remaining of 2020	$ 2,690
2021	4,820
2022	5,435
2023	5,085
2024	5,192
Thereafter	6,687
Remaining balance of lease payments	29,909
Short-term lease liabilities	3,275	$ 0	$ 0
Long-term lease liabilities	21,598	$ 0	$ 0
Total lease liabilities	24,873
Difference between undiscounted cash flows and discounted cash flows	$ 5,036

Leases - ASC 840 Minimum Lease

Leases - ASC 840 Minimum Lease Payments (Details) $ in Thousands	Jan. 31, 2019USD ($)
Leases [Abstract]
2020	$ 5,045
2021	4,405
2022	5,041
2023	5,040
2024	5,192
Thereafter	6,687
Total minimum lease payments	$ 31,410

Debt (Long-term Debt) (Details)

Debt (Long-term Debt) (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Jan. 31, 2019	Jul. 31, 2018
Debt Instrument [Line Items]
Long-term debt	$ 51,748	$ 21,414	$ 51,033
Less current portion	35,457	5,504	36,894
Non-current portion	16,291	15,910	14,139
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	44,585	14,858	43,907
Other Debt [Member]
Debt Instrument [Line Items]
Long-term debt	$ 7,163	$ 6,556	$ 7,126

Debt (Narrative) (Details)

Debt (Narrative) (Details)	1 Months Ended		3 Months Ended	6 Months Ended	9 Months Ended
	Apr. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Apr. 30, 2019USD ($)	Jul. 31, 2019USD ($)	Oct. 31, 2019USD ($)
Line of Credit Facility [Line Items]
Line Of Credit Facility, Borrowing Capacity, Term				$ 15,000,000
Revolving credit facility bears interest increased				2.00%
Interest rate				6.75%
Judgments or judicial actions against the borrowers in excess				$ 250,000
Inventory [Member]
Line of Credit Facility [Line Items]
Revolving credit facility borrowing base limitation				60.00%
Inventories [Member]
Line of Credit Facility [Line Items]
Revolving credit facility borrowing base limitation				85.00%
Maximum [Member] | Accounts receivable [Member]
Line of Credit Facility [Line Items]
Revolving credit facility borrowing base limitation				85.00%
Amendment No. 17 to Credit Facility [Member]
Line of Credit Facility [Line Items]
Non-refundable Extension Fee				$ 250,000
Amendment No. 19 to Credit Facility [Member]
Line of Credit Facility [Line Items]
Non-refundable Extension Fee		$ 24,000
Amendment No. 20 To Credit Facility [Member]
Line of Credit Facility [Line Items]
Minimum EBITDA	$ 5,000,000		$ 5,000,000
Maximum fixed charge coverage ratio	1.10		1.10	2.25
Non-refundable Extension Fee	$ 125,000
Amendment No. 20 To Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Covenant, Capital Expenditures Limit			$ 900,000	$ 1,900,000
Debt Instrument, Covenant, Aggregate Debt	$ 8,000,000		$ 8,000,000
PNC [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				60,000,000
Line of credit facility, Equipment financing				2,500,000
Remaining borrowing capacity				18,415,000
PNC [Member] | Revolving Credit Facility [Member] | Amendment No. 19 to Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		65,000,000
Line Of Credit, Clean Down Limit		10,000,000
Line Of Credit, Short-Term Borrowings Limit		2,000,000
PNC [Member] | Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				$ 3,000,000
PNC [Member] | Seasonal Advance [Member] | Amendment No. 19 to Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		15,000,000
PNC [Member] | Equipment Loan [Member] | Amendment No. 19 to Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		10,000,000
Line of credit facility, Equipment financing		$ 2,000,000
Eurodollar [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of				1.75%
Eurodollar [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of				2.25%
Alternate Base Rate Loans [Member] | London Interbank Offered Rate LIBOR [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of				0.75%
Alternate Base Rate Loans [Member] | London Interbank Offered Rate LIBOR [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility bears interest range of				1.25%
Debt Covenant Term One [Member] | Amendment No. 20 To Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Covenant, Capital Expenditure Limit Term On EBITDA				$ 8,500,000
Debt Covenant Term One [Member] | Scenario, Forecast [Member] | Amendment No. 20 To Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Covenant, Capital Expenditures Limit					$ 3,900,000
Debt Covenant Term Two [Member] | Amendment No. 20 To Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Covenant, Capital Expenditures Limit				2,900,000
Debt Instrument, Covenant, Capital Expenditure Limit Term On EBITDA				$ 8,500,000

Net Income (Loss) per Share (De

Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Earnings Per Share [Abstract]
Net income (loss)	$ 5,867	$ 5,475	$ 2,800	$ 1,903
Weighted average shares outstanding (shares)	15,561	15,392	15,524	15,355
Net effect of dilutive share-based on the treasury stock method using average market price (shares)	7	43	5	40
Totals (shares)	15,568	15,435	15,529	15,395
Net income (loss) per share - basic (usd per share)	$ 0.38	$ 0.36	$ 0.18	$ 0.12
Net income (loss) per share - diluted (usd per share)	$ 0.38	$ 0.35	$ 0.18	$ 0.12

Stock-Based Compensation Stock-

Stock-Based Compensation Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Cost of Goods Sold [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 57	$ 60	$ 116	$ 120
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	180	$ 151	307	$ 319
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 3,336		$ 3,336
Unrecognized compensation expense, weighted average period to be recognized			3 years
Restricted Stock Units (RSUs) [Member] | 2019 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards authorized (shares)	1,000,000		1,000,000
Granted in the period (shares)			228,000
Vested in period (shares)			0
Forfeited in period (shares)			0
Awards available for future issuance (shares)	772,000		772,000
Restricted Stock Units (RSUs) [Member] | 2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards authorized (shares)	2,000,000		2,000,000
Granted in the period (shares)			260,000
Vested in period (shares)			168,000
Forfeited in period (shares)			24,000
Awards available for future issuance (shares)	892		892
Director [Member] | Restricted Stock Awards [Member] | 2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted in the period (shares)			59,385
Vested in period (shares)			55,555

Statement of Changes in Equit_2

Statement of Changes in Equity and Accumulated Other Comprehensive Income (Loss) (Details)	6 Months Ended
	Jul. 31, 2018$ / shares
Equity [Abstract]
Dividends declared (usd per share)	$ 0.015

Retirement Plans (Narrative) (D

Retirement Plans (Narrative) (Details) - USD ($)	Dec. 31, 2003	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
United States [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Maximum annual contributions per employee, percent				75.00%
Number of common shares held		708,345	608,928	708,345	608,928
Contributions by employer		$ 187,000	$ 179,000	$ 374,000	$ 363,000
United States [Member] | Minimum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Annual contributions per employee, percent				1.00%
VIP Retirement Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Rate of compensation increase				50.00%
Benefit of average compensation years	5 years

Retirement Plans (Periodic Pens

Retirement Plans (Periodic Pension Cost) (Details) - Pension Plan [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Components of Net Cost
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	355	355	710	710
Expected return on plan assets	(343)	(407)	(686)	(814)
Plan settlement	0	319	0	319
Amortization of prior service cost	0	0	0	0
Recognized net actuarial loss	176	173	352	345
Benefit cost	$ 188	$ 440	$ 376	$ 560

Warranty (Details)

Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Warranty claim activity
Beginning balance	$ 700	$ 925	$ 700	$ 925
Provision	245	86	316	141
Costs incurred	(145)	(86)	(216)	(141)
Ending balance	$ 800	$ 925	$ 800	$ 925
Maximum [Member]
Warranty [Line Items]
Product warranty period			10 years

Contingencies (Details)

Contingencies (Details) - Maximum [Member]	Jul. 31, 2019USD ($)
Loss Liability [Member]
Loss Contingencies [Line Items]
Self insurance retention	$ 30,000,000
Automobile Liability Loss [Member]
Loss Contingencies [Line Items]
Self insurance retention	50,000
Workers compensation Liability Insurance [Member]
Loss Contingencies [Line Items]
Self insurance retention	250,000
Product and General Liability Insurance [Member]
Loss Contingencies [Line Items]
Self insurance retention	$ 250,000