Document and Entity Information
Document and Entity Information - May. 31, 2015 - shares | Total |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | May 31, 2015 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | VIDE |
Entity Registrant Name | VIDEO DISPLAY CORP |
Entity Central Index Key | 758,743 |
Current Fiscal Year End Date | --02-28 |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 5,893,623 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May. 31, 2015 | Feb. 28, 2015 |
Current assets | ||
Cash and cash equivalents | $ 642 | $ 62 |
Trading investments, at fair value | 2,071 | 2,516 |
Accounts receivable, less allowance for doubtful accounts of $18 and $52 | 1,245 | 1,504 |
Note receivable | 80 | 32 |
Inventories, net | 6,356 | 7,005 |
Income taxes refundable | 111 | 720 |
Prepaid expenses and other | 72 | 61 |
Assets of discontinued operations | 3,371 | 2,831 |
Total current assets | 13,948 | 14,731 |
Property, plant, and equipment | ||
Land | 154 | 154 |
Buildings | 2,614 | 2,593 |
Machinery and equipment | 7,273 | 7,282 |
Total property, plant and equipment | 10,041 | 10,029 |
Accumulated depreciation and amortization | (8,715) | (8,658) |
Net property, plant, and equipment | 1,326 | 1,371 |
Note receivable | 1,047 | 1,070 |
Intangible assets, net | 530 | 559 |
Other assets | 29 | 29 |
Assets of discontinued operations | 62 | 70 |
Total assets | 16,942 | 17,830 |
Current liabilities | ||
Accounts payable | 333 | 719 |
Accrued liabilities | 637 | 603 |
Current maturities of long-term debt | 51 | 50 |
Note payable to officer | 80 | |
Billings in excess of cost | 184 | |
Liabilities of discontinued operations | 2,065 | 1,145 |
Total current liabilities | 3,350 | 2,517 |
Long-term debt, less current maturities | 170 | 183 |
Deferred rent | 390 | 420 |
Total liabilities | $ 3,910 | $ 3,120 |
Shareholders' Equity | ||
Preferred stock, no par value - 10,000 shares authorized; none issued and outstanding | ||
Common stock, no par value - 50,000 shares authorized; 9,732 issued and 5,894 outstanding at May 31, 2015 and 9,732 issued and 5,962 outstanding at February 28, 2015 | $ 7,293 | $ 7,293 |
Additional paid-in capital | 173 | 170 |
Retained earnings | 21,830 | 23,399 |
Treasury stock, shares at cost; 3,839 at May 31, 2015 and 3,770 at February 28, 2015 | (16,264) | (16,152) |
Total shareholders' equity | 13,032 | 14,710 |
Total liabilities and shareholders' equity | $ 16,942 | $ 17,830 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May. 31, 2015 | Feb. 28, 2015 |
Accounts receivable, allowance for doubtful accounts | $ 18 | $ 52 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 9,732,000 | 9,732,000 |
Common stock, shares outstanding | 5,894,000 | 5,962,000 |
Treasury stock, shares | 3,839,000 | 3,770,000 |
Condensed Consolidated Income S
Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Net sales | $ 2,360 | $ 3,695 |
Cost of goods sold | 2,296 | 2,718 |
Gross profit | 64 | 977 |
Operating expenses | ||
Selling and delivery | 239 | 276 |
General and administrative | 834 | 810 |
Operating Expenses, Total | 1,073 | 1,086 |
Operating loss | (1,009) | (109) |
Other income (expense) | ||
Interest income | 3 | 14 |
Other, net | (364) | 258 |
Nonoperating Income (Expense), Total | (361) | 272 |
Income (loss) from continuing operations before income taxes | (1,370) | 163 |
Income tax expense | 0 | 24 |
Net income (loss) from continuing operations | (1,370) | 139 |
Loss from discontinued operations, net of income tax effects | (199) | |
Net income (loss) | $ (1,569) | $ 139 |
Net income (loss) per share: | ||
From continuing operations-basic | $ (0.23) | $ 0.02 |
From continuing operations-diluted | (0.23) | 0.02 |
From discontinued operations-basic | (0.03) | 0 |
From discontinued operations-diluted | $ (0.03) | $ 0 |
Basic weighted average shares outstanding | 5,957 | 6,850 |
Diluted weighted average shares outstanding | 5,957 | 6,875 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Shareholders' Equity - 3 months ended May. 31, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
Beginning Balance (in shares) at Feb. 28, 2015 | 5,962 | ||||
Beginning Balance at Feb. 28, 2015 | $ 14,710 | $ 7,293 | $ 170 | $ 23,399 | $ (16,152) |
Net loss | (1,569) | (1,569) | |||
Repurchase of treasury stock (in shares) | (68) | ||||
Repurchase of treasury stock | (112) | ||||
Share based compensation | 3 | ||||
Ending Balance (in shares) at May. 31, 2015 | 5,894 | ||||
Ending Balance at May. 31, 2015 | $ 13,032 | $ 7,293 | $ 173 | $ 21,830 | $ (16,264) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Operating Activities | ||
Net income (loss) | $ (1,569) | $ 139 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Loss from discontinued operations, net of tax | 199 | |
Depreciation and amortization | 86 | 97 |
Provision for doubtful accounts | 23 | 1 |
Provision for inventory reserve | 92 | 82 |
Non-cash charge for share based compensation | 3 | 2 |
Deferred income taxes | 30 | |
Deferred rental income | (30) | |
Realized/unrealized (gain) loss on investments | 610 | (166) |
Changes in working capital items: | ||
Accounts receivable | 237 | (319) |
Note receivable | (25) | (767) |
Inventories | 569 | 574 |
Prepaid expenses and other assets | (12) | 2 |
Accounts payable and accrued liabilities | (352) | (196) |
Cost, estimated earnings and billings on uncompleted contracts | 184 | |
Income taxes refundable/payable | 609 | (19) |
Net cash provided by (used in) operating activities | 624 | (540) |
Investing Activities | ||
Capital expenditures | (26) | (6) |
Cash advance repayment from discontinued operations | 188 | |
Proceeds from the sale of discontinued operations | 100 | |
Purchases of investments | (3,890) | (22,867) |
Sales of investments | 3,752 | 23,443 |
Net cash provided by investing activities | 24 | 670 |
Financing Activities | ||
Proceeds from related party loans | 80 | |
Repayments of long-term debt | (12) | (12) |
Purchase of treasury stock | (112) | (1,947) |
Proceeds from marginal float | (24) | 923 |
Net cash used in financing activities | (68) | (1,036) |
Discontinued Operations | ||
Operating activities | 129 | |
Investing activities | (188) | |
Net cash used in discontinued operations | (59) | |
Net change in cash and cash equivalents | 521 | (906) |
Cash and cash equivalents, beginning of year | 172 | 3,499 |
Cash and cash equivalents, end of period | 693 | 2,593 |
Cash and cash equivalents, discontinued operations | 51 | |
Cash and cash equivalents, continuing operations | $ 642 | $ 2,593 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May. 31, 2015 | |
Summary of Significant Accounting Policies | Note 1. – Summary of Significant Accounting Policies The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of all significant intercompany accounts and transactions. As contemplated by the Securities and Exchange Commission (the “SEC” or “Commission”) instructions to Form 10-Q, the following footnotes have been condensed and, therefore, do not contain all disclosures required in connection with annual consolidated financial statements. Reference should be made to the Company’s year-end consolidated financial statements and notes thereto, including a description of the accounting policies followed by the Company, contained in its Annual Report on Form 10-K for the fiscal year ended February 28, 2015, as filed with the Commission. There are no material changes in accounting policy during the three months ended May 31, 2015. The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, the condensed consolidated financial information included in this report contains all adjustments (all of which are normal and recurring) necessary for a fair presentation of the results for the interim periods. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The February 28, 2015 consolidated balance sheet data was derived from the audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). |
Banking & Liquidity
Banking & Liquidity | 3 Months Ended |
May. 31, 2015 | |
Banking & Liquidity | Note 2. – Banking & Liquidity The Company is currently operating using working capital, cash from operations and investing activities. The Company has a $10.7 million working capital balance at May 31, 2015, including $2.7 million in liquid assets, and $11.6 million working capital balance at February 28, 2015, including $2.6 million in liquid assets. The Company believes it can continue to operate the Company with existing working capital and cash flows for the current level of business. The Company continually monitors its cash and financing positions in order to find ways to lower its costs and to produce positive operating cash flow. The Company examines possibilities to grow its business through internal sales or niche acquisitions. There could be an impact on working capital requirements to fund this growth. As in the past, the intent is to finance such projects with operating cash flows; however, more permanent sources of capital may be required in certain circumstances. The accompanying consolidated financial statements were prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company generated $0.6 million in operating cash flows for the quarter ended May 31, 2015, while utilizing $0.5 million in operating cash flows during the same period in 2014. The Company had a $10.7 million working capital balance at May 31, 2015, including $2.7 million in liquid assets and management believes that this is adequate to fund the current level of business for a reasonable period of time. In addition to its current position, the Company is examining possibilities to improve operations through reduced overhead costs by co-locating certain operations and through improved revenues with an enhanced sales strategy. |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 3 Months Ended |
May. 31, 2015 | |
Fair Value Measurements and Financial Instruments | Note 3. – Fair Value Measurements and Financial Instruments The Financial Accounting Standards Board’s (FASB’s) fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets measured at fair value on a recurring basis by the Company consist of investment securities held for trading using Level 1 inputs. The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of May 31, 2015 and February 28, 2015 (in thousands): May 31, 2015 Level 1 Assets Level 2 Assets Level 3 Assets Current trading investments: Stocks, options, and ETF (long) 5,844 5,844 — — Stocks, options, and ETF (short) (4 ) (4 ) — — Mutual Funds 214 214 — — Total value of investments $ 6,054 $ 6,054 — — Current Liabilities: Margin balance (3,983 ) (3,983 ) — — Total value of liabilities (3,983 ) (3,983 ) — — Total $ 2,071 $ 2,071 — — February 28, 2015 Level 1 Assets Level 2 Assets Level 3 Assets Current trading investments: Stocks, options, and ETF (long) 6,308 6,308 — — Stocks, options, and ETF (short) (10 ) (10 ) — — Mutual Funds 226 226 — — Total value of investments $ 6,524 $ 6,524 — — Current Liabilities: Margin balance (4,008 ) (4008 ) Total value of liabilities (4,008 ) (4,008 ) Total $ 2,516 $ 2,516 — — The Company’s financial instruments which are not measured at fair value on the consolidated balance sheets include cash, accounts receivable, short-term liabilities, and debt. The estimated fair value of these financial instruments were determined using Level 2 inputs and approximate cost due to the short period of time to maturity. Recorded amounts of long-term debt are considered to approximate fair value due to either rates that fluctuate with the market or are otherwise commensurate with the current market. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
May. 31, 2015 | |
Recent Accounting Pronouncements | Note 4. – Recent Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update No. (ASU) 2014-15, “ Presentation of Financial Statements. Going Concern Disclosure of Uncertainties about an Entity’s Ability to continue as a Going Concern”. In May, 2014, the FASB issued ASU 2014-09 “Revenue with Contracts from Customers”. The guidance is effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. The Company is still evaluating the effects that the adoption of this update will have on the Company’s consolidated financial position or results of operations. In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The standard expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following the disposal date and retained equity method investments in a discontinued operation. The guidance is effective for annual periods beginning on or after December 15, 2014 and interim periods within that year. The Company adopted this pronouncement effective with the quarter ending May 31, 2015 and it did not have a significant effect on the Company’s consolidated financial position or results of operations. |
Inventories
Inventories | 3 Months Ended |
May. 31, 2015 | |
Inventories | Note 5. – Inventories Inventories are stated at the lower of cost (first in, first out) or market. Inventories consisted of the following (in thousands): May 31, February 28, 2015 2015 Raw materials $ 4,836 $ 5,309 Work-in-process 371 438 Finished goods 1,726 1,751 6,933 7,498 Reserves for obsolescence (577 ) (493 ) $ 6,356 $ 7,005 |
Costs and Estimated Earnings Re
Costs and Estimated Earnings Related to Billings on Uncompleted Contracts | 3 Months Ended |
May. 31, 2015 | |
Costs and Estimated Earnings Related to Billings on Uncompleted Contracts | Note 6. – Costs and Estimated Earnings Related to Billings on Uncompleted Contracts Information relative to contracts in progress consisted of the following: May 31, February 28, 2015 2015 Costs incurred to date on uncompleted contracts $ 217 $ — Estimated earnings recognized to date on these contracts 124 — 341 — Billings to date (525 ) — Costs and estimated earnings in excess of billings, net $ (184 ) $ — Costs and estimated earnings in excess of billings $ — $ — Billings in excess of costs and estimated earnings 184 — $ (184 ) $ — Costs and estimated earnings in excess of billings are the results of contracts in progress (jobs) in completing orders to customers’ specifications on contracts accounted for under FASB Accounting Standards Codification Topic No. (ASC) 605-35, “ Revenue Recognition: Construction-Type and Production-Type Contracts Changes in job performance, manufacturing efficiency, final contract settlements, and other factors affecting estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. As of May 31, 2015, there were no production costs that exceeded the aggregate estimated cost of all in process and delivered units relating to long-term contracts. Additionally, there were no claims outstanding that would affect the ultimate realization of full contract values. As of May 31, 2015, there were no progress payments that had been netted against inventory. |
Intangible Assets
Intangible Assets | 3 Months Ended |
May. 31, 2015 | |
Intangible Assets | Note 7. – Intangible Assets Intangible assets consist of the unamortized value of customer lists. Intangible assets are amortized over the period of their expected lives, generally ranging from 5 to 15 years. Amortization expense related to intangible assets was approximately $29 thousand for the three months ended May 31, 2015 and $31 thousand for the three months ended May 31, 2014. The cost and accumulated amortization of intangible assets was as follows (in thousands). May 31, 2015 February 28, 2015 Cost Accumulated Amortization Cost Accumulated Customer lists $ 2,863 $ 2,333 $ 2,863 $ 2,304 $ 2,863 $ 2,333 $ 2,863 $ 2,304 |
Long-Term Debt and Other Obliga
Long-Term Debt and Other Obligations | 3 Months Ended |
May. 31, 2015 | |
Long-Term Debt and Other Obligations | Note 8. – Long-Term Debt and Other Obligations Long-term debt consisted of the following (in thousands): May 31, February 28, 2015 2015 Mortgage payable to bank; interest rate at Community Bank base rate plus 0.5% (3.75% as of May 31, 2015); monthly principal and interest payments of $5 thousand payable through October 2021; collateralized by land and building of Teltron Technologies, Inc. 221 233 221 233 Less current maturities (51 ) (50 ) $ 170 $ 183 The Company had outstanding margin account borrowing of $4.0 million as of May 31, 2015 and February 28, 2015. The margin account borrowings are used to purchase marketable equity securities and are netted against the investments in the balance sheet to show net trading investments. The gross investments were $6.1 million leaving net investments of $2.1 million and $6.5 million leaving net investments of $2.5 million after the margin account borrowings of $4.0 million for the periods ending May 31, 2015 and February 28, 2015, respectively. The margin interest rate is 2%. The Company borrowed $80 thousand from the Company’s Chief Executive Officer in May 2015 with a zero interest rate. This was borrowed on a short term basis and repaid in June 2015. The balance of this loan at May 31, 2015 was $80 thousand. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
May. 31, 2015 | |
Supplemental Cash Flow Information | Note 9. – Supplemental Cash Flow Information Supplemental cash flow information is as follows (in thousands): Three Months 2015 2014 Cash paid for: Interest $ 22 $ 9 Income taxes, net of refunds $ (609 ) $ 13 |
Shareholder's Equity
Shareholder's Equity | 3 Months Ended |
May. 31, 2015 | |
Shareholder's Equity | Note 10. – Shareholder’s Equity Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing income or loss available to common shareholders by the weighted average number of common shares outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Diluted earnings (loss) per share is calculated in a manner consistent with that of basic earnings (loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The following table sets forth the computation of basic and diluted earnings (loss) per share for the three-month periods ended May 31, 2015 and 2014 (in thousands, except per share data): Net Weighted Earnings (Loss) Share Three months ended May 31, 2015 Basic-continuing operations $ (1,370 ) 5,957 $ (0.23 ) Basic-discontinued operations (199 ) 5,957 (0.03 ) Effect of dilution: Diluted-continuing operations Diluted-discontinued operations — — — Diluted $ (1,569 ) 5,957 $ (0.26 ) Three months ended May 31, 2014 Basic-continuing operations $ 139 6,850 $ 0.02 Basic-discontinued operations — — Effect of dilution: Diluted-continuing operations — Diluted-discontinued operations — 25 — Diluted $ 139 6,875 $ 0.02 Stock-Based Compensation Plans For the three-month period ended May 31, 2015 and 2014, the Company recognized general and administrative expenses of $3.2 thousand and $2.2 thousand, respectively, related to share-based compensation. The liability for the share-based compensation recognized is presented in the consolidated balance sheet as part of additional paid in capital. As of May 31, 2015, total unrecognized compensation costs related to stock options granted was $7.9 thousand. The unrecognized stock option compensation cost is expected to be recognized over a period of approximately 1 year. The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model, which requires the Company to estimate the expected term of the stock option grants and expected future stock price volatility over the term. The term represents the expected period of time the Company believes the options will remain outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock, which represents the standard deviation of the differences in the weekly stock closing price, adjusted for dividends and stock splits. No options were granted during the three month periods ended May 31, 2015 and 2014. Stock Repurchase Program The Company has a stock repurchase program, pursuant to which it had been authorized to repurchase up to 2,632,500 shares of the Company’s common stock in the open market. On January 20, 2014 the Board of Directors of the Company approved a one time continuation of the stock repurchase program, and authorized the Company to repurchase up to 1,500,000 additional shares of the Company’s common stock in the open market depending on the market price of the shares. There is no minimum number of shares required to be repurchased under the program. For the quarter ended May 31, 2015, the Company purchased 68,531 shares at an average price of $1.63 per share. For the quarter ended May 31, 2014, the Company purchased 524,694 shares at an average price of $3.71 per share. Under the Company’s stock repurchase program, an additional 505,519 shares remain authorized to be repurchased by the Company at May 31, 2015. |
Income Taxes
Income Taxes | 3 Months Ended |
May. 31, 2015 | |
Income Taxes | Note 11. – Income Taxes The effective tax rate for the three months ended May 31, 2015 and 2014 was 0% and 14.7%, respectively. The Company lost $1.5 million dollars for the quarter ending May 31, 2015 which resulted in a tax benefit of approximately $0.6 million. Due to the recent losses by the Company, a full valuation allowance was allocated to the deferred tax asset created by the loss. The net effect of this allowance was to have zero tax expense for the quarter. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
May. 31, 2015 | |
Discontinued Operations | Note 12. – Discontinued Operations On March 26, 2014 with an effective date of February 28, 2014, the Company completed the sale of the Company’s wholly-owned subsidiary, Lexel Imaging, Inc. to Citadal Partners, LLC for approximately $3.9 million, consisting of $1.0 million cash payable over 180 days in the form of a note receivable and a guarantee to purchase $2.9 million in inventory over a five year period. The inventory was adjusted to its net realizable value as part of the sale. The Company recognized a loss on the sale of $4.4 million pre-tax during the year ended February 28, 2014. Lexel Imaging, Inc. had net sales of $ 7.6 million and a pre-tax net loss of $0.8 million for the twelve months ending February 28, 2014. On November 17, 2014 Video Display reacquired Lexel Imaging, Inc when Citadal Partners, LLC defaulted on two notes payable to Video Display Corporation owed as financing on the original sale of the Lexel Imaging. Lexel Imaging is still presented as discontinued operations as Video Display Corporation is still considering offers for the sale of the entity. This company’s net sales, expenses and net profits are being shown as discontinued operations per ASC 205-20-45 “Reporting Discontinued Operations”. The summarized financial information for discontinued operations for the three months ended May 31, 2015, is as follows: Three months ending Net sales 1,095 Cost of goods sold 1,084 Gross profit 11 Operating expenses Selling and delivery — General and administrative 239 Total operating expenses 239 Operating profit from discontinued operations (228 ) Other income (expense) 29 Interest expense — Other, net 29 Income from discontinued operations before income taxes (199 ) Income tax expense — Income from discontinued operations (199 ) |
Fair Value Measurements and F19
Fair Value Measurements and Financial Instruments (Tables) | 3 Months Ended |
May. 31, 2015 | |
Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of May 31, 2015 and February 28, 2015 (in thousands): May 31, 2015 Level 1 Assets Level 2 Assets Level 3 Assets Current trading investments: Stocks, options, and ETF (long) 5,844 5,844 — — Stocks, options, and ETF (short) (4 ) (4 ) — — Mutual Funds 214 214 — — Total value of investments $ 6,054 $ 6,054 — — Current Liabilities: Margin balance (3,983 ) (3,983 ) — — Total value of liabilities (3,983 ) (3,983 ) — — Total $ 2,071 $ 2,071 — — February 28, 2015 Level 1 Assets Level 2 Assets Level 3 Assets Current trading investments: Stocks, options, and ETF (long) 6,308 6,308 — — Stocks, options, and ETF (short) (10 ) (10 ) — — Mutual Funds 226 226 — — Total value of investments $ 6,524 $ 6,524 — — Current Liabilities: Margin balance (4,008 ) (4008 ) Total value of liabilities (4,008 ) (4,008 ) Total $ 2,516 $ 2,516 — — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
May. 31, 2015 | |
Inventories | Inventories consisted of the following (in thousands): May 31, February 28, 2015 2015 Raw materials $ 4,836 $ 5,309 Work-in-process 371 438 Finished goods 1,726 1,751 6,933 7,498 Reserves for obsolescence (577 ) (493 ) $ 6,356 $ 7,005 |
Costs and Estimated Earnings 21
Costs and Estimated Earnings Related to Billings on Uncompleted Contracts (Tables) | 3 Months Ended |
May. 31, 2015 | |
Information Relative to Contracts in Progress | Information relative to contracts in progress consisted of the following: May 31, February 28, 2015 2015 Costs incurred to date on uncompleted contracts $ 217 $ — Estimated earnings recognized to date on these contracts 124 — 341 — Billings to date (525 ) — Costs and estimated earnings in excess of billings, net $ (184 ) $ — Costs and estimated earnings in excess of billings $ — $ — Billings in excess of costs and estimated earnings 184 — $ (184 ) $ — |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
May. 31, 2015 | |
Cost and Accumulated Amortization of Intangible Assets | The cost and accumulated amortization of intangible assets was as follows (in thousands). May 31, 2015 February 28, 2015 Cost Accumulated Amortization Cost Accumulated Customer lists $ 2,863 $ 2,333 $ 2,863 $ 2,304 $ 2,863 $ 2,333 $ 2,863 $ 2,304 |
Long-Term Debt and Other Obli23
Long-Term Debt and Other Obligations (Tables) | 3 Months Ended |
May. 31, 2015 | |
Long- Term debt and Finance Lease Obligations | Long-term debt consisted of the following (in thousands): May 31, February 28, 2015 2015 Mortgage payable to bank; interest rate at Community Bank base rate plus 0.5% (3.75% as of May 31, 2015); monthly principal and interest payments of $5 thousand payable through October 2021; collateralized by land and building of Teltron Technologies, Inc. 221 233 221 233 Less current maturities (51 ) (50 ) $ 170 $ 183 |
Supplemental Cash Flow Inform24
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
May. 31, 2015 | |
Supplemental Cash Flow Information | Supplemental cash flow information is as follows (in thousands): Three Months 2015 2014 Cash paid for: Interest $ 22 $ 9 Income taxes, net of refunds $ (609 ) $ 13 |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 3 Months Ended |
May. 31, 2015 | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share for the three-month periods ended May 31, 2015 and 2014 (in thousands, except per share data): Net Weighted Earnings (Loss) Share Three months ended May 31, 2015 Basic-continuing operations $ (1,370 ) 5,957 $ (0.23 ) Basic-discontinued operations (199 ) 5,957 (0.03 ) Effect of dilution: Diluted-continuing operations Diluted-discontinued operations — — — Diluted $ (1,569 ) 5,957 $ (0.26 ) Three months ended May 31, 2014 Basic-continuing operations $ 139 6,850 $ 0.02 Basic-discontinued operations — — Effect of dilution: Diluted-continuing operations — Diluted-discontinued operations — 25 — Diluted $ 139 6,875 $ 0.02 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
May. 31, 2015 | |
Summarized Financial Information for Discontinued Operations | The summarized financial information for discontinued operations for the three months ended May 31, 2015, is as follows: Three months ending Net sales 1,095 Cost of goods sold 1,084 Gross profit 11 Operating expenses Selling and delivery — General and administrative 239 Total operating expenses 239 Operating profit from discontinued operations (228 ) Other income (expense) 29 Interest expense — Other, net 29 Income from discontinued operations before income taxes (199 ) Income tax expense — Income from discontinued operations (199 ) |
Banking and Liquidity - Additio
Banking and Liquidity - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | Feb. 28, 2015 | |
Line of Credit Facility [Line Items] | |||
Working capital | $ 10,700 | $ 11,600 | |
Liquid assets | 2,700 | $ 2,600 | |
Net cash used in operating activities | $ 624 | $ (540) |
Financial Assets and Liabilitie
Financial Assets and Liabilities Measured on a Recurring Basis (Detail) - Recurring Basis - USD ($) $ in Thousands | May. 31, 2015 | Feb. 28, 2015 |
Current trading investments | ||
Total value of investments | $ 6,054 | $ 6,524 |
Current Liabilities: | ||
Margin balance | (3,983) | (4,008) |
Total value of liabilities | (3,983) | (4,008) |
Total | 2,071 | 2,516 |
Stocks, options, and ETF (long) | ||
Current trading investments | ||
Current trading investments | 5,844 | 6,308 |
Stocks, options, and ETF (short) | ||
Current trading investments | ||
Current trading investments | (4) | (10) |
Mutual Funds | ||
Current trading investments | ||
Current trading investments | 214 | 226 |
Level 1 Assets and Liabilities | ||
Current trading investments | ||
Total value of investments | 6,054 | 6,524 |
Current Liabilities: | ||
Margin balance | (3,983) | (4,008) |
Total value of liabilities | (3,983) | (4,008) |
Total | 2,071 | 2,516 |
Level 1 Assets and Liabilities | Stocks, options, and ETF (long) | ||
Current trading investments | ||
Current trading investments | 5,844 | 6,308 |
Level 1 Assets and Liabilities | Stocks, options, and ETF (short) | ||
Current trading investments | ||
Current trading investments | (4) | (10) |
Level 1 Assets and Liabilities | Mutual Funds | ||
Current trading investments | ||
Current trading investments | $ 214 | $ 226 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | May. 31, 2015 | Feb. 28, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 4,836 | $ 5,309 |
Work-in-process | 371 | 438 |
Finished goods | 1,726 | 1,751 |
Inventory, Gross | 6,933 | 7,498 |
Reserves for obsolescence | (577) | (493) |
Inventory, Net | $ 6,356 | $ 7,005 |
Information Relative to Contrac
Information Relative to Contracts in Progress (Detail) - USD ($) $ in Thousands | May. 31, 2015 | Feb. 28, 2015 |
Contracts [Line Items] | ||
Costs incurred to date on uncompleted contracts | $ 217 | |
Estimated earnings recognized to date on these contracts | 124 | |
Costs incurred and Estimated earnings of uncompleted contracts | 341 | |
Billings to date | (525) | |
Costs and estimated earnings in excess of billings, net | (184) | |
Costs and estimated earnings in excess of billings | 0 | $ 0 |
Billings in excess of costs and estimated earnings | 184 | |
Costs and estimated earnings in excess of billings, net | $ (184) |
Costs and Estimated Earnings 31
Costs and Estimated Earnings Related to Billings on Uncompleted Contracts - Additional Information (Detail) - May. 31, 2015 - USD ($) | Total |
Uncompleted Contracts [Line Items] | |
Production costs that exceeded the aggregate estimated cost | $ 0 |
Outstanding claims relating to contract values | 0 |
Progress payments that had been netted against inventory | $ 0 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, amortization expense | $ 29 | $ 31 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, expected life | 5 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, expected life | 15 years |
Cost and Accumulated Amortizati
Cost and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | May. 31, 2015 | Feb. 28, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 2,863 | $ 2,863 |
Accumulated Amortization | 2,333 | 2,304 |
Customer Lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,863 | 2,863 |
Accumulated Amortization | $ 2,333 | $ 2,304 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | May. 31, 2015 | Feb. 28, 2015 |
Debt Instrument [Line Items] | ||
Notes and Mortgage Payable to bank | $ 221 | $ 233 |
Less current maturities | (51) | (50) |
Long-term debt, less current maturities | 170 | 183 |
Mortgage payable to bank | ||
Debt Instrument [Line Items] | ||
Notes and Mortgage Payable to bank | $ 221 | $ 233 |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) - May. 31, 2015 - Mortgage payable to bank - USD ($) $ in Thousands | Total |
Debt Instrument [Line Items] | |
Debt Instrument, interest rate terms | Mortgage payable to bank; interest rate at Community Bank base rate plus 0.5% (3.75% as of May 31, 2015); monthly principal and interest payments of $5 thousand payable through October 2021; collateralized by land and building of Teltron Technologies, Inc. |
Combined rate | 3.75% |
Mortgage Payable to bank monthly principal and interest payments payable | $ 5 |
Debt Instrument Maturity period | 2021-10 |
Base Rate | |
Debt Instrument [Line Items] | |
Interest rate | 0.50% |
Long Term Debt and Other Obliga
Long Term Debt and Other Obligations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May. 31, 2015 | Feb. 28, 2015 | |
Debt and Financial Instruments [Line Items] | ||
Outstanding margin account borrowing | $ 4,000 | $ 4,000 |
Gross investments | 6,100 | 6,500 |
Trading investments, at fair value | $ 2,071 | $ 2,516 |
Margin interest rate | 2.00% | |
Short Term Loan from Chief Financial Officer | ||
Debt and Financial Instruments [Line Items] | ||
Short term borrowing | $ 80 | |
Debt instrument interest rate | 0.00% |
Supplemental Cash Flow Inform37
Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Cash paid for: | ||
Interest | $ 22 | $ 9 |
Income taxes, net of refunds | $ (609) | $ 13 |
Reconciliation of Basic Earning
Reconciliation of Basic Earnings (loss) Per Share to Diluted Earnings (loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net Income (Loss), Basic-continuing operations | $ (1,370) | $ 139 |
Net Income (Loss), Basic-discontinued operations | (199) | |
Net Income (Loss), Diluted | $ (1,569) | $ 139 |
Weighted Average Common Shares Outstanding, Basic | 5,957 | 6,850 |
Weighted Average Common Shares Outstanding, Diluted earnings per share | 5,957 | 6,875 |
Earnings (Loss) Per Share, Basic-continuing operations | $ (0.23) | $ 0.02 |
Earnings (Loss) Per Share, Basic-discontinued operations | (0.03) | 0 |
Earnings (Loss) Per Share, Effect of dilution: Diluted-discontinued operations | 0 | 0 |
Earnings (Loss) Per Share, Diluted | $ (0.26) | $ 0.02 |
Continuing Operations | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net Income (Loss), Effect of dilution: | $ 0 | |
Weighted Average Common Shares Outstanding, Basic | 5,957 | 6,850 |
Discontinued Operations | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net Income (Loss), Effect of dilution: | $ 0 | $ 0 |
Weighted Average Common Shares Outstanding, Basic | 5,957 | |
Weighted Average Common Shares Outstanding, Effect of dilution | 25 |
Shareholder's Equity - Addition
Shareholder's Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
May. 31, 2015 | May. 31, 2014 | Jan. 20, 2014 | |
Stock Based Compensation [Line Items] | |||
Total unrecognized compensation costs related to stock options and shares of restricted stock granted | $ 7,900 | ||
Unrecognized compensation cost is expected to be recognized over a period | 1 year | ||
Stock options granted | 0 | 0 | |
Authorized stock repurchase | 2,632,500 | ||
Additional authorized stock repurchase | 1,500,000 | ||
Number of shares repurchased | 68,531 | 524,694 | |
Shares repurchased, average share price | $ 1.63 | $ 3.71 | |
Remaining repurchase of shares authorized | 505,519 | ||
General and Administrative Expense | |||
Stock Based Compensation [Line Items] | |||
Share-based compensation | $ 3,200 | $ 2,200 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
May. 31, 2015 | May. 31, 2014 | |
Income Taxes [Line Items] | ||
Effective Tax Rate | 0.00% | 14.70% |
Net income (loss) | $ (1,569) | $ 139 |
Tax benefit | 600 | |
Income tax (benefit) expense | $ 0 | $ 24 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) | Mar. 26, 2014 | May. 31, 2015 | May. 31, 2014 | Feb. 28, 2014 |
Schedule Of Sale And Divestiture Of Business [Line Items] | ||||
Divestiture of business | $ 100,000 | |||
Amount of net sales from discontinued operations | $ 1,095,000 | |||
Lexel Imaging, Inc. | ||||
Schedule Of Sale And Divestiture Of Business [Line Items] | ||||
Divestiture of business | $ 3,900,000 | |||
Value of inventories guaranteed to purchase | $ 2,900,000 | |||
Purchase commitment period | 5 years | |||
Gain (loss) on sale of business | $ (4,400,000) | |||
Collection period for receivable from divestiture of business | 180 days | |||
Amount of cash receivable from divestiture of business | $ 1,000,000 | |||
Amount of net sales from discontinued operations | 7,600,000 | |||
Amount of pre-tax net income from discontinued operations | $ (800,000) |
Summarized Financial Informatio
Summarized Financial Information For Discontinued Operations (Detail) $ in Thousands | 3 Months Ended |
May. 31, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net sales | $ 1,095 |
Cost of goods sold | 1,084 |
Gross profit (loss) | 11 |
Operating expenses | |
Selling and delivery | 0 |
General and administrative | 239 |
Total operating expenses | 239 |
Operating profit from discontinued operations | (228) |
Other income (expense) | 29 |
Interest expense | 0 |
Other, net | 29 |
Income from discontinued operations before income taxes | (199) |
Income tax expense | 0 |
Income from discontinued operations | $ (199) |